Company: DKI
Filing Date: 2025-07-29
Form Type: F-1/A
Source: 0001641172-25-021310
Chunk: 86

Company: DarkIris Inc.
Filing Date: 2025-07-29
Form: F-1/A
Chunk 86
---
 |     | $             |     80,864 |   |
| Total current assets                            |     | $             | 2,213,825 |     | $             |    555,950 |   |
| Total non-current assets                        |     | $             |    16,651 |     | $             |     12,261 |   |
| Total assets                                    |     | $             | 2,230,476 |     | $             |    568,211 |   |
| Total current liabilities and total liabilities |     | $             | 1,295,482 |     | $             |  3,421,279 |   |
| Total shareholders’ equity (deficit)            |     | $             |   934,994 |     | $             | (2,853,068 | ) |
| Total liabilities and shareholders’ equity      |     | $             | 2,230,476 |     | $             |    568,211 |   |

| 44 |

<div align='center'>MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS</div>

The following discussion and analysis of our company’s financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors.

Key Operating Metrics

We manage our business by tracking certain
performance metrics, including the number of active and paying gameplayers of our games using a combination of internal and third-party
analytics tools, including such tools provided by Apple and Google. These key metrics are influenced by a variety of factors that may cause
fluctuations on a quarterly basis, such as policies and restrictions imposed by platform providers, seasonality, user connectivity, conversion
of users into paying users, and the addition of new content or storylines to certain games. In some cases, our operating metrics may not
directly correlate with our revenue trends. Future growth in our player base will depend on our ability to retain existing players, attract
new players, acquire or launch new games and features, and expand into new markets and distribution platforms.

The following operating metrics are the key performance indicators we use to evaluate our business. The primary drivers of changes in these metrics are listed below in order of importance:

For