Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 553

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 553
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 -movingitems and makes provisions as necessary to properly reflect inventory value. Inventory write -downsof US$894,005 and US$161,495 were recorded for the years ended June 30, 2024 and 2023, respectively.

F-19

SCAGE INTERNATIONAL LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (k)Property and equipment, net Property and equipment are stated at cost less residual value part, accumulated depreciation and impairment, if any, and depreciated on a straight -linebasis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows:

| Category                        |     | Estimated useful lives                         |
| Vehicles                        |     | 4 years                                        |
| Machinery and equipment         |     | 5 – 10 years                                   |
| Office and electronic equipment |     | 3 – 5 years                                    |
| Leasehold improvements          |     | Shorter of 3 years or the remaining lease term |
| Software                        |     | 2 years                                        |

Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements of operations and comprehensive loss. (l)Impairment of long-lived assets The Group reviews its long -livedassets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long -livedassets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the market approach. For the years ended June 30, 2024 and 2023, there were US$200,841 and nil impairment of long -livedassets, respectively. (m)Deferred offering costs Deferred offering costs consist of underwriting, legal, accounting and other