Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 23

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 23
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 and $15.0 million for the nine months ended September 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 $4.3 million and $4.7 million for the three months ended September 30, 2025 and 2024, respectively, and $12.4 million and $14.5 million for the nine months ended September 30, 2025 and 2024, respectively.Interest (Expense) Income, NetInterest (expense) income, net, consisted of the following for the three and nine months ended September 30, 2025 and 2024.Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Interest expense$(3,815)$(3,771)$(11,416)$(11,320)Interest income2,255 4,013 7,464 12,008 Interest (expense) income, net$(1,560)$242 $(3,952)$688 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 sustainable upon examination by taxing authorities. Although management believes the Company’s recorded liabilities are reasonable, no assurance can be given that the final tax outcomes of these matters will not be different from that which its liabilities are based on. To the extent that final tax outcomes of these matters are different than the amounts recorded, such differences could have a material impact on the Company’s condensed consolidated financial statements as the Company records related tax reserves as a reduction in revenue, and 

7

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

penalties and interest in general and administrative expenses. The Company recorded indirect tax liabilities of $14.6 million and $14.9 million at September 30, 2025 and December 31, 2024, respectively. See Note 8,