Company: TRUE
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001327318-25-000016
Chunk: 170

Company: TrueCar, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 170
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 AmEx Agreement and liquidate the related marketing fund balance of $2.8 million on March 31, 2025. As a result, the Company made a payment of $1.4 million to American Express and was relieved of the remaining $1.4 million liability in accordance with FASB ASC 405 — Liabilities. The Company’s $1.4 million share of the marketing fund was recognized as a reduction to sales and marketing expenses.Employment ContractsThe Company has entered into employment contracts with certain executives of the Company. Employment under these contracts is at-will employment. However, under the provisions of the contracts, the Company would incur severance obligations of up to twelve months of the executive’s annual base salary for certain events, such as involuntary terminations. IndemnificationsIn the ordinary course of business, the Company may provide indemnities of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or intellectual property infringement claims made by third parties. While the Company’s future obligations under certain of these agreements may contain limitations on liability for indemnification, other agreements do not contain such limitations and under such agreements it is not possible to predict the maximum potential amount of future payments due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under such indemnities have not had a material effect on the Company’s business, financial condition, results of operations or cash flows. Additionally, the Company does not believe that any amounts that it may be required to pay under these indemnities in the future will be material to the Company’s business, financial position, results of operations, or cash flows.

6.    Stock-based Awards

Stock OptionsA summary of the Company’s stock option activity for the three months ended March 31, 2025 is as follows: Number ofOptionsWeighted-Average Exercise PriceWeighted-AverageRemainingContractual Life   (in years)Outstanding at December 31, 20241,318,123 $9.61 3.5Granted— —  Exercised— —  Forfeited/expired(27,085)16.76  Outstanding at March 31,