Company: DKI
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001493152-25-010539
Chunk: 95

Company: DarkIris Inc.
Filing Date: 2025-03-17
Form: DRS
Chunk 95
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 provided by financing was partially offset by repayments of approximately
$5.0 million to shareholders.

Contractual Obligations and Commitments

As of September 30, 2024, the Company does
not have any contractual obligations and commitments.

Trend Information

There are no known trends or uncertainties
that have had or are reasonably likely to have a material impact on our cash flows, liquidity, capital resources, cash requirements,
financial position, or results of operations. During FY2024 and FY2023, inflation did not materially affect our business or the results
of our operations.

Critical Accounting Policies and Estimates

Revenue recognition

The Company adopted ASC Topic 606 Revenue
from Contracts with Customers (“ASC 606”) on April 1, 2019. Accordingly, the combined financial statements for the years
ended September 30, 2024, and 2023 are presented under ASC 606. Under ASC 606, revenue is recognized when control of promised goods or
services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in
exchange for those goods or services. To determine revenue recognition for contracts with customers, the Company performs the following
five steps : (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract,
(iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future
reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize
revenue when (or as) we satisfy the performance obligation. VAT that the Company collects concurrent with revenue-producing activities
is excluded from revenue.

The Company follows the requirements
of Topic 606-10-55-36 through -40, Revenue from Contracts with Customers, Principal Agent Considerations, in determining the gross
versus net revenue recognition for performance obligation(s) in the contract with a customer. Revenue recorded with the Company acting in
the capacity of a principal is reported on a gross basis equal to the full amount of consideration to which we expect in
exchange for the good or service transferred. Revenue recorded with the Company acting in the capacity of an agent is reported on a net
basis, exclusive of any consideration provided to the principal party in the transaction.

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The Company principal business is the development,
publishing and operating mobile digital games via various third-party digital storefronts. Revenue is primarily derived from