Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 100

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 100
---
 has been collected from the insured. We have satisfied the performance obligation to recognize revenue when
the premiums are collected by the respective insurance companies and not before, because collectability is not ensured until receipt of
the premium. Accordingly, we do not accrue any auto eInsurance service commissions or fees prior to the receipt of the related premiums.
No allowance for policy cancellations has been provided for intermediation services as cancellation of policies rarely occurs.

Technology Services

We provide technology services
including technical software and consulting related to automobile services and insurance, such as customer relationship management (CRM),
order management, finance management and visual analysis systems. We charge service fees based on monthly fixed price contracts for services
provided, and recognize revenue over time during the service period.

Auto Services

We define enterprise customers
as our customers and we sell auto service coupons to enterprise customers, where each coupon represents one specific auto service. There
are various service types including vehicle washing, waxing, maintenance, transportation services and roadside assistance. We only provide
one specific service among various service types for each specific service coupon. We identify each specific service coupon as a contract
that establishes enforceable rights and obligations for each party. We charge the service fee at a fixed price per service when the service
is performed. For service coupons with limited duration, we either charge the service fee at a fixed price per service when the service
is performed or when the coupon expires, whether or not the service has been performed. We consider each service coupon to be a distinct
service that is capable of providing a benefit to the customer on its own according to ASC 606-10-25-14(a). Therefore, we identify only
one performance obligation under a contract, which is to provide a specific service or to stand ready to perform a specific service within
a limited duration. We act as a principal as we control access to the services before the services are provided to customers and we have
the ability to direct other parties to provide the services to customers on our behalf. Specifically, we have the ability to choose service
providers, and are primarily responsible for the acceptability for the service meeting customer specifications, bears inventory risk after
transfer of control of services to customers, and has the discretion in establishing the price with customers and with service providers
and bears credit risk. We recognize revenue in the gross amount of consideration at a point of time when the service is provided, or when
the service coupon expires. We do not provide refunds to the customers when a coupon is expired but not