Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 67

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 67
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 unable to accurately
report its results of operations, meets its reporting obligations or prevent fraud, and investor confidence and the market price of SunCar’s
ordinary shares may be materially and adversely affected.

Prior to the Business Combination,
SunCar has been a private company with limited accounting personnel and other resources with which to address SunCar’s internal
controls and procedures. Neither SunCar nor its independent registered public accounting firm undertook a comprehensive assessment of
SunCar’s internal control under the Sarbanes-Oxley Act of 2002 for purposes of identifying and reporting any material weakness in
SunCar’s internal control over financial reporting. Had SunCar performed a formal assessment of SunCar’s internal control
over financial reporting or had SunCar’s independent registered public accounting firm performed an audit of SunCar’s internal
control over financial reporting, material weakness or control deficiencies may have been identified. Upon completion of the Business
Combination, SunCar has become subject to the Sarbanes-Oxley Act of 2002. Section 404 of the Sarbanes-Oxley Act, or Section 404, requires
that SunCar include a report from management on the effectiveness of SunCar’s internal control over financial reporting in SunCar’s
annual report on Form 20-F beginning with SunCar’s annual report in SunCar’s second annual report on Form 20-F after becoming
a public company. In addition, once SunCar ceases to be an “emerging growth company” as such term is defined in the JOBS Act,
SunCar’s independent registered public accounting firm must attest to and report on the effectiveness of SunCar’s internal
control over financial reporting. Moreover, even if SunCar’s management concludes that SunCar’s internal control over financial
reporting is effective, SunCar’s independent registered public accounting firm, after conducting its own independent testing, may
issue an adverse opinion on the effectiveness of internal control over financial reporting if it is not satisfied with SunCar’s
internal controls or the level at which SunCar’s controls are documented, designed, operated or reviewed, or if it interprets the
relevant requirements differently from SunCar. In addition, after SunCar becomes a public company, SunCar’s reporting obligations
may place a significant strain on SunCar’s management, operational and financial resources and systems for the foreseeable future.
SunCar may be unable to timely complete its evaluation testing and any required remediation.

During the course of documenting
and testing SunCar’s internal control procedures, in order to satisfy