Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 207

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 207
---
 the warrants are freestanding financial instruments pursuant
to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification
under ASC 815, including whether the warrants are indexed to the Group’s own Ordinary Shares and whether the warrant holders could
potentially require “net cash settlement” in a circumstance outside of the Group’s control, among other conditions for
equity classification. This assessment, which requires the use of professional judgment, is conducted at the time warrant issuance and
as of each subsequent balance sheet date while the warrants are outstanding.

For issued or modified warrants
that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in
capital at the time of issuance. For issued or modified warrants that do not meet all of the criteria for equity classification, the warrants
are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Currently, the
Group accounts for its outstanding warrants as equity-classified instruments.

F-19

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

  SUMMARY                                     

Diluted
loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary
equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the
year. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of the preferred shares and convertible debts,
using the if-converted method, and shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent
shares are not included in the denominator of the diluted loss per share calculation when inclusion of such share would be anti-dilutive.

  (aa)      Segment    
            reporting  
 ───────────────────────

ASC
280, “ Segment Reporting”, establishes standards for companies to report in their financial statements information about operating
segments, products, services, geographic areas, and major customers. Based on the criteria established by ASC 280, the Group’s
chief operating decision maker (the “ CODM”) has been identified as the Chief Executive Officer, who regularly reviews entity-wide
operating results, especially consolidated revenues, gross margin and pretax loss, when making decisions about allocating resources and
assessing