# EDGAR Filing Document

**Accession Number:** 0001886894
**File Stem:** 0001493152-26-022711
**Filing Date:** 2026-5
**Character Count:** 30344
**Document Hash:** c0800415410af16945e20daa273a5976
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-022711.hdr.sgml**: 20260513

**ACCESSION NUMBER**: 0001493152-26-022711

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20260513

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260513

**DATE AS OF CHANGE**: 20260513

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Snail, Inc.
- **CENTRAL INDEX KEY:** 0001886894
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 271157839
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41556
- **FILM NUMBER:** 26973195

**BUSINESS ADDRESS:**
- **STREET 1:** 12049 JEFFERSON BOULEVARD
- **CITY:** CULVER CITY
- **STATE:** CA
- **ZIP:** 90230
- **BUSINESS PHONE:** 1 (310) 928-7428

**MAIL ADDRESS:**
- **STREET 1:** 12049 JEFFERSON BOULEVARD
- **CITY:** CULVER CITY
- **STATE:** CA
- **ZIP:** 90230

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Snail Games USA, Inc.
- **DATE OF NAME CHANGE:** 20211006

?xml version='1.0' encoding='ASCII'?

**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**

**Date of Report (Date of earliest event reported): May 13, 2026**

**Snail, Inc.**

(Exact name of registrant as specified in its charter)

---

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

---

**12049 Jefferson Blvd**

**Culver City, 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 communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement 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 Symbol(s)** | **Name of each exchange on which registered** |
| **Class A Common Stock, $0.0001 par value per share** | **SNAL** | **The Nasdaq Stock Market LLC**<br> **(The Nasdaq Capital Market)** |

---

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 May 13, 2026, Snail, Inc., a Delaware corporation, (the "Company") issued a press release that included financial information for its quarter ended March 31, 2026. A copy of the press release is attached as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.

The information in this Item 2.02 and in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press Release, dated May 13, 2026, issued by Snail, Inc. regarding its financial results for its quarter ended March 31, 2026](ex99-1.htm) |
| 104 | Cover 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.** | **SNAIL, INC.** |
| Date: May 13, 2026 | By: | */s/ Hai Shi* |
|  | Name: | Hai Shi |
|  | Title: | Founder, Chief Executive Officer, Chief Strategy Officer and Chairman of the Board of Directors |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**Snail, Inc. Reports First Quarter 2026 Financial Results**

**CULVER CITY, Calif., May 13, 2026 (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 the first quarter ended March 31, 2026.

**First Quarter 2026 and Recent Operational Highlights**

**ARK Franchise Updates:**

●  ***ARK: Survival Evolved ("ASE"):*** 

○ Units sold were approximately 573,000 for the first quarter of 2026

○ During the first quarter of 2026, average daily active users ("DAU") was 117,000 and peak DAU was 143,000

●  ***ARK: Survival Ascended ("ASA"):*** 

○ Units sold were approximately 1.4 million for the first quarter of 2026

○ During the first quarter of 2026, average DAU was 127,000 and peak DAU was 188,000

●  ***ARK: Ultimate Mobile Edition ("ARK Mobile"):*** 

○ 11.9 million downloads as of March 31, 2026

○ During the first quarter of 2026, average DAU was 141,000

**Game Portfolio and Business Updates:**

● *For The Stars* 

○ Released new developer diary, offering an in-depth look at the upcoming AAA title's current development progress, including new pre-alpha footage and previously unreleased concept art

○ Revealed event-exclusive trailer during 2026 Games Developers Conference ("GDC")

● Introduced *PixARK Worlds*, a new title in development that features revolutionary user-generated content designed to further expand the ARK universe on Steam, Xbox, PlayStation, and the Nintendo Switch 2

● *Bellwright* 

○ Surpassed 1 million downloads on Steam Early Access, announced console port plans to Xbox and PlayStation, and launched the *Maiden Voyage* update.

● Launched *Echoes of Elysium* on Steam Early Access in partnership with Loric Games

● Launched *Survivor Merc's* 1.0 version across Steam, Xbox, and PlayStation

● Launched *Above the Snow* on Steam

● Announced publishing agreement for co-op party action title *Dead Party* 

● Unveiled new upcoming indie title, *Gobby Gang*, at 2026 GDC

● As of March 31, 2026, *SaltyTV* released 250+ short film dramas

![](ex99-1_001.jpg)

**ARK Content Pipeline** 

---

| | | | |
|:---|:---|:---|:---|
| **Title** | **Platforms** | **Type** | **Release Schedule** |
| *ARK Fantastic Tames Season 1 Pack* | *Steam, Xbox, PlayStation* | *DLC Creatures* | *May 2026* |
| *ARK Tides of Fortune* | *Steam, Xbox, PlayStation* | *ASA DLC* | *June 2026* |
| *ARK Genesis Part 1 (ASA Remake)* | *Steam, Xbox, PlayStation* | *ASA DLC Remake* | *June 2026* |
| *ARK Dragontopia* | *Steam, Xbox, PlayStation* | *ASA DLC* | *December 2026* |
| *ARK World Creators* | *Steam, Xbox, PlayStation* | *ASA Content Creation Tool* | *2026* |
| *ARK Survival of the Fittest* | *Steam, Xbox, PlayStation* | *ASA Game Mode* | *2026* |
| *PixARK Worlds* | *Steam, Xbox, PlayStation, Nintendo Switch 2* | *New Title* | *2026/2027* |
| *ARK Atlantis* | *Steam, Xbox, PlayStation* | *ASA DLC* | *2027* |
| *ARK Galaxy Wars* | *Steam, Xbox, PlayStation* | *ASA DLC* | *2027* |
| *ARK Legacy of Santiago* | *Steam, Xbox, PlayStation* | *ASA DLC* | *2027* |

---

**Diversified Content Pipeline** 

---

| | | | |
|:---|:---|:---|:---|
| **Title** | **Platforms** | **Type** | **Release Schedule** |
| *Bellwright* | *Steam, Xbox, PlayStation* | *1.0 Launch* | *2026* |
| *Dead Party* | *Steam* | *Indie Title* | *2026* |
| *Gobby Gang* | *Steam* | *Indie Title* | *2026* |
| *Stoneguard* | *Steam* | *Indie Title* | *2026* |
| *For The Stars* | *Steam* | *AAA Title* | *TBD* |
| *Nine Yin Sutra: Immortal* | *Steam* | *AAA Title* | *TBD* |
| *Nine Yin Sutra: Wushu* | *Steam* | *AAA Title* | *TBD* |

---

**Management Commentary**

"We exited 2025 with tailwinds that positioned Snail for stronger and more stable growth and results," said Company CEO Hai Shi. "Momentum from the *ASA* pipeline we announced in December, the launch of *ARK Lost Colony* DLC, and the subsequent Steam Winter Sale event supported net revenue growth and a return to net income positive. Looking ahead, we aim to deliver year-over-year growth in Q2, driven by several upcoming ARK content releases. We have a *Fantastic Tames Season 1 Expansion Pack* coming in May 2026, and *ARK Tides of Fortune* to launch alongside the remake of *Genesis Part 1* coming to *ASA* in June 2026 to provide a foundation for the quarter to build on. Approximately $11 million from our deferred revenue backlog is expected to be recognized upon the release of *Genesis Part 1*.

"Beyond ARK, Snail Games continues to execute on its strategy to eventually become a fully integrated game developer and publisher. Our upcoming AAA titles represent an important step toward building new franchises with the potential for multi-year to multi-decade game lifespans that can complement the scale of *ASE* and *ASA*. As previously disclosed, these projects have entered their final phases of development, and the eventual launch of these games position us to meaningfully diversify our revenue mix beyond ARK. With multiple gaming events and planned updates throughout the year, we look forward to sharing additional information on *For the Stars*, *Nine Yin Sutra: Immortal*, and *Nine Yin Sutra: Wushu*.

"The next 12-18 months will serve as an inflection period for Snail Games as we work to advance our ARK pipeline and deliver on the investments we have made across our broader pipeline. Over time, our ambition is for Snail Games to be recognized not only for ARK, but as a developer and publisher of multiple renown IPs and titles. We remain focused on unlocking the value of our pipeline and delivering results."

**First Quarter 2026 Financial Highlights**

**Net revenues** increased 35.7% to $27.3 million compared to $20.1 million in the same period last year. The increase was primarily due to an increase of $4.2 million and $2.1 million in revenue related to *ASA* and *Bellwright*, respectively, and a $2.5 million increase in deferred revenue recognized during the period, offset by a decrease in revenue from *ARK Mobile* and *ASE* of $1.6 million.

**Total units sold** increased 42.6% to 2.2 million units compared to 1.5 million units in the same period last year, primarily driven by an increase in sales of *ARK* franchise IPs of 0.5 million units and *Bellwright* of 0.2 million units.

**Net income** increased 210% to $2.1 million compared to a net loss of $1.9 million in the same period last year. The increase was primarily due to an increase in net revenue of $7.2 million and a decrease in total operating expenses of $0.3 million partially offset by an increase in provision for income taxes of $1.6 million, an increase in cost of revenues of $1.4 million and a decrease in total other income, net of $0.5 million.

![](ex99-1_001.jpg)

**Bookings** increased 21.1% to $26.9 million compared to $22.2 million in the same period last year. The increase was primarily due to better sales promotions in 2026 compared to 2025, tailwind momentum from the December 2025 *ARK: Lost Colony DLC* release, and *Bellwright's* highly regarded content update in late 2025.

**EBITDA** increased 173.3% to $2.4 million compared to $(3.2) million in the same period last year. The increase was primarily due to an increase in net income of $4.1 million and a decrease in the benefit from income taxes of $1.6 million.

As of December 31, 2025, **unrestricted cash** was $14.3 million compared to $8.6 million as of December 31, 2025.

**Use of Non-GAAP Financial Measures**

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. 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.

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br> **March 31,** | **Three months ended**<br> **March 31,** |
|  | **2026** | **2025** |
|  | **(in millions)** | **(in millions)** |
| Total net revenue | $27.3 | $20.1 |
| Change in deferred net revenue | (0.4) | 2.1 |
| Bookings | $26.9 | $22.2 |

---

![](ex99-1_001.jpg)

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

---

| | | |
|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | **2025** |
|  | **(in millions)** | **(in millions)** |
| Net income (loss) | $2.1 | $(1.9) |
| Interest expense | 0.2 | 0.1 |
| Income tax (benefit) provision | 0.1 | (1.5) |
| Depreciation expense |  | 0.1 |
| **EBITDA** | $2.4 | $(3.2) |

---

**Webcast Details**

The Company will host a webcast at 4:30 PM ET today to discuss its first quarter 2026 financial and operational results. Participants may access the live webcast and replay via the link <u>here</u> or on the Company's investor relations website at <u>https://investor.snail.com/</u>.

**About Snail, Inc.**

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: <u>https://snail.com/</u>.

**Forward-Looking Statements**

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: exiting 2025 with tailwinds that position the Company for stronger and more stable growth and results; delivering year-over-year growth in Q2 driven by several upcoming ARK content releases; releasing Fantastic Tames Season 1 Expansion Pack in May 2026 and ARK Tides of Fortune alongside the remake of Genesis Part 1 coming to ASA in June 2026 providing a foundation for the quarter to build on; recognizing approximately $11 million of deferred revenue backlog upon the release of Genesis Part 1; continuing to execute on the Company's strategy to become a fully integrated game developer and publisher; the upcoming AAA titles representing an important step toward building new franchises with the potential for multi-year to multi-decade game lifespans that can complement the scale of ASE and ASA; the eventual launch of the upcoming games positioning the Company to meaningfully diversify our revenue mix beyond ARK; sharing additional information on For the Stars, Nine Yin Sutra: Immortal, and Nine Yin Sutra: Wushu; the next 12-18 months being an inflection period for the Company as it advances its ARK pipeline and delivers on the investments it has have made across its broader pipeline; the Company being recognized not only for ARK, but as a developer and publisher of multiple renown IPs and titles; and remaining focused on unlocking the value of the Company pipeline and delivering results.

Any forward-looking statements included herein reflect our current views, and they involve certain risks and uncertainties, including, among others, acceptance of our titles in the marketplace and the successful development, marketing or sale of our titles and our ability to retain our key employees or maintain our Nasdaq listing. These risks should not be construed as exhaustive and should be read together with the other cautionary statement included in our Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

**Investor Contact:**

John Yi and Steven Shinmachi

Gateway Group, Inc.

949-574-3860

<u>SNAL@gateway-grp.com</u>

**Snail, Inc. and Subsidiaries**

**Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***December 31, 2025*** |
| **ASSETS** |  |  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $14259168 | $8568164 |
| &nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents | 187000 | 187000 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowances for credit losses of $523,500 as of March 31, 2026 and December 31, 2025 | 9206357 | 12528347 |
| &nbsp;&nbsp;&nbsp;Loan and interest receivable – related party | 108252 | 107759 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses – related party | 2647267 | 2700474 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1485655 | 2232485 |
| &nbsp;&nbsp;&nbsp;Prepaid taxes | 904099 | 4734007 |
| Total current assets | 28797798 | 31058236 |
| Restricted cash and cash equivalents, net of current portion | 1748000 | 1748000 |
| Prepaid expenses – related party, net of current portion | 8229767 | 8282974 |
| Property and equipment, net | 4133441 | 4146175 |
| Intangible assets, net | 3848124 | 3827927 |
| Intangible assets, net – related party | 4666667 | 4916667 |
| Other noncurrent assets, net | 836060 | 604793 |
| Operating lease right-of-use assets, net | 4581907 | 4722366 |
| Total assets | $56841764 | $59307138 |
| **LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT** |  |  |
| **Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $3907540 | $5506332 |
| &nbsp;&nbsp;&nbsp;Accounts payable – related parties | 21648949 | 20067013 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 3267643 | 3364150 |
| &nbsp;&nbsp;&nbsp;Interest payable – related parties | 527770 | 527770 |
| &nbsp;&nbsp;&nbsp;Convertible notes at fair value | 2382255 | 3842189 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 1329123 | 1305880 |
| &nbsp;&nbsp;&nbsp;Current portion of deferred revenue | 14533507 | 14799840 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 441316 | 393448 |
| Total current liabilities | 48038103 | 49806622 |
| Accrued expenses | 625354 | 468106 |
| Revolving loan | 2500000 | 5000000 |
| Long-term debt, net of current portion | 3974176 | 4292538 |
| Deferred revenue, net of current portion | 17190514 | 17282685 |
| Operating lease liabilities, net of current portion | 4234747 | 4336240 |
| Total liabilities | 76562894 | 81186191 |
| **Commitments and contingencies** |  |  |
| **Stockholders' Deficit:** |  |  |
| Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 10,415,669 shares issued and 9,065,394 shares outstanding as of March 31, 2026, and 10,382,336 shares issued and 9,032,061 shares outstanding as of December 31, 2025 | 1041 | 1038 |
| Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 28,748,580 shares issued and outstanding as of March 31, 2026 and December 31, 2025 | 2875 | 2875 |
| Additional paid-in capital | 26967992 | 26923115 |
| Accumulated other comprehensive loss | (296562) | (275049) |
| Accumulated deficit | (37217804) | (39352510) |
| Treasury stock at cost (1,350,275 shares as of March 31, 2026 and December 31, 2025) | (3671806) | (3671806) |
| Total Snail, Inc. deficit | (14214264) | (16372337) |
| Noncontrolling interests | (5506866) | (5506716) |
| Total stockholders' deficit | (19721130) | (21879053) |
| Total liabilities, noncontrolling interests and stockholders' deficit | $56841764 | $59307138 |

---

![](ex99-1_001.jpg)

**Snail, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three months Ended March 31, 2026 and 2025 (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** |
|  | ***2026*** | ***2025*** |
| Revenues, net | $27294654 | $20110872 |
| Cost of revenues | 15638213 | 14263345 |
| Gross profit | 11656441 | 5847527 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 4650757 | 4964351 |
| &nbsp;&nbsp;&nbsp;Research and development | 4014669 | 3609745 |
| &nbsp;&nbsp;&nbsp;Advertising and marketing | 868789 | 1306365 |
| &nbsp;&nbsp;&nbsp;Depreciation | 12734 | 67904 |
| &nbsp;&nbsp;&nbsp;Impairment expenses | 69149 |  |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 9616098 | 9948365 |
| Income (loss) from operations | 2040343 | (4100838) |
| **Other income (expense):** |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 41847 | 29906 |
| &nbsp;&nbsp;&nbsp;Interest income – related parties | 493 | 493 |
| &nbsp;&nbsp;&nbsp;Interest expense | (206046) | (80828) |
| &nbsp;&nbsp;&nbsp;Other income | 355051 | 769762 |
| &nbsp;&nbsp;&nbsp;Foreign currency transaction gain (loss) | 9692 | (36288) |
| Total other income, net | 201037 | 683045 |
| Income (loss) before provision for (benefit from) income taxes | 2241380 | (3417793) |
| Provision for (benefit from) income taxes | 106824 | (1470830) |
| Net income (loss) | 2134556 | (1946963) |
| Net loss attributable to non-controlling interests | (150) | (956) |
| Net income (loss) attributable to Snail, Inc. | $2134706 | $(1946007) |
| **Comprehensive income (loss) statement:** |  |  |
| Net income (loss) | $2134556 | $(1946963) |
| Other comprehensive income (loss) related to foreign currency translation adjustments, net of tax | (26823) | 33232 |
| Other comprehensive income related to credit adjustments, net of tax | 5310 | 22023 |
| Total comprehensive income (loss) | $2113043 | $(1891708) |
| **Net income (loss) attributable to Class A common stockholders:** |  |  |
| Basic | $**510510** | $**(441731)** |
| Diluted | $**510843** | $**(521393)** |
| **Net income (loss) attributable to Class B common stockholders:** |  |  |
| Basic | $**1624196** | $**(1504276)** |
| Diluted | $**1624196** | $**(1775558)** |
| **Income (loss) per share attributable to Class A common stockholders:** |  |  |
| Basic | $**0.06** | $**(0.05)** |
| Diluted | $**0.05** | $**(0.06)** |
| **Income (loss) per share attributable to Class B common stockholders:** |  |  |
| Basic | $**0.06** | $**(0.05)** |
| Diluted | $**0.06** | $**(0.06)** |
| **Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders:** |  |  |
| Basic | **9036135** | **8442025** |
| Diluted | **9529396** | **9241822** |
| **Weighted-average shares used to compute income (loss) per share attributable to Class B common stockholders:** |  |  |
| Basic | **28748580** | **28748580** |
| Diluted | **28748580** | **28748580** |

---

![](ex99-1_001.jpg)

**Snail, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***2026*** | ***2025*** |
| **Cash flows from operating activities:** |  |  |
| Net income (loss) | $2134556 | $(1946963) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization – intangible assets, net | 150442 | 35516 |
| &nbsp;&nbsp;&nbsp;Amortization – intangible assets, net – related party | 250000 |  |
| &nbsp;&nbsp;&nbsp;Amortization – film assets | 140709 | 212709 |
| &nbsp;&nbsp;&nbsp;Amortization – loan origination fees and debt discounts | 2949 | (1889) |
| &nbsp;&nbsp;&nbsp;(Gain) loss on change in fair value of convertible notes | 70760 | (117105) |
| &nbsp;&nbsp;&nbsp;Gain on change in fair value of warrant liabilities | (410658) | (639518) |
| &nbsp;&nbsp;&nbsp;Depreciation – property and equipment | 12734 | 67904 |
| &nbsp;&nbsp;&nbsp;Impairment of film assets | 69149 |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expenses | 44880 | 843619 |
| &nbsp;&nbsp;&nbsp;Deferred taxes, net |  | (2041515) |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 3321990 | 696553 |
| &nbsp;&nbsp;&nbsp;Accounts receivable – related party |  | 2503407 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses – related party | 106414 | (544532) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 746830 | 377962 |
| &nbsp;&nbsp;&nbsp;Prepaid taxes | 3829908 | 143451 |
| &nbsp;&nbsp;&nbsp;Other noncurrent assets | (422573) | (656562) |
| &nbsp;&nbsp;&nbsp;Accounts payable | (1621431) | (198705) |
| &nbsp;&nbsp;&nbsp;Accounts payable – related parties | 1581936 | 623430) |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 471399 | (650236) |
| &nbsp;&nbsp;&nbsp;Loan and interest receivable – related party | (493) | (493) |
| &nbsp;&nbsp;&nbsp;Lease liabilities | 86834 | (80510) |
| &nbsp;&nbsp;&nbsp;Deferred revenue | (358504) | 2138026 |
| Net cash provided by operating activities | 10207831 | 764549 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Acquisition of software |  | (290000) |
| &nbsp;&nbsp;&nbsp;Acquisition of software licenses | (162000) | (1412000) |
| &nbsp;&nbsp;&nbsp;Investments in software |  | (177002) |
| Net cash used in investing activities | (162000) | (1879002) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Repayments on promissory note |  | (21546) |
| &nbsp;&nbsp;&nbsp;Repayments on notes payable | (295119) |  |
| &nbsp;&nbsp;&nbsp;Repayments on convertible notes | (1525384) |  |
| &nbsp;&nbsp;&nbsp;Repayments on revolving loan | (2500000) |  |
| &nbsp;&nbsp;&nbsp;Cash proceeds from exercise of warrants |  | 159000 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible notes |  | 3000000 |
| &nbsp;&nbsp;&nbsp;Payments of loan origination fees | (7500) |  |
| Net cash provided by (used in) financing activities | (4328003) | 3137454 |
| Effect of foreign currency translation on cash and cash equivalents | (26824) | 32171 |
| Net increase in cash and cash equivalents, and restricted cash and cash equivalents | 5691004 | 2055172 |
| Cash and cash equivalents, and restricted cash and cash equivalents – beginning of the period | 10503164 | 8238944 |
| **Cash and cash equivalents, and restricted cash and cash equivalents – end of the period** | $**16194168** | $**10294116** |
| **Supplemental disclosures of cash flow information** |  |  |
| **Cash paid during the period for:** |  |  |
| &nbsp;&nbsp;&nbsp;Interest | $228053 | $97260 |
| &nbsp;&nbsp;&nbsp;Income taxes | $— | $184707 |
| **Noncash transactions during the period for:** |  |  |
| &nbsp;&nbsp;&nbsp;Liabilities converted to equity upon exercise of warrants | $— | $323113 |
| &nbsp;&nbsp;&nbsp;Acquisition of film licenses in accounts payable | $14000 | $152000 |
| &nbsp;&nbsp;&nbsp;Acquisition of software and software licenses in accounts payable and accrued expenses | $(8639) | $51741 |
| &nbsp;&nbsp;&nbsp;Change in fair value of notes recorded in accumulated other comprehensive income | $5310 | $22023 |

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