Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 22

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 22
---
 personal injury or fines or be forced to
close or temporarily cease the operations of relevant constructions, any of which could have a material adverse effect on our business,
results of operations and financial condition.

The unavailability, reduction or elimination
of government and economic subsidies could have a material adverse effect on our business, prospects, results of operations and financial
condition.

Any reduction, elimination
or discriminatory application of government subsidies and economic incentives because of policy changes, the reduced need for such subsidies
and incentives due to the perceived success of NEVs or other reasons may result in the diminished competitiveness of the alternative
fuel and NEV industry generally or our NEV trucks in particular. While certain tax credits and other incentives for NEV production, alternative
fuel and electric vehicles or high and new tech enterprises have been available in the past, there is no guarantee these programs will
be available in the future. If current government subsidies are not available in the future, our financial position could be harmed.

We may be subject to risks associated with
autonomous driving technology.

Trucks that we collaborated
in developing will be designed with connectivity for future installation of an autonomous hardware suite and we plan to partner with
a third-party software provider in the future to implement autonomous capabilities. However, we cannot guarantee that we will be able
to identify a third party to provide the necessary hardware and software to enable driverless Level 4 or Level 5 autonomy in an acceptable
timeframe, on terms satisfactory to us, or at all. Autonomous driving technologies are subject to risks and there have been accidents
and fatalities associated with such technologies. The safety of such technologies depends in part on user interaction and users, as well
as other drivers on the roadways, may not be accustomed to using or adapting to such technologies. To the extent accidents associated
with our autonomous driving systems occur, we could be subject to liability, negative publicity, government scrutiny and further regulation.
Any of the foregoing could materially and adversely affect our results of operations, financial condition and growth prospects.

An occurrence of natural disasters, widespread
health epidemics or other outbreaks, such as the outbreak of COVID-19, could have a material adverse effect on our business.

Our business could be materially
and adversely affected by natural disasters, such as snowstorms, earthquakes, fires or floods, the outbreak of a widespread health epidemic
or other events, such as wars, acts of terrorism, environmental accidents, power shortages or communication interruptions. The occurrence
of such a disaster or prolonged outbreak of an epidemic illness