Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 16

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 16
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 of such funding or how funds are transferred. There can be no assurance that the PRC government
will not intervene or impose restrictions to prevent the cash maintained in Hong Kong from being transferred out or restrict the deployment
of the cash into our business or for the payment of dividends. See “Risk Factors — We may rely on dividends and other distributions on equity paid by our Hong Kong subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our Hong Kong subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.” on page 28, “Dividend Policy” and “Summary Financial Information”
for further details.

Cash is expected to be transferred through our organization in the following manner: (i) funds are transferred to Quantum from DarkIris in the form of capital contributions or shareholder loans, as the case may be; (ii) dividends or other distributions may be paid by Quantum to DarkIris; (iii) funds are transferred to Stellar from DarkIris in the form of capital contribution or shareholder loans, as the case may be; and (iv) dividends or other distributions may be paid by Stellar to DarkIris. As of the date of this prospectus, we do not maintain cash management policies or procedures dictating the amount of such funding or how funds are transferred and have not made any transfers for both directions.

In the future, cash proceeds raised from overseas financing activities, including this offering, may be transferred by us to our Hong Kong subsidiaries. In order for us to pay dividends to our shareholders, we may rely on payments or dividend distribution made by our subsidiaries, including Quantum, and Stellar. If any of our subsidiaries incur debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to us. While as advised by our Hong Kong counsel, Bird & Bird, current restrictions and limitations by the PRC government to transfer cash do not apply to Hong Kong entities, such restrictions and limitations by the PRC government could become applicable to Hong Kong and Hong Kong entities in the future, which may result in cash in the business in Hong Kong or Hong Kong entities being unavailable to fund operations or for other use outside of Hong Kong. For more detailed information, see Risks Related to Doing Business in Jurisdictions We Operate — Regulations of currency conversion may limit our ability to transfer cash between us, our subsidiaries or investors including to utilize our net revenues effectively and affect the value of your investment.

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