Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 196

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 196
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 define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

| ● | Level                                                                                                                                    
 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.              |
| ● | Level                                                                                                                                    
 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that        
 are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. |
| ● | Level                                                                                                                                    
 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs reflect the reporting      
 entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the            
 best available information.                                                                                                              |

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The carrying amounts reported in the balance sheets of cash, accounts receivable, prepayment for game development, deferred initial public offering costs, prepaid expenses and other current assets, accounts payable, contract liabilities, taxes payable, due to a related party, accrued expenses, approximate their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of September 30, 2024 and 2023.

Accounts payable

Accounts payable represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and are paid on normal commercial terms.

Related party transactions

A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the Company’s securities (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered