Company: IBTA
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008240
Chunk: 25

Company: Ibotta, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 25
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 properties. A portion of these undistributed earnings is never expected to be cashed out by consumers due to inactivity and will therefore be recognized as breakage by the Company. Consumers’ accounts that have no activity for six months are considered inactive and charged a $3.99 per month maintenance fee until the balance is reduced to zero or new activity ensues. Balances 

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Table of ContentsIbotta, Inc.Notes to Financial Statements

associated with accounts that are deactivated for violation of the Company’s terms of use are also recognized as breakage. The Company estimates breakage at the time of the redemption and reduces the user redemption liability accordingly. Breakage estimates are made based on historical breakage patterns, and the preparation of estimates includes judgments of the applicability of historical patterns to current and future periods. Breakage is recorded in revenue related to funded awards, as an offset to sales and marketing expense related to self-funded awards, and as an offset to cost of revenue related to gift card purchases and sponsored user awards earned from watching an advertising video.The Company’s breakage is recorded as follows (in thousands):Year ended December 31,202420232022Revenue$12,998 $26,025 $11,250 Cost of revenue191 558 310 Sales and marketing1,663 4,965 4,903 Total breakage$14,852 $31,548 $16,463 The user redemption liability was $74.0 million and $84.5 million as of December 31, 2024 and 2023, respectively. 

5. Accrued Expenses 

Accrued expenses consist of the following (in thousands):December 31,20242023Accrued employee expenses$14,365 $18,156 Other accrued expenses3,600 6,426 Total accrued expenses$17,965 $24,582 

6. Long-Term Debt

Long-term debt consists of the following (in thousands):December 31,20242023Convertible notes$– $75,099 Revolving line of credit– – Total debt– 75,099 Less: unamortized debt discount– (10,440)Less: unamortized debt issuance costs– (211)Long-term debt, net$– $64,448 The Company recorded interest expense of $3.6 million, $8.8 million, and $6.2 million for