Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 99

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 99
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 judgments, estimates, and assumptions. To the extent that
there are material differences between these estimates and actual results, our financial condition or results of operations would be affected.
We base our estimates and assumptions on our historical data and other assumptions that we believe are reasonable after taking account
of our circumstances and expectations for the future based on available information. We evaluate these estimates and assumptions on an
ongoing basis.

Our expectations regarding
the future are based on available information and assumptions that we believe to be reasonable and accurate, which together form our basis
for making judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component
of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher
degree of judgment than others in their application.

The critical accounting policies,
judgments, and estimates that we believe to have the most significant impact on our consolidated financial statements are described below,
which should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included in
this Annual Report. When reviewing its financial statements, you should consider:

  our selection of critical accounting policies;                                     
  the judgments and other uncertainties affecting the application of such policies;  
  the sensitivity of reported results to changes in conditions and assumptions.      

We consider an accounting
estimates to be critical if: (i) the accounting estimates requires us to make assumptions about matters that were highly uncertain at
the time the accounting estimate was made, and (ii) changes in the estimates that are reasonably likely to occur from period to period
or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial
condition or results of operations. We consider our critical accounting estimates include (i) revenue recognition; (ii) allowance for
credit losses; (iii) valuation allowances of deferred tax assets; and (iv) useful lives of software and equipment.

Revenue Recognition

Revenues from our continuing
operations are mainly generated from providing auto eInsurance services, technology services, and auto services.

Auto eInsurance

We provide auto eInsurance
distributing automobile insurance on behalf of the insurance companies and charging insurance companies intermediation service commissions.
The commissions are determined as a percentage of premiums paid by the insured. Auto eInsurance services are considered to be rendered
and completed, and revenue is recognized, at the time an insurance policy becomes effective, that is, when the signed insurance policy
is in place and the premium