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| | | | | F-1 | | |
| | |
Year
Ended December 31, 2020 |
| |
For the period
January 15, 2020 (inception) through December 16, 2020 |
| |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
SKILLZ |
| ||||||||||||
| | |
SKILLZ
|
| |
FEAC
|
| |||||||||||||||||||||
Revenue
|
| | | $ | 230,115 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 230,115 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 12,281 | | | | | | — | | | | | | — | | | | | | | | | 12,281 | | |
Research and development
|
| | | | 23,225 | | | | | | — | | | | | | — | | | | | | | | | 23,225 | | |
Sales and marketing
|
| | | | 251,941 | | | | | | — | | | | | | — | | | | | | | | | 251,941 | | |
General and administrative
|
| | | | 42,289 | | | | | | 1,356 | | | | | | (128) | | | |
(a)
|
| | | | 43,517 | | |
Total costs and expenses
|
| | | | 329,736 | | | | | | 1,356 | | | | | | (128) | | | | | | | | | 330,964 | | |
Loss from operations
|
| | | | (99,621) | | | | | | (1,356) | | | | | | 128 | | | | | | | | | (100,849) | | |
Interest expense, net
|
| | | | (1,325) | | | | | | — | | | | | | — | | | | | | | | | (1,325) | | |
Other income (expense), net
|
| | | | (21,400) | | | | | | — | | | | | | — | | | | | | | | | (21,400) | | |
Other income – interest on Trust Account
|
| | | | — | | | | | | 717 | | | | | | (717) | | | |
(b)
|
| | | | — | | |
Loss before income taxes
|
| | | | (122,346) | | | | | | (639) | | | | | | (589) | | | | | | | | | (123,574) | | |
Provision for income taxes
|
| | | | 115 | | | | | | 65 | | | | | | (124) | | | |
(c)
|
| | | | 56 | | |
Net loss
|
| | | $ | (122,461) | | | | | $ | (704) | | | | | $ | (465) | | | | | | | | $ | (123,630) | | |
Basic and diluted weighted average shares outstanding
|
| | | | 294,549,146 | | | | | | | | | | | | | | | | | | | | | 346,341,538 | | |
Basic and diluted net loss per share
|
| | | $ | (0.42) | | | | | | | | | | | | | | | | | | | | $ | (0.36) | | |
| | |
Year Ended
December 31, 2020 |
| |||
Pro forma net loss
|
| | | $ | (123,630) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 346,341,538 | | |
Net loss per share, basic and diluted(1)
|
| | | $ | (0.36) | | |
Weighted average shares calculation, basic and diluted | | | | | | | |
FEAC public stockholders
|
| | | | 68,997,860 | | |
Holders of FEAC sponsor shares
|
| | | | 6,350,200 | | |
Current Skillz stockholders
|
| | | | 255,140,426 | | |
Private Placement
|
| | | | 15,853,052 | | |
| | | | | 346,341,538 | | |
| | |
Historical
|
| |||||||||||||||
(in thousands, except for number of shares and per share amounts)
|
| |
Year Ended December 31.
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Statements of Operations Data: | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 230,115 | | | | | $ | 119,872 | | | | | $ | 50,778 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 12,281 | | | | | | 5,713 | | | | | | 2,112 | | |
Research and development
|
| | | | 23,225 | | | | | | 11,241 | | | | | | 7,547 | | |
Sales and marketing
|
| | | | 251,941 | | | | | | 111,370 | | | | | | 51,689 | | |
General and administrative
|
| | | | 42,289 | | | | | | 16,376 | | | | | | 14,975 | | |
Total costs and expenses
|
| | | | 329,736 | | | | | | 144,700 | | | | | | 76,323 | | |
Loss from operations
|
| | | | (99,621) | | | | | | (24,828) | | | | | | (25,545) | | |
Interest expense, net
|
| | | | (1,325) | | | | | | (2,497) | | | | | | (2,190) | | |
Other income (expense), net
|
| | | | (21,400) | | | | | | 3,720 | | | | | | (45) | | |
Loss before income taxes
|
| | | | (122,346) | | | | | | (23,605) | | | | | | (27,780) | | |
Provision for income taxes
|
| | | | 115 | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (122,461) | | | | | $ | (23,605) | | | | | $ | (27,780) | | |
Net loss per share attributable to common stockholders – basic and diluted
|
| | | $ | (0.42) | | | | | $ | (0.09) | | | | | $ | (0.12) | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 294,549,146 | | | | | | 261,228,108 | | | | | | 236,040,717 | | |
| | |
Historical
|
| |||||||||
(in thousands)
|
| |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Total assets
|
| | | $ | 282,241 | | | | | $ | 38,856 | | |
Total current liabilities
|
| | | | 47,356 | | | | | | 10,481 | | |
Total liabilities
|
| | | | 47,402 | | | | | | 20,191 | | |
Working capital
|
| | | | 225,863 | | | | | | 24,611 | | |
Total stockholder’s equity
|
| | | | 235,019 | | | | | | 18,665 | | |
(in thousands)
|
| |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Satement of Cash Flow Data: | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in): | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | (56,232) | | | | | $ | (21,937) | | | | | $ | (16,948) | | |
Investing activities
|
| | | | (3,246) | | | | | | (3,223) | | | | | | (867) | | |
Financing activities
|
| | | | 296,578 | | | | | | 31,168 | | | | | | 33,330 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||
Revenue
|
| | | $ | 230,115 | | | | | $ | 119,872 | | | | | $ | 50,778 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 12,281 | | | | | | 5,713 | | | | | | 2,112 | | |
Research and development
|
| | | | 23,225 | | | | | | 11,241 | | | | | | 7,547 | | |
Sales and marketing
|
| | | | 251,941 | | | | | | 111,370 | | | | | | 51,689 | | |
General and administrative
|
| | | | 42,289 | | | | | | 16,376 | | | | | | 14,975 | | |
Total costs and expenses
|
| | | | 329,736 | | | | | | 144,700 | | | | | | 76,323 | | |
Loss from operations
|
| | | | (99,621) | | | | | | (24,828) | | | | | | (25,545) | | |
Interest expense, net
|
| | | | (1,325) | | | | | | (2,497) | | | | | | (2,190) | | |
Other income (expense), net
|
| | | | (21,400) | | | | | | 3,720 | | | | | | (45) | | |
Loss before income taxes
|
| | | | (122,346) | | | | | | (23,605) | | | | | | (27,780) | | |
Provision for income taxes
|
| | | | 115 | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (122,461) | | | | | $ | (23,605) | | | | | $ | (27,780) | | |
Net loss per share attributable to common stockholders – basic and diluted
|
| | | $ | (0.42) | | | | | $ | (0.09) | | | | | $ | (0.12) | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 294,549,146 | | | | | | 261,228,108 | | | | | | 236,040,717 | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
Revenue
|
| | | $ | 230,115 | | | | | $ | 119,872 | | | | | $ | 50,778 | | | | | | 92% | | | | | | 136% | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
Cost of revenue
|
| | | $ | 12,281 | | | | | $ | 5,713 | | | | | $ | 2,112 | | | | | | 115% | | | | | | 171% | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
Research and development
|
| | | $ | 23,225 | | | | | $ | 11,241 | | | | | $ | 7,547 | | | | | | 107% | | | | | | 49% | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
Sales and marketing
|
| | | $ | 251,941 | | | | | $ | 111,370 | | | | | $ | 51,689 | | | | | | 126% | | | | | | 115% | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
General and administrative
|
| | | $ | 42,289 | | | | | $ | 16,376 | | | | | $ | 14,975 | | | | | | 158% | | | | | | 9% | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
Interest expense, net
|
| | | $ | (1,325) | | | | | $ | (2,497) | | | | | $ | (2,190) | | | | | | (47)% | | | | | | 14% | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
Other income (expense), net
|
| | | $ | (21,400) | | | | | $ | 3,720 | | | | | $ | (45) | | | | | | NM | | | | | | NM | | |
| | |
Year Ended December 31,
|
| |
2019 to 2020
% Change |
| |
2018 to 2019
% Change |
| |||||||||||||||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||
Provision for income taxes
|
| | | $ | 115 | | | | | $ | — | | | | | $ | — | | | | | | NM | | | | | | NM | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net loss
|
| | | $ | (122,461) | | | | | $ | (23,605) | | | | | $ | (27,780) | | |
Interest expense, net
|
| | | | 1,325 | | | | | | 2,497 | | | | | | 2,190 | | |
Stock-based compensation
|
| | | | 23,757 | | | | | | 1,237 | | | | | | 6,680 | | |
Provision for income taxes
|
| | | | 115 | | | | | | — | | | | | | — | | |
Depreciation and amortization
|
| | | | 1,609 | | | | | | 711 | | | | | | 404 | | |
Other non-operating costs (income)(1)(2)
|
| | | | 21,400 | | | | | | (3,648) | | | | | | 46 | | |
Impairment charge(3)
|
| | | | 3,395 | | | | | | — | | | | | | — | | |
One-time transaction related expenses(4)
|
| | | | 4,747 | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | (66,113) | | | | | $ | (22,808) | | | | | $ | (18,460) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net cash used in operating activities
|
| | | $ | (56,232) | | | | | $ | (21,937) | | | | | $ | (16,948) | | |
Net cash used in investing activities
|
| | | | (3,246) | | | | | | (3,223) | | | | | | (867) | | |
Net cash provided by financing activities
|
| | | | 296,578 | | | | | | 31,168 | | | | | | 33,330 | | |
| | |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than
5 Years |
| |||||||||||||||
Operating lease obligations
|
| | | $ | 26,141 | | | | | $ | 4,528 | | | | | $ | 4,866 | | | | | $ | 4,952 | | | | | $ | 11,795 | | |
| | |
Securities Beneficially Owned Before this Offering
|
| |||||||||||||||||||||||||||
Name
and Address of Beneficial Owner |
| |
Number of
Shares of Class A Common Stock |
| |
%
|
| |
Number of
Shares of Class B Common Stock |
| |
%
|
| |
% of Total
Voting Power** |
| |||||||||||||||
Directors and Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Andrew Paradise(1)(2)
|
| | | | — | | | | | | — | | | | | | 84,028,622 | | | | | | 98.7% | | | | | | 84.3% | | |
Casey Chafkin(1)
|
| | | | 16,671,813 | | | | | | 4.5% | | | | | | — | | | | | | — | | | | | | — | | |
Christopher S. Gaffney(1)(3)
|
| | | | 14,368,562 | | | | | | 3.9% | | | | | | — | | | | | | — | | | | | | * | | |
Harry Sloan(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jerry Bruckheimer(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Kent Wakeford(1)
|
| | | | 1,682,655 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Vandana Mehta-Krantz(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Miriam Aguirre(1)
|
| | | | 2,748,256 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Scott Henry(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All Directors and Executive
Officers as a Group (Nine Individuals) |
| | | | 35,471,286 | | | | | | 9.6% | | | | | | 84,028,622 | | | | | | 98.7% | | | | | | 86.2% | | |
Five Percent Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Atlas Venture Fund, IX L.P.(4)
|
| | | | 23,717,847 | | | | | | 6.4% | | | | | | — | | | | | | — | | | | | | 1.3% | | |
Entities Affiliated with WestCap Management LLC(5)
|
| | | | 22,148,502 | | | | | | 6.0% | | | | | | — | | | | | | — | | | | | | 1.2% | | |
Bonderman Family Limited Partnership(6)
|
| | | | 21,832,022 | | | | | | 5.9% | | | | | | — | | | | | | — | | | | | | 1.2% | | |
Morgan Stanley Investment Management Inc.(7)
|
| | | | 20,522,078 | | | | | | 5.5% | | | | | | — | | | | | | — | | | | | | 1.1% | | |
| | |
Number of Shares
Beneficially Owned Before Sale of All Shares of Class A Common Stock Offered Hereby |
| |
Number of Shares
Sold or to be Sold in the Offering |
| |
Number of Shares
Beneficially Owned After Sale of All Shares of Class A Common Stock Offered Hereby |
| |||||||||||||||||||||
Name and Address of Beneficial Owner
|
| |
Number
|
| |
%(1)
|
| |
Number
|
| |
Number
|
| |
%
|
| |||||||||||||||
Darlington Partners(2)
|
| | | | 1,014,817 | | | | | | * | | | | | | 850,000 | | | | | | 164,817 | | | | | | * | | |
Franklin Templeton Investment Funds — Franklin
Technology Fund(3) |
| | | | 3,200,000 | | | | | | * | | | | | | 2,500,000 | | | | | | 700,000 | | | | | | * | | |
Funds associated with Fidelity(4)(8)
|
| | | | 4,500,000 | | | | | | * | | | | | | 4,500,000 | | | | | | — | | | | | | — | | |
Neuberger Berman Group LLC and certain affiliates(5)(8)
|
| | | | 650,000 | | | | | | * | | | | | | 650,000 | | | | | | — | | | | | | — | | |
LH Capital Markets, LLC(6)(8)
|
| | | | 3,650,000 | | | | | | * | | | | | | 2,000,000 | | | | | | 1,650,000 | | | | | | * | | |
Wellington Management(7)(8)
|
| | | | 5,353,052 | | | | | | * | | | | | | 5,353,052 | | | | | | — | | | | | | — | | |
Name
|
| |
Age
|
| |
Position
|
|
Andrew Paradise | | | 38 | | |
Chief Executive Officer and Chairman of the Board
|
|
Casey Chafkin | | | 36 | | | Chief Revenue Officer and Director | |
Christopher S. Gaffney | | | 58 | | | Director | |
Harry E. Sloan | | | 71 | | | Director | |
Jerry Bruckheimer | | | 77 | | | Director | |
Kent Wakeford | | | 52 | | | Director | |
Miriam Aguirre | | | 43 | | | Chief Technology Officer | |
Scott Henry | | | 56 | | | Chief Financial Officer | |
Vandana Mehta-Krantz | | | 53 | | | Director | |
Name and Position
|
| |
Year
|
| |
Salary ($)(1)
|
| |
Bonus ($)(2)
|
| |
Option Awards ($)(3)
|
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
All Other
Compensation ($)(4) |
| |
Total $
|
| |||||||||||||||||||||
Andrew Paradise
|
| | | | 2020 | | | | | $ | 400,000 | | | | | $ | 3,935,000 | | | | | $ | 98,986,052 | | | | | $ | — | | | | | $ | — | | | | | $ | 103,321,052 | | |
Chief Executive Officer
|
| | | | 2019 | | | | | $ | 325,000 | | | | |
$
|
—
|
| | | | $ | 2,651,050 | | | | | $ | 200,000 | | | | | $ | 4,006 | | | | | $ | 3,180,056 | | |
Casey Chafkin
|
| | | | 2020 | | | | | $ | 300,000 | | | | | $ | 487,500 | | | | | $ | 21,408,998 | | | | | $ | — | | | | | $ | 1,409 | | | | | $ | 22,197,907 | | |
Chief Revenue Officer
|
| | | | 2019 | | | | | $ | 275,000 | | | | |
$
|
—
|
| | | | $ | — | | | | | $ | 100,000 | | | | | $ | 4,006 | | | | | $ | 379,006 | | |
Scott Henry(5)
|
| | | | 2020 | | | | | $ | 219,847 | | | | | $ | 200,000 | | | | | $ | 23,450,208 | | | | | $ | — | | | | | $ | — | | | | | $ | 23,870,055 | | |
Chief Financial Officer
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name
|
| |
2020 Base Salary ($)
(Effective January 1, 2020) |
| |||
Andrew Paradise
|
| | | $ | 400,000 | | |
Casey Chafkin
|
| | | $ | 300,000 | | |
Scott Henry(1)
|
| | | $ | 400,000 | | |
Name(1)
|
| |
Grant Date(2)
|
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#)(3) |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)(4) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock That Have Not Vested (#)(5) |
| |
Market Value
of Shares or Units of Stock That Have Not Vested ($)(6) |
| ||||||||||||||||||||||||
Andrew Paradise
|
| | | | 7/26/2017 | | | | | | 6,585,457 | | | | | | 439,031 | | | | | | — | | | | | $ | 0.051 | | | | | | 1/31/2027 | | | | | | — | | | | | $ | — | | |
| | | | | 4/29/2019 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,495,086 | | | | | $ | 29,901,720 | | |
| | | | | 4/15/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,921,314 | | | | | $ | 198,426,280 | | |
| | | | | 12/16/2020 | | | | | | — | | | | | | — | | | | | | 9,960,000 | | | | | $ | 17.68 | | | | | | 12/16/2030 | | | | | | — | | | | | $ | — | | |
Casey Chafkin
|
| | | | 7/26/2017 | | | | | | 1,646,360 | | | | | | 109,758 | | | | | | — | | | | | $ | 0.051 | | | | | | 1/31/2027 | | | | | | — | | | | | $ | — | | |
| | | | | 11/5/2018 | | | | | | 577,621 | | | | | | 449,263 | | | | | | — | | | | | $ | 0.39 | | | | | | 11/4/2028 | | | | | | — | | | | | $ | — | | |
| | | | | 4/15/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 1.15 | | | | | | 4/15/2030 | | | | | | 1,852,695 | | | | | $ | 37,053,900 | | |
| | | | | 12/16/2020 | | | | | | — | | | | | | — | | | | | | 2,040,000 | | | | | $ | 17.68 | | | | | | 12/16/2030 | | | | | | — | | | | | $ | — | | |
Scott Henry
|
| | | | 8/12/2020 | | | | | | — | | | | | | 2,757,886 | | | | | | — | | | | | $ | 1.33 | | | | | | 8/11/2030 | | | | | | — | | | | | $ | — | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
Stock Awards
|
| |
Option Awards
|
| |
All Other
Compensation ($) |
| |
Total $
|
| |||||||||||||||
Kent Wakeford
|
| | | | — | | | | | $ | 614,981 | | | | | | — | | | | | | — | | | | | $ | 614,981 | | |
Drew Tarlow(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | — | | |
Ryan Moore(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | — | | |
Laurence Tosi(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | — | | |
Vandana Mehta-Krantz(3)
|
| | | | — | | | | | $ | 614,981 | | | | | | — | | | | | | — | | | | | $ | 614,981 | | |
Harry E. Sloan
|
| | | | — | | | | | $ | 614,981 | | | | | | — | | | | | | — | | | | | $ | 614,981 | | |
Stockholder
|
| |
Shares of Series E
Preferred Stock |
| |
Total Purchase Price
|
| ||||||
Andrew Paradise
|
| | | | 6,497 | | | | | $ | 209,255.38 | | |
Bonderman Family Limited Partnership
|
| | | | 62,097 | | | | | $ | 2,000,020.18 | | |
Accomplice Skillz 2020 Investors, LLC
|
| | | | 93,145 | | | | | $ | 3,000,014.16 | | |
Liberty Global Ventures Group Ltd.
|
| | | | 119,295 | | | | | $ | 3,842,253.36 | | |
Telstra Ventures Fund II, L.P.
|
| | | | 130,137 | | | | | $ | 4,191,452.50 | | |
WestCap Skillz 2020, LLC
|
| | | | 1,295,958 | | | | | $ | 41,740,215.26 | | |
| | |
Page
|
| |||
| | | | F-2 | | | |
Consolidated Financial Statements | | | | | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-7 | | | |
| | | | F-8 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets:
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 262,728 | | | | | $ | 25,628 | | |
Prepaid expenses and other current assets
|
| | | | 10,491 | | | | | | 9,464 | | |
Total current assets
|
| | | | 273,219 | | | | | | 35,092 | | |
Property and equipment, net
|
| | | | 5,292 | | | | | | 3,648 | | |
Other long-term assets
|
| | | | 3,910 | | | | | | 116 | | |
Total assets
|
| | | $ | 282,421 | | | | | $ | 38,856 | | |
Liabilities and stockholders’ equity | | | | ||||||||||
Current liabilities:
|
| | | | | | | | | | | | |
Accounts payable
|
| | | $ | 22,039 | | | | | $ | 2,944 | | |
Accrued professional fees
|
| | | | 5,699 | | | | | | — | | |
Other current liabilities
|
| | | | 19,618 | | | | | | 7,537 | | |
Total current liabilities
|
| | | | 47,356 | | | | | | 10,481 | | |
Long-term debt, non-current
|
| | | | — | | | | | | 9,628 | | |
Other long-term liabilities
|
| | | | 46 | | | | | | 82 | | |
Total liabilities
|
| | | | 47,402 | | | | | | 20,191 | | |
Commitments and contingencies (Note 7)
|
| | | | | | | | | | | | |
Stockholders’ equity:(1)
|
| | | | | | | | | | | | |
Preferred stock $0.0001 par value; 10 million shares authorized – 0 issued and outstanding as of December 31, 2020 and 2019
|
| | | | — | | | | | | — | | |
Common stock $0.0001 par value; 625 million shares authorized; Class A
common stock—500 million shares authorized; 292 million and 212 million shares issued and outstanding as of December 31, 2020 and 2019, respectively; Class B common stock—125 million shares authorized; 78 million and 74 million shares issued and outstanding as of December 31, 2020 and 2019, respectively |
| | | | 37 | | | | | | 29 | | |
Additional paid-in capital
|
| | | | 450,248 | | | | | | 108,892 | | |
Accumulated deficit
|
| | | | (215,266) | | | | | | (90,256) | | |
Total stockholders’ equity
|
| | | | 235,019 | | | | | | 18,665 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 282,421 | | | | | $ | 38,856 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Revenue
|
| | | $ | 230,115 | | | | | $ | 119,872 | | | | | $ | 50,778 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 12,281 | | | | | | 5,713 | | | | | | 2,112 | | |
Research and development
|
| | | | 23,225 | | | | | | 11,241 | | | | | | 7,547 | | |
Sales and marketing
|
| | | | 251,941 | | | | | | 111,370 | | | | | | 51,689 | | |
General and administrative
|
| | | | 42,289 | | | | | | 16,376 | | | | | | 14,975 | | |
Total costs and expenses
|
| | | | 329,736 | | | | | | 144,700 | | | | | | 76,323 | | |
Loss from operations
|
| | | | (99,621) | | | | | | (24,828) | | | | | | (25,545) | | |
Interest expense, net
|
| | | | (1,325) | | | | | | (2,497) | | | | | | (2,190) | | |
Other income (expense), net
|
| | | | (21,400) | | | | | | 3,720 | | | | | | (45) | | |
Loss before income taxes
|
| | | | (122,346) | | | | | | (23,605) | | | | | | (27,780) | | |
Provision for income taxes
|
| | | | 115 | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (122,461) | | | | | $ | (23,605) | | | | | $ | (27,780) | | |
Net loss per share attributable to common stockholders – basic and diluted(1)
|
| | | $ | (0.42) | | | | | $ | (0.09) | | | | | $ | (0.12) | | |
Weighted average common shares outstanding – basic and diluted(1)
|
| | | | 294,549,146 | | | | | | 261,228,108 | | | | | | 236,040,717 | | |
| | |
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, 2017
|
| | | | 4,404,840 | | | | | $ | 17,040 | | | | | | | 13,621,802 | | | | | $ | 25,560 | | | | | | 126,464,480 | | | | | $ | 1 | | | | | $ | 36 | | | | | $ | (38,871) | | | | | $ | (13,274) | | | | ||
Retroactive application of recapitalization
|
| | | | (4,404,840) | | | | | | (17,040) | | | | | | | (13,621,802) | | | | | | (25,560) | | | | | | 102,694,176 | | | | | | 22 | | | | | | 42,578 | | | | | | — | | | | | | 17,040 | | | | ||
Balance at December 31, 2017, after effect of reverse recapitalization (Note 3)
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | |
|
—
|
| | | | | 229,158,656 | | | | | | 23 | | | | | | 42,614 | | | | | | (38,871) | | | | | | 3,766 | | | | ||
Issuance of Old Skillz redeemable convertible
Series D preferred stock |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 16,705,320 | | | | | | 2 | | | | | | 18,216 | | | | | | — | | | | | | 18,218 | | | | ||
Issuance of Old Skillz common stock upon exercise of stock options
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 4,036,200 | | | | | | — | | | | | | 192 | | | | | | — | | | | | | 192 | | | | ||
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,680 | | | | | | — | | | | | | 6,680 | | | | ||
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (27,780) | | | | | | (27,780) | | | | ||
Balance at December 31, 2018
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 249,900,176 | | | | | | 25 | | | | | | 67,702 | | | | | | (66,651) | | | | | | 1,076 | | | | ||
Issuance of Old Skillz redeemable convertible
Series D and Series D-1 preferred stock |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 23,718,385 | | | | | | 3 | | | | | | 39,757 | | | | | | — | | | | | | 39,760 | | | | ||
Issuance of Old Skillz common stock upon exercise of stock options
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 3,485,844 | | | | | | — | | | | | | 197 | | | | | | — | | | | | | 197 | | | | ||
Issuance of Old Skillz common stock upon early exercise of stock options with promissory note
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 8,970,518 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,237 | | | | | | — | | | | | | 1,237 | | | | ||
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (23,605) | | | | | | (23,605) | | | | ||
Balance at December 31, 2019
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 286,074,923 | | | | | | 29 | | | | | | 108,892 | | | | | | (90,256) | | | | | | 18,665 | | | | ||
Issuance of Old Skillz redeemable convertible Series E preferred stock
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 17,834,808 | | | | | | 2 | | | | | | 98,303 | | | | | | — | | | | | | 98,305 | | | |
| | |
Redeemable convertible
preferred stock |
| | |
Preferred stock
|
| |
Common stock
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Total
stockholders’ equity (deficit) |
| | ||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| | ||||||||||||||||||||||||||||||||||||||
Issuance of Old Skillz common stock upon exercise of stock options
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 7,642,110 | | | | | | 1 | | | | | | 1,242 | | | | | | — | | | | | | 1,243 | | | | ||
Conversion of Old Skillz preferred stock warrants
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 654 | | | | | | — | | | | | | 654 | | | | ||
Issuance of Old Skillz common stock upon early exercise of stock options with promissory note
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 12,700,358 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | |
Surrender of Old Skillz common stock upon
net settlement of promissory notes |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (1,037,535) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Taxes paid related to net share settlement of Old Skillz equity awards
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (1,102,746) | | | | | | — | | | | | | (13,404) | | | | | | — | | | | | | (13,404) | | | | ||
Issuance of Old Skillz convertible Series A, Series A-1 and Series B preferred stock upon exercise of warrants
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2,860,974 | | | | | | 1 | | | | | | 1 | | | | | | — | | | | | | 2 | | | | ||
Issuance of Old Skillz common stock upon exercise of warrants
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 726,063 | | | | | | — | | | | | | 382 | | | | | | — | | | | | | 382 | | | | ||
Repurchase of Old Skillz common stock
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (468,270) | | | | | | — | | | | | | — | | | | | | (1,339) | | | | | | (1,339) | | | | ||
Repurchase of Old Skillz preferred stock
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (13,739) | | | | | | (1) | | | | | | — | | | | | | (1,210) | | | | | | (1,211) | | | | | |
Net cash contributions from Business Combination and PIPE financing
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 44,580,578 | | | | | | 4 | | | | | | 230,422 | | | | | | — | | | | | | 230,426 | | | | ||
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,757 | | | | | | — | | | | | | 23,757 | | | | ||
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (122,461) | | | | | | (122,461) | | | | ||
Balance at December 31, 2020
|
| | | | — | | | | | $ | — | | | | | | | — | | | | | $ | — | | | | | | 369,797,524 | | | | | $ | 37 | | | | | $ | 450,248 | | | | | $ | (215,266) | | | | | $ | 235,019 | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Operating Activities | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (122,461) | | | | | $ | (23,605) | | | | | $ | (27,780) | | |
Adjustment to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 1,609 | | | | | | 711 | | | | | | 404 | | |
Stock-based compensation
|
| | | | 23,757 | | | | | | 1,237 | | | | | | 6,680 | | |
Accretion of unamortized discount and amortization of issuance costs
|
| | | | 558 | | | | | | 2,139 | | | | | | 1,287 | | |
Fair value adjustment of derivatives
|
| | | | 21,463 | | | | | | (3,649) | | | | | | 45 | | |
Impairment charges
|
| | | | 3,573 | | | | | | — | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | |
Prepaid expenses and other assets
|
| | | | (7,505) | | | | | | (4,307) | | | | | | (992) | | |
Accounts payable
|
| | | | 10,729 | | | | | | (54) | | | | | | 1,851 | | |
Other liabilities
|
| | | | 12,045 | | | | | | 5,591 | | | | | | 1,557 | | |
Net cash used in operating activities
|
| | | | (56,232) | | | | | | (21,937) | | | | | | (16,948) | | |
Investing Activities | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment, including internal-use software
|
| | | | (3,246) | | | | | | (3,223) | | | | | | (867) | | |
Net cash used in investing activities
|
| | | | (3,246) | | | | | | (3,223) | | | | | | (867) | | |
Financing Activities | | | | | | | | | | | | | | | | | | | |
Borrowings under debt agreements, net of issuance costs
|
| | | | — | | | | | | 9,563 | | | | | | 19,920 | | |
Payments for issuance costs
|
| | | | (201) | | | | | | — | | | | | | — | | |
Payments under debt agreements
|
| | | | (10,000) | | | | | | (3,500) | | | | | | (5,000) | | |
Net Business Combination and Private Placement Financing
|
| | | | 246,484 | | | | | | — | | | | | | — | | |
Payments made toward offering costs
|
| | | | (1,993) | | | | | | — | | | | | | — | | |
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs
|
| | | | 76,617 | | | | | | 24,908 | | | | | | 18,218 | | |
Proceeds from exercise of stock options and issuance of common stock
|
| | | | 1,243 | | | | | | 197 | | | | | | 192 | | |
Proceeds from exercise of common stock warrants
|
| | | | 382 | | | | | | — | | | | | | — | | |
Taxes paid related to net share settlement of equity awards
|
| | | | (13,404) | | | | | | — | | | | | | — | | |
Payments made to repurchase common stock
|
| | | | (1,339) | | | | | | — | | | | | | — | | |
Payments for redemption of preferred stock
|
| | | | (1,211) | | | | | | — | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 296,578 | | | | | | 31,168 | | | | | | 33,330 | | |
Net change in cash, cash equivalents and restricted cash
|
| | | | 237,100 | | | | | | 6,008 | | | | | | 15,515 | | |
Cash, cash equivalents and restricted cash – beginning of year
|
| | | | 28,548 | | | | | | 22,540 | | | | | | 7,025 | | |
Cash, cash equivalents and restricted cash – end of year
|
| | | $ | 265,648 | | | | | $ | 28,548 | | | | | $ | 22,540 | | |
Supplemental cash flow data: | | | | | | | | | | | | | | | | | | | |
Cash paid during the period for:
|
| | | | | | | | | | | | | | | | | | |
Interest
|
| | | $ | 815 | | | | | $ | 269 | | | | | $ | 196 | | |
Noncash investing and financing activities:
|
| | | | | | | | | | | | | | | | | | |
Carrying value of long-term debt and accrued interest converted to redeemable convertible preferred stock
|
| | | $ | — | | | | | $ | 14,852 | | | | | $ | — | | |
Settlement of the Redeemable Convertible Series E preferred stock forward contract liability
|
| | | $ | 21,688 | | | | | $ | — | | | | | $ | — | | |
Deferred offering costs in accounts payable and accrued liabilities
|
| | | $ | 14,065 | | | | | $ | — | | | | | $ | — | | |
Payment of promissory notes through surrender of shares
|
| | | $ | 18,673 | | | | | $ | — | | | | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash and cash equivalents
|
| | | $ | 262,728 | | | | | $ | 25,628 | | |
Restricted Cash included in other long-term assets and other current assets as of December 31, 2020 and 2019, respectively
|
| | | | 2,920 | | | | | | 2,920 | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 265,648 | | | | | $ | 28,548 | | |
Property and Equipment
|
| |
Useful Life
|
|
Computer equipment and servers
|
| |
3 years
|
|
Capitalized internal-use software
|
| |
3 years
|
|
Office equipment and other
|
| |
5 years
|
|
Leased equipment and leasehold improvements
|
| |
Lesser of estimated useful life or
remaining lease term |
|
| | |
Recapitalization
|
| |||
Cash – FEAC trust and cash, net of redemptions
|
| | | $ | 689,979 | | |
Cash – Private Placement Financing
|
| | | | 158,531 | | |
Non-cash net assets assumed from FEAC
|
| | | | — | | |
Less: cash consideration paid to Old Skillz stockholders
|
| | | | (566,204) | | |
Less: transaction costs and advisory fees
|
| | | | (35,822) | | |
Net Business Combination and Private Placement Financing
|
| | | | 246,484 | | |
Less: non-cash net assets assumed from FEAC
|
| | | | — | | |
Less: accrued transaction costs and advisor fees
|
| | | | (16,058) | | |
Net cash contributions from Business Combination and PIPE Financing
|
| | | $ | 230,426 | | |
| | |
Recapitalization
|
| |||
Common stock, outstanding prior to Business Combination
|
| | | | 69,000,000 | | |
Less: redemption of FEAC shares
|
| | | | (2,140) | | |
Common stock of FEAC
|
| | | | 68,997,860 | | |
FEAC sponsor shares
|
| | | | 6,350,200 | | |
Earnout shares
|
| | | | 10,000,000 | | |
Shares issued in Private Placement Financing
|
| | | | 15,853,052 | | |
Business Combination and Private Placement Financing shares – Class A common stock
|
| | | | 101,201,112 | | |
Old Skillz shares converted to New Skillz Class A common stock(1)
|
| | | | 191,932,861 | | |
Old Skillz shares converted to New Skillz Class B common stock(2)
|
| | | | 76,663,551 | | |
Total shares of common stock immediately after Business Combination
|
| | | | 369,797,524 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Credit card processing reserve
|
| | | $ | 5,854 | | | | | $ | 2,650 | | |
Prepaid expenses
|
| | | | 3,772 | | | | | | 2,460 | | |
Other current assets
|
| | | | 865 | | | | | | 4,354 | | |
Prepaid expenses and other current assets
|
| | | $ | 10,491 | | | | | $ | 9,464 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Capitalized internal-use software
|
| | | $ | 6,167 | | | | | $ | 3,554 | | |
Computer equipment and servers
|
| | | | 631 | | | | | | 458 | | |
Furniture and fixtures
|
| | | | 184 | | | | | | 238 | | |
Leasehold improvements
|
| | | | 114 | | | | | | 143 | | |
Construction in progress
|
| | | | 1,037 | | | | | | 519 | | |
Total property and equipment
|
| | | | 8,133 | | | | | | 4,912 | | |
Accumulated depreciation and amortization
|
| | | | (2,841) | | | | | | (1,264) | | |
Property and equipment, net
|
| | | $ | 5,292 | | | | | $ | 3,648 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Accrued sales and marketing expenses
|
| | | $ | 7,204 | | | | | $ | 1,630 | | |
Accrued compensation
|
| | | | 3,825 | | | | | | 2,531 | | |
End-user liability, net
|
| | | | 2,789 | | | | | | 1,418 | | |
Accrued developer revenue share
|
| | | | 907 | | | | | | 540 | | |
Other accrued expenses
|
| | | | 4,893 | | | | | | 1,418 | | |
Other current liabilities
|
| | | $ | 19,618 | | | | | $ | 7,537 | | |
| | |
Fair Value as of
September 10, 2020 |
| |
Valuation
Technique |
| |
Unobservable
Input Description |
| |
Input
|
| ||||||
Redeemable Convertible Series E preferred stock forward contract liability
|
| | | $ | 21,688 | | | |
Discounted cash flow
|
| |
Fair value of
|
| | | $ | 9.17 | | |
| | | | | | | | | | | |
Redeemable
Convertible Series E preferred stock |
| | | | | | |
| | |
Series E forward
contract liability |
| |||
Fair value as of December 31, 2019
|
| | | $ | — | | |
Issuance of the Redeemable convertible Series E preferred stock forward contract liability
|
| | | | — | | |
Change in fair value
|
| | | | 21,688 | | |
Settlement of the Redeemable convertible Series E preferred stock forward contract liability
|
| | | | (21,688) | | |
Fair value as of December 31, 2020
|
| | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
2019 Mezzanine Term Loan
|
| | |
$
|
—
|
| | | | $ | 10,000 | | |
Unamortized debt discount
|
| | |
|
—
|
| | | | | (372) | | |
Net carrying amount
|
| | |
$
|
—
|
| | | | $ | 9,628 | | |
| | |
Operating
Lease Commitments |
| |||
Year ended December 31, | | | | | | | |
2021
|
| | | $ | 4,528 | | |
2022
|
| | | | 2,498 | | |
2023
|
| | | | 2,368 | | |
2024
|
| | | | 2,439 | | |
2025
|
| | | | 2,513 | | |
Thereafter
|
| | | | 11,795 | | |
Future minimum lease payments
|
| | | $ | 26,141 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Research and development
|
| | | $ | 6,110 | | | | | $ | 181 | | | | | $ | 361 | | |
Sales and marketing
|
| | | | 4,505 | | | | | | 111 | | | | | | 114 | | |
General and administrative
|
| | | | 13,142 | | | | | | 945 | | | | | | 6,205 | | |
Total stock-based compensation expense
|
| | | $ | 23,757 | | | | | $ | 1,237 | | | | | $ | 6,680 | | |
| | |
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, 2019
|
| | | | 3,855,385 | | | | | | 38,794,307 | | | | | $ | 0.14 | | | | | | 7.67 | | | | | $ | 13,056 | | | | | ||||||||||
Recapitalization Impact
|
| | | | (975,027) | | | | | | (9,811,081) | | | | | | 0.05 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2019
|
| | | | 2,880,358 | | | | | | 28,983,226 | | | | | $ | 0.19 | | | | | | 7.67 | | | | | $ | 13,056 | | | | | | — | | | | | $ | — | | |
Additional shares authorized
|
| | | | 62,903,028 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options and restricted stock units granted
|
| | | | (36,074,010) | | | | | | 35,732,754 | | | | | | 6.70 | | | | | | | | | | | | | | | | | | 341,256 | | | | | | 17.68 | | |
Options exercised(1) and restricted stock units released
|
| | | | — | | | | | | (20,138,817) | | | | | | 0.78 | | | | | | | | | | | | | | | | | | — | | | | | | — | | |
Options and restricted stock units canceled
|
| | | | 5,791,227 | | | | | | (6,172,670) | | | | | | 0.51 | | | | | | | | | | | | | | | | | | — | | | | | | — | | |
Balance at December 31, 2020
|
| | | | 35,500,603 | | | | | | 38,404,493 | | | | | | 5.89 | | | | | | 8.27 | | | | | | 542,074 | | | | | | 341,256 | | | | | $ | 17.68 | | |
Exercisable at December 31, 2019
|
| | | | | | | | | | 15,225,162 | | | | | $ | 0.08 | | | | | | 6.85 | | | | | $ | 8,492 | | | | | | | | | | | | | | |
Exercisable at December 31, 2020
|
| | | | | | | | | | 14,248,234 | | | | | $ | 0.18 | | | | | | 6.45 | | | | | $ | 282,364 | | | | | | | | | | | | | | |
Unvested at December 31, 2019
|
| | | | | | | | | | 13,758,064 | | | | | $ | 0.31 | | | | | | 8.58 | | | | | $ | 4,564 | | | | | | | | | | | | | | |
Unvested at December 31, 2020
|
| | | | | | | | | | 24,156,259 | | | | | $ | 9.25 | | | | | | 9.34 | | | | | $ | 259,710 | | | | | | | | | | | | | | |
| | |
2020
|
| |
2019
|
| |
2018
|
|
Expected volatility
|
| |
45.00% – 50.00%
|
| |
47.17% – 55.47%
|
| |
47.69% – 49.17%
|
|
Risk-free interest rate
|
| |
0.27% – 1.44%
|
| |
1.57% – 2.64%
|
| |
2.60% – 3.06%
|
|
Expected term (in years)
|
| |
4.14 – 6.25
|
| |
5.00 – 6.86
|
| |
5.49 – 6.13
|
|
Expected dividend yield
|
| |
—
|
| |
—
|
| |
—
|
|
Weighted average estimated fair value of stock options granted during the year
|
| |
$5.06
|
| |
$0.21
|
| |
$0.11
|
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State
|
| | | | 115 | | | | | | — | | | | | | — | | |
Total Current
|
| | | | 115 | | | | | | — | | | | |
|
—
|
| |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | | | | | — | | |
State
|
| | | | — | | | | | | — | | | | | | — | | |
Total Deferred
|
| | | | — | | | | | | — | | | | | | — | | |
Provision for income taxes
|
| | | $ | 115 | | | | | $ | — | | | | | $ | — | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
U.S. Federal provision (benefit)
|
| | | | | | | | | | | | | | | | | | |
At statutory rate
|
| | | $ | (25,693) | | | | | $ | (5,956) | | | | | $ | (5,608) | | |
State taxes
|
| | | | 90 | | | | | | — | | | | | | — | | |
Valuation allowance
|
| | | | 26,245 | | | | | | 6,320 | | | | | | 5,671 | | |
Stock based compensation
|
| | | | (7,257) | | | | | | (182) | | | | | | (141) | | |
Permanent differences
|
| | | | 6,730 | | | | | | (182) | | | | | | 78 | | |
Total
|
| | | $ | 115 | | | | |
$
|
—
|
| | | |
$
|
—
|
| |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards
|
| | | $ | 47,864 | | | | | $ | 21,309 | | |
Stock-based compensation
|
| | | | 2,492 | | | | | | 1,646 | | |
Reserves and accruals
|
| | | | 1,239 | | | | | | 513 | | |
Other
|
| | | | 291 | | | | | | 2 | | |
Total deferred tax assets
|
| | | $ | 51,886 | | | | | $ | 23,470 | | |
Less: valuation allowance
|
| | | | (51,859) | | | | | | (23,455) | | |
Deferred tax assets, net of valuation allowance
|
| | | $ | 27 | | | | | $ | 15 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Fixed assets
|
| | | | (27) | | | | | | (15) | | |
Total deferred tax liabilities
|
| | | $ | (27) | | | | | $ | (15) | | |
Net deferred tax assets
|
| | | $ | — | | | | |
$
|
—
|
| |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net loss – Basic and diluted
|
| | | $ | (122,461) | | | | | $ | (23,605) | | | | | $ | (27,780) | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding – Basic and diluted
|
| | | | 294,549,146 | | | | | | 261,228,108 | | | | | | 236,040,717 | | |
Net loss per share attributable to common stockholders –Basic and diluted
|
| | | $ | (0.42) | | | | | $ | (0.09) | | | | | $ | (0.12) | | |
| | |
Number of Securities
Outstanding at December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Convertible promissory notes
|
| | | | — | | | | | | — | | | | | | 12,099,120 | | |
Common and preferred stock warrants
|
| | | | 22,314,778 | | | | | | 3,635,180 | | | | | | 3,087,307 | | |
Common stock options
|
| | | | 51,735,883 | | | | | | 37,206,199 | | | | | | 30,911,188 | | |
Restricted stock units
|
| | | | 341,256 | | | | |
|
—
|
| | | |
|
—
|
| |
Earnout shares
|
| | | | 10,000,000 | | | | | | — | | | | | | — | | |
Total
|
| | | | 84,391,917 | | | | | | 40,841,379 | | | | | | 46,097,615 | | |
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