Company: TRUE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001327318-25-000006
Chunk: 157

Company: TrueCar, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 157
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 the June 2023 Restructuring Plan and $0.8 million in charges associated with a realignment of the Company’s leadership structure in third quarter of 2023.

Capitalized software costs decreased $0.4 million for 2023 as compared to 2022 primarily due to a decrease in third-party software costs of $0.5 million as we reduced our use of consultants, offset by an increase in internally developed software of $0.1 million.

We expect technology and development expenses to continue to be affected by variations in headcount in technology and product development.

General and Administrative Expenses

 Years Ended December 31,% Change 2024202320222024 vs. 20232023 vs. 2022 (dollars in thousands)  General and administrative expenses$43,127 $40,321 $44,087 7.0 %(8.5)%General and administrative expenses as a percentage of revenues24.6 %25.4 %27.3 %  

Year ended December 31, 2024 compared to year ended December 31, 2023. General and administrative expenses increased by $2.8 million, or 7.0%, for 2024 as compared to 2023. The increase primarily reflects a $6.3 million net impairment charge on right-of-use assets associated with our office leases and a $1.1 million increase in general outsourced consulting and professional service fees. This increase is partially offset by a $2.2 million decrease in charges associated with the Restructuring Plan and realignment of the Company’s leadership structure, a $0.8 million decrease in recurring employee-related expenses due to decreased headcount, a $0.6 million decrease in the fair value adjustment of the contingent consideration liability related to the Digital Motors acquisition, a $0.3 million decrease in sales and other taxes and a $0.3 million decrease in software costs.

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Year ended December 31, 2023 compared to year ended December 31, 2022. General and administrative expenses decreased $3.8 million, or 8.5%, for 2023 as compared to 2022. The decrease primarily reflects a $4.3 million decrease in recurring employee-related expenses, a $2.3 million decrease in professional service fees, including $1.0 million related to the Digital Motors transaction in the second quarter of 2022, a $1.