Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 118

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 118
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 loans
to related parties of US$0.6 million.

Our net cash provided by
financing activities was US$6.2 million for the year ended June 30, 2023, primarily due to (1) proceeds from short-term bank
loans of US$2.4 million; (2) proceeds from issuance of preferred shares, net of issuance costs of US$3.7 million; and
(3) loans provided by related parties of US$0.6 million; partially offset by repayments of short-term bank loans of US$0.5 million.

Off-Balance Sheet Commitments and Arrangements

We have not entered into
any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties.
We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that
are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets
transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable
interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing,
hedging or product development services with us.

Inflation

Since our inception, inflation
in China has not materially affected our results of operations. According to the National Bureau of Statistics of China, the year-over-year
percent changes in the consumer price index as of June 30, 2025 remained relatively stable at a decrease of 0.1% compared to in the consumer
price index as of June 30, 2024. Although we have not been materially affected by inflation in the past, we may be affected if China
experiences higher rates of inflation in the future.

Contingencies

From time to time, we may
become involved in litigation relating to claims arising in the ordinary course of the business. There are no claims or actions pending
or threatened against us that, if adversely determined, would in our judgment have a material adverse effect on us.

Capital Expenditures

Our capital expenditures
were mainly used for the acquisition of property and equipment which consisted primarily of mold and tooling as well as research and
development equipment. We recorded capital expenditures of US$13,490, US$51,292 and US$166,170 for the years ended June 30, 2025