```markdown [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, SunCar's total assets increased to $252.1 million, with liabilities rising to $176.9 million Condensed Consolidated Balance Sheet Highlights (in U.S. Dollar thousands) | Balance Sheet Item | December 31, 2023 | September 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $175,197 | $196,472 | | **Total Assets** | **$223,235** | **$252,055** | | **Total Current Liabilities** | $124,392 | $152,494 | | **Total Liabilities** | **$155,245** | **$176,850** | | **Total Equity** | **$67,990** | **$75,205** | | Cash | $30,854 | $20,239 | | Accounts receivable, net | $56,043 | $77,131 | | Accounts payable | $26,641 | $54,995 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the nine months ended September 30, 2024, revenues grew to $312.7 million, but operating loss widened to $58.4 million Statement of Operations Summary (in U.S. Dollar thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | **Total Revenues** | **$250,463** | **$312,709** | | Auto service | $147,527 | $159,555 | | Auto eInsurance service | $78,842 | $119,108 | | Technology service | $24,094 | $34,046 | | **Total operating costs and expenses** | **($254,015)** | **($371,075)** | | General and administrative expenses | ($13,084) | ($44,079) | | Research and development expenses | ($5,464) | ($33,625) | | **Operating loss** | **($3,552)** | **($58,366)** | | **Net loss attributable to shareholders** | **($9,393)** | **($64,747)** | | **Basic and diluted loss per share** | **($0.11)** | **($0.68)** | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) For the nine months ended September 30, 2024, total equity increased to $75.2 million, driven by share-based compensation - Share-based compensation of **$61.8 million** for the company and **$1.7 million** for non-controlling interests was a major contributor to the increase in additional paid-in capital and total equity during the first nine months of 2024[11](index=11&type=chunk) - The company's accumulated deficit increased from **$126.7 million** at the end of 2023 to **$191.5 million** as of September 30, 2024, reflecting the significant net loss incurred during the period[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, operating activities generated $1.2 million in cash, a significant improvement Cash Flow Summary (in U.S. Dollar thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Net cash (used in)/provided by operating activities | ($31,093) | $1,182 | | Net cash used in investing activities | ($2,181) | ($9,792) | | Net cash provided by/(used in) financing activities | $34,069 | ($2,325) | | **Net change in cash and restricted cash** | **$54** | **($10,606)** | | **Cash and restricted cash, end of the period** | **$23,971** | **$22,989** | - A major non-cash adjustment in operating activities for the nine months ended September 30, 2024, was a **$62.0 million** share-based compensation expense, which was the primary reason for positive operating cash flow despite a large net loss[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Organization and Principal Activities](index=9&type=section&id=Note%201.%20Organization%20and%20Principal%20Activities) SunCar Technology Group Inc. provides auto, eInsurance, and technology services in the PRC - The Group's main business lines are auto service, auto eInsurance service, and technology service, all conducted within the People's Republic of China (PRC)[21](index=21&type=chunk) - The company completed a business combination on May 17, 2023, which was accounted for as a reverse recapitalization, with SunCar as the accounting acquirer[22](index=22&type=chunk)[23](index=23&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=10&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) Financial statements are prepared under U.S. GAAP, with key policies for revenue recognition and credit losses - Auto service revenue is recognized at a point in time when the service is provided or the service coupon expires[40](index=40&type=chunk) - Auto eInsurance service revenue (commissions) is recognized when the insurance policy becomes effective and the premium is collected by the insurance company[42](index=42&type=chunk) - Technology services revenue is recognized over time during the service period based on a fixed monthly price[43](index=43&type=chunk) [Note 3. Segment Information](index=15&type=section&id=Note%203.%20Segment%20Information) The company operates Auto Service and Auto eInsurance segments, generating $159.6 million and $119.1 million in revenue respectively Segment Performance for Nine Months Ended Sep 30, 2024 (in U.S. Dollar thousands) | Segment | Revenues from external customers | Segment income (loss) before tax | | :--- | :--- | :--- | | Auto service | $159,555 | $8,660 | | Auto eInsurance service | $119,108 | ($3,474) | | Others | $34,046 | ($65,828) | | **Consolidated** | **$312,709** | **($60,642)** | Total Assets by Segment (in U.S. Dollar thousands) | Segment | December 31, 2023 | September 30, 2024 | | :--- | :--- | :--- | | Auto service | $136,387 | $165,521 | | Auto eInsurance service | $66,274 | $61,376 | | Others | $20,574 | $25,158 | | **Total segment assets** | **$223,235** | **$252,055** | [Note 10. Warrants](index=19&type=section&id=Note%2010.%20Warrants) As of September 30, 2024, the company had 12.4 million warrants outstanding, with varying classifications - The company has several types of warrants outstanding: GEM Warrants, Public Warrants, Private Warrants, Common Warrants, and PA Warrants[73](index=73&type=chunk)[77](index=77&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - Private Warrants are treated as liabilities and remeasured to fair value each period, while Public and other warrants are classified as equity[83](index=83&type=chunk) Warrants Outstanding as of September 30, 2024 | Metric | Value | | :--- | :--- | | Warrants outstanding | 12,431,674 | | Weighted Average Exercise Price | $10.72 | | Warrants exercisable | 12,431,674 | [Note 11. Share-based Compensation](index=21&type=section&id=Note%2011.%20Share-based%20Compensation) The company recognized significant share-based compensation expenses in 2024, primarily from the 2024 Equity Incentive Plan - On March 28, 2024, the company approved the 2024 Equity Incentive Plan, authorizing **8,800,000** Class A ordinary shares[96](index=96&type=chunk) - All **8.8 million** shares under the 2024 plan were issued and fully vested upon grant, leading to a share-based compensation expense of **$62,040 thousand** for the nine months ended September 30, 2024[97](index=97&type=chunk) - The company also recognized **$1,121 thousand** in compensation expense in the first nine months of 2024 related to a subsidiary's (Shengda Automobile) 2020 Share Incentive Plan[101](index=101&type=chunk) [Note 12. Taxation](index=23&type=section&id=Note%2012.%20Taxation) PRC subsidiaries are subject to EIT rates of 25% or 15%, and the company has $66.9 million in net operating loss carryforwards - The statutory enterprise income tax (EIT) rate in the PRC is **25%**, but certain subsidiaries qualify as High and New Technology Enterprises (HNTEs) and are entitled to a reduced rate of **15%**[106](index=106&type=chunk) Deferred Tax Assets and Valuation Allowance (in U.S. Dollar thousands) | Item | December 31, 2023 | September 30, 2024 | | :--- | :--- | :--- | | Total deferred tax assets | $23,818 | $25,686 | | Valuation allowance | ($11,820) | ($12,796) | | **Deferred tax assets, net** | **$11,998** | **$12,890** | - As of September 30, 2024, the Group had net operating loss carryforwards of approximately **$66.9 million**, which will begin to expire in 2025[109](index=109&type=chunk)[110](index=110&type=chunk) [Note 14. Related Party Transactions](index=25&type=section&id=Note%2014.%20Related%20Party%20Transactions) The company has $30.2 million due to Shengda Group, a related party, with partial non-cash repayment - A significant payable exists to Shengda Group, an entity controlled by CEO Mr. Ye Zaichang, related to the 2021 transfer of SunCar Online[112](index=112&type=chunk)[113](index=113&type=chunk) - During the nine months ended September 30, 2024, the Group repaid **$6.2 million** of the debt to Shengda Group by transferring shares of SunCar Online, resulting in a non-cash gain of **$4.5 million** recorded in additional-paid-in capital[114](index=114&type=chunk)[116](index=116&type=chunk) Amount Due to a Related Party (in U.S. Dollar thousands) | Item | December 31, 2023 | September 30, 2024 | | :--- | :--- | :--- | | Current | $4,751 | $6,569 | | Non-current | $29,688 | $23,675 | | **Total** | **$34,439** | **$30,244** | [Note 15. Concentration Risk](index=26&type=section&id=Note%2015.%20Concentration%20Risk) The company faces significant customer concentration, with top customers accounting for 50% of revenue and 40% of receivables - For the nine months ended September 30, 2024, the top three customers accounted for a combined **50%** of the Group's total revenue[120](index=120&type=chunk) - As of September 30, 2024, the top three customers accounted for a combined **40%** of the Group's total accounts receivable[120](index=120&type=chunk) [Operating and Financial Review and Prospects](index=28&type=section&id=Operating%20and%20Financial%20Review%20and%20Prospects) [A. Operating Results](index=28&type=section&id=A.%20Operating%20Results) Revenue grew from auto service and eInsurance, but operating loss widened due to significant share-based compensation [Business Overview](index=28&type=section&id=Business%20Overview) - SunCar is a cloud-based provider of digitalized enterprise auto services and auto eInsurance in China[128](index=128&type=chunk) - The company's business is divided into three segments: - **Auto Service:** Offers customized service solutions (e.g., car wash, maintenance) to enterprise clients like banks and insurance companies for their customer loyalty programs - **Auto eInsurance:** Facilitates the sale of auto insurance products from major insurers through a network of over 64,000 external sales partners - **Technology Service:** Provides software and consulting (e.g., CRM, order management) to enterprise clients, with plans to develop a SaaS model[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) [Results of Operations Comparison](index=33&type=section&id=Results%20of%20Operations%20Comparison) Revenue by Segment (in U.S. Dollar thousands) | Segment | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Auto service | $147,527 | $159,555 | 8% | | Auto eInsurance service | $78,842 | $119,108 | 51% | | Technology service | $24,094 | $34,046 | 41% | | **Total revenues** | **$250,463** | **$312,709** | **25%** | - The **51%** increase in Auto eInsurance revenue was driven by a rising number of policies sold, particularly for Electric Vehicles (EVs), where the company ranks first in China for premium facilitation[167](index=167&type=chunk) - General and administrative expenses increased **237%** YoY, primarily due to a **$31.0 million** share-based compensation expense from the 2024 Equity Incentive Plan[164](index=164&type=chunk)[173](index=173&type=chunk) - Research and development expenses surged **515%** YoY, also primarily due to the **$31.0 million** share-based compensation expense[164](index=164&type=chunk)[174](index=174&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of Net Loss to Adjusted EBITDA (in U.S. Dollar thousands) | Line Item | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | **Net loss** | **($4,673)** | **($61,573)** | | Depreciation and amortization | $3,828 | $3,320 | | Financial expenses, net | $3,650 | $3,463 | | Share-based compensation | $1,147 | $63,161 | | Other adjustments | ($1,848) | ($10) | | **Adjusted EBITDA** | **$3,144** | **$8,194** | | **Adjusted EBITDA Margin** | **1.3%** | **2.6%** | - Despite a significant increase in GAAP net loss, **Adjusted EBITDA** grew **161%** YoY to **$8.2 million** for the nine months ended September 30, 2024[175](index=175&type=chunk)[180](index=180&type=chunk) [B. Liquidity and Capital Resources](index=37&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) As of September 30, 2024, the company held $20.2 million in cash, with operating activities generating $1.2 million Cash Flow Summary (in U.S. Dollar thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Net cash (used in)/provided by operating activities | ($31,093) | $1,182 | | Net cash used in investing activities | ($2,181) | ($9,792) | | Net cash provided by/(used in) financing activities | $34,069 | ($2,325) | | **Net change in cash and restricted cash** | **$54** | **($10,606)** | - Capital expenditures for the nine months ended September 30, 2024, were **$9.9 million**, primarily for software, equipment, and cloud systems[199](index=199&type=chunk) Contractual Obligations as of September 30, 2024 (in U.S. Dollar thousands) | Obligation | Within one year | 1-3 years | Total | | :--- | :--- | :--- | :--- | | Lease commitment | $85 | - | $85 | | Capital commitment | $8,480 | - | $8,480 | | Short-term borrowings | $83,362 | - | $83,362 | [C. Research and Development, Patents and Licenses, etc.](index=39&type=section&id=C.%20Research%20and%20Development%2C%20Patents%20and%20Licenses%2C%20etc.) R&D expenses surged to $33.6 million for the nine months ended September 30, 2024, driven by share-based compensation - R&D expenses were **$5.5 million** and **$33.6 million** for the nine months ended September 30, 2023 and 2024, respectively[209](index=209&type=chunk) ```

Company Overview - SunCar Technology Group Inc. is a leader in cloud-based B2B auto services and auto e-insurance in China, the largest passenger vehicle market globally [6] - Founded in 2007, SunCar connects drivers with a variety of auto services and insurance options through a nationwide network of sales partners [6] - The company has established itself as a leader in the B2B auto services market and the auto e-insurance market for electric vehicles in China [6] Offering Details - SunCar announced a follow-on public offering of up to $50 million of Class A Ordinary Shares, with an additional option for underwriters to purchase up to $7.5 million more [1][2] - The net proceeds from this offering will be utilized for working capital and general corporate purposes [1] - The offering is subject to market conditions, and there is no assurance regarding its completion or the actual size and terms [2] Regulatory Information - The securities are being offered under an effective shelf registration statement filed with the SEC on June 3, 2024, and declared effective on June 14, 2024 [3] - A preliminary prospectus supplement and accompanying prospectus will be filed with the SEC to describe the terms of the proposed offering [3]

NEW YORK, Jan. 21, 2025 /PRNewswire/ -- SunCar Technology Group Inc. ("SunCar" or the "Company") (Nasdaq: SDA), a leading innovator in cloud-based B2B auto services and auto e-insurance in China, today announced the appointment of Mr. Breaux Walker as the Company's Chief Strategy Officer (CSO), effective January 13, 2025. Mr. Walker brings over 25 years of extensive experience in business development, corporate finance, and cross-border transactions, particularly within the technology and fintech sectors. H ...

NEW YORK, Jan. 16, 2025 /PRNewswire/ -- SunCar Technology Group Inc. (NASDAQ: SDA) ("SunCar" or the "Company"), an innovative leader in cloud-based B2B auto services and auto e-insurance in China, is pleased to announce the Company has officially joined the China Auto Dealers Chamber of Commerce (CADCC) as one of its 40 "vice-chairman" members. This milestone solidifies SunCar's influence in the automotive industry and sets the stage for strategic growth in both the New Energy Vehicle (NEV) and traditional ...

NEW YORK, Jan. 8, 2025 /PRNewswire/ -- SunCar Technology Group Inc. (NASDAQ: SDA) ("SunCar" or the "Company"), an innovative leader in cloud-based B2B auto services and auto e-insurance in China, is pleased to announce the Company has secured the exclusive Contract (the "Contract") for Walmart (China) Investment Co., Ltd.'s ("Walmart China") 2025 Sam's Club Premium Membership Car Wash Project. Under this agreement, SunCar will deliver premium car wash services for Sam's Club members across 17 cities, includ ...

NEW YORK, Dec. 18, 2024 /PRNewswire/ -- SunCar Technology Group Inc. ("SunCar" or the "Company") (Nasdaq: SDA), a leading innovator in cloud-based B2B auto services and auto e-insurance in China, is pleased to announce that it has been awarded a bid to provide premium concierge transportation services for Shanghai Rural Commercial Bank's ("SRCB") valued clientele. This milestone extends the partnership between SunCar and SRCB, which has thrived since 2014. Over the past decade, SunCar has worked closely wit ...

NEW YORK, Nov. 11, 2024 /PRNewswire/ -- SunCar Technology Group Inc. (NASDAQ: SDA), a leading innovator in cloud-based B2B auto services and auto e-insurance in China, has entered into a strategic partnership with Wuhan JIDU Automobile Service Co. LTD. ("Wuhan JIDU"), to provide its cutting-edge insurance technology platform to auto buyers and customers across China. This partnership represents a major step in enhancing the digital insurance experience for Wuhan JIDU's expanding customer base.Wuhan JIDU, a ...

Core Insights - SunCar Technology Group Inc. has announced new and renewed contracts totaling over 30 million RMB (approximately USD 4.2 million) with various branches of Ping An Property & Casualty Insurance Co., Ltd. [1][2] Group 1: Partnerships and Contracts - The recent agreements include new partnerships with the Shanghai and Guangdong branches of Ping An, while the Hebei and Shanxi branches have renewed their long-standing collaborations [2] - Foshan Ping An is re-engaging with SunCar after a hiatus, indicating a revival of previous partnerships [2] Group 2: Service Offerings - The new contracts expand beyond traditional car wash and maintenance services to include premium offerings such as clay bar waxing, polishing, wheel alignment, ozone disinfection, and air conditioning sterilization [2] - These value-added services aim to enhance customer experience and broaden the service offerings available through SunCar's collaboration with Ping An [2] Group 3: Market Position and Growth - As of October 2024, SunCar's automotive service collaborations now cover all of Ping An P&C's top 10 provincial branches by premium scale, solidifying its leading position in the auto services market [3] - The partnership builds on previous successes, including a notable collaboration in June 2024 focused on premium airport pickup services for high-value clients [3] - The company aims to enhance service quality and expand the number of partnered car wash locations, supporting Ping An in promoting their insurance products [4] Group 4: Company Overview - Founded in 2007, SunCar is a leader in cloud-based B2B auto services and auto e-insurance in China, the largest passenger vehicle market globally [5] - The company operates a cloud platform that connects drivers with a wide range of auto services and insurance options through a nationwide network of sales partners [5]

Group 1 - Iridium Communications Inc. and General Dynamics Mission Systems received a $491.6 million contract modification from the Space Development Agency for the Ground Management and Integration program, with Iridium's share valued at $239 million over five years [1][2] - The new contract focuses on developing an advanced ground system compatible with SDA's Tranche 2 constellation, including services such as engineering design, analysis, testing, and maintenance [2] - Iridium's engineering and support business is benefiting from U.S. government contracts, including a new five-year contract worth nearly $94 million, expected to provide stable revenue through 2029 [3] Group 2 - Iridium's third-quarter 2024 revenues reached $212.8 million, an 8% increase year over year, with engineering and support revenues surging 22% to $30.7 million [3] - Despite strong performance in engineering and support, weak demand trends in the Equipment business are expected to lead to lower equipment sales in 2024 [4] - Iridium currently holds a Zacks Rank 4 (Sell), with shares down 24% over the past year compared to a 3.4% growth in the sub-industry [5]

SunCar Technology Group Inc. (NASDAQ:SDA) Q2 2024 Earnings Conference Call September 16, 2024 8:00 AM ET Company Participants Jennifer Jiang - Director of IR Zaichang Ye - Chairman and CEO Breaux Walker - U.S. Consultant Operator Thank you for standing by and welcome to the SunCar Technology Group's First Half 2024 Earnings Call. Please note that today's call is being recorded. I will now turn the meeting over to Jennifer Jiang, Director of Investor Relations for SunCar Technology Group. Jennifer Jiang Than ...