Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 196

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 8
Chunk 196
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 statutory U.S. Federal rate of 21% is as follows:Year Ended December 31,20242023U.S. Federal provision (benefit)At statutory rate21.0 %21.0 %State taxes(0.1)%(0.1)%Valuation allowance(7.8)%(12.2)%Stock-based compensation(12.7)%(8.8)%Permanent differences related to fair value adjustments(0.5)%(0.3)%Other permanent differences— %0.1 %Total(0.1)%(0.2)%

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

Deferred Tax Assets and LiabilitiesDeferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities for federal and state income taxes are as follows:Year Ended December 31,20242023Deferred tax assets:Net operating loss carryforwards$151,015 $147,279 Stock-based compensation952 1,003 Reserves and accruals5,394 4,468 Property and equipment604 803 Lease liabilities2,542 2,829 Capitalized R&D12,961 12,755 Sec. 163(j) interest carryforwards6,445 6,520 Other36 37 Total deferred tax assets$179,949 $175,694 Less: valuation allowance(179,877)(175,694)Deferred tax assets, net of valuation allowance$72 $— Deferred tax liabilities:Right-of-use assets(72)— Total deferred tax liabilities(72)— Net deferred tax assets (liabilities)$— $— A valuation allowance is required to be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A full review of all positive and negative evidence needs to be considered. As of December 31, 2024 and 2023, the Company has provided a full valuation allowance on its net deferred tax assets. The change in total valuation allowance from 2023 to 2024 was