Company: CDLX
Filing Date: 2025-04-03
Form Type: ARS
Source: 0001666071-25-000048
Chunk: 121

Company: Cardlytics, Inc.
Filing Date: 2025-04-03
Form: ARS
Chunk 121
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 December 31, 2024 2023 Debt issuance costs, gross $ 5,610 $ — Less accumulated amortization (839) — Debt issuance costs, net $ 4,771 $ — Deferred debt issuance costs related to our 2020 Convertible Senior Notes included in debt are as follows (in thousands): December 31, 2024 2023 Debt issuance costs, gross $ 5,572 $ 7,275 Less accumulated amortization (5,365) (4,779) Debt issuance costs, net $ 207 $ 2,496 Future amortization of debt issuance costs is as follows (in thousands): Years Ending December 31, Amortization 2025 $ 1,329 2026 1,122 2027 1,122 2028 1,122 2029 283 Total $ 4,978 79

Advertising We expense advertising costs as incurred. These costs are included in sales and marketing expense on our consolidated statements of operations. Advertising costs include direct marketing costs such as print advertisements, market research, direct mail, public relations and trade show expenses and totaled $2.4 million, $1.9 million and $4.7 million in 2024, 2023 and 2022, respectively. Stock-Based Compensation We measure and recognize compensation expense based on the estimated fair value of the award on the grant date. The fair value is recognized as expense over the requisite service period, which is generally the vesting period of the respective award, on a straight-line basis when the only condition to vesting is continued service. We recognize the fair value of awards that contain performance conditions based upon the probability of the performance conditions being met. Expense for awards with performance conditions are estimated and adjusted on a quarterly basis based upon our assessment of the probability that the performance condition will be met. We recognize the fair value of awards that contain market conditions over the derived service period. Forfeitures are accounted for when they occur. Refer to Note 10—Stock-based Compensation for additional information regarding our specific award plans and estimates and assumptions used to determine fair value. Fair Value of Financial Instruments When required by GAAP, assets and liabilities are reported at fair value on our consolidated financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of