Company: TRUE
Filing Date: 2025-02-21
Form Type: 10-K/A
Source: 0001327318-25-000010
Chunk: 53

Company: TrueCar, Inc.
Filing Date: 2025-02-21
Form: 10-K/A
Chunk 53
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 any dividends in the foreseeable future. Forfeitures on share-based awards are recognized as they occur. No stock option awards were granted during the years ended December 31, 2024, 2023, and 2022.

The fair value of each PSU award was estimated at the date of grant using a Monte Carlo simulation valuation model. This valuation model requires the Company to make assumptions and judgments about the variables used in the calculation. In calculating the fair value of the award, the risk-free interest rate is based on the yield of a Treasury Note with a term commensurate with the term of the PSU. The expected term is based on the remainder of the performance cycle as of the date of grant. The expected volatility is based on the three-year historical stock price for the Company and the Index. The correlation is calculated based on the stock price of the Company and the Index for the three-year volatility period. The following weighted-average assumptions were used in estimating the fair value of the PSUs at the date of grant:

|                                                              |     | Year Ended December 31, | 2024 |      |     |     | 2023 |      |     |     | 2022 |      |
|:-------------------------------------------------------------|:----|:------------------------|-----:|-----:|:----|:----|-----:|-----:|:----|:----|-----:|-----:|
| Expected volatility of common stock                          |     |                         |   62 |    % |     |     |   67 |    % |     |     |   64 |    % |
| Expected volatility of Index                                 |     |                         |   24 |    % |     |     |   31 |    % |     |     |   30 |    % |
| Average correlation coefficient of the Company and the Index |     |                         |      | 0.42 |     |     |      | 0.37 |     |     |      | 0.32 |
| Risk-free interest rate                                      |     |                         | 4.27 |    % |     |     | 4.59 |    % |     |     | 2.55 |    % |
| Expected term (years)                                        |     |                         |      | 3.03 |     |     |      | 2.96 |     |     |      | 2.95 |

The Company recorded stock-based compensation cost relating to stock options, RSUs, and PS