Company: TRUE
Filing Date: 2025-02-21
Form Type: 10-K/A
Source: 0001327318-25-000010
Chunk: 55

Company: TrueCar, Inc.
Filing Date: 2025-02-21
Form: 10-K/A
Chunk 55
---
 negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2024. Such objective evidence limits the ability to consider other subjective evidence such as its projections for future growth. On the basis of this evaluation, at December 31, 2024, a valuation allowance of $ 126.9million has been recorded since it is more likely than not that the deferred tax assets will not be realized.

The change in the valuation allowance for the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands):

|                                           |     | Year Ended December 31, |    2024 |     |   |    2023 |     |   |    2022 |
|:------------------------------------------|:----|:------------------------|--------:|:----|:--|--------:|:----|:--|--------:|
| Valuation allowance, at beginning of year |     | $                       | 120,197 |     | $ | 109,876 |     | $ |  94,117 |
| Increase in valuation allowance           |     |                         |   6,676 |     |   |  10,321 |     |   |  15,759 |
| Valuation allowance, at end of year       |     | $                       | 126,873 |     | $ | 120,197 |     | $ | 109,876 |

The $ 6.7million increase in valuation allowance is primarily related to the increase in deferred tax assets for net operating loss carryforwards and capitalized research and development costs and the decrease in deferred tax liabilities for operating lease assets.

<div align='center'>F-33</div>

#### TrueCar, Inc.

### Notes to Consolidated Financial Statements (Continued)
The following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands):

|                                                   |     | Year Ended December 31, |  2024 |     |   |  2023 |     |   |   2022 |
|:--------------------------------------------------|:----|:------------------------|------:|:----|:--|------:|:----|:--|-------:|
| Unrecognized tax benefit, beginning of year       |     | $                       | 4,570 |     | $ | 4,570 |     | $ |  5,237 |
| Decrease based on tax positions in prior period