Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 7

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 7
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 to commercializing our trucks, our business will be negatively impacted.

The trucking industry has
traditionally been characterized by significant entry barriers, including substantial capital requirements, investment costs of designing
vehicles, long lead times to bring vehicles to market from the concept and design stage, specialized design and development expertise,
regulatory requirements, brand establishment, and setting up sales, fueling and service stations. If we fail to surmount these barriers,
our ability to grow our business will be harmed, and our business, prospects, results of operations and financial condition will be materially
and adversely affected.

Our future growth is dependent upon customers’
willingness to adopt NEV trucks, including trucks powered by e-fuel. If the market for heavy-duty commercial NEVs does not develop or
develops slower than we expect, our business, prospects, results of operations and financial condition will be adversely affected.

The market for heavy-duty
commercial NEVs, especially those powered by hydrogen fuel cells, is relatively new and untested and is expected to experience technology
innovation, intense price competition among numerous competitors, evolving regulations and industry standards, and unpredictable customer
preferences. Our growth is highly dependent upon customers’ shift towards alternative fuel and electric trucks.

Factors that may influence
the adoption of NEV trucks include but are not limited to the following, most of which are beyond our control:

  public perception                                                                          

  general concerns                                                                                

  the premium in                                                                                 

  the total cost                                                                                 

  the decline of                                                                              

  concerns over the                                                                              

improvements
in fuel efficiency of traditional internal combustion engines;

  access to maintenance                                                         

  the availability                                                                                   

  volatility in the                            

  the availability                                                                            

  the availability                                                                        

  corporate sustainability  

  macroeconomic factors.  

If, in weighing these factors,
our potential customers determine that there is not a compelling business justification for purchasing NEV trucks in general or those
designed and sold by us, then the market for such vehicles may not develop as we expect or may develop more slowly than we expect, which
would materially and adversely affect our business, prospects, results of operations and financial condition.

Performance issues with trucks that we
collaborated in developing could adversely affect our sales and reputation.

Potential design or manufacturing
defects in trucks that we collaborated in developing may prevent them from meeting performance standards or necessitate repairs. We cannot
guarantee that we will be able to detect and fix all the defects in the trucks’ hardware or software prior to