Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 76

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 76
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 expand our business.”

We expect the net proceeds
from our initial public offering to be used in the PRC and will be in the form of Renminbi and, therefore, our PRC Subsidiaries will
need to convert any capital contributions or loans from U.S. dollars into Renminbi in accordance with applicable PRC laws and regulations.

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Capital Expenditures

Our capital expenditures are
primarily incurred for the purpose of acquisition of property and equipment, and intangible asset. Our capital expenditures were $0.02
million and $2.6 million for the years ended June 30, 2024 and 2023, respectively. We intend to fund our future capital expenditures
with our existing cash balance and proceeds from this Offering and expect to continue to make well-planned capital expenditures to meet
the expected growth of our business.

Trend Information

We are not aware of any trends,
uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, net income, profitability,
liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating
results or financial condition.

Off-Balance Sheet Arrangements

We did not have during the
periods presented, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated
entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that
were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Holding Company Structure

Our Company, STAK Inc., is
a holding company with no material operations of its own. We conduct our operations through the PRC Subsidiaries in mainland China. As
a result, our ability to pay dividends depends upon dividends paid by the PRC Subsidiaries. If our existing PRC Subsidiaries or any newly
formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends
to us. In addition, our subsidiaries in mainland China are permitted to pay dividends to us only out of its retained earnings, if any,
as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of our subsidiaries in mainland China
are required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such