Firy Inc 10-Q for FY2021 Q2

Firy Inc. (FIRY)

10-Q 2021-08-10 For: 2021-06-30

Added on April 08, 2026

About this 10-Q

Firy Inc filed this 10-Q on August 10, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $89.49M; up 52.0% from $58.88M a year earlier
Net loss: $79.6M; compared with a net loss of $20.16M a year earlier
Diluted EPS: -$0.21; compared with -$0.07 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			23
Item 3. Quantitative and Qualitative Disclosures About Market Risk			33
Item 4. Controls and Procedures			34

PART II - OTHER INFORMATION

Item 1. Legal Proceedings			35
Item 1A. Risk Factors			35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			35
Item 3. Defaults Upon Senior Securities			35
Item 4. Mine Safety Disclosures			35
Item 5. Other Information			35
Item 6. Exhibits			35
Signatures			36


	June 30,		December 31,
	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	692,778	$	262,728
Warrant exercise receivable	1,185		—
Prepaid expenses and other current assets	14,608		10,491
Total current assets	708,571		273,219
Property and equipment, net	5,701		5,292
Other long-term assets	6,186		3,910
Total assets	$	720,458	$	282,421
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	11,071	$	22,039
Accrued professional fees	725		5,699
Short-term common stock warrant liabilities	77,607		—
Other current liabilities	35,531		19,618
Total current liabilities	124,934		47,356

Long-term common stock warrant liabilities	60,688		178,232
Other long-term liabilities	24		46
Total liabilities	185,646		225,634
Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred stock $0.0001 par value; 10 million shares authorized — 0 issued and outstanding as of June 30, 2021 and December 31, 2020	—		—
Common stock $0.0001 par value; 625 million shares authorized; Class A common stock – 500 million shares authorized; 328 million and 292 million shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; Class B common stock – 125 million shares authorized; 69 million and 78 million shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	39		37
Additional paid-in capital	906,275		295,065
Accumulated deficit	(371,502)		(238,315)
Total stockholders’ equity	534,812		56,787
Total liabilities and stockholders’ equity	$	720,458	$	282,421


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenue	$	89,491	$	58,878	$	173,168	$	102,437
Costs and expenses:
Cost of revenue	4,386		2,937		8,642		5,704
Research and development	10,140		4,518		17,422		8,884
Sales and marketing	99,523		52,369		195,846		99,194
General and administrative	25,432		11,642		52,716		16,475
Total costs and expenses	139,481		71,466		274,626		130,257
Loss from operations	(49,990)		(12,588)		(101,458)		(27,820)
Interest expense, net	(25)		(957)		(49)		(1,273)
Change in fair value of common stock warrant liabilities	(29,595)		—		(31,703)		—
Other income (expense), net	80		(6,584)		130		(6,533)
Loss before income taxes	(79,530)		(20,129)		(133,080)		(35,626)
Provision for income taxes	65		28		107		53
Net loss	$	(79,595)	$	(20,157)	$	(133,187)	$	(35,679)
Net loss per share attributable to common stockholders – basic and diluted	$	(0.21)	$	(0.07)	$	(0.36)	$	(0.13)
Weighted average common shares outstanding – basic and diluted	385,945,332		289,823,175		371,519,800		284,054,689


☒			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


	Preferred stock		Common stock			Additional paid-in capital			Accumulated deficit		Total stockholders’ equity
		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
Issuance of redeemable convertible Series E preferred stock		—	—		15,091,869	2			64,877		—		64,879
Issuance of common stock upon exercise of stock options		—	—		1,029,833	—			130		—		130
Issuance of common stock upon exercise of stock options with promissory note		—	—		12,700,357	1			—		—		1
Repurchase of common stock		—	—		(270,599)	—			—		(543)		(543)
Stock-based compensation		—	—		—	—			5,546		—		5,546
Net loss		—	—		—	—			—		(20,157)		(20,157)
Balance at June 30, 2020		—	$	—	315,455,731	$	32		$	180,043	$	(126,478)	$	53,597

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
Issuance of common stock upon exercise of stock options		—	—		235,054	—			97		—		97
Issuance of common stock upon exercise of warrants and other, net		—	—		628,576	—			9,625		—		9,625


Stock-based compensation		—	—		—	—			15,774		—		15,774
Net loss		—	—		—	—			—		(79,595)		(79,595)
Balance at June 30, 2021		—	$	—	396,671,443	$	39		$	906,275	$	(371,502)	$	534,812


	Fair Value Measurements as of June 30, 2021
Liabilities included in:	Level 1		Level 2		Level 3		Total
Public Common Stock Warrants	$	77,607	$	—	$	—	$	77,607
Private Common Stock Warrants	—		—		60,688		60,688
Total fair value	$	77,607	$	—	$	60,688	$	138,295


	Fair Value Measurements 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
Exercisable 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	(3,147,553)	—	—					3,147,553	21.82
Options exercised and restricted stock units released	—	(503,480)	0.22					—	—
Options and restricted stock units canceled	3,260,091	(2,985,501)	1.32					(274,590)	24.50
Balance at June 30, 2021	35,613,141	34,915,512	$	6.35	7.44	$	536,745	3,214,219	$	21.15

Exercisable at December 31, 2020		14,248,234	$	0.18	6.45	$	282,364
Exercisable at June 30, 2021		16,096,923	0.21		5.92	346,242
Unvested at December 31, 2020		24,156,259	9.25		9.34	259,710
Unvested at June 30, 2021		18,818,589	11.60		8.74	190,503


	Three Months Ended June 30,		Six Months Ended June 30,
	2021(1)	2020	2021(1)	2020
Expected volatility	48.71%	47.99% – 48.79%	48.71%	47.99% – 48.79%
Risk-free interest rate	0.02%	0.34% – 0.59%	0.02%	0.34% – 1.44 %
Expected term (in years)	0.25	5.00 – 6.18	0.25	5.00 – 6.18
Expected dividend yield	—	—	—	—
Weighted average estimated fair value of stock options granted during the period	$15.63	$2.58	$15.63	$2.42


	Number of Securities Outstanding at June 30,
	2021	2020
Common and preferred stock warrants	7,623,436	4,865,722
Common stock options	44,929,906	40,075,953
Restricted stock units	3,147,553	—
Total	55,700,895	44,941,675


	Three Months Ended June 30,				% Change	Six Months Ended June 30,				% Change
(In thousands, except percentages)	2021		2020					2021				2020

Revenue	$	89,491	$	58,878		52	%	$	173,168	$	102,437		69	%


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

Operating lease obligations	$	22,862	$	1,249	$	4,867	$	4,952	$	11,794


	June 30,		December 31,
	2021		2020
Capitalized internal-use software	$	6,569	$	6,167
Computer equipment and servers	866		631
Furniture and fixtures	184		184
Leasehold improvements	114		114
Construction in progress	1,908		1,037
Total property and equipment	9,641		8,133
Accumulated depreciation and amortization	(3,940)		(2,841)
Property and equipment, net	$	5,701	$	5,292


	Six Months Ended June 30,
		2021		2020
Net cash used in operating activities		$	(64,990)	$	(9,316)
Net cash used in investing activities		$	(3,508)	$	(1,875)
Net cash provided by financing activities		$	498,548	$	54,504


			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/ Ian Lee
			Ian Lee
			Chief Financial Officer
			(Principal Financial and Accounting Officer)