Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 2

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 2
---
 by issuing debt securities or through loan arrangements, which could come with high-interest payments, covenants
that restrict our business, or other unfavorable terms. We may also raise funds by issuing additional equity securities, which could
dilute our existing shareholders.

We had negative net cash flows from operating
activities in the past and have not been profitable, which may continue in the future.

We incurred net losses of US$13.1 million, US$6.0 million and
US$6.6 million for the years ended June 30, 2025, 2024 and 2023, respectively, and we have not been profitable since our inception.
In addition, we had received customer orders for 41 NEV trucks. We recorded net revenues of US$11.1 million, US$6.1 million
and US$0.4 million for the years ended June 30, 2025, 2024 and 2023, respectively. We have made significant up-front investments
in research and development, service network, and sales and marketing to establish and expand our business. We expect to continue to invest
significantly in these areas to grow our business rapidly, and these investments may not result in an increase in revenue or positive
cash flow on a timely basis or at all.

We may not be able to generate
sufficient revenues, and we may incur substantial losses for a number of reasons, including insufficient demand for our products and
services, increasing competition, challenging macroeconomic environment, and other risks discussed herein. We may also incur unforeseen
expenses, or encounter difficulties, complications, or delays in generating revenue or achieving profitability. If we fail to achieve
profitability, we may have to reduce the scale of our operations, which will impede our business growth. In addition, our continuous
operations depend on our capability to obtain sufficient external equity or debt financing. If we do not succeed in doing so, we may
need to curtail our operations, which could adversely affect our business, results of operations and financial position.

We may be unable to adequately control
the costs associated with our operations.

We will require significant
capital to develop and grow our business, including developing and commercializing our trucks, constructing fueling stations, and building
our brand. We expect to incur significant expenses, including research and development expenses, leases, sales and distribution expenses
as we build our brand and market our trucks, and general and administrative expenses as we scale our operations, which will impact