Company: CDLX
Filing Date: 2025-04-03
Form Type: ARS
Source: 0001666071-25-000048
Chunk: 151

Company: Cardlytics, Inc.
Filing Date: 2025-04-03
Form: ARS
Chunk 151
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 related to net deferred tax liabilities arising from the acquisitions of Bridg resulting in an income tax benefit of $1.4 million reflected on our consolidated statements of operations. Deferred tax liabilities for Bridg primarily related to acquired intangible assets. The following table presents changes in our valuation allowance (in thousands): Year Ended December 31, 2024 2023 2022 Beginning balance $ (189,660) $ (179,448) $ (123,867) Allowance for domestic and foreign net operating loss carry-forwards (299) (2,442) (13,360) Rate change on domestic net operating loss carry-forwards (3,241) (424) 235 Convertible debt additional paid-in capital tax adjustment - valuation allowance impact — — (9,714) Other changes (10,177) (7,346) (32,742) Ending balance $ (203,377) $ (189,660) $ (179,448) As of December 31, 2024 and 2023, we have $631.6 million and $628.7 million, respectively, of gross U.S. federal net operating loss carry-forwards that will begin to expire in the 2028 tax year. Additionally, we have $269.1 million and $267.3 million of gross state net operating loss carry-forwards as of December 31, 2024 and 2023, respectively that will expire between the 2024 and 2044 tax years for states that do not have indefinite carry-forward periods for net operating losses generated in recent years. Ownership changes, as defined by IRC Section 382, may limit the amount of net operating losses that a company may utilize to offset future taxable income and taxes payable. Pursuant to IRC Section 382, an ownership change occurs when the stock ownership of 5% stockholders increases by more than 50% over a testing period of three years. We have experienced ownership changes in the past, with the last identified ownership change occurring on April 2, 2020. We have analyzed whether we have experienced an additional ownership change through December 31, 2023 and have not identified an ownership change. It is possible that we have experienced an ownership change during 2024 or that we may experience an ownership change in the future. Any such ownership change may limit our ability to utilize net operating losses. Our results during the years ended December 31, 2023 and 2022 reflect state tax credits related to hiring and research