Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 578

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 578
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 no accounting impact upon the adoption of ASU 2020 -06in connection with the issuance of Series Angel Convertible Redeemable Preferred Shares and Series Pre -AConvertible Redeemable Preferred Shares. For Series A Convertible Redeemable Preferred Shares, there is no need to consider the accounting impact of beneficial conversion features with the adoption of ASU 2020 -06. F-38

SCAGE INTERNATIONAL LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 13.REDEEMABLE NON-CONTROLLING INTERESTS On January 23, 2024, Beijing Scage Future Automobile Co., Ltd. (“Beijing Scage Future”), entered into a shareholder agreement (“Shareholder Agreement”) with Qingdao Guodao Yinsheng No. 3 Venture Capital Fund Partnership (L.P.) (“Guodao”), in which Guodao will inject US$4,225,412 (RMB30,000,000) for 6% equity interests of Beijing Scage Future. On April 2, 2024, Beijing Scage Future received US$2,765,487 (RMB20,000,000) from Guodao. On May 20, 2024, the Industrial and Commercial Registration process for the transfer of the 4% equity interests, corresponding to the investment amount received, has been completed, and thereafter, Guodao has become a non -controllinginterest shareholder of Beijing Scage Future. The investment from Guodao is also subject to the below redemption terms: Redemption right Within two years from the Shareholder Agreement and related documents being legally signed, Guodao has the right to choose whether to redeem the investment in either one of the redemption mechanisms as stated below. Redemption Mechanisms (a)Cash Redemption: When Guodao exercises its redemption right, Beijing Scage Future and/or the founder of Beijing Scage Future, Mr. Gao Chao, shall repurchase the corresponding equity interests invested by Guodao in cash. The redemption price consists of two portions: (A) the Company is responsible for the principal of the initial investment with 15% of simple interest per annum accrued started from the remittance date; (B) the Founder is responsible for the percentage of equity interests (i.e. 4%) that Guodao invested in *the equity value of Beijing Scage Future -theredemption amount that the Company is responsible for. The equity value of Beijing Scage Future shall be no less than RMB833