Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 4

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 4
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 in
our audited financial statements for the years ended June 30, 2025 and 2024 could materially limit our ability to raise additional
funds through the issuance of equity or debt securities or otherwise. Future financial statements may include an explanatory paragraph
with respect to our ability to continue as a going concern.

We depend and expect to continue to significantly
depend on revenue generated from a limited number of vehicle models.

Our business heavily depends on the sales and success of our vehicles
currently in production. We also plan to launch two new models of energy agricultural machinery in 2025. If our product variety and release
cycles do not meet customer expectations, or if our vehicles cannot be produced on our projected timelines and cost and volume targets
in collaboration with vehicle manufacturers, our future sales will be adversely affected. As we will primarily depend on a limited number
of models for the foreseeable future, any particular model that is not well-received by the market could materially and adversely
affect our sales, and consequently, our business, results of operations and financial condition.

Manufacturing in collaboration with partners
is subject to risks.

We partner with Xuzhou Construction
Machinery Group Co., Ltd. (“ XCMG”) and C& C Trucks Co., Ltd. for the manufacturing of our trucks. Collaboration with third
parties for the manufacturing of vehicles is subject to certain operational risks that may be beyond our control. We could experience
production and delivery delays if our contract manufacturers do not meet agreed-upon timelines or experience capacity constraints. The
production volume could fall short of our expectations if our contract manufacturers encounter financial difficulties or operational
challenges. We may also have disputes with contract manufacturers. In addition, we and our brand image could be affected by adverse publicity
or public sentiment regarding our contract manufacturers, whether or not such publicity or public sentiment is related to their collaboration
with us. Furthermore, while we are involved in each step of the supply chain and manufacturing process, we rely on our contract manufacturers
to uphold our quality standards, and therefore, we cannot assure you that we will successfully maintain quality standards. If the contract
manufactures fail to maintain necessary approvals or certificates for vehicle manufacturing or for the manufacturing of specific products
or fail to obtain new approvals or certificates for our future products, we could experience product supply interruption and may involve
in disputes with contract manufacturers and/or our customers, which could have a material impact on our business.

If we are unable to renew
the agreements with our existing contract manufacturers or