Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 179

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 179
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 and for the year ended June 30, 2023, the Company recognized bad debt expense of $96,910.

| F-14 |

<div align='center'>STAK INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. dollars, except for number of shares)</div>

NOTE 4 - INVENTORIES

Inventories were summarized as follows:

|                     |     | As of June 30, |      2024 |     |   |      2023 |
|:--------------------|:----|:---------------|----------:|:----|:--|----------:|
| Parts and materials |     | $              | 7,915,528 |     | $ | 4,548,555 |
| Finished goods      |     |                |   366,715 |     |   |         - |
| Goods in transit    |     |                |         - |     |   | 1,634,083 |
| Inventories         |     | $              | 8,282,243 |     | $ | 6,182,638 |

For the years ended June 30, 2024 and 2023, the Company did not recognize any impairment loss for slow-moving inventory with cost lower than net realizable value.

NOTE 5 - PREPAYMENTS AND OTHER CURRENT ASSETS, NET

Prepayments and other current assets consisted of the following:

|                                          |     | As of June 30, |    2024 |   |     |   |    2023 |   |
|:-----------------------------------------|:----|:---------------|--------:|:--|:----|:--|--------:|:--|
| Loans to third parties (i)               |     | $              | 598,580 |   |     | $ | 345,041 |   |
| Prepaid expenses                         |     |                |  21,694 |   |     |   |  30,633 |   |
| Deductible input VAT                     |     |                |  72,641 |   |     |   |       - |   |
| Others                                   |     |                |   2,029 |   |     |   |  18,233 |   |
| Less: allowances for credit losses       |     |                | (14,448 | ) |     |   | (27,822 | ) |
| Prepayment and other