Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 148

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 148
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 disposition, a U. S. holder’s
ability to claim a foreign tax credit for such non-U. S. tax is subject to various limitations and restrictions. U. S. holders
should consult their tax advisors regarding the ability to claim a foreign tax credit.

Exercise or Lapse of an Assumed Warrant

A U. S. holder generally
will not recognize gain or loss upon the acquisition of an Ordinary Share on the exercise of an Assumed Warrant for cash. A U. S. holder’s
initial tax basis in its Company ADSs received upon exercise of the Assumed Warrant generally would be an amount equal to the sum of
the U. S. holder’s tax basis in Assumed Warrant exercised therefor and the exercise price. The U. S. holder’s holding
period for an Ordinary Share received upon exercise of the Assumed Warrant will begin on the date following the date of exercise (or
possibly the date of exercise) of the Assumed Warrant and will not include the period during which the U. S. holder held the Assumed
Warrant. If an Assumed Warrant is allowed to lapse unexercised, a U. S. holder generally will recognize a capital loss equal to such
holder’s tax basis in the Assumed Warrant.

The tax consequences of a
cashless exercise of an Assumed Warrant are not clear under current tax law. Subject to the PFIC rules discussed under “ - Passive
Foreign Investment Company Rules” below, a cashless exercise may be tax-deferred, either because the exercise is not a gain realization
event or because the exercise is treated as a recapitalization for U. S. federal income tax purposes. In either situation, a U. S. holder’s
basis in the Company ADSs received would equal the holder’s basis in the Assumed Warrants exercised therefor. If the cashless exercise
were treated as not being a gain realization event, a U. S. holder’s holding period in the Company ADSs would be treated as
commencing on the date following the date of exercise (or possibly the date of exercise) of the Assumed Warrants. If the cashless exercise
were treated as a recapitalization, the holding period of the Company ADSs would include the holding period of the Assumed Warrants exercised
therefor.

It is also possible that
a cashless exercise of an Assumed Warrant could be treated in part as a taxable exchange in