Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 31

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 31
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 2023, we generated approximately $5.68
million and $3.94 million from games licensed from third parties, which represented approximately 73% and 99% of our total revenue.
This highlights the significant role these licensed games play in our financial performance and emphasizes the need of managing the
risks associated with our heavy reliance on them.

Our game licensing
agreements generally have a term of three years after their commercial launch. However,
our licensing partners can terminate our game licensing agreements with us prior to their expiration by providing a 30 days written notice
or refuse to renew the license agreements. The licensing partners can terminate our game licensing agreements if we violated the licensing
agreements or are adjudged bankrupt or insolvent. Any loss or deterioration of our relationship with any of our licensing partners may
result in a loss of revenues and materially and adversely affect our business and results of operations.

Our business is subject to risks related to third-party publishing channels and payment processing channels.

We make available a variety of mobile payment solutions to our gameplayers, enabling them to easily make in-game purchases of virtual item through our third-party publishing channels such as Apple App Store, Google Play Store, My1737 and Let’s Play Art Planet, and our third-party payment processing channels such as Mycard, PayPal, WeChat, and Alipay. Our reliance on publishing and payment channel partners may subject us to payment collection issues beyond our control, or even fraud and other illegal activities in connection with these payment methods. Interruption in the ability of gameplayers to use these publishing and payment channels could adversely affect our payment collection, and in turn, our revenue.

Our publishing and payment channel partners are entitled to a prescribed percentage of the gross revenue charged to gameplayers. If our publishing and payment channel partners fail to remit to us the proceeds collected from gameplayers in a timely fashion or at all, or if our publishing and payment channel partners become unwilling or unable to provide payment services or if their service quality deteriorates, our business may be disrupted. Our publishing and payment channel partners are also subject to evolving rules and regulations, regulatory or otherwise, governing electronic funds transfers, which could become difficult or impossible for them to comply with. As a result, they may be subject to fines or higher transaction fees or lose their ability to accept credit and debit card payments when processing electronic funds transfers or facilitating other types of online payments from gameplayers, all of which may adversely affect our payment collection and monetization, and, in turn, our results of operations