Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 222

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 222
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, the Group signed the fourth settlement agreement with Shenzhen Deju, which extended the maturity date to
September 30, 2024. On October 2, 2024, the Group signed the fifth settlement agreement with Shenzhen Deju, which extended the maturity
date to October 31, 2024. On March 25, 2025, the Group signed the sixth settlement agreement with Shenzhen Deju, which extended the maturity
date to April 30, 2025. On April 24, 2025, the Group signed the seventh settlement agreement with Shenzhen Deju, which extended the maturity
date to May 30, 2025. On May 31, 2025, the Group signed the eighth settlement agreement with Shenzhen Deju, which extended the maturity
date to June 30, 2025. On August 22, 2025, Shenzhen Deju exercised the conversion option and the debt from Shenzhen Deju is converted
into 365,673 755,383

Accounting
for the debt with a conversion option in the form of warrant

The
Group determined that the above warrant issued to Shenzhen Deju is not freestanding financial instruments, which in nature is a conversion
option of the debt, as the debt must be repaid by the Group to Shenzhen Deju in full either in cash or in certain amount of Series A
Convertible Redeemable Preferred Shares converted at US$ 1.18 ASC 815-10-15-99 ASC 815

The
Group accounted for the convertible debt as a liability, which is subsequently stated at amortized cost with any difference between the
initial carrying value and the debt issuance costs using the effective interest method over the period from the issuance date to the
maturity date. The payment of interest is contingent upon the occurrence of certain conditions. The Group only accrues interest when
conditions are considered probable. The amendments on extension of maturity date was not accounted for debt extinguishment, as the cash
flow effect resulting from the changed terms on a present value basis is less than 10 percent, and the modification on the debt instrument
is not considered to be substantially different.

The
unamortized debt issuance costs of nil 1,098

F-29

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)