Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 38

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 38
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 404 of the Sarbanes-Oxley Act requires that we
include a report from management on the effectiveness of our internal control over financial reporting in our annual report on Form 20-F
beginning with our annual report for the fiscal year ended June 30, 2025.

As a company with less than
US$1.235 billion in revenue for its last fiscal year, PubCo qualifies as an “emerging growth company” pursuant to the
JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable
generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 of the
Sarbanes-Oxley Act of 2002 in the assessment of the emerging growth company’s internal control over financial reporting.
Once we cease to be an “emerging growth company” as such term is defined in the JOBS Act, our independent registered public
accounting firm must attest to and report on the effectiveness of our internal control over financial reporting.

Contingencies

From time to time, we may
become involved in litigation relating to claims arising in the ordinary course of the business. There are no claims or actions pending
or threatened against us that, if adversely determined, would in our judgment have a material adverse effect on us.

Capital Expenditures

Our capital expenditures
were mainly used for the acquisition of property and equipment which consisted primarily of mold and tooling as well as research and development
equipment. We recorded capital expenditures of US$5,436, US$51,292 and US$166,170 in the six months ended December 31, 2024, and in the
fiscal years ended June 30, 2024 and 2023, respectively. We expect our capital expenditures to continue to be significant in the foreseeable
future as we expand our business, and that our level of capital expenditures will be significantly affected by user demand for our products
and services. We have limited historical data on the demand for our products and services as a result of our limited operating history.
Therefore, our future capital requirements may be uncertain and actual capital requirements may be different from those we currently anticipate.
To the extent the proceeds of securities we have issued and cash flows from our business activities are insufficient to fund future capital
requirements, we may need to seek equity or debt financing. We will continue to make capital expenditures to support the expected growth
of our business.

Contractual Obligations