Company: DKI
Filing Date: 2025-08-11
Form Type: 424B4
Source: 0001641172-25-022921
Chunk: 248

Company: DarkIris Inc.
Filing Date: 2025-08-11
Form: 424B4
Chunk 248
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 per share or 17,030 Class B ordinary shares of par value $0.0001 each with 20 votes per share.

On June 10, 2025, the Company allotted and issued an aggregate of 10,517,430 Class A ordinary shares and 5,432,570 Class B ordinary shares of the Company, par value of $0.0001 each respectively, and to all existing shareholders on a pro-rata basis (Issuance). Immediately after the completion of the Issuance, Class A and Class B ordinary shares were 10,550,400 and 5,449,600, respectively. The aforementioned Issuance were considered nominal issuance, and were recapitalizations in substance. In applying the requirements of FASB ASC Topic 260, nominal issuances of ordinary shares should be reflected in a manner similar to a share split or share dividend for which retroactive treatment is required by FASB ASC paragraph 260-10-55-12.

Statutory reserve

The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with PRC GAAP.

Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. As of September 30, 2024 and 2023, the balance of the required statutory reserves was nil and nil, respectively.

Note 9. Restricted assets

The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by the PRC subsidiaries only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the accompanying combined financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the PRC entities.

The PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, the PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare