Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 94

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 94
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decrease) in cash                     |     |                                             | 232,871 |   |     |   |   (304,025 | ) |
| Cash, beginning of year                             |     |                                             |  80,864 |   |     |   |    384,889 |   |
| Cash, end of year                                   |     | $                                           | 313,735 |   |     | $ |     80,864 |   |

Operating activities

Net cash provided by operating activities
was $53,667 in FY2024, which mainly consisted of (i) net income of approximately $1.1 million; and (ii) an increase of contract liabilities
of approximately $0.38 million. The increase in cash in operating activities was partially offset by (i) an increase in accounts receivable
of approximately $0.9 million due to revenue generated from game players; and (ii) an increase in prepaid expenses of approximately $0.33
million due to payment of security deposit to game developer for developing new games.

Net cash used in operating activities was
approximately $1.3 million in FY2023, which mainly consisted of (i) net loss of approximately $1.3 million, and (ii) an increase of approximately
$0.3 million in accounts receivable due to revenue generated from game players. The decrease in cash in operating activities was partially
offset by an increase of approximately $0.16 million in accounts payable due to an increase in a game developer supplier supplying new
games.

| 53 |

Investing activity

Net cash used in investing activity was $12,148
in FY2024, which mainly consisted of purchase of plant and equipment.

Net cash used in investing activity was $2,766
in FY2023, which mainly consisted of purchases of plant and equipment.

Financing activities

Net cash provided by financing activities
was approximately $0.2 million in FY2024, which mainly consisted of (i) proceeds of approximately $2.7 million from capital contribution;
and (ii) advances of approximately $1.5 million from shareholder. The cash provided by financing was partially offset by repayments of
approximately $4.0 million to shareholder.

Net cash provided by financing activities
was $1.0 million in FY2023, which mainly consisted of (i) proceeds of approximately $0.4 million from capital contribution; and (ii)
advances of approximately $5.6 million from shareholders. The cash