Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 204

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 8
Chunk 204
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 in turn, would use good faith efforts to promote the games. In December 2024, the vendor filed a complaint in Nevada seeking damages of $1.3 million for breach of contract, failure to pay royalties and unjust enrichment. In April 2025, the Company and the vendor agreed to mediate the matter that resulted in a settlement where the Company agreed to pay the vendor $533 thousand, which represented the past due balances for year one and year two of the agreement that were fully accrued as of December 31, 2024 (see Note 10, Commitments and Contingencies).Termination of Operating Lease      On April 18, 2025, the Company and the lessor of its former headquarters in San Francisco mutually agreed to terminate the lease. In exchange for the mutual releases, the Company paid the lessor a lump sum payment of $14,000,000. The loss on termination of the operating lease of $0.4 million represented the difference between the settlement amount and the carrying value of the lease obligation, and was recorded as a component of other income (expense), net in the statement of operations for the year ended December 31, 2024.Recovery of Legal Settlement     Subsequent to the year ending December 31, 2024, the D&O insurance carrier of the Flying Eagle legal matter (see Note 10, Commitments and Contingencies) agreed to pay a total of $9.75 million to Skillz in connection with this matter. Of those funds, $1.25 million was received in the quarter ending March 31, 2025 and was used to pay defense costs. During the quarter ended June 30, 2025,  Skillz received the remaining $8.50 million. In July 2025, the Company paid a settlement $10.00 million on the Flying Eagle legal matter which the court approved in September 2025.  The Company recorded the insurance recovery proceeds as an offset to general and administrative expenses for the year ended December 31, 2024  (see Note 10, Commitments and Contingencies).Skillz v. Tether Litigation     On August 29, 2025, the Company received a notice (“Notice”) from Tether indicating that Tether is terminating all of its various agreements with the Company (the “Tether Agreements”), including the Company’s Developer Terms and Conditions of Service, as amended from time to time, including by that certain Amendment to