Company: DKI
Filing Date: 2025-06-13
Form Type: F-1
Source: 0001641172-25-015001
Chunk: 220

Company: DarkIris Inc.
Filing Date: 2025-06-13
Form: F-1
Chunk 220
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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 ordinary shares to shareholders at par value of $1 each.

On February 27, 2025, the Company re-designated and re-classified its authorized share capital from $50,000 divided into 50,000 ordinary shares of par value $1 each to $50,000 divided into 450,000,000 Class A Ordinary Shares of par value of $0.0001 each and 50,000,000 Class B Ordinary Shares of par value of