Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 151

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 151
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 such shareholder, regardless of whether it satisfied either of the qualification tests in subsequent years
(unless the U. S. holder makes a deemed sale election with respect to the Company ADSs or Assumed Warrants once we cease to satisfy
either of the qualification tests).

The determination of whether
we will be treated as a PFIC for the taxable year that includes the Business Combination will depend on a number of factors, including
the timing of the Business Combination and the amount of cash held by Finnovate and Scage International and its subsidiaries at the time
of the Business Combination, among others. Accordingly, there can be no assurances in this regard or any assurances that we will not
be treated as a PFIC in the taxable year that includes the Business Combination or any future taxable year. Moreover, the application
of the PFIC rules is subject to uncertainty in several respects, and there can be no assurance that the IRS will not take a contrary
position or that a court will not sustain such a challenge by the IRS.

Following the consummation
of the Business Combination, whether we or any of its subsidiaries are a PFIC for any taxable year is a factual determination that depends
on, among other things, the composition of its income and assets, and the market value of its securities. Changes in our composition,
the composition of our income or the composition of its assets may cause it to be or become a PFIC for the current or subsequent taxable years.
Whether we are treated as a PFIC for U. S. federal income tax purposes is a factual determination that must be made annually at the
close of each taxable year and, thus, is subject to significant uncertainty.

If we are or become a PFIC
during any year in which a U. S. holder holds Company ADSs or Assumed Warrants, there are three separate taxation regimes that could
apply to such U. S. holder under the PFIC rules, which are the (i) excess distribution regime (which is the default regime),
(ii) QEF regime, and (iii) mark-to-market regime. A U. S. holder who holds (actually or constructively, including
on account of holding an option to acquire stock) stock in a non-U. S. corporation during any year in which such corporation qualifies
as a PFIC is subject to U. S. federal income taxation under one of these three regimes. The effect of the PFIC rules on a U. S. holder
will depend upon which of these regimes