Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 45

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 45
---
 Cancelled/Forfeited/Expired145,464 (498)23.02 (144,966)7.12 Additional Shares Authorized and Balance Reconciliation Adjustments(1,733,190)— — — — Balance at September 30, 20251,940,004 681,231 $312.65 5.2124 1,844,474 $9.89 

As of September 30, 2025, there were approximately 1.9 million shares of common stock available for future grants. 

11. Income Taxes

The Company’s provision for income taxes was $40.0 thousand and $32.0 thousand for the three months ended September 30, 2025 and 2024, respectively, which represented an effective tax rate of negative 0.23% and 0.15% for the respective periods. The Company's provision for income taxes was $59.0 thousand and $142.0 thousand to continuing operations for the nine months ended September 30, 2025 and 2024, respectively, which represented an effective tax rate of negative 0.11% and 0.66%, respectively. The effective tax rates were less than the federal statutory rate of 21% primarily due to book losses, state taxes and equity award activities, mostly offset by a full valuation allowance on our deferred tax assets for the three and nine months ended September 30, 2025 and 2024, respectively.On July 4, 2025, the “One Big Beautiful Bill Act” (“OBBBA” or the “Act”) was signed into law, enacting significant changes to U.S. federal tax regulations. In accordance with Accounting Standards Codification 740 (“ASC 740”), Income Taxes, the effects of new tax legislation are required to be recognized in the period of enactment, which for the Company is the quarter ended September 30, 2025. The total net impact of the tax law changes on the income tax provision for the three and nine months ended September 30, 2025, was not material. A discrete adjustment of approximately $866 thousand was made to the existing deferred tax assets and deferred tax liability that were fully offset by an adjustment to the valuation allowance on our deferred tax assets.  OBBBA adjustments impacting these deferred balances relate to the restoration of bonus depreciation for qualifying assets and the inclusion of Section 174A which allows taxpayers to fully expense domestic research expenditures.

12