Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 77

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 77
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reserve funds reach 50% of their registered capital. In addition, our subsidiaries in mainland China may allocate a portion of their
after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at their discretion.
The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly
foreign-owned company out of mainland China is subject to examination by the banks designated by SAFE. The PRC Subsidiaries didn’t
distribute dividends and have made no further plans to pay dividends since such date and do not expect to do so unless and until they
have generated sufficient accumulated profits and have met the requirements for statutory reserve funds.

Tabular Disclosure of Contractual Obligations

The following table sets forth
our contractual obligations as of June 30, 2024:

|                           |     | Payments      
 due by period 
 Total         |           |     | Within 
 1 year |           |     | Within    
 1-2 years |         |     | Over 2 years |   |
|:--------------------------|:----|:--------------|----------:|:----|:-------|----------:|:----|:----------|--------:|:----|:-------------|:--|
| Bank borrowings           |     | $             | 4,451,508 |     | $      | 4,334,544 |     | $         | 116,964 |     | $            | - |
| Loan from related parties |     |               |    42,487 |     |        |    42,487 |     |           |       - |     |              | - |
| Total                     |     | $             | 4,493,995 |     | $      | 4,377,031 |     | $         | 116,964 |     | $            | - |

Other than those shown above,
we did not have any significant capital and other commitments, long-term obligations, or guarantees as of June 30, 2024.

Seasonality

The nature of our business
does not appear to be affected by seasonal variations.

Critical Accounting Policies and Estimates

The preparation of the consolidated
financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates
include, but not limited, to allowance for doubtful accounts