Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 81

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 81
---
 customers and, do not have discretion
in establishing the price. We recognize revenue from sales of parts and materials at a point in time upon the customer’s acceptance
of the parts and materials.

For all the revenue streams,
the contract payment is not subject to any refund, sales incentives, cancellation or termination provision. Nor have we made such payments.

Timing of revenue recognition
was once we have determined that the customer has obtained control over the product. Accounts receivable represent revenue recognized
for the amounts invoiced and/or prior to invoicing when we have satisfied its performance obligation and have an unconditional right
to the payment.

Deferred revenue primarily
represents our obligation to transfer additional goods or services to a customer for which we have received consideration. The consideration
received remains a contractual liability until goods or services have been provided to the customer. The amount of revenue recognized
during the years ended June 30, 2024 and 2023 that was previously included in the deferred revenue as of June 30, 2023 and 2022 was $384,532
and $98,386, respectively.

Income taxes

Current income taxes are recorded
in accordance with the regulations of the relevant tax jurisdiction. We account for income taxes under the asset and liability method
in accordance with ASC 740, Income Tax. Under this method, deferred tax assets and liabilities are recognized for the tax consequences
attributable to differences between carrying amounts of existing assets and liabilities in the consolidated financial statements and
their respective tax basis, and operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect
on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period of change.
Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than
not that amount of the deferred tax assets will not be realized.

The guidance on accounting
for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of
a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities,
classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions,
accounting for income taxes in interim periods, and income tax disclosures. We recognize interest and penalties, if any, under accrued