8-K

UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

Washington,

D.C. 20549

FORM

8-K

CURRENT

REPORT

Pursuant

to Section 13 or 15(d) of the

Securities

Exchange Act of 1934

Dateof Report (Date of earliest event reported): August 19, 2025

Snail,Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-41556	88-4146991
(State<br> or other jurisdiction<br><br> <br>of<br> incorporation)	(Commission<br><br> <br>File<br> Number)	(IRS<br> Employer<br><br> <br>Identification<br> Number)

12049Jefferson Blvd

CulverCity, CA 90230

(Address of principal executive offices) (Zip Code)

+1(310) 988-0643

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br><br> <br>Symbol(s)	Name of each exchange on which<br><br> <br>registered
Class A Common Stock, $0.0001 par value per share	SNAL	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02	Results of Operations and Financial Condition.

On August 19, 2025, Snail, Inc. (“Snail”) issued a press release announcing its financial results for the second fiscal quarter ended June 30, 2025. A copy of the press release is attached hereto as Exhibit 99.1.

Neither the information in this Current Report on Form 8-K nor the information in the press release attached hereto as Exhibit 99.1 shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits
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Exhibit<br><br> <br>No.	Description
---	---
99.1	Press Release dated August 19, 2025, relating to Snail, Inc.’s financial results for its second fiscal quarter ended June 30, 2025.
104	Cover<br> Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SNAIL, INC.
Date:<br> August 19, 2025	By:	/s/ Xuedong Tian
	Name:	Xuedong<br> Tian
	Title:	Co-Chief<br> Executive Officer

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Exhibit99.1

Snail,Inc. Reports Second Quarter 2025 Financial Results

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CULVERCITY, Calif., August 19, 2025 (GLOBE NEWSWIRE) – Snail, Inc. (Nasdaq: SNAL) (“Snail Games” or the “Company”), a leading global independent developer and publisher of interactive digital entertainment, today announced financial results for its second quarter ended June 30, 2025.

SecondQuarter 2025 and Recent Operational Highlights

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ARKFranchise Updates:

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●	ARK: Survival Evolved (“ASE”):
○	Units<br> sold were approximately 1,196,583 for the second quarter 2025
---	---
○	During<br> the second quarter 2025, average daily active users (“DAU”) was 156,947 and peak<br> DAU was 258,708
○	Launched<br> pre-order for ARK: Lost Colony
○	Celebrated<br> 10-year anniversary of ASE
●	ARK: Survival Ascended (“ASA”):
---	---
○	Units<br> sold were approximately 807,065 for the second quarter 2025
---	---
○	8<br> million ASA downloads via the PlayStation Plus subscription program during May 2025
○	During<br> the second quarter 2025, average DAU was 84,585 and peak DAU was 163,455
○	Launched<br> seasonal Eggcellent Adventure and Anniversary event
○	Launched<br> first major ARK: Astraeos update
○	Launched<br> ARK: Ragnarok Ascended
●	ARK: Ultimate Mobile Edition (“ARK Mobile”):
---	---
○	Surpassed<br> 6.9 million downloads as of June 30, 2025
---	---
○	In<br> the three months ended June 30, 2025, average DAUs totaled 104,135
○	Launched<br> Extinction map and Genesis Part 1

GamePortfolio Updates:

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●	Celebrated<br> Bellwright’s one-year Early Access anniversary and introduced significant new<br> content and player-requested features
●	Announced<br> the acquisition of publishing rights for Whispers of West Grove and Rebel Engine
●	Launched<br> The Cecil: The Journey Begins, Chasmal Fear, Castle of Secrets, Robots of Midnight, and Zombie Rollerz: The Last Ship
●	Company<br> subsidiary Interactive Films LLC (“Interactive Films”) announced the development<br> of The Fame Game: Welcome to Hollywood

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BusinessUpdates:

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●	Announced<br> its intention to explore pursuing a strategic digital asset initiative that includes the<br> development and introduction of its own proprietary stablecoin
○	Retained<br> external consultant Dr. George Cao, the founder and CEO of AscendEX, a full-stack cryptocurrency<br> financial platform
---	---

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○	Retained<br> seasoned legal advisors including a nationally recognized law firm ranked by Chambers FinTech Legal USA as a leading firm serving cryptocurrency and blockchain clients
○	Established<br> Snail Coins LLC, a new wholly owned subsidiary that will serve as the dedicated entity responsible<br> for the issuance, management, and operations of its proprietary USD-backed stablecoin project<br> and other broader digital asset management initiatives
○	Announced<br> an At The Market Offering Agreement to initiate capital formation for the reserve asset backing<br> its stablecoin project
●	Launched<br> annual Steam Publisher Sale Event, driving sales momentum during the month of June
---	---
●	Interactive<br> Films signed a Memorandum of Understanding (“MoU”) with Mega Matrix Inc. (“MPU”)<br> for the joint development, production, and global distribution of short dramas

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ManagementCommentary

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Company co-Chief Executive Officer Hai Shi commented: “The second quarter marked a pivotal and transformative period for Snail, highlighted by our official announcement to develop and launch our own proprietary stablecoin. This strategic initiative represents a significant evolution in our business model, aligning with both our long-term vision and broader momentum in digital financial innovation. Our decision to enter the stablecoin space was both timely and intentional, catalyzed by the recent passage of the GENIUS Act. This legislation has begun to establish a formal regulatory foundation for stablecoins, offering a clearer framework that supports innovation while fostering trust and transparency, creating an ideal environment to develop a fully compliant digital asset. Beyond its role in the broader financial ecosystem, we envision our stablecoin unlocking a wide range of external use cases - delivering secure, compliant, and scalable solutions that address key gaps in today’s digital asset payment landscape. Importantly, we see strong potential to integrate stablecoin functionality within our core gaming business, offering long-term opportunities to enhance game economies and facilitate seamless transactions.

“To that end, we’ve taken deliberate steps to set this initiative up for success, beginning with the retainment of strategic consultant partners and legal advisors. We are actively building the technological infrastructure and compliance architecture required to support a robust, scalable, and secure stablecoin ecosystem. We also recently entered into an at-the-market offering agreement, marking the beginning of our capital formation strategy to build the reserve backing needed for our stablecoin initiative. We remain committed to providing consistent market updates to foster transparent communications with our shareholders as we work toward the successful long-term launch of our stablecoin.”

Company co-Chief Executive Officer Tony Tian commented: “Beyond our stablecoin initiative, our core gaming business continues to demonstrate strong momentum, with notable performance in the month of June driven by our annual Steam Publisher Sale event. This event drove significant engagement across our game portfolio, especially within the ARK franchise, which remains a key pillar of our content ecosystem. June also marked the 10-year anniversary of the ARK franchise, an achievement that could not be accomplished without the support of the ARK community. Tied to the anniversary, there were many new content drops and updates to celebrate this milestone, further driving engagement. We remain committed to delivering consistent value through regular content updates and expansions for ARK, while also strategically pursuing opportunities to develop, acquire, and launch titles within our indie portfolio. Looking ahead to the remainder of the year, our teams are focused on preparing for the launch of ARK: Lost Colony, while simultaneously advancing a slate of indie titles currently in the pipeline. These efforts underscore our dedication to growing across all facets of our business and continuing to serve our global player base with compelling and original content.”

SecondQuarter 2025 Financial Highlights

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Netrevenues for the three months ended June 30, 2025, increased to $22.2 million compared to $21.6 million in the same period last year. The increase was primarily due to an increase in total ARK sales of $3.3 million, $3.0 million recognized for the inclusion of ARK: Survival Ascended in a platform subscription program in 2025, an increase in sales of the ARK Mobile of $0.6 million that was driven by the release of ARK: Ultimate Mobile Edition, and an increase in revenues related to other games of $0.3 million due to the release of various games, partially offset by the increase in deferred revenues of $3.7 million and a decrease in revenues related to Bellwright of $3.0 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Netloss for the three months ended June 30, 2025, was $(16.6) million compared to net income of $2.3 million in the same period last year, primarily due to increases in the cost of revenues and operating expenses – a result of the Company’s increased headcount, research and development, and marketing expenses and the recognition of a valuation allowance against the Company’s deferred tax assets of $12.9 million during the quarter ended June 30, 2025.

Bookings for the three months ended June 30, 2025, increased 18.5% to $27.1 million compared to $22.9 million in the same period last year. The increase was primarily driven by various sales promotions in 2025 that did not occur in 2024, specifically around ARK: Survival Evolvedand the release of ARK: Lost Colony to presale in 2025.

Earningsbefore interest, taxes, depreciation and amortization (“EBITDA”) for the three months ended June 30, 2025, was $(2.4) million compared to $3.1 million in the same period last year. The decrease was primarily due to an increase in net loss of $18.9 million, partially offset by an increase in interest income and interest income – related parties of $0.1 million, and an increase in the income tax provision of $13.3 million.

As of June 30, 2025, unrestricted cash was $7.9 million compared to $7.3 million as of December 31, 2024.

SixMonths 2025 Financial Highlights

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Netrevenues for the six months ended June 30, 2025, increased 18.4% to $42.3 million compared to $35.7 million in the same period last year. The increase was primarily due to an increase in total ARK sales of $6.1 million, $3.0 million in revenues for the inclusion of ARK: Survival Ascended in a platform subscription program and an increase in sales of the ARK Mobile of $1.9 million that was driven by the release of ARK: Ultimate Mobile Edition, partially offset by the decrease in revenue specific to Bellwrightof $2.2 million, a non-reoccurring Angela Games settlement of $1.2 million occurring in 2024, the related decrease in Angela Games revenues of $0.7 million, and the increase in deferred revenue of $0.3 million during the six months ended June 30, 2025 compared to June 30, 2024.

Netloss for the six months ended June 30, 2025, was $(18.5) million compared to $0.5 million in the same period last year, primarily due to increases in the cost of revenues and operating expenses – a result of the Company’s increased headcount, research and development, and marketing expenses, and an increase in income tax provision of $12.3 million, a result of the valuation allowance recognized against the Company’s deferred tax assets during the six months ended June 30, 2025.

Bookings for the six months ended June 30, 2025, increased 16.3% to $49.4 million compared to $42.4 million in the same period last year. The increase was primarily driven by the releases of ARK: Survival Ascended DLC Astraeos in the first quarter of 2025, sales promotions that were the first of their kind on ARK: Survival Evolved in 2025, and the release of ARK: Lost Colony to presale in 2025.

EBITDA for the six months ended June 30, 2025, was $(5.8) million compared to $1.2 million in the same period last year. The decrease was primarily due to an increase in net loss of $19.0 million, a decrease in interest expense of $0.3 million, partially offset by an increase in the provision for income taxes of $12.3 million.

Useof Non-GAAP Financial Measures

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In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. EBITDA adjusts for items that Snail believes do not reflect the ongoing operating performance of its business, such as certain non-cash items, unusual or infrequent items or items that change from period to period without any material relevance to its operating performance. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail’s operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates and capital investments.

Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues, excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure.

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	Three<br> Months Ended June 30,				Six<br> Months Ended June 30,
	2025		2024		2025		2024
	(in<br> millions)
Total<br> net revenue	$	22.2	$	21.6	$	42.3	$	35.7
Change<br> in deferred net revenue		4.9		1.3		7.1		6.7
Bookings	$	27.1	$	22.9	$	49.4	$	42.4

We define EBITDA as net loss before (i) interest expense, (ii) interest income, (iii) benefit from income taxes and (iv) depreciation expense. The following table provides a reconciliation from net loss to EBITDA:

****	Three Months Ended June 30,					****	Six Months Ended June 30,					****
	2025			2024			2025			2024
	(in<br> millions)						(in<br> millions)
Net<br> loss	$	(16.6	)	$	2.3		$	(18.5	)	$	0.5
Interest<br> income and interest income – related parties		-			(0.1	)		(0.1	)		(0.2	)
Interest<br> expense and interest expense – related parties		0.2			0.2			0.3			0.6
Income<br> tax provision		13.9			0.6			12.4			0.1
Depreciation<br> and amortization expense		0.1			0.1			0.1			0.2
EBITDA	$	(2.4	)	$	3.1		$	(5.8	)	$	1.2

WebcastDetails

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The Company will host a webcast at 4:30 PM ET today to discuss the second quarter 2025 financial results. Participants may access the live webcast and replay via the link here or on the Company’s investor relations website at https://investor.snail.com/.

Forward-LookingStatements

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This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “may,” “predict,” “continue,” “estimate” and “potential,” or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail’s intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail’s business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: growth prospects and strategies; launching new games and additional functionality to games that are commercially successful; expectations regarding significant drivers of future growth; its ability to retain and increase its player base and develop new video games and enhance 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 Internet companies; its ability to attract and retain a qualified management team and other team members while controlling its labor costs; its relationships with 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; the size of addressable markets, market share and market trends; its ability to successfully enter new markets and manage international expansion; protecting and developing its brand and intellectual property portfolio; costs associated with defending intellectual property infringement and other claims; future business development, results of operations and financial condition; the ongoing conflicts involving Russia and Ukraine, and Israel and Hamas, on its business and the global economy generally; actions in various countries, particularly in China and the United States, have created uncertainty with respect to tariff impacts on the costs of our merchandise and costs of development; rulings by courts or other governmental authorities; the Company’s current program to repurchase shares of its Class A common stock, including expectations regarding the timing and manner of repurchases made under this share repurchase program; its plans to pursue and successfully integrate strategic acquisitions; and assumptions underlying any of the foregoing.

Further information on risks, uncertainties and other factors that could affect Snail’s financial results are included in its filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its annual reports on Form 10-K and quarterly reports on Form 10-Q filed, or to be filed, with the SEC. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied in the forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on management’s beliefs and assumptions and on information currently available to Snail, and Snail does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

AboutSnail, Inc.

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Snail, Inc. (Nasdaq: SNAL) is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs, and mobile devices. For more information, please visit: https://snail.com/.

InvestorContact:

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John Yi and Steven Shinmachi

Gateway Group, Inc.

949-574-3860

SNAL@gateway-grp.com

Snail,Inc. and Subsidiaries

CondensedConsolidated Balance Sheets as of June 30, 2025 and December 31, 2024

(Unaudited)

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			December<br> 31, 2024
ASSETS
Current Assets:
Cash and cash<br> equivalents	7,905,426		$	7,303,944
Accounts receivable, net of allowance for<br> credit losses of 523,500 as of June 30, 2025 and December 31, 2024	17,675,727			9,814,822
Accounts receivable –<br> related party	—			2,336,274
Loan and interest receivable<br> – related party	106,751			105,759
Prepaid expenses –<br> related party	5,658,551			2,521,291
Prepaid expenses and other<br> current assets	1,308,225			1,846,024
Prepaid<br> taxes	6,156,775			7,318,424
Total current assets	38,811,455			31,246,538
Restricted cash and cash equivalents	935,000			935,000
Accounts receivable – related party,<br> net of current portion	—			1,500,592
Prepaid expenses – related party, net<br> of current portion	7,970,000			9,378,594
Property and equipment, net	4,242,686			4,378,352
Intangible assets, net	3,514,699			973,914
Deferred income taxes	2,486			10,817,112
Other noncurrent assets, net	1,804,181			1,683,932
Operating lease right-of-use<br> assets, net	676,918			1,279,330
Total assets	57,957,425		$	62,193,364
LIABILITIES, NONCONTROLLING<br> INTERESTS AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	4,480,133		$	4,656,367
Accounts payable –<br> related parties	16,134,033			15,383,171
Accrued expenses and other<br> liabilities	5,168,792			4,499,280
Interest payable –<br> related parties	527,770			527,770
Revolving loan	3,000,000			3,000,000
Convertible notes at fair<br> value	2,415,050			—
Current portion of long-term<br> promissory note	6,179,531			2,722,548
Current portion of deferred<br> revenue	16,601,595			3,947,559
Current<br> portion of operating lease liabilities	653,936			1,444,385
Total current liabilities	55,160,840			36,181,080
Accrued expenses	265,251			265,251
Deferred revenue, net of current portion	15,940,898			21,519,888
Operating lease liabilities,<br> net of current portion	82,100			57,983
Total liabilities	71,449,089			58,024,202
Commitments and contingencies
Stockholders’ Equity:
Class A common stock, 0.0001 par value, 500,000,000 shares authorized;<br> 10,019,797 shares issued and 8,669,522 shares outstanding as of June 30, 2025, and 9,626,070 shares issued and 8,275,795 shares outstanding<br> as of December 31, 2024	1,001			962
Class B common stock, 0.0001 par value, 100,000,000 shares authorized;<br> 28,748,580 shares issued and outstanding as of June 30, 2025 and December 31, 2024	2,875			2,875
Additional paid-in capital	26,501,044			25,738,082
Accumulated other comprehensive loss	(193,615	)		(279,457	)
Accumulated deficit	(30,625,816	)		(12,117,385	)
Treasury stock at cost (1,350,275 shares<br> as of June 30, 2025 and December 31, 2024)	(3,671,806	)		(3,671,806	)
Total Snail, Inc. equity (deficit)	(7,986,317	)		9,673,271
Noncontrolling interests	(5,505,347	)		(5,504,109	)
Total stockholders’<br> equity (deficit)	(13,491,664	)		4,169,162
Total liabilities, noncontrolling<br> interests and stockholders’ equity	57,957,425		$	62,193,364

All values are in US Dollars.

Snail,Inc. and Subsidiaries

CondensedConsolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024

(Unaudited)

	Three<br> months ended June 30,						Six<br> months ended June 30,
	2025			2024			2025			2024
Revenues, net	$	22,185,750		$	21,606,650		$	42,296,622		$	35,722,379
Cost of revenues		15,231,005			13,504,174			29,494,350			25,545,872
Gross profit		6,954,745			8,102,476			12,802,272			10,176,507
Operating expenses:
General and administrative		3,475,089			2,795,884			8,439,440			5,077,924
Research and development		3,293,409			1,860,881			6,903,154			3,637,403
Advertising and marketing		1,520,201			694,195			2,826,567			835,225
Depreciation and amortization		67,761			80,554			135,665			162,892
Impairment<br> of film assets		415,719			—			415,719			—
Total<br> operating expenses		8,772,179			5,431,514			18,720,545			9,713,444
Income (loss) from operations		(1,817,434	)		2,670,962			(5,918,273	)		463,063
Other income (expense):
Interest income		31,972			64,790			61,878			164,552
Interest income - related<br> parties		499			498			992			997
Interest expense		(169,286	)		(142,301	)		(250,115	)		(538,265	)
Other (loss) income		(707,968	)		244,527			61,794			471,593
Foreign<br> currency transaction gain (loss)		(31,891	)		5,652			(68,179	)		23,780
Total other income (expense),<br> net		(876,674	)		173,166			(193,630	)		122,657
Income (loss) before provision for income taxes		(2,694,108	)		2,844,128			(6,111,903	)		585,720
Provision for income taxes		13,868,598			589,512			12,397,768			111,562
Net income (loss)		(16,562,706	)		2,254,616			(18,509,671	)		474,158
Net loss attributable<br> to non-controlling interests		(282	)		(1,535	)		(1,238	)		(2,664	)
Net income (loss) attributable to Snail, Inc.		(16,562,424	)		2,256,151			(18,508,433	)		476,822
Comprehensive income (loss)<br> statement:
Net income (loss)		(16,562,706	)		2,254,616			(18,509,671	)		474,158
Other comprehensive income (loss) related to<br> foreign currency translation adjustments, net of tax		30,587			(9,293	)		63,820			(28,590	)
Other comprehensive income<br> (loss) related to credit adjustments, net of tax		—			—			22,023			—
Total comprehensive<br> income (loss)	$	(16,532,119	)	$	2,245,323		$	(18,423,828	)	$	445,568
Net income (loss) attributable<br> to Class A common stockholders:
Basic	$	(3,775,300	)	$	489,379		$	(4,210,496	)	$	103,656
Diluted	$	(3,775,300	)	$	463,249		$	(4,216,414	)	$	79,116
Net income (loss) attributable<br> to Class B common stockholders:
Basic	$	(12,787,124	)	$	1,766,772		$	(14,297,937	)	$	373,166
Diluted	$	(12,787,124	)	$	1,673,031		$	(14,318,033	)	$	284,821
Income (loss) per share<br> attributable to Class A and B common stockholders:
Basic	$	(0.44	)	$	0.06		$	(0.50	)	$	0.01
Diluted	$	(0.44	)	$	0.06		$	(0.50	)	$	0.01
Weighted-average shares<br> used to compute income (loss) per share attributable to Class A common stockholders:
Basic		8,487,796			8,013,634			8,465,962			7,985,631
Diluted		8,487,796			8,196,329			8,467,535			8,225,025
Weighted-average shares<br> used to compute income (loss) per share attributable to Class B common stockholders:
Basic		28,748,580			28,748,580			28,748,580			28,748,580
Diluted		28,748,580			28,748,580			28,748,580			28,748,580

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Snail,Inc. and Subsidiaries

CondensedConsolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024

(Unaudited)

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	****<br><br>2025			2024
Cash flows from operating<br> activities:
Net income (loss)	$	(18,509,671	)	$	474,158
Adjustments to reconcile net income (loss)<br> to net cash (used in) provided by operating activities:
Amortization - intangible<br> assets, net		79,424			401
Amortization – film<br> assets		645,069			—
Amortization - loan origination<br> fees and debt discounts		(19,504	)		57,632
Accretion – convertible<br> notes		—			222,628
Loss on change in fair<br> value of convertible notes		82,180			—
Gain on change in fair<br> value of warrant liabilities		(91,383	)		—
Depreciation - property<br> and equipment		135,667			162,892
Impairment of film assets		415,719			—
Gain on remeasurement of<br> previously held equity interest		(7,857	)		—
Stock-based compensation<br> expense (income)		280,888			(911,893	)
Deferred taxes, net		10,808,885			60,233
Changes in assets and liabilities, net of business<br> acquisitions:
Accounts receivable		(7,825,905	)		16,922,490
Accounts receivable - related<br> party		3,836,866			309,694
Prepaid expenses - related<br> party		(1,728,666	)		(1,532,672	)
Prepaid expenses and other<br> current assets		537,799			(650,682	)
Prepaid taxes		1,161,649			(110,414	)
Other noncurrent assets		(1,064,165	)		—
Accounts payable		(110,912	)		(6,818,781	)
Accounts payable - related<br> parties		1,040,862			(6,352,078	)
Accrued expenses and other<br> liabilities		1,009,796			(720,197	)
Loan and interest receivable<br> - related party		(992	)		(997	)
Lease liabilities		(163,920	)		(129,642	)
Deferred<br> revenue		7,075,046			6,000,976
Net cash (used in) provided<br> by operating activities		(2,413,125	)		6,983,748
Cash flows from investing<br> activities:
Acquisition of software		(290,000	)		—
Acquisition of software<br> licenses		(2,008,690	)		—
Investments in software		(718,236	)		—
Net<br> cash paid for acquisition of Matrioshka		(9,719	)		—
Net cash used in investing<br> activities		(3,026,645	)		—
Cash flows from financing<br> activities:
Repayments on promissory<br> note		—			(40,883	)
Repayments on notes payable		—			(2,333,333	)
Repayments on convertible<br> notes		(638,753	)		(1,020,000	)
Repayments on revolving<br> loan		(43,018	)		(3,000,000	)
Borrowings on term loan		3,500,000			—
Cash proceeds from exercise<br> of warrants		159,000			—
Proceeds from issuance<br> of convertible notes		3,000,000			—
Payments<br> of capitalized offering costs		-			(262,914	)
Net cash provided by (used<br> in) financing activities		5,977,229			(6,657,130	)
Effect of foreign currency<br> translation on cash and cash equivalents		64,023			(28,344	)
Net increase in cash and cash equivalents,<br> and restricted cash and cash equivalents		601,482			298,274
Cash and cash equivalents,<br> and restricted cash and cash equivalents - beginning of the period		8,238,944			16,314,319
Cash<br> and cash equivalents, and restricted cash and cash equivalents – end of the period	$	8,840,426		$	16,612,593
Supplemental disclosures<br> of cash flow information
Cash paid during the period<br> for:
Interest	$	230,318		$	305,825
Income<br> taxes	$	612,007		$	161,671
Noncash transactions during<br> the period for:
Debt<br> converted to equity	$	-		$	(60,000	)
Right-of-use<br> assets obtained in exchange for lease liability	$	(55,267	)	$	—
Liabilities<br> converted to equity upon exercise of warrants	$	323,113		$	—
Acquisition<br> of film licenses in accounts payable	$	86,069		$	—
Acquisition<br> of software and software licenses in accounts payable and accrued expenses	$	313,282		$	—
Change<br> in fair value of notes recorded in accumulated other comprehensive income	$	22,023		$	—
Net<br> assets acquired in a business combination	$	5,461		$	—