Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 29

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 29
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 Resources

In assessing our liquidity,
we monitor and analyze our cash on-hand. To date, we have financed our working capital requirements from cash flow from operations, equity
financings and capital contributions from our existing shareholders.

We incurred net loss of US$4.0
million, US$6.0 million and US$6.6 million in the six months ended December 31, 2024, and in the fiscal years ended June 30, 2024 and
2023, respectively. Net cash used in operating activities was approximately US$1.7 million, US$6.2 million and US$4.9 million in the six
months ended December 31, 2024, and in the fiscal years ended June 30, 2024 and 2023, respectively. Our working capital deficit was approximately
US$7.3 million, US$4.1 million and US$1.2 million as of December 31, 2024, June 30, 2024 and 2023, respectively. We had cash
and restricted cash of US$0.7 million, US$2.0 million and US$1.1 million as of December 31, 2024, June 30, 2024 and 2023, respectively.
The accumulated deficit amounted to US$31.2 million, US$27.3 million and US$19.6 million as of December 31, 2024, June 30, 2024 and 2023,
respectively. We have incurred, and expect to continue to incur, significant costs and negative cash flows during our business expansion.

These conditions raised substantial
doubts about our ability to continue as a going concern. Our liquidity is based on our ability to generate cash from operating activities,
obtain capital financing from equity interest investors and borrow funds from financial institutions. Our ability to continue as a going
concern is dependent on management’s ability to successfully execute business plan, which includes generating revenue while controlling
operating cost and expenses to generate positive operating cash flows and obtaining funds from outside financing sources to generate positive
financing cash flows. We intend to pursue private financing of debt or equity. There can be no assurances, however, that the current operating
plan will be achieved or that additional funding will be available on terms acceptable to us, or at all. If we are unable to obtain sufficient
cash flows and funding, we may have to delay our development efforts and limit