Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 116

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 116
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whom we license games from. For the fiscal years ended September 30, 2024, the four major suppliers accounted for approximately 48%,
12%, 12%, and 12% of our total cost of revenue, respectively. For the year ended September 30, 2023, three major suppliers accounted
for approximately 50%, 19%, and 13% of our cost of revenues, respectively. As of the date of this prospectus, we do not have any
long term agreements with any of such suppliers.

Supplier A, an operator
of a third-party publishing channel, is our largest supplier for the year ended September 30, 2024. We have entered into multiple
collaborative agreements with Supplier A for our games that we distribute our games through Supplier A’s gaming platforms and
providing essential resources to support game operations, encompassing version updates and technical support. Meanwhile, Supplier A
uses its platforms, channels, and user resources to drive the promotion and operation of our games. In our contractual arrangements
with Supplier A, we authorize Supplier A to distribute our games across its internet networks and market the product within the
specified regions during the agreement period. Supplier A has the liberty to utilize its websites, software, offline channels, and
other resources for the dissemination and promotion of our games. Regarding revenue sharing, Supplier A transfers the earnings from
in-game purchases to us on a monthly basis, deducting channel costs, taxes, and bad debts based on our agreed-upon ratio. The
agreements are typically set for two to three years and are subject to renewal with a notice period of thirty to sixty days before
the expiration of such agreement, unless a written request for termination has been made by either party.

Sales and Marketing

As at the date of this prospectus,
our business and marketing team consists of five employees, and we also engage external marketing service advisers to strengthen our
game promotions. The Company actively participates in marketing campaigns, exhibitions, and promotional activities to pitch and showcase
its games. Our approach spans multiple channels, including social media platforms such as Facebook, Instagram, Twitter, and TikTok. We
also collaborate with celebrities, popular live streaming platforms, and internet influencers to maximize our games’ visibility
and appeal. Additionally, we publish all mobile games on various third-party platforms to attract a wider audience and expand our market
reach.

To foster player loyalty and
engagement, we organize offline events such as exclusive benefits for long-standing players and