Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 195

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 195
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6.9536  

  (g)      Cash  

Cash
mainly consists of cash in bank. As of June 30, 2025 and 2024, the Group maintains substantially all the bank accounts in the PRC, Hong
Kong and the United States of America.

  (h)      Restricted cash  

Restricted
cash represents bank deposits pledged for bank loans. Restricted cash were US$ 6,980 6,880

F-12

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  SUMMARY                                     

  (i)      Accounts receivable, net  

Accounts
receivable are stated at the original amount less an allowance for credit losses.

Accounts
receivable are recognized in the period when the Group has provided products and services to its customers and when its right to consideration
is unconditional. On July 1, 2023, the Group adopted ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement
on Credit Losses on Financial Instruments”, including certain subsequent amendments, transitional guidance and other interpretive
guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03 (collectively, including ASU 2016-13,
“ ASC 326”). ASC 326 introduces an approach based on expected losses to estimate the allowance for credit losses, which replaces
the previous incurred loss impairment model. The Group uses aging schedule method in the current expected credit loss model (“ CECL
model”) to estimate the expected credit losses. The Group’s estimation of allowance for credit losses considers factors such
as historical credit loss experience, age of receivable balances, current market conditions, reasonable and supportable forecasts of
future economic conditions, in combination with assessing receivable collectability on an individual basis, and applying current situation
adjustment. The Group concludes that there is no impact over the initial adoption of CECL model, which should be treated as cumulative-effect
adjustment on accumulated deficits as of July 1, 2023. Accounts receivable balances are written off after all collection efforts have
been exhausted.

There
were nil 73,310 6,953

  (j)      Inventories,