Company: DKI
Filing Date: 2025-06-13
Form Type: F-1
Source: 0001641172-25-015001
Chunk: 209

Company: DarkIris Inc.
Filing Date: 2025-06-13
Form: F-1
Chunk 209
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 no impairment for right-of-use lease assets as of March 31, 2025 and September 30, 2024.

Fair value measurement

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

| ● | Level                                                                                                                                    
 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.              |
| ● | Level                                                                                                                                    
 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that        
 are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. |
| ● | Level                                                                                                                                    
 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs reflect the reporting      
 entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the            
 best available information.                                                                                                              |

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The carrying amounts reported in the balance sheets of cash, accounts receivable, prepayment for game development, deferred initial public offering costs, prepaid expenses and other current assets, due from a related party, accounts payable, contract liabilities, taxes payable, due to a related party, accrued expenses, approximate their fair market value based on the short-term nature of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of March 31, 2025 and September 30, 2024.

Accounts payable

Accounts payable represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and are paid on normal commercial terms.

Related party transactions

A related party is generally