Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 102

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 102
---
 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 years ended December
31, 2022, 2023 and 2024, We recognized a valuation allowance of deferred tax assets of US$5.4 million, US$4.5 million and US$2.3 million,
respectively. A 10% increase in our valuation allowance of deferred tax assets would have increased net losses from continuing operations
by 5%, 3% and 0.4% respectively, for the years ended December 31, 2022, 2023, and 2024.

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  

Key Components of Results of Operations

Revenue

Our Revenues are derived from
auto eInsurance service, auto service, and technology 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 years indicated.

                               For the Year Ended December 31,                                                                           
                               2022                                                                                                      
                               (in thousands, except for percentages)                                                                    
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Auto eInsurance service      $                                            67,640       24      118,109       32      170,549       39  
  Technology service                                                        15,479        5       30,658        8       44,892       10  
  Auto service                                                             199,294       71      214,979