Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 228

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 228
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 S. dollars, except for share and per share data, or otherwise noted)

  14.      REDEEMABLE                 

On
January 23, 2024, Beijing Scage Future Automobile Co., Ltd. (“ Beijing Scage Future”), entered into a shareholder agreement
(“ Shareholder Agreement”) with Qingdao Guodao Yinsheng No. 3 Venture Capital Fund Partnership (L. P.) (“ Guodao”),
in which Guodao agreed to pay US$ 4,225,412 30,000,000 6 2,765,487 20,000,000 4

Redemption
right

Within
two years from the Shareholder Agreement and related documents being legally signed, Guodao has the right to choose whether to redeem
the investment in either one of the redemption mechanisms as stated below.

Redemption
Mechanisms

  (a)      Cash Redemption: When Guodao exercises its redemption right, Beijing Scage Future and/or the founder of Beijing Scage Future, Mr. Gao Chao (the “ Founder”), shall repurchase the corresponding e...  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  (b)      Share                                                                                           

For
initial recognition, on the date the Group received cash investment, the Group initially recorded the carrying amount at cash consideration.
In determining subsequent measurement, the Group first attributed noncontrolling interest share of the Beijing Scage Future’s net
loss pursuant to ASC 810-10, then adjust the noncontrolling interest to the maximum redemption amount (if higher) according to ASC 480-10-S99-3A.
The Group recognized the maximum redemption amount including responsibilities of both the Group and the Founder as Guodao can enforce
payment of the full obligation against the Beijing Scage Future according to the Shareholder Agreement.

  Mezzanine Equity – Redeemable Non-controlling Interests           Redeemable  
                                                               Non-controlling  
                                                                     Interests  
  Balance as of June 30, 2023                                               $-  
 ────────────────────────────────────────────────────────────────────────────────
  Contribution from redeemable non-controlling interests             2,765,487  
  Attribution of net loss                                              ( 7,738  
  Accretion of redeemable non-controlling interests                  1,851,388  
  Foreign exchange adjustment                                         ( 24