Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 215

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 215
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 financial statements will not be prevented or detected on a timely basis. Finnovate’s management evaluated the effectiveness of disclosure controls and procedures as of June30, 2024, pursuant to Rule 13a -15(b) under the Exchange Act. Based upon that evaluation, Finnovate’s management concluded that, as of June30, 2024, disclosure controls and procedures were not effective due to a material weakness in Finnovate’s internal control over financial reporting of complex financial instruments, recognition of billed and unbilled professional fees, classification of related party payables and accounting for related party notes payable. In light of the material weakness described above, Finnovate’s management team has performed additional accounting and financial analyses and other post -closingprocedures. Finnovate has enhanced, and will continue to enhance, internal controls and procedures, including access to accounting literature, identification and consideration of third -partyprofessionals with whom to consult regarding complex accounting applications and implementing additional layers of reviews in the financial close process. While Finnovate processes to properly identify and evaluate the appropriate accounting technical pronouncements and other literature for all significant or unusual transactions, Finnovate plans to continue to improve these processes to ensure that the nuances of such transactions are effectively evaluated in the context of the increasingly complex accounting standards. Finnovate believes, but cannot provide any assurance that, the measures described above will remediate the material weaknesses identified and discussed above. While Finnovate continues the process to implement its plan to remediate the material weaknesses, it cannot predict the success of such plan or the aggregate costs associated therewith, and Finnovate’s assessment of the outcome of its remediation efforts cannot be made until the remediation initiatives have been completed and Finnovate has been operating without the material weaknesses for a sufficient period of time. Finnovate continues to monitor the effectiveness of its remediation efforts and the costs associated therewith, which may, individually or in the aggregate, be material, but which cannot yet be determined. Finnovate 81 can give no assurance that these measures described above will remediate the deficiencies in internal controls or that additional material weaknesses or significant deficiencies in its internal control over financial reporting will not be identified in the future. Finnovate’s failure to implement and maintain effective internal control over financial reporting could result in errors in its financial statements that may lead to a restatement of its financial statements or cause Finnovate to fail to meet its reporting obligations. Effective internal controls are necessary for Finnovate to provide reliable financial reports and prevent