Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 22

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 22
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 and monitors the financial condition of the financial institutions on a regular basis. At March 31, 2025, the Company had cash balances on deposit with various financial institutions that in the aggregate exceeded the federally insured limits in the amount of $261.7 million.Accounts Receivable, NetAccounts receivable, net, represents amounts recorded for programmatic media campaigns, net of an allowance for credit losses from our advertising revenue customers of our Aarki segment. The allowance for credit losses is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when there are specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company’s provision and write-offs, net of recoveries for credit losses were not material in the three months ended March 31, 2025 and 2024. The allowance for credit losses were $265.1 thousand and $273.0 thousand at March 31, 2025 and December 31, 2024, respectively.Four customers of Aarki individually represented 10% or more of total accounts receivables as of March 31, 2025. The individual receivable balance of these customers was between 10.1% and 14.7% of the accounts receivable balance. Four 

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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)

customers of Aarki accounted for 10% of more of the total accounts receivable balance as of December 31, 2024 and were between 10% and 18% of the accounts receivable balance. Long-Lived AssetsLong-lived assets primarily consist of property and equipment with estimable useful lives subject to depreciation and amortization. The Company owns its office building in Las Vegas, Nevada that serves as its headquarters with costs allocated to building and land components. The building is depreciated on a straight-line basis