Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 16

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 16
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 and limit exposure to credit risk on our accounts
receivable, which risk is heightened during periods of uncertain economic conditions, there can be no assurance such procedures will effectively
limit our credit risk and enable us to avoid losses, which could have a material adverse effect on our financial condition and operating
results. Our net accounts receivable balance was US$75.6 million and US$56.0 million as of December 31, 2024 and December 31, 2023, respectively,
and we recognized bad debt expenses of US$1.3 million for the year ended December 31, 2024, and reversed credit losses of $4.1 million
for the year ended December 31, 2023.

We may not be able to facilitate diversified
products and services to effectively address our end consumers’ needs, which could have a material adverse effect on our business,
results of operations and financial condition.

We strive to continuously
upgrade our auto services by offering more comprehensive service solutions and upgraded experience. We also seek to collaborate with more
insurance companies located in our existing and new geographical markets, while maintaining full spectrum insurance product choices. Expansion
into new product and service categories and geographies involves new risks and challenges. If we fail to respond to the changing and emerging
needs and preferences of our customers and end consumers, or we incorrectly respond to the changing and emerging needs and preferences,
our business, results of operations and financial condition may be materially and adversely affected.

Any breaches to our security measures, including
unauthorized access to our systems, computer viruses and cyber-attacks may adversely affect our database and reduce the use of our services
and damage our reputation and brand names.

In connection with our business
as a provider of online platform, we collect, host, store, transfer, process, disclose, use, secure and retain and dispose of large amounts
of personal and business information about our customers and partners. We focus on ensuring that we safeguard and protect personal and
business information and client funds, and we devote significant resources to maintain and regularly update our systems and processes.
Nonetheless, the global environment continues to grow increasingly hostile as attacks on information technology systems continue to grow
in frequency, complexity and sophistication, and we are regularly targeted by unauthorized parties using malicious tactics, code and viruses.

Any cyberattack, unauthorized
intrusion, malicious software infiltration, network disruption, denial of service, corruption of data, theft of non-public or other sensitive
information, or similar act by a malevolent party (