Company: CDLX
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666071-25-000069
Chunk: 278

Company: Cardlytics, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 2
Chunk 278
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 and credit losses expense. The change in our net operating assets and liabilities was primarily due to a $8.7 million decrease in our Consumer Incentive liability, a $13.3 million decrease in Partner Share liability, a $7.6 million decrease in other accrued expense and a $3.5 million increase in prepaid expenses and other assets, partially offset by a $13.3 million decrease in accounts receivable and a $0.1 million increase in accounts payable. These fluctuations are primarily driven by the quarterly seasonality of our business.

Investing Activities

Investing activities used $3.9 million and $4.7 million of cash during the three months ended March 31, 2025 and 2024, respectively. Our investing cash flows during the three months ended March 31, 2025 and 2024 primarily consisted of funds used for the purchases of technology hardware and capitalization of costs to develop internal-use software.

Financing Activities

Financing activities used $3.0 million of cash during the three months ended March 31, 2025, which consisted of cash paid pursuant to the Settlement Agreement with the Stockholder Representative to resolve all outstanding disputes related to the Merger Agreement.

Financing activities provided $28.3 million in cash during the three months ended March 31, 2024, consisted of an aggregate net proceeds of $48.6 million received pursuant to sales of our common stock in "at-the-market" offerings pursuant to the Equity Distribution Agreement, offset by $20.1 million in cash paid pursuant to the Settlement Agreement with the Stockholder Representative to resolve all outstanding disputes related to the Merger Agreement.

Critical Accounting Estimates

Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, Revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis.

We believe that the assumptions and estimates associated with the evaluation of Revenue recognition criteria, including the determination of Revenue recognition as net versus gross in our Revenue arrangements, the assumptions used in the valuation models to determine the fair value of equity awards and stock-based compensation expense, the assumptions used both in the initial valuation and ongoing impairment analysis of goodwill and acquired intangible assets of Bridg and Entertainment and the assumptions required in determining any valuation allowance recorded against deferred tax assets have the greatest potential impact on our condensed consolidated financial statements. 

Therefore, we consider these to be our critical accounting policies