Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000071
Chunk: 26

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 26
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2024 and were between 10% and 18% of the accounts receivable balance.Long-Lived AssetsLong-lived assets primarily consist of property and equipment with estimable useful lives subject to depreciation and amortization. The Company owns its office building in Las Vegas, Nevada that serves as its headquarters with costs allocated to building and land components. The building is depreciated on a straight-line basis over its estimated useful life of 39 years and the land is not subject to depreciation.Advertising and Promotional ExpenseAdvertising and promotional expenses are included in sales and marketing expenses within the condensed consolidated statements of operations and comprehensive (loss) income and are expensed when incurred. Advertising expenses, excluding marketing promotions related to the Company’s end-user incentive programs, were $3.9 million and $4.5 million for the three months ended June 30, 2025 and 2024, respectively, and $8.9 million and $10.5 million for the six months ended June 30, 2025 and 2024, respectively.User Acquisition User acquisition (“UA”) marketing costs to acquire new paying users to the platform are presented in sales and marketing expenses in the consolidated statements of operations and comprehensive loss. UA marketing costs were $3.6 million and $4.2 million for the three months ended June 30, 2025 and 2024, respectively, and $8.1 million and $9.8 million for the six months ended June 30, 2025 and 2024, respectively.Interest (Expense) Income, NetInterest (expense) income, net consisted of the following for the three and six months ended June 30, 2025 and 2024.Three Months Ended June 30,Six Months Ended June 30,2025202420252024Interest expense$(3,805)$(3,776)$(7,601)$(7,547)Interest income2,484 4,110 5,209 7,994 Interest (expense) income, net$(1,321)$334 $(2,392)$447 Indirect Tax LiabilitiesThe Company is subject to indirect taxes such as sales and use tax in the United States and value-added tax in certain foreign jurisdictions, respectively. Indirect tax liabilities are adjusted considering changing facts and circumstances, such as the closing of a tax examination, further interpretation of existing tax law, or new tax law. The Company recognizes changes to its estimate if it is estimable and probable that its position would not be