Company: STAK
Filing Date: 2025-11-05
Form Type: 20-F
Source: 0001493152-25-020818
Chunk: 45

Company: STAK Inc.
Filing Date: 2025-11-05
Form: 20-F
Item: Item 3
Chunk 45
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 price that we deem reasonable or appropriate.
 
You must rely on the judgment of our management as to the use of the net proceeds from our initial public offering and subsequent offerings, and such use may not produce income or increase the price of our Ordinary Shares.
 
As of June 30, 2025, our cash and cash equivalent were US$1.0 million. Immediately following the completion of our initial public offering, we received net offering proceeds of approximately $4.2 million from our initial public offering and the underwriter’ exercise of over-allotment option, after deducting underwriting discounts and the estimated offering expenses payable by us. Our management have considerable discretion in the application of the net proceeds received by us. You will not have the opportunity, as part of your investment decision, to assess whether proceeds are being used appropriately. The net proceeds may be used for corporate purposes that do not improve our efforts to achieve or maintain profitability or increase the price of our Ordinary Shares. The net proceeds from our initial public offering and subsequent offerings may be placed in investments that do not produce income or that lose value.
 

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We may need additional capital and may sell additional Ordinary Shares or other equity securities or incur indebtedness, which could result in additional dilution to our shareholders or increase our debt service obligations.
 
We may require additional cash resources due to changed business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If our cash resources are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity securities or equity-linked debt securities could result in additional dilution to our shareholders. The incurrence of indebtedness would result in debt service obligations and could result in operating and financing covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or terms acceptable to us, if at all.
 
Certain existing shareholders have substantial influence over our company and their interests may not be aligned with the interests of our other shareholders.
 
As of the date of this annual report, our directors and officers collectively own an aggregate of 98.6% of the total voting power of our outstanding Ordinary Shares. As a result, they have substantial influence over our business, including significant corporate actions such as mergers, consolidations, election of directors and other significant corporate actions.
 
They may take actions that are not in the best interest of us or our other shareholders. This concentration of ownership may discourage, delay