Company: TRUE
Filing Date: 2025-02-21
Form Type: 10-K/A
Source: 0001327318-25-000010
Chunk: 36

Company: TrueCar, Inc.
Filing Date: 2025-02-21
Form: 10-K/A
Chunk 36
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 “Acquisition Date”), the Company acquired all of the outstanding shares of Digital Motors for $ 15.5million in cash and up to $ 8.0million of contingent cash consideration based on the occurrence of certain events including the achievement of product development milestones and future revenues. The acquisition of Digital Motors is intended to accelerate TrueCar's plan to deliver a robust digital car buying and selling experience with its TrueCar+ marketplace. At the Acquisition Date, the Company assessed the probabilities of Digital Motors meeting product development milestones and future revenue targets and recorded a contingent consideration liability of $ 6.3million. At December 31, 2024 and 2023 the contingent consideration liability was remeasured to $ 4.0million and $ 5.6million, with zeroand $ 3.6million recorded in “Other liabilities” and $ 4.0million and $ 2.0million recorded in “A ccrued expenses and other current liabilities” within the consolidated balance sheets, respectively .

The Company recorded goodwill of $ 8.6million on the Acquisition Date , whic h represented the excess of the purchase price over the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed. The goodwill is attributable to the workforce of the acquired business and the significant synergies expected to arise from the Company’s acquisition of Digital Motors. Goodwill attributed to the acquisition is not deductible for income tax purposes. The purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair value as of the Acquisition Date. As a result of the Company’s impairment assessment in September 2022, goodwill was subsequently written down to zero (refer to Note 6).

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#### TrueCar, Inc.

### Notes to Consolidated Financial Statements (Continued)
The following table summarizes the allocation of the purchase consideration and the estimated fair value of the assets acquired and the liabilities assumed for the acquisition of Digital Motors as of the Acquisition Date (in thousands).

| Assets acquired           |     | Digital Motors |        |
|:--------------------------|:----|:---------------|-------:|
| Cash                      |     | $              |  5,201 |
| Acquired technology       |     |                | 12,500 |
| Other assets acquired     |     |                |    548 |
| Goodwill                  |     |                |  8,570 |
| Total assets acquired     |     | $              | 26,819 |
| Li