Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 149

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 149
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 which gain or loss would be recognized in
the manner set forth under “ - Sale, Exchange, or Other Taxable Disposition of Company ADSs and Assumed Warrants.”In
such event, a U. S. holder could be deemed to have surrendered warrants having an aggregate fair market value equal to the exercise
price for the total number of warrants to be exercised. Subject to the discussion below under “ - Passive Foreign Investment
Company Rules”, the U. S. holder would recognize capital gain or loss with respect to the Assumed Warrants deemed surrendered
in an amount generally equal to the difference between (i) the fair market value of the Company ADSs that would have been received
in a regular exercise of the Assumed Warrants deemed surrendered, net of the aggregate exercise price of such Assumed Warrants and (ii) the
U. S. holder’s tax basis in such Assumed Warrants. In this case, a U. S. holder’s aggregate tax basis in the Company
ADSs received would equal the sum of (i) such U. S. holder’s tax basis in the Assumed Warrants deemed exercised and (ii) the
aggregate exercise price of such Assumed Warrants. A U. S. holder’s holding period for the Company ADSs received in such case
generally would commence on the date following the date of exercise (or possibly the date of exercise) of the Assumed Warrants and will
not include the period during which the U. S. holder held the Assumed Warrants.

Due to the absence of authority
on the U. S. federal income tax treatment of a cashless exercise of warrants, including when a U. S. holder’s holding period
would commence with respect to the Ordinary Share received, there can be no assurance regarding which, if any, of the alternative tax
consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, U. S. holders should
consult their tax advisors regarding the tax consequences of a cashless exercise of Assumed Warrants.

Possible Effect of the Change in the Assumed
Warrant Conversion Ratio

In some circumstances, the
conversion ratio of the Assumed Warrants is subject to adjustment. For U. S. federal income tax purposes, U. S. holders of the
Assumed Warrants will be treated as having received a constructive distribution, resulting in ordinary income to the extent of the increase
of the U. S. holder’s proportion