CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

12 Months Ended

Jun. 30, 2025

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

NOTE 19 - CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the subsidiaries of the Company exceed 25% of the consolidated net assets of the Company. The ability of the Company’s operating subsidiaries to pay dividends may be restricted due to the restriction of paid in capital, additional paid in capital and statutory surplus reserves of the Company under PRC laws and regulations.

The condensed financial information of the parent company, STAK, has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investment in its subsidiaries.

STAK and its subsidiaries are included in the consolidated financial statements where the inter-company balances and transactions are eliminated upon consolidation. For the purpose of STAK’s stand-alone financial statements, its investments in subsidiaries are reported using the equity method of accounting. STAK’s share of income and losses from its subsidiaries is reported as earnings from subsidiaries in the accompanying condensed financial information of parent company.

STAK INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. dollars, except for number of shares)

NOTE 19 - CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (CONTINUED)

	As of June 30,
	2025			2024
Assets
Current assets:
Cash	$	25,428		$	46,307
Advances to suppliers		135,000			-
Prepayments and other current assets, net		756,585			-
Total current assets		917,013			46,307
Non-current asset:
Investment in subsidiaries		12,405,300			10,534,642
Total non-current asset		12,405,300			10,534,642
Total assets	$	13,322,313		$	10,580,949
Liabilities
Current liabilities:
Accrued expenses and other current liabilities	$	292,528		$	-
Amounts due to related parties		130,039			-
Total current liabilities	$	422,567		$	-
Shareholders’ equity
Ordinary shares (par value of $0.001 per share; 50,000,000 shares authorized; 10,000,000 shares issued and outstanding as of June 30, 2024)	$	-		$	10,000
Class A ordinary shares (par value of $0.001 per share; 75,000,000 shares authorized; 4,010,349 shares issued and outstanding as of June 30, 2025)		4,010			-
Class B ordinary shares (par value of $0.001 per share; 25,000,000 shares authorized; 9,200,000 shares issued and outstanding as of June 30, 2025)		9,200			-
Additional paid in capital		12,157,104			4,249,517
Retained earnings		997,295			6,709,975
Accumulated other comprehensive loss		(267,863	)		(388,543	)
Total shareholders’ equity	$	12,899,746		$	10,580,949
Total liabilities and shareholders’ equity	$	13,322,313		$	10,580,949

	For the Years Ended June 30,
	2025			2024			2023
Operating (loss) income
Equity (loss) income of subsidiaries	$	(424,939	)	$	2,446,103		$	3,460,462
General and administrative expenses		(5,304,727	)		(4,832	)		-
Total operating (loss) income		(5,729,666	)		2,441,271			3,460,462
Foreign exchange gain and interest income		16,986			503			-
Net (loss) income	$	(5,712,680	)	$	2,441,774		$	3,460,462
Other comprehensive (loss) income
Foreign currency translation adjustment		120,680			(31,462	)		(279,973	)
Total comprehensive (loss) income	$	(5,592,000	)	$	2,410,312		$	3,180,489

	For the Years Ended June 30,
	2025			2024			2023
Cash flows from operating activities	$	(1,581,748	)	$	(3,710	)	$	-
Cash flows from investing activities		(2,617,293	)		-			-
Cash flows from financing activities		4,187,707			50,000			-
Effect of exchange rate changes		(9,545	)		17			-
Net (decrease) increase in cash		(20,879	)		46,307			-
Cash at beginning of the year		46,307			-			-
Cash at the end of the year	$	25,428		$	46,307		$	-