Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 36

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 36
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 China and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021
determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland
China and Hong Kong. However, whether the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered
public accounting firms headquartered in mainland China and Hong Kong is subject to uncertainties and depends on a number of factors
out of our and our auditor’s control. The PCAOB continues to demand complete access in mainland China and Hong Kong moving forward
and will continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated that it will
act immediately to consider the need to issue new determinations with the HFCAA if needed. If the PCAOB is unable to inspect and investigate
completely registered public accounting firms located in China in 2024 and beyond, or if we fail to, among others, meet the PCAOB’s
requirements, including retaining a registered public accounting firm that the PCAOB determines it is able to inspect and investigate
completely, we will be identified as a “ Commission-identified Issuer,” and upon two consecutive years of non-inspection under
the HFCAA, our securities will be delisted from the Nasdaq Stock Market and our securities will not be permitted for trading over the
counter either. If our securities are prohibited from trading in the United States, we cannot assure you that we will be able to
list on a non-U. S. exchange or that a market for our shares will develop outside of the United States. Such a prohibition
would substantially impair your ability to sell or purchase our securities when you wish to do so, and the risk and uncertainty associated
with delisting would have a negative impact on the price of our securities. Moreover, the HFCAA or other efforts to increase U. S. regulatory
access to audit information could cause investor uncertainty for affected issuers, including us, and the market price of our securities
could be adversely affected. Such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or
at all, which would have a material adverse effect on our business, financial condition and results of operations.

If there is a severe or prolonged downturn
in the global or Chinese economy, our business, financial condition and results of operations could be materially and adversely affected.

COVID-19 has had a severe
and negative impact on the global economy, and its long-term impact