Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 27

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 27
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 customer’s advertisement is displayed on the publisher / supplier’s mobile application.For performance obligations related to advertising revenue, customers are extended 30 day payment terms from completion of each month’s insertion order and no advertising revenue customers accounted for more than 5% of the Company’s revenue in either of three months ended March 31, 2025 and 2024, respectively.The Company recognizes an asset for incremental costs of obtaining a contract with the customer as long as Management expects to recover these costs. Incremental costs are those that would have not been incurred if the contract did not exist. Examples of incremental costs often capitalized are sales commissions whereas examples of costs that would not be included are internal employee salaries, standard benefits, travel costs, and other / general legal costs. Sales commissions are the only incremental contract costs the Company incurs and are paid based on collected revenue based on the recipient’s assigned accounts. As commissions are typically satisfied within one year after an executed contract, the Company applies the practical expedient under ASC 340-40, Other Assets and Deferred Costs: Contracts with Customers.Maintenance Fee Revenue

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

When a player becomes inactive on the platform by not participating in a tournament for six consecutive months, the Company will impose a monthly maintenance fee. This fee is charged to the player and recognized as revenue by the Company beginning in the seventh month of inactivity.

4. Balance Sheet Components

Prepaid Expenses and Other Current AssetsPrepaid expenses and other current assets consisted of the following as of March 31, 2025 and December 31, 2024:March 31,December 31,20252024Credit card processing reserve$1,000 $1,000 Prepaid expenses5,820 5,949 Other current assets9,175 10,393 Prepaid expenses and other current assets$15,995 $17,342 Property and Equipment, netProperty and equipment consisted of the following as of March 31, 2025 and December 31, 2024:March 31,December 31,20252024Land$980 $980 Building12,664 12,590 Capitalized internal-use software9,595 9,128 Computer equipment and servers1,883 1,797 Furniture and fixtures371 363 Leasehold improvements