Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 178

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 8
Chunk 178
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 Company is a party to various non-cancelable finance lease agreements for certain network equipment. The leases have original lease periods expiring between 2025 to 2030. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.      The Company has elected the short-term lease recognition exemption for all leases that qualify. For leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, the Company does not recognize ROU assets or lease liabilities. Instead, lease payments for short-term leases are recognized as expense on a straight-line basis over the lease term. Short-term lease costs for the years ended December 31, 2024 and 2023 were $0.2 million and $0.3 million, respectively, and are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.The components of lease costs, lease term and the discount rate were as follows for the years ended December 31, 2024 and 2023:Year Ended December 31,20242023Finance leasesAmortization of assets under finance leases$— $— Interest97 230 Total finance lease costs$97 $230 Operating lease cost$1,344 $1,968 Variable lease cost$572 $580 Short-term lease rent expense$2,052 $1,157 Weighted-average remaining lease termOperating leases5.26.2Finance leases0.61.5

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

Year Ended December 31,20242023Weighted-average discount rateOperating leases11.2 %11.5 %Finance leases10.9 %11.2 %The following table outlines future minimum lease payments under the Company’s non-cancellable leases as of December 31, 2024:Operating LeasesFinance Leases2025$2,715 $482 20262,726 — 20272,666 — 20282,746 — 20292,828 — Thereafter967 — Total undiscounted cash flows14,648