Company: CDLX
Filing Date: 2025-04-03
Form Type: ARS
Source: 0001666071-25-000048
Chunk: 126

Company: Cardlytics, Inc.
Filing Date: 2025-04-03
Form: ARS
Chunk 126
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 are included in acquisition, integration and divestiture costs (benefit) on our consolidated statements of operations. Divestiture and Acquisition of Entertainment On December 7, 2023, we sold and transferred substantially all of the assets of 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" within the statement of operations. During the year ended December 31, 2024, we received $0.6 million of cash from the escrow, and we classified the receipt of cash within investing activities within the consolidated statement of cash flows. We also recorded a $0.1 million divestiture expense associated with the net working capital adjustment. 82

5. GOODWILL AND ACQUIRED INTANGIBLES Goodwill Goodwill is tested annually for impairment, unless certain triggering events require an interim impairment analysis, including macroeconomic conditions, industry and market considerations, costs factors, overall financial performance, and other relevant entity-specific events and changes. These considerations are evaluated holistically to assess whether it is more likely than not that a reporting unit's carrying value exceeds its fair value. Our reporting units consist of the Cardlytics platform in the U.S., the Cardlytics platform in the U.K. and the Bridg platform. There is no goodwill recorded within the Cardlytics platform in the U.K. The changes in the carrying amount of goodwill for the years ended December 31, 2024, 2023 and 2022 are as follows (in thousands): Cardlytics Platform Bridg Platform Consolidated Balance as of December 31, 2023 $ 159,429 $ 117,773 $ 277,202 Goodwill impairment — (117,773) (117,773) Balance as of December 31, 2024 $ 159,429 $ — $ 159,429 Cardlytics Platform Bridg Platform Consolidated Balance as of December 31, 2022 $ 164,430 $ 188,291 $ 352,721 Goodwill impairment — (70,518) (70,518) Divestiture of Entertainment (5,001) — (5,001) Balance as of December 31, 2023 $ 159,429 $ 117,773 $ 277,202 Cardlytics