Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Document Information Line Items | |
Entity Registrant Name | SUNCAR TECHNOLOGY GROUP INC. |
Document Type | F-1 |
Amendment Flag | false |
Entity Central Index Key | 0001936804 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Suite 209 |
Entity Address, Address Line Two | No. 656 Lingshi Road |
Entity Address, Address Line Three | Jing’an District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200072 |
Entity Address, Country | CN |
City Area Code | (86) |
Local Phone Number | 138-1779-6110 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 850 Library Avenue |
Entity Address, Address Line Two | Suite 204 |
Entity Address, City or Town | Newark |
Entity Address, Postal Zip Code | 19711 |
City Area Code | 302 |
Local Phone Number | 738-6680 |
Contact Personnel Name | Puglisi & Associates |
Entity Address, State or Province | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Current assets | |||
Cash | $ 35,460 | $ 21,200 | |
Restricted cash | 2,653 | 2,717 | |
Short-term investments | 20,985 | 26,544 | |
Accounts receivable, net | 74,593 | 85,619 | $ 85,637 |
Prepaid expenses and other current asset | 43,601 | 9,270 | 5,740 |
Total current assets | 177,292 | 145,350 | |
Non-current assets | |||
Long-term investment | 276 | 290 | |
Software and equipment, net | 15,040 | 18,491 | 10,739 |
Deferred tax assets, net | 12,630 | 13,070 | |
Other non-current assets | 17,267 | 14,423 | 24,385 |
Right-of-use assets | 1,514 | 344 | |
Non-current assets of discontinued operations | 5,000 | ||
Total non-current assets | 46,727 | 46,618 | |
TOTAL ASSETS | 224,019 | 191,968 | |
Current liabilities | |||
Short-term loans | 85,199 | 74,653 | |
Accounts payable | 30,326 | 24,200 | |
Deferred revenue | 3,870 | 3,569 | 1,901 |
Contract liabilities | 3,870 | 3,569 | |
Tax Payable | 1,749 | 2,042 | |
Accrued expenses and other current liabilities | 4,037 | 4,849 | |
Current liabilities of discontinued operations | 27,334 | ||
Lease liabilities | 624 | 315 | |
Total current liabilities | 125,973 | 155,192 | |
Non-current liabilities of discontinued operations | 52,659 | ||
Non-current liabilities | |||
Lease liabilities | 796 | ||
Warrant liabilities | 32 | ||
Total non-current liabilities | 44,158 | ||
Total liabilities | 170,131 | 155,192 | |
Shareholders’ equity | |||
Additional paid in capital | 114,084 | 95,764 | |
Accumulated deficit | (103,200) | (99,580) | |
Accumulated other comprehensive loss | (1,643) | (1,476) | |
Total shareholders’ (deficit) equity | 9,250 | (5,284) | |
Non-controlling interests | 44,638 | 42,060 | |
Total equity | 53,888 | 36,776 | 26,463 |
TOTAL LIABILITIES AND EQUITY | 224,019 | 191,968 | |
Class A Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares | 4 | 3 | |
Class B Ordinary Shares | |||
Shareholders’ equity | |||
Ordinary shares | 5 | 5 | |
Previously Reported | |||
Current assets | |||
Cash | 21,200 | 34,517 | |
Restricted cash | 2,717 | 2,830 | |
Short-term investments | 26,544 | 29,147 | |
Accounts receivable, net | 85,619 | 85,637 | |
Prepaid expenses and other current asset | 9,270 | 5,740 | |
Current assets of discontinued operations | 3,875 | ||
Total current assets | 145,350 | 161,746 | |
Non-current assets | |||
Long-term investment | 290 | 314 | |
Software and equipment, net | 18,491 | 10,739 | |
Deferred tax assets, net | 13,070 | 12,086 | |
Other non-current assets | 14,423 | 24,385 | |
Right-of-use assets | 344 | ||
Non-current assets of discontinued operations | 5,000 | ||
Total non-current assets | 46,618 | 52,524 | |
TOTAL ASSETS | 191,968 | 214,270 | |
Current liabilities | |||
Short-term loans | 74,653 | 69,030 | |
Accounts payable | 24,200 | 31,491 | |
Deferred revenue | 3,569 | 1,901 | |
Tax Payable | 2,042 | 2,505 | |
Accrued expenses and other current liabilities | 4,849 | 2,887 | |
Operating lease liability-current | 315 | ||
Current liabilities of discontinued operations | 27,334 | ||
Total current liabilities | 155,192 | 135,148 | |
Non-current liabilities of discontinued operations | 52,659 | ||
Non-current liabilities | |||
Total liabilities | 155,192 | 187,807 | |
Shareholders’ equity | |||
Ordinary shares | 11 | 11 | |
Convertible Preferred shares (par value US$0.00005; 45,614,646 Series A preferred shares, 27,053,437 limited Series A preferred shares and 121,000,531 Series B preferred shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively) | 10 | 10 | |
Additional paid in capital | 95,751 | 75,091 | |
Accumulated deficit | (99,580) | (92,911) | |
Accumulated other comprehensive loss | (1,476) | (3,637) | |
Total shareholders’ (deficit) equity | (5,284) | (21,436) | |
Non-controlling interests | 42,060 | 47,899 | |
Total equity | 36,776 | 26,463 | |
TOTAL LIABILITIES AND EQUITY | 191,968 | 214,270 | |
Related Party | |||
Current liabilities | |||
Amount due to related parties | 168 | 45,564 | |
Non-current liabilities | |||
Amount due to a related party | $ 43,330 | ||
Related Party | Previously Reported | |||
Current liabilities | |||
Amount due to related parties | $ 45,564 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Class A Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares shares authorized | 400,000,000 | 400,000,000 | |
Ordinary shares shares issued | 36,058,102 | 30,371,435 | |
Ordinary shares shares outstanding | 36,058,102 | 30,371,435 | |
Class B Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares shares authorized | 100,000,000 | 100,000,000 | |
Ordinary shares shares issued | 49,628,565 | 49,628,565 | |
Ordinary shares shares outstanding | 49,628,565 | 49,628,565 | |
Previously Reported | |||
Ordinary shares, par value (in Dollars per share) | $ 0.00005 | $ 0.00005 | |
Ordinary shares shares authorized | 746,578,037 | 746,578,037 | |
Ordinary shares shares issued | 225,000,000 | 225,000,000 | |
Ordinary shares shares outstanding | 225,000,000 | 225,000,000 | |
Convertible preferred shares par value (in Dollars per share) | $ 0.00005 | $ 0.00005 | |
Previously Reported | Series A preferred shares | |||
Convertible Preferred shares authorized | 45,614,646 | 45,614,646 | |
Convertible Preferred shares issued | 45,614,646 | 45,614,646 | |
Convertible Preferred shares outstanding | 45,614,646 | 45,614,646 | |
Previously Reported | Limited Series A preferred shares | |||
Convertible Preferred shares authorized | 27,053,437 | 27,053,437 | |
Convertible Preferred shares issued | 27,053,437 | 27,053,437 | |
Convertible Preferred shares outstanding | 27,053,437 | 27,053,437 | |
Previously Reported | Series B Preferred Stock [Member] | |||
Convertible Preferred shares authorized | 121,000,531 | 121,000,531 | |
Convertible Preferred shares issued | 121,000,531 | 121,000,531 | |
Convertible Preferred shares outstanding | 121,000,531 | 121,000,531 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2020 CNY (¥) shares | |
Revenues | ||||||||
Total revenues | $ 159,378 | $ 124,728 | $ 282,413 | $ 249,235 | $ 238,925 | |||
Operating costs and expenses | ||||||||
Integrated service cost | (87,854) | (76,717) | (166,793) | (156,852) | (131,932) | |||
Promotional service cost | (49,563) | (28,363) | (65,500) | (55,222) | (79,515) | |||
Selling expenses | (12,793) | (6,802) | (16,477) | (12,731) | (6,835) | |||
General and administrative expenses | (4,020) | (4,935) | (37,742) | (10,420) | (7,780) | |||
Research and development expenses | (4,020) | (1,930) | (8,478) | (3,651) | (5,029) | |||
Total operating costs and expenses | (158,250) | (118,747) | (294,990) | (238,876) | (231,091) | |||
Operating profit | 1,128 | 5,981 | (12,577) | 10,359 | 7,834 | |||
Other expenses | ||||||||
Financial expenses, net | (1,915) | (1,756) | (3,659) | (3,045) | (2,100) | |||
Investment income | 323 | 249 | 441 | 759 | 255 | |||
Other income, net | 2,450 | 3,139 | 5,121 | 2,457 | 2,385 | |||
Total other income, net | 858 | 1,632 | 1,903 | 171 | 540 | |||
Profit before income tax | 1,986 | 7,613 | (10,674) | 10,530 | 8,374 | |||
Income tax expense | (850) | (890) | (231) | (938) | (1,752) | |||
Income from continuing operations, net of tax | 1,136 | 6,723 | (10,905) | 9,592 | 6,622 | |||
Discontinued operations: | ||||||||
Net loss from the operations of the discontinued operations, net of tax | (1,031) | (994) | (27,682) | (16,397) | ||||
Net profit | 1,136 | 5,692 | (11,899) | ¥ (11,899) | (18,090) | ¥ (18,090) | (9,775) | ¥ (9,775) |
Foreign currency translation difference | (2,614) | (2,412) | (2,410) | 907 | 1,195 | |||
Total other comprehensive loss | (2,614) | (2,412) | (2,410) | 907 | 1,195 | |||
Total comprehensive income (loss) | (1,478) | 3,280 | (14,309) | (17,183) | (8,580) | |||
Less: total comprehensive income attributable to non-controlling interest | 2,068 | 800 | (9,801) | 6,839 | 4,791 | |||
Total comprehensive (loss) income attributable to SUNCAR TECHNOLOGY GROUP INC’s shareholders | (3,546) | 2,480 | (4,508) | (24,022) | (13,371) | |||
Net income from continuing operations | 1,136 | 6,723 | (10,905) | 9,592 | 6,622 | |||
Less: Net income attributable to non-controlling interests of continuing operations | 4,515 | 3,568 | (5,230) | 5,650 | 3,219 | |||
Net income (loss) from continuing operations attributable to SunCar Technology Group Inc’s ordinary shareholders | (3,379) | 3,155 | (5,675) | 3,942 | 3,403 | |||
Less: Net loss attributable to non-controlling interests of discontinue operations | (1) | (19) | (1) | |||||
Net loss from discontinued operations attributable to SunCar Technology Group Inc’s ordinary shareholders | (1,030) | (994) | (27,663) | (16,396) | ||||
Net income (loss) attributable to SunCar Technology Group Inc’s ordinary shareholders | $ (3,379) | $ 2,125 | $ (6,669) | $ (23,721) | $ (12,993) | |||
Net income (loss) per ordinary share from continuing operations: | ||||||||
Net income (loss) per ordinary share from continuing operations, Basic (in Dollars per share) | $ / shares | $ (0.04) | $ 0.04 | $ (0.03) | $ 0.01 | $ 0.01 | |||
Net income (loss) per ordinary share from continuing operations, Diluted (in Dollars per share) | $ / shares | (0.04) | 0.04 | (0.03) | 0.01 | 0.01 | |||
Net loss per ordinary share from discontinued operations: | ||||||||
Net loss per ordinary share from discontinued operations, Basic (in Dollars per share) | $ / shares | 0 | (0.01) | 0 | (0.12) | (0.07) | |||
Net income (loss) attributable to SunCar Technology Group Inc’s ordinary shareholders per ordinary share | ||||||||
Net income (loss) attributable to SunCar Technology Group Inc’s ordinary shareholders per ordinary share, Basic (in Dollars per share) (in Dollars per share) | $ / shares | $ (0.04) | $ 0.03 | $ (0.03) | $ (0.11) | $ (0.06) | |||
Weighted average shares outstanding used in calculating basic and diluted income (loss) per share | ||||||||
Weighted average shares outstanding used in calculating, Basic and diluted (in Shares) | shares | 81,374,609 | 80,000,000 | 225,000,000 | 225,000,000 | 225,000,000 | 225,000,000 | 225,000,000 | 225,000,000 |
Weighted average shares outstanding used in calculating basic and diluted income per share | ||||||||
Weighted average shares outstanding used in calculating basic and diluted income per share, Basic (in Shares) | shares | 418,668,614 | 418,668,614 | 418,668,614 | 418,668,614 | 418,668,614 | 418,668,614 | ||
Income from continuing operations before non-controlling interests | $ 1,136 | $ 6,723 | $ (10,905) | $ 9,592 | $ 6,622 | |||
Automotive after-sales service | ||||||||
Revenues | ||||||||
Revenues | 98,813 | 89,851 | 199,294 | 187,880 | 154,238 | |||
Total revenues | 98,813 | 89,851 | ||||||
Insurance intermediation service | ||||||||
Revenues | ||||||||
Revenues | 47,710 | 29,346 | 67,640 | 56,766 | 84,161 | |||
Total revenues | 47,710 | 29,346 | ||||||
Technology service | ||||||||
Revenues | ||||||||
Revenues | $ 12,855 | $ 5,531 | $ 15,479 | $ 4,589 | $ 526 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||||
Net income (loss) per ordinary share from continuing operations, Diluted | $ (0.04) | $ 0.04 | $ (0.03) | $ 0.01 | $ 0.01 |
Net loss per ordinary share from discontinued operations, Diluted | 0 | (0.01) | 0 | (0.12) | (0.07) |
Net income (loss) attributable to SunCar Technology Group Inc’s ordinary shareholders per ordinary share, Diluted | $ (0.04) | $ 0.03 | $ (0.03) | $ (0.11) | $ (0.06) |
Weighted average shares outstanding used in calculating basic and diluted income (loss) per share, Diluted (in Shares) | 81,374,609 | 80,000,000 | 225,000,000 | 225,000,000 | 225,000,000 |
Weighted average shares outstanding used in calculating basic and diluted income per share, Diluted (in Shares) | 418,668,614 | 418,668,614 | 418,668,614 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Changes in Equity ¥ in Thousands, $ in Thousands | Class A Ordinary Shares USD ($) shares | Class B Ordinary Shares USD ($) shares | Ordinary Shares CNY (¥) shares | Additional paid-in capital USD ($) | Additional paid-in capital CNY (¥) | Accumulated deficit USD ($) | Accumulated deficit CNY (¥) | Accumulated other comprehensive loss USD ($) | Accumulated other comprehensive loss CNY (¥) | Total Company’s shareholders’ equity/ (deficit) USD ($) | Total Company’s shareholders’ equity/ (deficit) CNY (¥) | Non-controlling interests USD ($) | Non-controlling interests CNY (¥) | Convertible Preferred Shares CNY (¥) shares | USD ($) | CNY (¥) |
Balance at Dec. 31, 2019 | ¥ | ¥ 11 | ¥ 61,919 | ¥ (56,197) | ¥ (2,958) | ¥ 2,785 | ¥ 22,739 | ¥ 10 | ¥ 25,524 | ||||||||
Balance (in Shares) at Dec. 31, 2019 | shares | 225,000,000 | 193,668,615 | ||||||||||||||
Contribution from non-controlling shareholders | ¥ | 14,432 | 14,432 | 18,665 | 33,097 | ||||||||||||
Repurchase of non-controlling interests | ¥ | (867) | (867) | (223) | (1,090) | ||||||||||||
Net profit | (12,993) | (12,993) | 3,218 | $ (9,775) | (9,775) | |||||||||||
Share-based compensation of subsidiary (Note 12) | ¥ | 520 | 520 | ||||||||||||||
Foreign currency translation | ¥ | (378) | (378) | 1,573 | 1,195 | ||||||||||||
Balance at Dec. 31, 2020 | ¥ | ¥ 11 | 75,484 | (69,190) | (3,336) | 2,979 | 46,492 | ¥ 10 | 49,471 | ||||||||
Balance (in Shares) at Dec. 31, 2020 | shares | 225,000,000 | 193,668,615 | ||||||||||||||
Repurchase of non-controlling interests | ¥ | (236) | (236) | (948) | (1,184) | ||||||||||||
Dividend paid to noncontrolling shareholders | ¥ | (6,620) | (6,620) | ||||||||||||||
Net profit | (23,721) | (23,721) | 5,631 | (18,090) | (18,090) | |||||||||||
Share-based compensation of subsidiary (Note 12) | ¥ | (157) | (157) | 2,136 | 1,979 | ||||||||||||
Foreign currency translation | ¥ | (301) | (301) | 1,208 | 907 | ||||||||||||
Balance at Dec. 31, 2021 | $ 3 | $ 5 | ¥ 11 | $ 75,104 | 75,091 | $ (92,911) | (92,911) | $ (3,637) | (3,637) | $ (21,436) | (21,436) | $ 47,899 | 47,899 | ¥ 10 | 26,463 | 26,463 |
Balance (in Shares) at Dec. 31, 2021 | shares | 30,371,435 | 49,628,565 | 225,000,000 | 193,668,615 | ||||||||||||
Repurchase of non-controlling interests | (274) | (274) | (233) | (507) | ||||||||||||
Net profit | 2,125 | 2,125 | 3,567 | 5,692 | ||||||||||||
Disposal Shengda Group (Note 3) | 21,874 | 21,874 | 2,168 | 24,042 | ||||||||||||
Share-based compensation of subsidiary (Note 12) | 830 | 830 | ||||||||||||||
Foreign currency translation | 355 | 355 | (2,767) | 2,412 | ||||||||||||
Balance at Jun. 30, 2022 | $ 3 | $ 5 | 96,704 | (90,786) | (3,282) | 2,644 | 51,464 | 54,108 | ||||||||
Balance (in Shares) at Jun. 30, 2022 | shares | 30,371,435 | 49,628,565 | ||||||||||||||
Balance at Dec. 31, 2021 | $ 3 | $ 5 | ¥ 11 | 75,104 | 75,091 | (92,911) | (92,911) | (3,637) | (3,637) | (21,436) | (21,436) | 47,899 | 47,899 | ¥ 10 | 26,463 | 26,463 |
Balance (in Shares) at Dec. 31, 2021 | shares | 30,371,435 | 49,628,565 | 225,000,000 | 193,668,615 | ||||||||||||
Repurchase of non-controlling interests | ¥ | (276) | (276) | (234) | (510) | ||||||||||||
Net profit | (6,669) | (6,669) | (5,230) | (11,899) | (11,899) | |||||||||||
Disposal Shengda Group (Note 3) | ¥ | 21,059 | 21,059 | 2,163 | 23,222 | ||||||||||||
Share-based compensation of subsidiary (Note 12) | ¥ | (123) | (123) | 2,033 | 1,910 | ||||||||||||
Foreign currency translation | ¥ | 2,161 | 2,161 | (4,571) | (2,410) | ||||||||||||
Balance at Dec. 31, 2022 | $ 3 | $ 5 | ¥ 11 | 95,764 | ¥ 95,751 | (99,580) | ¥ (99,580) | (1,476) | ¥ (1,476) | (5,284) | ¥ (5,284) | 42,060 | ¥ 42,060 | ¥ 10 | 36,776 | ¥ 36,776 |
Balance (in Shares) at Dec. 31, 2022 | shares | 30,371,435 | 49,628,565 | 225,000,000 | 193,668,615 | ||||||||||||
Adoption of ASC326 | (241) | (241) | (266) | (507) | ||||||||||||
Reverse recapitalization | (2,506) | (2,506) | (2,506) | |||||||||||||
Reverse recapitalization (in Shares) | shares | 2,743,010 | |||||||||||||||
Conversion of Public Rights | ||||||||||||||||
Conversion of Public Rights (in Shares) | shares | 610,000 | |||||||||||||||
Equity financing through Private Placement (Note 11) | $ 1 | 21,736 | 21,737 | 21,737 | ||||||||||||
Equity financing through Private Placement (Note 11) (in Shares) | shares | 2,173,657 | |||||||||||||||
Shares issued to Trans Asia (Note 11) | ||||||||||||||||
Shares issued to Trans Asia (Note 11) (in Shares) | shares | 160,000 | |||||||||||||||
Offering costs | (910) | (910) | (910) | |||||||||||||
Net profit | (3,379) | (3,379) | 4,515 | 1,136 | ||||||||||||
Share-based compensation of subsidiary (Note 12) | 776 | 776 | ||||||||||||||
Foreign currency translation | (167) | (167) | (2,447) | (2,447) | ||||||||||||
Balance at Jun. 30, 2023 | $ 4 | $ 5 | $ 114,084 | $ (103,200) | $ (1,643) | $ 9,250 | $ 44,638 | $ 53,888 | ||||||||
Balance (in Shares) at Jun. 30, 2023 | shares | 36,058,102 | 49,628,565 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net profit from continuing operations | $ 1,136 | $ 6,723 | $ (10,905) | $ 9,592 | $ 6,622 |
Net loss from discontinued operations | (1,031) | (994) | (27,682) | (16,397) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||
Provision for doubtful accounts | (3,694) | 245 | 25,981 | 148 | 39 |
Depreciation and amortization | 2,840 | 2,077 | 5,078 | 4,055 | 1,613 |
Amortization of right-of-use assets | 350 | 619 | |||
Share-based compensation of subsidiary | 776 | 830 | 1,599 | 1,668 | 520 |
Loss on disposal of software and equipment | 2 | 27 | 29 | ||
Change in deferred taxes | (207) | (249) | (1,951) | (1,124) | (2,333) |
Fair value income from Short-term investments | (323) | ||||
Changes in operating assets and liabilities: | |||||
Accounts receivable, net | 10,353 | (13,894) | (32,640) | (35,071) | 1,531 |
Prepaid expenses and other current asset, net | (38,757) | (1,084) | (3,850) | 3,181 | (4,065) |
Accounts payable | 7,647 | (17,696) | (5,019) | 13,608 | 53 |
Deferred revenue | 1,858 | 813 | (2,419) | ||
Contract liabilities | 497 | 548 | |||
Accrued expenses and other current liabilities | (787) | 916 | 2,548 | (14,976) | 8,356 |
Tax payable | (202) | (86) | (280) | (1,026) | 1,582 |
Operating lease liabilities | (321) | (615) | |||
Amount due to related parties | 167 | 1,185 | 1,485 | ||
Net cash used in operating activities of continuing operations | (20,525) | (20,483) | (16,092) | (19,105) | 11,528 |
Net cash used in operating activities of discontinued operations | (54) | (52) | (6,462) | 7,104 | |
Total net cash used in operating activities | (20,525) | (20,537) | (16,144) | (25,567) | 18,632 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of software and equipment | (577) | (1,082) | (4,351) | (1,284) | (9,488) |
Purchase short-term investment | (105) | (9,839) | (10,084) | ||
Purchase of long-term investment | (297) | ||||
Proceeds from sale of short-term investment | 4,784 | 149 | |||
Purchase of other non-current assets | (3,310) | (1,200) | (8,968) | (9,168) | |
Net cash (used in) provided by investing activities of continuing operations | 897 | (1,187) | (5,402) | (20,091) | (29,037) |
Net cash used in investing activities of discontinued operations | (537) | (517) | (591) | (126) | |
Total net cash (used in) provided by investing activities | 897 | (1,724) | (5,919) | (20,682) | (29,163) |
CASH FLOWS FORM FINANCING ACTIVITIES | |||||
Proceeds from short-term bank loans | 68,271 | 70,564 | 122,249 | 76,812 | 77,722 |
Repayments of short-term bank loans | (53,418) | (43,942) | (111,103) | (70,193) | (60,036) |
Contribution from non-controlling shareholders | 33,097 | ||||
Repurchase of non-controlling interests | (496) | (510) | (1,184) | (1,090) | |
Dividend paid to non-controlling shareholders | (6,620) | ||||
Proceeds from Private Placement | 21,737 | ||||
Net cash paid on reverse recapitalization | (482) | ||||
Payment for the offering cost | (623) | ||||
Net cash provided by financing activities of continuing operations | 35,485 | 26,126 | 10,636 | (1,185) | 49,693 |
Net cash provided by financing activities of discontinued operations | 1,119 | (5,816) | |||
Total net cash provided by financing activities | 35,485 | 26,126 | 10,636 | (66) | 43,877 |
Effect of exchange rate changes | (1,661) | (1,463) | (2,573) | 1,827 | 3,098 |
Net change in cash and restricted cash | 14,196 | 2,402 | (14,000) | (44,488) | 36,444 |
Cash and restricted cash, beginning of the period | 23,917 | 37,917 | 37,917 | 82,405 | 45,961 |
Cash and restricted cash, end of the period | 38,113 | 39,749 | 23,917 | 37,917 | 82,405 |
Less: cash of discontinued operations at end of the period | 570 | 2,856 | |||
Cash and restricted cash at end of the period for continuing operations | 38,113 | 39,749 | 23,917 | 37,347 | 79,549 |
Reconciliation of cash and restricted cash to the consolidated balance sheets: | |||||
Cash | 35,460 | 36,958 | 21,200 | 34,517 | 76,883 |
Restricted cash | 2,653 | 2,791 | 2,717 | 2,830 | 2,666 |
Total cash and restricted cash | 38,113 | 39,749 | 23,917 | 37,347 | 79,549 |
Supplemental disclosures of cash flow information: | |||||
Income tax paid | 1,128 | 1,108 | 2,459 | 3,472 | 2,309 |
Interest expense paid | 1,704 | 2,271 | 3,780 | 3,087 | 2,485 |
Supplemental disclosures of non-cash activities: | |||||
Disposal of Shengda Group | 24,042 | 23,222 | |||
Decrease of accrued expenses and other current liabilities due to vest of restricted shares | 311 | 311 | |||
Purchase of software and equipment by using accrued expenses and other current liabilities | 1,720 | ||||
Obtaining right-of-use assets in exchange for operating lease liabilities and prepaid expenses | 972 | ||||
Software and equipment transferred from other non-current assets | 12,150 | ||||
Previously Reported | |||||
CASH FLOWS FORM FINANCING ACTIVITIES | |||||
Cash and restricted cash, beginning of the period | $ 23,917 | $ 37,347 | 37,347 | ||
Cash and restricted cash, end of the period | $ 23,917 | $ 37,347 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Organization and Principal Activities [Abstract] | ||
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Auto Services Group Limited (“SunCar”) was incorporated under the laws of the British Virgin Islands (“BVI”) on September 19, 2012 and continued in the Cayman Islands in accordance with applicable laws. On May 23, 2022, SunCar entered into the Agreement and Plan of Merger (“Merger Agreement”) with Goldenbridge Acquisition Limited (“Goldenbridge”), SunCar Technology Group Inc. (“SunCar Tchnology”, or the “Company”), and SunCar Technology Global Inc (the “Merger Sub”), a Cayman Islands exempted company and wholly owned subsidiary of SunCar Technology. Pursuant to the Merger Agreement, at the closing of the transactions contemplated by the Merger Agreement (the “Closing”), (i) Goldenbridge was merged with and into SunCar Technology, the separate corporate existence of Goldenbridge ceasing and SunCar Technology continuing as the surviving corporation; (ii) the Merger Sub was merged with and into SunCar, the Merger Sub ceasing and SunCar continuing as the surviving company in the acquisition. The Company, through its wholly-owned subsidiaries (collectively, the “Group”) primarily engages in providing automotive after-sales service, insurance intermediation service and technology service in the People’s Republic of China (“PRC” or “China”). Reverse recapitalization On May 17, 2023 (the “Closing Date”), Goldenbridge and SunCar Technology consummated the closing of the transaction of Goldenbridge and SunCar Technology, following the approval at a Special Meeting of the shareholders on April 14, 2023. Following the consummation of the transaction, Goldenbridge as a wholly-owned subsidiary of SunCar Technology and the outstanding shares of Goldenbridge being converted into the right to receive shares of SunCar Technology, the combined company will retain the SunCar Technology name. SunCar was determined to be the accounting acquirer given it effectively controlled the combined entity after the transaction. The transaction is not a business combination because Goldenbridge was not a business. The transaction is accounted for as a reverse recapitalization, which is equivalent to the issuance of shares by SunCar for the net monetary assets of the Company, accompanied by a recapitalization. SunCar is determined as the accounting acquirer and the historical financial statements of SunCar became the Company’s historical financial statements, with retrospective adjustments to give effect of the reverse recapitalization. All of the Ordinary Shares and Convertible Preferred Shares of SunCar that were issued and outstanding immediately prior to the mergers were cancelled and converted into an aggregate of 30,371,435 Class A Ordinary Shares and 49,628,565 Class B Ordinary Shares, which has been restated retrospectively to reflect the equity structure of the Company. Net income per share is retrospectively restated using the historical weighted-average number of ordinary shares outstanding multiplied by the exchange ratio. The par value of ordinary shares changed from $0.00005 to $0.0001, the difference of $3 was adjusted retrospectively as in addition paid-in capital as of December 31, 2022. The unaudited condensed consolidated statements of changes in shareholders’ equity for the six months ended June 30, 2022 and 2023 were also adjusted retrospectively to reflect these changes. The weighted average number of ordinary shares outstanding used in computing net income per ordinary share - basic and diluted was adjusted retrospectively from 418,668,614 to 80,000,000 for the six months ended June 30, 2022. The net income per share before and after the retrospective adjustments are as follows. For the Six Months Ended Before After Net income from continuing operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.01 $ 0.04 Net loss from discontinued operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ - $ (0.01 ) Net income attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.01 $ 0.03 Disposal of Shengda Automobile Service Group Co. Limited (“Shengda Group”) On March 1, 2022, the Group transferred the total equity of one of its subsidiaries, Shengda Group, to a related party at a nominal consideration of RMB1, for the purpose of focusing on providing automotive after-sales service and insurance intermediation service (See Note 3 Discontinued Operations). As of June 30, 2022, the disposal of Shengda Group was completed. | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES AUTO SERVICES GROUP LIMITED (the “Company”, or “SunCar”), through its wholly-owned subsidiaries (collectively, the “Group”) primarily engages in providing automotive after-sales service, insurance intermediation service and technology service in the People’s Republic of China (“PRC” or “China”). SunCar was incorporated under the laws of the British Virgin Islands (“BVI”) on September 19, 2012 and continued in the Cayman Islands in accordance with applicable laws, and ultimately controlled by Mr. Ye Zaichang, SunCar’s Chief Executive Officer. Sun Car Online Insurance Agency Co., Ltd. (“SUNCAR Online”) was incorporated under the laws of PRC on December 5, 2007, and along with its subsidiaries, are the Group’s main operating entities in China. Prior to March 2022, the Group also engaged in the business of financial leasing through its subsidiaries, Shengda Automobile Service Group Co. Limited (“Shengda Group”). During the year ended December 31, 2021, the Group reached a resolution to dispose Shengda Group. On March 1, 2022, the Group transferred the total equity of Shengda Group, to a related party at a nominal consideration of RMB1, for the purpose of focusing on providing automotive after-sales service and insurance intermediation service (See Note 3 Discontinued Operations). As of December 31, 2022, the disposal of Shengda Group was completed. As of December 31, 2022, SunCar’s major subsidiaries are as follows: Name Date of Place of Percentage of Principal Activities Shanghai Xuanbei Automobile Service Co., Limited (“Shanghai Xuanbei”) April 26, 2018 PRC 100.00 % Automotive after-sales service Shanghai Shengshi Dalian Automobile Service Co., Limited (“Shengda Automobile”) June 8, 2013 PRC 84.89 % Automotive after-sales service Sun Car Online Insurance Agency Co., Ltd. (“SUNCAR Online”) December 5, 2007 PRC 56.51 % Insurance intermediation service Haiyan Trading (Shanghai) Co., Limited (“Haiyan”) November 22, 2012 PRC 100.00 % Holding company Shanghai Feiyou Trading Co., Limited (“Shanghai Feiyou”) June 11, 2009 PRC 100.00 % Technology services |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. The accompanying unaudited condensed financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the years ended December 31, 2020, 2021 and 2022. The unaudited condensed consolidated financial statements include the financial statements of SunCar Technology and its subsidiaries. All intercompany transactions and balances among SunCar Technology and its subsidiaries have been eliminated upon consolidation. (b) Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the condensed consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for doubtful accounts, useful lives and impairment of long-lived assets, and valuation allowances of deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the unaudited condensed consolidated financial statements. (c) Accounts receivable, net Accounts receivable, net are stated at the original amount less allowances for doubtful accounts. Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Group considers many factors in assessing the collectability of its receivables, such as the age of the amounts due, the customer’s payment history, credit-worthiness and other specific circumstances related to the accounts. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. Adoption of Accounting Standards Update (“ASU”) 2016-13 In June 2016, the FASB issued ASU 2016-13: Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The Group adopted ASU 2016-13 from January 1, 2023 using modified-retrospective transition approach with a cumulative-effect adjustment to shareholders’ equity amounting to $507 recognized as of January 1, 2023. (d) Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2—Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash, accounts receivable, other receivables included in prepayments and other current assets, short-term borrowings, accounts payable, other payables included in accrued expenses and other current liabilities. As of December 31, 2022 and June 30, 2023, the carrying amounts of other financial instruments approximated to their fair values due to the short-term maturity of these instruments. The Group’s non-financial assets, such as software and equipment, would be measured at fair value only if they were determined to be impaired. (e) Revenue recognition The Group’s revenues are mainly generated from providing automotive after-sales service, insurance intermediation service and technology service. The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by Value Added Tax (“VAT”). To achieve the core principle of this standard, we applied the following five steps: 1. Identification of the contract, or contracts, with the customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of the revenue when, or as, a performance obligation is satisfied. Automotive after-sales service The Group defines enterprise clients as the Group’s customers and the Group sells automotive after-sales service coupons to enterprise clients, which each coupon represents one specific automotive after-sales 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 the service is provided, or when the service coupon expires. The Group does not provide refunds to customers when a coupon is expired but not used. Insurance intermediation service The Group provides insurance intermediation service distributing primarily vehicle insurance on behalf of the insurance companies and charges insurance companies for intermediation service commissions. Insurance intermediation services are considered to be rendered and completed, and revenue is recognized, at the time an insurance policy becomes effective, that is, when the signed insurance policy is in place and the premium is collected from the insured. The Group has satisfied the performance obligation to recognize revenue when the premiums are collected by the respective insurance companies and not before, because collectability is not ensured until receipt of the premium. Accordingly, the Group does not accrue any insurance intermediation 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. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has an unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets as of December 31, 2022 and June 30, 2023. The contract liabilities consist of the billings or cash received for services in advance of revenue recognition and is recognized as revenue the performance obligation is satisfied. The Group’s contract liabilities amounted to $3,569 and $3,870 as of December 31, 2022 and June 30, 2023, respectively. During the six months ended June 30, 2022 and 2023, the Group recognized $1,901 and $3,569 that was included in contract liabilities balance at January 1, 2022 and 2023, respectively. (f) Warrants The Group accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and ASC 815, “Derivatives and Hedging” (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the Private Warrants was estimated using a Black-Scholes model. (g) Foreign currency transactions and translations The Group’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Group’s financial statements are reported using U.S. Dollars (“$”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the results of operations. The value of RMB against $ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Group’s financial condition in terms of $ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: December 31, June 30, Balance sheet items, except for equity accounts 6.8972 7.2513 For the Six Months Ended 2022 2023 Items in the statements of income and comprehensive income, and statements of cash flows 6.4835 6.9283 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. (h) Recent accounting pronouncements The Group is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Group has evaluated pronouncements recently issued but not yet adopted. The adoption of these pronouncements is not expected to have a material impact or are unrelated to the Group’s consolidated financial condition, results of operations, cash flows or disclosures. | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of SunCar and its subsidiaries. All intercompany transactions and balances among SunCar and its subsidiaries have been eliminated upon consolidation. For consolidated subsidiaries where the Group’s ownership in the subsidiary is less than 100%, the equity interest not held by the Group is shown as non-controlling interests. (b) Use of estimates The preparation of the consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for doubtful accounts, useful lives and impairment of long-lived assets, and valuation allowances of deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (c) Cash Cash consist of cash on hand and cash in banks. The Group maintains cash with various financial institutions in China. The Group has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. (d) Restricted cash Restricted cash represented a guaranteed deposit required by China Banking and Insurance Regulatory Commission (“CBIRC”) in order to protect insurance premium appropriation by insurance agency which is restricted as to withdrawal for other than current operations. (e) Accounts receivable, net Accounts receivable, net are stated at the original amount less allowances for doubtful accounts. Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Group considers many factors in assessing the collectability of its receivables, such as the age of the amounts due, the customer’s payment history, credit-worthiness and other specific circumstances related to the accounts. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. (f) Short-term investment The Group invested in certain trust products and bank financial products, with various interest rates and are restricted as to withdrawal and use before maturity. The Group classifies the trust and financial products as held-to-maturity securities. The original maturities of the short-term investments are longer than three-months, but shorter than one year. The carrying amount of these short-term investments approximate their fair values due to the short-term maturities of these investments. The Group reviews its short-term investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidences in evaluating the potential impairment of its short-term investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the carrying amount, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidation statements of operations. No impairment charge was recognized for the years ended December 31, 2020, 2021 and 2022. (g) Software and equipment, net Software and equipment are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives and residual value are as follows: Category Estimated useful lives Residual Vehicles 3-5 years 5% Office equipment and furniture 3-5 years 5% Electronic equipment 3 years 5% Computer software 5, 10 years nil Leasehold improvements Over the shorter of lease term or the estimated useful lives of the assets nil Others 3-10 years 5% Computer software Acquisition costs associated with internal-use software are capitalized and include external direct costs of services principally related to platform development, including support systems, software coding, designing system interfaces, and installation and testing of the software. These costs are recorded as software and equipment and are generally amortized beginning when the asset is substantially ready for use. Costs incurred for enhancements that are expected to result in additional features or functionalities are capitalized and amortized over the estimated useful life of the enhancements. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extends the useful lives of software and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements of operations and comprehensive loss. (h) Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, which is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. (i) Long-term investments Beginning on January 1, 2018, the Group’s equity investments without readily determinable fair values, which do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), to estimate fair value using the net asset value per share (or its equivalent) of the investment (“NAV practical expedient”), and over which the Group does not have the ability to exercise significant influence through the investments in common stock or in substance common stock, are accounted for under the measurement alternative upon the adoption of ASU 2016-01 (the “Measurement Alternative”). Under the Measurement Alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. All gains and losses on these investments, realized and unrealized, are recognized in the consolidated statements of operations and comprehensive income/(loss). The Group makes assessment of whether an investment is impaired based on performance and financial position of the investee as well as other evidence of market value at each reporting date. Such assessment includes, but is not limited to, reviewing the investee’s cash position, recent financing, as well as the financial and business performance. The Group recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated statements of operations and comprehensive income/(loss) if any. On November 20, 2019, Jiaxing Hanchao Equity Investment Partnership (L.P.) (“Jiaxing Hanchao”) was incorporated. Pursuant to the partnership agreement, SUNCAR Online invested $290, accounting for 5% of the total investment as a limited partner. The investment was accounted for under the cost method as the Group had no significant influence over the investee and Jiaxing Hanchao had no readily determinable fair value. (j) Accounts payabl e Accounts payable is payable to suppliers in the procurement of service to automotive after-sales service providers to customized services for end consumers of the enterprise clients, and promotional service to channels. (k) Short-term loan Short-term loan represents the Group’s borrowings from commercial banks for the Group’s working capital. Short-term loan includes borrowings with maturity terms shorter than one year. (l) Related Party Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, stockholder, or a related corporation. (m) Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Acc ounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2—Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those fut Financial assets and liabilities of the Group primarily consist of cash, accounts receivable, other receivables included in prepayments and other current assets, short-term borrowings, accounts payable, other payables included in accrued expenses and other current liabilities. As of December 31, 2021 and 2022, the carrying amounts of other financial instruments approximated to their fair values due to the short-term maturity of these instruments. The Group’s non-financial assets, such as software and equipment, would be measured at fair value only if they were determined to be impaired. (n) Revenue recognition The Group’s revenues are mainly generated from providing automotive after-sales service, insurance intermediation service, technology service and financial leasing service. The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by Value Added Tax (“VAT”). To achieve the core principle of this standard, we applied the following five steps: 1. Identification of the contract, or contracts, with the customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of the revenue when, or as, a performance obligation is satisfied. Automotive after-sales service The Group defines enterprise clients as the Group’s customers and the Group sells automotive after-sales service coupons to enterprise clients, which each coupon represents one specific automotive after-sales 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 the service is provided, or when the service coupon expires. The Group does not provide refunds to customers when a coupon is expired but not used. Insurance intermediation service The Group provides insurance intermediation service distributing primarily vehicle insurance on behalf of the insurance companies and charges insurance companies for intermediation service commissions. Insurance intermediation services are considered to be rendered and completed, and revenue is recognized, at the time an insurance policy becomes effective, that is, when the signed insurance policy is in place and the premium is collected from the insured. The Group has satisfied the performance obligation to recognize revenue when the premiums are collected by the respective insurance companies and not before, because collectability is not ensured until receipt of the premium. Accordingly, the Group does not accrue any insurance intermediation 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. The Group’s revenue are disaggregated by timing of revenue recognition as follows: For the years ended December 31, 2020 2021 2022 Revenue recognized at a point of time $ 238,399 $ 244,646 $ 266,934 Revenue recognized over time 526 4,589 15,479 Revenues $ 238,925 $ 249,235 $ 282,413 Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has an unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets as of December 31, 2021 and 2022. The contract liabilities consist of deferred revenue, which represents the billings or cash received for services in advance of revenue recognition and is recognized as revenue the performance obligation is satisfied. The Group’s deferred revenue amounted to $1,901 and $3,569 as of December 31, 2021 and 2022, respectively. During the years ended December 31, 2020, 2021 and 2022, the Group recognized $3,328, $1,053 and $1,901 that was included in deferred revenue balance at January 1, 2020, 2021 and 2022, respectively. (o) Integrated service cost Integrated service cost primarily includes the service fee paid to suppliers undertaking and performing the automobile service to the users of customer, and outsourcing service fee paid to the third party for technological development. The service fee is determined based on the actual services rendered and recognized in the period incurred. (p) Promotional service expenses Promotional service expenses represent (i) promotional service fee to explore extensive networks of automotive after-sales service and insurance intermediation; and (ii) service fees to promotion channels, including but not limited to offline after-sales networks, online platforms, and emerging new energy vehicle original equipment manufacturers (“NEV OEMs”) and service providers. These channels have their own users, who are potential business customers. Promotional service expenses are recognized in the period incurred. (q) Research and development expense Research and development expenses consist primarily of payroll and employee benefit for research and development employees, rental expense, utilities and other related expenses related to design, develop and maintain technology service platform to support the Group’s internal and external business. Research and development expenses are expensed as incurred. Software development costs are recorded in “Research and development” as incurred as the costs qualifying for capitalization have been insignificant. (r) Government grants Government grant is recognized when there is reasonable assurance that the Group will comply with the conditions attach to it and the grant will be received. Government grant for the purpose of giving immediate financial support to the Group with no future related costs or obligation is recognized in “other income” in the Group’s consolidated statements of comprehensive loss when the grant is received. For the years ended December 31, 2020, 2021 and 2022, the Group received government grants from the local PRC government authorities aggregately of $1,566, $1,897, $3,753, respectively, among which the government grants related to achievement of annual income tax filling target and value-added tax deduction were $1,322, $1,729, $3,426, respectively, and the awards to high-tech enterprises were $244, $168, $327, respectively. (s) Share-based compensation The Group grants restricted share units (“RSUs”) of SunCar’s subsidiary, SUNCAR Online, to eligible employees and management. The Group accounts for share-based awards issued to employees and non-employees in accordance with ASC Topic 718 Compensation – Stock Compensation. The Group recognizes compensation cost for an equity classified award using the straight-line method over the applicable vesting period based on the fair value of restricted shares granted on the date of the grant. Awards of subsidiary equity is recognized in “non-controlling interest” in the consolidated entity. (t) Employee benefits SunCar’s subsidiaries in PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. (u) Leases The Group leases facilities in the PRC under non-cancellable operating leases expiring on different dates. On January 1, 2022, the Company adopted ASU No. 2016-02 (Topic 842) “Leases” using the optional transition method. Results and disclosure requirements for reporting periods beginning after January 1, 2022 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases. At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Group assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The main impact of the adoption of the standard is that assets and liabilities amounting to $972 and $939, respectively, were recognized beginning January 1, 2022 for leased office space with terms of more than 12 months. The Company accounts for short-term leases with terms less than 12 months in accordance with ASC 842-20-25-2 to recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The adoption of the standard did not have a significant impact on the Group’s consolidated financial statements. Right-of-use (“ROU”) assets represent the Group’s rights to use underlying assets for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease ROU assets The right-of-use assets are initially measured at cost, which comprise the initial amounts of the lease liabilities adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Operating lease liabilities Lease liabilities are initially measured at the present value of the outstanding lease payments at the commencement date, discounted using the discount rate for the leases. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The Group’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease liabilities are measured at amortized cost using the effective interest rate method. They are re-measured when there is a change in future lease payments, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if there is any change in the Group assessment of option purchases, contract extensions or termination options. (v) Income taxes The Group accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group has 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. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Group’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000($14,358). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Group did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line of its consolidated statements of operations for the years ended December 31, 2020, 2021 and 2022, respectively. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. (w) Value added tax (“VAT”) The Group is subject to VAT and related surcharges on revenue generated from providing automotive after-sales service, insurance intermediation service, and financial leasing service. The Group records revenue net of VAT. This VAT may be offset by qualified input VAT paid by the Group to suppliers. Net VAT balance between input VAT and output VAT is recorded in the line item of other current assets on the consolidated balance sheets. (x) Foreign currency transactions and translations The Group’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Group’s financial statements are reported using U.S. Dollars (“$”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the results of operations. The value of RMB against $ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Group’s financial condition in terms of $ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: As of December 31, 2021 2022 Balance sheet items, except for equity accounts 6.3726 6.8972 For the Years Ended December 31, 2020 2021 2022 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.9042 6.4508 6.7290 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. (y) Non-controlling interest A non-controlling interest in a subsidiary of SunCar represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to SunCar. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheets and net income/(loss) and other comprehensive income/(loss) attributable to non-controlling shareholders are presented as a separate component on the consolidated statements of operations and comprehensive loss. (z) Earnings/(Loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders, taking into consideration the deemed dividends to preferred shareholders (if any), by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Shares issuable for little to no consideration upon the satisfaction of certain conditions are considered as outstanding shares and included in the computation of basic earnings (loss) per share as of the date that all necessary conditions have been satisfied. Net losses are not allocated to other participating securities if based on their contractual terms they are not obligated to share the losses. The Group’s convertible preferred shares are participating securities, as they have contractual non-forfeitable right to participate |
Discontinued Operations
Discontinued Operations | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Discontinued Operations [Abstract] | ||
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with Jiachen Information Technology (Shanghai) Co., Ltd., an affiliate of Mr. Ye Zaichang, to transfer the total equity of Shengda Group at a nominal consideration of RMB1 due to the net liability position of Shengda Group as of the transfer date, and the transfer was accounted for as a capital transaction. At the same time, China Auto Market Group Limited., subsidiary of the Group, transferred its 25% equity interest of Shanghai Financial Leasing and Shenglian Finance Leasing (Tianjin) Co., Ltd, subsidiaries of Shengda Group, to a then related party YSY GROUP LIMITED (“YSY”), which at the time was an affiliate of Mr. Ye Zaichang, with the consideration of RMB1. YSY is currently 100% controlled by ASTS Holdings limited (“ASTS”), a British Virgin Islands incorporated company. The address of ASTS is Intershore Chambers, Road Town, Tortola, British Virgin Islands. ASTS is 100% controlled by Mr. Li Qin, a Hong Kong citizen. The agreements have been approved by an independent committee of the Group’s Board of Directors and the disposal transaction was completed as of March 1, 2022. As the business of Shengda Group and its subsidiaries represents a separate major line of business of the Group as of the held-for-sale date, which is in December 2021, the disposition was considered as a strategic shift that had a major effect on operations and financial results of the Group. The Group disclosed the results of the business of Shengda Group and its subsidiaries as discontinued operations. As the disposal of Shengda Group was under common control, the Group recognized additional paid-in capital of $21,874 and non-controlling interest of $2,168 on deconsolidation, which was equal to the difference on the deconsolidation date between: (i) the aggregate of (a) the consideration received, (b) the carrying amount of non-controlling interest in Shengda Group, less (ii) the carrying amount of Shengda Group’s assets and liabilities. No gain or loss was recorded as the result of the disposal. The comparative consolidated statements of operations have been represented to show the discontinued operations separately from continuing operations. Details of the results from discontinued operations, net of tax are set out below: For the Six Months Ended 2022* 2023 Interest income $ 147 $ - Interest cost and operating expenses (1,177 ) - Loss from discontinued operations before income tax (1,030 ) - Income tax expense (1 ) - Net Loss from discontinued operations, net $ (1,031 ) $ - * The result of discontinued operations included those of discontinued operations from January 1, 2022 to March 1, 2022. | 3. DISCONTINUED OPERATIONS On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with Jiachen Information Technology (Shanghai) Co., Ltd., an affiliate of Mr. Ye Zaichang, to transfer the total equity of Shengda Group at a nominal consideration of RMB1 due to the net liability position of Shengda Group as of the transfer date, and the transfer was accounted for as a capital transaction. At the same time, China Auto Market Group Limited., subsidiary of the Group, transferred its 25% equity interest of Shanghai Financial Leasing and Shenglian Finance Leasing (Tianjin) Co., Ltd, subsidiaries of Shengda Group, to a related party YSY GROUP LIMITED (“YSY”), an affiliate of Mr. Ye Zaichang at the time (Mr. Ye Zaichang has not been affiliated to YSY since August 3, 2022), with the consideration of RMB1. The agreements have been approved by an independent committee of the Group’s Board of Directors and the disposal transaction was completed as of March 1, 2022. As the business of Shengda Group and its subsidiaries represents a separate major line of business of the Group as of the held-for-sale date, which is in December 2021, the disposition was considered as a strategic shift that had a major effect on operations and financial results of the Group. The Group disclosed the results of the business of Shengda Group and its subsidiaries as discontinued operations. As the disposal of Shengda Group was under common control, the Group recognized additional paid-in capital of $21,059 and non-controlling interest of $2,163 on deconsolidation, which was equal to the difference on the deconsolidation date between: (i) the aggregate of (a) the consideration received, (b) the carrying amount of non-controlling interest in Shengda Group, less (ii) the carrying amount of Shengda Group’s assets and liabilities. No gain or loss was recorded as the result of the disposal. Accordingly, assets, liabilities, interest income and expenses and cash flows have been reclassified into consolidated financial statements as discontinued operations for all periods presented. The assets and liabilities are included in the captions “Current assets of discontinued operations”, “Non-current assets of discontinued operations”, “Current liabilities of discontinued operations” and “Non-current liabilities of discontinued operations”. The carrying amount of the major classes of assets and liabilities of discontinued operations presented in the consolidated balance sheets as of December 31, 2021 and 2022 consisted of the following: As of December 31, 2021 2022 ASSETS Current assets Cash $ 570 $ - Prepaid expenses and other current assets 3,305 - Total current assets 3,875 - Noncurrent assets Long-term investment 169 - Long-term receivables 4,597 - Property, plant and equipment, net 234 - Total noncurrent assets 5,000 - TOTAL ASSETS 8,875 - LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities Short-term loan 1,569 - Accounts payable 161 - Advance from customers 470 - Accrued expenses and other current liabilities 15,726 - Tax payable 9,408 - Total current liabilities 27,334 - Noncurrent liabilities Other long-term liabilities 52,659 - Total noncurrent liabilities 52,659 - Total liabilities $ 79,993 $ - The comparative consolidated statements of operations have been represented to show the discontinued operations separately from continuing operations. Details of the results from discontinued operations, net of tax are set out below: For the years ended December 31, 2020 2021 2022* Interest income $ 3,280 $ 1,884 $ 142 Interest cost (5,916 ) (7,322 ) (457 ) Net interest loss (2,636 ) (5,438 ) (315 ) Operating expenses Selling expenses (535 ) (235 ) (22 ) General and administrative expenses (11,168 ) (12,998 ) (760 ) Total operating expenses (11,703 ) (13,233 ) (782 ) Operating loss (14,339 ) (18,671 ) (1,097 ) Other income (expenses) Financial expenses, net (719 ) (604 ) (70 ) Investment income/(loss) (1,778 ) 6 - Other income, net 553 878 174 Total other (expenses) income, net (1,944 ) 280 104 Loss before income tax expense (16,283 ) (18,391 ) (993 ) Income tax expense (114 ) (9,291 ) (1 ) Loss from discontinued operations, net (16,397 ) (27,682 ) (994 ) Less: Net loss attributable to non-controlling interests (1 ) (19 ) - Net loss from discontinued operations attributable to SunCar’s ordinary shareholders $ (16,396 ) $ (27,663 ) $ (994 ) * The result of discontinued operations included those of discontinued operations from January 1, 2022 to March 1, 2022. |
Segment Information
Segment Information | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Segment Information [Abstract] | ||
SEGMENT INFORMATION | 4. SEGMENT INFORMATION The CODM reviews financial information of operating segments based on internal management report when making decisions about allocating resources and assessing the performance of the Group. As a result of the assessment made by CODM, the Group has two reportable segments for continuing operations, including automotive after-sales service business and insurance intermediation service business. The Group’s CODM evaluates performance based on the operating segment’s revenue and their operating results. The revenue and operating results by segments were as follows: For the Six Months Ended June 30, 2023 Automotive Insurance Others Consolidated Revenues from external customers $ 98,813 $ 47,710 $ 12,855 $ 159,378 Depreciation and amortization $ (1,884 ) $ (1,278 ) $ (28 ) $ (3,190 ) Segment income (loss) before tax $ 6,332 $ (938 ) $ (3,408 ) $ 1,986 For the Six Months Ended June 30, 2022 Automotive Insurance Others Consolidated Revenues from external customers $ 89,851 $ 29,346 $ 5,531 $ 124,728 Depreciation and amortization $ (1,633 ) $ (407 ) $ (37 ) $ (2,077 ) Segment income (loss) before tax $ 8,466 $ (819 ) $ (34 ) $ 7,613 The total assets from continuing operations by segments as of December 31, 2022 and June 30, 2023 were as follows: December 31, June 30, 2022 2023 Segment assets Automotive after-sales service $ 113,992 $ 136,841 Insurance intermediation service 68,123 66,893 Others 9,853 20,285 Total segment assets from continuing operations $ 191,968 $ 224,019 As the reportable segment for financial leasing qualified for discontinued operation, it is not required to disclose the information in segment reporting required by ASC 280. | 4. SEGMENT INFORMATION The CODM reviews financial information of operating segments based on internal management report when making decisions about allocating resources and assessing the performance of the Group. As a result of the assessment made by CODM, the Group has two reportable segments for continuing operations, including automotive after-sales service business and insurance intermediation service business. The Group’s CODM evaluates performance based on the operating segment’s revenue and their operating results. The revenue and operating results by segments were as follows: Year ended December 31, 2020 Automotive after-sales service Insurance intermediation service Others Consolidated Revenues from external customers $ 154,238 $ 84,161 $ 526 $ 238,925 Depreciation and amortization $ (1,090 ) $ (449 ) $ (74 ) $ (1,613 ) Segment income (loss) before tax $ 12,864 $ (3,616 ) $ (874 ) $ 8,374 Year ended December 31, 2021 Automotive after-sales service Insurance intermediation service Others Consolidated Revenues from external customers $ 187,880 $ 56,766 $ 4,589 $ 249,235 Depreciation and amortization $ (3,404 ) $ (578 ) $ (73 ) $ (4,055 ) Segment income (loss) before tax $ 15,891 $ (4,256 ) $ (1,105 ) $ 10,530 Year ended December 31, 2022 Automotive after-sales service Insurance intermediation service Others Consolidated Revenues from external customers $ 199,294 $ 67,640 $ 15,479 $ 282,413 Depreciation and amortization $ (3,452 ) $ (1,558 ) $ (68 ) $ (5,078 ) Segment income (loss) before tax $ (8,109 ) $ (2,212 ) $ (353 ) $ (10,674 ) The total assets from continuing operations by segments as of December 31, 2021 and 2022 were as follows: December 31, 2021 2022 Segment assets Automotive after-sales service $ 153,723 $ 113,992 Insurance intermediation service 49,729 68,123 Others 1,943 9,853 Total segment assets from continuing operations $ 205,395 $ 191,968 As the reportable segment for financial leasing qualified for discontinued operation, it is not required to disclose the information in segment reporting required by ASC 280. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | ||
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: December 31, June 30, 2022 2023 Accounts receivable 110,967 95,783 Allowance for doubtful accounts $ (25,348 ) $ (21,190 ) Accounts receivable, net $ 85,619 $ 74,593 The Group recognized bad debt expense of $245 and reversed bad debt expense of $3,694 for the six months ended June 30, 2022 and 2023. The difference of bad debt expense for the six months ended June 30, 2022 and 2023, and the allowance for doubtful accounts as of June 30, 2022 and 2023 was due to different exchange rate. The movement of allowance for doubtful accounts for the six months ended June 30, 2022 and 2023 were as following: For the Six Months Ended 2022 2023 Balance at the beginning of the period $ - $ 25,348 Adoption of ASC326 - 637 Additions 245 - Reversal - (3,694 ) Foreign currency translation (8 ) (1,101 ) Balance at the end of the period $ 237 $ 21,190 | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: December 31, 2021 2022 Accounts receivable $ 85,637 $ 110,967 Allowance for doubtful accounts - (25,348 ) Accounts receivable, net $ 85,637 $ 85,619 The Group recognized bad debt expense of nil nil The movement of allowance for doubtful accounts for the years ended December 31, 2020, 2021 and 2022 were as following: For the years ended December 31, 2020 2021 2022 Balance at the beginning of the year $ - $ - $ - Additions - - 25,981 Foreign currency translation - - (633 ) Balance at the end of the year $ - $ - $ 25,348 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | ||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepayments and other current assets consisted of the following: December 31, June 30, 2022 2023 Advances to suppliers $ 4,537 $ 40,689 Value-added tax (“VAT”) prepayment 1,954 2,276 Advance for deferred cost of Business Combination (1) 1,325 - Deferred IPO costs 868 - Other receivables from third parties 763 804 Prepaid expenses and other current assets 9,447 43,769 Allowance for doubtful accounts (177 ) (168 ) Prepaid expenses and other current assets, net $ 9,270 $ 43,601 (1) The advance for deferred cost of Business Combination represented the advances to Goldenbridge Acquisition Limited (“GBRG”) in form of non-interest-bearing loans, pursuant to the agreement and plan of merger, dated as of May 23, 2022, which provides for a Business Combination between GBRG and Auto Services Group Limited. Such advance was provided to GBRG to extend the period of time for GBRG to consummate the Business Combination. As of May 17, 2023, the Closing Date, the advance for deferred cost of Business Combination was of $1,499, and was expected to be converted into ordinary shares of the Company at a price of US$10 per share. The Group assessed the collectability of other current assets, and recorded nil nil | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET Prepayments and other current assets, net consisted of the following: December 31, 2021 2022 Advances to suppliers $ 1,699 $ 4,537 Value-added tax (“VAT”) receivables 3,246 1,954 Advance for deferred cost of Business Combination (1) - 1,325 Deferred IPO costs - 868 Others 986 763 Prepaid expenses and other current assets 5,931 9,447 Allowance for doubtful accounts (191 ) (177 ) Prepaid expenses and other current assets, net $ 5,740 $ 9,270 (1) The advance for deferred cost of Business Combination represented the advances to Goldenbridge Acquisition Limited (“GBRG”) in form of non-interest-bearing loans, pursuant to the agreement and plan of merger, dated as of May 23, 2022, which provides for a Business Combination between GBRG and Auto Services Group Limited. Such advance was provided to GBRG to extend the period of time for GBRG to consummate the Business Combination and shall become repayable upon closing of the Business Combination, or if GBRG materially breach the agreement. The Group assessed the collectability of other current assets, and recorded $39, $148 and nil The movement of allowance for doubtful accounts for the years ended December 30, 2020, 2021 and 2022 were as following: For the years ended December 31, 2020 2021 2022 Balance at the beginning of the year $ - $ 41 $ 191 Additions 39 148 - Foreign currency translation 2 2 (14 ) Balance at the end of the year $ 41 $ 191 $ 177 |
Software and Equipment, Net
Software and Equipment, Net | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Software and Equipment, Net [Abstract] | ||
SOFTWARE AND EQUIPMENT, NET | 7. SOFTWARE AND EQUIPMENT, NET Software and equipment, net, consisted of the following: December 31, June 30, 2022 2023 Cost Vehicles $ 979 $ 994 Office equipment and furniture 184 176 Electronic equipment 10,587 10,106 Computer software 16,523 15,716 Leasehold improvements 762 710 Others 733 697 Total 29,768 28,399 Less: accumulated depreciation (11,277 ) (13,359 ) Property and equipment, net $ 18,491 $ 15,040 Depreciation expense was $2,077 and $2,840 for the six months ended June 30, 2022 and 2023, respectively. | 7. SOFTWARE AND EQUIPMENT, NET Software and equipment, net, consisted of the following: December 31, 2021 2022 Cost Vehicles 1,094 979 Office equipment and furniture 201 184 Electronic equipment 10,277 10,587 Computer software (i) 5,053 16,523 Leasehold improvements 825 762 Others 794 733 Total 18,244 29,768 Less: accumulated depreciation (7,505 ) (11,277 ) Software and equipment, net $ 10,739 18,491 (i) In 2022, hybrid cloud platform developed with the assistance of a third-party cloud service provider was partially substantially ready for use and transferred from other non-current assets. Cost of hybrid cloud platform represents the purchase price of the platform and other expenditures incurred to bring the platform into its intended use. The application of the hybrid cloud platform was to improve the IT development capability for internal-used software platforms which provide automotive after-sales services and insurance intermediation services to customers, and Software-As-A-Service (“SaaS”) products which are provided to business partners as technology services. Depreciation expense was $1,613, $4,055, and $5,078 for the years ended December 31, 2020, 2021 and December 31, 2022, respectively. During the years ended December 31, 2020, 2021 and 2022, the Group recorded no impairment loss of software and equipment. |
Other Non-Current Assets
Other Non-Current Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Other Non-current Assets [Abstract] | ||
OTHER NON-CURRENT ASSETS | 8. OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: December 31, June 30, 2022 2023 Private clouds in construction $ 13,629 $ 16,881 Prepayment for equipment 794 386 $ 14,423 $ 17,267 Other non-current assets primarily consisted of externally purchased private clouds under construction, which are construction in progress and were not available for use as of December 31, 2022 and June 30, 2023. | 8. OTHER NON-CURRENT ASSETS Other non-current assets, consisted of the following: December 31, 2021 2022 Private clouds in construction $ 21,893 13,629 IT systems in construction 1,634 ` - Prepayment for equipment 858 794 $ 24,385 14,423 Other non-current assets primarily consisted of externally purchased private clouds under construction, which are construction in progress and were not available for use as of December 31, 2021 and 2022. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | ||
ACCRUED EXPENSES AND OTHER LIABILITIES | 9. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: December 31, June 30, 2022 2023 Payroll payable $ 1,884 $ 1,755 Value added taxes and other taxes payable 993 973 Subscription amount received for unvested restricted shares 913 724 Technical service fee payable 438 - Other accrued expenses 621 585 $ 4,849 4,037 | 10. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: December 31, 2021 2022 Payroll payable $ 1,046 $ 1,884 Value added taxes and other taxes payable 144 993 Subscription amount received for unvested restricted shares 1,318 913 Technical service fee payable - 438 Other accrued expenses 379 621 $ 2,887 $ 4,849 |
Leases
Leases | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
LEASES | 10. LEASES The Group has entered into operating lease agreements for certain offices, which are substantially located in PRC. The Group determines if an arrangement is a lease, or contains a lease, at inception and record the leases in the consolidated financial statements upon lease commencement, which is the date when the lessor makes the underlying asset available for use by the lessee. The balances for the operating leases where the Group is the lessee are presented as follows within the unaudited condensed consolidated balance sheets: December 31, June 30, 2022 2023 Operating lease right-of-use assets, net $ 344 $ 1,514 Lease liabilities - current 315 624 Lease liabilities – non-current - 796 Total operating lease liabilities $ 315 1,420 The components of lease expenses were as follows: For the Six Months Ended 2022 2023 Lease cost Amortization of right-of-use assets $ 619 $ 350 Interest of operating lease liabilities 29 9 Balance at the end of the period $ 648 $ 359 Other information related to leases where the Group is the lessee is as follows: December 31, June 30, 2022 2023 Weighted-average remaining lease term $ 0.61 $ 0.64 Weighted-average discount rate 4.30 % 4.30 % As of June 30, 2023, the following is a schedule of future minimum payments under the Group’s operating leases: For the year ended June 30, Operating Remainder of 2023 $ 319 2024 687 2025 478 2026 2 Total lease payments 1,486 Less: imputed interest (66 ) Total $ 1,420 | 11. LEASES The Group has entered into operating lease agreements for certain offices, which are substantially located in PRC. The Group determines if an arrangement is a lease, or contains a lease, at inception and record the leases in the consolidated financial statements upon lease commencement, which is the date when the lessor makes the underlying asset available for use by the lessee. The balances for the operating leases where the Group is the lessee are presented as follows within the consolidated balance sheets: December 31, 2022 Operating lease right-of-use assets, net $ 344 Lease liabilities - current $ 315 Lease liabilities – non-current - Total operating lease liabilities $ 315 The components of lease expenses were as follows: Year ended 2022 Lease cost Amortization of right-of-use assets $ 619 Interest of operating lease liabilities 29 Total Lease cost $ 648 Other information related to leases where the Group is the lessee is as follows: December 31, 2022 Weighted-average remaining lease term 0.61 Weighted-average discount rate 4.30 % As of December 31, 2022, the following is a schedule of future minimum payments under the Group’s operating leases: For the year ended December 31, Operating 2023 $ 348 Total lease payments 348 Less: imputed interest (33 ) Total $ 315 |
Equity
Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
EQUITY | 11. EQUITY Private Placement On May 19, 2023, the Company entered into a Share Subscription Agreement with a certain non-U.S. person, Anji Zerun Private Equity Investment Partnership (Limited Partnership) (the “Investor”) pursuant to which the Company agreed to sell to the Investor, and the Investor agreed to purchase from the Company, in a private placement 2,173,657 Class A ordinary shares, par value $0.0001 per share, of the Company (the “Purchased Shares”), at the total consideration of US$21,737. The excess of par value per share of the consideration was accounted for as additional paid-in capital of US$21,737. Shares issued to Trans Asia Trans Asia Capital Management Ltd. (“Trans Asia”) acted as a finder in seeking appropriate special purpose acquisition companies (“SPACs”) for the Company’s de-SPAC transaction. For its work, Trans Asia received 160,000 Class A Ordinary Shares issued by the Company after the completion of the merger. Shares converted from the extension cost of GBRG Before the completion of the Business Combination, Auto Services Group Limited made the payment for GBRG to extend the period of time for GBRG to consummate the Business Combination. As of May 17, 2023, the Closing Date, the advance for deferred cost of Business Combination was of $1,499, and was expected to converted into ordinary shares at a price of US$10 per share. As of the date of issuance of the unaudited condensed consolidated financial statements, the Company did not complete the registration and issuance of the shares. | 13. EQUITY On November 4, 2022, SunCar entered into a Share Purchase Agreement (the “GEM Purchase Agreement”) with GEM Global Yield LLC SCS (“GEM Investor”) and GEM Yield Bahamas Limited (“GYBL”) relating to a share subscription facility. Pursuant to the GEM Purchase Agreement, SunCar has the right to sell to GEM Investor up to $125 million of its ordinary shares (the “GEM Shares”) for a 36-month period following a public listing of the Group’s ordinary shares (the “Investment Period”). GEM Investor would pay 90% of the average daily closing price during the pricing period, which is a 30-day period after SunCar turns a draw-down notice to GEM Investor. In addition, in connection with the execution of the GEM Purchase Agreement and as consideration for GEM Investor’s irrevocable commitment to purchase the GEM Shares, SunCar has agreed to make a warrant (the “GEM Warrant”) granting GYBL the right, during the Investment Period, to purchase the SunCar’s ordinary shares up to the equivalent of 3.3% of the total equity interests outstanding immediately after the completion of SunCar’s public listing, calculated on a fully diluted basis. The exercise price of the GEM Warrant $11.50 per share in the case SunCar consummates a merger transaction with Goldenbridge Acquisition Limited, and priced customarily in the absence of the consummation of such a merger. The GEM Warrant may be exercised only on cash basis. As of December 31, 2022, as SunCar did not consummated the merger transaction with Goldenbridge Acquisition Limited, the GEM Purchase Agreement did not have any financial impact on the Group’s consolidated financial statements. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation [Abstract] | ||
SHARE-BASED COMPENSATION | 12. SHARE-BASED COMPENSATION Share-based compensation of a subsidiary SunCar recognizes $830 and $776 share-based compensation expenses related to the restricted shares on a straight-line basis over the vesting periods for the six months ended June 30, 2022 and 2023, respectively. As of June 30, 2023, the unrecognized compensation expense related to restricted shares amounted to $3,595, which will be recognized over a weighted-average period of 2.17 years. | 15. SHARE-BASED COMPENSATION Share-based compensation of a subsidiary On September 9, 2020, the shareholders of Shengda Automobile, a subsidiary of SunCar, approved and adopted the Share Incentive Plan (the “2020 Plan”), under which eligible employees were granted 2,500,000 of restricted ordinary shares of Shanghai Shengda to award eligible employees’ contribution of the expansion of Shengda Automobile, at the price of RMB4.2 per share (“Restricted Shares”). The restricted ordinary shares are subject to an annual vesting schedule that vests 20% of granted restricted shares over the next five years as the employees are required to provide services for a total of 60 months to earn the award. The employees have made full subscription payment of $1,553 during the year ended December 31, 2020. Upon termination, the unvested restricted shares are forfeited and the prepaid subscription amount for the unvested portion shall be returned to the employees. These restricted ordinary shares were considered as nonvested shares under the definition of ASC 718-10-20. The fair value of the Shares at the grant date was RMB25.71 (US$3.94) per share, which was determined based on the purchase price of the financial offering of the same securities with external institutional investors (see Note 14 Non-controlling interests). The Group accounts for forfeitures as a reduction of stock-based compensation expense when the forfeiture actually occurs. SunCar recognizes compensation expenses related to those restricted shares on a straight-line basis over the vesting periods. $520, $1,668 and $1,599 of compensation expenses were recorded for the years ended December 31, 2020, 2021 and 2022. As of December 31, 2022, the unrecognized compensation expense related to restricted shares amounted to $ 4,159, which will be recognized over a weighted-average period of 2.67 years. The 2020 Plan was carried out in the way that eligible employees indirectly hold shares of Shanghai Shengda by holding shares of Jingning Shengjing Enterprise Management Partnership (Limited Partnership) (“Shareholding Platform”) as the general partner and limited partner of the Shareholding Platform. |
Taxation
Taxation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Taxation [Abstract] | ||
TAXATION | 13. TAXATION Cayman Islands Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholdi ng tax will be imposed. British Virgin Islands The Company’s subsidiaries incorporated in the BVI are not subject to taxation in the British Virgin Islands. Hong Kong According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, form April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD2 million of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland Revenue Ordinance (IRO)) for corporations. China Auto Market was not subject to Hong Kong profit tax for any period presented as it did not have assessable profit during the periods presented. PRC Generally, the Group’s subsidiaries, which are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax (“EIT”) on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”) at a rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. The Group’s subsidiaries, Shengda Automobile and Shanghai Chengle Network Technology Co., Ltd. were approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning November 2018 and is valid till December 2024. Continuing operations: The income tax provision consisted of the following components: For the Six Months Ended 2022 2023 Current income tax expenses 1,139 926 Deferred income tax benefit (249 ) (76 ) Total income tax expense $ 890 $ 850 A reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as follows: For the Six Months Ended 2022 2023 Income before income tax expense $ 7,613 $ 1,986 Computed income tax expense with statutory tax rate 1,903 573 Additional deduction for R&D expenses (257 ) (237 ) Tax effect of preferred tax rate (766 ) (791 ) Tax effect of favorable tax rates on small-scale and low-profit entities (5 ) (15 ) Tax effect of tax relief (5 ) (2 ) Tax effect of non-deductible items 11 35 Tax effect due to the disposal of Shengda Group* (3,868 ) - Tax effect of deferred tax effect of tax rate change - (42 ) Changes in valuation allowance 3,877 1,329 Income tax expense $ 890 $ 850 As of December 31, 2022 and June 30, 2023, the significant components of the deferred tax assets are summarized below: December 31, June 30, 2022 2023 Deferred tax assets: Temporary difference in accounts receivable recognition $ 5,353 $ 5,092 Temporary difference in research and development costs 3,738 3,983 Net operating loss carried forward 7,676 8,635 Share-based compensation 78 185 Allowance for doubtful accounts 3,802 3,210 Total deferred tax assets 20,647 21,105 Valuation allowance (7,577 ) (8,475 ) Deferred tax assets, net of valuation allowance $ 13,070 $ 12,630 Changes in valuation allowance are as follows: December 31, June 30, 2022 2023 Balance at beginning of the period $ 2,314 $ 7,577 Additions 5,436 1,268 Foreign currency translation adjustments (173 ) (370 ) Balance at end of the period $ 7,577 $ 8,475 As of December 31, 2022 and June 30, 2023, the Group had net operating loss carryforwards of approximately $32,266 and $35,848, respectively, which arose from the Group’s subsidiaries in the PRC. As of December 31, 2022 and June 30, 2023, deferred tax assets from the net operating loss carryforwards amounted to $7,676 and $8,635, respectively, and the Group has provided a valuation allowance of $7,577 and $8,475 as of December 31, 2022 and June 30, 2023, respectively, for which it has concluded that it is more likely than not that these net operating losses would not be utilized in the future. As of June 30, 2023, net operating loss carryforwards will expire, if unused, in the following amounts: Remainder of 2023 643 2024 2,017 2025 5,263 2026 5,397 2027 16,817 2028 5,711 Total 35,848 | 16. TAXATION Cayman Islands Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, form April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD2 million of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland Revenue Ordinance (IRO)) for corporations. China Auto Market was not subject to Hong Kong profit tax for any period presented as it did not have assessable profit during the periods presented. PRC Generally, the Group’s subsidiaries, which are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax (“EIT”) on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”) at a rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. The Group’s subsidiaries, Shengda Automobile and Shanghai Chengle Network Technology Co., Ltd. were approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning November 2018 and renewing the HNTE in December 2021. The certificate is valid for three years. According to Taxation [2019] No. 13 which was effective from January 1, 2019 to December 31, 2021 and Taxation [2021] No. 12 which was effective from January 1, 2021 to December 31, 2022, an enterprise is recognized as a small-scale and low-profit enterprise when its taxable income is less than RMB3 million. A small-scale and low-profit enterprise receives a tax preference including a preferential tax rate of 5% on its taxable income below RMB1 million and another preferential tax rate of 10% on its taxable income between RMB1 million and RMB3 million in 2020. A small-scale and low-profit enterprise receives a tax preference including a preferential tax rate of 2.5% on its taxable income below RMB1 million and another preferential tax rate of 10% on its taxable income between RMB1 million and RMB3 million in 2021 and 2022. Continuing operations: The income tax provision consisted of the following components: For the years ended December 31, 2020 2021 2022 Current income tax expenses $ 4,028 $ 2,062 $ 2,182 Deferred income tax benefit (2,276 ) (1,124 ) (1,951 ) Total income tax expense $ 1,752 $ 938 $ 231 A reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as follows: For the years ended December 31, 2020 2021 2022 Income (Loss) before income tax expense $ 8,374 $ 10,530 $ (10,674 ) Computed income tax expense (benefit) with statutory tax rate 2,093 2,632 (2,669 ) Additional deduction for research and development expenses (386 ) (509 ) (635 ) Tax effect of preferred tax rate (1,255 ) (1,389 ) 1,050 Tax effect of favorable tax rates on small-scale and low-profit entities (52 ) (93 ) 123 Tax effect of tax relief (51 ) (9 ) (7 ) Tax effect of non-deductible items 27 71 26 Tax effect due to the disposal of Shengda Group - - (3,580 ) Tax effect of deferred tax effect of tax rate change - - 129 Changes in valuation allowance 1,376 235 5,794 Income tax expense $ 1,752 $ 938 $ 231 As of December 31, 2021 and 2022, the significant components of the deferred tax assets are summarized below: December 31, 2021 2022 Deferred tax assets: Temporary difference in accounts receivable recognition $ 5,794 $ 5,353 Temporary difference in research and development costs 4,211 3,738 Net operating loss carried forward 4,142 7,676 Share-based compensation 253 78 Allowance for doubtful accounts - 3,802 Total deferred tax assets 14,400 20,647 Valuation allowance (2,314 ) (7,577 ) Deferred tax assets, net of valuation allowance $ 12,086 $ 13,070 Changes in valuation allowance are as follows: December 31, 2021 2022 Balance at the beginning of the year $ 2,030 $ 2,314 Additions 233 5,436 Foreign currency translation adjustments 51 (173 ) Balance at the end of the year $ 2,314 $ 7,577 As of December 31, 2021 and 2022, the Group had net operating loss carryforwards of approximately $15,830 and $32,266, respectively, which arose from the Group’s subsidiaries in the PRC. As of December 31, 2021 and 2022, deferred tax assets from the net operating loss carryforwards amounted to $4,142 and $7,676, respectively, and the Group has recorded valuation allowances of $2,314 and $7,577 as of December 31, 2021 and 2022, respectively. Full valuation allowances have been provided where, based on all available evidence, management determined that deferred tax assets are not more likely than not to be realizable in future tax years. As of December 31, 2022, net operating loss carryforwards will expire, if unused, in the following amounts: 2023 $ 676 2024 2,303 2025 5,534 2026 5,757 2027 17,996 Total $ 32,266 |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS The table below sets forth the major related parties and their relationships with the Group as of December 31, 2022 and June 30, 2023: Name of related parties Relationship with the Group Shengda Group An entity ultimately controlled by Mr. Ye Zaichang, SunCar’s Chief Executive Officer Automobile Service Group Ltd. Principal shareholder of the Company Balances with related parties December 31, June 30, 2022 2023 Shengda Group Payables due to the transfer of SUNCAR Online (1) $ 40,854 $ - Others (2) 4,710 - Automobile Service Group Ltd. (3) - 168 Current $ 45,564 $ 168 Shengda Group Payables due to the transfer of SUNCAR Online (1) $ - $ 38,892 Others (2) - 4,438 Non-current $ - $ 43,330 (1) On December 3, 2021, Shengda Group transferred all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Shanghai Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025. Therefore, the Group reclassified the balance to non-current portion after the extension. (2) Other payables were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025. Therefore, the Group reclassified the balance to non-current portion after the extension. (3) Other payables were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. | 18. RELATED PARTY TRANSACTIONS The table below sets forth the major related parties and their relationships with the Group as of December 31, 2021 and December 31, 2022: Name of related parties Relationship with the Group Shengda Group An entity ultimately controlled by Mr. Ye Zaichang, SunCar’s Chief Executive Officer Balances with related parties Amount due to a related party December 31, 2021 2022 Shengda Group Payables due to the transfer of SUNCAR Online (1) $ - $ 40,854 Other payables (2) - 4,710 $ - $ 45,564 (1) On December 3, 2021, Shengda Group transfered all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online, which is eliminated in the consolidated financial statements as an intercompany balance as of December 31, 2021. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025 (See Note 21). (2) Other payables to Shengda Group were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Net Income (Loss) Per Share [Abstract] | ||
NET INCOME (LOSS) PER SHARE | 15. NET INCOME (LOSS) PER SHARE The following table sets forth the basic and diluted net income (loss) per share computation and provides a reconciliation of the numerator and denominator for the periods presented: For the Six Months Ended 2022 2023 Numerator: Net income (loss) from continuing operations attributable to SunCar Technology’s ordinary shareholders $ 3,155 $ (3,379 ) Net loss from discontinued operations attributable to SunCar Technology’s ordinary shareholders (1,030 ) - Numerator for basic and diluted net income (loss) per share calculation $ 2,125 $ (3,379 ) Denominator: Weighted average number of ordinary shares 80,000,000 81,374,609 Net income (loss) from continuing operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.04 $ (0.04 ) Net loss from discontinued operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ (0.01 ) $ 0.00 Net income (loss) attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.03 $ (0.04 ) | 17. NET INCOME (LOSS) PER SHARE The following table sets forth the basic and diluted net income (loss) per share computation and provides a reconciliation of the numerator and denominator for the years presented: For the year ended December 31, 2020 2021 2022 Numerator: Net income/(loss) from continuing operations attributable to SunCar’s ordinary shareholders $ 3,403 $ 3,942 $ (5,675 ) Net loss from discontinued operations attributable to SunCar’s ordinary shareholders (16,396 ) (27,663 ) (994 ) Numerator for basic and diluted net loss per share calculation $ (12,993 ) $ (23,721 ) $ (6,669 ) Denominator: Weighted average number of ordinary shares 225,000,000 225,000,000 225,000,000 Incremental weighted average number of ordinary shares from assumed conversion of preferred shares using if-converted method 193,668,614 193,668,614 193,668,614 Net income/(loss) from continuing operations attributable to SunCar’s ordinary shareholders per ordinary share —Basic $ 0.01 $ 0.01 $ (0.03 ) —Diluted $ 0.01 $ 0.01 $ (0.03 ) Net loss from discontinued operations attributable to SunCar’s ordinary shareholders per ordinary share —Basic and diluted $ (0.07 ) $ (0.12 ) $ 0.00 Net loss attributable to SunCar’s ordinary shareholders per ordinary share —Basic and diluted $ (0.06 ) $ (0.11 ) $ (0.03 ) For the years ended December 31, 2020, 2021 and 2022, 193,668,614, 193,668,614 and 193,668,614 shares issuable upon conversion of convertible preferred shares were excluded from the calculation of basic and diluted net loss per ordinary share, as the convertible preferred shares have no contractual obligation to fund or otherwise absorb the Group’s losses. |
Concentration Risk
Concentration Risk | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Concentration Risk [Abstract] | ||
CONCENTRATION RISK | 16. CONCENTRATION RISK Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Group evaluates its collection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. The Group conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue. For the Six Month Ended 2022 2023 Percentage of the Group’s total revenue Customer A 20 % 19 % Customer B * % 17 % Customer C 18 * Customer D 11 % * The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: December 31, June 30, 2022 2023 Percentage of the Group’s accounts receivable Customer E 33 % 16 % Customer C 30 % 16 % Customer F 10 % 13 % Customer D * 10 % The following table sets forth a summary of each supplier who represent 10% or more of the Group’s total purchases: For the Six Month Ended 2022 2023 Percentage of the Group’s total purchase Supplier A 12 % 17 % Supplier B 23 % 13 % Supplier C 18 % * * represent percentage less than 10% | 19. CONCENTRATION RISK Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Group evaluates its collection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. The Group conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue. For the years ended December 31, 2020 2021 2022 Percentage of the Group’s total revenue Customer A 26 % * * Customer B * 15 % 11 % Customer C * * 15 % The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: As of December 31, 2021 2022 Percentage of the Group’s accounts receivable Customer B 23 % 30 % Customer C 13 % 33 % Customer D 10 % 15 % Customer E * 12 % Customer F * 10 % The following table sets forth a summary of each supplier who represent 10% or more of the Group’s total purchase: For the years ended December 31, 2020 2021 2022 Percentage of the Group’s total purchase Supplier A 10 % * * Supplier B * 12 % 24 % Supplier C * 11 % 19 % Supplier D * 10 % 16 % * represent percentage less than 10% |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Lease Commitments The total future minimum lease payments under the non-cancellable operating lease with respect to the office as of June 30, 2023 are payable as follows: Lease Commitment Within 1 year $ 694 1-3 years 823 Total $ 1,517 Contingencies In the ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of June 30, 2023 and through the issuance date of these consolidated financial statements. Capital commitments The Group’s capital commitments primarily relate to commitments on purchase of private cloud. Total capital commitment contracted but not yet reflected in the consolidated financial statements as of June 30, 2023 was $8,018, which was expected to be paid within 1 year. | 20. COMMITMENTS AND CONTINGENCIES Lease Commitments The total future minimum lease payments under the non-cancellable operating lease with respect to the office as of December 31, 2022 are payable as follows: Lease Within 1 year 348 Total 348 Contingencies In the ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of December 31,2022 and through the issuance date of these consolidated financial statements. Capital commitments The Group’s capital commitments primarily relate to commitments on purchase of private cloud. Total capital commitment contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 was $13,022, which was expected to be paid within 1 year. |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS The Group has evaluated subsequent events through September 30, 2023, the date of issuance of the unaudited condensed consolidated financial statements, and did not identify any other subsequent events with material financial impact on the Group’s unaudited condensed consolidated financial statements. | 21. SUBSEQUENT EVENTS Reversal recapitalization On May 17, 2023 (the “Closing Date”), the Company consummated the transaction pursuant to the Agreement and Plan of Merger (“Merger Agreement”) with Goldenbridge Acquisition Limited (the “Parent”, or “Goldenbridge”), SunCar Technology Group Inc. (the “Purchaser”), and SunCar Technology Global Inc (the “Merger Sub”), a Cayman Islands exempted company and wholly owned subsidiary of the Purchaser. The merger was carried out in two steps: (1) Reincorporation Merger: the Parent was merged with and into the Purchaser, the separate corporate existence of Parent ceased and Purchaser continued as the surviving corporation; (2) Acquisition Merger: the Merger Sub was merged with and into the Company, the Merger Sub ceased and the Company continued as the surviving company in the Acquisition Merger. Consideration of US$800 million was paid to the Company’s shareholders, payable in the form of a number of newly issued ordinary shares of the Purchaser, SunCar Technology Group Inc., valued at $10.00 per share. In addition, earn-out payment to Mr. Ye, the Chief Executive Officer of the Company as follows: (1) 1,600,000 Purchaser Class A Ordinary Shares if the Company’s revenue equals or exceeds US$258,000,000 for the fiscal year ending December 31, 2022, as reflected on the audited consolidated financial statements of the Company as of and for the fiscal year ended December 31, 2022; (2) 1,600,000 Purchaser Class A Ordinary Shares if the Company’s revenue equals or exceeds US$352,000,000 for the fiscal year ending December 31, 2023, as reflected on the audited consolidated financial statements of the Company as of and for the fiscal year ended December 31, 2023; and; (3) 1,600,000 Purchaser Class A Ordinary Shares if the Company’s revenue equals or exceeds US$459,000,000 for the fiscal year ending December 31, 2024, as reflected on the audited consolidated financial statements of the Company as of and for the fiscal year ended December 31, 2024. Following the consummation of the transaction, SunCar as a wholly-owned subsidiary of the Purchaser, and the combined company will retain the name of SunCar Technology Group Inc. The Company was determined to be the accounting acquirer given the Company effectively controlled the combined entity after the transaction. The transaction is not a business combination under US GAAP because Goldenbridge was not a business. The transaction is accounted for as a reverse recapitalization, which is equivalent to the issuance of shares by the Company for the net monetary assets of Goldenbridge, accompanied by a recapitalization. The Company is determined as the predecessor and the historical financial statements of the Company became SunCar Technology Group Inc’s historical financial statements, with retrospective adjustments to give effect of the reverse recapitalization. Extension of amount due to Shengda Group On April 6, 2023, the Group entered into an extension agreement with Shengda Group to extended the maturity date of amount due to Shengda Group to December 31, 2025, with annual interest rate of 1% in the extension period from June 1, 2023 to December 31, 2025. Private Placement On May 19, 2023, SunCar Technology Group Inc. entered into a Share Subscription Agreement with a certain non-U.S. person, Anji Zerun Private Equity Investment Partnership (Limited Partnership) (the “Investor”) pursuant to which SunCar Technology Group Inc. agreed to sell to the Investor, and the Investor agreed to purchase from the SunCar Technology Group Inc., in a private placement 2,173,657 Class A Ordinary Shares, par value $0.0001 per share, of the Company (the “Purchased Shares”), at the total consideration of US$21,736,569.25. The Purchased Shares are subject to a lock-up period of six (6) months. The Group has evaluated subsequent events through June 30, 2023, the date of issuance of the consolidated financial statements, and did not identify any other subsequent events with material financial impact on the Group’s consolidated financial statements. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [Abstract] | |
BORROWINGS | 9. BORROWINGS As of December 31, 2021 and 2022, the bank borrowings were for working capital and capital expenditure purposes. Short-term borrowings consisted of the following: Annual December 31, Rate Maturity 2021 2022 Huaxia Bank Shanghai Branch Sales Department 2-4.75 % August to September, 2023 $ 15,692 $ 11,567 China Merchants Bank Shanghai Damuqiao Branch 4.8-5.3 % February to May, 2023 7,783 9,961 China Minsheng Bank Shanghai Jiujiang Branch 3.70-3.85 % January to July, 2023 7,736 7,249 Bank of Communications Shanghai Putuo Branch(i) 4.79 % January, 2023 7,846 7,249 Putuo Branch of Shanghai Pudong Development Bank(i) 4.60 % April, 2023 2,354 4,350 Bank of Dalian Shanghai Jing’an Sub-branch(i) 4.31-5.12 % March to May, 2023 4,708 4,350 Bank of Beijing Shanghai Zhangjiang Sub-branch (i) 4.80 % December, 2023 3,138 4,350 China Construction Bank Shanghai Jing’an Branch(i) 3.70 % June, 2023 1,569 4,350 Bank of China Shanghai Gonghexin Road Sub-branch(ii) 3.65-4.22 % March to November, 2023 3,923 4,277 Bank of Nanjing North Bund Branch(i) 5.50 % January, 2023 - 3,625 Huangpu Branch of Bank of Shanghai(ii) 4.70 % February, 2023 2,354 2,900 Industry bank Shanghai Zhijiang Branch(i) 4.65-5.05 % February, 2023 - 2,900 ICBC Shanghai Zhang Jiang high tech Park Branch(i) 3.30 % September, 2023 - 2,610 Xiamen International Bank Shanghai Jinqiao Branch(i) 5.20 % June, 2023 - 1,450 China CITIC Bank Shanghai Pudian Road Branch 4.65 % April, 2023 - 1,435 Bank of Beijing Shanghai Branch 4.31 % March, 2023 785 1,160 Shanghai Rural Commercial Bank Minhang Branch (ii) 5.20 % June, 2023 942 870 Shanghai Rural Commercial Bank Bund Branch(i) 4.80 % February to March, 2022 5,492 - Fubon Huayi Bank Shanghai Jing’an Branch 5.60 % January, 2022 785 - Zheshang Bank Shanghai Branch Sales Department(i) 6.00 % October, 2022 3,138 - ICBC Xinzha Road Branch 3.85 % March, 2022 785 - Total $ 69,030 $ 74,653 The interest expenses were $2,311, $3,476 and $3,809 for the years ended December 31, 2020, 2021 and 2022, respectively. The weighted average interest rates of short-term loans outstanding were 3.95%, 4.98% and 4.89% per annum as of December 31, 2020 2021 and 2022, respectively. (i) The bank borrowings were guaranteed by SUNCAR Online, one of subsidiaries of SunCar. (ii) The bank borrowings were guaranteed by Shengda Automobile, one of subsidiaries of SunCar. |
Convertible Preferred Shares
Convertible Preferred Shares | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
CONVERTIBLE PREFERRED SHARES | 12. CONVERTIBLE PREFERRED SHARES SunCar completed several rounds of equity financing and issued the following convertible preferred shares during 2010 to 2012. As of December 31, 2022, the following were issued and outstanding: 45,614,646 Series A convertible preferred shares, 27,053,437 limited Series A convertible preferred shares and 121,000,531 Series B convertible preferred shares. There were no changes to the issued and outstanding convertible preferred shares during the years ended December 31, 2021 and 2022. The powers, preferences, rights, restrictions and other matters relating to the Convertible Preferred Shares are as follows: Dividend Rights The holders of the Convertible Preferred Shares shall be entitled to receive dividends, out of any assets legally available therefor, at the rate of eight percent (8%) of the applicable Original Issue Price per Share per annum. Such dividends shall be payable when, as and if declared by the Board, and shall not be cumulative. Conversion Rights Subject to and in compliance with the Act, the holders of the Convertible Preferred Shares have conversion rights as follows: (i) Optional Conversion: Each Convertible Preferred Share shall be convertible, at the option of the holder thereof without payment of additional consideration, at any time after the date of issuance of such Share and before the closing of a Qualified IPO, into such number of fully paid and non-assessable Ordinary Shares as determined by, with respect to each Convertible Preferred Share, dividing the applicable original issue price by the then applicable conversion price, determined as hereinafter provided, in effect at the time of the conversion. (ii) Automatic Conversion: Each outstanding Convertible Preferred Share shall automatically be converted into Ordinary Shares at the then applicable effective conversion price upon the closing of a Qualified IPO duly approved by the Board. The initial conversion ratio for the Convertible Preferred Shares to Ordinary Shares shall be 1:1, and no adjustment in the conversion price of a particular series of Convertible Preferred Shares shall be made in respect of the issuance of additional shares unless the issue price per share for an additional share issued or deemed to be issued by SunCar is less than the applicable conversion price with respect to such series of Convertible Preferred Shares in effect on the date of and immediately prior to such issue. Voting Rights Each Convertible Preferred Share holder shall carry a number of votes equal to the number of Ordinary Shares then issuable upon its conversion into ordinary shares at the record date for determination of the shareholders entitled to vote on such matters, or, if no such record date is established, at the date such vote is taken or any written consent of shareholders is solicited. The holders of the Convertible Preferred Shares shall vote together with the holders of the Ordinary Shares, and not as a separate class. Liquidation Preferences In the event of any liquidation, dissolution or winding up of SunCar, whether voluntary or involuntary, firstly, (i) Before any distribution or payment shall be made to the holders of any Series A Convertible Preferred Shares or the holders of the Ordinary Shares, the holders of Series B Convertible Preferred Shares shall be entitled to receive a per share amount equal to one hundred and thirty percent (130%) of the Series B Original Issue Price, as applicable, plus any declared but unpaid dividends, proportionately adjusted for share splits, share dividends, recapitalizations and the like with respect thereto (the “Series B Preference Amount”). (ii) After any distribution or payment is made in full to Series B Investors, but before any distribution or payment shall be made to the holders of any Ordinary Shares, the holders of the Series A Shares would be entitled pro rata to receive in preference to the holders of the Ordinary Shares a per share amount equal to 120% the Series A Original Issue Price (the “Series A Preference Amount”) and any declared but unpaid dividends, proportionately adjusted for share splits, share dividends, recapitalizations and the like. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2022 | |
Non-Controlling Interests [Abstract] | |
NON-CONTROLLING INTERESTS | 14. NON-CONTROLLING INTERESTS Contribution from non-controlling shareholders On November 24, 2020, one of SunCar’s subsidiary, Shengda Automobile, entered into Capital Subscription Agreement with a series of institutional investors, including Shenzhen Innovation Investment Group Co. Ltd, Nanjing Hongtu Xinghe Venture Capital Fund (LLP), Jiangsu Hongtu Intelligent Manufacturing Venture Capital Enterprise (LLP), Shanghai Jinshan Hongtu Venture Capital Center (LLP), Gaoyou Hongtu Venture Capital Fund (LLP), Shanghai Heyi Enterprise Management Partnership (Limited partnership) and Shanghai Lianchuang Yongyuan Equity Investment Fund Partnership (Limited Partnership) (collectively “institutional investors”), and a series of individual investors. Pursuant to the agreement, all the institutional investors and individual investors made a total contribution of RMB216,000 (US$33,097) to obtain 8,400,001 shares of Shengda Automobile at a purchase price of RMB25.71 (US$3.94) per share, which accounted for 14.38% for the total equity interest of Shengda Automobile. The difference between the total contribution, and the carrying amount of proportional net assets that noncontrolling shareholders acquired was recorded in additional paid-in capital, which was US$14,432. Repurchase of noncontrolling interests Since 2014, one of SunCar’s subsidiary, SUNCAR Online, was listed on the National Equities Exchange and Quotations Co., Ltd., or the NEEQ, and SunCar owns a majority ownership in SUNCAR Online. In 2020, a 100% owned subsidiary of SunCar, Shanghai Shengda Jiarui Automobile Sales Co., Limited (“Shengda Jiarui”, a subsidiary from discontinued operation), acquired 0.39% of ownership of SUNCAR Online from non-controlling shareholders via NEEQ capital market. In 2021, another 100% owned subsidiary of SunCar, Haiyan, acquired 0.99% of ownership of SUNCAR Online from non-controlling shareholders via NEEQ capital market. In 2022, Haiyan, and another 100% owned subsidiary of SunCar, Shanghai Feiyou, acquired 0.01% and 0.25% of ownership of SUNCAR Online from non-controlling shareholders via NEEQ capital market, respectively. Since both Shengda Jiarui and Haiyan were 100% owned by SunCar, the ownership purchase transactions were considered as repurchase of non-controlling interests by SunCar in substance. During the year ended December 31, 2020, as a result of the repurchase of 0.39% non-controlling interest of SUNCAR Online, SunCar derecognized non-controlling interest of $223, and the difference between the purchase price and the carrying amount of proportional net assets that repurchased from noncontrolling shareholders was recorded in additional paid-in capital, which was $867. During the year ended December 31, 2021, as a result of the repurchase of 0.99% non-controlling interest of SUNCAR Online, SunCar derecognized non-controlling interest of $948, and the difference between the purchase price and the carrying amount of the proportional net assets that repurchased from non-controlling shareholders was recorded in additional paid-in capital, which was $236. During the year ended December 31, 2022, as a result of the repurchase of 0.26% non-controlling interest of SUNCAR Online, SunCar derecognized non-controlling interest of $234, and the difference between the purchase price and the carrying amount of the proportional net assets that repurchased from non-controlling shareholders was recorded in additional paid-in capital, which was $276. Dividend paid to noncontrolling shareholders On October 26, 2021, SUNCAR Online declared and paid dividend of RMB102,304 (US$15,859), among which RMB42,702 (US$6,620) was paid to non-controlling shareholders of SUNCAR Online. The remaining dividends were paid to Haiyan Trading (Shanghai) Co., Ltd., Shengda Auto Service Group Co., Ltd., Shanghai Lianming Advertising Communication Co., Ltd., and Shanghai Shanda Jiarui Automobile Sales Co., Ltd. (“Shanda Jiarui”, a subsidiary from discontinued operation), which are all 100% owned subsidiaries of the Group, and the payment of the remaining dividends to these subsidiaries has no impact on the consolidated financial statements of the Group. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 22. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Group performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the Group is required to disclose the financial statements for the parent Company. CONDENSED PARENT COMPANY BALANCE SHEETS As of December 31, 2021 2022 ASSETS Investment in subsidiaries $ - $ Total assets - LIABILITIES AND SHAREHOLDERS’ EQUITY Deficit in investment in subsidiaries 21,436 5,284 Total liabilities 21,436 5,284 Shareholders’ deficit Ordinary shares (par value of US0.00005 per share; 225,000,000 shares authorized as of December 31, 2021 and 2022; 225,000,000 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 11 11 Convertible Preferred shares (par value US0.00005; 45,614,646 Series A preferred shares, 27,053,437 limited Series A preferred shares and 121,000,531 Series B preferred shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively) 10 10 Additional paid in capital 75,091 95,751 Accumulated deficit (96,548 ) (101,056 ) Total shareholders’ deficit $ (21,436 ) $ (5,284 ) TOTAL LIABILITIES AND DEFICIT $ - $ - CONDENSED PARENT COMPANY STATEMENTS OF OPERATIONS For the years ended December 31, 2020 2021 2022 Operating loss: Share of loss of subsidiaries $ (12,993 ) $ (23,721 ) (6,669 ) Loss before income tax expense (12,993 ) (23,721 ) (6,669 ) Income tax expense - - - Net loss $ (12,993 ) $ (23,721 ) (6,669 ) CONDENSED PARENT COMPANY STATEMENTS OF CASH FLOW For the years ended December 31, 2021 2022 2022 Cash flows from operating activities Cash flows from investing activities $ - $ - $ - Cash flows from financing activities - - - Net increase in cash and restricted cash - - - Cash and restricted cash, at beginning of year - - - Cash and restricted cash, at end of year $ - $ - $ - |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Basis of presentation | (a) Basis of presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. The accompanying unaudited condensed financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the years ended December 31, 2020, 2021 and 2022. The unaudited condensed consolidated financial statements include the financial statements of SunCar Technology and its subsidiaries. All intercompany transactions and balances among SunCar Technology and its subsidiaries have been eliminated upon consolidation. | (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of SunCar and its subsidiaries. All intercompany transactions and balances among SunCar and its subsidiaries have been eliminated upon consolidation. For consolidated subsidiaries where the Group’s ownership in the subsidiary is less than 100%, the equity interest not held by the Group is shown as non-controlling interests. |
Use of estimates | (b) Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the condensed consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for doubtful accounts, useful lives and impairment of long-lived assets, and valuation allowances of deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the unaudited condensed consolidated financial statements. | (b) Use of estimates The preparation of the consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for doubtful accounts, useful lives and impairment of long-lived assets, and valuation allowances of deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Accounts receivable, net | (c) Accounts receivable, net Accounts receivable, net are stated at the original amount less allowances for doubtful accounts. Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Group considers many factors in assessing the collectability of its receivables, such as the age of the amounts due, the customer’s payment history, credit-worthiness and other specific circumstances related to the accounts. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. Adoption of Accounting Standards Update (“ASU”) 2016-13 In June 2016, the FASB issued ASU 2016-13: Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The Group adopted ASU 2016-13 from January 1, 2023 using modified-retrospective transition approach with a cumulative-effect adjustment to shareholders’ equity amounting to $507 recognized as of January 1, 2023. | (e) Accounts receivable, net Accounts receivable, net are stated at the original amount less allowances for doubtful accounts. Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Group considers many factors in assessing the collectability of its receivables, such as the age of the amounts due, the customer’s payment history, credit-worthiness and other specific circumstances related to the accounts. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Fair value measurement | (d) Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2—Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash, accounts receivable, other receivables included in prepayments and other current assets, short-term borrowings, accounts payable, other payables included in accrued expenses and other current liabilities. As of December 31, 2022 and June 30, 2023, the carrying amounts of other financial instruments approximated to their fair values due to the short-term maturity of these instruments. The Group’s non-financial assets, such as software and equipment, would be measured at fair value only if they were determined to be impaired. | (m) Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Acc ounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2—Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those fut Financial assets and liabilities of the Group primarily consist of cash, accounts receivable, other receivables included in prepayments and other current assets, short-term borrowings, accounts payable, other payables included in accrued expenses and other current liabilities. As of December 31, 2021 and 2022, the carrying amounts of other financial instruments approximated to their fair values due to the short-term maturity of these instruments. The Group’s non-financial assets, such as software and equipment, would be measured at fair value only if they were determined to be impaired. |
Revenue recognition | (e) Revenue recognition The Group’s revenues are mainly generated from providing automotive after-sales service, insurance intermediation service and technology service. The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by Value Added Tax (“VAT”). To achieve the core principle of this standard, we applied the following five steps: 1. Identification of the contract, or contracts, with the customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of the revenue when, or as, a performance obligation is satisfied. Automotive after-sales service The Group defines enterprise clients as the Group’s customers and the Group sells automotive after-sales service coupons to enterprise clients, which each coupon represents one specific automotive after-sales 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 the service is provided, or when the service coupon expires. The Group does not provide refunds to customers when a coupon is expired but not used. Insurance intermediation service The Group provides insurance intermediation service distributing primarily vehicle insurance on behalf of the insurance companies and charges insurance companies for intermediation service commissions. Insurance intermediation services are considered to be rendered and completed, and revenue is recognized, at the time an insurance policy becomes effective, that is, when the signed insurance policy is in place and the premium is collected from the insured. The Group has satisfied the performance obligation to recognize revenue when the premiums are collected by the respective insurance companies and not before, because collectability is not ensured until receipt of the premium. Accordingly, the Group does not accrue any insurance intermediation 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. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has an unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets as of December 31, 2022 and June 30, 2023. The contract liabilities consist of the billings or cash received for services in advance of revenue recognition and is recognized as revenue the performance obligation is satisfied. The Group’s contract liabilities amounted to $3,569 and $3,870 as of December 31, 2022 and June 30, 2023, respectively. During the six months ended June 30, 2022 and 2023, the Group recognized $1,901 and $3,569 that was included in contract liabilities balance at January 1, 2022 and 2023, respectively. | (n) Revenue recognition The Group’s revenues are mainly generated from providing automotive after-sales service, insurance intermediation service, technology service and financial leasing service. The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by Value Added Tax (“VAT”). To achieve the core principle of this standard, we applied the following five steps: 1. Identification of the contract, or contracts, with the customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of the revenue when, or as, a performance obligation is satisfied. Automotive after-sales service The Group defines enterprise clients as the Group’s customers and the Group sells automotive after-sales service coupons to enterprise clients, which each coupon represents one specific automotive after-sales 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 the service is provided, or when the service coupon expires. The Group does not provide refunds to customers when a coupon is expired but not used. Insurance intermediation service The Group provides insurance intermediation service distributing primarily vehicle insurance on behalf of the insurance companies and charges insurance companies for intermediation service commissions. Insurance intermediation services are considered to be rendered and completed, and revenue is recognized, at the time an insurance policy becomes effective, that is, when the signed insurance policy is in place and the premium is collected from the insured. The Group has satisfied the performance obligation to recognize revenue when the premiums are collected by the respective insurance companies and not before, because collectability is not ensured until receipt of the premium. Accordingly, the Group does not accrue any insurance intermediation 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. The Group’s revenue are disaggregated by timing of revenue recognition as follows: For the years ended December 31, 2020 2021 2022 Revenue recognized at a point of time $ 238,399 $ 244,646 $ 266,934 Revenue recognized over time 526 4,589 15,479 Revenues $ 238,925 $ 249,235 $ 282,413 Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has an unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets as of December 31, 2021 and 2022. The contract liabilities consist of deferred revenue, which represents the billings or cash received for services in advance of revenue recognition and is recognized as revenue the performance obligation is satisfied. The Group’s deferred revenue amounted to $1,901 and $3,569 as of December 31, 2021 and 2022, respectively. During the years ended December 31, 2020, 2021 and 2022, the Group recognized $3,328, $1,053 and $1,901 that was included in deferred revenue balance at January 1, 2020, 2021 and 2022, respectively. |
Warrants | (f) Warrants The Group accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and ASC 815, “Derivatives and Hedging” (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the Private Warrants was estimated using a Black-Scholes model. | |
Foreign currency transactions and translations | (g) Foreign currency transactions and translations The Group’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Group’s financial statements are reported using U.S. Dollars (“$”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the results of operations. The value of RMB against $ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Group’s financial condition in terms of $ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: December 31, June 30, Balance sheet items, except for equity accounts 6.8972 7.2513 For the Six Months Ended 2022 2023 Items in the statements of income and comprehensive income, and statements of cash flows 6.4835 6.9283 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. | (x) Foreign currency transactions and translations The Group’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Group’s financial statements are reported using U.S. Dollars (“$”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the results of operations. The value of RMB against $ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Group’s financial condition in terms of $ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: As of December 31, 2021 2022 Balance sheet items, except for equity accounts 6.3726 6.8972 For the Years Ended December 31, 2020 2021 2022 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.9042 6.4508 6.7290 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. |
Recent accounting pronouncements | (h) Recent accounting pronouncements The Group is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Group has evaluated pronouncements recently issued but not yet adopted. The adoption of these pronouncements is not expected to have a material impact or are unrelated to the Group’s consolidated financial condition, results of operations, cash flows or disclosures. | (dd) Recent accounting pronouncements The Group is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020- 02 to provide additional guidance on the credit losses standard. For all other entities, the amendments for ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. The Group will adopt ASU 2016-13 on January 1, 2023. The Group is in the process of evaluating the effect of the adoption of this ASU. |
Cash | (c) Cash Cash consist of cash on hand and cash in banks. The Group maintains cash with various financial institutions in China. The Group has not experienced any losses in bank accounts and believes it is not exposed to any risks on its cash in bank accounts. | |
Restricted cash | (d) Restricted cash Restricted cash represented a guaranteed deposit required by China Banking and Insurance Regulatory Commission (“CBIRC”) in order to protect insurance premium appropriation by insurance agency which is restricted as to withdrawal for other than current operations. | |
Short-term investment | (f) Short-term investment The Group invested in certain trust products and bank financial products, with various interest rates and are restricted as to withdrawal and use before maturity. The Group classifies the trust and financial products as held-to-maturity securities. The original maturities of the short-term investments are longer than three-months, but shorter than one year. The carrying amount of these short-term investments approximate their fair values due to the short-term maturities of these investments. The Group reviews its short-term investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidences in evaluating the potential impairment of its short-term investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the carrying amount, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidation statements of operations. No impairment charge was recognized for the years ended December 31, 2020, 2021 and 2022. | |
Software and equipment, net | (g) Software and equipment, net Software and equipment are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives and residual value are as follows: Category Estimated useful lives Residual Vehicles 3-5 years 5% Office equipment and furniture 3-5 years 5% Electronic equipment 3 years 5% Computer software 5, 10 years nil Leasehold improvements Over the shorter of lease term or the estimated useful lives of the assets nil Others 3-10 years 5% Computer software Acquisition costs associated with internal-use software are capitalized and include external direct costs of services principally related to platform development, including support systems, software coding, designing system interfaces, and installation and testing of the software. These costs are recorded as software and equipment and are generally amortized beginning when the asset is substantially ready for use. Costs incurred for enhancements that are expected to result in additional features or functionalities are capitalized and amortized over the estimated useful life of the enhancements. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extends the useful lives of software and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements of operations and comprehensive loss. | |
Impairment of long-lived assets | (h) Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, which is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | |
Long-term investments | (i) Long-term investments Beginning on January 1, 2018, the Group’s equity investments without readily determinable fair values, which do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), to estimate fair value using the net asset value per share (or its equivalent) of the investment (“NAV practical expedient”), and over which the Group does not have the ability to exercise significant influence through the investments in common stock or in substance common stock, are accounted for under the measurement alternative upon the adoption of ASU 2016-01 (the “Measurement Alternative”). Under the Measurement Alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. All gains and losses on these investments, realized and unrealized, are recognized in the consolidated statements of operations and comprehensive income/(loss). The Group makes assessment of whether an investment is impaired based on performance and financial position of the investee as well as other evidence of market value at each reporting date. Such assessment includes, but is not limited to, reviewing the investee’s cash position, recent financing, as well as the financial and business performance. The Group recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated statements of operations and comprehensive income/(loss) if any. On November 20, 2019, Jiaxing Hanchao Equity Investment Partnership (L.P.) (“Jiaxing Hanchao”) was incorporated. Pursuant to the partnership agreement, SUNCAR Online invested $290, accounting for 5% of the total investment as a limited partner. The investment was accounted for under the cost method as the Group had no significant influence over the investee and Jiaxing Hanchao had no readily determinable fair value. | |
Accounts payable | (j) Accounts payabl e Accounts payable is payable to suppliers in the procurement of service to automotive after-sales service providers to customized services for end consumers of the enterprise clients, and promotional service to channels. | |
Short-term loan | (k) Short-term loan Short-term loan represents the Group’s borrowings from commercial banks for the Group’s working capital. Short-term loan includes borrowings with maturity terms shorter than one year. | |
Related party | (l) Related Party Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, stockholder, or a related corporation. | |
Integrated service cost | (o) Integrated service cost Integrated service cost primarily includes the service fee paid to suppliers undertaking and performing the automobile service to the users of customer, and outsourcing service fee paid to the third party for technological development. The service fee is determined based on the actual services rendered and recognized in the period incurred. | |
Promotional service expense | (p) Promotional service expenses Promotional service expenses represent (i) promotional service fee to explore extensive networks of automotive after-sales service and insurance intermediation; and (ii) service fees to promotion channels, including but not limited to offline after-sales networks, online platforms, and emerging new energy vehicle original equipment manufacturers (“NEV OEMs”) and service providers. These channels have their own users, who are potential business customers. Promotional service expenses are recognized in the period incurred. | |
Research and development expense | (q) Research and development expense Research and development expenses consist primarily of payroll and employee benefit for research and development employees, rental expense, utilities and other related expenses related to design, develop and maintain technology service platform to support the Group’s internal and external business. Research and development expenses are expensed as incurred. Software development costs are recorded in “Research and development” as incurred as the costs qualifying for capitalization have been insignificant. | |
Government grants | (r) Government grants Government grant is recognized when there is reasonable assurance that the Group will comply with the conditions attach to it and the grant will be received. Government grant for the purpose of giving immediate financial support to the Group with no future related costs or obligation is recognized in “other income” in the Group’s consolidated statements of comprehensive loss when the grant is received. For the years ended December 31, 2020, 2021 and 2022, the Group received government grants from the local PRC government authorities aggregately of $1,566, $1,897, $3,753, respectively, among which the government grants related to achievement of annual income tax filling target and value-added tax deduction were $1,322, $1,729, $3,426, respectively, and the awards to high-tech enterprises were $244, $168, $327, respectively. | |
Share-based compensation | (s) Share-based compensation The Group grants restricted share units (“RSUs”) of SunCar’s subsidiary, SUNCAR Online, to eligible employees and management. The Group accounts for share-based awards issued to employees and non-employees in accordance with ASC Topic 718 Compensation – Stock Compensation. The Group recognizes compensation cost for an equity classified award using the straight-line method over the applicable vesting period based on the fair value of restricted shares granted on the date of the grant. Awards of subsidiary equity is recognized in “non-controlling interest” in the consolidated entity. | |
Employee benefits | (t) Employee benefits SunCar’s subsidiaries in PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. | |
Leases | (u) Leases The Group leases facilities in the PRC under non-cancellable operating leases expiring on different dates. On January 1, 2022, the Company adopted ASU No. 2016-02 (Topic 842) “Leases” using the optional transition method. Results and disclosure requirements for reporting periods beginning after January 1, 2022 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases. At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Group assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The main impact of the adoption of the standard is that assets and liabilities amounting to $972 and $939, respectively, were recognized beginning January 1, 2022 for leased office space with terms of more than 12 months. The Company accounts for short-term leases with terms less than 12 months in accordance with ASC 842-20-25-2 to recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The adoption of the standard did not have a significant impact on the Group’s consolidated financial statements. Right-of-use (“ROU”) assets represent the Group’s rights to use underlying assets for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease ROU assets The right-of-use assets are initially measured at cost, which comprise the initial amounts of the lease liabilities adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Operating lease liabilities Lease liabilities are initially measured at the present value of the outstanding lease payments at the commencement date, discounted using the discount rate for the leases. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The Group’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease liabilities are measured at amortized cost using the effective interest rate method. They are re-measured when there is a change in future lease payments, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if there is any change in the Group assessment of option purchases, contract extensions or termination options. | |
Income taxes | (v) Income taxes The Group accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group has 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. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Group’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000($14,358). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Group did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line of its consolidated statements of operations for the years ended December 31, 2020, 2021 and 2022, respectively. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. | |
Value added tax (“VAT”) | (w) Value added tax (“VAT”) The Group is subject to VAT and related surcharges on revenue generated from providing automotive after-sales service, insurance intermediation service, and financial leasing service. The Group records revenue net of VAT. This VAT may be offset by qualified input VAT paid by the Group to suppliers. Net VAT balance between input VAT and output VAT is recorded in the line item of other current assets on the consolidated balance sheets. | |
Non-controlling interest | (y) Non-controlling interest A non-controlling interest in a subsidiary of SunCar represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to SunCar. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheets and net income/(loss) and other comprehensive income/(loss) attributable to non-controlling shareholders are presented as a separate component on the consolidated statements of operations and comprehensive loss. | |
Earnings/(Loss) per share | (z) Earnings/(Loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders, taking into consideration the deemed dividends to preferred shareholders (if any), by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Shares issuable for little to no consideration upon the satisfaction of certain conditions are considered as outstanding shares and included in the computation of basic earnings (loss) per share as of the date that all necessary conditions have been satisfied. Net losses are not allocated to other participating securities if based on their contractual terms they are not obligated to share the losses. The Group’s convertible preferred shares are participating securities, as they have contractual non-forfeitable right to participate in distributions of earnings. The convertible preferred shares have no contractual obligation to fund or otherwise absorb the Group’s losses. Accordingly, any undistributed net income is allocated on a pro rata basis to ordinary shares and convertible preferred shares; whereas any undistributed net loss is allocated to ordinary shares only. Diluted earnings (loss) per share is calculated by dividing net earnings (loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of the convertible preferred shares, using the if-converted method, and shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted earnings (loss) per share calculation when inclusion of such share would be anti-dilutive. | |
Discontinued operations | (aa) Discontinued operations A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). For any component classified as held for sale or disposed of by sale or other than by sale that qualify for presentation as a discontinued operation in the period, the Group has reported the assets and liabilities of the discontinued operations as current and non-current assets of discontinued operations, and current and non-current liabilities of discontinued operations in the consolidated balance sheets as of December 31, 2021 and 2022. The results of operations of discontinued operation for the years ended December 31, 2020, 2021 and 2022 have been reflected separately in the consolidated statements of income/(loss) as a single line item for all periods presented in accordance with U.S. GAAP. Cash flows from discontinued operations of the three categories for the years ended December 31, 2020, 2021 and 2022 were separately presented in the consolidated statements of cash flows for all periods presented in accordance with U.S. GAAP. | |
Segment reporting | (bb) Segment reporting The Group has organized its continuing operations into two operating segments. The segments reflect the way the Group evaluates its business performance and manages its operations by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group has two reportable segments from continuing operations, including automotive after-sales service business and insurance intermediation service business. The Group considers a “management approach” concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the Group for making operating decisions, allocating resources, and assessing performance. The Group’s reportable segments are strategic business units that offer different services and are managed separately because each business requires different technology and marketing strategies. As the Group’s long-lived assets are substantially located in the PRC, no geographical segments are presented. | |
Comprehensive income/(loss) | (cc) Comprehensive income/(loss) Comprehensive income (loss) is comprised of the Group’s net income (loss) and other comprehensive income (loss). The components of other comprehensive income (loss) consist of foreign currency translation adjustments. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Organization and Principal Activities [Abstract] | ||
Schedule of Net Income Per Ordinary Share - Basic and Diluted | The net income per share before and after the retrospective adjustments are as follows. For the Six Months Ended Before After Net income from continuing operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.01 $ 0.04 Net loss from discontinued operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ - $ (0.01 ) Net income attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.01 $ 0.03 | |
Schedule of Major Subsidiaries | As of December 31, 2022, SunCar’s major subsidiaries are as follows: Name Date of Place of Percentage of Principal Activities Shanghai Xuanbei Automobile Service Co., Limited (“Shanghai Xuanbei”) April 26, 2018 PRC 100.00 % Automotive after-sales service Shanghai Shengshi Dalian Automobile Service Co., Limited (“Shengda Automobile”) June 8, 2013 PRC 84.89 % Automotive after-sales service Sun Car Online Insurance Agency Co., Ltd. (“SUNCAR Online”) December 5, 2007 PRC 56.51 % Insurance intermediation service Haiyan Trading (Shanghai) Co., Limited (“Haiyan”) November 22, 2012 PRC 100.00 % Holding company Shanghai Feiyou Trading Co., Limited (“Shanghai Feiyou”) June 11, 2009 PRC 100.00 % Technology services |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Schedule of Consolidated Financial Statements | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: December 31, June 30, Balance sheet items, except for equity accounts 6.8972 7.2513 For the Six Months Ended 2022 2023 Items in the statements of income and comprehensive income, and statements of cash flows 6.4835 6.9283 | The Group’s revenue are disaggregated by timing of revenue recognition as follows: For the years ended December 31, 2020 2021 2022 Revenue recognized at a point of time $ 238,399 $ 244,646 $ 266,934 Revenue recognized over time 526 4,589 15,479 Revenues $ 238,925 $ 249,235 $ 282,413 As of December 31, 2021 2022 Balance sheet items, except for equity accounts 6.3726 6.8972 For the Years Ended December 31, 2020 2021 2022 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.9042 6.4508 6.7290 |
Schedule of the Estimated Useful Lives of the Assets | Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives and residual value are as follows: Category Estimated useful lives Residual Vehicles 3-5 years 5% Office equipment and furniture 3-5 years 5% Electronic equipment 3 years 5% Computer software 5, 10 years nil Leasehold improvements Over the shorter of lease term or the estimated useful lives of the assets nil Others 3-10 years 5% |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Discontinued Operations [Abstract] | ||
Schedule of Discontinued Operations, Net of Tax | The comparative consolidated statements of operations have been represented to show the discontinued operations separately from continuing operations. Details of the results from discontinued operations, net of tax are set out below: For the Six Months Ended 2022* 2023 Interest income $ 147 $ - Interest cost and operating expenses (1,177 ) - Loss from discontinued operations before income tax (1,030 ) - Income tax expense (1 ) - Net Loss from discontinued operations, net $ (1,031 ) $ - * The result of discontinued operations included those of discontinued operations from January 1, 2022 to March 1, 2022. | The comparative consolidated statements of operations have been represented to show the discontinued operations separately from continuing operations. Details of the results from discontinued operations, net of tax are set out below: For the years ended December 31, 2020 2021 2022* Interest income $ 3,280 $ 1,884 $ 142 Interest cost (5,916 ) (7,322 ) (457 ) Net interest loss (2,636 ) (5,438 ) (315 ) Operating expenses Selling expenses (535 ) (235 ) (22 ) General and administrative expenses (11,168 ) (12,998 ) (760 ) Total operating expenses (11,703 ) (13,233 ) (782 ) Operating loss (14,339 ) (18,671 ) (1,097 ) Other income (expenses) Financial expenses, net (719 ) (604 ) (70 ) Investment income/(loss) (1,778 ) 6 - Other income, net 553 878 174 Total other (expenses) income, net (1,944 ) 280 104 Loss before income tax expense (16,283 ) (18,391 ) (993 ) Income tax expense (114 ) (9,291 ) (1 ) Loss from discontinued operations, net (16,397 ) (27,682 ) (994 ) Less: Net loss attributable to non-controlling interests (1 ) (19 ) - Net loss from discontinued operations attributable to SunCar’s ordinary shareholders $ (16,396 ) $ (27,663 ) $ (994 ) * The result of discontinued operations included those of discontinued operations from January 1, 2022 to March 1, 2022. |
Schedule of classes of assets and liabilities of discontinued operations | The carrying amount of the major classes of assets and liabilities of discontinued operations presented in the consolidated balance sheets as of December 31, 2021 and 2022 consisted of the following: As of December 31, 2021 2022 ASSETS Current assets Cash $ 570 $ - Prepaid expenses and other current assets 3,305 - Total current assets 3,875 - Noncurrent assets Long-term investment 169 - Long-term receivables 4,597 - Property, plant and equipment, net 234 - Total noncurrent assets 5,000 - TOTAL ASSETS 8,875 - LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities Short-term loan 1,569 - Accounts payable 161 - Advance from customers 470 - Accrued expenses and other current liabilities 15,726 - Tax payable 9,408 - Total current liabilities 27,334 - Noncurrent liabilities Other long-term liabilities 52,659 - Total noncurrent liabilities 52,659 - Total liabilities $ 79,993 $ - |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Segment Information [Abstract] | ||
Schedule of Operating Segments Based on Internal Management Report | The Group’s CODM evaluates performance based on the operating segment’s revenue and their operating results. The revenue and operating results by segments were as follows: For the Six Months Ended June 30, 2023 Automotive Insurance Others Consolidated Revenues from external customers $ 98,813 $ 47,710 $ 12,855 $ 159,378 Depreciation and amortization $ (1,884 ) $ (1,278 ) $ (28 ) $ (3,190 ) Segment income (loss) before tax $ 6,332 $ (938 ) $ (3,408 ) $ 1,986 For the Six Months Ended June 30, 2022 Automotive Insurance Others Consolidated Revenues from external customers $ 89,851 $ 29,346 $ 5,531 $ 124,728 Depreciation and amortization $ (1,633 ) $ (407 ) $ (37 ) $ (2,077 ) Segment income (loss) before tax $ 8,466 $ (819 ) $ (34 ) $ 7,613 | The revenue and operating results by segments were as follows: Year ended December 31, 2020 Automotive after-sales service Insurance intermediation service Others Consolidated Revenues from external customers $ 154,238 $ 84,161 $ 526 $ 238,925 Depreciation and amortization $ (1,090 ) $ (449 ) $ (74 ) $ (1,613 ) Segment income (loss) before tax $ 12,864 $ (3,616 ) $ (874 ) $ 8,374 Year ended December 31, 2021 Automotive after-sales service Insurance intermediation service Others Consolidated Revenues from external customers $ 187,880 $ 56,766 $ 4,589 $ 249,235 Depreciation and amortization $ (3,404 ) $ (578 ) $ (73 ) $ (4,055 ) Segment income (loss) before tax $ 15,891 $ (4,256 ) $ (1,105 ) $ 10,530 Year ended December 31, 2022 Automotive after-sales service Insurance intermediation service Others Consolidated Revenues from external customers $ 199,294 $ 67,640 $ 15,479 $ 282,413 Depreciation and amortization $ (3,452 ) $ (1,558 ) $ (68 ) $ (5,078 ) Segment income (loss) before tax $ (8,109 ) $ (2,212 ) $ (353 ) $ (10,674 ) |
Schedule of Total Assets from Continuing Operations by Segments | The total assets from continuing operations by segments as of December 31, 2022 and June 30, 2023 were as follows: December 31, June 30, 2022 2023 Segment assets Automotive after-sales service $ 113,992 $ 136,841 Insurance intermediation service 68,123 66,893 Others 9,853 20,285 Total segment assets from continuing operations $ 191,968 $ 224,019 | The total assets from continuing operations by segments as of December 31, 2021 and 2022 were as follows: December 31, 2021 2022 Segment assets Automotive after-sales service $ 153,723 $ 113,992 Insurance intermediation service 49,729 68,123 Others 1,943 9,853 Total segment assets from continuing operations $ 205,395 $ 191,968 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | ||
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: December 31, June 30, 2022 2023 Accounts receivable 110,967 95,783 Allowance for doubtful accounts $ (25,348 ) $ (21,190 ) Accounts receivable, net $ 85,619 $ 74,593 | Accounts receivable, net consisted of the following: December 31, 2021 2022 Accounts receivable $ 85,637 $ 110,967 Allowance for doubtful accounts - (25,348 ) Accounts receivable, net $ 85,637 $ 85,619 |
Schedule of Allowance for Doubtful Accounts | The movement of allowance for doubtful accounts for the six months ended June 30, 2022 and 2023 were as following: For the Six Months Ended 2022 2023 Balance at the beginning of the period $ - $ 25,348 Adoption of ASC326 - 637 Additions 245 - Reversal - (3,694 ) Foreign currency translation (8 ) (1,101 ) Balance at the end of the period $ 237 $ 21,190 | The movement of allowance for doubtful accounts for the years ended December 31, 2020, 2021 and 2022 were as following: For the years ended December 31, 2020 2021 2022 Balance at the beginning of the year $ - $ - $ - Additions - - 25,981 Foreign currency translation - - (633 ) Balance at the end of the year $ - $ - $ 25,348 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Schedule of prepayments and other current assets, net | Prepayments and other current assets consisted of the following: December 31, June 30, 2022 2023 Advances to suppliers $ 4,537 $ 40,689 Value-added tax (“VAT”) prepayment 1,954 2,276 Advance for deferred cost of Business Combination (1) 1,325 - Deferred IPO costs 868 - Other receivables from third parties 763 804 Prepaid expenses and other current assets 9,447 43,769 Allowance for doubtful accounts (177 ) (168 ) Prepaid expenses and other current assets, net $ 9,270 $ 43,601 (1) The advance for deferred cost of Business Combination represented the advances to Goldenbridge Acquisition Limited (“GBRG”) in form of non-interest-bearing loans, pursuant to the agreement and plan of merger, dated as of May 23, 2022, which provides for a Business Combination between GBRG and Auto Services Group Limited. Such advance was provided to GBRG to extend the period of time for GBRG to consummate the Business Combination. | Prepayments and other current assets, net consisted of the following: December 31, 2021 2022 Advances to suppliers $ 1,699 $ 4,537 Value-added tax (“VAT”) receivables 3,246 1,954 Advance for deferred cost of Business Combination (1) - 1,325 Deferred IPO costs - 868 Others 986 763 Prepaid expenses and other current assets 5,931 9,447 Allowance for doubtful accounts (191 ) (177 ) Prepaid expenses and other current assets, net $ 5,740 $ 9,270 (1) The advance for deferred cost of Business Combination represented the advances to Goldenbridge Acquisition Limited (“GBRG”) in form of non-interest-bearing loans, pursuant to the agreement and plan of merger, dated as of May 23, 2022, which provides for a Business Combination between GBRG and Auto Services Group Limited. Such advance was provided to GBRG to extend the period of time for GBRG to consummate the Business Combination and shall become repayable upon closing of the Business Combination, or if GBRG materially breach the agreement. |
Schedule of Allowance for Doubtful Accounts | The movement of allowance for doubtful accounts for the years ended December 30, 2020, 2021 and 2022 were as following: For the years ended December 31, 2020 2021 2022 Balance at the beginning of the year $ - $ 41 $ 191 Additions 39 148 - Foreign currency translation 2 2 (14 ) Balance at the end of the year $ 41 $ 191 $ 177 |
Software and Equipment, Net (Ta
Software and Equipment, Net (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Software and Equipment, Net [Abstract] | ||
Schedule of Property, Software and Equipment, Net | Software and equipment, net, consisted of the following: December 31, June 30, 2022 2023 Cost Vehicles $ 979 $ 994 Office equipment and furniture 184 176 Electronic equipment 10,587 10,106 Computer software 16,523 15,716 Leasehold improvements 762 710 Others 733 697 Total 29,768 28,399 Less: accumulated depreciation (11,277 ) (13,359 ) Property and equipment, net $ 18,491 $ 15,040 | Software and equipment, net, consisted of the following: December 31, 2021 2022 Cost Vehicles 1,094 979 Office equipment and furniture 201 184 Electronic equipment 10,277 10,587 Computer software (i) 5,053 16,523 Leasehold improvements 825 762 Others 794 733 Total 18,244 29,768 Less: accumulated depreciation (7,505 ) (11,277 ) Software and equipment, net $ 10,739 18,491 (i) In 2022, hybrid cloud platform developed with the assistance of a third-party cloud service provider was partially substantially ready for use and transferred from other non-current assets. Cost of hybrid cloud platform represents the purchase price of the platform and other expenditures incurred to bring the platform into its intended use. The application of the hybrid cloud platform was to improve the IT development capability for internal-used software platforms which provide automotive after-sales services and insurance intermediation services to customers, and Software-As-A-Service (“SaaS”) products which are provided to business partners as technology services. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Other Non-current Assets [Abstract] | ||
Schedule of Other Non-Current Assets | Other non-current assets consisted of the following: December 31, June 30, 2022 2023 Private clouds in construction $ 13,629 $ 16,881 Prepayment for equipment 794 386 $ 14,423 $ 17,267 | Other non-current assets, consisted of the following: December 31, 2021 2022 Private clouds in construction $ 21,893 13,629 IT systems in construction 1,634 ` - Prepayment for equipment 858 794 $ 24,385 14,423 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | ||
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: December 31, June 30, 2022 2023 Payroll payable $ 1,884 $ 1,755 Value added taxes and other taxes payable 993 973 Subscription amount received for unvested restricted shares 913 724 Technical service fee payable 438 - Other accrued expenses 621 585 $ 4,849 4,037 | Accrued expenses and other liabilities consisted of the following: December 31, 2021 2022 Payroll payable $ 1,046 $ 1,884 Value added taxes and other taxes payable 144 993 Subscription amount received for unvested restricted shares 1,318 913 Technical service fee payable - 438 Other accrued expenses 379 621 $ 2,887 $ 4,849 |
Leases (Tables)
Leases (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Schedule of Operating Leases within the Unaudited Condensed Consolidated Balance Sheets | The balances for the operating leases where the Group is the lessee are presented as follows within the unaudited condensed consolidated balance sheets: December 31, June 30, 2022 2023 Operating lease right-of-use assets, net $ 344 $ 1,514 Lease liabilities - current 315 624 Lease liabilities – non-current - 796 Total operating lease liabilities $ 315 1,420 | |
Schedule of Components of Lease Expenses | The components of lease expenses were as follows: For the Six Months Ended 2022 2023 Lease cost Amortization of right-of-use assets $ 619 $ 350 Interest of operating lease liabilities 29 9 Balance at the end of the period $ 648 $ 359 | The components of lease expenses were as follows: Year ended 2022 Lease cost Amortization of right-of-use assets $ 619 Interest of operating lease liabilities 29 Total Lease cost $ 648 |
Schedule of Other Information Related to Leases | Other information related to leases where the Group is the lessee is as follows: December 31, June 30, 2022 2023 Weighted-average remaining lease term $ 0.61 $ 0.64 Weighted-average discount rate 4.30 % 4.30 % | |
Schedule of Future Minimum Payments | As of June 30, 2023, the following is a schedule of future minimum payments under the Group’s operating leases: For the year ended June 30, Operating Remainder of 2023 $ 319 2024 687 2025 478 2026 2 Total lease payments 1,486 Less: imputed interest (66 ) Total $ 1,420 | |
Schedule of Operating Leases | The balances for the operating leases where the Group is the lessee are presented as follows within the consolidated balance sheets: December 31, 2022 Operating lease right-of-use assets, net $ 344 Lease liabilities - current $ 315 Lease liabilities – non-current - Total operating lease liabilities $ 315 | |
Schedule of Other Information Related to Leases | Other information related to leases where the Group is the lessee is as follows: December 31, 2022 Weighted-average remaining lease term 0.61 Weighted-average discount rate 4.30 % | |
Schedule of Future Minimum Payments | As of December 31, 2022, the following is a schedule of future minimum payments under the Group’s operating leases: For the year ended December 31, Operating 2023 $ 348 Total lease payments 348 Less: imputed interest (33 ) Total $ 315 |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Taxation [Abstract] | ||
Schedule of Income Tax Provision | The income tax provision consisted of the following components: For the Six Months Ended 2022 2023 Current income tax expenses 1,139 926 Deferred income tax benefit (249 ) (76 ) Total income tax expense $ 890 $ 850 | The income tax provision consisted of the following components: For the years ended December 31, 2020 2021 2022 Current income tax expenses $ 4,028 $ 2,062 $ 2,182 Deferred income tax benefit (2,276 ) (1,124 ) (1,951 ) Total income tax expense $ 1,752 $ 938 $ 231 |
Schedule of Provision for Income Taxes and the Provision at the Prc, Mainland Statutory Rate | A reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as follows: For the Six Months Ended 2022 2023 Income before income tax expense $ 7,613 $ 1,986 Computed income tax expense with statutory tax rate 1,903 573 Additional deduction for R&D expenses (257 ) (237 ) Tax effect of preferred tax rate (766 ) (791 ) Tax effect of favorable tax rates on small-scale and low-profit entities (5 ) (15 ) Tax effect of tax relief (5 ) (2 ) Tax effect of non-deductible items 11 35 Tax effect due to the disposal of Shengda Group* (3,868 ) - Tax effect of deferred tax effect of tax rate change - (42 ) Changes in valuation allowance 3,877 1,329 Income tax expense $ 890 $ 850 | A reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as follows: For the years ended December 31, 2020 2021 2022 Income (Loss) before income tax expense $ 8,374 $ 10,530 $ (10,674 ) Computed income tax expense (benefit) with statutory tax rate 2,093 2,632 (2,669 ) Additional deduction for research and development expenses (386 ) (509 ) (635 ) Tax effect of preferred tax rate (1,255 ) (1,389 ) 1,050 Tax effect of favorable tax rates on small-scale and low-profit entities (52 ) (93 ) 123 Tax effect of tax relief (51 ) (9 ) (7 ) Tax effect of non-deductible items 27 71 26 Tax effect due to the disposal of Shengda Group - - (3,580 ) Tax effect of deferred tax effect of tax rate change - - 129 Changes in valuation allowance 1,376 235 5,794 Income tax expense $ 1,752 $ 938 $ 231 |
Schedule of Deferred Tax Assets | As of December 31, 2022 and June 30, 2023, the significant components of the deferred tax assets are summarized below: December 31, June 30, 2022 2023 Deferred tax assets: Temporary difference in accounts receivable recognition $ 5,353 $ 5,092 Temporary difference in research and development costs 3,738 3,983 Net operating loss carried forward 7,676 8,635 Share-based compensation 78 185 Allowance for doubtful accounts 3,802 3,210 Total deferred tax assets 20,647 21,105 Valuation allowance (7,577 ) (8,475 ) Deferred tax assets, net of valuation allowance $ 13,070 $ 12,630 | As of December 31, 2021 and 2022, the significant components of the deferred tax assets are summarized below: December 31, 2021 2022 Deferred tax assets: Temporary difference in accounts receivable recognition $ 5,794 $ 5,353 Temporary difference in research and development costs 4,211 3,738 Net operating loss carried forward 4,142 7,676 Share-based compensation 253 78 Allowance for doubtful accounts - 3,802 Total deferred tax assets 14,400 20,647 Valuation allowance (2,314 ) (7,577 ) Deferred tax assets, net of valuation allowance $ 12,086 $ 13,070 |
Schedule of Changes in Valuation Allowance | Changes in valuation allowance are as follows: December 31, June 30, 2022 2023 Balance at beginning of the period $ 2,314 $ 7,577 Additions 5,436 1,268 Foreign currency translation adjustments (173 ) (370 ) Balance at end of the period $ 7,577 $ 8,475 | Changes in valuation allowance are as follows: December 31, 2021 2022 Balance at the beginning of the year $ 2,030 $ 2,314 Additions 233 5,436 Foreign currency translation adjustments 51 (173 ) Balance at the end of the year $ 2,314 $ 7,577 |
Schedule of Net Operating Loss Carryforwards | As of June 30, 2023, net operating loss carryforwards will expire, if unused, in the following amounts: Remainder of 2023 643 2024 2,017 2025 5,263 2026 5,397 2027 16,817 2028 5,711 Total 35,848 | As of December 31, 2022, net operating loss carryforwards will expire, if unused, in the following amounts: 2023 $ 676 2024 2,303 2025 5,534 2026 5,757 2027 17,996 Total $ 32,266 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Schedule of Related Parties Transaction | The table below sets forth the major related parties and their relationships with the Group as of December 31, 2022 and June 30, 2023: Name of related parties Relationship with the Group Shengda Group An entity ultimately controlled by Mr. Ye Zaichang, SunCar’s Chief Executive Officer Automobile Service Group Ltd. Principal shareholder of the Company | The table below sets forth the major related parties and their relationships with the Group as of December 31, 2021 and December 31, 2022: Name of related parties Relationship with the Group Shengda Group An entity ultimately controlled by Mr. Ye Zaichang, SunCar’s Chief Executive Officer |
Schedule of Balances with Related Parties | Balances with related parties December 31, June 30, 2022 2023 Shengda Group Payables due to the transfer of SUNCAR Online (1) $ 40,854 $ - Others (2) 4,710 - Automobile Service Group Ltd. (3) - 168 Current $ 45,564 $ 168 Shengda Group Payables due to the transfer of SUNCAR Online (1) $ - $ 38,892 Others (2) - 4,438 Non-current $ - $ 43,330 (1) On December 3, 2021, Shengda Group transferred all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Shanghai Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025. Therefore, the Group reclassified the balance to non-current portion after the extension. (2) Other payables were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025. Therefore, the Group reclassified the balance to non-current portion after the extension. (3) Other payables were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. | Amount due to a related party December 31, 2021 2022 Shengda Group Payables due to the transfer of SUNCAR Online (1) $ - $ 40,854 Other payables (2) - 4,710 $ - $ 45,564 (1) On December 3, 2021, Shengda Group transfered all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online, which is eliminated in the consolidated financial statements as an intercompany balance as of December 31, 2021. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025 (See Note 21). (2) Other payables to Shengda Group were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Net Income (Loss) Per Share [Abstract] | ||
Schedule of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the basic and diluted net income (loss) per share computation and provides a reconciliation of the numerator and denominator for the periods presented: For the Six Months Ended 2022 2023 Numerator: Net income (loss) from continuing operations attributable to SunCar Technology’s ordinary shareholders $ 3,155 $ (3,379 ) Net loss from discontinued operations attributable to SunCar Technology’s ordinary shareholders (1,030 ) - Numerator for basic and diluted net income (loss) per share calculation $ 2,125 $ (3,379 ) Denominator: Weighted average number of ordinary shares 80,000,000 81,374,609 Net income (loss) from continuing operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.04 $ (0.04 ) Net loss from discontinued operation attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ (0.01 ) $ 0.00 Net income (loss) attributable to SunCar Technology’s ordinary shareholders per ordinary share —Basic and diluted $ 0.03 $ (0.04 ) | The following table sets forth the basic and diluted net income (loss) per share computation and provides a reconciliation of the numerator and denominator for the years presented: For the year ended December 31, 2020 2021 2022 Numerator: Net income/(loss) from continuing operations attributable to SunCar’s ordinary shareholders $ 3,403 $ 3,942 $ (5,675 ) Net loss from discontinued operations attributable to SunCar’s ordinary shareholders (16,396 ) (27,663 ) (994 ) Numerator for basic and diluted net loss per share calculation $ (12,993 ) $ (23,721 ) $ (6,669 ) Denominator: Weighted average number of ordinary shares 225,000,000 225,000,000 225,000,000 Incremental weighted average number of ordinary shares from assumed conversion of preferred shares using if-converted method 193,668,614 193,668,614 193,668,614 Net income/(loss) from continuing operations attributable to SunCar’s ordinary shareholders per ordinary share —Basic $ 0.01 $ 0.01 $ (0.03 ) —Diluted $ 0.01 $ 0.01 $ (0.03 ) Net loss from discontinued operations attributable to SunCar’s ordinary shareholders per ordinary share —Basic and diluted $ (0.07 ) $ (0.12 ) $ 0.00 Net loss attributable to SunCar’s ordinary shareholders per ordinary share —Basic and diluted $ (0.06 ) $ (0.11 ) $ (0.03 ) |
Concentration Risk (Tables)
Concentration Risk (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Concentration Risk [Abstract] | ||
Schedule of Group’s Total Revenue | The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue. For the Six Month Ended 2022 2023 Percentage of the Group’s total revenue Customer A 20 % 19 % Customer B * % 17 % Customer C 18 * Customer D 11 % * * represent percentage less than 10% | The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue. For the years ended December 31, 2020 2021 2022 Percentage of the Group’s total revenue Customer A 26 % * * Customer B * 15 % 11 % Customer C * * 15 % * represent percentage less than 10% |
Schedule of Group’s Total Accounts Receivable | The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: December 31, June 30, 2022 2023 Percentage of the Group’s accounts receivable Customer E 33 % 16 % Customer C 30 % 16 % Customer F 10 % 13 % Customer D * 10 % * represent percentage less than 10% | The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: As of December 31, 2021 2022 Percentage of the Group’s accounts receivable Customer B 23 % 30 % Customer C 13 % 33 % Customer D 10 % 15 % Customer E * 12 % Customer F * 10 % * represent percentage less than 10% |
Schedule of Group’s Total Purchase | The following table sets forth a summary of each supplier who represent 10% or more of the Group’s total purchases: For the Six Month Ended 2022 2023 Percentage of the Group’s total purchase Supplier A 12 % 17 % Supplier B 23 % 13 % Supplier C 18 % * * represent percentage less than 10% | The following table sets forth a summary of each supplier who represent 10% or more of the Group’s total purchase: For the years ended December 31, 2020 2021 2022 Percentage of the Group’s total purchase Supplier A 10 % * * Supplier B * 12 % 24 % Supplier C * 11 % 19 % Supplier D * 10 % 16 % * represent percentage less than 10% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of Commitments and Contingencies | The total future minimum lease payments under the non-cancellable operating lease with respect to the office as of June 30, 2023 are payable as follows: Lease Commitment Within 1 year $ 694 1-3 years 823 Total $ 1,517 | The total future minimum lease payments under the non-cancellable operating lease with respect to the office as of December 31, 2022 are payable as follows: Lease Within 1 year 348 Total 348 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [Abstract] | |
Schedule of Short-Term Borrowings | As of December 31, 2021 and 2022, the bank borrowings were for working capital and capital expenditure purposes. Short-term borrowings consisted of the following: Annual December 31, Rate Maturity 2021 2022 Huaxia Bank Shanghai Branch Sales Department 2-4.75 % August to September, 2023 $ 15,692 $ 11,567 China Merchants Bank Shanghai Damuqiao Branch 4.8-5.3 % February to May, 2023 7,783 9,961 China Minsheng Bank Shanghai Jiujiang Branch 3.70-3.85 % January to July, 2023 7,736 7,249 Bank of Communications Shanghai Putuo Branch(i) 4.79 % January, 2023 7,846 7,249 Putuo Branch of Shanghai Pudong Development Bank(i) 4.60 % April, 2023 2,354 4,350 Bank of Dalian Shanghai Jing’an Sub-branch(i) 4.31-5.12 % March to May, 2023 4,708 4,350 Bank of Beijing Shanghai Zhangjiang Sub-branch (i) 4.80 % December, 2023 3,138 4,350 China Construction Bank Shanghai Jing’an Branch(i) 3.70 % June, 2023 1,569 4,350 Bank of China Shanghai Gonghexin Road Sub-branch(ii) 3.65-4.22 % March to November, 2023 3,923 4,277 Bank of Nanjing North Bund Branch(i) 5.50 % January, 2023 - 3,625 Huangpu Branch of Bank of Shanghai(ii) 4.70 % February, 2023 2,354 2,900 Industry bank Shanghai Zhijiang Branch(i) 4.65-5.05 % February, 2023 - 2,900 ICBC Shanghai Zhang Jiang high tech Park Branch(i) 3.30 % September, 2023 - 2,610 Xiamen International Bank Shanghai Jinqiao Branch(i) 5.20 % June, 2023 - 1,450 China CITIC Bank Shanghai Pudian Road Branch 4.65 % April, 2023 - 1,435 Bank of Beijing Shanghai Branch 4.31 % March, 2023 785 1,160 Shanghai Rural Commercial Bank Minhang Branch (ii) 5.20 % June, 2023 942 870 Shanghai Rural Commercial Bank Bund Branch(i) 4.80 % February to March, 2022 5,492 - Fubon Huayi Bank Shanghai Jing’an Branch 5.60 % January, 2022 785 - Zheshang Bank Shanghai Branch Sales Department(i) 6.00 % October, 2022 3,138 - ICBC Xinzha Road Branch 3.85 % March, 2022 785 - Total $ 69,030 $ 74,653 (i) The bank borrowings were guaranteed by SUNCAR Online, one of subsidiaries of SunCar. (ii) The bank borrowings were guaranteed by Shengda Automobile, one of subsidiaries of SunCar. |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Parent Company Balance Sheets | As of December 31, 2021 2022 ASSETS Investment in subsidiaries $ - $ Total assets - LIABILITIES AND SHAREHOLDERS’ EQUITY Deficit in investment in subsidiaries 21,436 5,284 Total liabilities 21,436 5,284 Shareholders’ deficit Ordinary shares (par value of US0.00005 per share; 225,000,000 shares authorized as of December 31, 2021 and 2022; 225,000,000 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 11 11 Convertible Preferred shares (par value US0.00005; 45,614,646 Series A preferred shares, 27,053,437 limited Series A preferred shares and 121,000,531 Series B preferred shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively) 10 10 Additional paid in capital 75,091 95,751 Accumulated deficit (96,548 ) (101,056 ) Total shareholders’ deficit $ (21,436 ) $ (5,284 ) TOTAL LIABILITIES AND DEFICIT $ - $ - |
Schedule of Condensed Parent Company Statements of Operations | For the years ended December 31, 2020 2021 2022 Operating loss: Share of loss of subsidiaries $ (12,993 ) $ (23,721 ) (6,669 ) Loss before income tax expense (12,993 ) (23,721 ) (6,669 ) Income tax expense - - - Net loss $ (12,993 ) $ (23,721 ) (6,669 ) |
Schedule of Condensed Parent Company Statements of Cash Flow | For the years ended December 31, 2021 2022 2022 Cash flows from operating activities Cash flows from investing activities $ - $ - $ - Cash flows from financing activities - - - Net increase in cash and restricted cash - - - Cash and restricted cash, at beginning of year - - - Cash and restricted cash, at end of year $ - $ - $ - |
Organization and Principal Ac_3
Organization and Principal Activities (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Mar. 01, 2022 CNY (¥) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | [1] | ||
Organization and Principal Activities (Details) [Line Items] | |||||||
Nominal consideration amount (in Yuan Renminbi) | ¥ 1 | $ 40,854 | [1] | ||||
Additional Paid-in Capital [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Additional paid in capital (in Dollars) | $ | $ 3 | ||||||
Maximum [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Par value of ordinary shares (in Dollars per share) | $ / shares | $ 0.00005 | ||||||
Weighted average number of ordinary shares outstanding | shares | 418,668,614 | ||||||
Minimum [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Par value of ordinary shares (in Dollars per share) | $ / shares | $ 0.0001 | ||||||
Weighted average number of ordinary shares outstanding | shares | 80,000,000 | ||||||
Common Class A [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Conversion of share | shares | 30,371,435 | ||||||
Par value of ordinary shares (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Common Class B [Member] | |||||||
Organization and Principal Activities (Details) [Line Items] | |||||||
Conversion of share | shares | 49,628,565 | ||||||
Par value of ordinary shares (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
[1] On December 3, 2021, Shengda Group transfered all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online, which is eliminated in the consolidated financial statements as an intercompany balance as of December 31, 2021. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025 (See Note 21). |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Net Income Per Ordinary Share - Basic and Diluted | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Before Adjustment [Member] | |
Net income from continuing operation attributable to SunCar Technology’s ordinary shareholders per ordinary share | |
Net income from continuing operation - Basic | $ 0.01 |
Net loss from discontinued operation attributable to SunCar Technology’s ordinary shareholders per ordinary share | |
Net income from discontinuing operation - Basic | |
Net income attributable to SunCar Technology’s ordinary shareholders per ordinary share | |
Net income - Basic | 0.01 |
After Adjustment [Member] | |
Net income from continuing operation attributable to SunCar Technology’s ordinary shareholders per ordinary share | |
Net income from continuing operation - Basic | 0.04 |
Net loss from discontinued operation attributable to SunCar Technology’s ordinary shareholders per ordinary share | |
Net income from discontinuing operation - Basic | (0.01) |
Net income attributable to SunCar Technology’s ordinary shareholders per ordinary share | |
Net income - Basic | $ 0.03 |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of Net Income Per Ordinary Share - Basic and Diluted (Parentheticals) | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Before Adjustment [Member] | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Net income from continuing operation - Diluted | $ 0.01 |
Net income from discontinuing operation - Diluted | |
Net income - Diluted | 0.01 |
After Adjustment [Member] | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Net income from continuing operation - Diluted | 0.04 |
Net income from discontinuing operation - Diluted | (0.01) |
Net income - Diluted | $ 0.03 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Nov. 20, 2019 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Shareholders equity amount | $ 507 | ||||||
Deferred revenue | 3,870 | $ 3,569 | $ 1,901 | ||||
Deferred revenue recognized amount | $ 1,901 | $ 3,569 | 1,901 | 1,053 | $ 3,328 | ||
Invested amount | $ 290 | ||||||
Total investment percentage | 5% | ||||||
Local PRC government authorities amount | 3,753 | 1,897 | 1,566 | ||||
Value-added tax deduction | 3,426 | 1,729 | 1,322 | ||||
High-tech enterprises | 327 | 168 | $ 244 | ||||
Deferred tax assets, regulatory assets and liabilities | 939 | $ 972 | |||||
Underpayment of taxes | $ 14,358 | ¥ 100,000 | |||||
SunCar [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity interest percentage | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Consolidated Financial Statements | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Consolidated Financial Statements [Abstract] | ||
Balance sheet items, except for equity accounts | 7.2513 | 6.8972 |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.9283 | 6.4835 |
Discontinued Operations (Detail
Discontinued Operations (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Mar. 01, 2022 USD ($) | Mar. 01, 2022 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | [1] | Dec. 31, 2020 USD ($) | Nov. 24, 2020 USD ($) | ||
Discontinued Operations (Details) [Line Items] | |||||||||
Net liability | ¥ 1 | $ 168 | $ 45,564 | ||||||
Financial Leasing | ¥ | 1 | ||||||||
Additional paid-in capital | 21,059 | 114,084 | 95,764 | $ 867 | $ 14,432 | ||||
Non controlling interest (in Dollars) | $ 2,163 | ||||||||
Related party cost | ¥ 1 | $ 4,710 | [1] | ||||||
Transfer percentage | 25% | 25% | |||||||
Shengda Group [Member] | |||||||||
Discontinued Operations (Details) [Line Items] | |||||||||
Additional paid-in capital | 21,874 | ||||||||
Non controlling interest (in Dollars) | $ 2,168 | ||||||||
Business Combination [Member] | |||||||||
Discontinued Operations (Details) [Line Items] | |||||||||
Equity interest | 25% | ||||||||
Business Combination [Member] | ASTS Holdings Limited [Member] | |||||||||
Discontinued Operations (Details) [Line Items] | |||||||||
Equity interest | 100% | ||||||||
Business Combination [Member] | Mr. Li Qin [Member] | |||||||||
Discontinued Operations (Details) [Line Items] | |||||||||
Equity interest | 100% | ||||||||
[1] Other payables to Shengda Group were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of Discontinued Operations, Net of Tax - Discontinued Operations [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | [1] | Dec. 31, 2022 | [2] | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Discontinued Operations, Net of Tax [Abstract] | |||||||
Interest income | $ 147 | $ 142 | $ 1,884 | $ 3,280 | |||
Interest cost and operating expenses | (1,177) | ||||||
Loss from discontinued operations before income tax | (1,030) | (994) | (27,682) | (16,397) | |||
Income tax expense | (1) | 19 | 1 | ||||
Net Loss from discontinued operations, net | $ (1,031) | $ (994) | $ (27,663) | $ (16,396) | |||
[1] The result of discontinued operations included those of discontinued operations from January 1, 2022 to March 1, 2022. |
Segment Information (Details) -
Segment Information (Details) - Schedule of Operating Segments Based on Internal Management Report - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Automotive after-sales service [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 98,813 | $ 89,851 | |||
Depreciation and amortization | (1,884) | (1,633) | $ (3,452) | $ (3,404) | $ (1,090) |
Segment income (loss) before tax | 6,332 | 8,466 | (8,109) | 15,891 | 12,864 |
Insurance intermediation service [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 47,710 | 29,346 | |||
Depreciation and amortization | (1,278) | (407) | (1,558) | (578) | (449) |
Segment income (loss) before tax | (938) | (819) | (2,212) | (4,256) | (3,616) |
Others [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 12,855 | 5,531 | |||
Depreciation and amortization | (28) | (37) | (68) | (73) | (74) |
Segment income (loss) before tax | (3,408) | (34) | (353) | (1,105) | (874) |
Consolidated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 159,378 | 124,728 | |||
Depreciation and amortization | (3,190) | (2,077) | (5,078) | (4,055) | (1,613) |
Segment income (loss) before tax | $ 1,986 | $ 7,613 | $ (10,674) | $ 10,530 | $ 8,374 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of Total Assets from Continuing Operations by Segments - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of total assets from continuing operations by segments [Abstract] | |||
Segment assets | |||
Automotive after-sales service | 136,841 | 113,992 | 153,723 |
Insurance intermediation service | 66,893 | 68,123 | 49,729 |
Others | 20,285 | 9,853 | 1,943 |
Total segment assets from continuing operations | $ 224,019 | $ 191,968 | $ 205,395 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Net [Abstract] | |||||
Bad debt expense | $ 3,694 | $ 245 | $ 25,981 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Accounts Receivable Net [Abstract] | ||||||
Accounts receivable | $ 95,783 | $ 110,967 | $ 85,637 | |||
Allowance for doubtful accounts | (21,190) | (25,348) | $ (237) | |||
Accounts receivable, net | $ 74,593 | $ 85,619 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of Allowance for Doubtful Accounts - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Allowance of Doubtful Accounts [Abstract] | |||||
Balance at the beginning of the period | $ 25,348 | ||||
Adoption of ASC326 | 637 | ||||
Additions | 245 | ||||
Reversal | (3,694) | ||||
Foreign currency translation | (1,101) | (8) | (633) | ||
Balance at the end of the period | $ 21,190 | $ 237 | $ 25,348 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 17, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | ||||||
Deferred cost | $ 1,499 | |||||
Price per share (in Dollars per share) | $ 10 | |||||
Provision for doubtful recoveries | $ 148 | $ 39 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepayments and Other Current Assets - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Schedule of Prepayments and Other Current Assets [Abstract] | ||||||
Advances to suppliers | $ 40,689 | $ 4,537 | $ 1,699 | |||
Value-added tax (“VAT”) prepayment | 2,276 | 1,954 | 3,246 | |||
Advance for deferred cost of Business Combination | [1] | 1,325 | [1],[2] | [2] | ||
Deferred IPO costs | 868 | |||||
Other receivables from third parties | 804 | 763 | ||||
Prepaid expenses and other current assets | 43,769 | 9,447 | 5,931 | |||
Allowance for doubtful accounts | (168) | (177) | (191) | |||
Prepaid expenses and other current assets, net | $ 43,601 | $ 9,270 | $ 5,740 | |||
[1] The advance for deferred cost of Business Combination represented the advances to Goldenbridge Acquisition Limited (“GBRG”) in form of non-interest-bearing loans, pursuant to the agreement and plan of merger, dated as of May 23, 2022, which provides for a Business Combination between GBRG and Auto Services Group Limited. Such advance was provided to GBRG to extend the period of time for GBRG to consummate the Business Combination. |
Software and Equipment, Net (De
Software and Equipment, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Software and Equipment, Net [Abstract] | |||||
Depreciation expense | $ 2,840 | $ 2,077 | $ 5,078 | $ 4,055 | $ 1,613 |
Software and Equipment, Net (_2
Software and Equipment, Net (Details) - Schedule of Property, Software and Equipment, Net - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cost | |||||
Property plant and equipment , gross | $ 28,399 | $ 29,768 | $ 18,244 | ||
Less: accumulated depreciation | (13,359) | (11,277) | (7,505) | ||
Property and equipment, net | 15,040 | 18,491 | 10,739 | ||
Vehicles [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 994 | 979 | 1,094 | ||
Office equipment and furniture [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 176 | 184 | 201 | ||
Electronic equipment [Member[ | |||||
Cost | |||||
Property plant and equipment , gross | 10,106 | 10,587 | 10,277 | ||
Computer software [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 15,716 | 16,523 | [1] | 5,053 | [1] |
Leasehold Improvements [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 710 | 762 | 825 | ||
Others [Member] | |||||
Cost | |||||
Property plant and equipment , gross | $ 697 | $ 733 | $ 794 | ||
[1]In 2022, Hybrid Cloud Platform developed with the assistance of a third-party cloud service provider was partially substantially ready for use and transferred from other non-current assets. Cost of Hybrid Cloud Platform represents the purchase price of the platform and other expenditures incurred to bring the platform into its intended use. The application of the Hybrid Cloud Platform was to improve the IT development capability for internal-used software platforms which provide automotive after-sales services and insurance intermediation services to customers, and Software-As-A-Service (“SaaS”) products which are provided to business partners as technology services |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - Schedule of Other Non-Current Assets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Non-Current Assets (Details) - Schedule of Other Non-Current Assets [Line Items] | |||
Other non-current assets | $ 17,267 | $ 14,423 | $ 24,385 |
Private clouds in construction [Member] | |||
Other Non-Current Assets (Details) - Schedule of Other Non-Current Assets [Line Items] | |||
Other non-current assets | 16,881 | 13,629 | 21,893 |
Prepayment for equipment [Member] | |||
Other Non-Current Assets (Details) - Schedule of Other Non-Current Assets [Line Items] | |||
Other non-current assets | $ 386 | $ 794 | $ 858 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - Schedule of Accrued Expenses and Other Liabilities - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Schedule Of Accrued Expenses And Other Liabilities Abstract | ||
Payroll payable | $ 1,755 | $ 1,884 |
Value added taxes and other taxes payable | 973 | 993 |
Subscription amount received for unvested restricted shares | 724 | 913 |
Technical service fee payable | 438 | |
Other accrued expenses | 585 | 621 |
Total | $ 4,037 | $ 4,849 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Leases within the Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Operating Leases Within the Consolidated Balance Sheets [Abstract] | ||
Operating lease right-of-use assets, net | $ 1,514 | $ 344 |
Lease liabilities - current | 624 | 315 |
Lease liabilities – non-current | 796 | |
Total operating lease liabilities | $ 1,420 | $ 315 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Components of Lease Expenses - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lease cost | |||
Amortization of right-of-use assets | $ 350 | $ 619 | $ 619 |
Interest of operating lease liabilities | 9 | 29 | $ 29 |
Balance at the end of the period | $ 359 | $ 648 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Other Information Related to Leases | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Other Information Related to Leases [Abstract] | ||
Weighted-average remaining lease term | 7 months 20 days | 7 months 9 days |
Weighted-average discount rate | 4.30% | 4.30% |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of Future Minimum Payments - Operating Leases [Member] $ in Thousands | Jun. 30, 2023 USD ($) |
Leases (Details) - Schedule of Future Minimum Payments [Line Items] | |
Remainder of 2023 | $ 319 |
2024 | 687 |
2025 | 478 |
2026 | 2 |
Total lease payments | 1,486 |
Less: imputed interest | (66) |
Total | $ 1,420 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 04, 2022 USD ($) | May 19, 2023 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2022 $ / shares | May 17, 2023 USD ($) $ / shares | Dec. 03, 2021 ¥ / shares | |
Equity (Details) [Line Items] | ||||||
Investor agreed to purchase of shares (in Shares) | shares | 2,173,657 | |||||
Total consideration amount | $ 21,737 | |||||
Additional paid-in capital | $ 21,737 | |||||
Ordinary shares issued (in Shares) | shares | 160,000 | |||||
Advance for deferred cost | $ 1,499 | |||||
Converted into ordinary shares price per share (in Dollars per share) | (per share) | $ 10 | ¥ 4 | ||||
Average price percentage | 90% | |||||
Private Placement [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Common stock par value (in Dollars per share) | $ / shares | $ 0.0001 | |||||
Warrant [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 11.5 | |||||
GEM Investor [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Total equity percentage | 3.30% | |||||
GEM Investor [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Ordinary shares value | $ 125,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Sep. 09, 2020 ¥ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) ¥ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Share-Based Compensation (Details) [Line Items] | |||||||
Compensation expenses cost | $ 776 | $ 830 | $ 1,599 | $ 1,668 | $ 520 | ||
Compensation expense restricted shares amounted | $ 3,595 | $ 4,159 | $ 4,159 | ||||
Weighted-average period | 2 years 2 months 1 day | 2 years 8 months 1 day | |||||
Employees granted restricted shares vesting rate | 20% | ||||||
Employees granted restricted shares vesting period | 5 years | ||||||
Employees subscription payment | $ 1,553 | ||||||
Fair value of shares grant date per share | (per share) | $ 3.94 | $ 25.71 | |||||
Share Incentive Plan 2020 [Member] | |||||||
Share-Based Compensation (Details) [Line Items] | |||||||
Employees shares granted (in Shares) | shares | 2,500,000 | ||||||
Employees contribution price per share (in Yuan Renminbi per share) | ¥ / shares | ¥ 4.2 |
Taxation (Details)
Taxation (Details) $ in Thousands, ¥ in Millions, $ in Millions | 12 Months Ended | ||||||
Jun. 30, 2023 USD ($) | Apr. 01, 2018 HKD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Taxation (Details) [Line Items] | |||||||
Assessable profit percentage | 8.25% | ||||||
Accounting standards, percentage | 25% | 25% | |||||
Preferential tax rate | 15% | 15% | |||||
Income tax rate | 15% | 15% | |||||
Net operating loss carryforwards | $ | $ 35,848 | $ 32,266 | $ 15,830 | ||||
Deferred tax assets, net operating loss carryforwards | $ | 8,635 | 7,676 | 4,142 | ||||
valuation allowances | $ | $ 8,475 | $ 7,577 | $ 2,314 | ||||
Profits tax rate | $ | $ 2 | ||||||
Taxable income | ¥ | ¥ 1 | ¥ 1 | |||||
Preferential tax rate | 10% | 5% | |||||
PRC [Member] | |||||||
Taxation (Details) [Line Items] | |||||||
Taxable income | ¥ | ¥ 3 | ||||||
Preferential tax rate | 2.50% | 10% | |||||
Minimum [Member] | |||||||
Taxation (Details) [Line Items] | |||||||
Taxable income | ¥ | ¥ 1 | ¥ 1 | |||||
Maximum [Member] | |||||||
Taxation (Details) [Line Items] | |||||||
Taxable income | ¥ | ¥ 3 | ¥ 3 |
Taxation (Details) - Schedule o
Taxation (Details) - Schedule of Income Tax Provision - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Income Tax Provision [Abstract] | |||||
Current income tax expenses | $ 926 | $ 1,139 | $ 2,182 | $ 2,062 | $ 4,028 |
Deferred income tax benefit | (76) | (249) | (1,951) | (1,124) | (2,276) |
Total income tax expense | $ 850 | $ 890 | $ 231 | $ 938 | $ 1,752 |
Taxation (Details) - Schedule_2
Taxation (Details) - Schedule of Provision for Income Taxes and the Provision at the Prc, Mainland Statutory Rate - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Provision For Income Taxes and the Provision at the Prc Mainland Statutory Rate [Abstract] | |||||
Income before income tax expense | $ 1,986 | $ 7,613 | $ (10,674) | $ 10,530 | $ 8,374 |
Computed income tax expense with statutory tax rate | 573 | 1,903 | (2,669) | 2,632 | 2,093 |
Additional deduction for R&D expenses | (237) | (257) | (635) | (509) | (386) |
Tax effect of preferred tax rate | (791) | (766) | 1,050 | (1,389) | (1,255) |
Tax effect of favorable tax rates on small-scale and low-profit entities | (15) | (5) | 123 | (93) | (52) |
Tax effect of tax relief | (2) | (5) | (7) | (9) | (51) |
Tax effect of non-deductible items | 35 | 11 | 26 | 71 | 27 |
Tax effect due to the disposal of Shengda Group* | (3,868) | (3,580) | |||
Tax effect of deferred tax effect of tax rate change | (42) | 129 | |||
Changes in valuation allowance | 1,329 | 3,877 | 5,794 | 235 | 1,376 |
Income tax expense | $ 850 | $ 890 | $ 231 | $ 938 | $ 1,752 |
Taxation (Details) - Schedule_3
Taxation (Details) - Schedule of Deferred Tax Assets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | |||
Temporary difference in accounts receivable recognition | $ 5,092 | $ 5,353 | $ 5,794 |
Temporary difference in research and development costs | 3,983 | 3,738 | 4,211 |
Net operating loss carried forward | 8,635 | 7,676 | 4,142 |
Share-based compensation | 185 | 78 | 253 |
Allowance for doubtful accounts | 3,210 | 3,802 | |
Total deferred tax assets | 21,105 | 20,647 | 14,400 |
Valuation allowance | (8,475) | (7,577) | (2,314) |
Deferred tax assets, net of valuation allowance | $ 12,630 | $ 13,070 | $ 12,086 |
Taxation (Details) - Schedule_4
Taxation (Details) - Schedule of Changes in Valuation Allowance - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Changes in Valuation Allowance [Abstract] | ||||
Balance at beginning of the period | $ 7,577 | $ 2,314 | $ 2,314 | $ 2,030 |
Additions | 1,268 | 5,436 | 5,436 | 233 |
Foreign currency translation adjustments | (370) | (173) | (173) | 51 |
Balance at end of the period | $ 8,475 | $ 7,577 | $ 7,577 | $ 2,314 |
Taxation (Details) - Schedule_5
Taxation (Details) - Schedule of Net Operating Loss Carryforwards - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
Total | $ 35,848 | $ 676 |
Tax Year 2023 [Member] | ||
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
Total | 643 | |
TaxYear2024 [Member] | ||
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
Total | 2,017 | |
TaxYear2025 [Member] | ||
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
Total | 5,263 | |
TaxYear2026 [Member] | ||
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
Total | 5,397 | |
TaxYear2027 [Member] | ||
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
Total | 16,817 | |
TaxYear2028 [Member] | ||
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
Total | $ 5,711 |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ / shares in Units, $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Mar. 01, 2022 CNY (¥) | Dec. 03, 2021 CNY (¥) ¥ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | [1] | May 17, 2023 $ / shares | Apr. 30, 2023 | ||
Related Party Transactions (Details) [Line Items] | ||||||||
Price per share | ¥ / shares | ¥ 4 | |||||||
Due from related parties | ¥ 1,000 | $ 40,854 | [1] | |||||
Annual interest rate | 1% | 1% | ||||||
Per Share | (per share) | ¥ 4 | $ 10 | ||||||
Due from related parties | ¥ 282,000,000 | |||||||
Transfer balance | ¥ 282,000,000 | |||||||
Shengda Group [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Interest percentage | 55.09% | |||||||
Annual interest rate | 1% | |||||||
Shengda Group [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Total equity amount | ¥ 1 | |||||||
Shanghai Feiyou [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Due from related parties | ¥ 282,000,000 | |||||||
Shengda Group [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Due from related parties | ¥ 282,000,000 | |||||||
[1] On December 3, 2021, Shengda Group transfered all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online, which is eliminated in the consolidated financial statements as an intercompany balance as of December 31, 2021. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025 (See Note 21). |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Related Parties Transaction | 6 Months Ended |
Jun. 30, 2023 | |
Shengda Group [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Shengda Group |
Relationship with the Group | An entity ultimately controlled by Mr. Ye Zaichang, SunCar’s Chief Executive Officer |
Automobile Service Group Ltd. [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Automobile Service Group Ltd. |
Relationship with the Group | Principal shareholder of the Company |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Balances with Related Parties ¥ in Thousands, $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 01, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
Shengda Group | |||||
Amount due to related parties, current | $ 168 | $ 45,564 | ¥ 1 | ||
Shengda Group | |||||
Amount due to related parties, non current | 43,330 | $ 52,659 | |||
Payables due to the transfer of SUNCAR Online [Member] | |||||
Shengda Group | |||||
Amount due to related parties, current | [1] | 40,854 | |||
Others [Member] | |||||
Shengda Group | |||||
Amount due to related parties, current | [2] | 4,710 | |||
Automobile Service Group Ltd. [Member] | |||||
Shengda Group | |||||
Amount due to related parties, current | [3] | 168 | |||
Payables due to the transfer of SUNCAR Online [Member] | |||||
Shengda Group | |||||
Amount due to related parties, non current | [1] | 38,892 | |||
Others two [Member] | |||||
Shengda Group | |||||
Amount due to related parties, non current | [2] | $ 4,438 | |||
[1] On December 3, 2021, Shengda Group transferred all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Shanghai Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025. Therefore, the Group reclassified the balance to non-current portion after the extension. Other payables were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025. Therefore, the Group reclassified the balance to non-current portion after the extension. |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Convertible Preferred Stock [Member] | |||
Net Income (Loss) Per Share (Details) [Line Items] | |||
Convertible preferred shares | 193,668,614 | 193,668,614 | 193,668,614 |
Net Income (Loss) Per Share (_2
Net Income (Loss) Per Share (Details) - Schedule of Basic and Diluted Net Income (Loss) Per Share - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||||
Net income (loss) from continuing operations attributable to SunCar Technology’s ordinary shareholders | $ (3,379) | $ 3,155 | $ (5,675) | $ 3,942 | $ 3,403 |
Net loss from discontinued operations attributable to SunCar Technology’s ordinary shareholders | (1,030) | (994) | (27,663) | (16,396) | |
Numerator for basic and diluted net income (loss) per share calculation | $ (3,379) | $ 2,125 | $ (6,669) | $ (23,721) | $ (12,993) |
Denominator: | |||||
Weighted average number of ordinary shares | 81,374,609 | 80,000,000 | 225,000,000 | 225,000,000 | 225,000,000 |
Net income (loss) from continuing operation attributable to SunCar Technology’s ordinary shareholders per ordinary share | |||||
Basic | $ (0.04) | $ 0.04 | $ (0.03) | $ 0.01 | $ 0.01 |
Net loss from discontinued operation attributable to SunCar Technology’s ordinary shareholders per ordinary share | |||||
Basic | 0 | (0.01) | 0 | (0.12) | (0.07) |
Net income (loss) attributable to SunCar Technology’s ordinary shareholders per ordinary share | |||||
Basic | $ (0.04) | $ 0.03 | $ (0.03) | $ (0.11) | $ (0.06) |
Net Income (Loss) Per Share (_3
Net Income (Loss) Per Share (Details) - Schedule of Basic and Diluted Net Income (Loss) Per Share (Parentheticals) - $ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Basic And Diluted Net Income Loss Per Share Abstract | |||||
Diluted | $ (0.04) | $ 0.04 | $ (0.03) | $ 0.01 | $ 0.01 |
Diluted | 0 | (0.01) | 0 | (0.12) | (0.07) |
Diluted | $ (0.04) | $ 0.03 | $ (0.03) | $ (0.11) | $ (0.06) |
Concentration Risk (Details)
Concentration Risk (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Concentration Risk [Abstract] | ||
Total revenue percentage | 10% | 10% |
Accounts receivable percentage | 10% | 10% |
Total purchase percentage | 10% | 10% |
Represent percentage | 10% | 10% |
Concentration Risk (Details) -
Concentration Risk (Details) - Schedule of Group’s Total Revenue | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | |||
Customer A [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue percentage | 19% | 20% | ||
Customer B [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue percentage | 17% | [1] | ||
Customer C [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue percentage | [1] | 18% | ||
Customer D [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenue percentage | [1] | 11% | ||
[1]represent percentage less than 10% |
Concentration Risk (Details) _2
Concentration Risk (Details) - Schedule of Group’s Total Accounts Receivable | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | ||
Customer E [Member] | |||
Variable Interest Entity [Line Items] | |||
Accounts receivable percentage | 16% | 33% | |
Customer C [Member] | |||
Variable Interest Entity [Line Items] | |||
Accounts receivable percentage | 16% | 30% | |
Customer F [Member] | |||
Variable Interest Entity [Line Items] | |||
Accounts receivable percentage | 13% | 10% | |
Customer D [Member] | |||
Variable Interest Entity [Line Items] | |||
Accounts receivable percentage | 10% | [1] | |
[1]represent percentage less than 10% |
Concentration Risk (Details) _3
Concentration Risk (Details) - Schedule of Group’s Total Purchase | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Supplier A [Member] | |||||||||
Concentration Risk (Details) - Schedule of Group’s Total Purchase [Line Items] | |||||||||
Total purchase percentage | 17% | 12% | [1] | [1] | 10% | ||||
Supplier B [Member] | |||||||||
Concentration Risk (Details) - Schedule of Group’s Total Purchase [Line Items] | |||||||||
Total purchase percentage | 13% | 23% | 24% | 12% | [1] | ||||
Supplier C [Member] | |||||||||
Concentration Risk (Details) - Schedule of Group’s Total Purchase [Line Items] | |||||||||
Total purchase percentage | [2] | 18% | 19% | 11% | [1] | ||||
[1]represent percentage less than 10%[2]represent percentage less than 10% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Capital commitment | $ 8,018 | $ 13,022 |
Commitment expected term | 1 year | 1 year |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Commitments and Contingencies - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies (Details) - Schedule of Commitments and Contingencies [Line Items] | ||
Lease commitment | $ 1,517 | $ 348 |
1-3 years | 823 years | |
Within 1 year [Member] | ||
Commitments and Contingencies (Details) - Schedule of Commitments and Contingencies [Line Items] | ||
Lease commitment | $ 694 | $ 348 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | |||||
May 19, 2023 | Dec. 31, 2022 | Dec. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 01, 2023 | |
Subsequent Events (Details) [Line Items] | ||||||
Shareholders payable amount | $ 800,000,000 | |||||
Price per share (in Dollars per share) | $ 10 | |||||
Shares issued (in Shares) | 160,000 | |||||
Revenue | $ 258,000,000,000 | |||||
Common Class A [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Shares issued (in Shares) | 1,600,000 | |||||
Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Purchase in private placement (in Shares) | 2,173,657 | |||||
Total consideration | $ 21,736,569,250 | |||||
Subsequent Event [Member] | Common Class A [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Common stock par value (in Dollars per share) | $ 0.0001 | |||||
Forecast [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Revenue | $ 459,000,000,000 | $ 352,000,000,000 | ||||
Forecast [Member] | Common Class A [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Shares issued (in Shares) | 1,600,000 | 1,600,000 | ||||
Forecast [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Annual interest rate | 1% |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of Major Subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Shanghai Xuanbei Automobile Service Co., Limited (“Shanghai Xuanbei”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation | Apr. 26, 2018 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100% |
Principal Activities | Automotive after-sales service |
Shanghai Shengshi Dalian Automobile Service Co., Limited (“Shengda Automobile”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation | Jun. 08, 2013 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 84.89% |
Principal Activities | Automotive after-sales service |
Sun Car Online Insurance Agency Co., Ltd. (“SUNCAR Online”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation | Dec. 05, 2007 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 56.51% |
Principal Activities | Insurance intermediation service |
Haiyan Trading (Shanghai) Co., Limited (“Haiyan”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation | Nov. 22, 2012 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100% |
Principal Activities | Holding company |
Shanghai Feiyou Trading Co., Limited (“Shanghai Feiyou”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation | Jun. 11, 2009 |
Place of Incorporation | PRC |
Percentage of Effective Ownership | 100% |
Principal Activities | Technology services |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of the Estimated Useful Lives of the Assets | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Vehicles [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Vehicles [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Office Equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Electronic equipment [Member[ | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Electronic equipment [Member[ | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer software [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Computer software [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Over the shorter of lease term or the estimated useful lives of the assets |
Leasehold Improvements [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Over the shorter of lease term or the estimated useful lives of the assets |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Revenue are Disaggregated - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Consolidated Financial Statements [Abstract] | |||||
Revenues | $ 159,378,000 | $ 124,728,000 | $ 282,413,000 | $ 249,235,000 | $ 238,925,000 |
Balance sheet items, except for equity accounts | 6,897.2000 | 6,372.6000 | |||
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6,729 | 6,450.8000 | 6,904.2000 | ||
Transferred at Point in Time [Member] | |||||
Schedule of Consolidated Financial Statements [Abstract] | |||||
Revenues | 266,934,000 | 244,646,000 | 238,399,000 | ||
Transferred over Time [Member] | |||||
Schedule of Consolidated Financial Statements [Abstract] | |||||
Revenues | $ 15,479,000 | $ 4,589,000 | $ 526,000 |
Discontinued Operations (Deta_3
Discontinued Operations (Details) - Schedule of Classes of Assets and Liabilities of Discontinued Operations - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | |||
Cash | $ 570 | ||
Prepaid expenses and other current assets | 3,305 | ||
Total current assets | 3,875 | ||
Noncurrent assets | |||
Long-term investment | 169 | ||
Long-term receivables | 4,597 | ||
Property, plant and equipment, net | 234 | ||
Total noncurrent assets | 5,000 | ||
TOTAL ASSETS | 8,875 | ||
Current liabilities | |||
Short-term loan | 1,569 | ||
Accounts payable | 161 | ||
Advance from customers | 470 | ||
Accrued expenses and other current liabilities | 15,726 | ||
Tax payable | 9,408 | ||
Total current liabilities | 27,334 | ||
Noncurrent liabilities | |||
Other long-term liabilities | $ 43,330 | 52,659 | |
Total noncurrent liabilities | 52,659 | ||
Total liabilities | $ 79,993 |
Discontinued Operations (Deta_4
Discontinued Operations (Details) - Schedule of Discontinued Operations, Net of Tax - Discontinued Operations [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | [1] | Dec. 31, 2022 | [2] | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Interest income | $ 147 | $ 142 | $ 1,884 | $ 3,280 | |||
Interest cost | (457) | (7,322) | (5,916) | ||||
Net interest loss | (315) | (5,438) | (2,636) | ||||
Operating expenses | |||||||
Selling expenses | (22) | (235) | (535) | ||||
General and administrative expenses | (760) | (12,998) | (11,168) | ||||
Total operating expenses | (782) | (13,233) | (11,703) | ||||
Operating loss | (1,097) | (18,671) | (14,339) | ||||
Other income (expenses) | |||||||
Financial expenses, net | (70) | (604) | (719) | ||||
Investment income/(loss) | 6 | (1,778) | |||||
Other income, net | 174 | 878 | 553 | ||||
Total other (expenses) income, net | 104 | 280 | (1,944) | ||||
Loss before income tax expense | (993) | (18,391) | (16,283) | ||||
Income tax expense | (1) | (9,291) | (114) | ||||
Loss from discontinued operations, net | (1,030) | (994) | (27,682) | (16,397) | |||
Less: Net loss attributable to non-controlling interests | 1 | (19) | (1) | ||||
Net loss from discontinued operations attributable to SunCar’s ordinary shareholders | $ (1,031) | $ (994) | $ (27,663) | $ (16,396) | |||
[1] The result of discontinued operations included those of discontinued operations from January 1, 2022 to March 1, 2022. |
Segment Information (Details)_3
Segment Information (Details) - Schedule of Operating Segments Based on Internal Management Report - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Automotive after-sales service [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 98,813 | $ 89,851 | $ 199,294 | $ 187,880 | $ 154,238 |
Depreciation and amortization | (1,884) | (1,633) | (3,452) | (3,404) | (1,090) |
Segment income (loss) before tax | 6,332 | 8,466 | (8,109) | 15,891 | 12,864 |
Insurance intermediation service [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 47,710 | 29,346 | 67,640 | 56,766 | 84,161 |
Depreciation and amortization | (1,278) | (407) | (1,558) | (578) | (449) |
Segment income (loss) before tax | (938) | (819) | (2,212) | (4,256) | (3,616) |
Others [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 15,479 | 4,589 | 526 | ||
Depreciation and amortization | (28) | (37) | (68) | (73) | (74) |
Segment income (loss) before tax | (3,408) | (34) | (353) | (1,105) | (874) |
Consolidated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 282,413 | 249,235 | 238,925 | ||
Depreciation and amortization | (3,190) | (2,077) | (5,078) | (4,055) | (1,613) |
Segment income (loss) before tax | $ 1,986 | $ 7,613 | $ (10,674) | $ 10,530 | $ 8,374 |
Segment Information (Details)_4
Segment Information (Details) - Schedule of Total Assets from Continuing Operations by Segments - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of total assets from continuing operations by segments [Abstract] | |||
Segment assets | |||
Automotive after-sales service | 136,841 | 113,992 | 153,723 |
Insurance intermediation service | 66,893 | 68,123 | 49,729 |
Others | 20,285 | 9,853 | 1,943 |
Total segment assets from continuing operations | $ 224,019 | $ 191,968 | $ 205,395 |
Accounts Receivable, Net (Det_4
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, net - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Accounts Receivable Net [Abstract] | ||||||
Accounts receivable | $ 95,783 | $ 110,967 | $ 85,637 | |||
Allowance for doubtful accounts | (21,190) | (25,348) | $ (237) | |||
Accounts receivable, net | $ 74,593 | $ 85,619 | $ 85,637 |
Accounts Receivable, Net (Det_5
Accounts Receivable, Net (Details) - Schedule of Allowance for Doubtful Accounts - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Allowance of Doubtful Accounts [Abstract] | |||||
Balance at the beginning of the period | $ 25,348 | ||||
Additions | 25,981 | ||||
Foreign currency translation | (1,101) | (8) | (633) | ||
Balance at the end of the period | $ 21,190 | $ 237 | $ 25,348 |
Prepaid Expenses and Other Cu_5
Prepaid Expenses and Other Current Assets, Net (Details) - Schedule of Prepayments and Other Current Assets, Net - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Schedule Of Prepayments And Other Current Assets Net Abstract | ||||||
Advances to suppliers | $ 40,689 | $ 4,537 | $ 1,699 | |||
Value-added tax (“VAT”) receivables | 2,276 | 1,954 | 3,246 | |||
Advance for deferred cost of Business Combination | [1] | 1,325 | [1],[2] | [2] | ||
Deferred IPO costs | 868 | |||||
Others | 763 | 986 | ||||
Prepaid expenses and other current assets | 43,769 | 9,447 | 5,931 | |||
Allowance for doubtful accounts | (168) | (177) | (191) | |||
Prepaid expenses and other current assets, net | $ 43,601 | $ 9,270 | $ 5,740 | |||
[1] The advance for deferred cost of Business Combination represented the advances to Goldenbridge Acquisition Limited (“GBRG”) in form of non-interest-bearing loans, pursuant to the agreement and plan of merger, dated as of May 23, 2022, which provides for a Business Combination between GBRG and Auto Services Group Limited. Such advance was provided to GBRG to extend the period of time for GBRG to consummate the Business Combination. |
Prepaid Expenses and Other Cu_6
Prepaid Expenses and Other Current Assets, Net (Details) - Schedule of Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Allowance of Doubtful Accounts [Abstract] | |||
Balance at the beginning of the year | $ 191 | $ 41 | |
Additions | 148 | 39 | |
Foreign currency translation | (14) | 2 | 2 |
Balance at the end of the year | $ 177 | $ 191 | $ 41 |
Software and Equipment, Net (_3
Software and Equipment, Net (Details) - Schedule of Software and Equipment, Net - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cost | |||||
Property plant and equipment , gross | $ 28,399 | $ 29,768 | $ 18,244 | ||
Less: accumulated depreciation | (13,359) | (11,277) | (7,505) | ||
Software and equipment, net | 15,040 | 18,491 | 10,739 | ||
Vehicles [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 994 | 979 | 1,094 | ||
Office equipment and furniture [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 176 | 184 | 201 | ||
Electronic equipment [Member[ | |||||
Cost | |||||
Property plant and equipment , gross | 10,106 | 10,587 | 10,277 | ||
Computer software [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 15,716 | 16,523 | [1] | 5,053 | [1] |
Leasehold Improvements [Member] | |||||
Cost | |||||
Property plant and equipment , gross | 710 | 762 | 825 | ||
Others [Member] | |||||
Cost | |||||
Property plant and equipment , gross | $ 697 | $ 733 | $ 794 | ||
[1]In 2022, Hybrid Cloud Platform developed with the assistance of a third-party cloud service provider was partially substantially ready for use and transferred from other non-current assets. Cost of Hybrid Cloud Platform represents the purchase price of the platform and other expenditures incurred to bring the platform into its intended use. The application of the Hybrid Cloud Platform was to improve the IT development capability for internal-used software platforms which provide automotive after-sales services and insurance intermediation services to customers, and Software-As-A-Service (“SaaS”) products which are provided to business partners as technology services |
Other Non-current Assets (Det_2
Other Non-current Assets (Details) - Schedule of Other Non-Current Assets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Other Non-current Assets (Details) - Schedule of Other Non-Current Assets [Line Items] | |||
Other non-current assets | $ 17,267 | $ 14,423 | $ 24,385 |
Private clouds in construction [Member] | |||
Other Non-current Assets (Details) - Schedule of Other Non-Current Assets [Line Items] | |||
Other non-current assets | 16,881 | 13,629 | 21,893 |
IT systems in construction [Member] | |||
Other Non-current Assets (Details) - Schedule of Other Non-Current Assets [Line Items] | |||
Other non-current assets | 1,634 | ||
Prepayment for equipment [Member] | |||
Other Non-current Assets (Details) - Schedule of Other Non-Current Assets [Line Items] | |||
Other non-current assets | $ 386 | $ 794 | $ 858 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Borrowings [Abstract] | |||
Interest expenses | $ 3,809 | $ 3,476 | $ 2,311 |
Weighted average interest rates | 4.89% | 4.98% | 3.95% |
Borrowings (Details) - Schedule
Borrowings (Details) - Schedule of Short-Term Borrowings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Short-Term Debt [Line Items] | |||
Total | $ 74,653 | $ 69,030 | |
Huaxia Bank Shanghai Branch Sales Department [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity | August to September, 2023 | ||
Total | $ 11,567 | 15,692 | |
Huaxia Bank Shanghai Branch Sales Department [Member] | Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 2% | ||
Huaxia Bank Shanghai Branch Sales Department [Member] | Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 4.75% | ||
China Merchants Bank Shanghai Damuqiao Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity | February to May, 2023 | ||
Total | $ 9,961 | 7,783 | |
China Merchants Bank Shanghai Damuqiao Branch [Member] | Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 4.80% | ||
China Merchants Bank Shanghai Damuqiao Branch [Member] | Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 5.30% | ||
China Minsheng Bank Shanghai Jiujiang Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity | January to July, 2023 | ||
Total | $ 7,249 | 7,736 | |
China Minsheng Bank Shanghai Jiujiang Branch [Member] | Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 3.70% | ||
China Minsheng Bank Shanghai Jiujiang Branch [Member] | Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 3.85% | ||
Bank of Communications Shanghai Putuo Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 4.79% | |
Maturity | [1] | January, 2023 | |
Total | [1] | $ 7,249 | 7,846 |
Putuo Branch of Shanghai Pudong Development Bank [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 4.60% | |
Maturity | [1] | April, 2023 | |
Total | [1] | $ 4,350 | 2,354 |
Bank of Dalian Shanghai Jing’an Sub-branch [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity | [1] | March to May, 2023 | |
Total | [1] | $ 4,350 | 4,708 |
Bank of Dalian Shanghai Jing’an Sub-branch [Member] | Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 4.31% | |
Bank of Dalian Shanghai Jing’an Sub-branch [Member] | Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 5.12% | |
Bank of Beijing Shanghai Zhangjiang Sub-branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 4.80% | |
Maturity | [1] | December, 2023 | |
Total | [1] | $ 4,350 | 3,138 |
China Construction Bank Shanghai Jing’an Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 3.70% | |
Maturity | [1] | June, 2023 | |
Total | [1] | $ 4,350 | 1,569 |
Bank of China Shanghai Gonghexin Road Sub-branch [Member] | |||
Short-Term Debt [Line Items] | |||
Maturity | [2] | March to November, 2023 | |
Total | [2] | $ 4,277 | 3,923 |
Bank of China Shanghai Gonghexin Road Sub-branch [Member] | Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [2] | 3.65% | |
Bank of China Shanghai Gonghexin Road Sub-branch [Member] | Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [2] | 4.22% | |
Bank of Nanjing North Bund Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 5.50% | |
Maturity | [1] | January, 2023 | |
Total | [1] | $ 3,625 | |
Huangpu Branch of Bank of Shanghai [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [2] | 4.70% | |
Maturity | [2] | February, 2023 | |
Total | [2] | $ 2,900 | 2,354 |
Industry bank Shanghai Zhijiang Branch [Member[ | |||
Short-Term Debt [Line Items] | |||
Maturity | [1] | February, 2023 | |
Total | [1] | $ 2,900 | |
Industry bank Shanghai Zhijiang Branch [Member[ | Minimum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 4.65% | |
Industry bank Shanghai Zhijiang Branch [Member[ | Maximum [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 5.05% | |
ICBC Shanghai Zhang Jiang high tech Park Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 3.30% | |
Maturity | [1] | September, 2023 | |
Total | [1] | $ 2,610 | |
Xiamen International Bank Shanghai Jinqiao Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 5.20% | |
Maturity | [1] | June, 2023 | |
Total | [1] | $ 1,450 | |
China CITIC Bank Shanghai Pudian Road Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 4.65% | ||
Maturity | April, 2023 | ||
Total | $ 1,435 | ||
Bank of Beijing Shanghai Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 4.31% | ||
Maturity | March, 2023 | ||
Total | $ 1,160 | 785 | |
Shanghai Rural Commercial Bank Minhang Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [2] | 5.20% | |
Maturity | [2] | June, 2023 | |
Total | [2] | $ 870 | 942 |
Shanghai Rural Commercial Bank Bund Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 4.80% | |
Maturity | [1] | February to March, 2022 | |
Total | [1] | 5,492 | |
Fubon Huayi Bank Shanghai Jing’an Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 5.60% | ||
Maturity | January, 2022 | ||
Total | 785 | ||
Zheshang Bank Shanghai Branch Sales Department [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | [1] | 6% | |
Maturity | [1] | October, 2022 | |
Total | [1] | 3,138 | |
ICBC Xinzha Road Branch [Member] | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 3.85% | ||
Maturity | March, 2022 | ||
Total | $ 785 | ||
[1]The bank borrowings were guaranteed by SUNCAR Online, one of subsidiaries of SunCar.[2]The bank borrowings were guaranteed by Shengda Automobile, one of subsidiaries of SunCar. |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities (Details) - Schedule of Accrued Expenses and Other Liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Accrued Expenses And Other Liabilities Abstract | ||
Payroll payable | $ 1,884 | $ 1,046 |
Value added taxes and other taxes payable | 993 | 144 |
Subscription amount received for unvested restricted shares | 913 | 1,318 |
Technical service fee payable | 438 | |
Other accrued expenses | 621 | 379 |
Total | $ 4,849 | $ 2,887 |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of Operating Leases - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Operating Leases With in the Consolidated Balance Sheets [Abstract] | ||
Operating lease right-of-use assets, net | $ 1,514 | $ 344 |
Lease liabilities - current | 624 | 315 |
Lease liabilities – non-current | ||
Total operating lease liabilities | $ 1,420 | $ 315 |
Leases (Details) - Schedule o_6
Leases (Details) - Schedule of Components of Lease Expenses - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lease cost | |||
Amortization of right-of-use assets | $ 350 | $ 619 | $ 619 |
Interest of operating lease liabilities | $ 9 | $ 29 | 29 |
Total Lease cost | $ 648 |
Leases (Details) - Schedule o_7
Leases (Details) - Schedule of Other Information Related to Leases | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Other Information Related to Leases [Abstract] | ||
Weighted-average remaining lease term | 7 months 20 days | 7 months 9 days |
Weighted-average discount rate | 4.30% | 4.30% |
Leases (Details) - Schedule o_8
Leases (Details) - Schedule of Future Minimum Payments $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Schedule of Future Minimum Payments [Abstract] | |
2023 | $ 348 |
Total lease payments | 348 |
Less: imputed interest | (33) |
Total | $ 315 |
Convertible Preferred Shares (D
Convertible Preferred Shares (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Convertible Preferred Shares (Details) [Line Items] | |
Rate of percentage | 8% |
Series A Preferred Stock [Member] | |
Convertible Preferred Shares (Details) [Line Items] | |
Convertible preferred shares | 45,614,646 |
Percentage of original Issued | 120% |
Limited Series A Convertible Preferred Shares [Member] | |
Convertible Preferred Shares (Details) [Line Items] | |
Convertible preferred shares | 27,053,437 |
Series B Preferred Stock [Member] | |
Convertible Preferred Shares (Details) [Line Items] | |
Convertible preferred shares | 121,000,531 |
Percentage of original Issued | 130% |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) | 12 Months Ended | ||||||||
Oct. 26, 2021 USD ($) | Oct. 26, 2021 CNY (¥) | Nov. 24, 2020 USD ($) $ / shares ¥ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2023 USD ($) | Mar. 01, 2022 CNY (¥) | Nov. 24, 2020 CNY (¥) | |
Non-Controlling Interests (Details) [Line Items] | |||||||||
Individual investor | $ 33,097,000 | ¥ 216,000,000 | |||||||
Share amount (in Shares) | shares | 8,400,001 | ||||||||
Purchase price (in Yuan Renminbi per share) | ¥ / shares | $ 25.71 | ||||||||
Purchase price per share (in Dollars per share) | $ / shares | $ 3.94 | ||||||||
Total equity interest percentage | 14.38% | 14.38% | |||||||
Additional paid-in capital (in Dollars) | $ 14,432,000 | $ 95,764,000 | $ 867,000 | $ 114,084,000 | ¥ 21,059,000 | ||||
Subsidiary owned | 100% | 100% | 100% | 100% | |||||
Variable interest percentage | 0.99% | 0.39% | |||||||
Non-controlling interest | 0.26% | 0.99% | 0.39% | ||||||
Non-controlling interest | $ 6,620 | ¥ 42,702 | $ 223,000 | ||||||
Non-controlling interest (in Dollars) | $ 234 | $ 948,000 | |||||||
Dividend paid | $ 15,859 | ¥ 102,304 | |||||||
SunCar [Member] | |||||||||
Non-Controlling Interests (Details) [Line Items] | |||||||||
Additional paid-in capital (in Dollars) | $ 276 | $ 236,000 | |||||||
Variable interest percentage | 100% | ||||||||
Jiarui and Haiyan [Member] | |||||||||
Non-Controlling Interests (Details) [Line Items] | |||||||||
Subsidiary owned | 100% | ||||||||
Minimum [Member] | |||||||||
Non-Controlling Interests (Details) [Line Items] | |||||||||
Variable interest percentage | 0.01% | ||||||||
Maximum [Member] | |||||||||
Non-Controlling Interests (Details) [Line Items] | |||||||||
Variable interest percentage | 0.25% |
Taxation (Details) - Schedule_6
Taxation (Details) - Schedule of Income Tax Provision - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Income Tax Provision [Abstract] | |||||
Current income tax expenses | $ 926 | $ 1,139 | $ 2,182 | $ 2,062 | $ 4,028 |
Deferred income tax benefit | (76) | (249) | (1,951) | (1,124) | (2,276) |
Total income tax expense | $ 850 | $ 890 | $ 231 | $ 938 | $ 1,752 |
Taxation (Details) - Schedule_7
Taxation (Details) - Schedule of Provision for Income Taxes and the Provision at the PRC, Mainland Statutory Rate - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Provision For Income Taxes and the Provision at the Prc Mainland Statutory Rate [Abstract] | |||||
Income (Loss) before income tax expense | $ 1,986 | $ 7,613 | $ (10,674) | $ 10,530 | $ 8,374 |
Computed income tax expense (benefit) with statutory tax rate | 573 | 1,903 | (2,669) | 2,632 | 2,093 |
Additional deduction for research and development expenses | (237) | (257) | (635) | (509) | (386) |
Tax effect of preferred tax rate | (791) | (766) | 1,050 | (1,389) | (1,255) |
Tax effect of favorable tax rates on small-scale and low-profit entities | (15) | (5) | 123 | (93) | (52) |
Tax effect of tax relief | (2) | (5) | (7) | (9) | (51) |
Tax effect of non-deductible items | 35 | 11 | 26 | 71 | 27 |
Tax effect due to the disposal of Shengda Group | (3,868) | (3,580) | |||
Tax effect of deferred tax effect of tax rate change | (42) | 129 | |||
Changes in valuation allowance | 1,329 | 3,877 | 5,794 | 235 | 1,376 |
Income tax expense | $ 850 | $ 890 | $ 231 | $ 938 | $ 1,752 |
Taxation (Details) - Schedule_8
Taxation (Details) - Schedule of Deferred Tax Assets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | |||
Temporary difference in accounts receivable recognition | $ 5,092 | $ 5,353 | $ 5,794 |
Temporary difference in research and development costs | 3,983 | 3,738 | 4,211 |
Net operating loss carried forward | 8,635 | 7,676 | 4,142 |
Share-based compensation | 185 | 78 | 253 |
Allowance for doubtful accounts | 3,210 | 3,802 | |
Total deferred tax assets | 21,105 | 20,647 | 14,400 |
Valuation allowance | (8,475) | (7,577) | (2,314) |
Deferred tax assets, net of valuation allowance | $ 12,630 | $ 13,070 | $ 12,086 |
Taxation (Details) - Schedule_9
Taxation (Details) - Schedule of Changes in Valuation Allowance - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Changes in Valuation Allowance [Abstract] | ||||
Balance at beginning of the period | $ 7,577 | $ 2,314 | $ 2,314 | $ 2,030 |
Additions | 1,268 | 5,436 | 5,436 | 233 |
Foreign currency translation adjustments | (370) | (173) | (173) | 51 |
Balance at end of the period | $ 8,475 | $ 7,577 | $ 7,577 | $ 2,314 |
Taxation (Details) - Schedul_10
Taxation (Details) - Schedule of Net Operating Loss Carryforwards - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Net Operating Loss Carryforwards [Abstract] | ||
2023 | $ 35,848 | $ 676 |
2024 | 2,303 | |
2025 | 5,534 | |
2026 | 5,757 | |
2027 | 17,996 | |
Total | $ 32,266 |
Net Income (Loss) Per Share (_4
Net Income (Loss) Per Share (Details) - Schedule of Basic and Diluted Net Loss Per Share - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||||
Net income/(loss) from continuing operations attributable to SunCar’s ordinary shareholders (in Dollars) | $ (5,675) | $ 3,942 | $ 3,403 | ||
Net loss from discontinued operations attributable to SunCar’s ordinary shareholders (in Dollars) | (994) | (27,663) | (16,396) | ||
Numerator for basic and diluted net loss per share calculation (in Dollars) | $ (3,379) | $ 2,125 | $ (6,669) | $ (23,721) | $ (12,993) |
Denominator: | |||||
Weighted average number of ordinary shares (in Shares) | 225,000,000 | 225,000,000 | 225,000,000 | ||
Incremental weighted average number of ordinary shares from assumed conversion of preferred shares using if-converted method (in Shares) | 193,668,614 | 193,668,614 | 193,668,614 | ||
Net income/(loss) from continuing operations attributable to SunCar’s ordinary shareholders per ordinary share | |||||
Basic | $ (0.04) | $ 0.04 | $ (0.03) | $ 0.01 | $ 0.01 |
Diluted | (0.04) | 0.04 | (0.03) | 0.01 | 0.01 |
Net loss from discontinued operations attributable to SunCar’s ordinary shareholders per ordinary share | |||||
Basic | 0 | (0.01) | 0 | (0.12) | (0.07) |
Net loss attributable to SunCar’s ordinary shareholders per ordinary share | |||||
Basic | $ (0.04) | $ 0.03 | $ (0.03) | $ (0.11) | $ (0.06) |
Net Income (Loss) Per Share (_5
Net Income (Loss) Per Share (Details) - Schedule of Basic and Diluted Net Loss Per Share (Parentheticals) - $ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of basic and diluted net loss per share [Abstract] | |||||
Diluted | $ 0 | $ (0.01) | $ 0 | $ (0.12) | $ (0.07) |
Diluted | $ (0.04) | $ 0.03 | $ (0.03) | $ (0.11) | $ (0.06) |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of Major Related Parties Transaction | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Major Related Paries Transaction [Abstract] | ||
Name of related parties | Shengda Group | |
Relationship with the Group | An entity ultimately controlled by Mr. Ye Zaichang, SunCar’s Chief Executive Officer |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of Transactions with Interested and Related Parties ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 01, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |||
Shengda Group | |||||
Payables due to the transfer of SUNCAR Online | ¥ 1 | $ 40,854 | [1] | [1] | |
Other payables | ¥ 1 | 4,710 | [2] | [2] | |
Total | $ 45,564 | ||||
[1] On December 3, 2021, Shengda Group transfered all of its equity interest, which was 55.09% as of the transfer date, of SUNCAR Online to Shanghai Feiyou, at price RMB4 per share, totaling RMB282 million. Upon completion of the transfer, Feiyou is liable to Shengda Group RMB282 million for the transfer of SUNCAR Online, which is eliminated in the consolidated financial statements as an intercompany balance as of December 31, 2021. As a result of the disposal of Shengda Group, Shengda Group became the related party of the Group, and the balance due to Shengda Group was not eliminated on the consolidated level but presented as amount due to a related party. On March 1, 2022, the Group entered into a share purchase agreement (the “SPA”) with an affiliate of Mr. Ye, the Group’s Chairman of the Board of Directors to transfer the total equity of Shengda Group with the consideration of RMB 1. Pursuant to the SPA, the Group agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In April 2023, the Group negotiated with Shengda Group and consented to have an extension of payment to extend the repayment date to December 31, 2025, with annual interest rate of 1% from June 1, 2023 to December 31, 2025 (See Note 21). Other payables to Shengda Group were for the ordinary course of operation, which were interest free, unsecure and could be settled on demand. |
Concentration Risk (Details) _4
Concentration Risk (Details) - Schedule of Group’s Total Revenue | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Customer A [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Total revenue percentage | [1] | [1] | 26% | |||
Customer B [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Total revenue percentage | 11% | 15% | [1] | |||
Customer C [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Total revenue percentage | 15% | [1] | [1] | |||
[1]represent percentage less than 10% |
Concentration Risk (Details) _5
Concentration Risk (Details) - Schedule of Group’s Total Accounts Receivable | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Customer B [Member] | ||||
Percentage of the Group’s accounts receivable | ||||
Accounts receivable percentage | 30% | 23% | ||
Customer C [Member] | ||||
Percentage of the Group’s accounts receivable | ||||
Accounts receivable percentage | 33% | [1] | 13% | |
Customer D [Member] | ||||
Percentage of the Group’s accounts receivable | ||||
Accounts receivable percentage | 15% | 10% | ||
Customer E [Member] | ||||
Percentage of the Group’s accounts receivable | ||||
Accounts receivable percentage | 12% | [1] | ||
Customer F [Member] | ||||
Percentage of the Group’s accounts receivable | ||||
Accounts receivable percentage | 10% | [1] | ||
[1]represent percentage less than 10% |
Concentration Risk (Details) _6
Concentration Risk (Details) - Schedule of Group’s Total Purchase | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Supplier A [Member] | |||||||||
Percentage of the Group’s total purchase | |||||||||
Total purchase percentage | 17% | 12% | [1] | [1] | 10% | ||||
Supplier B [Member] | |||||||||
Percentage of the Group’s total purchase | |||||||||
Total purchase percentage | 13% | 23% | 24% | 12% | [1] | ||||
Supplier C [Member] | |||||||||
Percentage of the Group’s total purchase | |||||||||
Total purchase percentage | [2] | 18% | 19% | 11% | [1] | ||||
Supplier D [Member] | |||||||||
Percentage of the Group’s total purchase | |||||||||
Total purchase percentage | 16% | 10% | [1] | ||||||
[1]represent percentage less than 10%[2]represent percentage less than 10% |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of Non-Cancellable Operating Lease - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies (Details) - Schedule of Non-Cancellable Operating Lease [Line Items] | ||
Lease commitment | $ 1,517 | $ 348 |
Within 1 year [Member] | ||
Commitments and Contingencies (Details) - Schedule of Non-Cancellable Operating Lease [Line Items] | ||
Lease commitment | $ 694 | $ 348 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - Schedule of Condensed Parent Company Balance Sheets - Parent [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Investment in subsidiaries | ||
Total assets | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Deficit in investment in subsidiaries | 5,284 | 21,436 |
Total liabilities | 5,284 | 21,436 |
Shareholders’ deficit | ||
Ordinary shares (par value of US0.00005 per share; 225,000,000 shares authorized as of December 31, 2021 and 2022; 225,000,000 shares issued and outstanding as of December 31, 2021 and 2022, respectively) | 11 | 11 |
Convertible Preferred shares (par value US0.00005; 45,614,646 Series A preferred shares, 27,053,437 limited Series A preferred shares and 121,000,531 Series B preferred shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively) | 10 | 10 |
Additional paid in capital | 95,751 | 75,091 |
Accumulated deficit | (101,056) | (96,548) |
Total shareholders’ deficit | (5,284) | (21,436) |
TOTAL LIABILITIES AND DEFICIT |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of Condensed Parent Company Balance Sheets (Parentheticals) - Parent [Member] - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.00005 | $ 0.00005 |
Ordinary shares shares authorized | 225,000,000 | 225,000,000 |
Ordinary shares shares issued | 225,000,000 | 225,000,000 |
Ordinary shares shares outstanding | 225,000,000 | 225,000,000 |
Convertible Preferred shares par value (in Dollars per share) | $ 0.00005 | $ 0.00005 |
Series A Preferred Stock [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Convertible Preferred shares, authorized | 45,614,646 | 45,614,646 |
Convertible Preferred shares, issued | 45,614,646 | 45,614,646 |
Convertible Preferred shares, outstanding | 45,614,646 | 45,614,646 |
Limited Series A Preferred Shares [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Convertible Preferred shares, authorized | 27,053,437 | 27,053,437 |
Convertible Preferred shares, issued | 27,053,437 | 27,053,437 |
Convertible Preferred shares, outstanding | 27,053,437 | 27,053,437 |
Series B Preferred Stock [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Convertible Preferred shares, authorized | 121,000,531 | 121,000,531 |
Convertible Preferred shares, issued | 121,000,531 | 121,000,531 |
Convertible Preferred shares, outstanding | 121,000,531 | 121,000,531 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of Condensed Parent Company Statements of Operations - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating loss: | |||
Share of loss of subsidiaries | $ (6,669) | $ (23,721) | $ (12,993) |
Loss before income tax expense | (6,669) | (23,721) | (12,993) |
Income tax expense | |||
Net loss | $ (6,669) | $ (23,721) | $ (12,993) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of Condensed Parent Company Statements of Cash Flow - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash flows from operating activities | |||
Cash flows from investing activities | |||
Cash flows from financing activities | |||
Net increase in cash and restricted cash | |||
Cash and restricted cash, at beginning of year | |||
Cash and restricted cash, at end of year |