Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 146

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 146
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 can exercise primary                                                                                     

Ownership and Disposition of Company ADSs
and Assumed Warrants by U. S. Holders

Distributions on Company ADSs

This section is subject to
further discussion under “ - Passive Foreign Investment Company Rules” below.

Distributions paid by us
out of current or accumulated earnings and profits (as determined for U. S. federal income tax purposes) generally will be taxable
to a U. S. holder as dividend income. Distributions in excess of current and accumulated earnings and profits will be treated as
a non-taxable return of capital to the extent of the U. S. holder’s basis in the Company ADSs and thereafter as capital
gain. However, we do not intend to maintain calculations of its earnings and profits in accordance with U. S. federal income tax
accounting principles. U. S. holders should therefore assume that any distribution by us with respect to our shares will be treated
as ordinary dividend income. Such dividends will not be eligible for the dividends-received deduction allowed to U. S. corporations
with respect to dividends received from other U. S. corporations. U. S. holders should consult their own tax advisers with respect
to the appropriate U. S. federal income tax treatment of any distribution received from our Company.

Dividends received by non-corporate U. S. holders
(including individuals) from a “qualified foreign corporation” may be eligible for reduced rates of taxation, provided that
certain holding period requirements and other conditions are satisfied. For these purposes, a non-U. S. corporation will be treated
as a qualified foreign corporation if the Company ADSs are readily tradable on an established securities market in the United States.
There can be no assurance that Company ADSs will be considered “readily tradable” on an established securities market in
future years. Non-corporate U. S. holders that do not meet a minimum holding period requirement during which they are not
protected from the risk of loss or that elect to treat the dividend income as “investment income” pursuant to Section 163(d)(4) of
the Code (dealing with the deduction for investment interest expense) will not be eligible for the reduced rates of taxation regardless
of our status as a qualified foreign corporation. In addition, the rate reduction will not apply to dividends if the recipient of a dividend
is obligated to make related payments with respect to the positions in substantially similar or related property. This disallowance applies