Firy Inc 10-Q for FY2021 Q1

Firy Inc. (FIRY)

10-Q 2021-05-14 For: 2021-03-31

Added on April 08, 2026

About this 10-Q

Firy Inc filed this 10-Q on May 14, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $83.68M; up 92.1% from $43.56M a year earlier
Net loss: $53.59M; compared with a net loss of $15.52M a year earlier
Diluted EPS: -$0.16; compared with -$0.06 a year earlier

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	SKLZ	New York Stock Exchange
Warrants to purchase one share of Class A common stock, each at an exercise price of $11.50 per share	SKLZ.WS	New York Stock Exchange


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☒


			Page

Note Regarding Forward Looking Statements

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)			1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21
Item 3. Quantitative and Qualitative Disclosures About Market Risk			30
Item 4. Controls and Procedures			30

PART II - OTHER INFORMATION

Item 1. Legal Proceedings			31
Item 1A. Risk Factors			31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32
Item 3. Defaults Upon Senior Securities			32
Item 4. Mine Safety Disclosures			32
Item 5. Other Information			32
Item 6. Exhibits			33
Signatures			34


	March 31,		December 31,
	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	612,578	$	262,728
Warrant exercise receivable	104,558		—
Prepaid expenses and other current assets	14,981		10,491
Total current assets	732,117		273,219
Property and equipment, net	5,398		5,292
Other long-term assets	3,908		3,910
Total assets	$	741,423	$	282,421
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	9,513	$	22,039
Accrued professional fees	725		5,699
Other current liabilities	29,860		19,618
Total current liabilities	40,098		47,356

Common stock warrant liabilities	112,378		178,232
Other long-term liabilities	36		46
Total liabilities	152,512		225,634
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock $0.0001 par value; 10 million shares authorized — 0 issued and outstanding as of March 31, 2021 and December 31, 2020	—		—
Common stock $0.0001 par value; 625 million shares authorized; Class A common stock – 500 million shares authorized; 326 million and 292 million shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively; Class B common stock – 125 million shares authorized; 70 million and 78 million shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	39		37
Additional paid-in capital	880,779		295,065
Accumulated deficit	(291,907)		(238,315)
Total stockholders’ equity	588,911		56,787
Total liabilities and stockholders’ equity	$	741,423	$	282,421


	Three Months Ended March 31,
	2021		2020
Revenue	$	83,677	$	43,559
Costs and expenses:
Cost of revenue	4,256		2,767
Research and development	7,282		4,366
Sales and marketing	96,323		46,825
General and administrative	27,284		4,833
Total costs and expenses	135,145		58,791
Loss from operations	(51,468)		(15,232)
Interest expense, net	(24)		(316)
Change in fair value of common stock warrant liabilities	(2,108)		—
Other income, net	50		51
Loss before income taxes	(53,550)		(15,497)
Provision for income taxes	42		25
Net loss	$	(53,592)	$	(15,522)
Net loss per share attributable to common stockholders – basic	$	(0.15)	$	(0.06)
Weighted average common shares outstanding – basic	356,818,954		278,348,903
Net loss attributable to common stockholders – diluted	$	(57,391)	$	(15,522)
Net loss per share attributable to common stockholders – diluted	$	(0.16)	$	(0.06)
Weighted average common shares outstanding – diluted	359,827,649		278,348,903


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Redeemable convertible preferred stock			Preferred stock			Common stock			Additional paid-in capital		Accumulated deficit		Total stockholders’ equity (deficit)
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 31, 2019	—	$	—	—	$	—	286,074,923	$	29	$	108,892	$	(90,256)	$	18,665
Issuance of common stock upon exercise of stock options	—	—		—	—		829,348	—		241		—		241
Stock-based compensation	—	—		—	—		—	—		357		—		357
Net loss	—	—		—	—		—	—		—		(15,522)		(15,522)
Balance at March 31, 2020	—	$	—	—	$	—	286,904,271	$	29	$	109,490	$	(105,778)	$	3,741

Balance at December 31, 2020	—	$	—	—	$	—	369,797,524	$	37	$	295,065	$	(238,315)	$	56,787
Issuance of common stock upon exercise of stock options	—	—		—	—		268,426	—		12		—		12
Issuance of common stock upon exercise of warrants and other, net	—	—		—	—		8,741,863	—		172,519		—		172,519
Net cash contributions from follow-on offering	—	—		—	—		17,000,000	2		402,238		—		402,240
Stock-based compensation	—	—		—	—		—	—		10,945		—		10,945
Net loss	—	—		—	—		—	—		—		(53,592)		(53,592)
Balance at March 31, 2021	—	$	—	—	$	—	395,807,813	$	39	$	880,779	$	(291,907)	$	588,911



	Fair Value Measured as of March 31, 2021
Liabilities included in:	Level 1		Level 2		Level 3		Total
Public Common Stock Warrants	$	62,490	$	—	$	—	$	62,490
Private Common Stock Warrants	—		—		49,888		49,888
Total fair value	$	62,490	$	—	$	49,888	$	112,378



	Fair Value Measured as of December 31, 2020
Liabilities included in:	Level 1		Level 2		Level 3		Total
Public Common Stock Warrants	$	124,545	$	—	$	—	$	124,545
Private Common Stock Warrants	—		—		53,687		53,687
Total fair value	$	124,545	$	—	$	53,687	$	178,232


		Options Outstanding						Restricted Stock Units
	Number of Shares Available for Issuance Under the Plan	Number of Shares Outstanding Under the Plan	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value		Number of Plan shares outstanding	Weighted-Average Grant Date Fair Value per share
Balance at December 31, 2020	35,500,603	38,404,493	$	5.89	8.27	$	542,074	341,256	$	17.68
Options and restricted stock units granted	(1,206,775)	—	—					1,206,775	27.40
Options exercised and restricted stock units released	—	(268,426)	0.05					—	—
Options and restricted stock units canceled	185,920	(159,224)	4.55					(26,696)	17.68
Balance at March 31, 2021	34,479,748	37,976,843	$	5.90	8.02	$	497,842	1,521,335	$	25.39

Exercisable at December 31, 2020		14,248,234	$	0.18	6.45	$	282,364
Exercisable at March 31, 2021		15,392,444	$	0.20	6.26	$	290,033
Unvested at December 31, 2020		24,156,259	$	9.25	9.34	$	259,710
Unvested at March 31, 2021		22,584,399	$	9.84	9.22	$	207,809


	Three Month Ended March 31,
	2021		2020
Numerator:
Net loss – Basic	$	(53,592)	$	(15,522)
Denominator:
Weighted average common shares outstanding – basic	356,818,954		278,348,903
Net loss per share attributable to common stockholders – basic	$	(0.15)	$	(0.06)

Numerator:
Net loss – Basic	$	(53,592)	$	(15,522)
Decrease in fair value of Private common stock warrant liabilities	(3,799)		—
Net loss – Diluted	$	(57,391)	$	(15,522)
Denominator:
Weighted average common shares outstanding – basic	356,818,954		278,348,903
Incremental common shares from assumed exercise of Private Warrants	3,008,695		—
Weighted average common shares outstanding – diluted	359,827,649		278,348,903
Net loss per share attributable to common stockholders – diluted	$	(0.16)	$	(0.06)


	Number of Securities Outstanding at March 31,
	2021	2020
Common and preferred stock warrants	8,157,942	3,635,180
Common stock options	51,121,618	40,326,727
Restricted stock units	1,521,335	—
Total	60,800,895	43,961,907


	Three Months Ended March 31,				% Change
(In thousands, except percentages)	2021		2020

Revenue	$	83,677	$	43,559		92	%


	Total		Less than 1 Year		1 – 3 Years		3 – 5 Years		More than 5 Years

Operating lease obligations	$	23,487	$	1,874	$	4,867	$	4,952	$	11,794


	March 31,		December 31,
	2021		2020
Capitalized internal-use software	$	6,568	$	6,167
Computer equipment and servers	707		631
Furniture and fixtures	184		184
Leasehold improvements	114		114
Construction in progress	1,219		1,037
Total property and equipment	8,792		8,133
Accumulated depreciation and amortization	(3,394)		(2,841)
Property and equipment, net	$	5,398	$	5,292


	Three Months Ended March 31,
	2021		2020
Net cash used in operating activities	$	(39,153)	$	(9,109)
Net cash used in investing activities	$	(659)	$	(860)
Net cash provided by financing activities	$	389,662	$	146


			SKILLZ INC.

			By:			/s/ Andrew Paradise
			Name:			Andrew Paradise
			Title:			Chief Executive Officer and Chairman


			1.			I have reviewed this Quarterly Report on Form 10-Q of Skillz Inc.;


			2.			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


			3.			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


			4.			The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


			a.			Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


			b.			[omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a)];


			c.			Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			d.			Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


			a.			All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


			b.			Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


			/s/ Scott Henry
			Scott Henry
			Chief Financial Officer
			(Principal Financial and Accounting Officer)