Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 112

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 112
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 due to the following reasons.

General and
administrative expenses

Our general and administrative
expenses increased by 32.0% from US$2.9 million for the year ended June 30, 2023 to US$3.9 million for the year ended
June 30, 2024, primarily attributable to: (1) an increase of US$0.7 million in professional service fees, such as operation
advisory fees and legal fees for listing; (2) an increase of US$0.3 million in bad debts expenses based on expected credit
losses assessment; and (3) an increase of US$0.1 million in travelling and lodging expenses in business development as a result
of business expansion; partially offset by a decrease of US$0.1 million in employee compensation as a result of personnel optimization.

Research and
development expenses

Our research and development
expenses decreased by 26.1% from US$2.3 million for the year ended June 30, 2023 to US$1.7 million for the year ended
June 30, 2024, primarily attributable to: (1) a decrease of US$0.5 million in employee compensation as a result of personnel
optimization; and (2) a decrease of US$0.3 million in material and testing fee for research purposes due to the decrease of
vehicle models in development; partially offset by a slight increase of US$0.3 million in other expenses related to R& D function
such as depreciation and amortization expenses, technical service fees and travelling and lodging expenses to enhance operation efficiency
related to R& D functions.

Selling and
marketing expenses

Our selling and marketing
expenses decreased by 43.0% from US$1.1 million for the year ended June 30, 2023 to US$0.6 million for the year ended
June 30, 2024, primarily due to: (1) a decrease of US$0.2 million in employee compensation as a result of personnel optimization;
and (2) a decrease of US$0.2 million in marketing expenses for brand promotion and customer relationship development as we
focused more on the bulk order ofQ-trucksfor the year 2024.

Impairment
loss of long-lived assets

Our impairment loss of long-lived
assets were US$0.2 million and nil for the years ended June 30, 2024 and 2023