Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 93

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 93
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 Other income increased by $38,711, or 2,369.1%, to other
income of $37,077 in FY2024 from other expenses of $1,634 in FY2023. The increase was mainly attributable to singular instance of
marketing and promotion services provided to a customer.

Income tax expenses

In FY2024 and FY2023, our income tax expense
was $98,158 and nil, respectively. The income tax expenses were as a result of taxable income from operations.

Net income

As a result of the foregoing, net income was
approximately $1.1 million in FY2024, an increase of approximately $2.4 million from net loss of approximately $1.3 million in FY2023.

Liquidity and Capital Resources

As of September 30, 2024, the Company had
cash of approximately $0.3 million.

In assessing liquidity, management monitors
and analyzes our cash on-hand, ability to generate sufficient revenue sources in the future, and operating and capital expenditure commitments.

As of September 30, 2024, the Company had
working capital of approximately $0.9 million. The Company’s working capital requirements are influenced by the level of operations,
revenue generated from mobile digital games, costs and expenses controlled, encashment of accounts receivable.

The
Company intends to finance future working capital requirements and capital expenditures from
cash generated from operating activities and funds raised from financing activities. The Company plans to utilize cash generated from operations to continue investing in acquiring new games and to increase
our game portfolio.
The Company may, however, require additional cash due to changing business conditions or
other future developments, including any investments or acquisitions that the Company may
decide to pursue. With the financial support from shareholders, the Company believes that
the current cash together with cash generated from operating activities and financing activities
will be sufficient to meet the present anticipated working capital requirements and capital
expenditures. If existing cash is insufficient to meet requirements, the Company may seek
to issue debt or equity securities or obtain additional credit facilities. Financing may
be unavailable in the amounts the Company’s need or on terms acceptable to the Company,
if at all. Issuance of additional equity securities, including convertible debt securities,
would dilute earnings per share. The incurrence of debt would divert cash for working capital
and capital expenditures to service debt obligations and could result in operating and financial
covenants that restrict operations and ability to pay dividends to