Company: SDAWW
Filing Date: 2025-10-27
Form Type: 6-K
Source: 0001213900-25-102611
Chunk: 28

Company: SunCar Technology Group Inc.
Filing Date: 2025-10-27
Form: 6-K
Chunk 28
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ITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. Dollar thousands, except share and per share data)

Changes in valuation allowance are as follows:

|                                          |     | 2024 | As of December 31, |   |     | 2025 | As of  June 30, |
|:-----------------------------------------|:----|:-----|-------------------:|:--|:----|:-----|----------------:|
| Balance at the beginning of the period   |     | $    |             11,820 |   |     | $    |          13,840 |
| Additions                                |     |      |              2,344 |   |     |      |             816 |
| Foreign currency translation adjustments |     |      |               (324 | ) |     |      |             278 |
| Balance at the end of the period         |     | $    |             13,840 |   |     | $    |          14,934 |

As of December 31, 2024 and June 30, 2025, the Group had net operating loss carryforwards of approximately $ 48,347and $ 49,565, respectively, which arose from the Group’s subsidiaries in the PRC. As of December 31, 2024 and June 30, 2025, the Group had net operating loss carryforwards of approximately $ 82,600and $ 87,661, respectively, which arose from the Parent Company and the Group’s non-PRC subsidiaries. As of December 31, 2024 and June 30, 2025, deferred tax assets from the net operating loss carryforwards amounted to $ 11,325and $ 11,707, respectively, and the Group has recorded valuation allowances of $ 13,840and $ 14,934as of December 31, 2024 and June 30, 2025, respectively. Full valuation allowances have been provided where, based on all available evidence, management determined that deferred tax assets are not more likely than not to be realizable in future tax years.

As of June 30, 2025, net operating loss carryforwards will expire, if unused, in the following amounts:

| Remainder of 2025 |     | $ |   4,369 |
| 2026              |     |   |   4,960 |
| 2027              |