DarkIris (DKI) Registration Filing summary

Company overview and business model

• Operates as a holding company incorporated in the Cayman Islands, with primary operations in Hong Kong through subsidiaries Quantum Arts and Stellar Wisdom.

• Engaged in development, publishing, and operation of mobile digital games, leveraging third-party digital storefronts and global distribution.

• Revenue model is based on in-game purchases, with a freemium approach and monetization through virtual items.

• Majority of revenue is generated from licensed games developed by third parties, with a growing portfolio of self-developed titles.

• Recent strategic shift away from mainland China operations, with all material business now centered in Hong Kong.

Financial performance and metrics

• Revenue for the year ended September 30, 2024 was $7.92 million, up 100.5% from $3.95 million in 2023.

• Net income for FY2024 was $1.1 million, compared to a net loss of $1.26 million in FY2023.

• For the six months ended March 31, 2025, revenue was $5.2 million and net income was $0.91 million.

• Gross profit margin decreased to 38% in FY2024 from 60.7% in FY2023, mainly due to higher platform and developer fees.

• As of March 31, 2025, cash was $58,490 and working capital was $2.4 million.

Use of proceeds and capital allocation

• Net proceeds of approximately $4.3 million (assuming no over-allotment) expected from the IPO.

• 40% of proceeds allocated to expansion of operations team and rewards, 40% to product development, and the remainder to working capital and general corporate purposes.

• No formal dividend policy; all earnings expected to be retained for growth and development.