Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 27

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 27
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 two licensed games, “The Great Story of Wei, Shu, and Wu” and “Myth of the Floating Sky” contributed approximately 62% and 53% of our total gross revenue for the fiscal years ended September 30, 2024 and 2023, respectively. In addition, we also highly rely on Apple App Store, Google Play Store, My1737 and Let’s Play Art Planet to publish our games. Over 85% of our revenues are generated from these platforms after the gameplayers make in-game purchase. There is no guarantee that gameplayers will continue spending time, making in-game purchase, or maintaining the same spending habit in our popular games in the future. If any of those happens, our gross revenue may decrease accordingly. We expect our existing popular games to continue to contribute to a substantial portion of our gross revenue in the foreseeable future. However, our top games may have a finite life span and may fall out of favor with gameplayers. There can be no assurance that our efforts in enhancing existing popular games will sustain their current level of popularity and extend their life cycles, and any such decline may materially and adversely affect our business and results of operations.

| 13 |

We may not be able to develop successful new games.

We have made significant investments in in-house game development and have developed new successful games since 2024, including but not limited to titles such as Wei, Shu & Wu, which was launched in February 2024. Divine Serpent is still actively played by our gameplayers. Our ability to develop successful new games will largely depend on our ability to:

| ● | attract,                                                                          
 retain and motivate talented game development personnel;                          |
| ● | minimize                                                                          
 launch delays and cost overruns in the development of new games;                  |
| ● | effectively                                                                       
 monetize games without degrading the gameplay experience for our gameplayers; and |
| ● | effectively                                                                       
 execute our game development plans.                                               |

In-house development requires substantial initial investments prior to the launch of a game. Depending on the genre and complexity, the initial development of a new game can take up to several years. It is often difficult to predict how successful a game will become before significant efforts and investments are made, particularly with respect to innovative titles without a built-in fan base. If any new game developed by us does not become popular or does not generate as much revenue as anticipated, we may not be able to recoup our initial investments, and our business, results of operations and prospects