Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 203

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 203
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 to a customer as either a receivable or a contract
asset. A receivable is a right to consideration that is unconditional as compared to a contract asset which is a right to consideration
that is conditional upon factors other than the passage of time. The Group recognizes accounts receivable in its consolidated balance
sheets when it performs a service in advance of receiving consideration and has the unconditional right to receive consideration. A contract
asset is recorded when the Group has transferred services to the customer before payment is received or is due, and the Group’s
right to consideration is conditional on future performance or other factors in the contract. As of June 30, 2025 and 2024, the Group’s
contract assets were US$ 528,868 nil

Contract liabilities are
recognized if the Group receives consideration prior to satisfying the performance obligations, which include customer advances. Contract
liabilities of US$1,204,300as of June 30, 2023 were recognized as revenues for the year ended June 30, 2024. Contract liabilities of
US$564,705as of June 30, 2024 were recognized as revenues for the year ended June 30, 2025. Contract liabilities of US$192,898as of
June 30, 2025 were expected to be recognized as revenues in the following twelve months.

F-17

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

  SUMMARY                                     

  (q)      Employee benefits  

The Company’s subsidiaries
in the PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical,
housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the
local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees.
The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the accompanying
consolidated statements of operations and comprehensive loss amounted to US$285,565, US$213,528and US$869,554for the years ended June
30, 2025, 2024 and 2023, respectively.

  (r)      Warranty liabilities  

The
Group provided a manufacturer’s standard warranty on all vehicles and components sold. The Group accrued a warranty reserve for