Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 28

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 28
---
 selling and marketing
expenses decreased by 43.0% from US$1.1 million for the fiscal year ended June 30, 2023 to US$0.6 million for the fiscal
year ended June 30, 2024, primarily due to (1) a decrease of US$0.2 million in employee compensation as a result of personnel
optimization; and (2) a decrease of US$0.2 million in marketing expenses for brand promotion and customer relationship development
as we focused more on the bulk order of Q-trucks during the fiscal year 2024.

Impairment loss of long-lived assets

Our impairment loss of long-lived
assets were US$0.2 million and nil for the fiscal years ended June 30, 2024 and 2023, respectively, as we identified events
and changes in circumstances that indicated the carrying amount of an asset may no longer be recoverable in the review of long-lived assets
impairment, and measured impairment by comparing the carrying value of the long-lived assets to the market price.

Other (expenses)/income, net

Our total other (expenses)/income,
net changed from other income, net of US$0.1 million for the fiscal year ended June 30, 2023 to other expenses, net of US$0.1 million
for the fiscal year ended June 30, 2024.

Our other income, net slightly
increased from US$253 thousand for the fiscal year ended June 30, 2023 to US$264 thousand for the fiscal year ended June 30,
2024, primarily attributable to the increase of loss from disposal of property and equipment.

Our interest expenses, net
mainly consist of interest income and interest expense, bank charges and exchange gain or loss. Our interest expenses, net increased from
US$0.2 million for the fiscal year ended June 30, 2023 to US$0.4 million for the fiscal year ended June 30, 2024,
primarily due to the increase in interest expenses as a result of the addition of short-term loans during the fiscal year ended June 30,
2024.

Net loss

As a result of the foregoing,
our net loss decreased by 9.6% from US$6.6 million for the fiscal year ended June 30, 2023 to US$6.0 million for the fiscal
year ended June 30, 2024.

Liquidity and Capital