Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 82

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 82
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expenses and other current liabilities on its consolidated balance sheets and under other expenses in its consolidated statements of
comprehensive income. We did not recognize any significant interest and penalties associated with uncertain tax positions for the years
ended June 30, 2024 and 2023. As of June 30, 2024 and 2023, we did not have any significant unrecognized uncertain tax positions.

Recent Accounting Pronouncements

A list of recently issued
accounting pronouncements that are relevant to us is included in Note 2 to our consolidated financial statements included elsewhere in
this prospectus.

| 49 |

Quantitative and Qualitative Disclosures about Market Risks

We are also exposed to liquidity
risk that we are unable to provide sufficient capital resources and liquidity to meet our commitments and business needs. Liquidity risk
is controlled by the application of financial position analysis and monitoring procedures. When necessary, we will turn to other financial
institutions and the shareholders to obtain short-term funding to meet the liquidity shortage.

Inflation risk

Our costs and expenses may
also be affected by China’s inflation level. Since our inception, inflation in China has not materially impacted our results of
operations. According to the National Bureau of Statistics of China, the year-over-year percent changes in the consumer price index for
2023, 2022 and 2021 were increases of 0.2%, 2.0% and 0.9%, respectively. Although we have not in the past been materially affected by
inflation since our inception, we can provide no assurance that we will not be affected in the future by higher rates of inflation in
China.

Interest rate risk

Our exposure to interest rate
risk primarily relates to the long-term borrowings we have entered into with a bank. We have not been exposed to material risks due to
changes in interest rates. An increase, however, may raise the cost of any debt we have now or in the future.

Foreign currency translation and transactions

Substantially all of our operating
activities and our assets and liabilities are denominated in RMB, which is not freely convertible into foreign currencies. All foreign
exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions
at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting
a payment application form together with suppliers’ invoices and signed contracts. The value of RMB is subject to changes in central