Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 74

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 74
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 Resources

To date, the primary sources
of liquidity consist of cash flows from the PRC Subsidiaries’ operating activities, capital contributions from shareholders and
loans from banks. We have financed our operations primarily through capital contributions and revenue from operations. As of June 30,
2024, we had cash and cash equivalents of $0.7 million and a total working capital surplus of $7.2 million. For the next 12 months from
the date of this prospectus, we plan to implement measures to meet the cash requirements, including: (i) strictly controlling and reducing
expenses; (ii) seeking additional credit facilities; and (iii) seeking equity financing from shareholders. We believe the above measures
will be adequate to meet the operation requirements in the next 12 months from the date of this prospectus.

We believe our current working
capital is sufficient to support our operations for the next twelve months from the date of this prospectus. We may, however, need additional
cash resources in the future if we experience changes in business conditions or other developments, or if we find and wish to pursue
opportunities for investment, acquisition, capital expenditure or similar actions. If we determine that our cash requirements exceed
the amount of cash and cash equivalents we have on hand at the time, we may seek to issue equity or debt securities or obtain credit
facilities. The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness
would result in increased fixed obligations and could result in operating covenants that would restrict our operations. Our obligation
to bear credit risk for certain financing transactions we facilitate may also strain our operating cash flow. We cannot assure you that
financing will be available in amounts or on terms acceptable to us, if at all.

Current foreign exchange and
other regulations in the PRC may restrict our PRC entities in their ability to transfer their net assets to us and our subsidiaries in
Hong Kong. However, as of the date of this prospectus, these restrictions have no impact on the ability of these PRC entities to transfer
funds to us as we do not anticipate declaring or paying any dividends in the foreseeable future, as we plan to retain our retained earnings
to continue to grow our business. In addition, these restrictions have no impact on the ability for us to meet our cash obligations.

To utilize the proceeds from
this Offering, we may make additional loans or capital contributions to our PRC Subsidi