Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 13

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 13
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 us or a product liability claim brought against us in excess of our available insurance may
have a material adverse effect on our business.

Developments in alternative technology
improvements in the internal combustion engine may adversely affect the demand for trucks that we collaborated in developing.

Significant developments
in alternative technologies, such as advanced diesel, ethanol, or compressed natural gas or improvements in the fuel economy of the internal
combustion engine, may materially and adversely affect our business and prospects in ways we do not currently anticipate. Any failure
by us to develop new or enhanced technologies or processes, or to react to changes in existing technologies, could materially delay our
development and introduction of new and enhanced NEV trucks in collaboration with vehicle manufacturers, which could result in the loss
of competitiveness of trucks that we collaborated in developing, decreased revenue and a loss of market share to competitors. Our research
and development efforts may not be sufficient to adapt to changes in NEV technology. As technologies change, we plan to upgrade or adapt
trucks that we collaborated in developing and introduce new models in order to continue to provide trucks with the latest technology.

Increases in costs, disruption of supply
or shortage of raw materials, particularly lithium-ion battery cells, could harm our business.

We may experience increases
in the cost or a sustained interruption in the supply or shortage of raw materials. Any such increase or supply interruption could materially
negatively impact our business, prospects, results of operations and financial condition. We, together with vehicle manufacturers that
we collaborate with, use various raw materials including aluminum, steel, carbon fiber, non-ferrous metals (such as copper), and cobalt.
The prices for these raw materials fluctuate depending on market conditions and global demand, and could adversely affect our business,
results of operations and financial condition. For instance, we are exposed to multiple risks relating to price fluctuations for lithium-ion
cells. These risks include:

  the inability or                                                                               

  disruption in the                                                                        

  an increase in                                                         
  the cost of raw materials, such as cobalt, used in lithium-ion cells.  
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Any disruption in the supply
of battery cells or fuel cells used in our hydrogen-powered trucks could temporarily disrupt the production of trucks that we collaborated
in developing until a different supplier in collaboration with the vehicle manufacturers is fully qualified. Furthermore, fluctuations
or shortages in petroleum and other economic conditions may cause us to experience significant increases in freight charges and raw material
costs