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Balance Sheet Components
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Note Receivable
Note receivable included in other long-term assets on the consolidated balance sheets consisted of the following as of December 31, 2024 and 2023:
December 31,
20242023
Note receivable$— $2,000 

On July 7, 2023, the Company entered into a Loan and Security Agreement (together, the “Credit Agreement”) whereby it would lend approximately $2.0 million to Big Run Studio (“Big Run”) at a designated rate of 11.5%, with interest-only for the first six months being paid, at Big Run’s option each month, (1) in cash or (2) in-kind and compounded monthly to the principal and maturing on June 1, 2025. The interest-only period may be extended in six month increments upon mutual written agreement between Big Run and Skillz. The credit facility was perfected by way of a Uniform Commercial Code-1 statement whereby the Company is provided first-order secured rights in the event of default by Big Run. On April 12, 2024, the Company and Big Run Studio entered into a Side Letter Agreement providing that a portion of the AviaGames settlement funds allocated to Big Run Studio be utilized to repay the outstanding principal amount and accrued interest under the Loan and Security Agreement. On May 3, 2024, Big Run Studio repaid all of the outstanding principal amount and accrued interest under the Loan and Security Agreement. For the years ended December 31, 2024 and 2023, the Company recognized $0.1 million and $0.1 million of interest income related to this Credit Agreement, respectively.
Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of December 31, 2024 and 2023:

December 31,
20242023
Credit card processing reserve$1,000 $1,000 
Prepaid expenses5,949 4,364 
Other current assets10,393 1,357 
Prepaid expenses and other current assets$17,342 $6,721 

Property and Equipment, net

Property and equipment, net consisted of the following as of December 31, 2024 and 2023:

December 31,
20242023
Land$980 $980 
Building12,590 10,541 
Capitalized internal-use software9,128 9,113 
Computer equipment and servers1,797 1,410 
Furniture and fixtures363 278 
Leasehold improvements122 117 
Construction in progress2,507 1,745 
Total property and equipment27,487 24,184 
Accumulated depreciation and amortization(11,205)(9,635)
Property and equipment, net$16,282 $14,549 

Property and equipment, net by geography was as follows:

Year Ended December 31,
20242023
United States$15,909 $14,186 
Other countries373 363 
Total$16,282 $14,549 


Depreciation and amortization expense related to property and equipment was $1.7 million and $2.0 million in the years ended December 31, 2024 and 2023, respectively.

Non-marketable securities
Non-marketable equity securities are investments in privately held companies without readily determinable fair values. We have accounted for these investments using the measurement alternative. Under the measurement alternative, the equity investment is initially recorded as its allocated cost, but the carrying value may be adjusted through earnings upon an impairment or when there is an observable price change involving the same or a similar investment with the same issuer. There
were no indicators of impairment or the occurrence of observable price changes during the years ended December 31, 2024 and 2023. The carrying value of the Company’s investments without readily determinable fair values was $52.8 million and $52.8 million in December 31, 2024 and 2023, respectively, and was classified within “non-marketable equity securities” in the consolidated balance sheets.
During the year ended December 31, 2023, the Company identified an impairment related to one of its investments in a privately held company. The Company reviewed the private company’s forecast and noted significant concerns about the private company’s ability to continue as a going concern. As a result, an impairment charge of $2.9 million was recorded as of December 31, 2023. The Company did not record any other adjustments to the carrying value of its non-marketable equity securities accounted for under the measurement alternative, and did not recognize any gains or losses related to the sale of non-marketable equity securities in the years ended December 31, 2024 or 2023.

Other Current Liabilities

Other current liabilities consisted of the following as of December 31, 2024 and 2023:
December 31,
20242023
Accrued sales and marketing expenses$1,832 $2,275 
Accrued compensation2,592 2,070 
Accrued publisher fees2,527 3,607 
End-user liability, net6,900 6,590 
Accrued developer revenue share862 1,086 
Short-term finance lease obligations464 831 
Accrued legal expenses15,244 7,949 
Accrued interest expenses554 554 
Indirect tax liabilities14,932 11,206 
Accrued operating expenses7,933 9,715 
Other724 899 
Other current liabilities$54,564 $46,782 

The Company recorded legal expense of $20.3 million and $15.6 million for the years ended December 31, 2024 and 2023, respectively. The increase in legal expense was primarily attributed to the settlement of the litigation with AviaGames. See Note 10, Commitments and Contingencies, for more details.