Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On January 19, 2017, the Company filed a shelf registration statement on Form S-3 under which the Company may, from time to time, sell securities up to a total dollar amount of $100 million, and selling stockholders may sell, from time to time, up to 20 million of shares of common stock (“2017 Shelf Registration”). The 2017 Shelf Registration was declared effective by the SEC on February 6, 2017. 

On April 26, 2017, the Company entered into an underwriting agreement to sell up to 1,150,000 shares of our common stock at $16.50 per share in a public offering (including shares subject to the underwriters’ over-allotment option). The Company sold 1,150,000 shares in the offering with aggregate net proceeds to the Company of $17.5 million, net of underwriter’s commission and other expenses of approximately $1.5 million. Selling stockholders sold an aggregate of 9,200,000 shares of common stock in the offering. The Company did not receive any proceeds from the shares sold by the selling stockholders. The offering closed on May 2, 2017.

On April 24, 2017, the Company announced the signing of a memorandum of understanding for a six-month automotive trade-in pilot program with a large vehicle wholesaler. The pilot program is expected to enable consumers to use the TrueCar branded website or mobile application to view real-time vehicle valuation information based on specific vehicle characteristics and receive offers for the vehicle from participating dealers in the TrueCar network. The Company anticipates incurring additional cash costs of approximately $1.0 million per quarter during the pilot program.