Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 193

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 193
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-controlling
interest represents the portion of the net assets of subsidiaries attributable to interests that are not owned or controlled by the Group.
The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders
of the Group. For the Group’s consolidated financial statements as of June 30, 2025 and 2024, non-controlling interests represent
the minority shareholders’ 30.5 49

  (d)      Redeemable non-controlling interests  

Redeemable
non-controlling interests represent redeemable equity interests issued by the Group’s subsidiary to certain investor, and have
been classified as mezzanine noncontrolling interests in the consolidated financial statements as these redeemable interests represent
a put option that gives investors the right to put the interest of the Group’s subsidiary for certain rate of return within the
following two years. Pursuant to ASC 480-10, the investment is currently redeemable, but not mandatorily redeemable because of the uncertainty
related to whether the holder will elect redemption. The process of adjusting non-controlling interests to its redemption value should
be performed after attribution of the subsidiary’s net income or loss pursuant to ASC 810. The carrying amount of non-controlling
interests will equal the higher of (i) its initial fair value adjusted by accumulated earnings/losses associated with the non-controlling
interest or (ii) the redemption value as of the balance sheet date. The accretions were recorded against retained earnings, or in
the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital had been exhausted,
additional charges were recorded by increasing the accumulated deficit.

  (e)      Use of estimates  

The
preparation of the consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities on the date of the
consolidated financial statements, and the reported revenues and expenses during the reported periods. Actual results could differ from
those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes
in facts and circumstances may result in revised estimates. Management bases its estimates on past experience and on various other assumptions
that are believed to be reasonable and the results of these estimates form the basis for making judgments about the carrying values of
assets and liabilities. Significant accounting estimates include, but not limited to, the provision for expected credit