Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 97

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4
Chunk 97
---
 June 30, 2025, we leased three properties in Nanjing and Beijing for office space and
an exhibit and storage center, with an aggregate floor area of 3,900.3 square meters.

Insurance

Pursuant to PRC regulations,
we provide social insurance including pension insurance, unemployment insurance, work-related injury insurance and medical insurance
for our employees based in China. We do not maintain business liability or interruption insurance or key-man insurance to cover
our operations in China, which, we believe, is consistent with the customary industry practice in China.

Legal Proceedings

On June 26, 2025,
the Company entered into two Promissory Note Agreements with EarlyBirdCapital, Inc. (“ EBC”) for an aggregate principal amount
of $2,518,750, to convert overdue service fees payable to EBC into two convertible debt instruments. Under the first Promissory Note
Agreement, the principal balance of $1,509,375, together with interest accruing at 8% per annum, is due and payable on June 26, 2026.
Under the second Promissory Note Agreement, the principal balance of $1,009,375 is payable in two equal installments on September 26,
2025 and December 26, 2025, together with interest accruing at 8% per annum. On September 26, 2025, the first installment under the second
Promissory Note Agreement became due in the amount of $504,685.50 plus interest. On October 20, 2025, the Company received a letter from
EBC’s counsel stating that the failure to make payment of the first installment constituted an “ Event of Default” under
the second Promissory Note Agreement. As a result, the outstanding principal amount of $1,009,375 bears interest at a default rate of
15% per annum from September 26, 2025 until full repayment. The letter further stated that EBC has retained counsel to take such action
as necessary to effect collection, and in the event payment is not made on or before October 31, 2025, including the commencement of
legal proceedings to seek damages.

We may from time to time be subject to various legal or administrative
claims and proceedings arising in the ordinary course of our business. Except as otherwise disclosed herein, we are currently not a party
to any material legal or administrative proceedings.

C. Organizational Structure

The following diagram depicts
a