Company: CDLX
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001666071-25-000034
Chunk: 93

Company: Cardlytics, Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 93
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 Refer to Note 4—Business Combinations to our consolidated financial statements for additional information regarding these acquisitions.

Change in contingent consideration

 Year Ended December 31,Changein thousands20242023$      %      Change in contingent consideration$210 $1,246 $(1,036)(83)%% of Revenue— %— %

During 2024, the change in contingent consideration was a $0.2 million expense as a result of the $6.1 million loss related to the change of contingent consideration to the former Bridg shareholders, almost entirely offset by the $5.9 million gain we recognized due to the Settlement Agreement. During 2023 we realized a $1.2 million expense primarily due to the change in contingent consideration to the former Bridg shareholders. Refer to Note 12—Fair Value Measurements to our consolidated financial statements for additional information regarding the contingent consideration. 

Impairment of goodwill and intangible assets

 Year Ended December 31,Changein thousands20242023$      %      Impairment of goodwill and intangible assets$131,595 $70,518 $61,077 87 %% of Revenue47 %23 %

During 2024, we recognized $131.6 million of impairment of goodwill and intangible assets related to the Bridg platform. During 2023, we recognized $70.5 million of impairment of goodwill and intangible assets related to the Bridg platform. The impairment of goodwill and intangible assets resulted from a continued slowdown in the economy, decreased consumer spend, and a sustained decline in our stock price. Refer to Note 5—Goodwill and Acquired Intangibles to our consolidated financial statements for additional information regarding the goodwill impairment.

Loss on divestiture

 Year Ended December 31,Changein thousands20242023$      %      Loss on divestiture$— $6,550 $(6,550)n/a% of Revenue— %2 %

On December 7, 2023 we sold and transferred substantially all of the assets of HSP EPI Acquisition, LLC ("Entertainment") for $6.0 million in cash, subject to a combined $1.1 million held in escrow for indemnities and sales and use taxes, as well as customary post-closing adjustment. The resulting loss on sale of $6.6 million is recorded within "Loss on divestiture