Snail, Inc. Reports Third Quarter 2024 Financial Results
Snail (NASDAQ: SNAL) reported strong Q3 2024 financial results with net revenue of $22.5 million, up 150.9% year-over-year. The company achieved net income of $0.2 million, compared to a $4.4 million loss in Q3 2023. The improvement was driven by new releases including Aberration and Bobs Tall Tales Part II. ARK: Survival Ascended sold 0.4 million units in Q3, maintaining 210,000 daily active users. Bookings increased 53.6% to $16.1 million, while EBITDA improved to $0.5 million from a $5.1 million loss. The company's cash position stands at $10.6 million, with significant debt reduction achieved during the period.
Snail (NASDAQ: SNAL) ha riportato risultati finanziari solidi per il terzo trimestre 2024, con un fatturato netto di 22,5 milioni di dollari, in aumento del 150,9% rispetto all'anno precedente. L'azienda ha ottenuto un reddito netto di 0,2 milioni di dollari, rispetto a una perdita di 4,4 milioni di dollari nel terzo trimestre del 2023. Il miglioramento è stato guidato da nuove uscite tra cui Aberration e Bobs Tall Tales Part II. ARK: Survival Ascended ha venduto 0,4 milioni di unità nel terzo trimestre, mantenendo 210.000 utenti attivi giornalieri. Le prenotazioni sono aumentate del 53,6% a 16,1 milioni di dollari, mentre l'EBITDA è migliorato a 0,5 milioni di dollari rispetto a una perdita di 5,1 milioni di dollari. La posizione di cassa dell'azienda è di 10,6 milioni di dollari, con una significativa riduzione del debito realizzata durante il periodo.
Snail (NASDAQ: SNAL) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto de $22.5 millones, un aumento del 150.9% en comparación con el año anterior. La compañía logró un ingreso neto de $0.2 millones, en comparación con una pérdida de $4.4 millones en el tercer trimestre de 2023. La mejora fue impulsada por nuevos lanzamientos, incluyendo Aberration y Bobs Tall Tales Parte II. ARK: Survival Ascended vendió 0.4 millones de unidades en el tercer trimestre, manteniendo 210,000 usuarios activos diarios. Las reservas aumentaron un 53.6% a $16.1 millones, mientras que EBITDA mejoró a $0.5 millones desde una pérdida de $5.1 millones. La posición de efectivo de la compañía se sitúa en $10.6 millones, con una reducción significativa de la deuda alcanzada durante el período.
Snail (NASDAQ: SNAL)은 2024년 3분기 강력한 재무 실적을 보고했으며, 순수익은 $22.5백만으로 지난해 대비 150.9% 증가했습니다. 회사는 2023년 3분기 440만 달러의 손실에 비해 20만 달러의 순이익을 달성했습니다. 이러한 개선은 Aberration과 Bobs Tall Tales Part II를 포함한 새로운 출시가 주도했습니다. ARK: Survival Ascended는 3분기에 40만 단위를 판매했으며, 210,000명의 일일 활성 사용자 수를 유지하고 있습니다. 예약은 53.6% 증가하여 1610만 달러에 달했고, EBITDA는 510만 달러의 손실에서 50만 달러로 개선되었습니다. 회사의 현금 잔고는 1060만 달러이며, 이 기간 동안 상당한 부채 감소를 달성했습니다.
Snail (NASDAQ: SNAL) a annoncé de solides résultats financiers pour le troisième trimestre 2024 avec un revenu net de 22,5 millions de dollars, en hausse de 150,9 % par rapport à l'année précédente. L'entreprise a enregistré un bénéfice net de 0,2 million de dollars, contre une perte de 4,4 millions de dollars au troisième trimestre 2023. L'amélioration a été soutenue par de nouvelles sorties, y compris Aberration et Bobs Tall Tales Partie II. ARK: Survival Ascended a vendu 0,4 million d'unités au troisième trimestre, maintenant ainsi 210 000 utilisateurs actifs quotidiens. Les réservations ont augmenté de 53,6 %, atteignant 16,1 millions de dollars, tandis que l'EBITDA s'est amélioré à 0,5 million de dollars, après une perte de 5,1 millions de dollars. La position de trésorerie de l'entreprise s'élève à 10,6 millions de dollars, avec une réduction significative de la dette réalisée au cours de la période.
Snail (NASDAQ: SNAL) berichtete über starke finanzielle Ergebnisse im dritten Quartal 2024 mit einem Nettoumsatz von 22,5 Millionen Dollar, was einem Anstieg von 150,9% im Jahresvergleich entspricht. Das Unternehmen erzielte einen Nettogewinn von 0,2 Millionen Dollar im Vergleich zu einem Verlust von 4,4 Millionen Dollar im dritten Quartal 2023. Die Verbesserung wurde durch neue Veröffentlichungen wie Aberration und Bobs Tall Tales Teil II vorangetrieben. ARK: Survival Ascended verkaufte im dritten Quartal 0,4 Millionen Einheiten und hielt 210.000 aktive Nutzer pro Tag. Die Buchungen stiegen um 53,6% auf 16,1 Millionen Dollar, während das EBITDA auf 0,5 Millionen Dollar von einem Verlust von 5,1 Millionen Dollar verbessert wurde. Die Zahlungsmittelposition des Unternehmens beträgt 10,6 Millionen Dollar, mit einer signifikanten Reduzierung der Schulden im Berichtszeitraum.
- Net revenue increased 150.9% YoY to $22.5 million
- Turned profitable with $0.2 million net income vs $4.4 million loss in Q3 2023
- Bookings grew 53.6% to $16.1 million
- EBITDA improved to $0.5 million from -$5.1 million
- Reduced debt by paying $6.1 million in various loans
- ARK Mobile sales decreased by $0.3 million
- Increase in deferred revenues of $2.6 million due to unreleased content
Insights
The Q3 2024 results show significant improvement with
The balance sheet shows improving health with
The ARK franchise continues to demonstrate strong engagement metrics with 3.8 billion total play hours and impressive user retention -
The cross-platform modding system implementation and Unreal Engine 5 upgrade for ARK: Survival Ascended represents significant technical advancement, potentially extending the franchise's lifecycle and monetization opportunities.
CULVER CITY, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Snail, Inc. (NASDAQ: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced financial results for its third quarter ended September 30, 2024.
Tony Tian, Co-Chief Executive Officer of Snail, commented, “Since taking over as Co-CEO of Snail in April, we’ve continued to see a transformation in the business, guided by the extraordinary talent and vision of our dedicated team. Snail is committed to pushing the boundaries of interactive entertainment, and we are thrilled with the successes seen across our titles and DLCs this quarter, including Aberration, part two of Bobs Tall Tales and the Ark franchise. We remain focused on delivering innovative gaming experiences that exceed our fans’ expectations around the globe, staying true to the creative spirit that has defined our company's remarkable journey.”
Third Quarter 2024 Operational Highlights:
- ARK: Survival Ascended and Ark: Survival Evolved
- On October 25, 2023, the Company launched its flagship remake of the ARK franchise leveraging Unreal Engine 5's stunning graphics and introduced a game-altering cross-platform modding system, ushering in a new era of creativity.
- In the three and nine months ended September 30, 2024, the Company sold 0.4 million units and 1.3 million units of ARK: Survival Ascended, respectively.
- In the three and nine months ended September 30, 2024, ARK: Survival Evolved and ARK: Survival Ascended combined for an average total of 210,000 and 212,000 daily active users on the Steam and Epic platforms, respectively.
- Through September 30, 2024, the Company’s ARK franchise game has been played for 3.8 billion hours with an average playing time per user of 162 hours and with the top
21.2% of all players spending over 100 hours in the game, according to data from the Steam platform.
- Product and Business Updates:
- ARK: Ultimate Survivor Edition. On July 16, 2024, the Company announced the expansive adaptation of the acclaimed ARK franchise into iOS and Android mobile devices.
- Wandering Wizard, an indie branch of the Company, strategically acquired the publishing rights to four new games since the second quarter of 2024. The games, The Cecil, Chasmal Fear, Castle of Secrets, and Stoneguard, are still under development.
- For The Stars. On August 15, 2024, the Company officially announced a new AAA title For The Stars, a space-themed survival sandbox MMO game set to launch on PC, PS5, and Xbox Series X|S.
- Honeycomb: The World Beyond. Snail acquired the publishing rights to the upcoming sci-fi survival adventure game in the third quarter of 2024, further enhancing our sandbox survival content portfolio.
Third Quarter 2024 Financial Highlights:
- Net revenue for the three months ended September 30, 2024 was
$22.5 million , an increase of$13.5 million , or150.9% , compared to$9.0 million in the three months ended September 30, 2023. The increase in net revenue was due to the recognition of$8.2 million in revenue from the release of Aberration and part II of Bobs Tall Tales, an increase in total Ark sales of$5.9 million , an increase in Bellwright sales of$1.0 million ,$1.2 million recognized for meeting the performance obligations of releasing Genesis II and Myth of Empires on certain platforms, partially offset by a decrease in Ark Mobile sales of$0.3 million , and an increase in deferred revenues of$2.6 million related to sales of ARK: Survival Ascended and Bobs Tall Tales DLC’s which have not yet been released. - Net income for the three months ended September 30, 2024 increased significantly to
$0.2 million versus a net loss of$4.4 million in the third quarter of 2023 as a result of the increase in net revenue driven by the release of new titles. - Bookings for the three months ended September 30, 2024 was
$16.1 million as compared to$10.5 million for the three months ended September 30, 2023, an increase of$5.6 million , or53.6% . The increase was primarily due to the release of ARK: Survival Ascended in the fourth quarter of 2023, the releases of Bobs Tall Tales and Bellwright in the first half of 2024, as well as the ARK: Survival Ascended DLC’s Aberration and Scorched Earth in September and April of 2024, respectively. - Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three months ended September 30, 2024 was
$0.5 million compared to an EBITDA loss of$5.1 million in the prior year period. The$5.6 million , or109.7% , increase in EBITDA was due to an increase in net income of$4.6 million and a decrease in the benefit from income taxes of$1.4 million , that was partially offset by a decrease in interest expenses of$0.3 million . - As of September 30, 2024, unrestricted cash was
$10.6 million and the Company has repaid$3.0 million of its revolving loan,$2.3 million in notes payable, and$0.8 million of its convertible notes that were outstanding as of December 31, 2023.
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 EBITDA, as non-GAAP measure, and Bookings, as an operating metric, are useful in evaluating its operating performance. EBITDA is a non-GAAP financial measure that is presented as a supplemental disclosure to net income (loss) and should not be construed as an alternative to net income (loss) or as an alternative to cash flow provided by operating activities as a measure of liquidity, 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.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (in millions) | ||||||||||||
| Total net revenue | $ | 22.5 | $ | 9.0 | $ | 58.3 | $ | 32.3 | ||||
| Change in deferred net revenue | (6.4 | ) | 1.5 | 0.4 | 0.8 | |||||||
| Bookings | $ | 16.1 | $ | 10.5 | $ | 58.7 | $ | 33.1 | ||||
We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) income tax provision (benefit from) and (iv) depreciation and amortization expense. The following table provides a reconciliation from net income (loss) to EBITDA:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (in millions) | ||||||||||||
| Net income (loss) | $ | 0.2 | $ | (4.4 | ) | $ | 0.7 | $ | (11.5 | ) | ||
| Interest income and interest income – related parties | (0.1 | ) | - | (0.2 | ) | (0.1 | ) | |||||
| Interest expense and interest expense – related parties | 0.1 | 0.4 | 0.6 | 1.0 | ||||||||
| Provision for (benefit from) income taxes | 0.2 | (1.2 | ) | 0.3 | (3.0 | ) | ||||||
| Depreciation and amortization expense | 0.1 | 0.1 | 0.2 | 0.3 | ||||||||
| EBITDA | $ | 0.5 | $ | (5.1 | ) | $ | 1.6 | $ | (13.3 | ) | ||
Webcast Details
The Company will host a webcast at 4:30 PM ET today to discuss the third quarter 2024 financial results. Participants may access the live webcast and replay on the Company’s investor relations website at https://investor.snail.com/.
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: 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; 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.
About Snail, Inc.
Snail 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 additional information, please contact: investors@snail.com
| Snail, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 10,566,294 | $ | 15,198,123 | |||
| Accounts receivable, net of allowances for credit losses of | 6,804,338 | 25,134,808 | |||||
| Accounts receivable - related party | 3,035,555 | - | |||||
| Loan and interest receivable - related party | 105,255 | 103,753 | |||||
| Prepaid expenses - related party | 4,952,002 | 6,044,404 | |||||
| Prepaid expenses and other current assets | 1,336,744 | 639,693 | |||||
| Prepaid taxes | 9,713,430 | 9,529,755 | |||||
| Total current assets | 36,513,618 | 56,650,536 | |||||
| Restricted cash and cash equivalents | 1,119,565 | 1,116,196 | |||||
| Accounts receivable - related party, net of current portion | 3,000,592 | 7,500,592 | |||||
| Prepaid expenses - related party | 8,994,630 | 7,784,062 | |||||
| Property, plant and equipment, net | 4,446,772 | 4,682,066 | |||||
| Intangible assets, net - other | 271,115 | 271,717 | |||||
| Deferred income taxes | 10,260,441 | 10,247,500 | |||||
| Other noncurrent assets | 571,711 | 164,170 | |||||
| Operating lease right-of-use assets, net | 1,600,520 | 2,440,690 | |||||
| Total assets | $ | 66,778,964 | $ | 90,857,529 | |||
| LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 3,948,039 | $ | 12,102,929 | |||
| Accounts payable - related parties | 15,689,072 | 23,094,436 | |||||
| Accrued expenses and other liabilities | 2,734,535 | 2,887,193 | |||||
| Interest payable - related parties | 527,770 | 527,770 | |||||
| Revolving loan | 3,000,000 | 6,000,000 | |||||
| Notes payable | - | 2,333,333 | |||||
| Convertible notes, net of discount | - | 797,361 | |||||
| Current portion of long-term promissory note | 2,743,378 | 2,811,923 | |||||
| Current portion of deferred revenue | 13,349,641 | 19,252,628 | |||||
| Current portion of operating lease liabilities | 1,629,835 | 1,505,034 | |||||
| Total current liabilities | 43,622,270 | 71,312,607 | |||||
| Accrued expenses | 254,731 | 254,731 | |||||
| Deferred revenue, net of current portion | 19,940,995 | 15,064,078 | |||||
| Operating lease liabilities, net of current portion | 266,397 | 1,425,494 | |||||
| Total liabilities | 64,084,393 | 88,056,910 | |||||
| Commitments and contingencies | |||||||
| Stockholders' Equity: | |||||||
| Class A common stock, | 937 | 927 | |||||
| Class B common stock, | 2,875 | 2,875 | |||||
| Additional paid-in capital | 25,334,672 | 26,171,575 | |||||
| Accumulated other comprehensive loss | (230,857 | ) | (254,383 | ) | |||
| Accumulated deficit | (13,237,356 | ) | (13,949,325 | ) | |||
| Treasury stock at cost (1,350,275 as of September 30, 2024 and December 31, 2023) | (3,671,806 | ) | (3,671,806 | ) | |||
| Total Snail, Inc. equity | 8,198,465 | 8,299,863 | |||||
| Noncontrolling interests | (5,503,894 | ) | (5,499,244 | ) | |||
| Total stockholders' equity | 2,694,571 | 2,800,619 | |||||
| Total liabilities, noncontrolling interests and stockholders' equity | $ | 66,778,964 | $ | 90,857,529 | |||
| Snail, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues, net | $ | 22,530,372 | $ | 8,981,135 | $ | 58,252,751 | $ | 32,331,876 | |||||||
| Cost of revenues | 13,823,944 | 9,463,086 | 39,369,816 | 29,659,788 | |||||||||||
| Gross profit (loss) | 8,706,428 | (481,951 | ) | 18,882,935 | 2,672,088 | ||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 3,845,301 | 3,452,141 | 8,923,225 | 11,915,126 | |||||||||||
| Research and development | 3,885,926 | 1,317,400 | 7,523,329 | 3,892,039 | |||||||||||
| Advertising and marketing | 495,938 | 215,477 | 1,331,163 | 488,318 | |||||||||||
| Depreciation and amortization | 72,402 | 112,914 | 235,294 | 346,084 | |||||||||||
| Total operating expenses | 8,299,567 | 5,097,932 | 18,013,011 | 16,641,567 | |||||||||||
| Income (loss) from operations | 406,861 | (5,579,883 | ) | 869,924 | (13,969,479 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest income | 60,675 | 47,147 | 225,227 | 98,411 | |||||||||||
| Interest income - related parties | 504 | 504 | 1,501 | 1,496 | |||||||||||
| Interest expense | (95,997 | ) | (370,376 | ) | (634,262 | ) | (961,196 | ) | |||||||
| Other income | 74,891 | 313,156 | 546,484 | 321,331 | |||||||||||
| Foreign currency transaction loss | (55,835 | ) | (1,394 | ) | (32,055 | ) | (25,606 | ) | |||||||
| Total other income (expense), net | (15,762 | ) | (10,963 | ) | 106,895 | (565,564 | ) | ||||||||
| Income (loss) before provision for (benefit from) income taxes | 391,099 | (5,590,846 | ) | 976,819 | (14,535,043 | ) | |||||||||
| Provision for (benefit from) income taxes | 157,938 | (1,156,675 | ) | 269,501 | (3,044,380 | ) | |||||||||
| Net income (loss) | 233,161 | (4,434,171 | ) | 707,318 | (11,490,663 | ) | |||||||||
| Net loss attributable to non-controlling interests | (1,986 | ) | (1,539 | ) | (4,650 | ) | (7,222 | ) | |||||||
| Net income (loss) attributable to Snail, Inc. | $ | 235,147 | $ | (4,432,632 | ) | $ | 711,968 | $ | (11,483,441 | ) | |||||
| Comprehensive income (loss) statement: | |||||||||||||||
| Net income (loss) | $ | 233,161 | $ | (4,434,171 | ) | $ | 707,318 | $ | (11,490,663 | ) | |||||
| Other comprehensive income (loss) related to currency translation adjustments, net of tax | 52,116 | (1,512 | ) | 23,526 | 19,515 | ||||||||||
| Total comprehensive income (loss) | $ | 285,277 | $ | (4,435,683 | ) | $ | 730,844 | $ | (11,471,148 | ) | |||||
| Net income (loss) attributable to Class A common stockholders: | |||||||||||||||
| Basic | $ | 51,312 | $ | (955,763 | ) | $ | 154,972 | $ | (2,477,768 | ) | |||||
| Diluted | $ | 51,312 | $ | (955,763 | ) | $ | 127,440 | $ | (2,477,768 | ) | |||||
| Net income (loss) attributable to Class B common stockholders: | |||||||||||||||
| Basic | $ | 183,835 | $ | (3,476,869 | ) | $ | 556,996 | $ | (9,005,673 | ) | |||||
| Diluted | $ | 183,835 | $ | (3,476,869 | ) | $ | 458,041 | $ | (9,005,673 | ) | |||||
| Net income (loss) per share attributable to Class A and B common stockholders: | |||||||||||||||
| Basic | $ | 0.01 | $ | (0.12 | ) | $ | 0.02 | $ | (0.31 | ) | |||||
| Diluted | $ | 0.01 | $ | (0.12 | ) | $ | 0.02 | $ | (0.31 | ) | |||||
| Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders: | |||||||||||||||
| Basic | 8,024,369 | 7,901,145 | 7,998,686 | 7,909,715 | |||||||||||
| Diluted | 8,024,369 | 7,901,145 | 8,148,133 | 7,909,715 | |||||||||||
| Weighted-average shares 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 | |||||||||||
| Snail, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
| For the nine months ended September 30, | 2024 | 2023 | |||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | 707,318 | $ | (11,490,663 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
| Amortization - intangible assets - license, related parties | - | 1,253,623 | |||||
| Amortization - intangible assets - other | 603 | 603 | |||||
| Amortization - loan origination fees and debt discounts | 60,242 | 142,656 | |||||
| Accretion - convertible notes | 222,628 | - | |||||
| Depreciation and amortization - property and equipment | 235,294 | 346,084 | |||||
| Stock-based compensation expense (income) | (896,893 | ) | 622,007 | ||||
| Interest income from restricted escrow deposit | - | (33,935 | ) | ||||
| Deferred taxes, net | (12,884 | ) | (3,058,738 | ) | |||
| Changes in assets and liabilities: | |||||||
| Accounts receivable | 18,330,470 | 2,674,655 | |||||
| Accounts receivable - related party | 1,464,445 | (255,045 | ) | ||||
| Prepaid expenses - related party | (118,167 | ) | (2,500,000 | ) | |||
| Prepaid expenses and other current assets | (697,051 | ) | 156,450 | ||||
| Prepaid taxes | (183,675 | ) | - | ||||
| Other noncurrent assets | (407,441 | ) | (2,903 | ) | |||
| Accounts payable | (7,891,975 | ) | 846,553 | ||||
| Accounts payable - related parties | (7,405,363 | ) | (248,391 | ) | |||
| Accrued expenses and other liabilities | (152,658 | ) | 134,131 | ||||
| Interest receivable - related party | (1,501 | ) | (1,496 | ) | |||
| Lease liabilities | (194,125 | ) | (148,233 | ) | |||
| Deferred revenue | (1,026,070 | ) | 767,883 | ||||
| Net cash provided by (used in) operating activities | 2,033,197 | (10,794,759 | ) | ||||
| Cash flows from financing activities: | |||||||
| Repayments on promissory note | (68,545 | ) | (59,589 | ) | |||
| Repayments on notes payable | (2,333,333 | ) | (3,750,000 | ) | |||
| Repayments on convertible notes | (1,020,000 | ) | - | ||||
| Repayments on revolving loan | (3,000,000 | ) | (3,000,000 | ) | |||
| Borrowings on notes payable | - | 2,275,000 | |||||
| Proceeds from issuance of convertible notes | - | 847,500 | |||||
| Refund of dividend withholding tax overpayment | - | 1,886,600 | |||||
| Purchase of treasury stock | - | (257,093 | ) | ||||
| Payments of capitalized offering costs | - | (342,318 | ) | ||||
| Payments of offering costs in accounts payable | (262,914 | ) | - | ||||
| Net cash used in financing activities | (6,684,792 | ) | (2,399,900 | ) | |||
| Effect of currency translation on cash and cash equivalents | 23,135 | 20,390 | |||||
| Net decrease in cash and cash equivalents, and restricted cash and cash equivalents | (4,628,460 | ) | (13,174,269 | ) | |||
| Cash and cash equivalents, and restricted cash and cash equivalents - beginning of period | 16,314,319 | 19,238,185 | |||||
| Cash and cash equivalents, and restricted cash and cash equivalents – end of period | $ | 11,685,859 | $ | 6,063,916 | |||
| Supplemental disclosures of cash flow information | |||||||
| Cash paid during the period for: | |||||||
| Interest | $ | 421,986 | $ | 725,885 | |||
| Income taxes | $ | 401,671 | $ | 504,581 | |||
| Noncash transactions during the period for: | |||||||
| Issuance of warrants in connection with equity line of credit | $ | - | $ | (105,411 | ) | ||
| Debt converted to equity | $ | (60,000 | ) | $ | - | ||
| Right-of-use assets obtained in exchange for a lease liability | $ | (85,588 | ) | $ | - | ||
FAQ
What was Snail's (SNAL) revenue in Q3 2024?
How many units of ARK: Survival Ascended did SNAL sell in Q3 2024?
What was Snail's (SNAL) net income for Q3 2024?
What is SNAL's cash position as of September 30, 2024?
