Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 551

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 551
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 outside of PRC is US$, while the functional currency of the PRC entities is Renminbi (“RMB”) as determined based on the criteria of ASC 830, “Foreign Currency Matters”. The consolidated statements of operations and comprehensive loss and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive loss included in consolidated statements of changes in shareholders’ deficit. Gains and losses from foreign currency transactions are included in the consolidated statements of operations and comprehensive loss. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements:

|                                                 |     | As of June 30, |     |        |
| Balance sheet items, except for equity accounts |     |           2024 |     |   2023 |
| US$ against RMB                                 |     |         7.2672 |     | 7.2513 |

F-18

SCAGE INTERNATIONAL LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

| Items in the statements of operations and comprehensive loss, and statements of 
 cash flows                                                                      |     | For the years ended 
            June 30, |     |        |
| 2024                                                                            |     |                2023 |     |        |
| US$ against RMB                                                                 |     |              7.2248 |     | 6.9536 |

(g)Cash Cash consists of bank deposits. As of June 30, 2024 and 2023, the Group maintains substantially all the bank accounts in the PRC. (h)Restricted cash Restricted cash represents bank deposits pledged for bank loans. Restricted cash were US$6,880 and US$903,286 as of June 30, 2024 and 2023, respectively. (i)Accounts receivable, net Accounts receivable are