Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 181

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 181
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11,397)— Other reconciling items (4)836 230 2,917 7,385 Net income (loss)$4,997 $(5,831)$(12,766)$(25,199)(1) Other segment expenses includes costs associated with acquiring wholesale vehicles, facilities costs and other operating costs.(2) Restructuring charges represent charges associated with the departure of our former Chief Revenue Officer in the third quarter of 2025, the reorganization of the dealer sales and service organization in June 2025, and the realignment of the Company’s leadership structure, which began in the third quarter of 2023 and concluded in the second quarter of 2024.(3) Other income solely represents the gain on legal settlement resulting from the CDK Settlement Agreement as described in Note 5.(4) Other reconciling items solely includes changes in fair value of contingent consideration liability, interest accretion for terminated lease, lease exit costs, transaction costs incurred in connection with negotiating the Merger, and income taxes, which are all disclosed elsewhere in the consolidated financial statements and accompanying footnotes.Assets provided to the CODM are consistent with those reported on the consolidated balance sheet. All of the Company’s principal operations, decision-making functions and long-lived assets are maintained in the United States and all losses are attributable to the United States.

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11.    Subsequent Events

Merger AgreementOn October 14, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), with Fair Holdings, Inc. (“Parent”), and Rapid Merger Subsidiary, Inc., a wholly-owned subsidiary of Parent (“Merger Subsidiary”). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Subsidiary will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Parent. At the effective time of the Merger (the “Effective Time”), each issued and outstanding share of the Company’s common stock (other than any shares held by stockholders of the Company that may enter into rollover and contribution agreements with Parent prior to the Effective Time (“Rollover Shares”), shares held by stockholders of the Company who are entitled to demand and who have properly demanded appraisal of such shares in accordance with Section 262 of the Delaware General Corporation Law (“Dissenting Shares”), and shares of the Company’s common stock held by the Company, Parent