Company: DKI
Filing Date: 2025-07-29
Form Type: F-1/A
Source: 0001641172-25-021310
Chunk: 222

Company: DarkIris Inc.
Filing Date: 2025-07-29
Form: F-1/A
Chunk 222
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 of the future realization of deferred tax assets. On the basis of this evaluation, valuation allowance of $0.8 and $1.0 million was recorded against the gross deferred tax asset balance as of March 31, 2025 and September 30, 2024, 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       
 March 31,   
 2025        
 (unaudited) |          |   |     | As of         
 September 30, 
 2024          |         |
|:---------------------------------------------------|:----|:------------|---------:|:--|:----|:--------------|--------:|
| Beginning balance                                  |     | $           |  964,969 |   |     | $             | 826,563 |
| Change of valuation allowance                      |     |             | (155,152 | ) |     |               | 102,878 |
| Effect of foreign currency translation adjustments |     |             |  (31,891 | ) |     |               |  35,528 |
| Ending balance                                     |     | $           |  777,926 |   |     | $             | 964,969 |

Uncertain tax positions

The PRC tax authorities conduct periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. In general, the PRC tax authorities have up to five years to conduct examinations of the tax filings of the Company’s PRC entities. It is therefore uncertain as to whether the PRC tax authorities may take different views about the Company’s tax filings, which may lead to additional tax liabilities.

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of March 31, 2025 and September 30, 2024, the Company did not have any significant unrecognized uncertain tax positions.

| F-18 |

Note 9. Equity

Ordinary Shares

On May 31, 2024, the authorized share capital of the Company is $50,000 divided into 50,000 ordinary shares of par value $1 each.

On May 31, 2024, the Company issued 50,000