Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 214

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 214
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 2025 and 2024, respectively. As of June 30, 2025, the Group had a working capital deficit of US$20,392,779. These conditions
raised substantial doubts about the Group’s ability to continue as a going concern.

The
Group has funded its operations from both operational sources of cash and equity and debt financing. The Group’s liquidity is based
on its ability to generate cash from operating activities, obtain capital financing from equity interest investors and borrow funds on
financial institutions. The Group’s ability to continue as a going concern is dependent on management’s ability to successfully
execute its business plan, which includes generating revenue while controlling operating cost and expenses to generate positive operating
cash flows and obtaining funds from outside sources of financing to generate positive financing cash flows. As of June 30, 2025 and 2024,
the Group had cash and restricted cash of US$ 97,738 1,984,374

The
accompanying consolidated financial statements have been prepared on the basis the Group will be able to continue as a going concern
for a period of one year after the issuance of the consolidated financial statements. The going concern assumption contemplates the realization
of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about the Group’s ability
to continue as a going concern exists. The consolidated financial statements do not include any adjustments related to the recoverability
or classification of assets and the amounts or classification of liabilities that may result from the outcome of this uncertainty.

  ACCOUNTS         

Accounts
receivable, net consisted of the following:

                                         As of June 30,                                          
                                         2025                               2024                 
 ─────────────────────────────────────────────────────────────────────────────────────────────────
  Accounts receivable                    $                   2,661,416      $         2,085,535  
  Less: Provision for credit losses                           ( 80,686                 ( 79,535  
  Accounts receivable, net               $                   2,580,730      $         2,006,000  

As of June 30, 2025, the
Group has pledged accounts receivable in total of US$2,629,554(RMB18,837,074), owned or entitled to dispose of by law as the pledged
assets to provide guarantee for the short-term loan contracts of US$2,093,919(RMB15,000,000) in the aggregate, signed with China Ever