Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 196

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 196
---
 net  

Inventories, net, primarily
consisting of raw materials, work in process and finished goods, are stated at the lower of cost or net realizable value, with net realized
value represented by estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation.
Cost of finished goods is computed using first-in, first-out method. Cost of raw materials and work in process is computed using the
weighted average cost method. Inventories are written down to estimated net realizable value, which could be impacted by certain factors
including historical usage, expected demand, anticipated sales price, new product development schedules, product obsolescence, and other
factors. The Group periodically reviews its inventories for excess or slow-moving items and makes provisions as necessary to properly
reflect inventory value. Inventory write-downs of US$319,413, US$894,005and US$161,495were recorded for the years ended June 30, 2025,
2024 and 2023, respectively.

  (k)      Property and equipment, net  

Property
and equipment are stated at cost less residual value part, accumulated depreciation and impairment, if any, and depreciated on a straight-line
basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring
the asset into its intended use. Estimated useful lives are as follows:

  Category                             Estimated useful lives                          
 ───────────────────────────────────────────────────────────────────────────────────────
  Vehicles                             4 years                                         
  Machinery and equipment              5 – 10 years                                    
  Office and electronic equipment      3 – 5 years                                     
  Leasehold improvements               Shorter of 3 years or the remaining lease term  
  Software                             2 years                                         

Repair
and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extends the useful lives
of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded
by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements
of operations and comprehensive loss.

F-13

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

  SUMMARY                                     

  (l)      Impairment of long-lived assets  

The