Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 217

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 217
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 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 the three and nine months ended September 30, 2025 and 2024. The Company’s provision for income taxes for the three and nine months ended September 30, 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 nine months ended September 30, 2025, and the Company does not expect to have significant changes to unrecognized tax benefits through the end of the fiscal year. 

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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.The One Big Beautiful Bill Act, which contains a broad range of changes to corporate taxation, was signed into law on July 4, 2025. The most significant provision for the Company is the ability to immediately expense domestic research and experimental expenditures. While this and other provisions of the bill may result in accelerated tax deductions during current and future tax years, the Company’s total income tax expense and effective tax rate are not expected to materially change as a result of the new legislation.

8.    Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024Numerator:Net income (loss)$4,997 $(5,831)$(12,766)$(25,199)Denominator:Weighted average common shares outstanding, basic88,526 90,323 87,903 91,133 Effect of dilutive securities:   Unvested RSUs274