XML 30 R11.htm IDEA: XBRL DOCUMENT
v3.24.3

GOODWILL AND ACQUIRED INTANGIBLES | 9 Months Ended
--- | ---
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND ACQUIRED INTANGIBLES | GOODWILL AND ACQUIRED INTANGIBLES Goodwill Goodwill is tested annually for impairment, unless certain triggering events require an interim impairment analysis, including macroeconomic conditions, industry and market considerations, costs factors, overall financial performance, and other relevant entity-specific events and changes. These considerations are evaluated holistically to assess whether it is more likely than not that a reporting unit's carrying value exceeds its fair value. Our reporting units consist of the Cardlytics platform in the U.S., the Cardlytics platform in the U.K. and the Bridg platform. There is no goodwill recorded within the Cardlytics platform in the U.K. The carrying amounts of goodwill as of September 30, 2024 were as follows (in thousands):
| Cardlytics Platform |  | Bridg Platform |  | Consolidated
Gross goodwill | $ | 159,429 |  |  | $ | 117,773 |  |  | $ | 277,202 |
Accumulated impairments | — |  |  | (117,773) |  |  | (117,773) |
Goodwill | $ | 159,429 |  |  | $ | — |  |  | $ | 159,429 |
We have assessed the triggering events criteria along with related conditions and developments as of September 30, 2024, and we have concluded that we had a triggering event as a result of a sustained decline in our stock price during the three months ended September 30, 2024. We have, therefore, performed a quantitative impairment test as of September 30, 2024, and determined that the carrying value of the Bridg platform exceeded its fair value. As such, we recognized a goodwill impairment of $117.8 million for the Bridg platform. As of September 30, 2024, there is no remaining goodwill associated with the Bridg platform. Acquired Intangibles We 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. We have assessed the triggering events criteria along with related conditions and developments as of September 30, 2024. As a result of a triggering event as discussed above, we performed an impairment test as of September 30, 2024, and determined that the carrying value of the Bridg platform Developed technology intangible asset exceeded its fair values. As such, we recognized an acquired intangible asset impairment of $13.7 million during the three months ended September 30, 2024. 2024 Acquired Intangibles Acquired intangible assets subject to amortization as of September 30, 2024 were as follows:
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Impairment of Intangible Assets |  | Net |  | Weighted Average Remaining Useful Life
|  | (in thousands) |  | (in years)
Developed technology |  | $ | 63,621 |  |  | $ | (40,539) |  |  | $ | (13,748) |  |  | $ | 9,334 |  |  | 2.8
Merchant relationships |  | 21,930 |  |  | (18,438) |  |  | — |  |  | 3,492 |  |  | 1.7
Total other intangible assets |  | $ | 85,551 |  |  | $ | (58,977) |  |  | $ | (13,748) |  |  | $ | 12,826 |  |  |
2023 Acquired Intangibles Acquired intangible assets subject to amortization as of December 31, 2023 were as follows:
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Divestiture of Entertainment |  | Net |  | Weighted Average Remaining Useful Life
|  | (in thousands) |  | (in years)
Trade name |  | $ | 2,315 |  |  | $ | (1,802) |  |  | $ | (513) |  |  | $ | — |  |  | 0.0
Developed technology |  | 64,070 |  |  | (33,838) |  |  | (449) |  |  | 29,783 |  |  | 3.4
Merchant relationships |  | 25,915 |  |  | (16,784) |  |  | (3,985) |  |  | 5,146 |  |  | 2.4
Total other intangible assets |  | $ | 92,300 |  |  | $ | (52,424) |  |  | $ | (4,947) |  |  | $ | 34,929 |  |  |
Amortization expense of acquired intangibles during the three months ended September 30, 2024 and 2023 was $2.8 million and $3.4 million, respectively. Amortization expense of acquired intangibles during the nine months ended September 30, 2024 and 2023 was $8.4 million and $10.3 million, respectively. As of September 30, 2024, we expect amortization expense in future periods to be as follows (in thousands):
|  | Amount
2024 (remaining three months) |  | 1,453 |
2025 |  | 5,813 |
2026 |  | 4,370 |
2027 |  | 1,190 |
Thereafter |  | — |
Total expected future amortization expense |  | $ | 12,826 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration