Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 24

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 24
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 interruptions, breakdowns, system failures, technology platform failures or internet
failures, which could cause the loss or corruption of data or malfunctions of software, hardware, storage and network. The continuance
of any of these events could increase the costs associated with our operations and reduce our ability to operate our businesses at their
intended capacities, thereby reducing revenues and profitability. As of the date of this annual report, we have not experienced, and
do not expect to experience, material impact by supply chain disruptions with respect to our business segments, products, lines of services,
projects and operations.

If we fail to maintain an effective system
of internal control over financial reporting, we may be unable to accurately report our financial results or prevent fraud, and investor
confidence in us and the market price of our ADSs may be adversely affected.

Prior
to the completion of the Business Combination, we had been a private company with limited accounting personnel and other resources with
which to address our internal control and procedures over financial reporting. In the course of auditing our consolidated financial statements
for the years ended June 30, 2025 and 2024, we identified two material weaknesses in our internal control over financial reporting
as of June 30, 2025 and 2024. As defined in the standards
established by the U. S. Public Company Accounting Oversight Board, a “material weakness” is a deficiency, or a combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of our company’s annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

The material weaknesses identified
relate to 1) insufficient financial reporting and accounting personnel with appropriate knowledge, skills, and experience in the application
of U. S. GAAP and SEC rules to prepare consolidated financial statements and related disclosures completely and accurately; and 2) lack
of sufficient controls designed and implement in IT environment and IT general control activities, which mainly associated with areas
of logical access security, IT service organization and cyber security for the financial systems. Neither we nor our independent registered
public accounting firm undertook a comprehensive assessment of our internal control under the Sarbanes-Oxley Act for purposes of
identifying and reporting any weakness in our internal control over financial reporting. Had we performed a formal assessment of our
internal control over financial reporting or had our independent registered public accounting firm performed an audit of our internal
control over financial reporting, additional