Company: SDAWW
Filing Date: 2025-02-04
Form Type: 6-K
Source: 0001213900-25-010076
Chunk: 10

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-04
Form: 6-K
Chunk 10
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 revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards
apply to private companies.

In August 2020, the FASB issued ASU 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 revised the guidance in Subtopic
815-40 to remove the conditions including: (i) settlement in unregistered shares; (ii) collateral; and (iii) shareholder rights. In addition,
regarding the condition about failure to timely file in the settlement guidance, ASU 2020-06 clarify that penalty payments do not preclude
equity classification. For public companies not eligible to be a smaller reporting company, the guidance is effective for fiscal years
beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, the guidance is effective for
fiscal years and interim periods beginning after December 15, 2023. Early adoption is permitted. The Company elected to early adopted
ASU 2020-06 from January 1, 2023.

In November 2023, the FASB issued ASU 2023-07,
which modifies the disclosure and presentation requirements of reportable segments. The new guidance requires the disclosure of significant
segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported
measure of segment profit and loss. In addition, the new guidance enhances interim disclosure requirements, clarifies circumstances in
which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with
a single reportable segment, and contains other disclosure requirements. The update is effective for annual periods beginning after December
15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Group does not
expect that the adoption of ASU 2023-07 will have a material impact on its unaudited condensed consolidated financial statements disclosures.

F-11 In December 2023, the FASB issued ASU 2023-09, Improvement to Income Tax Disclosure. This standard requires more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation