Company: TRUE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001327318-25-000036
Chunk: 188

Company: TrueCar, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 188
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 assets and lease liabilities, assets and liabilities assumed in business combinations, and performance-based stock units.SegmentsThe Company has one operating segment. From January 1, 2025 through June 30, 2025, the Company’s chief operating decision maker (the “CODM”) was the President and Chief Executive Officer (“CEO”).Cash and Cash EquivalentsThe Company considers all highly liquid investments purchased with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. At June 30, 2025 and December 31, 2024, cash and cash equivalents were comprised primarily of cash held in money market funds and checking accounts. Historically, cash and cash equivalents included restricted cash used to collateralize a letter of credit to secure certain of the Company’s obligations under one of its office leases.Allowance for Doubtful AccountsThe Company determines its allowance for doubtful accounts based on historical write-off experience and specific circumstances that make it likely that recovery will not occur. The Company reviews the allowance for doubtful accounts periodically and assesses the aging of account balances, with an emphasis on those that are past due over ninety days. Account balances are charged off against the allowance when the Company determines that it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers.The Company considers the need to adjust historical information to reflect the extent to which the Company expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The primary current and future economic indicators that the Company uses to develop its current estimate of expected credit losses include the current and forecast U.S. Gross Domestic Product.The Company calculates the expected credit losses on a pool basis for those trade receivables that have similar risk characteristics. For those trade receivables that do not share similar risk characteristics, the allowance for doubtful accounts is calculated on an individual basis. Risk characteristics relevant to the Company’s accounts receivable include revenue billing model and aging status.The following table summarizes the changes in the allowance for doubtful accounts and sales allowances (in thousands): Three Months Ended June 30,Six Months Ended June 30,2025202420252024Allowances, at beginning of period$669 $965 $783 $1,118 Charged as a reduction of revenue741 548 1,375 977 Charged to bad debt expense in general and administrative expenses206 151 237 369 Write