Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 167

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 15
Chunk 167
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 inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.

In connection with the audit
of our consolidated financial statements as of June 30, 2025 and for the fiscal year then ended, our management and our independent registered
public accounting firm identified deficiencies that represented material weaknesses in our internal control over financial reporting.
The material weaknesses identified relate to: (1) insufficient financial reporting and accounting personnel with appropriate knowledge,
skills, and experience in the application of U. S. GAAP and SEC rules to prepare consolidated financial statements and related disclosures
completely and accurately; and (2) lack of sufficient controls designed and implemented in IT environment and IT general control activities,
which mainly associated with areas of financial system segregation of logical access security, IT service organization and cyber security
for the financial systems.

We are working to remediate
the remaining material weakness and are taking steps to strengthen our internal control, specifically including: (1) hiring more qualified
accounting personnel with relevant U. S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function
and to set up a financial and system control framework; (2) implementing regular and continuous U. S. GAAP accounting and financial reporting
training programs for our accounting and financial reporting personnel; and (3) setting up the system control framework to address information
technology general controls (“ ITGC”) deficiencies. In order to maintain and improve the effectiveness of our disclosure controls
and procedures and internal controls over financial reporting, we will need to expend significant resources and provide significant management
oversight.

Attestation Report of the Registered Public
Accounting Firm

This annual report on Form
20-F does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.
Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules of the SEC where
domestic and foreign registrants that are non-accelerated filers, which we are, and “emerging growth companies,” which we
also are, are not required to provide the auditor attestation report.

Changes in Internal Control over Financial
Reporting

Other than as described above,
there were no changes in our internal controls over financial reporting that occurred during the period covered by this annual report
on Form