Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 32

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 32
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 US$0.5 million due to better inventories turnover
as a result of the increased sales; and an increase in amounts due to related parties of US$0.1 million due to the increased operating
expenses payable to related parties.

Our net cash used in operating
activities was US$4.9 million for the fiscal year ended June 30, 2023, which was primarily attributable to a net loss of US$6.6 million,
as adjusted for (1) certain non-cash items, primarily including depreciation and amortization of US$0.5 million, amortization
of right-of-use asset of US$0.2 million and inventory write-down of US$0.2 million; and (2) changes in working capital
that negatively affected the cash flow from operating activities, primarily including: an increase in inventories of US$1.7 million,
mainly due to the increased level of inventory stock for positive forecast of upcoming sales; a decrease in lease liabilities of US$0.2 million,
due to increase of lease payments; partially offset by (3) changes in working capital that positively affected the cash flow from operating
activities, primarily including an increase in accrued expenses and other current liabilities of US$1.7 million due to the increase
in accrued employee payroll and welfare benefits as the result of business expansion; and an increase in contract liabilities of US$1.2 million
due to the increases in the contracts signed and advances received from customers.

Investing activities

Our net cash used in investing
activities was US$20.6 million for the six months ended December 31, 2024, primarily due to purchase of long-term investments of US$20.0
million, loans to third parties of US$0.7 million, and partially offset by collection of loans to third parties of US$0.1 million.

Our net cash used in investing
activities was US$1.6 million for the fiscal year ended June 30, 2024, primarily due to loans to third parties of US$1.8 million.

Our net cash used in investing
activities was US$0.2 million for the fiscal year ended June 30, 2023, primarily due to purchase of property and equipment of
US$0.2 million.

Financing activities

Our net cash provided by
financing activities was US$21.0 million for the six months ended December 31, 2024, primarily due to (1) proceeds from