Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 186

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 186
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 on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheets.

The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

A summary of lease cost recognized in the Company’s consolidated statements of income and comprehensive income was as follows:

|                                                            |     | For the Years Ended June 30, |   2024 |     |   |   2023 |
|:-----------------------------------------------------------|:----|:-----------------------------|-------:|:----|:--|-------:|
| Operating leases costs excluding short-term rental expense |     | $                            | 31,725 |     | $ | 40,466 |
| Short-term rental expense                                  |     |                              |  2,284 |     |   |    506 |
| Total                                                      |     | $                            | 34,009 |     | $ | 40,972 |

A summary of supplemental information related to operating leases was as follows:

|                                               |     |          As 
 of June 30, |      |   |     |      |      |   |
|                                               |     |        2024 |      |   |     | 2023 |      |   |
| Weighted average remaining lease term (years) |     |             | 2.00 |   |     |      | 0.72 |   |
| Weighted average discount rate                |     |             | 3.85 | % |     |      | 4.40 | % |

The Company’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and an amount equal to the lease payments in a similar economic environment.

| F-19 |

<div align='center'>STAK INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. dollars, except for number of shares)</div>

NOTE 13 - EQUITY

Ordinary shares

STAK was established under the laws of Cayman Islands on May 9, 2023. The authorized number of Ordinary Shares was originally 50,000 with par