Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 920

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 920
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 to the present value, using an appropriate discount rate. Total outstanding debt, if any, was then subtracted from the MVIC to arrive at the value of equity. Projected Income Statements Management provided financial projections for the years ending June 30, 2024 through June 30, 2027. We assessed the reasonability of these financial projections by reviewing the projected financial performance of Scage’s competitors, as available, for 2023 through 2025. Ultimately, we relied upon Management’s projections for the valuation. The following chart presents unit sales by product throughout the forecast period. Prices for each product are presented in the following table. Prices were projected to remain constant throughout the forecast. Annex D-1-15 Based on these assumptions, we projected revenue to grow from ¥778.1 million in FY2024 to ¥13,384.1 million in FY2027. The following chart presents Scage’s projected revenue throughout the forecast. Cost of goods sold (COGS) varied by product and was projected to decrease as a percentage of revenue over time. The following table presents the projected gross margins for FY2027. Scage’s gross margin was projected to be 17.2% in FY2024, growing each year thereafter to 22.2% in FY2027. The following chart presents the projected gross profit and margin. Annex D-1-16 Operating expenses were segregated into four categories: (1) taxes & fees, (2) sales cost, (3) general & administrative, (4) research & development. Operating expenses were projected based on a percentage of revenue. In aggregate, operating expenses were projected to decrease from 36.4% of revenue in FY2024, to 11.6% of revenue in FY2027. These projections resulted in an EBITDA margin of -19.2% in FY2024, increasing to 10.6% in FY2027. This is consistent with industry data reviewed and the guideline companies. Projected EBITDA and EBITDA margins are presented in the following chart. Projected revenue is presented in Schedule B.1 and projected expenses in Schedule B.2. Scage’s projected income statements are presented in Schedule B.3. Projected Balance Sheets Capital expenditures were projected to be ¥50 million in FY2024, ¥75 million in FY2025, ¥100 million in FY2026, and ¥155 million in FY2027. Working capital was projected based on a review of industry ratios. Working