Company: DKI
Filing Date: 2025-08-11
Form Type: 424B4
Source: 0001641172-25-022921
Chunk: 249

Company: DarkIris Inc.
Filing Date: 2025-08-11
Form: 424B4
Chunk 249
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 fund at its discretion. The PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange.

As a result of the foregoing restrictions, the PRC entities are restricted in their ability to transfer their assets to the Company. Foreign exchange and other regulation in the PRC may further restrict the PRC entities from transferring funds to the Company in the form of dividends, loans, and advances. As of September 30, 2024 and 2023, amounts restricted are the paid-in-capital and statutory reserve of the PRC entities, which amounted to $0.4 million and $2.4 million, respectively.

| F-38 |

Note 10. Concentration of major customers and suppliers

No single customer represented 10% or more of revenue for the years ended September 30, 2024 and 2023.

As of September 30, 2024, two receivables accounted for 61%, and 29% of the Company’s accounts receivable balance, respectively. As of September 30, 2023, two receivables accounted for 79% and 17% of the Company’s accounts receivable balance, respectively.

For the year ended September 30, 2024, four major suppliers accounted for approximately 48%, 12%, 12%, and 12% of the cost of revenues, respectively. For the year ended September 30, 2023, three major suppliers accounted for approximately 50%, 19%, and 13% of the cost of revenues, respectively.

As of September 30, 2024, three suppliers accounted for 44%, 15%, and 10% accounts payable balance, respectively. As of September 30, 2023, one supplier accounted for 81% accounts payable balance.

Note 11. Related party transactions

The relationship and the nature of related party transactions are summarized as follow:

| Name                                             |     | Relationship with the Company                                       |     | Nature of transactions                                            |
| Xiamen Xiqi Network Technology Co., Ltd (“Xiqi”) |     | The shareholder owns 34% of the Company and also owns 35.4% of Xiqi |     | Providing working capital and payment of expenses