Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 201

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 201
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, with coverage extending for a defined
number of years or miles, whichever comes first. Customers do not have the option to purchase the warranty separately. In addition, warranty
periods provided by the Group are in line with the industry practice. Therefore, the warranty is intended to safeguard the customer against
existing defects and does not provide any incremental service to the customer. Accordingly, warranty costs are treated as a cost of fulfillment
subject to accrual, rather than a performance obligation.

  (ii)      Provision                         

The
Group provides vehicle modification services for NEVs according to customers’ requirements. The Group has identified the single
performance obligation as the customer can benefit from the contract only after the NEVs of the customer were customized upon demand.
Revenues related to modification services are recognized over the service periods according to ASC 606-10-25-27, as the promise
of modification does not create the NEV with an alternative use to the Group. The Group considers itself as the principal for transactions
that it is in control of establishing the transaction price, and it is responsible for fulfilling the promise of performing the modification.
Therefore, such revenues are reported on a gross basis.

The
Group also provides warranty for provision of vehicle modification services for a defined number of years or miles, whichever comes first.
Customers do not have the option to purchase the warranty separately, nor does the warranty provide a service in addition to assurance.
In addition, warranty periods provided by the Group are in line with the industry practice. Therefore, the Group does not consider the
promise to provide warranty assurance for Provision of vehicle modification services as a separate performance obligation.

F-16

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
 ──────────────────────────────────────────────────────

  (iii)      Revenue               

During
the year ended June 30, 2025, the Group entered into several short-term lease agreements to lease one of its vehicles to a third party,
with a daily payment of US$ 166 1,200 19,596 nil 16,290

  (iv)      Others  

From
time to time, the Group provides additional aftersales service mainly related to vehicle repairs and maintenance dependent upon customers’
demand. Revenues from such services are recognized over time based on the