Company: BL
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050628
Chunk: 166

Company: BLACKLINE, INC.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 166
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 As the Company continues to control a majority stake in BlackLine K.K., the entity has been consolidated.All of the common stock held by the Investors is callable by the Company or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value will be determined based upon a prescribed formula derived from the discrete revenues of BlackLine K.K. and the Company, and may be settled, at the Company’s discretion, with Company stock or cash. As a result of the put right available to the Investors in the future, the redeemable non-controlling interest in BlackLine K.K. is classified outside of permanent equity in the Company’s consolidated balance sheets, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings, or its estimated redemption value. The resulting changes in the estimated redemption amount are recorded within retained earnings or, in the absence of retained earnings, additional paid-in capital.Under the original terms of the agreement with Investors, all of the common stock was callable or puttable with an exercise date of January 1, 2026 (the “Exercise Date”). The Company and the Investors signed an agreement dated October 11, 2025, moving the Exercise Date to January 1, 2029.

13

Activity in the redeemable non-controlling interest was as follows (in thousands):Quarter Ended September 30,Nine Months Ended September 30,2025202420252024Balance at beginning of period$35,000 $32,068 $36,483 $30,063 Net income attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest)1,649 320 2,706 1,282 Foreign currency translation(72)231 127 26 Adjustment to redeemable non-controlling interest1,677 (2,989)(1,062)(1,741)Balance at end of period$38,254 $29,630 $38,254 $29,630 

Note 5 – Intangible Assets and Goodwill

The carrying value of intangible assets was as follows (in thousands):September 30, 2025Gross Carrying AmountAccumulated AmortizationNet Carrying AmountTrade name$15,977 $(15,977)$— Developed technology137,718 (89,992)47,726 Customer relationships26,779 (26,