Company: TRUE
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001327318-25-000016
Chunk: 172

Company: TrueCar, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 172
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 compensation expense for performance stock units, respectively.Stock-based Compensation CostThe Company recorded stock-based compensation cost relating to stock options, restricted stock units, and performance stock units in the following categories on the accompanying condensed consolidated statements of comprehensive loss (in thousands): Three Months Ended March 31, 20252024Cost of revenue$87 $52 Sales and marketing547 399 Technology and development554 496 General and administrative2,158 1,685 Total stock-based compensation expense3,346 2,632 Amount capitalized to internal-use software204 190 Total stock-based compensation cost$3,550 $2,822 

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7.    Income Taxes

In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date loss, adjusted for discrete items, if any, that are taken into account in the relevant period. The Company’s annual estimated effective tax rate differs from the statutory rate primarily as a result of state taxes and changes in the Company’s valuation allowance.The Company recorded income tax expense of less than $0.1 million for each of the three months ended March 31, 2025 and 2024. The Company’s provision for income taxes for the three months ended March 31, 2025 and 2024 reflects state income tax expense. The Company continues to maintain a full valuation allowance as it is more likely than not that the Company’s net deferred tax assets will not be realized.There were no material changes to the Company’s unrecognized tax benefits in the three months ended March 31, 2025, and the Company does not expect to have significant changes to unrecognized tax benefits through the end of the fiscal year. The Company is subject to United States federal and state taxation. Due to the presence of net operating loss carryforwards, income tax years from 2014 through the present remain open for examination by the Internal Revenue Service (the “IRS”) and income tax years from 2008 through the present remain open for examination by various state taxing authorities. The Company is not currently under IRS or state tax examination.

8.    Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended March 31, 20252024Net loss$(10,136)$(5,848)Weighted average common shares outstanding, basic and diluted87,305 91,234 Net loss