Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 583

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 583
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,731,915 |   |     | $ |   968,543 |   |
| Additions                                 |     |                     |   714,889 |   |     |   |   917,786 |   |
| Utilization                               |     |                     |   (25,145 | ) |     |   |   (47,797 | ) |
| Effect of change of preferential tax rate |     |                     |         — |   |     |   |     3,121 |   |
| Foreign exchange effect                   |     |                     |    (7,813 | ) |     |   |  (109,738 | ) |
| Balance at the end of the period          |     | $                   | 2,413,846 |   |     | $ | 1,731,915 |   |

According to PRC tax regulations, the PRC enterprise net operating loss can generally be carried forward for no longer than five years, and HNTE’s net operating losses can be carried forward for no longer than ten years, starting from the year subsequent to the year in which the loss was incurred. The Group will re -applyfor the HNTE certificate when the prior certificate expires in the foreseeable future. As of June 30, 2024 and 2023, the Group had net operating loss carryforwards of US$15,565,700 and US$11,799,016, respectively, which arose from the Group’s subsidiaries established in the PRC. As of June 30, 2024, net operating loss carryforwards from PRC will expire in calendar years 2026 through 2034, if not utilized. As of June 30, 2024 and 2023, the Group did not recognize any net deferred tax assets, as the Group has provided a valuation allowance of US$2,413,846 and US$1,731,915, respectively, for which it has concluded that it is more likely than not that these net operating losses would not be utilized in the future due to the Group’s history of losses. Uncertain Tax Position As of June 30, 2024 and 2023, the Group did not have any unrecognized uncertain tax positions and the Group does not believe that its unrecognized tax benefits will change over the next twelve months. For the years ended June 30, 2024 and 2023, the Group did not incur any interest and penalties related to potential underpaid income tax