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

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 20
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 ownership of such intellectual property. If we fail in prosecuting or defending any such claims, in addition to paying monetary
damages, we may lose valuable intellectual property rights. Even if we are successful in prosecuting or defending against such claims,
litigation could result in substantial costs and be a distraction to our management and scientific personnel.

We face various challenges and risks in
connection with our expansion into overseas markets.

As we plan to explore overseas
market opportunities and collaborate with local strategic partners, we will face risks associated with expanding into markets in which
we have limited or no experience. We may be unable to attract a sufficient number of customers and business partners, fail to anticipate
competitive conditions or face difficulties in operating effectively in these new markets. The expansion of our global and cross-border
businesses will also expose us to risks inherent in operating businesses globally, including, but not limited to:

  inability to recruit                                                                             

  lack of acceptance                     

  disruptions in     

  investigations                                                                                

  challenges and                                                                               

  trade barriers,                                                                               

  differing and potentially  

  increased and conflicting            
  regulatory compliance requirements;  
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  adaption to different  

  challenges caused                                

the impact of widespread
health epidemics or other outbreaks, and natural disasters;

  increased costs                                                                            

  availability and                                                               

  exchange rate fluctuations.  
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As we expand further into
new regions and markets, these risks could intensify, and efforts we make to expand our overseas businesses and operations may not be
successful. Failure to expand our overseas businesses and operations could materially and adversely affect our business, results of operations
and financial condition.

Our research and development efforts may
not yield the expected results.

Technological innovation is
critical to our success, and we strategically develop most of the key technologies in-house, such as the vehicle control system, the electronic
steering system, and the hydrogen production technology. We have been investing heavily in our research and development efforts. As of
June 30, 2025, we had assembled a strong team of 39 in-house research and development personnel with years of industry
experience in their respective fields. For the years ended June 30, 2025, 2024 and 2023, we incurred research and development expenses
of US$1.5 million, US$1.7 million and US$2.3 million, respectively, accounting for 12.2%, 26.5% and