Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 25

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 25
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 to a decrease of US$0.1 million in material fee for research purposes due to the decrease of vehicle
models in development.

Selling and marketing expenses

Our selling and marketing
expenses decreased by 56.9% from US$0.5 million for the six months ended December 31, 2023 to US$0.2 million for the six months ended
December 31, 2023, primarily due to (1) a decrease of US$0.2 million in marketing expenses for brand promotion and customer relationship
development; and (2) a decrease of US$0.1 million in employee compensation, depreciation expense and other expenses.

Impairment loss of long-lived assets

Our impairment loss of long-lived
assets was US$49,180 and nil for the six months ended December 31, 2024 and 2023, 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 measured impairment by comparing the carrying value of the long-lived assets to the market price.

Other (expenses)/income, net

Our total other (expenses)/income,
net changed from other income, net of US$35 thousand for the six months ended December 31, 2023 to other expenses net of US$0.1 million
for the six months ended December 31, 2024.

Our other income, net decreased
from US$0.2 million for the six months ended December 31, 2023 to US$39 thousand for the six months ended December 31, 2024, primarily
attributable to the decrease in government subsidy and gain from disposal of property and equipment.

Our interest expenses, net
mainly consist of interest income and interest expense, bank charges and exchange gain or loss. Our interest expenses, net slightly decreased
from US$185 thousand for the six months ended December 31, 2023 to US$141 thousand for the six months ended December 31, 2024 primarily
due to a decrease in weighted average interest rates.

Net loss

As a result of the foregoing,
our net loss increased by 45.3% from US$2.8 million for the six months ended December 31, 2023 to US$4.0 million for the six months ended
December 31, 2024.

Comparison of Fiscal Years ended June 30,
2024 and 202