Company: CDLX
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666071-25-000069
Chunk: 178

Company: Cardlytics, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 178
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 classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information. Refer to Note 3 - Goodwill and Acquired Intangibles for further details.These levels are:•Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities.•Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.•Level 3 - unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability at fair value.

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Included in the fair value table are cash equivalents and contingent consideration. Cash equivalents are comprised of money market funds and U.S. treasury bills stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. The fair value of cash equivalents are as follows (in thousands): March 31, 2025 Level 1Level 2Level 3TotalAssets:Cash equivalentsMoney market funds$17,732 $— $— $17,732 US Treasury Bills9,483 — — 9,483 Total cash equivalents at fair value$27,215 $— $— $27,215  December 31, 2024 Level 1Level 2Level 3TotalAssets:Cash equivalentsMoney market funds$32,332 $— $— $32,332 US Treasury Bills13,450 — — 13,450 Total cash equivalents at fair value$45,782 $— $— $45,782 The following table shows a reconciliation of the beginning and ending fair value measurements of our contingent consideration, which we have valued using level 3 inputs:Three Months EndedMarch 31,20252024Beginning balance$— $43,560 Decrease due to earnout settlement— (45,114)Change in fair value of contingent consideration— 5,817 Reclassification due to remaining payments being fixed per Settlement Agreement— (4,263)Ending balance$— $— As part of our acquisition of Bridg and pursuant to the terms of the Merger Agreement, we agreed to make two earnout payments: the First Anniversary Payment Amount and the Second Anniversary Payment Amount, based on the First Anniversary ARR