Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 72

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 72
---
.6 million for the year ended June 30, 2023. The change is due to our one-time government subsidies of
government investment promotion and entrepreneurial funding to the talents for the year ended June 30, 2023. We are not expecting to
receive government subsidies of such an amount continuously.

Income tax expense

The PRC EIT is calculated
based on the taxable income determined under the applicable EIT Law and its implementation rules. Income tax expenses decreased by $0.4
million, or 61.37%, to $0.3 million for the year ended June 30, 2024 from $0.7 million for the year ended June 30, 2023. The change resulted
from the change in our taxable income.

Net income

As a result of the foregoing,
our net income decreased by $1.1 million to $2.4 million for the year ended June 30, 2024 from $3.5 million for the year ended June 30,
2023.

| 45 |

Cash Flows

Years Ended June 30, 2024 and 2023

The following table summarizes
our cash flows for the periods indicated:

|                                                    |     | For                      
 the years ended June 30, |       2024 |   |     |   |       2023 |   |
|:---------------------------------------------------|:----|:-------------------------|-----------:|:--|:----|:--|-----------:|:--|
| Net cash used in operating activities              |     | $                        | (2,735,297 | ) |     | $ | (1,529,678 | ) |
| Net cash used in investing activities              |     |                          |   (273,213 | ) |     |   | (2,955,564 | ) |
| Net cash provided by financing activities          |     |                          |  3,074,304 |   |     |   |  4,958,361 |   |
| Effect of exchange rate changes                    |     |                          |       (839 | ) |     |   |     88,167 |   |
| Net increase in cash and cash equivalents          |     | $                        |     64,955 |   |     | $ |    561,286 |   |
| Cash and cash equivalents, beginning of the period |     | $                        |    593,199 |   |     | $ |     31