Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 14

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 14
---
. Substantial increases in the prices for our raw materials would increase our operating costs and could reduce our margins if the
increased costs cannot be recouped through increased NEV truck prices. We cannot assure you that we will be able to recoup the increasing
costs of raw materials by increasing vehicle prices.

We have limited insurance coverage, which
could expose us to significant costs and business disruption.

We have limited liability
insurance coverage for our products, services, and business operations. A successful claim against us, regardless of whether due to injuries
suffered by our product users, could materially and adversely affect our business, reputation, results of operations and financial condition.
In addition, we do not have business disruption insurance. Any business disruption event could result in substantial costs to us and
the diversion of our resources.

We may not succeed in continuing to establish,
maintain, and strengthen our brand, and our brand and reputation could be harmed by negative publicity with respect to us, our directors,
officers, employees, shareholders, peers, business partners, or our industry in general.

Our business and prospects
are affected by our ability to develop, maintain, and strengthen our brand. If we fail to do so we may lose the opportunity to build
business relationships with critical customers. Promoting and positioning our brand will depend significantly on our ability to provide
innovative and high-quality products and services, in which we have limited experience. In addition, we expect that our ability to develop,
maintain, and strengthen the brand will depend heavily on the success of our branding efforts. We expect to market our brand through
media, word-of-mouth, trade shows and advertising. Such efforts may not achieve the desired results. If we do not develop and maintain
a strong brand, our business, prospects, results of operations and financial condition could be materially and adversely affected.

Our reputation and brand
are vulnerable to many threats that can be difficult or impossible to predict, control and costly or impossible to remediate. From time
to time, our products and our business operations in general are reviewed by media or other third parties. Any negative reviews or reviews
that compare us unfavorably to competitors could adversely affect public perception about our products and services. Negative publicity
about us, such as alleged misconduct, unethical business practices or other improper activities, or rumors relating to our business,
directors, officers, employees, shareholders, affiliates or actual or potential business partners can harm our reputation, business,
and results of operations, even if they