Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 60

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 60
---
 lower balance of or 2021 Senior Secured Notes in 2025 compared to the same period in 2024.

Other (Expense) Income, Net

Other (expense) income, net was $(0.6) million in for the three months ended March 31, 2025 compared to $0.1 million in for the three months ended March 31, 2024, a net difference of $(0.6) million.  

Provision for income taxes

Provision for income taxes increased by $1.0 thousand to $39.0 thousand in the three months ended March 31, 2025, from $38.0 thousand in the three months ended March 31, 2024.  This was primarily due to a book loss, state taxes and equity award activities, mostly offset by a full valuation allowance on our deferred tax assets.

Liquidity and Capital Resources

Since inception, we have financed our operations primarily from the sales of capital stock. As of March 31, 2025, our principal sources of liquidity were our cash, cash equivalents and restricted cash in the amount of $264.3 million, which are primarily invested in money market funds and marketable securities with maturities of less than three months.

30

In December 2021, the Company offered $300 million in aggregate principal senior secured notes due 2026 in a private offering. The notes were sold in a private placement to qualified institutional buyers. Annual interest started to accrue from December 20, 2021 at a stated rate of 10.25% and is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. The notes will mature on December 15, 2026. We used the net proceeds from the offering for general corporate purposes. The notes contain customary covenants restricting our and certain of our subsidiaries’ ability to incur debt, incur liens, make distributions to holders of our stock, make certain transactions with our affiliates, as well as certain financial covenants specified in the indentures. After giving effect to the 2023 and other previous open market repurchases of our senior secured notes, as of March 31, 2025, $129.7 million of the senior secured notes remained outstanding.  

     Other than as described below with respect to the Company’s noncompliance with certain reporting covenants under the indenture governing its senior secured notes, the Company has complied with