Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 114

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 114
---
 and 2024, respectively. We had cash and restricted
cash of US$0.1 million and US$2.0 million as of June 30, 2025 and 2024, respectively. The accumulated deficit amounted to US$40.2
million and US$27.3 million as of June 30, 2025 and 2024, respectively. We have incurred, and expect to continue to incur, significant
costs and negative cash flows during our business expansion.

These conditions raised
substantial doubts about our ability to continue as a going concern. Our liquidity is based on our ability to generate cash from operating
activities, obtain capital financing from equity interest investors and borrow funds from financial institutions. Our ability to continue
as a going concern is dependent on management’s ability to successfully execute business plan, which includes generating revenue
while controlling operating cost and expenses to generate positive operating cash flows and obtaining funds from outside financing sources
to generate positive financing cash flows. We intend to pursue private financing of debt or equity. There can be no assurances, however,
that the current operating plan will be achieved or that additional funding will be available on terms acceptable to us, or at all. If
we are unable to obtain sufficient cash flows and funding, we may have to delay our development efforts and limit activities, which could
adversely affect our business and financial performance.

Our future capital requirements
depend on many factors including our growth rate, the continuing market acceptance of our offerings, the timing and extent of spending
in research and development our efforts to strengthen our services abilities, the expansion of sales and marketing activities, and the
expansion and penetration of our business into different geographies and markets. We may, however, need additional cash resources in
the future if we experience changes in business conditions or other developments, or if we find and wish to pursue opportunities for
investment, acquisition, capital expenditure or similar actions. If we determine that our cash requirements exceed the amount of cash
and cash equivalents we have on hand at the time, we may seek to issue equity or debt securities or obtain credit facilities. The issuance
and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased
fixed obligations and could result in operating covenants that would restrict our operations. Our obligation to bear credit risk for
certain financing transactions we facilitate may also strain our operating cash flow.

Cash Flows

The following table sets
forth a summary