Company: STAK
Filing Date: 2025-11-05
Form Type: 20-F
Source: 0001493152-25-020818
Chunk: 83

Company: STAK Inc.
Filing Date: 2025-11-05
Form: 20-F
Item: Item 5
Chunk 83
---
 
Selling and marketing expenses
 
Our selling and marketing expenses consist primarily of commission.
 
Our selling and marketing expenses have been steadily maintained at $0.7 million for the years ended June 30, 2025 and 2024. The observed revenue expansion reflects our management team’s direct business development efforts rather than commission-based sales channels, thereby maintaining stable commission expenditures.
 
General and administrative expenses
 
Our general and administrative expenses consist primarily of share-based compensation expenses, professional fees, provision for credit losses, salaries and welfare expenses, depreciation and amortization expenses and rental expenses.
 
Our general and administrative expenses increased by $6.3 million, or 1,149.44%, to $6.8 million for the year ended June 30, 2025 from $0.5 million for the year ended June 30, 2024, which attributed to the increase in share-based compensation expenses of $3.9 million, professional fees of $1.6 million and provision for credit losses $0.5 million.
 
Research and development expenses
 
Our research and development expenses consist primarily of (i) parts and materials in relation to testing materials; and (ii) design and development expenses, with new technology, materials and suppliers and other research and development related expenses for designing and testing.
 
Research and development expenses increased by $1.6 million, or 94.88%, to $3.3 million for the year ended June 30, 2025 from $1.7 million for the year ended June 30, 2024, attributed to the increase of design and development expenses to develop new products and refine existing products. The research and development expenses are mainly driven by the stage and scale of our equipment development.
 

67
--
 

Other (expense) income
 
Our other (expense) income consists primarily of (i) loss from sale of property and equipment, (ii) loss from sale of accounts receivable, (iii) interest expense, net, (iv) government subsidies, and (v) other expense.
 
Other expense, net was $2.9 million for the year ended June 30, 2025, primarily as a result from loss from sale of property and equipment of $1.5 million due to relocation of production factory, and loss from sale of accounts receivable of $1.1 million due to our demand exchange of on accelerate cash consideration collection and optimize operating cashflow. Interest expense, net subsidies increased by $0.04 million to $0.17