Company: CDLX
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666071-25-000069
Chunk: 109

Company: Cardlytics, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 1
Chunk 109
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 values, and an impairment test was not required as of March 31, 2025. However, the Cardlytics platform in the U.S. is susceptible to future impairment risk, and future changes in assumptions or deterioration in market conditions, such as adverse developments from the imposition of tariffs in the United States and abroad could result in an impairment.

11

Acquired IntangiblesWe evaluate the recoverability of our finite-lived intangible assets and other long-lived assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. Prior to the quantitative goodwill impairment test, we evaluated the recoverability of these long-lived assets for our asset groups. The evaluation is based on the cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the extent the carrying amount of the asset group exceeded its estimated fair value. 2025 Acquired IntangiblesAcquired intangible assets subject to amortization as of March 31, 2025 were as follows:Gross Carrying AmountAccumulated AmortizationNetWeighted Average Remaining Useful Life(in thousands)(in years)Developed technology$49,873 $(42,347)$7,526 2.3Merchant relationships21,930 (19,540)2,390 1.2Total other intangible assets$71,803 $(61,887)$9,916 2024 Acquired IntangiblesAcquired intangible assets subject to amortization as of December 31, 2024 were as follows:Gross Carrying AmountAccumulated AmortizationImpairment of Intangible AssetsNetWeighted Average Remaining Useful Life(in thousands)(in years)Developed technology63,621 (41,442)(13,748)8,431 2.5Merchant relationships21,930 (18,989)— 2,941 1.4Total other intangible assets$85,551 $(60,432)$(13,748)$11,371 Amortization expense of acquired intangibles during the three months ended March 31, 2025 and 2024 was $1.5 million and $2.8 million, respectively.As of March 31, 2025, we expect amortization expense in future periods to be as follows (in thousands):