Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 6

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 6
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 Furthermore, we rely on third-party
contract manufacturers and suppliers for the manufacture of our trucks and the provision and development of many of the key components
and materials used in our vehicles. If our contract manufacturers and suppliers experience any delays in providing us with necessary
services and products, we could experience delays in delivering on our timelines. Any of the foregoing could materially and adversely
affect our brand, business, prospects, results of operations and financial condition.

Our plan to build a network of hydrogen
fueling stations will require significant financial investments and management resources.

Our plan to build a network
of hydrogen fueling stations will require significant financial investments and management resources. This planned construction of hydrogen
stations is essential to convincing customers to pay a higher premium for trucks that we collaborated in developing. We have very limited
experience in the provision of refueling solutions to users, and rolling out these services comes with challenges, including the strategic
placement of stations, potential capacity imbalances in some areas, security risks, risk of vehicle damage during charging or refueling,
and the possibility of customers not embracing our services. We will need to ensure compliance with any regulatory requirements applicable
in jurisdictions where our fueling stations will be located, including obtaining required permits and land use rights, which could be
time-consuming and costly. There is also a risk that government support in certain areas may be discontinued. If we are unable to build,
or experience delays in building, our network of hydrogen fueling stations, we may be unable to fulfill our fueling commitments to customers,
leading to reduced truck sales and adversely affecting our business, prospects, results of operations and financial condition.

We may not be able to produce or source
the hydrogen needed to establish our planned hydrogen fueling stations.

As a key component of our
business model, we intend to establish a network of hydrogen fueling stations. We plan to produce the hydrogen needed for these stations
on-site through electrolysis. Should we face technological or financial challenges in producing the hydrogen, it could jeopardize the
establishment of these stations and reduce the appeal of trucks that we collaborated in developing. Additionally, if we still proceed
with the stations without in-house hydrogen production, we may need to sell hydrogen at a loss to maintain our commitments. We believe
that this hydrogen incentive will be a significant driver for purchases of trucks that we collaborated in developing, and therefore,
any setbacks in setting up the hydrogen fueling stations as envisioned would materially and adversely affect our business.

If we cannot successfully overcome the
barriers