Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 69

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 69
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 30, 2023. We produced higher selling price and higher margin specialized oilfield vehicles, resulting in the average unit
sales price of specialized oilfield vehicles increased by 185.81% for the year ended June 30, 2024.

We provide customers
with automation solutions services, including software development or customized function development on customers’ system,
testing, debugging and other automation solutions services with respect to specialized equipment used in the oilfield. The service
revenue increased by $1.5 million, or 549.45%, to $1.8 million for the year ended June 30, 2024 from $0.3 million for the year ended
June 30, 2023. The increase was mainly driven by the increased demand as a result of our cultivating positive word-of-mouth
recommendations within the oilfield industry and a good reputation in the market. We are not expecting to achieve such growth in
service income from automation solutions continuously as we are going to focus our research and development efforts on our own
vehicle products.

Other revenue primarily
derives from sales of parts and materials, such as integrated circuits, box iron and backlight panel, etc. Our revenue generated from
others increased by $2.28 million, or 383.74%, to $2.87 million for the year ended June 30, 2024 from $0.59 million for the year ended
June 30, 2023, which was primarily attributable to the sales of intelligent chassis parts of $2.83 million for the year ended June 30,
2024. We are not expecting to achieve such growth in other revenues continuously.

Cost of revenues

Cost of revenues consists
primarily of manufacturing and purchase cost of raw materials, depreciation, maintenance, and other overhead expenses. Our cost of revenues
decreased by $1.2 million, or 7.93%, to $13.2 million for the year ended June 30, 2024 from $14.4 million for the year ended June 30,
2023. The decrease in cost of revenue was mainly due to the decrease in revenues of 10.53%.

| 44 |

Gross profit and gross profit margin

|                                          |     |   | For the years ended 
            June 30, 
                2024 |     |               |   |     |   | For the years ended 
            June 30, 
                2023 |   |     |               |    |