Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 175

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 175
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 historical performance and the current macroeconomic, industry, and market conditions. The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. Our discount rate may be impacted by adverse changes in the macroeconomic environment and volatility in the equity and debt markets.Acquired Intangible AssetsWe evaluate the recoverability of our finite-lived intangible assets and other long-lived assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. Prior to the quantitative goodwill impairment test, we evaluated the recoverability of these long-lived assets for our asset groups. The evaluation is based on the cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the extent the carrying amount of the asset group exceeded its estimated fair value. 

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2025 Acquired IntangiblesAcquired intangible assets subject to amortization as of September 30, 2025 were as follows:Gross Carrying AmountAccumulated AmortizationNetWeighted Average Remaining Useful Life(in thousands)(in years)Developed technology$49,873 $(44,152)$5,721 1.7Merchant relationships21,930 (20,644)1,286 0.6Total other intangible assets$71,803 $(64,796)$7,007 2024 Acquired IntangiblesAcquired intangible assets subject to amortization as of December 31, 2024 were as follows:Gross Carrying AmountAccumulated AmortizationImpairment of Intangible AssetsNetWeighted Average Remaining Useful Life(in thousands)(in years)Developed technology$63,621 $(41,442)$(13,748)$8,431 2.5Merchant relationships21,930 (18,989)— 2,941 1.4Total other intangible assets$85,551 $(60,432)$(13,748)$11,371 Amortization expense of acquired intangibles during the three months ended September 30, 2025 and 2024 was $1.5 million and $2.8 million, respectively. Amortization expense of acquired intangibles during