Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 153

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 153
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a U. S. holder of Company ADSs (but not Assumed Warrants) may also avoid taxation under the excess distribution rules by making a
mark-to-market election. The mark-to-market election is available only for “marketable stock,” which is stock that
is regularly traded on a qualified exchange or other market, as defined in applicable U. S. Treasury Regulations. The Company ADSs,
which are expected to be listed on the Nasdaq, are expected to qualify as marketable stock for purposes of the PFIC rules, but there
can be no assurance that they will be “regularly traded” for purposes of these rules. If a U. S. holder makes a valid
mark-to-market election with respect to its Company ADSs, such U. S. holder will include as ordinary income each year, the excess,
if any, of the fair market value of the Company ADSs at the end of the taxable year over the U. S. holders adjusted basis in the
Company ADSs. Such U. S. holder will also be allowed to take an ordinary loss in respect of the excess, if any, of such holder’s
adjusted basis in the Company ADSs over the fair market value of such Company ADSs at the end of the taxable year (but only to the extent
of the net amount of previously included income as a result of the mark-to-market election). The U. S. holder’s basis
in the Company ADSs will be adjusted to reflect any such income or loss amounts. Any gain that is recognized on the sale or other taxable
disposition of Company ADSs would be ordinary income and any loss would be an ordinary loss to the extent of the net amount of previously
included income as a result of the mark-to-market election and, thereafter, a capital loss. A mark-to-market election cannot
be made for any lower-tier PFICs. U. S. holders should consult their tax advisers regarding the application of the PFIC rules
to their indirect ownership of shares in any lower-tier PFICs.

PFIC Reporting Requirements. A
U. S. holder who owns, or who is treated as owning, PFIC stock during any taxable year in which we are classified as a PFIC may be
required to file IRS Form 8621. U. S. holders of Company ADSs and Assumed Warrants should consult their tax advisors regarding
the requirement to file IRS Form 8621 and the potential application of the PFIC regime.

Additional Reporting