Company: SDAWW
Filing Date: 2025-05-21
Form Type: 6-K
Source: 0001213900-25-046449
Chunk: 8

Company: SunCar Technology Group Inc.
Filing Date: 2025-05-21
Form: 6-K
Chunk 8
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The Group’s revenues are disaggregated by
timing of revenue recognition as follows:

|                                       |     | For the three months ended 
 March 31,                  |   2024 |     |   |    2025 |
|:--------------------------------------|:----|:---------------------------|-------:|:----|:--|--------:|
| Revenue recognized at a point of time |     | $                          | 78,049 |     | $ |  91,930 |
| Revenue recognized over time          |     |                            |  7,538 |     |   |  10,665 |
| Revenues                              |     | $                          | 85,587 |     | $ | 102,595 |

Contract Balances

Timing of revenue recognition may differ from
the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing
when the Group has satisfied its performance obligation and has an unconditional right to the payment. Contract assets represent the Group’s
right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets
as of December 31, 2024 and March 31, 2025.

The contract liabilities consist of deferred revenue,
which represents the billings or cash received for services in advance of revenue recognition and is recognized as revenue the performance
obligation is satisfied. The Group’s deferred revenue amounted to $ and $ as of December 31, 2024 and March 31, 2025,
respectively. During the three months ended March 31, 2024 and 2025, the Group recognized $ and $ that was included in deferred
revenue balance at January 1, 2024 and 2025, respectively.

F-10 SUNCAR TECHNOLOGY GROUP INC NOTES TO UNAUDITEDCONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. Dollar thousands, except share and per share data)

| (g). | Share-based compensation |

The Group grants restricted share units (“RSUs”)
of the Company and its subsidiary, SunCar Online, to eligible employees and management. The Group accounts for share-based awards issued
to employees and non-employees in accordance with ASC Topic 718 Compensation – Stock Compensation. The Group recognizes compensation
cost for an equity classified award using the straight-line method over the applicable vesting period based on the fair value of restricted
shares granted on the date