Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 176

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 8
Chunk 176
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 STATEMENTS(Amounts in tables are in thousands, unless otherwise noted)

During the year ended December 31, 2023, the Company identified an impairment related to one of its investments in a privately held company. The Company reviewed the private company’s forecast and noted significant concerns about the private company’s ability to continue as a going concern. As a result, an impairment charge of $2.9 million was recorded as of December 31, 2023. The Company did not record any other adjustments to the carrying value of its non-marketable equity securities accounted for under the measurement alternative, and did not recognize any gains or losses related to the sale of non-marketable equity securities in the years ended December 31, 2024 or 2023. Unrealized Losses on Marketable SecuritiesThe Company held no marketable securities as of December 31, 2024 and, as such, had no unrealized losses.

8. Long-Term Debt

Components of long-term debt were as follows as of December 31, 2024 and 2023:December 31,202420232021 Senior Secured Notes$129,671 $129,671 Unamortized discount and issuance costs(4,017)(5,736)Long-term debt, non-current$125,654 $123,935 2021 Senior Secured NotesOn December 20, 2021, the Company entered into $300 million of 10.25% secured notes (the “2021 Senior Secured Notes”) in a private placement to certain institutional buyers. The 2021 Senior Secured Notes are guaranteed by the Company’s domestic restricted subsidiaries. The interest is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. At issuance, the effective interest rate on the 2021 Senior Secured Notes was 12.14%, and maturity will be on December 15, 2026, unless repurchased or redeemed earlier. On April 13, 2023, the Company repurchased approximately $159.8 million of its 2021 Senior Secured Notes. In connection with the repurchase, the Company recognized a gain on extinguishment of $15.2 million reflected in the consolidated statements of operations and comprehensive loss. The gain included payment discounts related to consideration below the par value and the write-off of unamortized debt issuance costs and discounts. After giving effect to the 2023 and other previous