DarkIris (DKI) Registration Filing summary

Company overview and business model

• Operates as a holding company in the Cayman Islands, with primary business through Hong Kong subsidiaries Quantum Arts and Stellar Wisdom, focused on mobile game development, publishing, and operation via third-party digital storefronts.

• Business model centers on self-developed and licensed mobile games, with a freemium approach and in-game purchases as the main revenue stream.

• Revenue is primarily generated from in-game purchases, with a significant portion from games licensed from third parties.

• The company has shifted its operational focus from mainland China to Hong Kong, disposing of its PRC subsidiary in May 2025.

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 2024 was $1.1 million, compared to a net loss of $1.26 million in 2023.

• For the six months ended March 31, 2025, revenue was $5.2 million, up 78.2% year-over-year; net income was $0.91 million.

• Gross profit margin decreased to 28% for the six months ended March 31, 2025, from 54% in the prior year period, mainly due to increased 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) are planned to be allocated: 40% to expand the operations team and reward existing members, 40% to product development, and the remainder for working capital and general corporate purposes.

• Management has discretion over the use of proceeds, and may adjust allocations based on business needs.