Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 177

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 8
Chunk 177
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 open market repurchases, as of December 31, 2024, $129.7 million of the 2021 Senior Secured Notes remained outstanding and the effective interest rate was 12.09%. The 2021 Senior Secured Notes contain customary covenants restricting the Company’s ability to incur debt, incur liens, make distributions to stockholders, make certain transactions with the Company’s affiliates, together with other financial covenants and public filings of our financial statements. We were in compliance with all covenants applicable to the 2021 Senior Secured Notes as of December 31, 2024 and 2023.Subsequently, on September 30, 2025, we were not in compliance with certain of the covenants (see Note 19, Subsequent Events).Voluntary prepayments are permitted in whole, or in part, in minimum amounts as set forth in the Indenture Agreement governing the 2021 Senior Secured Notes, with prior notice, and with a prepayment premium of 3.417% on, or during, the twelve-month period that began on  December 15, 2024. Voluntary prepayments made on, or during, the twelve-month period beginning December 15, 2025 are not subject to a prepayment premium.

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

Debt issuance costs incurred in connection with the 2021 Senior Secured Notes are capitalized and amortized to interest expense over the five-year term using the straight-line method, which approximates the effective interest method. Debt issuance costs are included as contra-liabilities in long-term debt.   The Company determined the fair value of the notes is $121.6 million as of December 31, 2024 based on secondary market quotes.Amortization of debt issuance costs and accretion of debt discounts included in interest expense totaled $1.7 million and $2.2 million, in the years ended December 31, 2024 or 2023, respectively.The following table outlines the future principal maturities related to the Company’s long-term debt as of December 31, 2024:Amount2025$— 2026129,671 Total$129,671 

9. Leases

The Company is a party to various non-cancelable operating lease agreements for certain of its offices. The