Company: DKI
Filing Date: 2025-06-13
Form Type: F-1
Source: 0001641172-25-015001
Chunk: 90

Company: DarkIris Inc.
Filing Date: 2025-06-13
Form: F-1
Chunk 90
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% to 60%. These third party digital platforms have been successful in promoting the games, attracting gamer to make in-game purchase and game revenues increased from approximately $2.9 million for the six months ended March 31, 2024 to approximately $5.2 million for the six months ended March 31, 2025, resulting in a synchronous increase in revenue sharing with these platforms.

Revenue sharing with game developers

Revenue sharing with game developers is typically ranging from 10% to 20%. Revenue sharing with game developers increased by approximately $0.2 million, or 50.1%, to approximately $0.7 million for the six months ended March 31, 2025 from approximately $0.5 million for the same period of last year. The increase was mainly attributed to the increased gamers spending which resulted in increase in game revenue, revenue sharing with game developers were correspondingly increased.

Cloud server costs

Cloud server costs decreased by $28,498, or 41.0%, to approximately $0.04 million for the six months ended March 31, 2025 from approximately $0.07 million for the same period of last year. Game revenue generated from Google and Apple digital platforms reduced which, in turn, reduced data requirements from cloud servers and the corresponding cloud server costs. Also, the decrease in cloud server costs was attributable to the provision of cloud servers by certain third party digital platforms and, as a result, the Company did not need to incur cloud server costs for certain games.

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Gross profit

Gross profit decreased by approximately $0.1 million, or 7.3%, to approximately $1.5 million for the six months ended March 31, 2025 from approximately $1.6 million for the same period of last year, while gross profit margin decreased by 26%, from 54% for the six months ended March 31, 2024 to 28% for the six months ended March 31, 2025. The decrease in gross profit margin was mainly attributable to the significant increase in platform handling fees and revenue sharing with game developers.

Selling expenses

Selling expenses primarily relate to advertising and promotional expenses. Selling expenses decreased by approximately $0.3 million, or 100%, to nil for the six months ended March 31, 2025 from approximately $0.3 million for the same period of last year. The main sources of revenue growth for the six months ended March 31, 2025 were