Company: SCAG
Filing Date: 2025-05-29
Form Type: 424B3
Source: 0001213900-25-048544
Chunk: 4

Company: Scage Future
Filing Date: 2025-05-29
Form: 424B3
Chunk 4
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.1 million
in employee compensation, depreciation expense and other expenses.

Research and development expenses. Research and development expenses decreased by approximately 8.4% from approximately US$0.9 million in the
six months ended December 31, 2023 to approximately US$0.8 million in the six months ended December 31, 2024, primarily due to a decrease
of US$0.1 million in the material costs related to research and development.

General and administrative expenses. General and administrative expenses increased by 2.6% from US$2.0 million for the six months ended December
31, 2023 to US$2.1 million for the six months ended December 31, 2024, primarily due to (1) an increase of approximately US$0.2 million
in professional service fees, including advisory fees and legal fees related to the Business Combination, and (2) an increase of approximately
US$0.1 million in employee compensation, rental expenses and depreciation expense, partially offset by a decrease of US$0.2 million in
bad debt expense as a result of reversal of provision for expected credit losses.

Net Loss

As
a result of the foregoing, Scage International recorded net loss of approximately US$4.0 million in the six months ended December 31,
2024, compared to net loss of approximately US$2.8 million in the six months ended December 31, 2023.

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Total Assets and Total Liabilities

Scage International had total
assets of approximately US$33.8 million and total liabilities of approximately US$21.4 million as of December 31, 2024, as compared to
US$10.6 million and US$12.8 million, respectively, as of June 30, 2024.

Liquidity and Capital Resources

Scage
International had cash and restricted cash of approximately US$0.7 million as of December 31, 2024, compared to US$2.0 million as
of June 30, 2024. The decrease was primarily due to the significant costs and negative cash flows we incurred during our business expansion
in the six months ended December 31, 2024.

There
is no assurance that Scage International's estimated preliminary results for the six months ended December 31, 2024 will be indicative
of its financial results for future interim periods. Further, Scage International