Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 197

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 197
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Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an
asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived
assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition.
If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment
loss, which is the excess of carrying amount over the fair value of the assets, using the market approach. For the years ended June 30,
2025, 2024 and 2023, there were US$ 46,185 200,841 nil

  (m)      Long-term investments  

The
Group’s long-term investments are equity securities.

For
investments that 1) are equity instruments in legal form, 2) lack a substantive redemption right, and 3) meet the definition of securities
under ASC 320-10-20, those investments are accounted for as equity securities in accordance with Investments - Equity Securities
(Topic 321).

Those
equity securities do not have readily determinable fair value pursuant to ASC 321-10-20 as their prices are not publicly available on
a registered exchange, a comparable foreign market, or for mutual funds/structures with published values. For equity securities qualified
for net asset value (“ NAV”) practical expedient (“ NAV practical expedient”) in Topic 820 “ Fair Value Measurements
and Disclosures” (“ ASC 820”), the Group estimates fair value using the net asset value per share (or its equivalent)
of the investment. For equity securities do not qualify for NAV practical expedient, the Group elects to record these investments at
cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASC 321-10-35. Under
this measurement alternative, changes in the carrying value of the equity investment will be required to be made whenever there are observable
price changes in orderly transactions for the identical or similar investment of the same issuer.

The
Group makes assessments at each reporting period and if the assessment indicates that the fair value of the investment is less than the
NAV, the investment in equity securities will be written down to its fair value, with the difference between the fair value and the NAV
of the investment as an impairment loss recognized through net income or loss and recorded in the