Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 4

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 4
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Car also may face risks relating to the lack
of PCAOB inspection on its auditor, which may cause our securities to be delisted from a U.S. stock exchange or prohibited from being
traded over-the-counter in the future under the Holding Foreign Companies Accountable Act as amended by the Accelerating Holding Foreign
Companies Accountable Act (the “AHFCAA”) that was signed into law on December 29, 2022, if the PCAOB has determined it is
unable to investigate SunCar’s auditor completely for two consecutive years beginning in 2021. The delisting or the cessation of
trading of our securities, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect
the value of your investment. On December 16, 2021, the PCAOB issued a report to notify the SEC its determinations that it is unable to
inspect or investigate completely registered public accounting firms headquartered in China and Hong Kong, respectively, and identifies
the registered public accounting firms in China and Hong Kong that are subject to such determinations. SunCar’s auditor is headquartered
in Singapore and has been inspected by the PCAOB on a regular basis and is therefore not subject to the determinations announced by the
PCAOB on December 16, 2021. However, since the audit work was carried out by SunCar’s auditor with the collaboration of its China-based
office, the audit working papers of SunCar’s financial statements may not be inspected by the PCAOB without the approval of the
PRC authorities. On August 26, 2022, the PCAOB announced and signed a Statement of Protocol (the “Protocol”) with the China
Securities Regulatory Commission and the Ministry of Finance of the People’s Republic of China. The Protocol provides the PCAOB
with: (1) sole discretion to select the firms, audit engagements and potential violations it inspects and investigates, without any involvement
of Chinese authorities; (2) procedures for PCAOB inspectors and investigators to view complete audit work papers with all information
included and for the PCAOB to retain information as needed; and (3) direct access to interview and take testimony from all personnel associated
with the audits the PCAOB inspects or investigates. On December 15, 2022, the PCAOB announced in the 2022 Determination its determination
that the PCAOB was able to secure complete access to inspect and investigate accounting firms headquartered in mainland China and Hong
Kong, and