Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 173

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 173
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| Service income from automation solutions |     |                          |  1,763,018 |     |   |    271,462 |
| Others                                   |     |                          |  2,871,439 |     |   |    593,589 |
| Net revenues                             |     | $                        | 18,918,847 |     | $ | 21,146,463 |

Contract Balances

Timing of revenue recognition was once the Company has determined that the customer has obtained control over the product. Accounts receivable represent revenues recognized for the amounts invoiced and/or prior to invoicing when the Company has satisfied its performance obligation and has an unconditional right to the payment.

Deferred revenue primarily represents the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration. The consideration received remains a contractual liability until goods or services have been provided to the customer. The amount of revenue recognized during the years ended June 30, 2024 and 2023 that was previously included in the deferred revenue as of June 30, 2024 and 2023 was $384,532 and $98,386, respectively.

| F-11 |

<div align='center'>STAK INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

| (m) | Cost        
 of revenues |

Cost of revenues mainly consists of manufacturing and purchase cost of raw materials, depreciation and other overhead expenses.

| (n) | Selling                
 and marketing expenses |

Selling and marketing expenses mainly consist of commission. Selling and marketing expenses are expensed as incurred.

| (o) | General                     
 and administrative expenses |

General and administrative expenses mainly consist of (i) salaries and welfare expenses, (ii) allowance for doubtful accounts and (iii) professional fees.

| (p) | Research                 
 and development expenses |

The Company’s research and development (“R&D”) expenses primarily consist of (i) materials in relation to testing materials; and (ii) design and development expenses, which primarily include fees payable to third-party suppliers for designing and testing. The research and development expenses are mainly driven by the stage and scale of our equipment development. The Company follows the guidance in FASB ASC 730-10.

| (q) | Employee 
 benefits |

The Company’s subsidiaries incorporated in the PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical,