Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 19

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 19
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,863,434       63.2      2,926,280        668.1      2,095,600      29.3      2,043,115  
  Research and development expenses        1,698,494       27.8      2,297,474        524.6        843,083      11.8        919,920  
  Selling and marketing expenses             648,301       10.6      1,138,183        259.9        202,659       2.8        470,119  
  Impairment of long-lived assets            200,841        3.3              -            -         49,180       0.7              -  
  Total operating expenses                 6,411,070      104.9      6,361,937      1,452.6      3,190,522      44.6      3,433,154  

General and administrative expenses

Our general and administrative
expenses mainly consist of (1) employee compensation, (2) professional service fees, (3) travelling and transportation expenses,
(4) provision for credit losses of financial assets, and (5) other expenses related to general and administrative personnel.

Research and development expenses

Our research and development
(“ R& D”) expenses mainly consist of (1) employee compensation, (2) materials and supplies expenses related to
our R& D functions, and (3) depreciation and rental expenses related to our R& D functions.

Selling and marketing expenses

Our selling and marketing
expenses mainly consist of (1) employee compensation, (2) marketing and advertising expenses, and (3) depreciation and
rental expenses for leased properties related to our marketing functions.

Impairment loss of long-lived assets

If the sum of the expected
undiscounted cash flow is less than the carrying amount of the long-lived assets, we would recognize an impairment loss, which is the
excess of carrying amount over the fair value of the assets, using the market approach.

Other (expenses)/income, net

Other (expenses)/income consists
of interest expenses, net and other income, net. Interest expenses, net mainly consist of interest income and expenses, bank charges and
exchange gain or loss. Other income, net primarily consists of government subsidy and gain or loss from disposal of property and equipment.

Taxation