Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 7

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 4
Chunk 7
---
 in substantial costs, including costs associated with indemnification of directors and officers, and divert management time and resources. An adverse judgment in any such litigation relating to the Merger could result in monetary damages, which could have a negative impact on our financial condition. 

Our directors and executive officers have interests in the Merger that may be different from, or in addition to, the interests of our other stockholders.

Our directors and executive officers have financial interests in the Merger that may be different from, or in addition to, the interests of our other stockholders, including:

•the acceleration of their equity awards provided for under the Merger Agreement;

•severance and other benefits in the case of termination under the terms of their employment agreements; and

•continued indemnification and insurance coverage under the Merger Agreement, our organizational documents and indemnification agreements we have entered into with each of our officers and directors.

If the Merger is completed, our business and stockholders would not receive any benefits from any future upside of the Company’s business. 

The amount of cash per share of our common stock to be paid under the Merger Agreement is fixed and will not be adjusted for changes in our business, assets, liabilities, prospects, outlook, financial condition or operating results or in the event of any change in the market price of, analyst estimates of, or projections relating to, our common stock.

If the Merger is completed, our stockholders will forego the opportunity to realize the potential long-term value of the successful execution of our current strategy as an independent company. It is also possible that Parent could, at a later date, engage in unspecified transactions, including restructuring efforts, special dividends or the sale of some or all of our assets to one or more purchasers, that could conceivably produce a higher aggregate value than that available to stockholders in the Merger.

43

Risks Related to Our Business and Industry

Our business is subject to risks related to the larger automotive ecosystem, including tariffs, inventory and global supply chain challenges, labor and other factors.

Our business is sensitive to adverse macroeconomic conditions affecting automobile dealers, manufacturers, their suppliers and the market for automobiles in the United States. Current U.S. government trade policy includes the imposition of tariffs on certain foreign goods, including passenger vehicles, light trucks, certain automobile parts and certain raw materials used in manufacturing automobiles, such as aluminum, steel and copper. Although the full impact of these tariffs remains unclear, tariffs may increase the cost of importing or manufacturing automobiles or automobiles parts and