Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 5

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 5
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 enter into agreements with alternative partners on acceptable terms and conditions,
we may need to significantly enhance our own production capacity. This shift brings substantial uncertainty regarding our capability
and the timetable to achieve it. Transitioning to new third-party manufacturers, or increasing our own capacity, might be more time-consuming
and costly than expected, especially ensuring that the vehicles produced meet our quality and regulatory standards.

We have a limited number of customers and
pending orders for our NEV trucks, and we cannot guarantee that non-binding memoranda of understanding and letters of intent
will be converted into actual orders.

We currently have a limited
number of customer contracts. Our non-binding memoranda of understanding and letters of intent with potential customers do
not represent assured sales and may not be converted into actual orders. In particular, we cannot ensure that these potential customers
have or will have the financial capacity to place orders or that their interest in our products will persist. In addition, we have not
received any deposits from such potential customers on certain of our orders, and they have no obligation to make purchases under
those non-binding memoranda of understanding and letters of intent. Furthermore, these potential customers may not perform as expected
and, therefore, may not have the means or market demand to convert the non-binding memoranda of understanding or letters of
intent into real orders. If we fail to convert these arrangements into binding orders or secure long-term contracts for volume sales,
our business, prospects, results of operations and financial condition may be materially and adversely affected.

Even if we secure more orders,
customers may cancel their orders for various reasons or limit their initial purchases as they assess our NEV trucks and contemplate
a broader transition to hydrogen-powered solutions. Their decision-making will depend on the safety, reliability, efficiency and quality
of our products, as well as the support and service that we offer. It will also depend on factors beyond our control, such as general
market conditions and broader trends in transportation, including fleet management, and availability and pricing of e-fuels, including
hydrogen. As a result, there is significant uncertainty concerning the demand for our products and our potential growth rate.

We may experience significant delays in
the design and delivery of trucks that we collaborated in developing, which could harm our business and prospects.

Vehicle manufacturers often
experience delays in the design, manufacture and commercial release of new products. If we delay the launch of trucks that we collaborated
in developing, our growth prospects could be adversely affected as we may fail to grow our market share.