Company: SDAWW
Filing Date: 2025-05-21
Form Type: 6-K
Source: 0001213900-25-046449
Chunk: 24

Company: SunCar Technology Group Inc.
Filing Date: 2025-05-21
Form: 6-K
Chunk 24
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 the shareholders of Shengda
Automobile, a subsidiary of SunCar, approved and adopted the Share Incentive Plan (the “2020 Plan”), under which eligible
employees were granted of restricted ordinary shares of Shanghai Shengda to award eligible employees’ contribution of
the expansion of Shengda Automobile, at the price of RMB per share (“Restricted Shares”).

The restricted ordinary shares are subject to
an annual vesting schedule that vests % of granted restricted shares over the next as the employees are required to provide
services for a total of 60 months to earn the award. The employees have made full subscription payment of $ during the year ended
December 31, 2020. Upon termination, the unvested restricted shares are forfeited and the prepaid subscription amount for the unvested
portion shall be returned to the employees.

These restricted ordinary shares were considered
as nonvested shares under the definition of ASC 718-10-20. The fair value of the Shares at the grant date was RMB ($) per share,
which was determined based on the purchase price of the financial offering of the same securities with external institutional investors.
The Group accounts for forfeitures as a reduction of stock-based compensation expense when the forfeiture actually occurs.

SunCar recognizes compensation expenses related
to those restricted shares on a straight-line basis over the vesting periods. $ and $ of compensation expenses were recorded for
the three months ended March 31, 2024 and 2025.

As of March 31, 2025, the unrecognized compensation
expense related to restricted shares amounted to $, which will be recognized over a weighted-average period of years.

The 2020 Plan was carried out in the way that
eligible employees indirectly hold shares of Shanghai Shengda by holding shares of Jingning Shengjing Enterprise Management Partnership
(Limited Partnership) (“Shareholding Platform”) as the general partner and limited partner of the Shareholding Platform.

| 12. | EQUITY |

Issuance of ordinary shares

On February 5, 2025, the Group entered into an
underwriting agreement with BTIG, LLC as the representative of the underwriters named therein, to issue and sell Class A ordinary
shares for total expected gross proceeds of approximately $ million before underwriting discounts and commissions and offering expenses.
The issuance was completed on February 7, 2025, the proceeds from issuance of ordinary shares, net of offering costs, amounted to approximately
$ million.

Shares Repurchase from public