Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 554

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 554
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 expenses incurred through the reporting date that are directly related to an anticipated offering and that will be charged as a reduction against additional paid -incapital upon the completion of the offering. Should the offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations. (n)Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Group assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all of the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The Group classifies a lease as a financing lease at lease commencement when the lease meets any one of the criteria: a)The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. b)The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

F-20 SCAGE INTERNATIONAL LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) c)The lease term is for a major part of the remaining economic life of the underlying asset. d)The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. e)The underlying asset is of such a specialized nature that it is expected to have no alternative use to the Group at the end of the lease term. When none of the criteria are met, the Group classifies a lease as an operating lease. Group as a lessee When the Group acts as a lessee, leases with an initial term of 12 months or less are short -termlease and not recognized as operating lease right -of -useassets and operating lease liabilities on the consolidated balance sheet. The Group recognizes lease expense for short -termleases on a straight -linebasis over the lease term. The right -of -useasset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct