Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 35

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 35
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offer or continue to offer securities to investors, which could cause the value of our securities to significantly decline or become
worthless.

Our securities will be delisted and will
be prohibited from trading in the over-the-counter market under the Holding Foreign Companies Accountable Act, if the PCAOB
is unable to inspect or investigate completely auditors located in China for two consecutive years. The delisting of our securities,
or the threat of being delisted, may materially and adversely affect the value of your investment.

Pursuant to the Holding Foreign Companies Accountable Act (the “ HFCAA”),
if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspections
by the PCAOB for two consecutive years, the SEC will prohibit our securities from being traded on a national securities exchange
or in the over-the-counter trading market in the United States. Our auditor, HTL International, LLC, is an independent registered
accounting firm based in Houston, Texas, and is subject to be inspected by the PCAOB on a regular basis. On December 2, 2021, the
SEC adopted final amendments to its rules implementing the HFCAA, which include requirements to disclose information, including the auditor
name and location, the percentage of shares of the issuer owned by governmental entities, whether governmental entities in the applicable
foreign jurisdiction with respect to the auditor has a controlling financial interest with respect to the issuer, the name of each official
of the Chinese Communist Party who is a member of the board of the issuer, and whether the articles of incorporation of the issuer contains
any charter of the Chinese Communist Party. These amendments also establish procedures the SEC will follow in identifying issuers and
prohibiting trading by certain issuers under the HFCAA. In March 2022, the SEC issued its first “ Conclusive list of issuers
identified under the HFCAA” indicating that those companies are now formally subject to the delisting provisions if they remain
on the list for three consecutive years.

In August 2022, the
PCAOB, the CSRC and the Ministry of Finance of the PRC signed the Statement of Protocol, which establishes a specific and accountable
framework for the PCAOB to conduct inspections and investigations of PCAOB-governed accounting firms in mainland China and Hong Kong.
On December 15, 2022, the PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB-registered
public accounting firms headquartered in mainland