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Midas Edge

Snail, Inc.

For the period ended Mar 31, 2025. Filed May 14, 2025.

View on SEC.gov

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 14, 2025

SNAL$2.15+3.9%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits
Contents

Item 1. Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statement (Unaudited)

Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024

March 31, 2025December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents$9,359,116$7,303,944
Accounts receivable, net of allowance for credit losses of $523,500 as of March 31, 2025 and December 31, 20249,118,2699,814,822
Accounts receivable - related party1,332,8672,336,274
Loan and interest receivable - related party106,252105,759
Prepaid expenses - related party2,536,7482,521,291
Prepaid expenses and other current assets1,468,0621,846,024
Prepaid taxes7,174,9737,318,424
Total current assets31,096,28731,246,538
Restricted cash and cash equivalents935,000935,000
Accounts receivable – related party, net of current portion5921,500,592
Prepaid expenses - related party, net of current portion9,907,6699,378,594
Property and equipment, net4,310,4484,378,352
Intangible assets, net2,159,141973,914
Deferred income taxes12,852,29910,817,112
Other noncurrent assets, net2,282,7091,683,932
Operating lease right-of-use assets, net953,0821,279,330
Total assets$64,497,227$62,193,364
LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable$4,241,403$4,656,367
Accounts payable - related party15,716,60015,383,171
Accrued expenses and other liabilities2,886,4144,499,280
Interest payable - related parties527,770527,770
Revolving loan3,000,0003,000,000
Convertible notes at fair value2,854,518-
Current portion of long-term promissory note2,701,0032,722,548
Current portion of deferred revenue3,864,4743,947,559
Current portion of operating lease liabilities1,042,6881,444,385
Total current liabilities36,834,87036,181,080
Accrued expenses265,251265,251
Deferred revenue, net of current portion23,740,99921,519,888
Operating lease liabilities, net of current portion52,92157,983
Total liabilities60,894,04158,024,202
Commitments and contingencies-
Stockholders’ Equity:
Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 9,815,355 shares issued and 8,465,080 shares outstanding as of March 31, 2025, and 9,626,070 shares issued and 8,275,795 shares outstanding as of December 31, 2024981962
Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 28,748,580 shares issued and outstanding as of March 31, 2025 and December 31, 20242,8752,875
Additional paid-in capital27,063,79525,738,082
Accumulated other comprehensive loss(224,202)(279,457)
Accumulated deficit(14,063,392)(12,117,385)
Treasury stock at cost (1,350,275 shares as of March 31, 2025 and December 31, 2024)(3,671,806)(3,671,806)
Total Snail, Inc. equity9,108,2519,673,271
Noncontrolling interests(5,505,065)(5,504,109)
Total stockholders’ equity3,603,1864,169,162
Total liabilities, noncontrolling interests and stockholders’ equity$64,497,227$62,193,364

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2025 and 2024

Three months ended March 31,
20252024
Revenues, net$20,110,872$14,115,729
Cost of revenues14,263,34512,041,698
Gross profit5,847,5272,074,031
Operating expenses:
General and administrative4,964,3512,282,040
Research and development3,609,7451,776,522
Advertising and marketing1,306,365141,030
Depreciation67,90482,338
Total operating expenses9,948,3654,281,930
Loss from operations(4,100,838)(2,207,899)
Other income (expense):
Interest income29,90699,762
Interest income - related parties493499
Interest expense(80,828)(395,964)
Other income769,762227,066
Foreign currency transaction income (loss)(36,288)18,128
Total other income (expense), net683,045(50,509)
Loss before benefit from income taxes(3,417,793)(2,258,408)
Benefit from income taxes(1,470,830)(477,950)
Net loss(1,946,963)(1,780,458)
Net loss attributable to non-controlling interests(956)(1,129)
Net loss attributable to Snail, Inc.$(1,946,007)$(1,779,329)
Comprehensive loss statement:
Net loss$(1,946,963)$(1,780,458)
Other comprehensive income (loss) related to foreign currency translation adjustments, net of tax33,232(19,297)
Other comprehensive income (loss) related to credit adjustments, net of tax22,023-
Total comprehensive loss$(1,891,708)$(1,799,755)
Net loss attributable to Class A common stockholders:
Basic$(441,731)$(385,722)
Diluted$(521,393)$(385,722)
Net loss attributable to Class B common stockholders:
Basic$(1,504,276)$(1,393,607)
Diluted$(1,775,558)$(1,393,607)
Loss per share attributable to Class A and B common stockholders:
Basic$(0.05)$(0.05)
Diluted$(0.06)$(0.05)
Weighted-average shares used to compute loss per share attributable to Class A common stockholders:
Basic8,442,0257,957,031
Diluted9,241,8227,957,031
Weighted-average shares used to compute loss per share attributable to Class B common stockholders:
Basic28,748,58028,748,580
Diluted28,748,58028,748,580

Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2025 and 2024

Class A Common Stock · Class B Common Stock · Additional Paid-In- · Accumulated Other Comprehensive · Accumulated · Treasury Stock · Snail, Inc. · Non controlling · Total
SharesAmountSharesAmountCapitalLossDeficitSharesAmountEquityinterestsEquity
Balance at December 31, 20239,275,420$92728,748,580$2,875$26,171,575$(254,383)$(13,949,325)(1,350,275)$(3,671,806)$8,299,863$(5,499,244)$2,800,619
Conversion of notes payable71,4607--59,993----60,000-60,000
Stock based compensation related to restricted stock units----(926,875)----(926,875)-(926,875)
Common stock issued for service10,8691--(1)-------
Foreign currency translation-----(19,297)---(19,297)-(19,297)
Net loss------(1,779,329)--(1,779,329)(1,129)(1,780,458)
Balance at March 31, 20249,357,749$93528,748,580$2,875$25,304,692$(273,680)$(15,728,654)(1,350,275)$(3,671,806)$5,634,362$(5,500,373)$133,989
Class A Common Stock · Class B Common Stock · Additional Paid-In- · Accumulated Other Comprehensive · Accumulated · Treasury Stock · Snail, Inc. · Non controlling · Total
SharesAmountSharesAmountCapitalLossDeficitSharesAmountEquityinterestsEquity
Balance at December 31, 20249,626,070$96228,748,580$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
Exercise of warrants189,28519--482,094----482,113-482,113
Stock based compensation related to restricted stock units----843,619----843,619-843,619
Foreign currency translation-----33,232---33,232-33,232
Fair value change of convertible notes-----22,023---22,023-22,023
Net loss------(1,946,007)--(1,946,007)(956)(1,946,963)
Balance at March 31, 20259,815,355$98128,748,580$2,875$27,063,795$(224,202)$(14,063,392)(1,350,275)$(3,671,806)$9,108,251$(5,505,065)$3,603,186

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024

2025 · 2024
Cash flows from operating activities:
Net loss$(1,946,963)$(1,780,458)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization - intangible assets, net35,516200
Amortization – film assets212,709-
Amortization - loan origination fees and debt discounts(1,889)47,729
Accretion – convertible notes-181,754
Gain on change in fair value of convertible notes(117,105)-
Gain on change in fair value of warrant liabilities(639,518)-
Depreciation - property and equipment67,90482,338
Stock-based compensation expense (income)843,619(926,875)
Deferred taxes, net(2,041,515)(555,781)
Changes in assets and liabilities:
Accounts receivable696,55317,759,629
Accounts receivable - related party2,503,407(1,085,213)
Prepaid expenses - related party(544,532)(1,351,838)
Prepaid expenses and other current assets377,962(1,779,508)
Prepaid taxes143,45170,407
Other noncurrent assets(656,562)-
Accounts payable(198,705)(1,938,654)
Accounts payable - related party623,430(6,143,374)
Accrued expenses and other liabilities(650,236)(461,311)
Loan and interest receivable - related party(493)(499)
Lease liabilities(80,510)(64,821)
Deferred revenue2,138,0264,723,462
Net cash provided by operating activities764,5496,777,187
Cash flows from investing activities:
Acquisition of software(290,000)-
Acquisition of software licenses(1,412,000)-
Investments in software(177,002)-
Net cash used in investing activities(1,879,002)-
Cash flows from financing activities:
Repayments on promissory note(21,546)(20,484)
Repayments on notes payable-(2,333,333)
Repayments on convertible notes-(269,550)
Repayments on revolving loan-(3,000,000)
Cash proceeds from exercise of warrants159,000-
Proceeds from issuance of convertible notes3,000,000-
Payments of capitalized offering costs-(262,914)
Net cash provided by (used in) financing activities3,137,454(5,886,281)
Effect of foreign currency translation on cash and cash equivalents32,171(19,186)
Net increase in cash and cash equivalents, and restricted cash and cash equivalents2,055,172871,720
Cash and cash equivalents, and restricted cash and cash equivalents - beginning of the period8,238,94416,314,319
Cash and cash equivalents, and restricted cash and cash equivalents – end of the period$10,294,116$17,186,039
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest$97,260$171,101
Income taxes$184,707$1,871
Noncash transactions during the period for:
Debt converted to equity$-$(60,000)
Liabilities converted to equity upon exercise of warrants$323,113$-
Acquisition of film licenses in accounts payable$152,000$-
Acquisition of software and software licenses in accounts payable and accrued expenses$51,741$-
Change in fair value of notes recorded in accumulated other comprehensive income$22,023$-
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.