Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 293

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 293
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•additional operating losses and expenses of other businesses;

•integration of acquisitions, including coordination of technology, research and development and sales and marketing functions; 

•transition of the other business’s users to our website and mobile applications; 

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•retention of employees from an acquired business, or separation of employees from a divested business; 

•cultural and other challenges associated with integrating employees from an acquired business into our organization; 

•integration of an acquired business’s accounting, management information, human resources, legal and other administrative systems, or extrication of such systems from a divested business; 

•the need to implement or improve controls, procedures and policies at a business that prior to the transaction may have lacked effective controls, procedures and policies; 

•potential write-offs of intangibles or other assets acquired in acquisitions or similar transactions, or write-downs of investments, that may have an adverse effect on our operating results in a given period;

•the risks associated with the businesses, products or technologies in question, which may differ from or be more significant than the risks our business faces;

•the risks associated with obtaining necessary regulatory approval for a transaction;

•liability for the activities, products or services of the business, including patent and trademark infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities;

•risk related to the payment of contingent consideration; and 

•litigation or other claims in connection with the business, product or technology in question, including claims from terminated employees, consumers, former stockholders or other third parties.

Our failure to address these risks or other problems encountered in connection with our past or future transactions could cause us to fail to realize the anticipated benefits of those transactions, cause us to incur unanticipated liabilities and harm our business generally. Future transactions could also result in dilutive issuances of our equity securities; the incurrence of debt, contingent liabilities or amortization expenses; or the write-off of goodwill, any of which could harm our financial condition, and the anticipated benefits of any transaction may not materialize.

For example, the consideration payable to us in connection with the divestiture of ALG in 2020, included, among other payments, a contingent consideration payment of up to $15 million payable to us based on its achievement of certain revenue metrics, but we were ultimately awarded less than 1% of this contingent consideration. If we enter into future transactions in which any amount of consideration is payable contingent upon factors beyond our