NEW YORK - Skillz Inc. (NYSE:SKLZ), a mobile gaming platform, has been notified by the New York Stock Exchange (NYSE) that it is not in compliance with the exchange's continued listing requirements due to its failure to timely file its annual report for the fiscal year ended December 31, 2023.
The company disclosed receiving this notice on April 2, 2024, and is now facing potential delisting if it does not remedy the situation.
According to NYSE rules, Skillz has six months from March 15, 2024, to file its overdue annual report with the Securities and Exchange Commission (SEC) to regain compliance. The NYSE may extend this period by an additional six months, contingent on the company's specific circumstances. However, the exchange retains the right to commence delisting procedures at any point during this timeframe.
Skillz previously reported its inability to file the required Form 10-K within the prescribed period due to needing more time to complete year-end procedures, including the audit of its financial statements. Despite significant resources dedicated to completing these procedures, the company was unable to meet the extended deadline of April 1, 2024.
The company has indicated that, based on the information currently available and pending the completion of audit procedures, it does not anticipate any material changes to the financial results from those preliminarily reported on March 14, 2024. Skillz is working to file the Form 10-K as soon as practicable and expects to do so within the six-month period provided by the NYSE.
Skillz is recognized for its platform that enables social competition in mobile games, aiming to create a competitive environment for all players. The delay in filing its annual report has raised concerns among investors and stakeholders regarding the company's governance and internal controls.
The information in this article is based on a press release statement from Skillz Inc.
InvestingPro Insights
In light of the recent notification received by Skillz Inc. regarding its NYSE listing compliance, it's important for investors to consider key financial metrics and insights provided by InvestingPro. The company's market capitalization currently stands at a modest $110.94 million, reflecting the challenges it has faced in the market.
Despite a significant revenue decline of 44.34% in the last twelve months as of Q1 2023, Skillz boasts an impressive gross profit margin of 89.75%. This suggests that while the company's top-line sales have been under pressure, it maintains a strong ability to control the cost of goods sold, which could be a positive sign for its operational efficiency.
Still, the company's aggressive cash burn and the analysts' expectation of a sales decline in the current year, as indicated by InvestingPro Tips, are noteworthy. Skillz's aggressive share buyback program, as highlighted by one of the InvestingPro Tips, may reflect management's confidence in the company's future.
Yet, investors should also consider the tip that analysts do not anticipate the company will be profitable this year, which might temper this optimism.
For those interested in a deeper analysis, InvestingPro offers an additional 13 tips on Skillz Inc., which could provide further insights into the company's financial health and stock performance. To explore these insights and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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