Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 39

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 39
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The following table sets
forth our contractual obligations as of December 31, 2024:

                                  Payment due by schedule                                
                                  Less than                                              
                                  US$                                                    
  Operating leases                                               224,198        224,198  
  Bank borrowings                                              7,397,970      7,397,970  
  Loans from third parties                                             -      2,000,000  
  Loans from related parties                                     332,503        332,503  

Operating lease agreements
represented non-cancellable operating leases for our office space. Other than those shown above, we did not have any other significant
capital commitments, purchase commitments, long-term obligations or guarantees as of December 31, 2024.

Critical Accounting Policies

The critical accounting policies
and judgments that we believe to have the most significant impact on our consolidated financial statements are as described below, which
should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included in this
prospectus. When reviewing our financial statements, you should consider:

  our selection of critical accounting policies;  

  the judgments and other uncertainties affecting  

  the sensitivity of reported results to changes  
  in conditions and assumptions.                  
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Our critical accounting policies
and practices include the following: (1) revenue recognition, (2) expected credit losses, (3) inventories, (4) income
taxes, (5) warranty liabilities and (6) impairment of long-lived assets. See “ Note 2 - Summary of Significant
Accounting Policies” to our consolidated financial statements for the disclosure of these accounting policies.

Critical accounting estimates

We prepare our consolidated
financial statements in accordance with U. S. GAAP. The preparation of financial statements in conformity with U. S. GAAP
requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date
of the financial statements and reported amounts of revenue and expenses during the reporting period. We continually evaluate these judgments
and estimates based on our own experience, knowledge and assessment of current business and other conditions, and our expectations regarding
the future based on available information and assumptions that we believe to be reasonable. Since the use of estimates is an integral
component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require
a higher degree of judgment than others in their application.

We consider an accounting
estimate to be critical if: (a