Company: CDLX
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001666071-25-000126
Chunk: 163

Company: Cardlytics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 163
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, a $15.1 million decrease in Partner Share liability, a $7.3 million decrease in other accrued expense and a $0.4 million increase in prepaid expenses and other assets, partially offset by a $14.8 million decrease in accounts receivable and a $0.8 million increase in accounts payable. These fluctuations are primarily driven by the quarterly seasonality of our business.

Investing Activities

Investing activities used $8.6 million and $9.4 million of cash during the six months ended June 30, 2025 and 2024, respectively. Our investing cash flows during the six months ended June 30, 2025 and 2024 primarily consisted of funds used for the purchases of technology hardware and capitalization of costs to develop internal-use software.

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Financing Activities

Financing activities used $5.1 million of cash during the six months ended June 30, 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 $2.0 million in cash during the six months ended June 30, 2024, which consisted of aggregated net proceeds of $166.8 million proceeds from our issuance of the 2024 Convertible Senior Notes offering and 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, partially offset by a $169.3 million of principal payment of debt towards our 2020 Convertible Senior Notes, $30.0 million payment to the 2018 Line of Credit and $14.2 million paid in cash related to the settlement agreement with the Stockholder Representative to resolve all outstanding disputes related to the Merger Agreement, inclusive of brokerage fees and transaction bonuses and accounting for all true-ups and credit.

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 capitalized software development costs including determining if a project is eligible for capitalization, determining whether the incurred costs are directly associated with the project, and evaluating the current stage of the project’s development, the assumptions used in the valuation models to determine the fair value of equity awards and stock-based