Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 199

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 199
---
.

The
Group classifies a lease as a financing lease at lease commencement when the lease meets any one of the criteria:

  The                                                                                            

  The                                                                                               

  The                                                                                     

  The                                                                                             

  The                                                                                          

  When                                                                               

Group
as a lessee

When
the Group acts as a lessee, leases with an initial term of 12

The
right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received.

Lease
term includes rent holidays and options to extend or terminate the lease when the Group is reasonably certain that the Group will exercise
that option. The lease assets for operating leases consist of the amount of the measurement of the lease liabilities and any prepaid
lease payments. Operating lease expense is recognized on a straight-line basis over the lease term by adding interest expense determined
using the effective interest method to the amortization of the operating lease right-of-use assets. Interest expense is determined using
the effective interest method. The Group’s lease agreements do not contain any material residual value guarantees or material restrictive
covenants.

Group
as a lessor

When
the Group acts as a lessor, it classifies at lease inception (or when there is a lease modification) each of its leases as either an
operating lease or a finance lease.

Leases
in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating
leases. Rental income is recognized over the non-cancellable lease term on a straight-line basis and is included in revenue in the consolidated
statement of operations and comprehensive loss due to its operating nature. Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis on the rental
income. The Group does not have any sales-type or direct financing leases for the years ended June 30, 2025, 2024 and 2023.

F-15

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  SUMMARY                                     
  OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
 ──────────────────────────────────────────────

  (p)      Revenue