Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 3

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 3
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 our
profitability. Our ability to become profitable in the future will not only depend on our ability to market our vehicles and other products
and services successfully but also to control our costs. If we are unable to cost-efficiently design, manufacture, market, sell, distribute
and service trucks that we have collaborated in developing and provide other services, or cost-efficiently participate in the above activities,
our margins, profitability and prospects will be materially and adversely affected.

There is substantial doubt about our ability
to continue as a going concern.

Our audited financial statements
for the years ended June 30, 2025 and 2024 contain an explanatory paragraph regarding substantial doubt about our ability to continue
as a going concern based on our net loss, negative cash flow used in operations and our working capital level. In addition, we have incurred,
and expect to continue to incur, significant costs and negative cash flows during our business expansion. These conditions raised substantial
doubts about our ability to continue as a going concern. Our audited consolidated financial statements for the years ended June 30,
2025 and 2024 do not include any adjustments that might result from the outcome of this uncertainty.

We intend to pursue private
financing of debt or equity. There can be no assurances, however, that the current operating plan will be achieved or that additional
funding will be available on terms acceptable to us, or at all. Our future capital requirements depend on many factors including our
growth rate, the continuing market acceptance of our offerings, the timing and extent of spending in research and development our efforts
to strengthen our services abilities, the expansion of sales and marketing activities, and the expansion and penetration of our business
into different geographies and markets. We may, however, need additional cash resources in the future if we experience changes in business
conditions or other developments, or if we find and wish to pursue opportunities for investment, acquisition, capital expenditure or
similar actions. If we determine that our cash requirements exceed the amount of cash and cash equivalents we have on hand at the time,
we may seek to issue equity or debt securities or obtain credit facilities. The issuance and sale of additional equity would result in
further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in
operating covenants that would restrict our operations. Our obligation to bear credit risk for certain financing transactions we facilitate
may also strain our operating cash flow.

Moreover, the going concern opinion contained