Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 115

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 115
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, depreciation of US$4.5 million, provision for credit losses
of US$1.3 million, deferred income tax expense of US$1.2 million, (ii) increase of accounts payable of US$31.3 million primarily due to
the growth of our auto service business, (iii) increase of accrued expenses and other current liabilities of US$1.4 million and US$1.9
million amounts due to related parties, offset by an increase of accounts receivable of US$22.7 million due to the increase of sales,
and an increase of prepaid expenses and other current assets of US$6.7 million due to the increase of advances to suppliers for the expansion
of business.

Net cash used in operating
activities of continuing operations for the year ended December 31, 2023 was US$27.7 million, as compared to net loss from continuing
operations of US$17.6 million. The principal changes accounting for the difference between net loss and net cash used in operating activities
in 2023 were an adjustment of US$13.7 million non-cash items including the change of share-based compensation of the Group of US$9.8
million and depreciation of US$4.1 million offset by the reversal of allowance of accounts receivable of US$4.1 million, an increase of
prepaid expenses and other current assets of US$55.9 million, offset by a decrease of accounts receivable of US$30.8 million due to good
collections, an increase of accounts payable of US$3.1 million. The increase of prepaid expenses and other current assets was primarily
due to a significant increase of pre-recharge funds to auto service providers for the purpose of getting more preferential service prices.
The increase in accounts payable was primarily due to the growth of our technology service business.

Net cash used in operating
activities of continuing operations for the year ended December 31, 2022 was US$16.1 million, as compared to net loss from continuing
operations of US$10.9 million. The difference between net loss and net cash used in operating activities was primarily attributable to
an increase of accounts receivable, net of US$32.6 million, an increase of prepaid expenses and other current assets of US$3.9 million,
and a decrease of accounts payable of US$5.0 million, offset by the provision of doubtful accounts of US$26.0 million, and depreciation
and amortization