Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 116

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 116
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 to the increased professional service fees payable associated
with the closing of Business Combination in June, 2025 and an increase in accounts payable of US$2.5 million.

Our net cash used in operating
activities was US$6.2 million for the year ended June 30, 2024, which was primarily attributable to a net loss of US$6.0 million,
as adjusted for (1) certain non-cash and non-operating items, primarily including inventory write-down of US$0.9 million,
depreciation of property and equipment of US$0.5 million and provision of credit losses of US$0.3 million; and (2) changes
in working capital that negatively affected the cash flow from operating activities, primarily including an increase in accounts receivable
of US$2.0 million mainly due to the increased sales of NEVs; a decrease in contract liabilities of US$0.6 million due to the
decrease of advances received from customers; a decrease in accounts payable of US$0.2 million due to timely payments for purchase
of inventories; and a decrease in operating lease liabilities of US$0.2 million due to the increase of lease payments; partially
offset by (3) changes in working capital that positively affected the cash flow from operating activities, primarily including a decrease
in inventories of US$0.5 million due to better inventories turnover as a result of the increased sales; and an increase in amounts
due to related parties of US$0.1 million due to the increased operating expenses payable to related parties.

Our net cash used in operating
activities was US$4.9 million for the year ended June 30, 2023, which was primarily attributable to a net loss of US$6.6 million,
as adjusted for (1) certain non-cash and non-operating items, primarily including depreciation and amortization of US$0.5 million,
amortization of right-of-use asset of US$0.2 million and inventory write-down of US$0.2 million; and (2) changes
in working capital that negatively affected the cash flow from operating activities, primarily including: an increase in inventories
of US$1.7 million, mainly due to the increased level of inventory stock for positive forecast of upcoming sales; a decrease in lease
liabilities of US$0.2 million, due to increase of lease payments; partially offset by (3) changes in working capital that positively