Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 126

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 7
Chunk 126
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 on debt extinguishment. The gain on debt extinguishment of $15.2 million for the year ended December 31, 2023 was related to the 2021 Senior Secured Notes. Refer to Note 8, Long-Term Debt, of the notes to the consolidated financial statements for further discussion.

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Interest Income (Expense), Net

Interest income, net was $0.3 million in 2024 as compared to interest expense, net of $2.9 million in 2023, a net difference of $3.2 million. This was primarily due to a partial redemption of the 2021 Senior Secured Notes in the second quarter of 2023.

Change in Fair Value of Common Stock Warrant Liabilities

The change in fair value of warrant liabilities decreased by $0.3 million to less than $0.1 million in 2024 from $0.3 million in 2023. Refer to Note 12, Common Stock Warrants, of the notes to the consolidated financial statements for further discussion.

Other (Expense) Income, Net

Other expense, net was $0.5 million in 2024 compared to other income $0.5 million in 2023, a net decrease of $1.0 million.  The change was mostly due to the loss on the termination of an operating lease in 2024.

Provision for Income Taxes

The provision for income taxes of $0.1 million in 2024 decreased from $0.2 million in 2023. 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.

Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measure is useful in evaluating our operational performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively with GAAP financial information, may be helpful to investors in assessing our operating performance. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP.

Adjusted EBITDA

“Adjusted EBITDA” is defined as net income (loss), excluding interest income (expense), net; change in fair value of common stock warrant liabilities; other income (expense), net; provision for (benefit from) income taxes; depreciation and amortization; stock-based compensation