Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000072
Chunk: 8

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 2
Chunk 8
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. This was primarily due to a book loss, state taxes and equity award activities, mostly offset by a full valuation allowance on our deferred tax assets.

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, a calendar-year entity, 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.

32

Results of Operations 

Comparison for the nine months ended September 30, 2025 and 2024.

Nine Months Ended September 30,2025 to 2024 Change20252024Increase/(Decrease)AmountPercentageRevenue$74,485 $75,094 $(609)(1)%Costs and expenses:Cost of revenue9,539 10,171 (632)(6)%Research and development15,102 13,638 1,464 11 %Sales and marketing51,804 61,138 (9,334)(15)%General and administrative53,269 58,419 (5,150)(9)%Gain from litigation settlement(7,500)(46,000)38,500 (84)%Total costs and expenses122,214 97,366 24,848 26 %Loss from operations(47,729)(22,272)(25,457)114 %Interest (expense) income, net(3,952)688 (4,640)(674)%Change in fair value of common stock warrant liabilities— 11 (11)(100)%Other income (expense), net(766)(78)(688)882 %Loss before income taxes(52,447)(21,651)(30,796)142 %Provision for