Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 176

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 176
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 the nine months ended September 30, 2025 and 2024 was $4.4 million and $8.4 million, respectively.As of September 30, 2025, we expect amortization expense in future periods to be as follows (in thousands):Amount2025 (remaining three months)$1,455 20264,348 20271,204 2028— Thereafter— Total expected future amortization expense$7,007 Capitalized software development costs, netCapitalized software development costs consist of costs incurred in the development of internal-use software, primarily associated with the development and enhancement of our Ads Manager and Ad Server. We have assessed the triggering events criteria along with related conditions and developments as of September 30, 2025. As a result of the triggering event discussed above, we performed an impairment test as of September 30, 2025, and determined that the carrying value of the internal-use software development costs intangible asset associated with the Cardlytics asset group exceeded its fair value. The Cardlytics asset group is included in the Cardlytics platform reportable segment and primarily consists of the internal-use software development costs, which represents the predominant asset from which the group's cash flows are generated. As a result of the impairment test, we recognized an impairment of $9.7 million to the impairment of goodwill and intangible assets within the condensed consolidated statement of operations during the three months ended September 30, 2025.

14

AmountBalance as of December 31, 2024$33,341 Additions to Capitalized software development costs, net15,852 Amortization on Capitalized software development costs, net(13,879)Impairment charge on Capitalized software development costs, net related to Cardlytics asset group(9,719)Balance as of September 30, 2025$25,595 The fair value of the intangible asset was estimated using the relief from royalty method, which estimates fair value based on the present value of the royalties avoided by owning the intangible asset rather than licensing it. Key assumptions in the valuation included an estimated royalty rate, projected revenue forecasts, and a discount rate, which reflect current market conditions and management’s expectations.

4.     REVENUE

The Cardlytics platformThe Cardlytics platform is our proprietary native bank advertising channel that enables marketers to reach consumers through the FI partners' trusted and frequently visited digital banking channels. Working with the marketer, we