Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 119

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 119
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, 2024
and 2023, respectively. We expect our capital expenditures to continue to be significant in the foreseeable future as we expand our business,
and that our level of capital expenditures will be significantly affected by user demand for our products and services. We have limited
historical data on the demand for our products and services as a result of our limited operating history. Therefore, our future capital
requirements may be uncertain and actual capital requirements may be different from those we currently anticipate. To the extent the
proceeds of securities we have issued and cash flows from our business activities are insufficient to fund future capital requirements,
we may need to seek equity or debt financing. We will continue to make capital expenditures to support the expected growth of our business.

Contractual Obligations

The following table sets
forth our contractual obligations as of June 30, 2025:

                                  Payment due by schedule                                                                                           
                                  Less than 1                                 1 – 3 year                     More than 3      Total                 
                                  US$                                                                                                               
  Operating leases                                               132,168                      -                                            132,168  
  Bank borrowings                                              9,632,029                      -                                          9,632,029  
  Loans from a related party                                     678,003                      2,019,233                                  2,697,236  

Operating lease agreements
represented non-cancellable operating leases for our office space. Other than those shown above, we did not have any other significant
capital commitments, purchase commitments, long-term obligations or guarantees as of June 30, 2025.

Critical Accounting Policies

The critical accounting
policies and judgments that we believe to have the most significant impact on our consolidated financial statements are as described
below, which should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included
in this annual report. When reviewing our financial statements, you should consider:

  our                                         

  the                                                                            

  the                                                                        
  sensitivity of reported results to changes in conditions and assumptions.  
 ─────────────────────────────────────────────────────────────────────────────

Our critical accounting
policies and practices include the following: (1) revenue recognition, (2) expected credit losses, (3) inventories, (4) income
taxes, (5) warranty liabilities and (6) impairment of long-lived assets. See “ Note 2 - Summary of Significant
Accounting Policies” to our consolidated financial statements for the disclosure of these accounting policies.

Critical Accounting Estimates