Company: DKI
Filing Date: 2025-06-13
Form Type: F-1
Source: 0001641172-25-015001
Chunk: 121

Company: DarkIris Inc.
Filing Date: 2025-06-13
Form: F-1
Chunk 121
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 to operate Floating Sky and had it launched in 2024 on two platforms, including My1737 and Let’s Play Art Planet, in Hong Kong, Macau and Taiwan. For the six months ended March 31, 2025, Floating Sky generated $1,200,652 of revenue from in-game purchase and had total gameplayers of 138,509 and MDU of 23,084. For the year ended September 30, 2024, Floating Sky generated $1,355,733 of revenue from in-game purchase and had total gameplayers of 299,218 and MDU of 27,202.

In our licensing agreement with the game developer of Floating Sky, the game developer grants us exclusive rights to jointly distribute, operate and promote Floating Sky on the IOS and Android systems in the agreed areas with third parties. The game developer also grants authorized third-party distributors appointed by us the rights to provide game services for Floating Sky in the agreed areas. During the term, the game developer is responsible to make the local language version of Floating Sky, including updates, patches and upgrades for such version. We are responsible for setting up game servers, marketing, in-game purchases, and development of online payment channels within the specified region and bear the relevant costs. We pay an agency and copyright fee for the licensing, and share the in-game purchase earnings with the game developer on a monthly basis as per our agreed ratio. The terms of the agreement lasts for three years.

In-Game Purchase

All of our self-developed
or licensed games adopt the free-to-play model. Players looking to enrich their gaming experience have the option to acquire credits
through a variety of payment gateways, exchanging them for our in-game virtual items upon purchase. These virtual items are non-physical
items serve to elevate gaming experiences by empowering players to fortify their teams, accelerate progress, and personalize their in-game
personas. Such in-game purchase cannot be exchanged for real currency and have no monetary value outside our respective games.

We maintain a balanced gaming
pool by ensuring that both paying and non-paying players can enjoy our games without feeling discouraged. This approach preserves a fair
and engaging environment, fostering an inclusive and rewarding experience for all players.

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Virtual items available for
purchase are classified as either Consumable Virtual Items - items that provide immediate benefits or perform in-game actions upon use
(e.g., temporary power-ups or weapons); or Durable Virtual Items - items that offer long-term enhancements to a player’s character