Company: SDAWW
Filing Date: 2025-05-21
Form Type: 6-K
Source: 0001213900-25-046449
Chunk: 39

Company: SunCar Technology Group Inc.
Filing Date: 2025-05-21
Form: 6-K
Chunk 39
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able forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. For the three months ended March 31, 2024 and 2025, we recognized US$1.3 million and US$1.1 million, respectively. A 10% increase in our credit losses provision would have increased our loss before income tax by 2.5% and 3.0% for the three months ended March 31, 2024 and 2025, respectively. 4 Valuation Allowance of Deferred Tax Assets Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider positive and negative evidence when determining whether a portion or all of our deferred tax assets 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. For the three months ended March 31, 2024 and 2025, we recognized a valuation allowance of deferred tax assets of US$1.0 million and US$0.5 million, respectively. A 10% increase in our valuation allowance of deferred tax assets would have increased net losses by 1.9% and 1.4% for the three months ended March 31, 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           |