Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 150

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 150
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ate interest in the our current or accumulated earnings and profits if certain adjustments
in the conversion ratio occur (particularly an adjustment to reflect a taxable dividend to holders of the Company ADSs) to increase the
proportionate interest of the U. S. holder of an Assumed Warrant in the fully diluted Company ADSs, whether or not the U. S. holder
ever exercises the Assumed Warrant. Generally, a U. S. holder’s tax basis in an Assumed Warrant will be increased by the amount
of any such constructive distribution. The rules with respect to such adjustments are complex and U. S. holders should consult their
own tax advisers regarding the applicability of such rules.

Passive Foreign Investment Company Rules

Generally. The
treatment of U. S. holders of the Company ADSs and Assumed Warrants could be materially different from that described above if we
are treated as a PFIC for U. S. federal income tax purposes. A PFIC is any non-U. S. corporation with respect to which either:
(i) 75% or more of the gross income for a taxable year constitutes passive income for purposes of the PFIC rules (the “ PFIC
income test”), or (ii) more than 50% of such foreign corporation’s assets in any taxable year (generally based on the
quarterly average of the value of its assets during such year) is attributable to assets, including cash, that produce passive income
or are held for the production of passive income (the “ PFIC asset test”). Passive income generally includes dividends, interest,
certain royalties and rents, annuities, net gains from the sale or exchange of property producing such income and net foreign currency
gains. The determination of whether a foreign corporation is a PFIC is based upon the composition of such foreign corporation’s
income and assets (including, among others, its proportionate share of the income and assets of any other corporation in which it owns,
directly or indirectly, 25% (by value) of the stock), and the nature of such non-U. S. corporation’s activities. A separate
determination must be made after the close of each taxable year as to whether a non-U. S. corporation was a PFIC for that year. Once
a non-U. S. corporation qualifies as a PFIC it is, with respect to a shareholder during the time it qualifies as a PFIC, always treated
as a PFIC with respect to