SNAL 10-K

Snail, Inc. (SNAL)

10-K 2026-03-19 For: 2025-12-31

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Added on April 08, 2026

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

Class of Common Stock		Outstanding Shares as of March 16, 2026
Class A Common Stock, par value $0.0001 per share		9,032,061
Class B Common Stock, par value $0.0001 per share		28,748,580

		Page
	Cautionary Statement Regarding Forward-Looking Statements	ii
PART I.
Item 1.	Business	1
Item 1A.	Risk Factors	10
Item 1B.	Unresolved Staff Comments	41
Item 1C.	Cybersecurity Risk Management, Strategy and Governance	41
Item 2.	Properties	42
Item 3.	Legal Proceedings	42
Item 4.	Mine Safety Disclosures	42
PART II.
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	43
Item 6.	[Reserved]	44
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	58
Item 8.	Financial Statements and Supplementary Data	58
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	59
Item 9A.	Controls and Procedures	59
Item 9B.	Other Information	60
Item 9C.	Disclosures Regarding Foreign Jurisdictions That Prevent Inspections	60
PART III.
Item 10.	Directors, Executive Officers and Corporate Governance	61
Item 11.	Executive Compensation	61
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	61
Item 13.	Certain Relationships and Related Transactions, and Director Independence	61
Item 14.	Principal Accountant Fees and Services	61
PART IV.
Item 15.	Exhibits and Financial Statement Schedules	62
Item 16.	Form 10-K Summary	64
Signatures		65

●	our ability to re-establish profitable operations, raise additional capital or renegotiate our debt arrangements;

●	our growth prospects and strategies;

●	launching new games and additional functionality to games that are commercially successful;

●	our expectations regarding significant drivers of our future growth;

●	our ability to retain and increase our player base and develop new video games and enhance our existing games;

●	competition from companies in a number of industries, including other casual game developers and publishers and both large and small, public and private multimedia companies;

●	our ability to attract and retain a qualified management team and other team members while controlling our labor costs;

●	our relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, the Apple App Store, the Google Play Store, My Nintendo Store and the Amazon Appstore;

●	our ability to successfully enter new markets and manage our international expansion;

●	protecting and developing our brand and intellectual property portfolio;

●	costs associated with defending intellectual property infringement and other claims;

●	our future business development, results of operations and financial condition;

●	rulings by courts or other governmental authorities;

●	our failure to meet the continued listing requirements of the Nasdaq Capital Market could result in a de-listing of our common stock;

●	our Share Repurchase Program (as defined below), including expectations regarding the timing and manner of repurchases made under the Share Repurchase Program;

●	our plans to pursue and successfully integrate strategic acquisitions;

●	other risks and uncertainties described in this Annual Report, including those described in Item 1A of Part I, “Risk Factors”; and

●	assumptions underlying any of the foregoing.

	●	Scorched Earth. A desert map with minimum water and extreme weathers. The DLC was released on September 2016.

	●	Aberration. A radiation style expansion pack to explore the mysterious underground world. The DLC was released on December 2017.

	●	Extinction. A mechanical style expansion pack themed to fight against giant titans and save the post-apocalyptic earth. The DLC was released on November 2018.

	●	Genesis 1 & 2. A mission-based gameplay DLC with the ability to explore new worlds and mysterious stories. The DLCs were released in February 2020 and in June 2021, respectively.

	●	We are dependent on the future success of our ARK franchise, and we must continue to publish “hit” titles or sequels to such “hit” titles in order to compete successfully in our industry.

	●	If we do not consistently deliver popular, high-quality content in a timely manner, if we are not successful in meaningfully expanding our existing franchise, or if consumers prefer products from our competitors, our business may be negatively impacted.

	●	We rely on license agreements to publish certain games, including games in our ARK franchise. Failure to renew our existing content licenses on favorable terms or at all or to obtain additional licenses would impair our ability to introduce new games, improvements or enhancements or to continue to offer our current games, which would materially harm our business, results of operations, financial condition and prospects.

	●	We depend on our key management and product development personnel.

	●	Our management team has limited experience managing a public company.

	●	Our business is subject to the risks of earthquakes, fire, floods, public health crises and other natural catastrophes and to interruption by man-made problems such as power disruptions, computer viruses, data security breaches or other incidents, war or terrorism.

	●	Our industry is subject to rapid technological change, and if we do not adapt to, and appropriately allocate our resources among, emerging technologies and business models, our business may be negatively impacted.

	●	We rely on third-party platforms, such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, My Nintendo Store, the Apple App Store, the Google Play Store, and the Amazon Appstore, to distribute our games and collect revenues generated on such platforms and rely on third-party payment service providers to collect revenues generated on our own platforms.

	●	We depend on servers and networks to operate our games with online features. If we were to lose functionality in any of these areas for any reason, our business may be negatively impacted.

	●	We may be unable to effectively manage the continued growth and the scope and complexity of our business, including our expansion into new business models that are untested and into adjacent business opportunities with large, established competitors.

	●	Our online games are vulnerable to the risk of service disruptions due to large-scale distributed denial-of-service (DDoS) attacks.

	●	The interactive entertainment software industry is highly competitive.

	●	We are subject to product development risks, which could result in delays and additional costs, and often times we must adapt to changes in software technologies.

	●	Our business is subject to our ability to develop commercially successful products for the current video game platforms, which may not generate immediate or near-term revenues, and as a result, our business and operating results may be more volatile and difficult to predict during console transitions than during other times.

	●	Our results of operations or reputation may be harmed as a result of objectionable consumer, or other third party-created content, or if our distributors, retailers, development, and licensing partners, or other third parties with whom we are affiliated, act in ways that put our brand at risk.

	●	The products or services we release may contain defects, bugs or errors.

	●	External game developers may not meet product development schedules or otherwise fulfill their contractual obligations.

	●	If we do not successfully invest in, establish and maintain awareness of our brand and games or if we incur excessive expenses promoting and maintaining our brand or our games, our business, financial condition, results of operations or reputation could be harmed.

	●	Our operating results may fluctuate from quarter to quarter, which makes our future results difficult to predict.

	●	We have experienced rapid growth and expect to invest in our growth for the foreseeable future. If we fail to manage our growth effectively, then our business, operating results and financial condition would be adversely affected.

	●	User metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics could harm our business, revenue and financial results

	●	Expansion of the Company’s operations into new products, services and technologies, including content categories, is inherently risky and may subject it to additional business, legal, financial and competitive risks.

	●	We utilize artificial intelligence (“AI”), which could expose us to liability or adversely affect our business.

	●	If we are unable to protect the intellectual property relating to our material software, the commercial value of our products will be adversely affected, and our competitive position could be harmed.

	●	If we infringe, misappropriate, or otherwise violate or are alleged to infringe, misappropriate or otherwise violate the intellectual property rights of third parties, our business could be adversely affected.

	●	We are a “controlled company” under the corporate governance rules of Nasdaq and, as a result, qualify for and rely on exemptions from certain corporate governance requirements. Since we elected to rely on the exemptions available to a “controlled company,” you do not have the same protections afforded to stockholders of companies that are subject to such corporate governance requirements.

	●	Mr. Shi, our Founder, Chief Executive Officer, Chief Strategy Officer and Chairman, controls us, and his ownership of our common stock prevents you and other stockholders from influencing significant decisions.

	●	If general economic conditions decline, demand for our games could decline. In addition, our business is vulnerable to changing economic conditions and to other factors that adversely affect the gaming industry, which could negatively impact our business.

	●	General economic factors, domestically and internationally, may adversely affect our business, financial condition, and results of operations.

	●	We have debt obligations with short term durations that are coming due within one year.

	●	We have recorded a full valuation allowance against our deferred tax assets, and there can be no assurance that any portion of these assets will be realized.

	●	the platform providers discontinue or limit our access to their platforms;

	●	governments or private parties, such as internet providers, impose bandwidth restrictions, increase charges or restrict or prohibit access to those platforms;

	●	the platforms increase the fees they charge us;

	●	the platforms modify their algorithms, communication channels available to developers, respective terms of service or other policies;

	●	the platforms decline in popularity;

	●	the platforms adopt changes or updates to their technology that impede integration with other software systems or otherwise require us to modify our technology or update our games in order to ensure players can continue to access our games and content with ease;

	●	the platforms elect or are required to change how they label free-to-play games or take payment for in-game purchases;

	●	the platforms block or limit access to the genres of games that we provide in any jurisdiction;

	●	the platform experiences a bankruptcy or other form of insolvency event; or

	●	we are unable to comply with the platform providers’ terms of service.

●	our ability to maintain and grow our player base;

●	our ability to retain and increase revenue from existing customers;

●	our ability to introduce new features and functionalities and enhance existing features and functionalities;

●	our ability to respond to competitive developments, including pricing changes and the introduction of new products and features by our competitors, or the emergence of new competitors;

●	seasonal purchasing patterns of our consumers;

●	impact of downtime or defects in our game and reputational harm;

●	changes to financial accounting standards and the interpretation of those standards that may affect the way we recognize and report our financial results, including changes in accounting rules governing recognition of revenue;

●	general economic and political conditions and government regulations in the countries where we currently operate or plan to expand;

●	decisions by us to incur additional expenses, such as increases in sales and marketing or research and development; and

●	potential costs to attract, onboard, retain and motivate qualified personnel.

●	we fail to innovate or develop new products and services that provide relevant content and satisfactory experience;

●	we fail to produce new dramas that are attractive to our users;

●	we fail to respond to or adopt evolving technologies for product development on a timely and cost-effective basis;

●	we fail to successfully market and monetize our existing and new mobile applications throughout their life cycles;

●	we fail to maintain or improve our technology infrastructure and security measures designed to protect our users’ personal privacy and cyber security;

●	we lose users to competing products and services or due to concerns related to personal privacy and cyber security or other reasons;

●	we fail to successfully implement our strategies related to the continued expansion of our global user base; or

●	we are required by existing or new laws, regulations or government policies to implement changes to our products or services that are adverse to our business.

●	cause us to incur greater costs and expenses in the protection of our intellectual property;

●	potentially negatively impact our intellectual property rights, for example, by causing one or more of our intellectual property rights to be ruled or rendered unenforceable or invalid; or

●	divert our technical personnel’s or management’s attention and our resources. In any lawsuit we bring to enforce our intellectual property rights, a court may refuse to stop the other party from using the technology at issue on grounds that our intellectual property rights do not cover the technology in question, are not valid, or otherwise not enforceable against such other party. Further, in such proceedings, the defendant could counterclaim that our intellectual property is invalid or unenforceable and the court may agree, in which case we could lose valuable intellectual property rights. The outcome in any such lawsuit is unpredictable.

●	requirement that a majority of its board of directors consist of independent directors;

●	the requirement that its director nominations be made, or recommended to the full board of directors, by its independent directors or by a nominations committee that is comprised entirely of independent directors and that it adopts a written charter or board resolution addressing the nominations process; and

●	the requirement that it has a compensation committee that is composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities.

	●	any determination with respect to our business direction and policies, including the appointment and removal of officers and, in the event of a vacancy on our board of directors, additional or replacement directors;
	●	any determinations with respect to mergers, business combinations or dispositions of assets;
	●	determination of our management policies;
	●	determination of the composition of the committees on our board of directors;
	●	our financing policy;
	●	our compensation and benefit programs and other human resources policy decisions;
	●	changes to any other agreements that may adversely affect us;
	●	the payment of dividends on our common stock; and
	●	determinations with respect to our tax returns.

	Years ended December 31,
	2025			2024		$ Change			% Change
	(in millions)
Revenues, net	$	81.2		$	84.5	$	(3.2	)		(3.8	)%
Cost of revenues		58.8			54.2		4.6			8.4	%
Gross profit		22.4			30.3		(7.8	)		(25.8	)%
Operating expenses:
General and administrative		18.1			12.9		5.2			40.6	%
Research and development		14.6			11.6		2.9			25.2	%
Advertising and marketing		5.2			1.5		3.7			243.8	%
Depreciation		0.3			0.4		(0.1	)		(18.4	)%
Impairment expenses		1.5			—		1.5			100.0	%
Total operating expenses		39.7			26.4		13.4			50.7	%
Income (loss) from operations	$	(17.3	)	$	3.9	$	(21.2	)		(543.9	)%

	Years ended December 31,
	2025		2024		$ Change		% Change
	(in millions)
Units Sold⁽¹⁾		6.3		4.7		1.6		32.7	%

	Page
Report of Independent Registered Public Accounting Firm (BDO USA, P.C.; Costa Mesa, California; PCAOB ID No. 243)	F-2
Consolidated Balance Sheets	F-3
Consolidated Statements of Operations and Comprehensive Income (Loss)	F-4
Consolidated Statements of Equity (Deficit)	F-5
Consolidated Statements of Cash Flows	F-7
Notes to Consolidated Financial Statements	F-8

	December 31, 2025			December 31, 2024

ASSETS

Current Assets:
Cash and cash equivalents	$	8,568,164		$	7,303,944
Restricted cash and cash equivalents		187,000			—
Accounts receivable, net of allowances for credit losses of $523,500 as of December 31, 2025 and 2024		12,528,347			9,814,822
Accounts receivable – related party		—			2,336,274
Accounts receivable		—			2,336,274
Loan and interest receivable – related party		107,759			105,759
Prepaid expenses – related party		2,700,474			2,521,291
Prepaid expenses and other current assets		2,232,485			1,846,024
Prepaid taxes		4,734,007			7,318,424
Total current assets		31,058,236			31,246,538

Restricted cash and cash equivalents, net of current portion		1,748,000			935,000
Accounts receivable – related party, net of current portion		—			1,500,592
Prepaid expenses – related party, net of current portion		8,282,974			9,378,594
Property and equipment, net		4,146,175			4,378,352
Intangible assets, net		3,827,927			973,914
Intangible assets, net – related party		4,916,667			—
Intangible assets, net		4,916,667			—
Deferred income taxes		—			10,817,112
Other noncurrent assets, net		604,793			1,683,932
Operating lease right-of-use assets, net		4,722,366			1,279,330
Total assets	$	59,307,138		$	62,193,364

LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current Liabilities:
Accounts payable	$	5,506,332		$	4,656,367
Accounts payable – related parties		20,067,013			15,383,171
Accounts payable		20,067,013			15,383,171
Accrued expenses and other liabilities		3,364,150			4,499,280
Interest payable – related parties		527,770			527,770
Revolving loan		—			3,000,000
Convertible notes at fair value		3,842,189			—
Current portion of long-term debt		1,305,880			2,722,548
Current portion of deferred revenue		14,799,840			3,947,559
Current portion of operating lease liabilities		393,448			1,444,385
Total current liabilities		49,806,622			36,181,080

Accrued expenses		468,106			265,251
Revolving loan		5,000,000			—
Long-term debt, net of current portion		4,292,538			—
Deferred revenue, net of current portion		17,282,685			21,519,888
Operating lease liabilities, net of current portion		4,336,240			57,983
Total liabilities		81,186,191			58,024,202

Commitments and contingencies		-			-

Stockholders’ Equity (Deficit):
Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 10,382,336 shares issued and 9,032,061 shares outstanding as of December 31, 2025, and 9,626,070 shares issued and 8,275,795 shares outstanding as of December 31, 2024		1,038			962
Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 28,748,580 shares issued and outstanding as of December 31, 2025 and December 31, 2024		2,875			2,875
Common stock, value		2,875			2,875

Additional paid-in capital		26,923,115			25,738,082
Accumulated other comprehensive loss		(275,049	)		(279,457	)
Accumulated deficit		(39,352,510	)		(12,117,385	)
Treasury stock at cost (1,350,275 shares as of December 31, 2025 and 2024)		(3,671,806	)		(3,671,806	)
Total Snail, Inc. equity (deficit)		(16,372,337	)		9,673,271
Noncontrolling interests		(5,506,716	)		(5,504,109	)
Total stockholders’ equity (deficit)		(21,879,053	)		4,169,162
Total liabilities, noncontrolling interests and stockholders’ equity (deficit)	$	59,307,138		$	62,193,364

	Shares		Amount		Shares		Amount		Capital			Loss			Deficit			Shares			Amount			Equity			interests			Equity
	Class A Common Stock				Class B Common Stock				Additional Paid-In-			Accumulated Other Comprehensive			Accumulated			Treasury Stock						Snail, Inc. Equity			Non controlling			Total Equity
	Shares		Amount		Shares		Amount		Capital			Loss			Deficit			Shares			Amount			(Deficit)			interests			(Deficit)

Balance at December 31, 2024		9,626,070	$	962		28,748,580	$	2,875	$	25,738,082		$	(279,457	)	$	(12,117,385	)		(1,350,275	)	$	(3,671,806	)	$	9,673,271		$	(5,504,109	)	$	4,169,162

Conversion of notes payable
Conversion of notes payable, shares
Conversion of convertible notes to common stock		295,873		30		—		—		331,470			—			—			—			—			331,500			—			331,500

Exercise of warrants		189,285		19		—		—		482,094			—			—			—			—			482,113			—			482,113

Stock based compensation related to restricted stock units		—		—		—		—		371,496			—			—			—			—			371,496			—			371,496

Common stock issued for service		271,108		27		—		—		(27	)		—			—			—			—			—			—			—

Fair value changes of convertible notes		—		—		—		—		—			28,377			—			—			—			28,377			—			28,377

Foreign currency translation		—		—		—		—		—			(23,969	)		—			—			—			(23,969	)		—			(23,969	)

Net loss		—		—		—		—		—			—			(27,235,125	)		—			—			(27,235,125	)		(2,607	)		(27,237,732	)

Balance at December 31, 2025		10,382,336	$	1,038		28,748,580	$	2,875	$	26,923,115		$	(275,049	)	$	(39,352,510	)		(1,350,275	)	$	(3,671,806	)	$	(16,372,337	)	$	(5,506,716	)	$	(21,879,053	)

	2025			2024

Cash flows from operating activities:
Net income (loss)	$	(27,237,732	)	$	1,827,075
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization – intangible assets, net		311,129			7,804
Amortization – intangible assets, net – related party		83,333			—
Amortization – intangible assets, net		83,333			—
Amortization – film assets		1,331,330			—
Amortization – loan origination fees and debt discounts		13,109			62,855
Accretion – convertible notes		—			222,628
Loss on change in fair value of convertible notes		504,658			—
(Gain) loss on change in fair value of warrant liabilities		(719,925	)		1,332,815
Depreciation – property and equipment		247,976			303,714
Impairment of film assets		868,722			—
Impairment of intangible assets		667,460			—
Gain on remeasurement of previously held equity interest		(7,857	)		—
Stock-based compensation expense (income)		371,496			(890,208	)
Deferred taxes, net		10,817,741			(569,601	)

Changes in assets and liabilities, net of business acquisitions:
Accounts receivable		(2,678,525	)		15,319,987
Accounts receivable – related party		3,836,866			3,663,726
Prepaid expenses – related party		(1,583,563	)		1,928,581
Prepaid expenses and other current assets		(386,461	)		(1,206,331	)
Prepaid taxes		2,584,417			2,211,331
Other noncurrent assets		(1,265,874	)		(1,523,065	)
Accounts payable		1,106,676			(7,183,648	)
Accounts payable – related parties		3,473,842			(8,001,265	)
Accrued expenses and other liabilities		110,762			46,542
Loan and interest receivable – related party		(2,000	)		(2,005	)
Lease liabilities		(215,715	)		(266,800	)
Deferred revenue		6,615,079			(8,849,259	)
Net cash used in operating activities		(1,153,056	)		(1,565,124	)

Cash flows from investing activities:
Acquisition of software		(290,000	)		—
Acquisition of software licenses		(4,087,896	)		—
Investments in software		(854,269	)		—
Net cash paid for acquisition of Matrioshka		(9,719	)		—
Acquisition of fixed assets		(15,798	)		—
Net cash used in investing activities		(5,257,682	)		—

Cash flows from financing activities:
Repayments on promissory note		—			(89,374	)
Repayments on notes payable		(624,131	)		(2,333,333	)
Repayments on convertible notes		(2,303,527	)		(1,020,000	)
Repayments on revolving loan		—			(3,000,000	)
Borrowings on revolving loan		2,000,000			—
Borrowings on term loan		3,500,000			—
Cash proceeds from exercise of warrants		159,000			220,000
Proceeds on issuance of convertible notes		6,000,000			—
Payments of loan origination fees		(25,750	)		—
Payments of offering costs in accounts payable		—			(262,914	)
Net cash provided by (used in) financing activities		8,705,592			(6,485,621	)

Effect of foreign currency translation on cash and cash equivalents		(30,634	)		(24,630	)

Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents		2,264,220			(8,075,375	)

Cash and cash equivalents, and restricted cash and cash equivalents – beginning of the year		8,238,944			16,314,319

Cash and cash equivalents, and restricted cash and cash equivalents – end of the year	$	10,503,164		$	8,238,944

Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest	$	617,246		$	467,188
Income taxes	$	(2,859,830	)	$	(1,100,302	)
Noncash transactions during the year for:
Change in fair value of notes recorded in accumulated other comprehensive income	$	21,297		$	—
Debt converted to equity	$	(331,500	)	$	(60,000	)
Right-of-use assets obtained in exchange for a lease liability	$	(4,709,564	)	$	(85,588	)
Liabilities converted to equity upon exercise of warrants	$	323,113		$	176,750
Acquisition of software in accounts payable – related parties	$	—		$	290,000
Acquisition of software and software licenses in accounts payable and accrued expenses	$	130,000		$	420,000
Net assets acquired in a business combination	$	5,461		$	—
Acquisition of software licenses in accounts payable – related parties	$	1,500,000		$	—
Acquisition of software license paid in prior years	$	2,500,000		$	—

	Equity %
Subsidiary Name	Owned
Snail Games USA Inc.		100	%
Snail Innovation Institute		70	%
Frostkeep Studios, Inc.		100	%
Eminence Corp		100	%
Wandering Wizard, LLC		100	%
Donkey Crew, LLC		99	%
Interactive Films, LLC		100	%
Project AWK Productions, LLC		100	%
BTBX.IO, LLC		70	%
Matrioshka Games, LLC		100	%
Snail Coins, LLC		100	%
Snail Coins (BVI), Ltd		100	%
Egofold, LLC		100	%
Rustic Roost, LLC		100	%

	●	Consumable: consumable virtual items represent items that can be consumed by a specific player action. Consumable virtual items do not result in a direct benefit that the player keeps or provide the player any continuing benefit following consumption, and they often enable a player to perform an in-game action immediately. For the sale of consumable virtual items, the Company recognizes revenue ratably over the estimated service period, or as items are consumed, as applicable to the game (i.e., over time).

	●	Durable: durable virtual items represent items that are accessible to the player over an extended period of time. The Company recognizes revenue from the sale of durable virtual items ratably over the estimated service period for the applicable game (i.e., over time), which represents the Company’s best estimate of the average life of the durable virtual item or the life of the user.

	●	Reasonably available data points, including third party or industry pricing, and contractually stated prices.

	●	Market conditions such as market demand, competition, market constraints, awareness of the product and market trends.

	●	Entity-specific factors including pricing strategies and objectives, market share and pricing practices for bundled arrangements.

	2025		2024
Software license royalties – related parties	$	20,312,794	$	19,908,982
Software license royalties		168,772		574,520
License fees – related party		24,000,000		24,000,000
License and amortization		1,744,292		7,804
Merchant fees		1,863,751		890,999
Engine fees		4,674,643		3,823,215
Internet, server and data center		5,932,815		4,977,076
Costs related to other revenue		97,880		53,746
Total:	$	58,794,947	$	54,236,342

Subsidiary Name	Equity % Owned			Non-Controlling %
Snail Innovative Institute		70	%		30	%
BTBX.IO, LLC		70	%		30	%
Donkey Crew, LLC		99	%		1	%

Buildings		39 years
Building improvements		7 years
Leasehold improvements		Lesser of the lease term or the estimated useful lives of the improvements, generally 5 to 15 years
Computer equipment and software		3 to 5 years
Furniture and fixtures		3 years
Auto and trucks		5 years

	●	Level 1: Quoted prices in active markets for identical assets or liabilities that the Company has an ability to access as of the measurement date.

	●	Level 2: Inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the same term of the assets or liabilities.

	●	Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

	Fair value measured as of December 31, 2025
	Total fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Convertible notes	$	3,842,189	$	—	$	—	$	3,842,189
Convertible notes warrants		632,876		—		—		632,876
Equity line of credit warrants		143,675		—		—		143,675
Total:	$	4,618,740	$	—	$	—	$	4,618,740

	2025		2024
Over time	$	5,904,976	$	4,520,499
Point in time		75,320,646		79,946,548
Total revenue from contracts with customers:	$	81,225,622	$	84,467,047

	2025		2024
United States	$	72,070,053	$	73,117,378
United Kingdom		7,430,097		9,207,537
Other international		1,725,472		2,142,132
Total revenue from contracts with customers:	$	81,225,622	$	84,467,047

	2025		2024
Console	$	31,153,898	$	35,791,684
PC		40,606,078		40,659,044
Mobile		7,790,182		4,632,413
Physical retail and other		1,675,464		3,383,906
Total revenue from contracts with customers:	$	81,225,622	$	84,467,047

	2025		2024
Platform 1	$	39,345,153	$	39,217,130
Platform 2		10,113,472		12,434,911
Platform 3		19,775,689		21,056,125
Platform 4		1,261,256		2,298,946
All Other Revenue		10,730,052		9,459,935
Total	$	81,225,622	$	84,467,047