Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 398

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 398
---
 primarily of property and equipment, and right -of-useassets related to operating leases. We review long -livedassets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, we measure impairment by comparing the carrying value of the long -livedassets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, we would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the market approach. An undiscounted cash flow methodology requires the estimation of a wide range of factors including but not limited to: (i) forecasting future earnings and cash flows, and (ii) determining the forecast horizon that appropriately reflect the lifespan of the assets group in support of future cash generating activities. These estimations require significant judgment and include making assumptions such as sales growth rates, our ability to control costs, the successful implementation of initiatives designed to enhance sales and improve inventory management, gross profit estimates, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, working capital requirements, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. If the sum of the expected undiscounted cash flow is less than the carrying amount of the long -livedassets, we would then determine that an impairment loss should be recognized, which is the excess of carrying amount over the fair value of the long -livedassets, using the market approach to determine the fair value of the long -livedassets. Quantitative and Qualitative Disclosures about Market Risk Credit risk Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. We manage credit risk through in -houseresearch and analysis of the worldwide economy and the underlying obligors and transaction structures. We consider many factors in assessing the collectability of our receivables, such as the age of the amounts due, the customer’s payment history, credit -worthinessand other specific circumstances related to the accounts. 196 Interest rate risk We are exposed to interest rate risk on our interest -bearingassets and liabilities. As part of our asset and liability risk management, we review and take appropriate steps to manage our interest rate