Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 947

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 947
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 6-months ended December 31, 2023. Scage reported cost of goods sold of ¥4.2 million in FY2022, growing to ¥16.2 million in the 6-months ended December 31, 2023. Scage reported a gross profit of ¥7.3 million in the 6-months ended December 31, 2023. Scage’s 6-months ended December 31, 2023 operating expenses consisted of ¥4.0 million in sales costs, ¥12.2 million in general & administrative costs, and ¥7.2 million in research & development. Historical Balance Sheet As of December 31, 2023, Scage reported ¥67.9 million in total assets, ¥81.2 million in total liabilities, and -¥13.3 million in total equity. Scage’s current assets exceeded its current liabilities, excluding cash and debt, by ¥21.7 million as of December 31, 2023. Scage’s total debt was ¥59.8 million as of that date. Annex D-2-14 Appendix D: Valuation Methodology There are three conceptually distinct methodologies that can be applied to determine the fair market value of a business or asset: (a) the income approach, (b) the market approach and (c) the cost approach. Each of these generally accepted valuation methodologies is considered in the appraisal process and are more or less relevant given the nature of the business and the observable data used to apply the method. Valuation Approaches Income Approach The income approach quantifies the present value of anticipated future income generated by a business or an asset. Forecasts of future income require analyses of variables that influence income, such as revenues, expenses, and taxes. One form of the income approach, the discounted cash flow (DCF) analysis, defines future economic income as net cash flow and takes into account not only the profit-generating abilities of a business but also the investment in capital equipment and working capital required to sustain the projected net cash flow. The forecasted net cash flow is then discounted to present value using an appropriate rate of return or discount rate. The income approach is unique in its ability to account for the specific contribution to the overall value of various factors of production. Market Approach The market approach considers the implied pricing in third-party transactions of comparable businesses or assets. Transactions are analyzed in order to identify pricing patterns or trends that can be used to infer value on the subject business or asset. Adjustments are