Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 113

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 113
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, respectively, as we identified events and changes
in circumstances that indicated the carrying amount of an asset may no longer be recoverable in the review of long-lived assets impairment,
and measured impairment by comparing the carrying value of the long-lived assets to the market price.

Other (loss)/income, net

Our total other (loss)/income,
net changed from other income, net of US$0.1 million for the year ended June 30, 2023 to other loss, net of US$0.1 million
for the year ended June 30, 2024.

Our other income, net slightly
increased from US$253 thousand for the year ended June 30, 2023 to US$264 thousand for the year ended June 30, 2024, primarily
attributable to the increase of loss from disposal of property and equipment.

Our interest expenses, net
mainly consist of interest income and interest expense, bank charges and exchange gain or loss. Our interest expenses, net increased
from US$0.2 million for the year ended June 30, 2023 to US$0.4 million for the year ended June 30, 2024, primarily
due to the increase in interest expenses as a result of the addition of short-term loans for the year ended June 30, 2024.

Net loss

As a result of the foregoing,
our net loss decreased by 9.6% from US$6.6 million for the year ended June 30, 2023 to US$6.0 million for the year ended
June 30, 2024.

Liquidity and Capital Resources

In assessing our liquidity,
we monitor and analyze our cash on-hand. To date, we have financed our working capital requirements from cash flow from operations, equity
financings and capital contributions from our existing shareholders.

We incurred net loss of US$13.1 million, US$6.0 million and US$6.6
million in the years ended June 30, 2025, 2024 and 2023, respectively. Net cash used in operating activities was approximately US$5.9
million, US$6.2 million and US$4.9 million for the years ended June 30, 2025, 2024 and 2023, respectively. Our working capital deficit
was approximately US$20.4 million and US$4.1 million as of June 30, 2025