Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 109

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 109
---
 expenses increased
by 98.1% from US$6.4 million for the year ended June 30, 2024 to US$12.7 million for the year ended June 30, 2025,
primarily due to the following reasons.

General and
administrative expenses

Our general and administrative
expenses increased by 177.2% from US$3.9 million for the year ended June 30, 2024 to US$10.7 million for the year ended
June 30, 2025, primarily attributable to: (1) an increase of US$6.9 million in professional service fees, including advisory
fees and legal fees incurred associated with the closing of the Business Combination in June 2025; and (2) an increase of US$0.2 million
in employee compensation related to listing bonus; partially offset by a decrease of US$0.3 million in bad debts expenses as a result
of recovery of prior years’ receivables.

Research and
development expenses

Our research and development
expenses decreased by 9.0% from US$1.7 million for the year ended June 30, 2024 to US$1.5 million for the year ended June 30,
2025, primarily attributable to a decrease of US$0.2 million in other expenses related to R& D function such as depreciation
and amortization expenses and rental expenses due to the streamlining of associated assets related to R& D functions; partially offset
by a slight increase of US$0.1 million in employee compensation.

Selling and
marketing expenses

Our selling and marketing
expenses decreased by 38.0% from US$0.6 million for the year ended June 30, 2024 to US$0.4 million for the year ended
June 30, 2025, primarily due to a decrease of US$0.2 million in marketing expenses for brand promotion and customer relationship
development as we focused more on the existing orders for the year ended June 30, 2025.

Impairment
loss of long-lived assets

Our impairment loss of long-lived
assets were US$46,185 and US$0.2 million for the years ended June 30, 2025 and 2024, respectively, as we identified events
and changes in circumstances that indicated the carrying amount of an asset may no longer be recoverable in the review of long-lived
assets impairment, and