Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 67

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 67
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 S. Holders may experience adverse U. S. federal
income tax consequences.

A non-U. S. corporation
generally will be treated as a PFIC for U. S. federal income tax purposes, in any taxable year if either (1) at least 75% of
its gross income for such year is passive income or (2) at least 50% of the value of its assets (generally based on an average of
the quarterly values of the assets) during such year is attributable to assets that produce or are held for the production of passive
income. The determination of whether we will be treated as a PFIC for the taxable year that includes the Business Combination will depend
on a number of factors, including the timing of the Business Combination and the amount of cash held by Finnovate and Scage International
and its subsidiaries at the time of the Business Combination, among others. Accordingly, there can be no assurances in this regard or
any assurances that we will not be treated as a PFIC in the taxable year that includes the Business Combination or any future taxable
year. Moreover, the application of the PFIC rules is subject to uncertainty in several respects, and there can be no assurance that the
Internal Revenue Service (the “ IRS”) will not take a contrary position or that a court will not sustain such a challenge
by the IRS.

Following the consummation
of the Business Combination, whether we or any of its subsidiaries are a PFIC for any taxable year is a factual determination that depends
on, among other things, the composition of its income and assets, and the market value of its securities. Changes in our composition,
the composition of our income or the composition of its assets may cause it to be or become a PFIC for the current or subsequent taxable years.
Whether we are treated as a PFIC for U. S. federal income tax purposes is a factual determination that must be made annually at the
close of each taxable year and, thus, is subject to significant uncertainty.

If we are a PFIC for any
taxable year, a U. S. Holder of its securities may be subject to adverse tax consequences and may incur certain information reporting
obligations. For a further discussion, see “ Certain Material U. S. Federal Income Tax Considerations - U. S. Holders - Ownership
and Disposition of Company ADSs and Assumed Warrants by U. S. Holders - Passive Foreign Investment Company Rules.” U. S.