Company: DKI
Filing Date: 2025-08-11
Form Type: 424B4
Source: 0001641172-25-022921
Chunk: 131

Company: DarkIris Inc.
Filing Date: 2025-08-11
Form: 424B4
Chunk 131
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 a more immersive experience or faster progress can opt to purchase premium content,
such as exclusive skins, advanced features, or other value-added services. In-game microtransactions, offering affordable virtual items
and currencies, also provide a steady and sustainable cash flow.

Virtual item sales are structured
with tiered pricing to accommodate players with different spending capacities. Additionally, promotional events such as holiday discounts
and time-limited offers incentivize players to make purchases, boosting revenue and engagement. For games licensed to third-party operators,
we secure upfront licensing fees and share ongoing revenue based on pre-agreed terms. This ensures mutual benefit while maintaining profitability.
Revenue is further supplemented through in-game advertising and collaborative promotional campaigns with external brands, where personalized
ad content is delivered using big data and advanced user profiling techniques.

Pricing decisions are guided
by market demand, competitive dynamics, and user feedback. Thorough market research and analysis of competitor pricing ensure that our
games remain competitively positioned. Regular adjustments, based on evolving trends and player suggestions, help maintain user satisfaction.
Additionally, cost considerations, including expenses related to development, server maintenance, marketing, and platform fees from distributors
like the Apple App Store and Google Play, are factored into our pricing strategy to maintain profitability.

Research and Development

As at the date of this
prospectus, our research and development team consists of 8 employees and our game design, optimization and production team consists
of 4 members. Our self-developed games are developed by the said teams, with the help of externally engaged game programmers. Our
game design, optimization and production team is responsible for initial game design, optimization and final fine-tune as led
by our experienced operations director, product manager and arts director, each contributing their insights ranging from market
needs and industry competition to graphics and character design. The intellectual property rights concerned would be owned by us.
Our team targets to continue to develop more game engines and analytical software in order to provide uniqueness gameplay
experiences and enjoyment and effectively enhance our monetization strategy.

Seasonality

Our business historically
has not been subject to seasonal fluctuations.

Insurance

From
October 2024 to March 2025, we did not maintain employee’s compensation insurance to safeguard against risks and unexpected events
for our office equipment and our employees in Hong Kong, which is required by the law of Hong Kong. Since April 2025 to date,
we have taken out employees’ compensation insurance in Hong Kong, respectively. The above insurance policies are reviewed annually
to ensure that our