Company: TRUE
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001327318-25-000016
Chunk: 361

Company: TrueCar, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 361
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 divert our attention from our ongoing business, and we may not manage them successfully. We may be required to make substantial investments of resources to support any such transaction, and we cannot assure you that they will be successful. Additionally, strategic investments in and partnerships with other businesses expose us to the risk that we may not be able to control the operations of those businesses, which could decrease the benefits we realize from a particular relationship. We are also exposed to the risk that our partners in strategic investments may encounter financial difficulties that could lead to disruption of their activities, or impairment of assets acquired, which could adversely affect future reported results of operations and stockholders’ equity. 

The risks we face in connection with transactions such as these include: 

•diversion of management time and focus from operating our business; 

•additional operating losses and expenses of other businesses;

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

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

•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