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

Company: DarkIris Inc.
Filing Date: 2025-06-13
Form: F-1
Chunk 25
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 can be enjoyed by non-paying gameplayers. To stimulate in-game spending, we need to constantly launch marketing and promotional activities to drive gameplayer interest. We must also provide easy, fast and safe payment solutions to our gameplayers to facilitate in-game purchasing so they are not discouraged or inconvenienced by online payment processing procedures. If we fail to effectively monetize our gameplayers, our business, financial condition and results of operations may be materially and adversely affected.

We have incurred, and may in the future continue to incur, net losses.

We did not incur net loss and recorded a net income of approximately $0.91 million and $0.70 million for the six months ended March 31, 2025 and 2024, respectively, and approximately $1.1 million for the fiscal year ended September 30, 2024. However, we incurred net loss of approximately $1.3 million for the fiscal year ended September 30, 2023. We cannot assure you that we will be able to generate net profits or positive operating cash flows in the future. Our ability to achieve and maintain profitability depends in large part on our ability to expand our user base, improve monetization, and manage our costs and expenses. Our profitability is affected by various factors beyond our control, such as the regulatory environment, the macroeconomic condition, and competitive dynamics in the industry. Accordingly, you should not rely on our financial results of any prior period as an indication of our future performance.

We historically derived a substantial percentage of our revenue from a small number of popular games.

We have historically derived a significant percentage of our gross revenue from a small number of popular games. Our top three games, including our self-developed game, “Record of the Divine Serpent in the Ninth Heaven”, and two licensed games, “The Great Story of Wei, Shu, and Wu” and “Myth of the Floating Sky” contributed approximately 62% and 53% of our total gross revenue for the fiscal years ended September 30, 2024 and 2023, respectively, and contributed approximately 48% and 78% of our total gross revenue for the six months ended March 31, 2025 and 2024. In addition, we also highly rely on Apple App Store, Google Play Store, My1737 and Let’s Play Art Planet to publish our games. Over 85% of our revenues are generated from these platforms after the gameplayers make in-game purchase. There is no guarantee that gameplayers