Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 182

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 182
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 or any of their respective subsidiaries) will be cancelled and converted into the right to receive $2.55 in cash without interest and subject to any applicable withholding taxes.The Company has agreed to various customary covenants and agreements, including, among others, agreements to conduct its business in the ordinary course during the period between the execution of the Merger Agreement and the Effective Time. The Merger Agreement contains certain termination rights, including that the Merger Agreement may be terminated (i) by either party if the Merger is not completed on or before February 28, 2026 or (ii) by mutual written consent, among others. Upon termination of the Merger Agreement under certain specified circumstances, Parent may be required to pay the Company a termination fee equal to $15.0 million. Upon termination of the Merger Agreement under other specified circumstances, the Company may be required to pay Parent a termination fee equal to either $4.0 million or $8.0 million, or may be required to reimburse certain costs and fees incurred by Parent and its affiliates, up to a maximum amount of $3.0 million.Although the Merger Agreement provides that the Company may specifically enforce Parent and Merger Subsidiary’s obligations under the Merger Agreement, the Company can only pursue specific performance to cause Parent and Merger Subsidiary to consummate the Merger if certain conditions are satisfied, including, among other things, that Parent receive additional debt or equity commitment letters from investors, other than Alpha Auto 2, LLC (the “Investor”) and its affiliates in an aggregate amount of $60.0 million. The consummation of the Merger remains subject to customary closing conditions, including receipt of stockholder approval. If the closing occurs, the Company Stock will be delisted from Nasdaq and be deregistered under the Exchange Act.The Company has evaluated this subsequent event in accordance with FASB ASC 855 — Subsequent Events, and has concluded that at the time of filing, an estimate of the Merger’s impact on the financial statements cannot be made.

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Item 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes thereto included in Item 1 “Financial Statements” in this Quarterly Report on Form 10-Q. In addition to historical financial information, the following discussion and analysis