Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 131

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 131
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 our existing shareholders. We had negative net cash flows from operating activities in the past and have not been profitable, which may continue in the future. We incurred net losses of US$6.0million and US$6.6 million for the fiscal years ended June 30, 2024 and 2023, respectively, and we have not been profitable since our inception. In addition, we had net cash used in operating activities of US$6.2million and US$4.9 million for the fiscal years ended June 30, 2024 and 2023, respectively. We have made significant up -frontinvestments in research and development, service network, and sales and marketing to establish and expand our business. We expect to continue to invest significantly in these areas to grow our business rapidly, and these investments may not result in an increase in revenue or positive cash flow on a timely basis or at all. We may not be able to generate sufficient revenues, and we may incur substantial losses for a number of reasons, including insufficient demand for our products and services, increasing competition, challenging macroeconomic environment, and other risks discussed herein. We may also incur unforeseen expenses, or encounter difficulties, complications, or delays in generating revenue or achieving profitability. If we fail to achieve profitability, we may have to reduce the scale of our operations, which will impede our business growth. In addition, our continuous operations depend on our capability to obtain sufficient external equity or debt financing. If we do not succeed in doing so, we may need to curtail our operations, which could adversely affect our business, results of operations and financial position. 37 We may be unable to adequately control the costs associated with our operations. We will require significant capital to develop and grow our business, including developing and commercializing our trucks, constructing fueling stations, and building our brand. We expect to incur significant expenses, including research and development expenses, leases, sales and distribution expenses as we build our brand and market our trucks, and general and administrative expenses as we scale our operations, which will impact our profitability. Our ability to become profitable in the future will not only depend on our ability to market our vehicles and other products and services successfully but also to control our costs. If we are unable to cost -efficientlydesign, manufacture, market, sell, distribute and service trucks that we have collaborated in developing and provide other services, or cost -efficientlyparticipate in the above activities, our margins, profitability and prospects will be materially and adversely