Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 71

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 71
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Our selling and marketing
expenses primarily consist of commission.

Our selling and marketing
expenses decreased by $0.5 million, or 44.52%, to $0.7 million for the year ended June 30, 2024 from $1.2 million for the year ended
June 30, 2023, in alignment with the change in sales performance.

General and administrative expenses

Our general and administrative
expenses primarily consist of salaries and welfare expenses, allowance for doubtful accounts, renovation expenses, depreciation and amortization
expenses and professional fees.

Our general and administrative
expenses decreased by $0.1 million, or 6.05%, to $0.5 million for the year ended June 30, 2024 from $0.6 million for the year ended June
30, 2023, which attributed to the increase in renovation expenses of $0.05 million and professional fees related to the offering of $0.02
million, partially offset by decrease in salaries and welfare expenses of $0.07 million and bad debt expenses of $0.07 million.

Research and development expenses

Our research and development
expenses primarily consist 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 $0.3 million, or 22.27%, to $1.7 million for the year ended June 30, 2024 from $1.4 million for the year ended
June 30, 2023, attributed to the increase of design and development expenses. The research and development expenses are mainly driven
by the stage and scale of our equipment development.

Other income (expense)

Our other income (expense)
primarily consists of (i) interest expense, net, and (ii) government subsidies. Our government subsidies received in cash were not contingent
upon our further actions or performance.

Interest expenses increased
by $0.08 million, or 141.40%, to $0.13 million for the year ended June 30, 2024 from $0.05 million for the year ended June 30, 2023, as
a result of the increase of bank borrowings. While government subsidies decreased by $0.55 million, or 92.34%, to $0.05 million for the
year ended June 30, 2024 from $0