Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 347

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 347
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 our component sources whenever possible, we nevertheless rely on a single source for many of the components used in our vehicles like other automobile companies. The prices for our raw materials and components are subject to fluctuations, which can impact our business and operating results. To mitigate price risks on the procurement side, we have entered into framework and pricing agreements with our suppliers to manage price volatility. As of the date of this proxy statement/prospectus, we have not experienced, and do not expect to experience, (1) higher costs due to constrained capacity or increased commodity prices or challenges sourcing materials, (2) surges or declines in consumer demand for which we are unable to adequately adjust our supply; (3) inability to supply products at competitive prices due to export restrictions, sanctions, tariffs trade barriers or political or trade tensions among countries and (4) cybersecurity attacks in our supply chain. 159 Quality control We are dedicated to delivering the best -qualityproducts and services to our customers, and we believe a well -roundedquality control system is crucial for ensuring the delivery of high -qualityproducts and services. As such, we establish annual quality management objectives related to vehicle acceptance rate, process performance rate and user satisfaction level. We take a holistic quality control approach, starting from the early stage of product development. During this phase, product prototypes undergo rigorous testing and validation. This commitment extends throughout user servicing and logistics. We have implemented various quality control policies and procedures to maintain high standards across all aspects of our business, including, among others: • Software development test. In the development of vehicle control systems, we employ software development test to assess the software and hardware components. Equipped with a full set of vehicle simulation test devices, this process allows us to monitor and calculate energy consumption, hydrogen -electricityconversion and vehicle control. • Vehicle road test. Before delivering our vehicles, we conduct thorough tests within the production facility using low -speeddynamic testing. This evaluation assesses the basic functions and performance of the vehicles. We also conduct tests outside the production facility to simulate complex road environments. • Backstage diagnosis system. All our vehicles are equipped with a backstage diagnosis system, which performs certain automated diagnosis tasks and generates reports that are submitted to us. • Product certification.We typically engage third -partyinspection institutions to verify our products, ensuring they meet safety, performance, and legal and regulatory requirements. This validation allows us to obtain permission to bring our products to market. Furthermore, we have implemented a quality management process concerning our vehicle manufacturers. We regularly inspect and calibrate our production