Company: SDAWW
Filing Date: 2025-12-22
Form Type: 6-K
Source: 0001213900-25-124170
Chunk: 41

Company: SunCar Technology Group Inc.
Filing Date: 2025-12-22
Form: 6-K
Chunk 41
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 will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, our experience with tax attributes expiring unused, and our tax planning strategies. The ultimate realization of deferred tax assets is dependent upon our ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, we have considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. 4 For the nine months ended September 30, 2024 and 2025, we reduced the valuation allowance of deferred tax assets of US$0.8 million and recognized the valuation allowance of US$1.4 million, respectively. A 10% increase in our valuation allowance of deferred tax assets would have increased net losses by 0.1% and 3.3% for the nine months ended September 30, 2024 and 2025, respectively. Useful Lives of Property, Software and Equipment The estimated useful lives of the property, software and equipment are based on the management’s best estimation, which were as follows:

| Category                |     | Estimated                            
 useful lives                         |
| Vehicles                |     | 3-5                                  
 years                                |
| Office                  
 equipment and furniture |     | 3-5                                  
 years                                |
| Electronic              
 equipment               |     | 3                                    
 years                                |
| Building                |     | 20                                   
 years                                |
| Computer                
 software                |     | 5,                                   
 10 years                             |
| Leasehold               
 improvements            |     | Over                                 
 the shorter of the lease term or the 
 estimated useful lives of the assets |

Key Components of Results of Operations Revenue Our revenues are derived from auto eInsurance service, technology service and auto service. The following table sets forth the breakdown of our total revenues, both in absolute amount and as a percentage of our total revenues, for the periods indicated.

|                         |     | For the nine months ended September 30, 
 2024                                    
 (in thousands, except for percentages)  |         |     |     |