Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 209

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 209
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 short-term maturity of these instruments.

F-20

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.)  
 ──────────────────────────────────────────────────────

Fair
value measurement on a recurring basis

The
Group measures its equity investment with readily determinable fair value at its quoted price in active markets. Derivative liability
is measured at fair value using unobservable inputs and are classified as Level 3 in the fair value hierarchy.

The
following table presents the fair value hierarchy for the Group’s assets and liabilities that are measured and recorded at fair
value on a recurring basis:

                                                  Fair value measurement at reporting                                  
                                                  Quoted                                                               
  Assets                                                                                                               
  Long-term Investment                                                                                                 
  Equity securities – Matrix      15,278,602                                                  -            15,278,602  
  Equity securities                5,057,723                                                  -            5,057,723   
  Total                           20,336,325                                                  -            20,336,325  
  Liabilities                                                                                                          
  Derivative Liability               676,890                                                  676,890      -           
  Total                              676,890                                                  676,890      -           

(i)
Fair value measurement on long term investment

For
equity securities without readily determinable fair value at its quoted price in active markets, as a practical expedient, the Group
uses NAV or its equivalent to measure the fair value of its fund investments which the Group does not have the ability to exercise significant
influence. NAV is primarily determined based on information provided by external fund administrators. The Group’s investments valued
at NAV as a practical expedient are private equity funds.

(ii)
Fair value measurement on derivative liability

The
Group identifies derivative instruments arising from the embedded conversion option of debt from Early Bird Capital, Inc (Note 12). The
fair value of the derivative liability is considered a Level 3 valuation and is determined using the binomial valuation model. As of
June 30, 2025, the fair value of the derivative liability was $ 676,890 The changes for Level 3 items measured at fair value on a recurring
basis using significant unobservable inputs are as follows:

                                          Amount  
  Fair value as of June 26, 2025      $1,