Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 152

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 152
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 applies to such U. S. holder. However, dividends paid by a PFIC are generally not eligible
for the lower rates of taxation applicable to qualified dividend income (“ QDI”) under any of the foregoing regimes.

Excess Distribution Regime. If
you do not make a QEF election or a mark-to-market election, as described below, you will be subject to the default “excess
distribution regime” under the PFIC rules with respect to (i) any gain realized on a sale or other disposition (including
a pledge) of your Company ADSs or Assumed Warrants, and (ii) any “excess distribution” you receive on your Company ADSs
(generally, any distributions in excess of 125% of the average of the annual distributions on Company ADSs during the preceding three years
or your holding period, whichever is shorter). Generally, under this excess distribution regime:

  the gain or excess distribution will be allocated ratably                     

  the amount allocated to the current taxable year and any                                                    

  the amount allocated to each of the other taxable years                                                                                

The tax liability for amounts
allocated to years prior to the year of disposition or excess distribution will be payable generally without regard to offsets from
deductions, losses and expenses. In addition, gains (but not losses) realized on the sale of your Company ADSs or Assumed Warrants cannot
be treated as capital gains, even if you hold the shares as capital assets. Further, no portion of any distribution will be treated as
QDI.

For purposes of the foregoing
rules, the holding period of Company ADSs received upon an exercise of Assumed Warrants will generally include the U. S. holder’s
holding period in the warrant.

QEF Regime. If
we are a PFIC, a U. S. holder of Company ADSs (but not Assumed Warrants) may avoid taxation under the excess distribution rules described
above by making a QEF election. However, a U. S. holder may make a QEF election with respect to its Company ADSs only if we provide
U. S. holders on an annual basis with certain financial information specified under applicable U. S. Treasury Regulations. Because
we currently do not intend to provide U. S. holders with such information on an annual basis, U. S. holders generally would not
be able to make a QEF election with respect to the Company ADSs.

Mark-to-Market Regime. Alternatively,