Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 21

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 21
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 in tables are in thousands, unless otherwise noted)

Cost of RevenueCost of revenue primarily consists of third-party payment processing fees, server costs, amortization of developed technology, personnel expenses, direct software costs, amortization of internal use software, hosting expenses, and allocation of shared facility and other costs.Cash, Cash Equivalents and Restricted CashCash and cash equivalents consist of cash, commercial paper, money market funds and U.S. government agency securities with maturities of three months or less when purchased.Restricted cash of $1.0 million at September 30, 2025 was primarily associated with the cash required to be held by our financial institution. Restricted cash of $10.0 million at December 31, 2024 was primarily associated with the letter of credit for the Company’s former headquarters in San Francisco and cash required to be held by our financial institution.  The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets at September 30, 2025 and December 31, 2024 that sum to the total of these items reported in the condensed consolidated statements of cash flows for the nine months ended September 30, 2025:September 30,December 31,20252024Cash$11,693 $19,975 Money market funds200,108 251,948 Restricted cash classified as a current asset— 9,000 Restricted cash classified as a non-current asset1,000 1,000 Cash, cash equivalents and restricted cash$212,801 $281,923 Concentrations of Credit RiskFinancial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, restricted cash, and marketable securities. Although the Company deposits its cash with multiple established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company limits the amount of credit exposure to any one issuer and monitors the financial condition of the financial institutions on a regular basis. At September 30, 2025, the Company had cash balances on deposit with various financial institutions that in the aggregate exceeded the federally insured limits in the amount of $209.9 million.Accounts Receivable, NetAccounts receivable, net, represents amounts recorded for programmatic media campaigns, net of an allowance for credit losses from our advertising revenue customers of our Aarki segment. The allowance for credit losses is recorded