Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 168

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 168
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 do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all normal and recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The results for interim periods presented are not necessarily indicative of the results to be expected for the full year due to the seasonality of our business, which has been historically impacted by higher consumer spending during the fourth quarter. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included on our Annual Report on Form 10-K ("Annual Report") for the fiscal year ended December 31, 2024.CARES ActOn March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law. The CARES Act provides an employee retention credit ("ERC"), which is a refundable tax credit against certain payroll taxes. During the nine months ended September 30, 2025, we evaluated the conditions of the ERC and determined that we were eligible during the first and second quarter of 2021. As a result, we filed amended tax forms with the IRS, which if approved would result in a tax credit of $5.3 million. During the three months ended September 30, 2025, the amended tax form for the second quarter of 2021 was approved by the IRS, which resulted in a benefit of $2.8 million in operating expense and $0.3 million in interest income within the condensed consolidated statement of operation. The benefit of $2.8 million in operating expense is comprised of $0.5 million in delivery costs, $1.1 million in sales and marketing expense, $0.9 million in research and development expense, and $0.3 million in general and administrative expense. As the payment was not received by September 30, 2025, the credit is reflected in accounts receivable and contract assets, net within the condensed consolidated balance sheet.One Big Beautiful Bill ActOn July 4, 2025, the One Big Beautiful Bill Act was enacted into law. The Company is evaluating the provisions of the bill but does not expect the impact to be material.2025 Equity Incentive PlanOn May 20, 2025, at our 2025 Annual Meeting of Stockholders (the "2025 Annual Meeting"), our stockholders approved the Cardlytics, Inc.