Company: TRUE
Filing Date: 2025-02-21
Form Type: 10-K/A
Source: 0001327318-25-000010
Chunk: 38

Company: TrueCar, Inc.
Filing Date: 2025-02-21
Form: 10-K/A
Chunk 38
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|:----------------------------|:---------------------------------------|:--|-----------------------------:|:----|:--|-----------------------------:|:----|:--|-----------------------------:|
| Cost of revenue             |                                        | $ |                           32 |     | $ |                           23 |     | $ |                           12 |
| Sales and marketing         |                                        |   |                          231 |     |   |                          348 |     |   |                          583 |
| Technology and development  |                                        |   |                          290 |     |   |                          785 |     |   |                        1,104 |
| General and administrative  |                                        |   |                        1,990 |     |   |                        3,208 |     |   |                        3,837 |
| Total operating lease costs |                                        | $ |                        2,543 |     | $ |                        4,364 |     | $ |                        5,536 |

The Company did not include short term or variable lease costs in the table above as these amounts were immaterial. The Company made cash payments of $ 4.6million, $ 7.8million and $ 6.7million for the years ended December 31, 2024, 2023, and 2022, respectively, which were included in “Cash flows from operating activities” within the consolidated statements of cash flows. The Company’s operating leases have a weighted average remaining lease term of 3.9years and weighted average discount rate of 6.1%.

The existing operating leases have remaining lease terms ranging from 1.0to 5.1years. Certain lease agreements contain options to renew, with renewal terms that generally extend the lease terms by 3to 5years for each option.

For its subleases, the Company recorded contra rent expense of $ 2.2million, $ 3.5million and $ 3.4million for the years ended December 31, 2024, 2023, and 2022, respectively.

The Company recognized ROU asset group impairment charges of $ 6.9million and $ 2.4million for the years ended December 31, 2024 and 2023, respectively, reducing the carrying value of the related lease assets to its estimated fair value. Fair value was estimated using an income approach based on management’s forecast of future cash flows expected to be derived based on current sublease market rent. The impairment charge is included