Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 105

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 105
---
S 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. 2025 Equity Incentive Plan (the "2025 Plan").  The aggregate number of shares of our common stock that may be issued pursuant to stock awards under the 2025 Plan will not exceed 15,722,908 shares, which is the sum of (i) 10,000,000 new shares, (ii) the number of shares reserved, and remaining available for issuance, under our 2018 Equity Incentive Plan, and (iii) the number of shares subject to stock options or other stock awards granted under our 2008 Stock Plan or 2018 Equity Incentive Plan that would have otherwise returned to our 2018 Equity Incentive Plan (such as