Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 395

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 395
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 |     |     87,771 |     | —                 |     |   263,313 |
| Bank borrowings            |     |               8,421,400 |     |          — |     | —                 |     | 8,421,400 |
| Loans from related parties |     |                 130,107 |     |          — |     | —                 |     |   130,107 |

Operating lease agreements represented non -cancellableoperating leases for our office space. Other than those shown above, we did not have any other significant capital commitments, purchase commitments, long -termobligations or guarantees as of June 30, 2024. Critical Accounting Policies The critical accounting policies and judgments that we believe to have the most significant impact on our consolidated financial statements are as described below, which should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included in this prospectus. When reviewing our financial statements, you should consider: •our selection of critical accounting policies; •the judgments and other uncertainties affecting the application of such policies; •the sensitivity of reported results to changes in conditions and assumptions.

194 Our critical accounting policies and practices include the following: (1) revenue recognition, (2) expected credit losses, (3) inventories, (4) income taxes, (5) warranty liabilities and (6) impairment of long -livedassets. See “Note 2—Summary of Significant Accounting Policies” to our consolidated financial statements for the disclosure of these accounting policies. Critical Accounting Estimates We prepare our consolidated financial statements in accordance with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. We continually evaluate these judgments and estimates based on our own experience, knowledge and assessment of current business and other conditions, and our expectations regarding the future based on available information and assumptions that we believe to be reasonable. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application. We consider an accounting estimate to be critical if: (a) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (b) changes in the estimate that are