Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 202

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 202
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 principal if it controls a good or service before it is transferred to the customer. Key indicators that we use in evaluating these sales transactions include, but are not limited to, the following:

| ● | The                                                                                        
 underlying contract terms and conditions between the various parties to the transaction;   |
| ● | Which                                                                                      
 party is primarily responsible for fulfilling the promise to provide the specified good or 
 service; and                                                                               |
| ● | Which                                                                                      
 party has discretion in establishing the price for the specified good or service.          |

Based on evaluation of the above indicators, for sales arrangements via the Apple App Store, the Google Play Store, and other third party digital platforms, the Company has discretion in establishing the price for the specified good or service and the Company determined that the Company is the principal to the end user and thus report revenue on a gross basis and mobile platform fees charged by these digital storefronts are expensed as incurred and reported within cost of revenues.

For the years ended September 30, 2024 and 2023, there was no revenue recognized on a net basis where the Company is acting as an agent.

| F-11 |

Contract balances and remaining performance obligations

Contract balances typically arise when a difference in timing between the transfer of control to the customer and receipt of consideration occurs.

The Company’s contract liabilities include unused in-game credit of $665,471 and $328,914, and game revenue sharing of $40,330 and nil from distribution as of September 30, 2024 and 2023, respectively, consist primarily of the unsatisfied performance obligations as of the balance sheet dates. During the year ended September 30, 2024 and 2023, $328,914 and $248,311 were recognized in revenue, respectively.

Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenue and incur expenses and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment.

In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision-making Company, in deciding how to allocate resources and in assessing performance. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker