Skillz Receives NYSE Notice Regarding Late Form 10-K Filing
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Insights
When a company like Skillz Inc. fails to meet the NYSE's timely filing requirements, it raises red flags for investors and analysts alike. The delay in filing the Annual Report on Form 10-K suggests potential issues in financial reporting, internal controls, or even operational challenges. Investors should monitor the situation closely as the eventual filing will provide critical insights into the company's financial health and management's ability to resolve reporting issues. It's also important to consider the implications of any material changes that might emerge once the audit is completed. While the current statement indicates no expected material changes, the audit's outcome could sway investor confidence and stock volatility.
Furthermore, the NYSE's warning about possible delisting proceedings is a serious matter. Delisting can severely impact a stock's liquidity and attractiveness to institutional investors. However, the company's assurance of filing within the six-month extension period could mitigate immediate concerns. The stock market typically reacts to uncertainty, so clarity on the company's progress towards compliance will be key in the coming months.
The gaming industry, where Skillz Inc. operates, is highly competitive and sensitive to consumer trends and regulatory compliance. The company's inability to file the required financial documents on time could be indicative of deeper operational or competitive issues, which may affect their market positioning. Investors should consider the broader industry context, including the performance of peer companies and the demand for gaming platforms. Any prolonged uncertainty regarding Skillz's financials might lead competitors to capitalize on the situation, potentially eroding Skillz's market share.
On the flip side, if Skillz manages to resolve its filing issues without uncovering any material financial discrepancies, the company could regain investor confidence. It's also worth noting that the gaming sector is known for its resilience and rapid growth, which could work in Skillz's favor if they navigate through this compliance challenge effectively.
Compliance with NYSE listing standards is a legal requirement for publicly traded companies. Skillz Inc.'s failure to file its Form 10-K in a timely manner could have legal ramifications beyond the threat of delisting. It might subject the company to SEC scrutiny and potential penalties. Investors should be aware of the legal processes and timelines that the company must adhere to in order to regain compliance. The six-month period granted by the NYSE, with a possible six-month extension, provides a timeline for investors to track the company's progress towards resolving these issues.
While the company has indicated that no material changes are expected in the financial results, any deviations from this expectation could lead to legal consequences and further undermine investor trust. It is essential for investors to keep abreast of any updates from the company regarding its compliance efforts and any legal developments that may arise from this situation.
The NYSE Notice has no immediate effect on the listing of the Company’s common stock on the NYSE. The NYSE Notice informed the Company that, under NYSE rules, the Company has six months from March 15, 2024 to regain compliance with the NYSE listing standards by filing the Form 10-K with the SEC. The NYSE further noted that, if the Company fails to file the Form 10-K within the six-month period, the NYSE may grant, at its sole discretion, an extension of up to six additional months for the Company to regain compliance, depending on the specific circumstances. The NYSE Notice also notes that the NYSE may nevertheless commence delisting proceedings at any time if it deems that the circumstances warrant.
As previously reported in the Company’s Notification of Late Filing on Form 12b-25 filed with the SEC on March 14, 2024 (the “Form 12b-25”), the Company was unable to file the Form 10-K within the prescribed period because the Company requires more time to complete the procedures relating to its year-end process, including the completion of the audit of the Company’s financial statements by the Company’s independent auditors for inclusion in the Form 10-K. Subsequent to filing the Form 12b-25, the Company continued to dedicate significant resources to the completion of such procedures but was unable to file the Form 10-K by April 1, 2024, the end of the extension period provided by the Form 12b-25. The Company requires additional time to complete such procedures.
Based on currently available information and subject to the completion of the audit procedures, the Company does not expect any material change to the financial results to be included in the Form 10-K compared to the preliminary financial information reported in the earnings release the Company furnished to the SEC on the Company’s Current Report on Form 8-K filed on March 14, 2024.
The Company is working diligently to complete the necessary work to file the Form 10-K as soon as practicable and currently expects to file the Form 10-K within the six-month period granted by the NYSE Notice; however, there can be no assurance that the Form 10-K will be filed within such period.
About Skillz Inc.
Skillz is the leading mobile games platform dedicated to bringing out the best in everyone through competition. The Skillz platform helps developers create multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual eSports tournaments for millions of mobile players worldwide, with the goal of building the home of competition for all. Skillz has earned recognition as one of Fast Company’s Best Workplaces for Innovators, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, Fast Company’s Most Innovative Companies, and the number-one fastest-growing company in America on the Inc. 5000. www.skillz.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the ability of Skillz to: effectively compete in the global entertainment and gaming industries; attract and retain successful relationships with the third party developers who develop and update the games hosted on Skillz’ platform; drive brand awareness with end users; invest in growth and development of employees; comply with laws, regulations and expectations applicable to its business, including with respect to cybersecurity and corporate governance matters; mitigate the commercial, reputational and regulatory risks to our business; remediate during fiscal year 2024 certain non-fully remediated material weaknesses in our internal controls over financial reporting. Additional factors that may cause such differences include other risks and uncertainties indicated from time to time in the Company’s SEC filings, including those under “Risk Factors” therein, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the Company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240408736234/en/
Investors: ir@skillz.com
or
James Leahy, Richard Land
JCIR
(212) 835-8500 or sklz@jcir.com
Media: press@skillz.com
Source: Skillz Inc.
FAQ
Why did Skillz receive a notice from the NYSE?
What is the deadline for Skillz to regain compliance with NYSE listing standards?
What happens if Skillz fails to file the Form 10-K within the six-month period?
Is there a possibility of delisting proceedings against Skillz?
What are the reasons for the delayed filing of Skillz's Form 10-K?
Does Skillz expect any material changes in financial results for the Form 10-K compared to the preliminary financial information reported earlier?
When does Skillz expect to file the Form 10-K?
