Company: SDAWW
Filing Date: 2025-12-22
Form Type: 6-K
Source: 0001213900-25-124170
Chunk: 6

Company: SunCar Technology Group Inc.
Filing Date: 2025-12-22
Form: 6-K
Chunk 6
---
ability is not ensured until receipt of
the premium. Accordingly, the Group does not accrue any auto eInsurance service commission and fees prior to the receipt of the related
premiums. No allowance for cancellation has been provided for intermediation services as cancellation of policies rarely occurs.

Technology service

The Group provides technology service including
technical software and consulting related to automobile services and insurance, such as customer relationship management (CRM), order
management, finance management and visual analysis systems. The Group charges service fee based on fixed price per month for service provided,
and recognizes revenue over time during the service period.

F-9 SUNCAR TECHNOLOGY GROUP INC NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. Dollar thousands, except share and per share data)

Auto service

The Group defines enterprise customers as the
Group’s customers and the Group sells auto service coupons to enterprise customers, which each coupon represents one specific auto
service. There are various service types including vehicle washing, waxing, maintenance, driving service and road assistance, and the
Group only provides one specific service among various service types for each specific service coupon. The Group identifies each specific
service coupon as a contract that establishes enforceable rights and obligations for each party. The Group charges the service fee at
a fixed price per service when the service is performed. For service coupons with limited duration, the Group either charges the service
fee at a fixed price per service when the service is performed or when the coupon expires, whether or not the service has been performed.
The Group considers each service coupon is a distinct service that is capable of providing a benefit to the customer on its own according
to ASC 606-10-25-14(a). Therefore, the Group identifies only one performance obligation under a contract, which is to provide a specific
service or to stand-ready to perform a specific service within a limited duration. The Group acts as a principal as the Group controls
the right to services before the services are provided to customers and the Group has the ability to direct other parties to provide the
services to customers on the Group’s behalf. Specifically, the Group has the ability to choose service providers, is primarily responsible
for the acceptability for the service meeting customer specifications, bears inventory risk after transfer of control of services to customers,
and has the discretion in establishing the price with customers and with service providers and bears credit risk. The Group recognizes
revenue in the gross amount of consideration at a point of time when