Company: DKI
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001641172-25-012167
Chunk: 111

Company: DarkIris Inc.
Filing Date: 2025-05-23
Form: DRS/A
Chunk 111
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or licensed games adopt the free-to-play model. Players looking to enrich their gaming experience have the option to acquire credits
through a variety of payment gateways, exchanging them for our in-game virtual items upon purchase. These virtual items are non-physical
items serve to elevate gaming experiences by empowering players to fortify their teams, accelerate progress, and personalize their in-game
personas. Such in-game purchase cannot be exchanged for real currency and have no monetary value outside our respective games.

We maintain a balanced gaming
pool by ensuring that both paying and non-paying players can enjoy our games without feeling discouraged. This approach preserves a fair
and engaging environment, fostering an inclusive and rewarding experience for all players.

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Virtual items available for
purchase are classified as either Consumable Virtual Items - items that provide immediate benefits or perform in-game actions upon use
(e.g., temporary power-ups or weapons); or Durable Virtual Items - items that offer long-term enhancements to a player’s character
or inventory (e.g., premium outfits or permanent upgrades).

The monetary value of the
virtual currencies sold and converted to the in-game tokens is shared between the Company and the game developer, if the game is licensed,
which is pre-determined in the individual revenue sharing arrangements. The Company’s pre-determined percentage share of such sales
varies by contracts and is generally between 40% and 85% of the total collected by us. The Company collects the payments made by the game
players via the third-party distribution platforms, such as Apple App Store and Google Play Store, and remits the agreed sharing (net
of tax and surcharges) by the Company to the game developer according to the applicable revenue sharing arrangement. For the years ended
September 30, 2023 and 2024, we recorded revenue of approximately $7,920,461 and $3,951,074, representing 100% of our total revenue,
respectively, from in-game purchase.

Our Competitive Strengths

Our main competitive strengths
are as follows:

Strong Production and Content Creative Capabilities with an International Perspective

We pride ourselves on our
strong production and development capabilities, led by our founder and Chief Executive Officer, Hong Zhifang. With over twenty years
of experience in the internet industry, Mr. Hong excels in customizing products and formulating market strategies, ensuring precise alignment
with user needs from design to promotion, thereby driving continuous business growth. His foresight and profound understanding of market
demands have ste