Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 130

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 7
Chunk 130
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 Company has complied with debt covenant requirements that could have a material impact on debt classification in the event of non-compliance.  In light of delays in the filing of 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, the Company fell out of compliance with the reporting covenants under the Indenture governing its senior secured notes that require 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 the time periods specified under the Exchange Act. As such, on September 30, 2025, the Company received a notice of default from the trustee of the senior secured notes. The filing of this Annual Report on Form 10-K will help us restore compliance with a portion of this 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 

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practicable, in order to regain compliance with the applicable provisions of the Indenture.  For additional information, see Note 19. Subsequent events.

Our existing liquidity resources are sufficient to continue operating activities for at least one year past the issuance date of the consolidated financial statements. Our future cash requirements will depend on many factors, including our rate of revenue growth and the expansion of our sales and marketing activities. We also may invest in or acquire complementary businesses, applications or technologies.

The following table provides a summary of cash flow data (in thousands):

Year Ended December 31,20242023Net cash used in operating activities$(7,074)$(71,758)Net cash (used in) provided by investing activities$(1,377)$168,301 Net cash used in financing activities$(21,654)$(149,951)

Cash Flows from Operating Activities

Our cash flows from operating activities are significantly affected by the growth of our business primarily related to research and development, sales and marketing, and general and administrative activities. Our operating cash flows are also affected by working capital needs to support growth in personnel-related expenditures and fluctuations in accounts payable and other current assets and liabilities.

Net cash used in operating activities was $7.1 million for the year ended December 31, 2024. The most significant component of our cash used during this period was a net loss of $46.8