Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 198

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 198
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 consolidated statements of operations
and comprehensive loss.

The
Group evaluates each individual investment periodically for impairment.

For
investments where the Group has the intention to sell or it is more likely than not before recovery of the amortized cost basis, an impairment
is recognized in the consolidated statements of operations and comprehensive loss.

For
investments where the Group does not intend to sell, the Group evaluates whether a decline in fair value is due to deterioration in credit
risk. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized
through an allowance for credit losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements
of operations and comprehensive loss. Subsequent increases in fair value due to credit improvement are recognized through reversal of
the credit losses and corresponding reduction in the allowance for credit losses. Any decline in fair value that is non-credit related
is recorded in accumulated other comprehensive income or loss as a component of shareholders’ deficit.

  (n)      Deferred offering costs  

Deferred offering costs consist of underwriting, legal, accounting
and other 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-in capital 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. Immediately before the Business Combination,
the Group had capitalized deferred offering costs of US$985,586, and all the deferred offering costs were charged against shareholders’
equity upon consummation of the Business Combination on June 27, 2025.

F-14

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  SUMMARY                                     

  (o)      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