Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 210

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 210
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 of the assets or liabilities.

13

The carrying amounts of cash equivalents, accounts receivable, prepaid and other current assets, accounts payable, and accrued expenses and other current liabilities approximate fair value because of the short maturity of these items.The Company recorded a contingent consideration liability upon the acquisition of Digital Motors in 2022. The contingent consideration is measured at fair value and is based on significant inputs not observable in the market which include the probability of achieving certain future targets. This represents a Level 3 measurement within the fair-value hierarchy. The valuation of contingent consideration uses assumptions the Company believes a market participant would make. The Company assesses these estimates on an ongoing basis as it obtains additional data impacting the assumptions. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within the condensed consolidated statements of comprehensive loss. During the nine months ended September 30, 2025, the Company made its final payout on the contingent consideration liability and as a result, has no remaining Level 3 liabilities.The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024 by level within the fair-value hierarchy. The current and non-current portions of contingent consideration reside within “Accrued expenses and other current liabilities” and “Other liabilities”, respectively, within the condensed consolidated balance sheet. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands): At September 30, 2025At December 31, 2024  Total Fair Total FairLevel 1Level 2Level 3ValueLevel 1Level 2Level 3ValueAssets:Cash equivalents$99,057 $— $— $99,057 $97,917 $— $— $97,917 Total assets$99,057 $— $— $99,057 $97,917 $— $— $97,917  At September 30, 2025At December 31, 2024  Total Fair Total FairLevel 1Level 2Level 3ValueLevel 1Level 2Level 3ValueLiabilities:Contingent consideration, current$— $— $— $— $— $— $3,964 $3,964 Total liabilities$— $