Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 207

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 207
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 | (18.2 | %) |
| Effective income tax rate                     |     |                               |  8.2 | %  |     |      |   0.0 | %  |

Deferred tax liabilities and assets attributable to different tax jurisdictions are not offset. Components of deferred tax assets and liabilities were as follows:

| Deferred tax assets:                      |     | As of         
 September 30, 
 2024          |          |   |     | As of         
 September 30, 
 2023          |          |   |
|:------------------------------------------|:----|:--------------|---------:|:--|:----|:--------------|---------:|:--|
| Net operating loss carryforwards          |     | $             |  964,969 |   |     | $             |  826,563 |   |
| Valuation allowance on net operating loss |     |               | (964,969 | ) |     |               | (826,563 | ) |
| Total                                     |     |               |        - |   |     |               |        - |   |

The Company’s PRC subsidiary had cumulative net operating loss of approximately $3.9 million and $3.3 million as of September 30, 2024 and 2023, respectively, which may be available for reducing future taxable income.

As of each reporting date, management considers evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. On the basis of this evaluation, valuation allowance of $1.0 million and $0.8 million was recorded against the gross deferred tax asset balance at September 30, 2024 and 2023, respectively. The amount of the deferred tax asset is considered unrealizable because it is more likely than not that the Company will not generate sufficient future taxable income to utilize this portion of the net operating loss.

Movement of valuation allowance was as follows:

|                                                    |     | As of 
 2024  | September 30, |     | As of 
 2023  | September 30, |   |
|:---------------------------------------------------|:----|:------|--------------:|:----|:------|--------------:|:--|
| Beginning of the financial year                    |     | $     |       826,563 |     | $     |       608,464 |   |
| Change of valuation allowance                      |     |       |       102,878 |     |