Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 110

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 110
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1. The disposal transaction was completed
as of March 1, 2022. As the disposal of Shengda Group was under common control, no gain or loss was recorded as the result of the disposal,
and instead impacts were charged to additional paid-in capital.

Non-GAAP Financial Measures

In addition to our results
being determined in accordance with GAAP, the Company’s management believes that Adjusted EBITDA, which is a non-GAAP measure that
excludes certain non-recurring items such as costs and expenses related to the Business Combination and prior and subsequent capital raises,
is useful in evaluating our operational performance. The Company uses this non-GAAP financial information to evaluate our ongoing operations
and for internal planning, budgeting and forecasting purposes. We believe that this non-GAAP financial information, when taken collectively
with GAAP measures, may be helpful to investors in assessing our operating performance and comparing our performance with competitors
and other comparable companies, which may or may not present similar non-GAAP financial measures to investors. Our computation of these
non-GAAP measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not
calculate these measures in the same fashion. We endeavor to compensate for the limitation of the non-GAAP measure presented by also providing
the most directly comparable GAAP measure and a description of the reconciling items and adjustments to derive the non-GAAP measure. This
non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered in isolation
or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily
on our GAAP results and using non-GAAP measures on a supplemental basis.

Adjusted EBITDA

We believe that Adjusted EBITDA,
as defined below, is useful in evaluating our operational performance distinct and apart from certain expenses that may not be indicative
of our recurring core business operating results and non-operational expenses. Adjusted EBITDA is defined as Net loss adjusted for depreciation
and amortization, financial expenses, net, investment income, change of fair value of warrant liabilities, other non-recurring income,
net, income tax expense, share-based compensation and non-recurring expenses related to the Business Combination and prior and subsequent
capital raises.

Net loss Margin is defined as net loss divided
by total revenues, and Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by total revenues.

The following table reconc