Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 89

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 89
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824 | ) |     | $        |  2,354,629 |   |     |     |    187.2 | %  |

Revenue

Revenue increased by $3.97 million, or 100.5%,
to $7.92 million for the financial year ended September 30, 2024 (“FY2024”) from $3.95 million for the financial year ended
September 30, 2023 (“FY2023). The increase was mainly attributable to revenue contribution of $4.9 million from six games launched
in FY2024. The increase was partially offset by a decrease in contribution of $0.85 million of one game. In FY2024, the Company engaged
with two new third-party digital platforms. These third-party digital platforms assisted the Company in promoting the games, encouraging
gamers to make in-game purchases, therefore, contributing to the increase in revenues by approximately $4.9 million.

| 50 |

Cost of revenue

Cost of revenue increased by approximately
$3.4 million, or 216.7%, to approximately $4.9 million in FY2024 from approximately $1.6 million in FY2023.

The following table sets forth the breakdown
of cost of revenues for FY2024 and FY2023, respectively:

|                                    |     | For           
 the Financial 
 Years         
 Ended         
 September     
 30,           |      2024 |     |   |      2023 |     | Variance |    Amount |   |     |     |     % |    |
|:-----------------------------------|:----|:--------------|----------:|:----|:--|----------:|:----|:---------|----------:|:--|:----|:----|------:|:---|
| Platform                           
 handling fees                      |     | $             | 3,517,961 |     | $ |   771,532 |     | $        | 2,746,429 |   |     |     | 356.0 | %  |
| Revenue                            
 sharing with game developers       |     |               | 1,267,754 |     |   |   635,316 |     |          |   632,438 |   |     |     |  99.5 | %  |
| Cloud                              
 server costs                       |     |               |   126,296 |     |   |   144,415 |     |          |