Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 435

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 435
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 ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ equity section of the balance sheet. Immediately upon the closing of the IPO, we recognized the accretion from initial book value to redemption amount. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid -incapital and accumulated deficit. Net Income Per Ordinary Share We comply with accounting and disclosure requirements of ASC 260. Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding during the period. We have two classes of shares, redeemable ordinary shares and non -redeemableordinary shares. Our redeemable ordinary shares are comprised of Class A shares sold in the Finnovate IPO. Our non -redeemableshares are comprised of Class A shares held by EBC and Class B shares purchased by the Sponsor. Earnings and losses are shared pro rata between the two classes of shares. Our statement of operations applies the two -classmethod in calculating net income (loss) per share. Basic and diluted net income (loss) per share for redeemable ordinary shares and non -redeemableordinary shares is calculated by dividing net income (loss), allocated proportionally to each class of ordinary shares, attributable to us by the weighted average number of shares of redeemable and non -redeemableordinary shares outstanding. The calculation of diluted income (loss) per ordinary share does not consider the effect of the warrants issued in connection with the IPO since exercise of the warrants is contingent upon the occurrence of future events and the inclusion of such rights would be anti -dilutive. Accretion of the carrying value of Class A ordinary shares to redemption value is excluded from net income (loss) per redeemable share because the redemption value approximates fair value. As a result, diluted income per share is the same as basic income (loss) per share for the period presented. Recent Accounting Standards In August 2020, the FASB issued ASU 2020 -06. The update simplifies the accounting for convertible instruments by removing certain separation models in ASU 470 -20for convertible instruments and introducing other changes. As a result of ASU 2020 -06, more convertible debt instruments will be accounted for as a single liability measured at its amortized cost and more convertible preference shares will be accounted for as a single -equityinstrument measured at its historical cost, as long as no features require bifurcation and