Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 79

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 1A
Chunk 79
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antors party thereto and the Trustee (“Indenture”) as a result of delays in filing our annual financial statements on this Form 10-K and the interim financial statements on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025. As of result of these delays, the Company fell out of compliance with the reporting covenants under the Indenture governing its senior secured notes that require that the Company provide to the trustee and holders of the senior secured notes all quarterly and annual reports required to be filed with the SEC within time periods specified under the Exchange Act.   The filing of this Annual Report on Form 10-K will help us restore compliance with a portion of the requirement, and the Company is further taking the necessary steps to file its delayed  Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025 as soon as practicable, in order to regain compliance with the applicable provisions of the Indenture. However, we may not be able to comply with these covenants for any future delays in our periodic reports with the SEC. Such future delays could lead to a default under our instruments governing our indebtedness. In addition, certain holders of our senior secured notes could exercise their rights, and we could be forced into bankruptcy or liquidation. 

Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to service or repay our substantial debt.

Our ability to make scheduled payments of the principal of, to pay interest on, and to refinance our debt, depends on our future performance, which is subject to economic, financial, competitive and other factors. Our business may not generate cash flow from operations in the future sufficient to satisfy our obligations under our current indebtedness and any future indebtedness we may incur and to make necessary capital expenditures. Our ability to refinance our outstanding indebtedness or future indebtedness will depend on market conditions and our financial position at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms when needed, which could result in a default on our indebtedness.