DKI

HONG KONG, Aug. 13, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris”), an innovative technology provider in the digital media and entertainment sector, today announced its unaudited financial results for the six months ended March 31, 2026. Mr. Zhifang Hong, Chief Executive Officer and Chairman of DarkIris, commented, “We are encouraged by the continued momentum across our business in the first half of fiscal year 2026. Revenue increased by 13.9% year over year, while gross profit grew at an even faster rate of 20.9%, with gross margin expanding to 29.6%. These results demonstrate the underlying strength of our core business and our continued progress in enhancing monetization efficiency. “This performance was supported by contributions from newly launched titles, sustained engagement across our existing game portfolio, and year-over-year growth in both our paying user base and average revenue per paying gamer. Importantly, despite the removal of one of our legacy titles, our newer games continued to attract and monetize users, reinforcing our confidence in the resilience and scalability of our product portfolio. “During the period, we also made strategic expenditures to strengthen our products and support the Company’s next stage of development. These included approximately $2.13 million of game enhancement costs for two games and approximately $0.29 million of professional service fees associated with our Nasdaq listing, which were significant contributors to the increase in operating expenses and the reported loss for the period. We view these expenditures as part of our broader effort to enhance product quality, strengthen our technology capabilities and build the infrastructure necessary to support long-term growth. “Building on this foundation, we are increasingly pursuing a dual-engine growth strategy across gaming and AI-driven digital media. We expanded our AI and content capabilities through the commercial launch of our AIGC video platform and the acquisition of a portfolio of film and television intellectual property titles. We believe these initiatives broaden our opportunities across AI-assisted content creation, digital entertainment and IP-driven commercialization while complementing our established gaming business. “Looking ahead, we remain focused on scaling our game portfolio, advancing our AI-driven content capabilities and pursuing new monetization opportunities across both gaming and digital media. We believe the investments we are making today will position DarkIris to build a more diversified, technology-driven and sustainable growth platform for our shareholders.” First Half of Fiscal Year 2026 Financial Highlights Revenue was $5.93 million for the first half of fiscal year 2026, an increase of 13.9% from $5.20 million for the same period of last fiscal year. Gross profit was $1.76 million for the first half of fiscal year 2026, an increase of 20.9% from $1.45 million for the same period of last fiscal year. Gross margin was 29.6% for the first half of fiscal year 2026, an increase of 1.7 percentage points from 27.9% for the same period of last fiscal year. Net loss was $1.90 million for the first half of fiscal year 2026, compared to net income of $0.91 million for the same period of last fiscal year. Basic and diluted loss per share was $1.51 for the first half of fiscal year 2026, compared to basic and diluted earnings per share of $0.91 for the same period of last fiscal year. First Half of Fiscal Year 2026 Financial Results Revenue Revenue was $5.93 million for the first half of fiscal year 2026, an increase of 13.9% from $5.20 million for the same period of last fiscal year. The increase was primarily driven by the continued contribution of games launched in fiscal year 2025 and the successful release of new titles in fiscal year 2026. The increase was mainly attributable to the increase of monthly paying gamers from 70,866 gamers for the first half of fiscal year 2025 to 79,608 gamers for the first half of fiscal year 2026. Additionally, the average revenue per paying gamer increased from $20.50 for the first half of fiscal year 2025 to $22.38 for the first half of fiscal year 2026, which further contributed to the increase in revenue. Cost of Revenue Cost of revenue was $4.17 million for the first half of fiscal year 2026, an increase of 11.2% from $3.75 million for the same period of last fiscal year. The following table sets forth the breakdown of cost of revenue for the first half of fiscal year 2026 and 2025, respectively: Platform Handling Fees Platform handling fees were $3.33 million for the first half of fiscal year 2026, an increase of 9.8% from $3.03 million for the same period of last fiscal year. Revenue generated from game players are shared between the platform and the Company, typically ranging from 15% to 60%. These third party digital platforms have been successful in promoting the games, attracting gamer to make in-game purchases and game revenues increased from approximately $5.2 million for the first half of fiscal year 2025 to approximately $5.9 million for the first half of fiscal year 2026, resulting in a synchronous increase in revenue sharing with these platforms. Revenue Sharing with Game Developers Revenue sharing with game developers was $0.83 million for the first half of fiscal year 2026, an increase of 22.8% from $0.68 million for the same period of last fiscal year. Revenue sharing with game developers is typically ranging from 10% to 20%. The increase was mainly attributed to the increased gamers spending which resulted in increase in game revenue, revenue sharing with game developers was correspondingly increased. Cloud Server Costs Cloud server costs were $10,149 for the first half of fiscal year 2026, a decrease of 75.3% from $41,076 for the same period of last fiscal year. Game revenue generated from Google and Apple digital platforms reduced which, in turn, reduced data requirements from cloud servers and the corresponding cloud server costs. Also, the decrease in cloud server costs was attributable to the provision of cloud servers by certain third party digital platforms and, as a result, the Company did not need to incur cloud server costs for certain games. Gross Profit and Gross Profit Margin Gross profit was $1.76 million for the first half of fiscal year 2026, an increase of 20.9% from $1.45 million for the same period of last fiscal year. Gross profit margin was 29.6% for the first half of fiscal year 2026, an increase of 1.7 percentage points from 27.9% for the same period of last fiscal year. The increase was mainly attributable to the growth in game revenue outpacing the increase in cost of revenue. Operating Expenses Total operating expenses were $3.67 million for the first half of fiscal year 2026, an increase of 718.3% from $0.45 million for the same period of last fiscal year. Selling expenses were $0.80 million for the first half of fiscal year 2026, compared to nil for the same period of last fiscal year. The increase was mainly attributable to incurrence of advertising and promotional expenses for launching of new games. General and administrative expenses were $2.87 million for the first half of fiscal year 2026, an increase of 539.1% from $0.45 million for the same period of last fiscal year. The increase was mainly attributable to game enhancement costs of $2.13 million for two games, which were expensed as incurred. Net (loss) Income Net loss was $1.90 million for the first half of fiscal year 2026, compared to net income of $0.91 million for the same period of last fiscal year. Basic and Diluted Loss per Share Basic and diluted loss per share were $1.51 for the first half of fiscal year 2026, compared to basic and diluted earnings per share of $0.91 for the same period of last fiscal year. Financial Condition As of March 31, 2026, the Company had cash of $0.47 million, compared to $1.80 million as of September 30, 2025. The Company also had accounts receivable of approximately $1.59 million, prepaid expenses and other current assets of approximately $0.67 million and working capital of approximately $0.4 million. Net cash used in operating activities was $0.49 million for the first half of fiscal year 2026, compared to net cash provided by operating activities of $0.73 million for the same period of last fiscal year. The decrease in cash in operating activities was partially offset by a decrease in accounts receivable of approximately $1.0 million due to collections and an increase of $0.3 million in amortization of intangible assets as a result of increase in capitalization of intangible assets after new games were launched. Net cash used in investing activities was $1.31 million for the first half of fiscal year 2026, compared to $0.79 million for the same period of last fiscal year. The increase was mainly attributable to intangible assets under construction as the Company continued to invest in game development for maintaining the growth momentum. Net cash provided by financing activities was $0.47 million for the first half of fiscal year 2026, compared to net cash used in financing activities of $0.19 million for the same period of last fiscal year. The increase mainly consisted of proceeds of $472,424 capital contribution from shareholders. In April 2026, the Company completed a $3.8 million private investment in public equity (“PIPE”) financing, by issuing 9,400,000 Class A ordinary shares, par value $0.0001 per share, of the Company (“Class A Ordinary Shares”) at a price of $0.35 per Class A Ordinary Share; and 1,428,571 Class B ordinary shares, par value $0.0001 per share, of the Company (“Class B Ordinary Shares”) at a price of $0.35 per Class B Ordinary Share (the “Private Placement”). In relation to this PIPE financing, a sum of $472,424 capital contribution was received in March 2026, while the remaining capital contribution was fully received in April 2026. About DarkIris Inc. DarkIris Inc. (Nasdaq: DKI) is an innovative, growth-oriented public company focused on AI-driven digital media and content production technologies. Through advanced production capabilities, including its artificial intelligence platform, aideptus.com, the Company aims to provide creators, studios, and developers with generative AI solutions designed to streamline creative workflows and enhance digital content production experiences. For more information, please visit the Company’s website at www.darkiris.com. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission ("SEC"). For investor and media inquiries, please contact: DarkIris Inc. Investor Relations DepartmentEmail: [email protected] Ascent Investor Relations LLCTina XiaoPhone: +1 646-932-7242Email: [email protected] * Retrospectively restated for the effect of a 1-for-16 reverse share split on May 11, 2026. * Retrospectively restated for the effect of a 1-for-16 reverse share split on May 11, 2026.

HONG KONG, April 09, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris”), a comprehensive technology enterprise engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts, today announced the establishment of a new subsidiary, AETHER INTELLIGENCE PTE. LTD. (“AETHER INTELLIGENCE”), in Singapore. This subsidiary will serve as DarkIris’ global research and development (R&D) headquarter and central hub for Artificial Intelligence Generated Content (“AICG”) innovation and operations, marking the completion of the Company’s strategic transformation from a traditional gaming business into an AI-driven pan-entertainment technology ecosystem. Advancing Artificial General Intelligence for Gaming and Film Production AETHER INTELLIGENCE aims to bring together top-tier artificial intelligence (“AI”) engineers and graphics experts to explore and deploy AIGC technologies across the full production pipeline of gaming and film industries. To address the high costs and lengthy development cycles traditionally associated with content creation, the Company plans to leverage AI technologies to significantly improve efficiency and reduce costs across key processes, including script generation, asset creation (such as 3D modeling and texturing), motion capture, intelligent storyboarding, and automated rendering. DarkIris’ long-term vision is to move beyond the current application-level limitations of generative AI by developing vertically specialized Artificial General Intelligence (“AGI”) solutions tailored for content creation, ultimately establishing a fully AI-driven, automated content generation ecosystem for the gaming and film sectors. Building a Scalable “Technology + Ecosystem” Closed-Loop Business Model Through an Open Platform From a commercialization perspective, DarkIris is pursuing a platform-based strategy with strong long-term scalability. Following the internal validation and stabilization of AETHER INTELLIGENCE’s AIGC technologies and vertical models, the Company plans to upgrade its internal toolset into an open industry platform under a Model-as-a-Service (“MaaS”) and Platform-as-a-Service (“PaaS”) framework. In the future, this platform will be made available to game developers, independent filmmakers, and content creators globally, offering modular AI creation tools and computing power support. The Company believes this strategy will enable it to build a scalable SaaS-based recurring revenue model with significant network effects. Strong Financial Position to Support Growth Supported by its recent private placement, conducted under exemptions from registration provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D thereunder, which raised approximately $3.8 million completed at a premium, DarkIris has established a solid cash flow foundation to support team recruitment in Singapore, core algorithm development, and potential strategic acquisitions of high-quality global film intellectual property and underlying digital assets. Management Commentary Mr. Zhifang Hong, Chief Executive Officer and Chairman of DarkIris, commented: “The establishment of our Singapore subsidiary marks a major milestone in DarkIris’ development. We firmly believe that the content industry will be fundamentally reshaped by AI. AETHER INTELLIGENCE is therefore not only tasked with enhancing and optimizing our existing gaming products, but also with building the next-generation infrastructure for film and game production. Supported by our recent oversubscribed strategic financing, we believe we are well positioned with substantial resources to capitalize on this rapidly growing multi-billion-dollar market and deliver sustainable, long-term value to our shareholders.” About DarkIris Inc. DarkIris Inc. is a comprehensive technology enterprise based in Hong Kong, engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts. The Company conducts its business through its subsidiaries, Quantum Arts Co., Limited and Hongkong Stellar Wisdom Co., Limited. The Company’s activities include game design, programming and graphics, as well as the distribution and operation of mobile games across multiple platforms. DarkIris leverages (i) the innovative, creative and technical expertise of Hong Kong’s gaming industry community, and (ii) the multicultural environment and diverse interests of mobile game players in the regions. The Company’s goal is to create and promote a broader array of engaging, immersive, and captivating mobile game genres for a global audience. The Company is committed to consistently showcasing exceptional strength and unique allure across diverse gaming sectors, leading the way in pioneering advancements within the industry. For more information, please visit the Company’s website: www.darkiris.com. Forward-Looking Statements This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the following: the Company’s ability to achieve its goals and strategies, the Company’s future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions, the Company’s ability to comply with Nasdaq continued listing standards and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission (“SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. For investor and media inquiries, please contact: DarkIris Inc. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao Phone: +1 646-932-7242 Email: [email protected]

HONG KONG, Jan. 30, 2026 (GLOBE NEWSWIRE) -- DarkIris Inc. (Nasdaq: DKI) (the “Company” or “DarkIris”), a comprehensive technology enterprise engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts, today announced its financial results for the fiscal year ended September 30, 2025. Mr. Zhifang Hong, Chief Executive Officer and Chairman of DarkIris, commented, “Fiscal year 2025 was a transformative year for DarkIris as we continued to develop, refine and iterate our games, successfully renewing and expanding our product portfolio. We delivered solid operating performance, with full-year revenue reaching $10.08 million, representing a year-over-year increase of 27.3%. This growth was primarily driven by sustained contributions from games launched in 2024, as well as the successful rollout of new titles in 2025. Despite higher costs associated with promotional activities and third-party revenue sharing, our core operating metrics maintained on a positive trajectory. We strengthened our base of Monthly Paying Users (MPUs) and recorded a meaningful increase in Average Revenue per Paying User (ARPPU), reflecting enhanced monetization capability and deeper engagement from mid- to high-value users. During the year, we proactively increased investments in marketing, platform partnerships and talent incentives to support our long-term growth. Notably, we continued to enhance our equity-based incentive programs to attract, motivate and retain key talents, and boosted product research and development investment to approximately $0.90 million to enrich our game portfolio and enhance gameplay quality. Excluding the impact of non-recurring equity incentives, the Company actually generated an operating profit of approximately $0.17 million. These initiatives further reinforced our product pipeline and strengthened our competitive positioning. While such investments exerted short-term pressure on profitability, the launch of new games and intensified operational activities drove a notable rebound in Daily Active Users (DAUs) and Monthly Download Users (MDUs) in the fourth quarter, underscoring our strong resilience in user acquisition and positive momentum in both user scale and engagement. Looking ahead, we remain committed to investing in creative and innovative game development while optimizing user operations and engagement strategies to further enhance user attraction and retention. In parallel, we will continue diversifying and expanding our marketing and distribution channels. Supported by an increasingly diversified product matrix and a growing base of high-value users, we believe DarkIris is well positioned to deliver sustainable growth and gradually unlock long-term operating leverage.” Fiscal Year 2025 Financial Summary Revenue was $10.08 million in fiscal year 2025, an increase of 27.3% from $7.92 million in fiscal year 2024. Gross profit was $2.50 million in fiscal year 2025, compared to $3.01 million in fiscal year 2024. Gross margin was 24.8% in fiscal year 2025, compared to 38.0% in fiscal year 2024. Net loss was $8.64 million in fiscal year 2025, compared to net income of $1.10 million in fiscal year 2024. Basic and diluted loss per share were $0.52 in fiscal year 2025, compared to basic and diluted earnings per share of $0.07 in fiscal year 2024. Fiscal Year 2025 Financial Results Revenues Revenue was $10.08 million in fiscal year 2025, an increase of 27.3% from $7.92 million in fiscal year 2024. The increase was mainly attributable to continuing revenue contribution from five games launched in March 2024 which increased revenue by approximately $5.04 million and the launch of a new game in 2025 which increased revenue by $0.25 million. The increase was partially offset by a decrease in contribution of $2.92 million of six old games. In fiscal year 2025, the Company continued to engage with two third-party digital platforms. These third-party digital platforms assisted the Company in promoting the games, encouraging gamers to make in-game purchases, therefore, contributing to the increase in revenues by approximately $5.04 million. Cost of Revenues Cost of revenue was $7.58 million in fiscal year 2025, an increase of 54.2% from $4.91 million in fiscal year 2024. The following table sets forth the breakdown of cost of revenues for fiscal year 2025 and fiscal year 2024, respectively: Platform Handling Fees Platform handling fees were $6.19 million in fiscal year 2025, an increase of 76.0% from $3.52 million in fiscal year 2024. The increase was primarily attributable to the revenue contribution from two platforms and, as a result, revenue sharing with these two platforms synchronous increased. In fiscal year 2024 and fiscal year 2025, the Company continued to engage with two third-party digital platforms which assist the Company in promoting the games. Revenue generated from game players are shared between the platforms and the Company, typically ranging from 15% to 60%. These third-party digital platforms have been successful in promoting the games, attracting gamer to make in-game purchase and game revenues increased from approximately $7.92 million in fiscal year 2024 to approximately $10.08 million in fiscal year 2025, resulting in a synchronous increase in revenue sharing with these platforms. Revenue Sharing with Game Developers Revenue sharing with game developers was $1.33 million in fiscal year 2025, an increase of 4.8% from $1.27 million in fiscal year 2024. Revenue sharing with game developers was typically ranging from 10% to 20% of the revenue generated from their licensed games. The increase in revenue sharing with game developers was minimal as revenue from self-developed games increased significantly while the increase in revenue from licensed games by the game developers was minimal. Cloud Server Costs Cloud server costs were $0.06 million in fiscal year 2025, a decrease of 55.6% from $0.13 million in fiscal year 2024. The decrease in cloud server costs was primarily attributable to the increase in using above-mentioned third-party digital platforms. Certain third-party digital platforms absorbed cloud server costs for the Company. Gross Profit and Gross Margin Gross profit was $2.50 million in fiscal year 2025, compared to $3.01 million in fiscal year 2024. Gross margin was 24.8% in fiscal year 2025, compared to 38.0% in fiscal year 2024. The decrease in gross profit margin was mainly attributable to the significant increase in platform handling fees. Operating Expenses Total operating expenses were $11.10 million in fiscal year 2025, an increase of 499.3% from $1.85 million in fiscal year 2024. Selling expenses were $9.30 million in fiscal year 2025, an increase of 797.9% from $1.04 million in fiscal year 2024. The increase was mainly attributable to share-based compensation of approximately $8.81 million related to post-IPO equity incentive programs designed to attract and retain key talents. Research and development expenses were $0.90 million in fiscal year 2025, an increase of 100% from nil in fiscal year 2024. The increase was primarily attributable to art production costs for a mobile digital game “Alchemy and Magic” which should be expensed. General and administrative expenses were $0.90 million in fiscal year 2025, an increase of 9.7% from $0.82 million in fiscal year 2024. The increase was mainly attributed to professional service fees incurred for the initial public offerings. Net (loss) Income Net loss was $8.64 million in fiscal year 2025, compared to net income of $1.10 million in fiscal year 2024. Basic and Diluted Loss per Share Basic and diluted loss per share were $0.52 in fiscal year 2025, compared to basic and diluted earnings per share of $0.07 in fiscal year 2024. Financial Condition As of September 30, 2025, the Company had cash of $1.80 million, compared to $0.31 million as of September 30, 2024. Net cash used in operating activities was $0.46 million in fiscal year 2025, compared to net cash provided by operating activities of $0.05 million in fiscal year 2024. Net cash used in investing activities was $3.42 million in fiscal year 2025, compared to $0.01 million in fiscal year 2024. Net cash provided by financing activities was $5.37 million in fiscal year 2025, compared to net cash used in financing activities of $0.20 million in fiscal year 2024. Recent Development On August 11, 2025, the Company completed its initial public offering (the “Offering”) of 1,725,000 Class A ordinary shares at a public offering price of $4.00 per share. The gross proceeds were $6.90 million, before deducting underwriting discounts and commissions, and other expenses. The Company’s Class A ordinary shares began trading on the Nasdaq Capital Market on August 8, 2025, under the ticker symbol “DKI.” About DarkIris Inc. DarkIris Inc. is a comprehensive technology enterprise based in Hong Kong, engaged in the development, publishing and operating of mobile digital games through various third-party digital storefronts. The Company conducts its business through its subsidiaries, Quantum Arts Co., Limited and Hongkong Stellar Wisdom Co., Limited. The Company’s activities include game design, programming and graphics, as well as the distribution and operation of mobile games across multiple platforms. DarkIris leverages (i) the innovative, creative and technical expertise of Hong Kong’s gaming industry community, and (ii) the multicultural environment and diverse interests of mobile game players in the regions. The Company’s goal is to create and promote a broader array of engaging, immersive, and captivating mobile game genres for a global audience. The Company is committed to consistently showcasing exceptional strength and unique allure across diverse gaming sectors, leading the way in pioneering advancements within the industry. For more information, please visit the Company’s website: www.darkiris.com. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission ("SEC"). For investor and media inquiries, please contact: DarkIris Inc. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: [email protected]