Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 43

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 43
---
43 Exercised/Vested— — — (33)— Cancelled/Forfeited/Expired53,684 — — (53,684)6.74 Additional Shares Authorized and Balance Reconciliation Adjustments(1,733,190)— — — — Balance at March 31, 20252,009,766 681,729 312.44 5.7136 2,007,112 $9.48 

As of March 31, 2025, there were approximately 2.0 million shares of common stock available for future grants. 

11. Income Taxes

The Company’s provision for income taxes was $39.0 thousand and $38.0 thousand for the three months ended March 31, 2025 and 2024, respectively, which represented an effective tax rate of negative 0.23% and 0.20% for the respective periods. The Company has historically been in an overall loss position and is only subject to foreign and state taxes.  The Company maintains a full valuation allowance for all its net deferred tax assets.  The effective tax rates were less than the federal statutory rate of 21% primarily due to book losses, state taxes and equity award activities, mostly offset by a full valuation allowance on deferred tax assets for the three months ended March 31, 2025 and 2024, respectively.

12. Segment Reporting 

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-making group (the “CODM”). Our CODM consists of the Chief Executive 

19

TABLE OF CONTENTSSKILLZ INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited, amounts in tables are in thousands, unless otherwise noted)

Officer who allocates resources and measures profitability based on our operating segments, which are managed and reviewed separately, as each represents products and services that can be sold separately to our customers. The CODM does not review information regarding total assets on a reportable segment basis. Effective in the fourth quarter of 2023, the Company had two operating and reporting segments.A description of the Company’s two reportable segments, including products and services, is as follows.SkillzSkillz is a leading eSports gaming platform. Its platform enables game developers to monetize their content through multi-player competition. By utilizing Skillz’ monetization services, developers can enhance their end-user