0001493152-23-028369 | 10-Q | XBRL Viewer

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
United States	$	8,363,756	$	13,971,832	$	20,141,630	$	40,258,628
International		1,528,497		1,491,690		3,209,111		3,259,485
Total revenue from contracts with customers:	$	9,892,253	$	15,463,522	$	23,350,741	$	43,518,113

Platform

Net revenue by platform for the three and six months ended June 30, 2023 and 2022 were as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Console	$	3,626,475	$	5,415,772	$	9,400,065	$	23,407,351
PC		3,367,369		6,943,036		8,379,549		13,627,472
Mobile		1,508,203		2,393,878		3,226,235		5,185,198
Other		1,390,206		710,836		2,344,892		1,298,092
Total revenue from contracts with customers:	$	9,892,253	$	15,463,522	$	23,350,741	$	43,518,113

Distribution channel

Our products are delivered through digital online services (digital download, online platforms, and cloud streaming), mobile, and retail distribution and other. Net revenue by distribution channel for the three and six months ended June 30, 2023 and 2022 was as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Digital	$	6,993,844	$	12,358,808	$	17,779,614	$	37,034,823
Mobile		1,508,203		2,393,878		3,226,235		5,185,198
Physical retail and other		1,390,206		710,836		2,344,892		1,298,092
Total revenue from contracts with customers:	$	9,892,253	$	15,463,522	$	23,350,741	$	43,518,113

SCHEDULE OF DEFERRED REVENUE

	2023			2022
Deferred revenue, beginning balance in advance of revenue recognition billing	$	9,551,446		$	20,280,934
Revenue recognized		(3,874,784	)		(18,832,396	)
Revenue deferred		3,109,186			8,102,908
Deferred revenue, ending balance		8,785,848			9,551,446
Less: short term portion		(4,125,505	)		(4,335,404	)
Deferred revenue, long term	$	4,660,343		$	5,216,042

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($)	Jul. 26, 2023	Jul. 27, 2023
:Cooperation Agreement [Member]
Subsequent Event [Line Items]
Operating activity	$ 4,046,932
Average amount outstanding	1,046,932
Funds in cash	$ 3,000,000
Distribution Agreement [Member]
Subsequent Event [Line Items]
Prepaid royalty		$ 1,800,000

PREPAID EXPENSES - RELATED PARTY

6 Months Ended

Jun. 30, 2023

Prepaid Expenses - Related Party

PREPAID EXPENSES - RELATED PARTY

NOTE 8 – PREPAID EXPENSES - RELATED PARTY

On March 10, 2023, the Company amended its exclusive software license agreement with SDE relating to the ARK franchise. For DLC’s, the Company plans to release during the term of the agreement, the Company will now have the option to pay the $5.0 million DLC payment in whole or in part, when paid in advance; or in full, upon the DLC release. No payment for any DLC under this agreement will exceed $5.0 million.

During the six months ended June 30, 2023, the Company prepaid $2,500,000 for exclusive license rights for an ARK 1 DLC to SDE. During the year ended December 31, 2022, the Company prepaid $5,000,000 for exclusive license rights to ARK 2 to SDE. Prepaid expenses — related party consisted of the following as of June 30, 2023 and December 31, 2022:


	2023			2022
Prepaid royalties	$	582,500		$	582,500
Prepaid licenses		7,500,000			5,000,000
Prepaid expenses - related party, ending balance		8,082,500			5,582,500
Less: short-term portion		(2,500,000	)		—
Total prepaid expenses - related party, long-term	$	5,582,500		$	5,582,500

REVOLVING LOAN, SHORT TERM NOTE AND LONG - TERM DEBT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Short-Term Debt [Line Items]
Amortization of loan origination expenses	$ 11,814	$ 6,591	$ 20,726	$ 12,557
Origination expenses	2,903
Revolver Loan [Member]
Short-Term Debt [Line Items]
Interest expense	$ 294,749	$ 179,602	$ 588,994	$ 339,691

LOAN PAYABLE AND INTEREST PAYABLE — RELATED PARTIES (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Feb. 28, 2022
Related Party Transaction [Line Items]
Interest payable - related parties		$ 527,770		$ 527,770		$ 527,770
Related Party [Member]
Related Party Transaction [Line Items]
Loan payable - related parties
Interest expense-related parties			$ 1,496		$ 3,222
Loan From Related Party [Member]
Related Party Transaction [Line Items]
Interest rate per annum				2.00%
Loan From Related Party [Member] \| Related Party [Member]
Related Party Transaction [Line Items]
Loan payable - related parties		400,000		$ 400,000
Loan From Related Party Due In June 2022 [Member] \| Wholly Owned Subsidiary Of Snail Digital Technology Co. Ltd. [Member]
Related Party Transaction [Line Items]
Loan payable - related parties		$ 300,000		$ 300,000
Payment of related party debt	$ 300,000
Loan From Related Party Due In December 2023 [Member] \| Snail Digital Technology Co. Ltd. [Member]
Related Party Transaction [Line Items]
Loan payable - related parties			$ 100,000		$ 100,000
Loans payable offset against receivable, related party							$ 100,000
Loans payable offset against receivable							$ 3,890

PRESENTATION AND NATURE OF OPERATIONS

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

PRESENTATION AND NATURE OF OPERATIONS

NOTE 1 – PRESENTATION AND NATURE OF OPERATIONS

Snail, Inc. was incorporated under the laws of Delaware in January 2022. The terms “Snail, Inc,” “Snail Games,” “our” and the “Company” are used to refer collectively to Snail, Inc. and its subsidiaries. The Company’s fiscal year end is December 31. The Registrant was formed for the purpose of completing an initial public offering (“IPO”) and related transactions to carry on the business of Snail Games USA Inc. and its subsidiaries. Snail Games USA Inc. was founded in 2009 as a wholly owned subsidiary of Suzhou Snail Digital Technology Co., Ltd. (“Suzhou Snail”) located in Suzhou, China and is the operating entity that continues post IPO. Snail Games USA Inc. is devoted to researching, developing, marketing, publishing, and distributing games, content and support that can be played on a variety of platforms including game consoles, PCs, mobile phones and tablets. The Company is a global developer and publisher of interactive entertainment content and support on video game consoles, personal computers, mobile devices, and other platforms.

On July 13, 2022, Suzhou Snail transferred all of its right, title, and interest to all of the 500,000 shares of common stock of the Company (“Shares”) to Snail Technology (HK) Limited (“Snail Technology”), an entity organized under the laws of Hong Kong, pursuant to the certain Share Transfer Agreement dated July 13, 2022 between Suzhou Snail and Snail Technology. Subsequently, Snail Technology transferred all of its right, title, and interest in the shares to certain individuals per the Share Transfer Agreement. In connection with the reorganization transaction described below the individuals contributed their interest in the Company to Snail, Inc. in return for common stock of Snail, Inc in connection with Snail, Inc.’s IPO. Because the Company and Suzhou Snail are owned by the same shareholders, Suzhou Snail is considered a related party to the Company.

Reorganization Transaction and IPO

On September 16, 2022, Snail, Inc., filed a Registration Statement on Form S-1 with the United States Securities and Exchange Commission in connection with its IPO. On November 9, 2022, effective as of the IPO pricing, Snail Games USA Inc.’s existing shareholders transferred their 500,000 shares of common stock of Snail Games USA Inc. to Snail, Inc. in exchange for 6,251,420 shares of Class A common stock and 28,748,580 shares of Class B common stock of Snail, Inc., and Snail, Inc. became the parent of Snail Games USA Inc. Because the reorganization transaction was considered a transaction between entities under common control, the financial statements for periods prior to the reorganization transaction and the IPO have been adjusted to combine the previously separate entities for presentation purposes. On November 9, 2022, Snail, Inc. priced its IPO, and on November 10, 2022, Snail, Inc.’s Class A common stock began trading on The Nasdaq Capital Market under the ticker symbol SNAL. In the IPO, Snail, Inc. issued 3,000,000 shares of Class A common stock at $5.00 per share and net proceeds from the IPO were distributed to Snail Games USA Inc. in November 2022 in the amount of approximately $12.0 million, net of the underwriting discount and offering costs of $3.0 million. In connection with the IPO, $1.0 million of the IPO proceeds were remitted to an escrow account which is held to provide a source of funding for certain indemnification obligations of Snail, Inc. to the underwriters. The amount in escrow is reported as a restricted escrow deposit in the consolidated balance sheets for 12 months from the date of the offering, at which time the restrictions will be removed and the balance will be reverted to unrestricted cash.

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC and generally accepted accounting principles as promulgated in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been condensed or omitted if they substantially duplicate the disclosures contained in our annual audited consolidated financial statements. Additionally, the year-end condensed consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed on March 29, 2023. The condensed consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future annual or interim period.

In the opinion of management, all adjustments considered necessary for the fair presentation of the Company’s financial position and its results of operations in accordance with U.S. GAAP (consisting of normal recurring adjustments) have been included in the accompanying unaudited condensed consolidated financial statements.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Certain comparative amounts have been reclassified to conform with the current period presentation. The common stock of Snail Games USA Inc., as of June 30, 2022, has been reclassified as Class A common stock as the stockholders of the Snail Games USA Inc. common stock had their shares converted to Class A shares of Snail Inc. during the reorganization transaction that occurred amongst a common controlled group. For more information regarding the reorganization transaction see Note 20 - Equity.

During the six months ended June 30, 2023, certain comparative amounts have been reclassified due to immaterial errors identified by the Company in its presentation of certain server hosting costs. During the three months ended June 30, 2023, the Company began reporting all of its server hosting costs as costs of revenue whereas they were previously reported within both cost of sales and general and administrative expenses. The Company has assessed the materiality of these errors on its prior annual and interim financial statements, assessing materiality both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) No. 99 and SAB No. 108 and concluded that the errors were not material to those consolidated financial statements. However, to correctly present cost of revenues, gross profit and general and administrative expenses, the reclassifications have been made throughout this report and accompanying note disclosures. The effects on the related captions in the condensed consolidated statements of operations and comprehensive income (loss) for all previously reported periods were as follows:

	For the three months ended March 31, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	14,889,017	$	824,798		$	15,713,815
Gross profit		13,165,574		(824,798	)		12,340,776
General and administrative		5,620,010		(824,798	)		4,795,212

	For the three months ended June 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	11,386,885	$	872,629		$	12,259,514
Gross profit		4,076,637		(872,629	)		3,204,008
General and administrative		5,123,511		(872,629	)		4,250,882

	For the six months ended June 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	26,275,902	$	1,697,427		$	27,973,329
Gross profit		17,242,211		(1,697,427	)		15,544,784
General and administrative		10,743,521		(1,697,427	)		9,046,094

	For the three months ended September 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	11,468,961	$	955,106		$	12,424,067
Gross profit		4,145,210		(955,106	)		3,190,104
General and administrative		5,434,013		(955,106	)		4,478,907

	For the nine months ended September 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	37,744,863	$	2,652,533		$	40,397,396
Gross profit		21,387,421		(2,652,533	)		18,734,888
General and administrative		16,177,534		(2,652,533	)		13,525,001

	For the twelve months ended December 31, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	49,507,888	$	3,613,788		$	53,121,676
Gross profit		24,936,253		(3,613,788	)		21,322,465
General and administrative		22,327,746		(3,613,788	)		18,713,958

	For the three months ended March 31, 2023
	As reported		Adjustment			As adjusted
Cost of revenues	$	9,816,397	$	1,044,540		$	10,860,937
Gross profit		3,642,091		(1,044,540	)		2,597,551
General and administrative		5,570,291		(1,044,540	)		4,525,751

The condensed consolidated financial statements include the accounts of Snail, Inc. and the following subsidiaries:

	Equity %
Subsidiary Name	Owned
Snail Games USA Inc.		100	%
Snail Innovation Institute		70	%
Frostkeep Studios, Inc.		100	%
Eminence Corp		100	%
Wandering Wizard, LLC		100	%
Donkey Crew, LLC		99	%
Interactive Films, LLC		100	%
Project AWK Productions, LLC		100	%
BTBX.IO, LLC		70	%

All intercompany accounts, transactions, and profits have been eliminated upon consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and the accompanying notes. Such estimates include revenue recognition, provisions for credit losses, deferred income tax assets and associated valuation allowances, deferred revenue, income taxes, valuation of intangibles, including those with related parties, impairment of intangible assets, stock-based compensation and fair value of warrants. These estimates generally involve complex issues and require management to make judgments, involve analysis of historical and future trends that can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from estimates.

Segment Reporting

The Company has one operating and reportable segment. Our operations involve similar products and customers worldwide. Revenue earned is primarily derived from the sale of software titles, which are developed internally or licensed from related parties. Financial information about our segment and geographic regions is included in Note 3 – Revenue from Contracts with Customers.

Liquidity and Going Concern

The Company incurred a net loss of $7.1 million and negative cash flows of $15.2 million for the six months ended June 30, 2023. As of June 30, 2023, the Company had cash and cash equivalents of $3.0 million, restricted cash and cash equivalents of $1.1 million and current debt of $9.0 million.

As of June 30, 2023, the Company’s 2021 Revolving Loan (as defined below) and 2022 Short Term Note (as defined below) of $6.0 million and $2.9 million are due in December 2023 and January 2024, respectively. Management intends to renegotiate with the lender to extend the maturity date of the 2021 Revolving Loan. However, there is no guarantee that management will be able to renegotiate the terms of the 2021 Revolving Loan with its lender on terms acceptable to the Company or at all. Additionally, management plans to repay the outstanding amounts under the 2022 Short Term Note pursuant to the terms of the 2022 Short Term Note agreement and to secure an additional debt arrangement. Currently, management expects that the Company will not be in compliance with its quarterly debt covenant for the three months ending September 30, 2023. Management is working with the lender to resolve the expected non-compliance with the debt covenant.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company may need to raise additional capital. The need for additional capital depends on many factors, including, among other things, whether the Company can successfully renegotiate the terms of its debt arrangements, the rate at which the Company’s business grows, demands for working capital, revenue generated from existing DLCs and game titles and launches of new DLCs and new game titles, and any acquisitions that the Company may pursue. From time to time, the Company could be required, or may otherwise attempt, to seek additional sources of capital, including, but not limited to, equity and/or debt financings. The Company cannot provide assurance that it will be able to successfully access any such equity or debt financings or that the required equity or debt financings would be available on terms acceptable to the Company, if at all, or that any such financings would not be dilutive to its stockholders.

The Company’s recent net loss, level of cash used in operations, debt obligations coming due in less than 12 months, potential need for additional capital, and the uncertainties surrounding its ability to raise additional capital and renegotiate its debt arrangements raise substantial doubt about its ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

In order for the Company to continue operations beyond the next 12 months and be able to discharge its liabilities and commitments in the normal course of business, the Company must re-establish profitable operations in order to generate cash from operations by increasing revenue or controlling or potentially reducing expenses, renegotiate the terms of its debt arrangements, or obtain additional funds when needed.

DUE FROM SHAREHOLDER (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
DUE FROM SHAREHOLDER (Details Narrative) - USD ($)	Apr. 26, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Dividend paid	$ 94,934,400				$ 94,934,400
Accrued interest		$ 0	$ 130,197	$ 0	$ 580,878
Snail Digital Technology Co [Member]
Due from shareholder assigned to related party	94,934,400
Dividend paid	$ 94,934,400
Related Party [Member]
Due from other related parties						$ 0
Receivables from Stockholder [Member]
Related party transaction, rate				2.00%

SCHEDULE OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)	3 Months Ended					6 Months Ended		9 Months Ended	12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022	Dec. 31, 2022
Cost of revenues		$ 10,860,937	$ 12,424,067	$ 12,259,514	$ 15,713,815		$ 27,973,329	$ 40,397,396	$ 53,121,676
Gross profit	$ 556,488	2,597,551	3,190,104	3,204,008	12,340,776	$ 3,154,039	15,544,784	18,734,888	21,322,465
General and administrative	$ 3,937,234	4,525,751	4,478,907	4,250,882	4,795,212	$ 8,462,985	9,046,094	13,525,001	18,713,958
Previously Reported [Member]
Cost of revenues		9,816,397	11,468,961	11,386,885	14,889,017		26,275,902	37,744,863	49,507,888
Gross profit		3,642,091	4,145,210	4,076,637	13,165,574		17,242,211	21,387,421	24,936,253
General and administrative		5,570,291	5,434,013	5,123,511	5,620,010		10,743,521	16,177,534	22,327,746
Revision of Prior Period, Adjustment [Member]
Cost of revenues		1,044,540	955,106	872,629	824,798		1,697,427	2,652,533	3,613,788
Gross profit		(1,044,540)	(955,106)	(872,629)	(824,798)		(1,697,427)	(2,652,533)	(3,613,788)
General and administrative		$ (1,044,540)	$ (955,106)	$ (872,629)	$ (824,798)		$ (1,697,427)	$ (2,652,533)	$ (3,613,788)

- Definition

The aggregate cost of goods produced and sold and services rendered during the reporting period.

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Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

LOAN AND INTEREST RECEIVABLE — RELATED PARTY (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2022	Feb. 28, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Subsidiary Of Suzhou Snail [Member]
Defined Benefit Plan Disclosure [Line Items]
Loan to related party		$ 200,000
Loan to related party	2.00%
Suzhou Snail [Member]
Defined Benefit Plan Disclosure [Line Items]
Amount of loan and interest receivable offset	$ 103,890
Suzhou Snail [Member] \| Snail Digital Technology Co. Ltd. [Member]
Defined Benefit Plan Disclosure [Line Items]
Loan amount and interest assumed	$ 203,890
Related Party [Member]
Defined Benefit Plan Disclosure [Line Items]
Loan and interest receivable - related party			$ 102,745		$ 102,745		$ 101,753
Interest income earned			$ 499	$ 499	$ 992	$ 745

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details)	6 Months Ended
SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details)	Jun. 30, 2023 $ / shares shares
Director [Member] \| Restricted Stock Units (RSUs) [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Outstanding, beginning balance	24,000
Outstanding, beginning balance per share \| $ / shares	$ 5.00
Outstanding, granted
Outstanding, granted per share \| $ / shares
Outstanding, vested
Outstanding, vested per share \| $ / shares
Outstanding forfeited or cancelled
Outstanding, forfeited or cancelled per share \| $ / shares
Outstanding, ending balance	24,000
Outstanding, ending balance per share \| $ / shares	$ 5.00
Outstanding, forfeited or cancelled
Employees [Member] \| Performance Shares [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Outstanding, beginning balance	1,197,552
Outstanding, beginning balance per share \| $ / shares	$ 5.00
Outstanding, granted
Outstanding, granted per share \| $ / shares
Outstanding, vested
Outstanding, vested per share \| $ / shares
Outstanding forfeited or cancelled	20,971
Outstanding, forfeited or cancelled per share \| $ / shares	$ 5.00
Outstanding, ending balance	1,176,581
Outstanding, ending balance per share \| $ / shares	$ 5.00
Outstanding, forfeited or cancelled	(20,971)

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Prepaid Expenses And Other Current Assets
Prepaid income taxes	$ 9,894,191	$ 9,822,603
Withholding refund receivable	1,886,600
Other prepaids	106,798	80,271
Other current assets	329,212	662,267
Total prepaid expenses and other current assets	$ 12,216,801	$ 10,565,141

CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS (Tables)

6 Months Ended

Jun. 30, 2023

Cash And Cash Equivalents And Restricted Cash And Cash Equivalents

SUMMARY OF COMPONENTS OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS


	2023		2022
Cash and cash equivalents	$	2,960,160	$	14,697,338
Restricted cash and cash equivalents		1,113,960		6,361,381
Cash and cash equivalents, and restricted cash and cash equivalents	$	4,074,120	$	21,058,719

SCHEDULE OF LONG TERM DEBT (Details) (Parenthetical) - USD ($)				1 Months Ended	6 Months Ended	12 Months Ended
	Jun. 21, 2023	Jan. 26, 2022	Jun. 17, 2021	Nov. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Interest rate					8.00%
Revolving Credit Facility [Member]
Short-Term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 6,000,000
Line of Credit Facility, Expiration Date	Dec. 31, 2023
Interest rate					8.00%
Debt service coverage ratio						1.5 to 1
Revolving Credit Facility [Member] \| Prime Rate [Member]
Short-Term Debt [Line Items]
Annual interest rate	0.25%
Promissory Note 2021 [Member]
Short-Term Debt [Line Items]
Debt service coverage ratio			1.5 to 1
Debt Instrument, Term			10 years
Debt instrument maturity date			Jun. 30, 2031
Promissory Note 2021 [Member] \| For the First Five Years [Member]
Short-Term Debt [Line Items]
Interest rate			3.50%
Debt Instrument, Interest Rate, Stated Percentage, Period			5 years
Debt Instrument, Description of Variable Rate Basis			6 to 10
Promissory Note 2021 [Member] \| Wall Street Journal Prime Rate [Member]
Short-Term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage, Period					5 years
Debt instrument basis spread on variable rate					0.50%
Short-Term Debt [Member]
Short-Term Debt [Line Items]
Interest rate				5.75%
Debt service coverage ratio		1.5 to 1
Debt instrument maturity date		Jan. 26, 2023
Principal payment of loan		$ 10,000,000
Debt instrument basis spread on variable rate		3.75%
Default interest rate		5.00%
Short-Term Debt [Member] \| Wall Street Journal Prime Rate [Member]
Short-Term Debt [Line Items]
Debt instrument basis spread on variable rate		0.50%		0.25%

INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF INTANGIBLE ASSETS

The following tables reflect all the intangible assets presented on the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022:

SCHEDULE OF INTANGIBLE ASSETS

	June 30, 2023
	Gross									Weighted
	Carrying		Accumulated			Impairment		Net Book		Average
	Amount		Amortization			Loss		Value		Useful Life
License rights from related parties	$	136,665,000	$	(136,338,913	)	$	—	$	326,087	3 - 5 years
License rights	$	3,000,000	$	(3,000,000	)	$	—	$	—	5 years
Intangible assets - other:
Software	$	51,784	$	(51,784	)	$	—	$	—	3 years
Trademark		10,745		(9,512	)		—		1,233	12 years
In-progress patent		270,886		—			—		270,886
Total:	$	333,415	$	(61,296	)	$	—	$	272,119

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

	December 31, 2022
	Gross									Weighted
	Carrying		Accumulated			Impairment		Net Book		Average
	Amount		Amortization			Loss		Value		Useful Life
License rights from related parties	$	136,665,000	$	(135,280,942	)	$	—	$	1,384,058	3 - 5 years
License rights	$	3,000,000	$	(3,000,000	)	$	—	$	—	5 years
Intangible assets - other:
Software	$	51,784	$	(51,784	)	$	—	$	—	3 years
Trademark		10,745		(9,110	)		—		1,635	12 years
In-progress patent		270,886		—			—		270,886
Total:	$	333,415	$	(60,894	)	$	—	$	272,521

SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS

Years ending December 31,	Amount
Remainder of 2023	$	326,489
2024		804
2025		27
2026		—
2027		—
Thereafter		270,886
Total	$	598,206

SCHEDULE OF FUTURE MINIMUM PAYMENTS OF LONG TERM DEBT (Details)	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
Remainder of 2023	$ 8,540,007
2024	499,414
2025	86,013
2026	89,115
2027	92,329
Thereafter	2,455,092
Long term debt	$ 11,761,970

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

PROPERTY, PLANT AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 10 – PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following as of June 30, 2023 and December 31, 2022:

	2023			2022
Building	$	1,874,049		$	1,874,049
Land		2,700,000			2,700,000
Building improvements		1,010,218			1,010,218
Leasehold improvements		1,537,775			1,537,775
Autos and trucks		178,695			178,695
Computer and equipment		1,821,819			1,821,819
Furniture and fixtures		411,801			411,801
Property, plant and equipment, Gross		9,534,357			9,534,357
Accumulated depreciation		(4,652,728	)		(4,419,558	)
Property, plant and equipment, net	$	4,881,629		$	5,114,799

Depreciation and amortization expense was $118,110 and $138,791 for the three months ended June 30, 2023 and 2022, respectively. Depreciation and amortization expense was $233,170 and $307,108 for the six months ended June 30, 2023 and 2022, respectively. The Company did not have any disposals during the six months ended June 30, 2023. During the six months ended June 30, 2022, the Company disposed of $11,615 in computer equipment with an accumulated depreciation of $9,182. The total loss resulting from the disposal of the assets amounted to $2,433. The Company’s subsidiary, Donkey Crew, LLC, held net property, plant and equipment outside of the United States in the amount of $6,975 and $13,569, as of June 30, 2023 and December 31, 2022, respectively.

SCHEDULE OF PREPAID EXPENSES - RELATED PARTY (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Prepaid Expenses - Related Party
Prepaid royalties	$ 582,500	$ 582,500
Prepaid licenses	7,500,000	5,000,000
Prepaid expenses - related party, ending balance	8,082,500	5,582,500
Less: short-term portion	(2,500,000)
Total prepaid expenses - related party, long-term	$ 5,582,500	$ 5,582,500

INCOME TAXES

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 16 – INCOME TAXES

The Company recognized an income tax benefit of $1,081,887 and $327,347 for the three months ended June 30, 2023 and 2022, respectively. The income tax benefit of $1,887,705 and income tax expense of $1,202,303 for the six months ended June 30, 2023 and 2022, reflects an effective tax rate of 21% and 20%, respectively. As of June 30, 2023 the Company’s effective tax rate did not differ from the federal statutory rate of 21%.

The Company assesses all positive and negative evidence in determining if, based on the weight of such evidence, a valuation allowance is required to be recorded against the deferred tax assets as of June 30, 2023. The Company has concluded that the positive evidence of reversing taxable temporary differences, indefinite lived nature of certain tax attributes on hand, level of historical taxable income, projections of future taxable income and cumulative pre-tax book income on a rolling twelve-quarter basis to outweigh the negative evidence of recent losses. Accordingly, the Company has not provided for additional valuation allowance as of June 30, 2023. The realization of the deferred tax assets is contingent upon the Company’s upcoming new game releases to generate sufficient future taxable income. In the event that negative evidence outweighs positive evidence in future periods, the Company may need to record additional valuation allowance, which could have a material impact on our financial position.

The Company and its subsidiaries currently file tax returns in the United States (federal and state) and Poland. The statute of limitations for its consolidated federal income tax returns are open for tax years ended December 31, 2019 and after. The statute of limitations for its consolidated state income tax returns are open for tax years ended December 31, 2018 and after. All tax periods for its Polish subsidiary are currently subject to examination since its inception in 2018. While the Company has historically only filed a state tax return in California, the management has accrued income tax liabilities for additional states as of June 30, 2023 and December 31, 2022, respectively and is also undergoing the Voluntary Disclosure Agreement process in additional states.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

ACCOUNTS RECEIVABLE – RELATED PARTY

6 Months Ended

Jun. 30, 2023

Accounts Receivable Related Party

ACCOUNTS RECEIVABLE – RELATED PARTY

NOTE 5 – ACCOUNTS RECEIVABLE – RELATED PARTY

Accounts receivable — related party represents receivables in the ordinary course of business attributable to certain mobile game revenues that, for administrative reasons, are collected by a related party and that the related party has not remitted back to the Company. The accounts receivable is offset by payables due to the related party for royalties, internet data center (“IDC”) and marketing costs. Accounts receivable — related party is non-interest bearing and due on demand. The related party is 100% owned and controlled by the wife of the Founder, Chief Strategy Officer and Chairman of the Company. As of June 30, 2023 and December 31, 2022, the outstanding balance of net accounts receivable from related party was as follows:


	2023			2022
Accounts receivable - related party	$	13,578,520		$	13,519,409
Less: Accounts payable - related party		(1,845,294	)		(2,175,225	)
Accounts receivable - related party, net	$	11,733,226		$	11,344,184

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

SCHEDULE OF DEFERRED REVENUE (Details) - USD ($)	6 Months Ended
SCHEDULE OF DEFERRED REVENUE (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue, beginning balance in advance of revenue recognition billing	$ 9,551,446	$ 20,280,934
Revenue recognized	(3,874,784)	(18,832,396)
Revenue deferred	3,109,186	8,102,908
Deferred revenue, ending balance	8,785,848	9,551,446
Less short term portion	(4,125,505)	(4,335,404)
Deferred revenue, long term	$ 4,660,343	$ 5,216,042

SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS (Details)	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 326,489
2024	804
2025	27
2026
2027
Thereafter	270,886
Total	$ 598,206

SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES (Details)	Jun. 30, 2023	Dec. 31, 2022
Snail Innovation Institute [Member]
Equity interest owned by the company	70.00%	70.00%
Non controlling interest held in a subsidiary	30.00%	30.00%
BTBX.IO, LLC [Member]
Equity interest owned by the company	70.00%	70.00%
Non controlling interest held in a subsidiary	30.00%	30.00%
Donkey Crew, LLC [Member]
Equity interest owned by the company	99.00%	99.00%
Non controlling interest held in a subsidiary	1.00%	1.00%

CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS

6 Months Ended

Jun. 30, 2023

Cash And Cash Equivalents And Restricted Cash And Cash Equivalents

CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS

NOTE 4 – CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS

Cash equivalents are valued using quoted market prices or other readily available market information. The Company has $1,113,960 and $6,374,368 as of June 30, 2023 and December 31, 2022, respectively, as security for the debt with a financial institution (see Note 15 — Revolving Loan, Short Term Note, and Long-Term Debt) and to secure standby letters of credit with landlords. On June 21, 2023 the Company amended its revolving loan and $5,273,391 of restricted cash and cash equivalents was released. The following table summarizes the components of the Company’s cash and cash equivalents, and restricted cash and cash equivalents as of June 30, 2023 and June 30, 2022:


	2023		2022
Cash and cash equivalents	$	2,960,160	$	14,697,338
Restricted cash and cash equivalents		1,113,960		6,361,381
Cash and cash equivalents, and restricted cash and cash equivalents	$	4,074,120	$	21,058,719

CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 21, 2023	Dec. 31, 2022	Jun. 30, 2022
Cash And Cash Equivalents And Restricted Cash And Cash Equivalents
Restricted cash and cash equivalents, noncurrent	$ 1,113,960		$ 6,374,368	$ 6,361,381
Restricted Cash and Cash Equivalents		$ 5,273,391

PRESENTATION AND NATURE OF OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SCHEDULE OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	For the three months ended March 31, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	14,889,017	$	824,798		$	15,713,815
Gross profit		13,165,574		(824,798	)		12,340,776
General and administrative		5,620,010		(824,798	)		4,795,212

	For the three months ended June 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	11,386,885	$	872,629		$	12,259,514
Gross profit		4,076,637		(872,629	)		3,204,008
General and administrative		5,123,511		(872,629	)		4,250,882

	For the six months ended June 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	26,275,902	$	1,697,427		$	27,973,329
Gross profit		17,242,211		(1,697,427	)		15,544,784
General and administrative		10,743,521		(1,697,427	)		9,046,094

	For the three months ended September 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	11,468,961	$	955,106		$	12,424,067
Gross profit		4,145,210		(955,106	)		3,190,104
General and administrative		5,434,013		(955,106	)		4,478,907

	For the nine months ended September 30, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	37,744,863	$	2,652,533		$	40,397,396
Gross profit		21,387,421		(2,652,533	)		18,734,888
General and administrative		16,177,534		(2,652,533	)		13,525,001

	For the twelve months ended December 31, 2022
	As reported		Adjustment			As adjusted
Cost of revenues	$	49,507,888	$	3,613,788		$	53,121,676
Gross profit		24,936,253		(3,613,788	)		21,322,465
General and administrative		22,327,746		(3,613,788	)		18,713,958

	For the three months ended March 31, 2023
	As reported		Adjustment			As adjusted
Cost of revenues	$	9,816,397	$	1,044,540		$	10,860,937
Gross profit		3,642,091		(1,044,540	)		2,597,551
General and administrative		5,570,291		(1,044,540	)		4,525,751

SCHEDULE OF SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

The condensed consolidated financial statements include the accounts of Snail, Inc. and the following subsidiaries:

	Equity %
Subsidiary Name	Owned
Snail Games USA Inc.		100	%
Snail Innovation Institute		70	%
Frostkeep Studios, Inc.		100	%
Eminence Corp		100	%
Wandering Wizard, LLC		100	%
Donkey Crew, LLC		99	%
Interactive Films, LLC		100	%
Project AWK Productions, LLC		100	%
BTBX.IO, LLC		70	%

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 9,534,357	$ 9,534,357
Accumulated depreciation	(4,652,728)	(4,419,558)
Property, plant and equipment, net	4,881,629	5,114,799
Building [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	1,874,049	1,874,049
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	2,700,000	2,700,000
Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	1,010,218	1,010,218
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	1,537,775	1,537,775
Trucks [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	178,695	178,695
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	1,821,819	1,821,819
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 411,801	$ 411,801

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

The Company’s revenue includes the publishing of software games delivered digitally and through physical discs (e.g., packaged goods). The Company’s digital games may include additional downloadable content that are new feature releases to digital full-game downloads. Revenue also includes sales of mobile in-app purchases that require the Company’s hosting support in order to utilize the game or related content. Such games include virtual goods that can be purchased by the end users, as desired. When control of the promised products and services is transferred to the customers, the Company recognizes revenue in the amount that reflects the consideration it expects to receive in exchange for these products and services. Revenue from delivery of products is recognized at a point in time when the end consumers download the games and the control of the license is transferred to them.

The Company recognizes revenue using the following five steps as provided by Accounting Standards Codification (“ASC”) Topic 606 Revenue from Contracts with Customers: 1) identify the contract(s) with the customer; 2) identify the performance obligations in each contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when, or as, the entity satisfies a performance obligation. The Company’s terms and conditions vary by customers and typically provide net 30 to 75 days terms.

Principal vs. Agent Consideration

The Company offers certain software products via third-party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve’s Steam, Epic Games Store, My Nintendo Store, Apple’s App Store, the Google Play Store, and retail distributors. For sales of our software products via third-party digital storefronts and retail distributor, the Company determines whether or not it is acting as the principal in the sale to the end user, which the Company considers in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that the Company uses in evaluating these sales transactions include, but are not limited to, the following:

	●	The underlying contract terms and conditions between the various parties to the transaction;

	●	Which party is primarily responsible for fulfilling the promise to provide the specified good or service; and

	●	Which party has discretion in establishing the price for the specified good or service.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Based on our evaluation of the above indicators, for sales arrangements via Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve’s Steam, Epic Games Store, My Nintendo Store, and our retail distributor, the digital platforms and distributors have discretion in establishing the price for the specified good or service and the Company has determined it is the agent in the sales transaction to the end user and therefore the Company reports revenue on a net basis based on the consideration received from the digital storefront. For sales arrangements via Apple’s App Store and the Google Play Store, the Company has discretion in establishing the price for the specified good or service and it has determined that the Company is the principal to the end user and thus reports revenue on a gross basis and mobile platform fees charged by these digital storefronts are expensed as incurred and reported within cost of revenues.

Contract Balance

The Company records deferred revenue when cash payments are received or due in advance of its performance, even if amounts are refundable.

Deferred revenue is comprised of the transaction price allocable to the Company’s performance obligation on technical support and the sale of virtual goods available for in-app purchases, and payments received from customers prior to launching the games on the platforms. The Company categorizes the virtual goods as either “consumable” or “durable.” Consumable virtual goods represent goods that can be consumed by a specific player action; accordingly, the Company recognizes revenues from the sale of consumable virtual goods as the goods are consumed and the performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the players over an extended period of time; accordingly, the Company recognizes revenues from the sale of durable virtual goods ratably over the period of time the goods are available to the player and the performance obligation is satisfied, which is generally the estimated service period, 30 to 90 days from date of activation.

The Company has a long-term title license agreement with a platform. The agreement was initially made between the parties in November 2018 and valid through December 31, 2021. The agreement was subsequently amended in June 2020 to extend the ARK 1 availability on the platform perpetually, effective January 1, 2022 and to put ARK 2 on the platform for three years upon release. The Company recognized $2.5 million in revenue related to ARK 1’s perpetual license during the six months ended June 30, 2022 and deferred $2.3 million related to ARK 2 that is included in the long-term portion of deferred revenue.

In November 2021, the Company entered an agreement with a platform to make ARK 1 available on a platform for a period of 5 weeks in exchange for $3.5 million. The platform launched the 5-week program on March 1, 2022 and the Company recognized the full amount of revenue from this contract during the period ended June 30, 2022.

Estimated Service Period

For certain performance obligations satisfied over time, the Company has determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which most faithfully depicts the timing of satisfying our performance obligation.

Shipping, Handling and Value Added Taxes (“VAT”)

The distributor, as the principal, is responsible for the shipping of the game discs to retail stores and incurring the shipping and VAT costs. The Company is paid the net sales amount after deducting shipping costs, VAT and other related expenses by the distributor.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Cost of Revenues

Cost of revenues include software license royalty fees, merchant fees, server and database center costs, game localization costs, game licenses, engine fees and amortization costs. Cost of revenues for the three and six months ended June 30, 2023 and 2022 were comprised of the following:

SCHEDULE OF COST OF REVENUES


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Software license royalties - related parties	$	1,906,786	$	3,364,849	$	4,769,799	$	9,886,027
Software license royalties		254,400		-		606,839		-
License and amortization - related parties		4,862,320		6,350,980		10,057,971		12,701,959
License and amortization		201		100,224		402		250,448
Merchant fees		348,805		596,021		808,276		1,253,557
Engine fees		292,898		502,686		717,125		1,216,679
Internet, server and data center		1,611,047		1,344,754		3,151,737		2,664,659
Costs related to advertising revenue		59,308		-		84,553		-
Total:	$	9,335,765	$	12,259,514	$	20,196,702	$	27,973,329

General and Administrative Costs

General and administrative costs include rent, salaries, stock-based compensation, legal and professional expenses, internet and server, contractor costs, insurance expense, licenses and permits, other taxes and travel expenses. These costs are expensed as they are incurred. For the three months ended June 30, 2023 and 2022, general and administrative expenses totaled $3,937,234 and $4,250,882, respectively. For the six months ended June 30, 2023 and 2022, general and administrative expenses were $8,462,985 and $9,046,094, respectively. Stock-based compensation of $216,706 and $369,301 was incurred during the three and six months ended June 30, 2023, respectively; no such compensation was incurred in the three and six months ended June 30, 2022.

Advertising and Marketing Costs

The Company expenses advertising costs as incurred. For the three months ended June 30, 2023 and 2022, advertising expenses totaled $168,292 and $212,039, respectively. For the six months ended June 30, 2023 and 2022, advertising expenses were $272,841 and $370,710, respectively.

Research and Development

Research and development costs are expensed as incurred. Research and development costs include travel, payroll, and other general expenses specific to research and development activities. Research and development costs for the three months ended June 30, 2023 and 2022 were $1,200,842 and $179,050, respectively. For the six months ended June 30, 2023 and 2022, research and development costs were $2,574,639 and $363,006, respectively. Stock-based compensation of $16,064 was incurred during the three months ended June 30, 2023; no such compensation was incurred in the three and six months ended June 30, 2022.

Non-controlling Interests

Non-controlling interests on the condensed consolidated balance sheets and condensed consolidated statements of operations and comprehensive income (loss) include the equity allocated to non-controlling interest holders. As of June 30, 2023 and December 31, 2022, there were non-controlling interests with the following subsidiaries:

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

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Cash and Restricted Cash and Cash Equivalents

Cash is available for use in current operations or other activities such as capital expenditures and business combinations. Restricted cash and cash equivalents are time deposits, that are currently provided as a standby letter of credit to landlords.

Restricted Escrow Deposits

Our restricted deposits held in escrow are to provide a source of funding for certain indemnification obligations of Snail, Inc. to our underwriters in connection with our IPO. The deposit and related interest earnings are restricted for one year from the IPO date.

Accounts Receivable

The Company generally records a receivable related to revenue when it has an unconditional right to invoice and receive payment. Accounts receivable are carried at original invoice amount less an allowance made for credit losses. The Company uses a combination of quantitative and qualitative factors to estimate the allowance, including an analysis of the customers’ creditworthiness, historical experience, age of current accounts receivable balances, changes in financial condition or payment terms of our customers, and reasonable forecasts of the collectability of the accounts receivable. The Company evaluates the allowance for credit losses on a periodic basis and adjusts it as necessary based on the risk factors mentioned above. Any increase in the provision for credit losses is recorded as a charge to general and administrative expense in the current period. Any amounts deemed uncollectible are written off against the allowance for credit losses. Management judgment is required to estimate our allowance for credit losses in any accounting period. The amount and timing of our credit losses and cash collection could change significantly because of a change in any of the risk factors mentioned above.

Fair Value Measurements

The Company follows FASB ASC Topic 820, Fair Value Measurements. ASC 820 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.

ASC 820 establishes a hierarchy of valuation inputs based on the extent to which the inputs are observable in the marketplace. Observable inputs reflect market data obtained from sources independent of the reporting entity and unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value.

The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by the Company for financial instruments measured at fair value.

The three levels of inputs are as follows:

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

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

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

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our financial instruments include cash and cash equivalents, restricted cash and cash equivalents, short-term financial instruments, short-term loans, accounts receivable and accounts payable. The carrying values of these financial instruments approximate their fair value due to their short maturities. The carrying amount of our debt approximates fair value because the interest rates on these instruments approximate the interest rate on debt with similar terms available to us for a similar duration except for the Company’s promissory note which has a fixed rate for 5 years, then a floating rate that approximates the Wall Street Journal Prime Rate plus 0.50%. The Company considers the carrying amount of the loan to approximate fair value as the discounted cost in comparison to market rates would not be materially different than the cost to acquire a loan with similar terms. The Company does not have any other assets or liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2023 and December 31, 2022.

Amortizable Intangibles and Other Long-lived Assets

The Company’s long-lived assets and other assets consisting of property, plant and equipment and purchased intangible assets, are reviewed for impairment in accordance with the guidance of Financial Accounting Standards Board (“FASB”) Topic ASC 360, Property, Plant, and Equipment. Intangible assets subject to amortization are carried at cost less accumulated amortization and amortized over the estimated useful life in proportion to the economic benefits received. The Company evaluates the recoverability of definite-lived intangible assets and other long-lived assets in accordance with ASC Subtopic 360-10, which generally requires the assessment of these assets for recoverability when events or circumstances indicate a potential impairment exists. The Company considers certain events and circumstances in determining whether the carrying value of identifiable intangible assets and other long-lived assets, other than indefinite lived intangible assets, may not be recoverable including, but not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; and changes in the Company’s business strategy. If the Company determines that the carrying value may not be recoverable, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group to determine whether an impairment exists. If an impairment is indicated based on a comparison of the asset groups’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. There can be no assurance, however, that market conditions will not change or demand for the Company’s products under development will continue. Either of these could result in future impairment of long-lived assets. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our consolidated reporting results and financial positions.

Income Taxes

Income taxes are provided for the tax effects of transactions reported in the condensed consolidated financial statements and consisted of taxes currently due and deferred taxes. Deferred taxes are recognized for the differences between the basis of assets and liabilities for financial statement and income tax purposes.

The Company follows FASB Topic ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the condensed consolidated financial statements or tax returns.

Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

FASB ASC 740-10-25 provides criteria for the recognition, measurement, presentation, and disclosure of uncertain tax positions. The Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the condensed consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company recognizes liabilities for uncertain tax positions pursuant to FASB ASC 740-10-25. Such amounts are included in the current and long-term accrued expenses on the accompanying condensed consolidated balance sheets in the amount of $457,024 as of June 30, 2023 and December 31, 2022. The Company accrues and recognizes interest and penalties related to unrecognized tax benefits in operating expenses.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Concentration of Credit Risk and Significant Customers

The Company maintains cash balances at several major financial institutions. While the Company attempts to limit credit exposure with any single institution, balances often exceed insurable amounts. As of June 30, 2023 and December 31, 2022, the Company had deposits of $3,333,946 and $17,929,308, respectively, that were not insured by the Federal Deposit Insurance Corporation and are included in the cash and cash equivalents, restricted escrow deposit and restricted cash and cash equivalents, in the accompanying condensed consolidated balance sheets.

The Company extends credit to various digital resellers and partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. The Company performs ongoing credit evaluations of customers and maintains reserves for potentially uncollectible accounts. As of June 30, 2023 and December 31, 2022, the Company had three customers who accounted for approximately 68% and two customers who accounted for approximately 57% of consolidated gross receivables, respectively. Among the three customers as of June 30, 2023 and two customers as of December 31, 2022, each customer accounted for 29%, 25% and 14% as of June 30, 2023, and 29% and 28% as of December 31, 2022 of the consolidated gross receivables outstanding. During the three months ended June 30, 2023 and 2022, approximately 52% and 59%, respectively, of net revenue was derived from these customers. During the six months ended June 30, 2023 and 2022, approximately 56% and 61%, respectively of net revenue was derived from these customers. The loss of these customers or declines in the forecasts of their accounts receivable collectability would have a significant impact on the Company’s financial performance.

As of June 30, 2023 and December 31, 2022, the Company had three vendors who accounted for approximately 79% and two vendors who accounted for approximately 55% of consolidated gross payables, respectively. Among the three vendors as of June 30, 2023 and December 31, 2022, each vendor accounted for 55%, 13% and 11% as of June 30, 2023, and 43% and 12% as of December 31, 2022 of our consolidated gross payables outstanding. The loss of these vendors could have a significant impact on the Company’s financial performance and regulatory compliance.

The Company had one vendor, SDE Inc. (“SDE”), a related party, that accounted for 44% and 44% of the Company’s combined cost of revenues and operating expenses during the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, SDE accounted for 51% and 49% of the Company’s combined cost of revenues and operating expenses, respectively. Amounts payable to SDE are netted with receivables from them and presented as accounts receivable - related party in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022. The loss of SDE as a vendor would significantly and adversely affect the Company’s core business.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, which replaces the incurred loss impairment methodology in current US GAAP with a methodology that requires the reflection of expected credit losses and also requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. For most financial instruments, the standard requires the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which generally results in the earlier recognition of credit losses on financial instruments. The Company adopted ASC 2016-13 on January 1, 2023. The impact of adopting the new standard did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to simplify the application of GAAP for certain financial instruments with characteristics of liabilities and equity. The FASB decided to eliminate certain accounting models to simplify the accounting for convertible instruments, reduce complexity for preparers and practitioners, and improve the decision usefulness and relevance of the information provided to financial statement users. The GASB also amended the guidance for derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusion and amended the related earnings per share guidance. The Company has elected to delay implementation of this standard until January 1, 2024 based on its emerging growth status. The impact of adopting the new accounting standard is being evaluated.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Employee Savings Plans

The Company maintains a 401(k) for its United States based employees. The plan is offered to all eligible employees to make voluntary contributions. Employer contributions to the plan are reported under general and administrative costs in the amounts of $24,769 and $13,914 for the three months ended June 30, 2023 and 2022, and $51,388 and $27,096 for the six months ended June 30, 2023 and 2022, respectively.

Stock-Based Compensation

The Company recognizes compensation cost for stock-based awards to employees based on the awards’ estimated grant-date fair value using a straight-line approach over the service period for which such awards are expected to vest. The Company accounts for forfeitures as they occur. The Company issued restricted stock units (“Restricted Stock Units” or “restricted stock units”) during the year ended December 31, 2022. The fair value of Restricted Stock Units is determined based on the quoted market price of our common stock on the date of grant.

The Company’s 2022 Omnibus Incentive Plan (the “2022 Plan”) became effective upon the consummation of the IPO. The 2022 Omnibus Incentive allows us to grant options to purchase our common stock and to grant stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards and other cash-based awards and other stock-based awards to our employees, officers, and directors, up to a maximum of 5,718,000 shares. Stock options may be granted to employees and officers and non-qualified options may be granted to employees, officers, and directors, at not less than the fair market value on the date of grant. The number of shares of common stock available for issuance under the 2022 Plan will be increased annually on the first day of each fiscal year during the term of the 2022 Plan, beginning with the 2023 fiscal year, by an amount equal to the lesser of (a) 5,718,000 shares, (b) 1% of the shares of the Company’s Class B common stock outstanding (on a fully diluted basis) on the final day of the immediately preceding calendar year or (c) such smaller number of shares as determined by the Company’s board of directors. As of June 30, 2023, there were 4,517,419 shares reserved for issuance under the 2022 Plan.

Restricted Stock Units

The Company granted restricted stock units under our 2022 Omnibus Incentive Plan to employees and directors. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units is typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions.

Warrants

In connection with the IPO, offering costs related to legal, accounting, and underwriting costs were net with the proceeds and recorded as a reduction in additional paid in capital, in the stockholders’ equity section of the condensed consolidated balance sheets. The Company also issued Underwriters Warrants (as defined below) for services provided during the IPO to purchase 120,000 shares of Class A common stock. The Underwriters Warrants are accounted for as equity instruments and are included in the stockholders’ equity section of the condensed consolidated balance sheets. The fair value of the Underwriters Warrants has been estimated using the Black-Scholes option pricing model.

Share Repurchase Program

On November 10, 2022, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to $5 million of outstanding shares of Class A common stock of the Company, subject to ongoing compliance with the Nasdaq listing rules. The program does not have a fixed expiration date. Repurchased shares are accounted for at cost and reported as a reduction of equity in the condensed consolidated balance sheets under treasury stock. No treasury stock was sold during the three and six months ended June 30, 2023. As of June 30, 2023, 1,350,275 shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $3.7 million. The average price paid per share was $2.72 and approximately $1.3 million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Earnings (Loss) Per Share

Earnings (loss) per share (“EPS”) is calculated by dividing the net income (loss) that is applicable to the common stockholders for the period by the weighted average number of shares of common stock during that period. The diluted EPS for the period is calculated by dividing the net income (loss) applicable to common stockholders for the period by the weighted average number of shares of common stock and common stock equivalents outstanding during the period. The Company’s common stock equivalents are measured using the treasury stock method and represent unvested restricted stock units and warrants. The Company issues two classes of common stock with differing voting rights, and as such, reports EPS using the dual class method. For comparative purposes the Company has presented EPS for the three and six months ended June 30, 2022 using the number of shares exchanged in the reorganization of the Company as the denominator. For more information see Note 19 – Earnings (Loss) Per Share.

Dividend Restrictions

Our ability to pay cash dividends is currently restricted by the terms of our credit facilities.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ (7,056,492)	$ 4,819,936
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization - loan origination fees	20,726	12,557
Depreciation and amortization - property and equipment	233,170	307,108
Stock-based compensation expense	385,365
Gain on lease termination		(122,533)
Gain on paycheck protection program and economic injury disaster loan forgiveness		(174,436)
Loss on disposal of fixed assets		2,433
Interest income from shareholder loan		(580,878)
Interest income from restricted escrow deposit	(21,389)
Deferred taxes	(1,887,705)
Changes in assets and liabilities:
Accounts receivable	1,794,458	4,730,110
Accounts receivable - related party	(389,042)	(2,505,580)
Prepaid expenses - related party	(2,500,000)	(4,375,000)
Prepaid expenses and other current assets	234,940	(984,632)
Other noncurrent assets	(2,903)	(15,944)
Accounts payable	(701,488)	1,323,972
Accounts payable - related party	(307,052)	(222,536)
Accrued expenses	1,131,886	363,240
Interest receivable - related parties	(992)
Interest payable - related parties		1,994
Lease liabilities	(98,822)	(69,188)
Deferred revenue	(765,599)	(3,021,554)
Net cash (used in) provided by operating activities	(8,872,566)	3,441,476
Cash flows from investing activities:
Purchases of property and equipment		(5,256)
Repayment on Pound Sand note		1,496,063
Net cash provided by investing activities		1,490,807
Cash flows from financing activities:
Repayments on promissory note	(46,517)	(38,759)
Repayments on short-term note	(2,916,666)	(2,083,333)
Repayments on revolving loan	(3,000,000)
Borrowings on short-term note		10,000,000
Payments on paycheck protection program and economic injury disaster loan		(90,198)
Refund of payments on paycheck protection program and economic injury disaster loan		48,305
Cash dividend declared and paid		(8,200,000)
Purchase of treasury stock	(257,093)
Payments of offering costs in accounts payable	(92,318)
Net cash used in financing activities	(6,312,594)	(363,985)
Effect of currency translation on cash and cash equivalents	21,095	(63,694)
Net (decrease) increase in cash and cash equivalents, and restricted cash and cash equivalents	(15,164,065)	4,504,604
Cash and cash equivalents, and restricted cash and cash equivalents - beginning of period	19,238,185	16,554,115
Cash and cash equivalents, and restricted cash and cash equivalents – end of period	4,074,120	21,058,719
Cash paid during the period for:
Interest	568,908	339,710
Income taxes	270,802	828,012
Noncash transactions during the period for:
Loan and interest payable - related parties		103,890
Loan and interest receivable - related parties		(103,890)
Loan and interest from shareholder		94,934,400
Dividend distribution		(94,934,400)
Noncash finance activity during the period for:
Refund of dividend withholding tax overpayment	1,886,600
Gain on paycheck protection program and economic injury disaster loan forgiveness		(174,436)
License [Member]
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization - intangible assets		250,000
License Rights, Related Parties [Member]
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization - intangible assets	1,057,971	3,701,959
Other Intangible Assets [Member]
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization - intangible assets	$ 402	$ 448

SUMMARY OF COMPONENTS OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Cash And Cash Equivalents And Restricted Cash And Cash Equivalents
Cash and cash equivalents	$ 2,960,160	$ 12,863,817	$ 14,697,338
Restricted cash and cash equivalents	1,113,960	6,374,368	6,361,381
Cash and cash equivalents, and restricted cash and cash equivalents	$ 4,074,120	$ 19,238,185	$ 21,058,719	$ 16,554,115

ACCOUNTS PAYABLE — RELATED PARTY

6 Months Ended

Jun. 30, 2023

Accounts Payable Related Party

ACCOUNTS PAYABLE — RELATED PARTY

NOTE 12 – ACCOUNTS PAYABLE — RELATED PARTY

Accounts payable due to related party represents payables in the ordinary course of business primarily for purchases of game distribution licenses and also the royalties due to Suzhou Snail. As of June 30, 2023 and December 31, 2022, the Company had $19,611,207 and $19,918,259, respectively, as accounts payable due to Suzhou Snail. During the three months ended June 30, 2023 and 2022, the Company incurred $70,425 and $98,573, respectively as license costs due to Suzhou Snail and included in cost of revenues. During the six months ended June 30, 2023 and 2022, the Company incurred $142,948 and $222,033, respectively as license costs due to Suzhou Snail and included in cost of revenues. During the six months ended June 30, 2023 and 2022, respectively, there were $450,000 and $444,263 in payments to Suzhou Snail for royalties. There were no license cost payments made to Suzhou Snail during the three months ended June 30, 2023 and 2022, respectively.

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)			6 Months Ended
	Mar. 14, 2023	Feb. 27, 2023	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Amount of bond to support an award of costs and fees		$ 3,000,000.0
Amount of bond			$ 750,000
Damages value	$ 3,000,000
Security deposit	$ 130,000

ACCOUNTS RECEIVABLE – RELATED PARTY (Details Narrative)	6 Months Ended
ACCOUNTS RECEIVABLE – RELATED PARTY (Details Narrative)	Jun. 30, 2023
Immediate Family Member of Management or Principal Owner [Member]
Defined Benefit Plan Disclosure [Line Items]
Ownership percentage	100.00%

SCHEDULE OF TERMINATIONS OPERATING LEASE (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	$ (3,032,069)		$ (3,606,398)
Operating Lease, Liability, Current	1,437,140		1,371,227
Operating Lease, Liability, Noncurrent	2,191,465		$ 2,930,529
Gain (Loss) on Termination of Lease		$ 122,533
Lease Terminated And Expired [Member]
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	(1,301,571)
Operating Lease, Right-of-Use Asset, Periodic Reduction	907,370
Operating Lease, Liability, Current	442,704
Operating Lease, Liability, Noncurrent	74,030
Gain (Loss) on Termination of Lease	$ 122,533	$ 122,533

PREPAID EXPENSES - RELATED PARTY (Details Narrative) - USD ($)	Mar. 10, 2023	Jun. 30, 2023	Dec. 31, 2022
Amount prepaid in advance	$ 5,000,000.0
Maximum amount payable	$ 5,000,000.0
Prepaid expenses license rights		$ 7,500,000	$ 5,000,000
ARK I [Member]
Prepaid expenses license rights		$ 2,500,000
ARK II [Member]
Prepaid expenses license rights			$ 5,000,000

EARNINGS (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

SCHEDULE OF EARNINGS PER SHARE

		1			2			3			4
	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022
Basic Earnings Per Share:
Net (loss) income attributable to Class A common stockholders	$	(879,665	)	$	(1,054,297	)	$	(1,522,005	)	$	4,756,760
Net (loss) attributable to Class B common stockholders		(3,199,766	)		-			(5,528,804	)		-
Net income (loss) attributable to common stockholders		(3,199,766	)		-			(5,528,804	)		-
Total net (loss) income attributable to Snail Inc and Snail Games USA Inc.	$	(4,079,431	)	$	(1,054,297	)	$	(7,050,809	)	$	4,756,760
Class A weighted average shares outstanding - basic		7,901,145			35,000,000			7,914,096			35,000,000
Class B weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
Class A and B basic earnings per share	$	(0.11	)	$	(0.03	)	$	(0.19	)	$	0.14

Diluted Earnings Per Share:
Net (loss) income attributable to Class A common stockholders	$	(879,665	)	$	(1,054,297	)	$	(1,522,005	)	$	4,756,760
Net (loss) attributable to Class B common stockholders	$	(3,199,766	)	$	-		$	(5,528,804	)	$	-
Net income (loss) attributable to common stockholders	$	(3,199,766	)	$	-		$	(5,528,804	)	$	-
Class A weighted average shares outstanding - basic		7,901,145			35,000,000			7,914,096			35,000,000
Dilutive effects of common stock equivalents		-			-			-			-
Class A weighted average shares outstanding - diluted		7,901,145			35,000,000			7,914,096			35,000,000
Class B weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
Weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
Dilutive effects of common stock equivalents		-			-			-			-
Class B weighted average shares outstanding - diluted		28,748,580			-			28,748,580			-
Weighted average shares outstanding - diluted		28,748,580			-			28,748,580			-
Diluted (loss) earnings per Class A and B share	$	(0.11	)	$	(0.03	)	$	(0.19	)	$	0.14

EQUITY (Details Narrative)		3 Months Ended		6 Months Ended
EQUITY (Details Narrative)	Nov. 09, 2022 shares $ / shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Integer $ / shares shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 shares
Class of Stock [Line Items]
Number of shares of common stock issued as per agreement \| Integer				2
Number of share repurchased \| shares		1,350,275		1,350,275		1,197,649
Stock based compensation \| $		$ 216,706	$ 0	$ 369,301	$ 0
Stock based compensation \| $		16,064
Deferred income tax benefit related to our stock-based compensation expense \| $		50,801	$ 0	82,877	$ 0
Research And Development [Member]
Class of Stock [Line Items]
Stock based compensation \| $		16,064		0
Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Stock based compensation \| $		369,301		216,706
Total unrecognized compensation cost \| $		$ 1,600,000		$ 1,600,000
Total unrecognized compensation cost expected to be recognized over a weighted-average service period				2 years 9 months 18 days
Restricted Stock Units (RSUs) [Member] \| Director [Member]
Class of Stock [Line Items]
Vesting period				1 year
Performance Shares [Member] \| Employees [Member]
Class of Stock [Line Items]
Vesting period				5 years
Common Class A [Member]
Class of Stock [Line Items]
Number of votes per share \| Integer				1
Number of Class A share issuable upon conversion \| Integer				1
IPO, net of offering costs (in shares) \| shares	6,251,420
Number of share repurchased \| shares		1,350,275		1,350,275
Aggregate purchase price \| $		$ 3,700,000		$ 3,700,000
Average price paid per share \| $ / shares				$ 2.72
Aggregate purchase price \| $		$ 1,300,000		$ 1,300,000
Common Class A [Member] \| Snail Inc [Member]
Class of Stock [Line Items]
Percent of issue price at IPO price	125.00%
Issue price per share \| $ / shares	$ 6.25
Warrants term	3 years
Common Class A [Member] \| Underwriting Agreement [Member]
Class of Stock [Line Items]
Percentage of warrants issued	400.00%
Number of warrants issued to purchase common stock \| shares	120,000
Weighted average expected volatility (in percent)	53.00%
Discount rate (in percent)	4.49%
Remaining term (in years)	3 years
Common Class A [Member] \| IPO [Member]
Class of Stock [Line Items]
Number of shares of common stock issued as per agreement \| shares	3,000,000
Price per share \| $ / shares	$ 4.675
IPO, net of offering costs (in shares) \| shares	3,000,000
Common Class A [Member] \| Over-Allotment Option [Member]
Class of Stock [Line Items]
Price per share \| $ / shares	$ 4.675
IPO, net of offering costs (in shares) \| shares	450,000
Common Class B [Member]
Class of Stock [Line Items]
Number of votes per share \| Integer				10
IPO, net of offering costs (in shares) \| shares	28,748,580

OPERATING LEASE RIGHT-OF-USE ASSETS

6 Months Ended

Jun. 30, 2023

Operating Lease Right-of-use Assets

OPERATING LEASE RIGHT-OF-USE ASSETS

NOTE 17 – OPERATING LEASE RIGHT-OF-USE ASSETS

The Company’s right-of-use assets represent arrangements related primarily to office facilities used in the ordinary business operations of the Company and its subsidiaries. In April, 2018, a commercial bank issued an irrevocable standby letter of credit on behalf of the Company to the landlord for $1,075,000 to lease office space. The standby letter of credit was valid for a one-year term and was amended in January 2021 to extend to January 31, 2026. As of June 30, 2023 and December 31, 2022, the Company’s net operating lease right-of-use assets amounted to $3,032,069 and $3,606,398, respectively. The Company had variable lease payments of approximately $15,295 and $8,684 during the three months ended June 30, 2023 and 2022, respectively. Variable lease payments were $39,805 and $27,017 during the six months ended June 30, 2023 and 2022, respectively, which consisted primarily of common area maintenance charges and administrative fees. During the six months ended June 30, 2022 the Company terminated one of its lease contracts and recognized a gain on the lease termination of $122,533. There was no such termination during the six months ended June 30, 2023. The effect of the termination on the related lease asset and liability were as follows:

	Right of			Accumulated		Lease Liability				Gain on
	Use Asset			Amortization		Current		Long Term		Termination
Lease Terminations	$	(1,301,571	)	$	907,370	$	442,704	$	74,030	$	122,533

Operating lease costs included in the general and administrative expenses in our condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2023 and 2022, are as follows:

SCHEDULE OF OPERATING LEASE COSTS

	2023		2022		2023		2022
	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Operating lease costs	$	381,300	$	424,098	$	778,862	$	815,958
Short term lease costs		-		-		-		-
Total operating lease costs	$	381,300	$	424,098	$	778,862	$	815,958

Supplemental information related to operating leases for lease liabilities as of June 30, 2023 and June 30, 2022 is as follows:

	2023			2022
Cash paid for amounts included in the measurement of lease liabilities	$	770,508		$	747,474
Weighted average remaining lease term		2.4 years			3.4 years
Weighted average discount rate		5.00	%		5.00	%

Future undiscounted lease payments for operating leases and a reconciliation of these payments to our operating lease liabilities as of June 30, 2023 are as follows:

	Future lease payments		Imputed Interest		Lease Liabilities
Years ending December 31,	Amount
Remainder of 2023	$	778,382	$	80,306	$	698,076
2024		1,610,844		105,810		1,505,034
2025		1,453,785		28,290		1,425,495
Thereafter		—		—		—
Total future lease payments	$	3,843,011	$	214,406	$	3,628,605

DUE FROM SHAREHOLDER

6 Months Ended

Jun. 30, 2023

Due From Shareholder

DUE FROM SHAREHOLDER

NOTE 6 – DUE FROM SHAREHOLDER

Other receivables from related party consisted of monies that the Company lent to the Company’s Founder, Chief Strategy Officer and Chairman, who is also the majority shareholder of Suzhou Snail. The loan bore 2.0% per annum interest. On April 26, 2022, the Company, with approval from its Board of Directors and in accordance with applicable laws and regulations, assigned the other receivables – related party (“due from shareholder” or the “Shi Loan”) of $94,934,400 outstanding including interest, to Suzhou Snail, which assumed the loan as creditor. Simultaneously, the Company declared and paid Suzhou Snail an in-kind dividend with an aggregate amount equal to $94,934,400 on April 26, 2022; see Note 7 – Dividend Distribution. As of December 31, 2022, the other receivable was $0 and no longer reflected on the Company’s consolidated balance sheets. The loan accrued interest of $0 and $130,197 during the three months ended June 30, 2023 and 2022 respectively. During the six months ended June 30, 2023 and 2022, the loan accrued interest of $0 and $580,878, respectively. The earned interest is reported in interest income – related parties in the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Defined Benefit Plan Disclosure [Line Items]

Revenues, net

$ 9,892,253

$ 15,463,522

$ 23,350,741

$ 43,518,113

Cost of revenues

9,335,765

12,259,514

20,196,702

27,973,329

Gross profit

556,488

3,204,008

3,154,039

15,544,784

Operating expenses:

General and administrative

3,937,234

4,250,882

8,462,985

9,046,094

Research and development

1,200,842

179,050

2,574,639

363,006

Advertising and marketing

168,292

212,039

272,841

370,710

Depreciation and amortization

118,110

138,791

233,170

307,108

Total operating expenses

5,424,478

4,780,762

11,543,635

10,086,918

(Loss) income from operations

(4,867,990)

(1,576,754)

(8,389,596)

5,457,866

Other income (expense):

Other income

296,969

8,175

299,653

Foreign currency transaction (loss) gain

(21,845)

7,916

(24,212)

5,510

Total other (expense) income, net

(297,792)

265,576

(554,601)

564,373

(Loss) income before (benefit from) provision for income taxes

(5,165,782)

(1,311,178)

(8,944,197)

6,022,239

(Benefit from) provision for income taxes

(1,081,887)

(327,347)

(1,887,705)

1,202,303

Net (loss) income

(4,083,895)

(983,831)

(7,056,492)

4,819,936

Net (loss) income attributable to non-controlling interests

(4,464)

70,466

(5,683)

63,176

Net (loss) income attributable to Snail, Inc. and Snail Games USA Inc.

(4,079,431)

(1,054,297)

(7,050,809)

4,756,760

Comprehensive income statement:

Other comprehensive income (loss) related to currency translation adjustments, net of tax

18,707

(31,199)

21,027

(82,402)

Total comprehensive (loss) income

$ (4,060,724)

$ (1,085,496)

$ (7,029,782)

$ 4,674,358

(Loss) income per share attributable to Class A and B common stockholders:

Basic

$ (0.11)

$ (0.03)

$ (0.19)

$ 0.14

Diluted

$ (0.11)

$ (0.03)

$ (0.19)

$ 0.14

Common Class A [Member]

Net loss attributable to Class B common stockholders:

Basic

$ (879,665)

$ (1,054,297)

$ (1,522,005)

$ 4,756,760

Diluted

$ (879,665)

$ (1,054,297)

$ (1,522,005)

$ 4,756,760

Weighted-average shares used to compute income per share attributable to Class B common stockholders:

Basic

^[1]

7,901,145

35,000,000

7,914,096

35,000,000

Diluted

^[1]

7,901,145

35,000,000

7,914,096

35,000,000

Common Class B [Member]

Net loss attributable to Class B common stockholders:

Basic

$ (3,199,766)

$ (5,528,804)

Diluted

$ (3,199,766)

$ (5,528,804)

Weighted-average shares used to compute income per share attributable to Class B common stockholders:

Basic

28,748,580

Diluted

28,748,580

Nonrelated Party [Member]

Other income (expense):

Interest income - related parties

$ 19,791

$ 17,705

$ 51,264

$ 33,077

Interest expense - related parties

(296,237)

(186,213)

(590,820)

(352,268)

Related Party [Member]

Other income (expense):

Interest income - related parties

499

130,695

992

581,623

Interest expense - related parties

$ (1,496)

$ (3,222)

[1]	The shares used for the denominator in the calculation of EPS are the number of shares transferred in the reorganization transaction for comparative purposes. Snail Games USA Inc. did not have Class A common stock as of June 30, 2022.

EQUITY (Tables)

6 Months Ended

Jun. 30, 2023

Director [Member]

Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY

	Restricted Stock Units		Weighted-Average Grant-Date Fair Values
Outstanding as of January 1, 2023		24,000	$	5.00
Granted		—		—
Vested		—		—
Forfeited or cancelled		—		—
Outstanding as of June 30, 2023		24,000	$	5.00

Employee Stock [Member]

Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY

	Restricted Stock Units			Weighted-Average Grant-Date Fair Values
Outstanding as of January 1, 2023		1,197,552		$	5.00
Granted		—			—
Vested		—			—
Forfeited or cancelled		(20,971	)		5.00
Outstanding as of June 30, 2023		1,176,581		$	5.00

OPERATING LEASE RIGHT-OF-USE ASSETS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2018	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Short-Term Debt [Line Items]
Operating lease right-of-use assets		$ 3,032,069		$ 3,032,069		$ 3,606,398
Gain (Loss) on Termination of Lease					$ 122,533
Lease Terminated And Expired [Member]
Short-Term Debt [Line Items]
Operating lease right-of-use assets		1,301,571		1,301,571
Variable lease payments		15,295	$ 8,684	39,805	27,017
Gain (Loss) on Termination of Lease				122,533	$ 122,533
Standby Letters of Credit [Member]
Short-Term Debt [Line Items]
Maximum borrowing capacity	$ 1,075,000
Debt term	1 year
Operating lease right-of-use assets		$ 3,032,069		$ 3,032,069		$ 3,606,398

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 18 – COMMITMENTS AND CONTINGENCIES

Litigation

The Company is subject to claims and contingencies related to lawsuits and other matters arising out of the normal course of business. In addition, the Company may receive notifications alleging infringement of patent or other intellectual property rights. The Company has elected to expense legal costs associated with legal contingencies as incurred.

On December 1, 2021, the Company and Studio Wildcard sent a notice of claimed infringement (the “DCMA Takedown Notice”) to Valve Corporation, which operates the Steam platform, pursuant to the Digital Millennium Copyright Act (“DCMA”). The DCMA Takedown Notice concerns a videogame titled Myth of Empires, which was developed by Suzhou Angela Online Game Technology Co., Ltd. (“Angela Game”) and published by Imperium Interactive Entertainment Limited (“Imperium”). The DCMA Takedown Notice alleges that Angela Game and Imperium misappropriated the copyrighted source code of ARK: Survival Evolved and used it to develop the game Myth of Empires. The DCMA Takedown Notice requested that Steam cease distributing Myth of Empires and remove the game from the Steam platform. Steam complied with the DCMA Takedown Notice and removed Myth of Empires from its platform. The DCMA Takedown Notice was also sent to Tencent Cloud LLC (“Tencent”), which hosts the United States servers for users who downloaded the game before it was removed from Steam, but Tencent has not complied with the DCMA Takedown Notice.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

On December 9, 2021, Angela Game and Imperium filed a complaint against the Company and Studio Wildcard in the United States District Court for the Central District of California (the “District Court”) in response to the DCMA Takedown Notice. The lawsuit seeks a declaratory judgment on non-liability for copyright infringement and non-liability for trade secret misappropriation, as well as unspecified damages for alleged misrepresentations in the DCMA Takedown Notice. Angela Game and Imperium also filed an application for a temporary restraining order asking the court to order us and Studio Wildcard to rescind the DCMA Takedown Notice so that Steam could once again reinstate Myth of Empires for download. On December 20, 2021, the Company and Studio Wildcard filed an answer to the complaint, which included counterclaims against Angela Game and Imperium and a third-party complaint against Tencent seeking unspecified damages resulting from the alleged copyright infringement and misappropriation of trade secrets in connection with the ARK: Survival Evolved source code. On December 23, 2021 the court denied the application for a temporary restraining order and issued an order to show cause as to why a preliminary injunction should not be issued. On January 31, 2022, a hearing was held on the order to show cause, and the court issued an order denying the preliminary injunction.

On February 3, 2022, Angela Game and Imperium appealed the order to the Ninth Circuit Court of Appeals (“Ninth Circuit”), claiming that the District Court judge abused her discretion in denying the injunction. On October 6, 2022, the Ninth Circuit issued an order affirming the District Court’s denial of the injunction.

Meanwhile, the District Court has appointed a neutral expert to compare the parties’ computer code and issue a report about the extent of similarities. The parties also retained their own experts to compare the code. The expert served his report and in it detailed the basis for his conclusion that Angela copied substantial portions of the ARK: Survival Evolved source code and made extensive efforts to hide its copying. Angela Game moved the District Court to strike the expert reports. The hearing occurred on February 27, 2023 and the District Court denied Angela Game’s motion to strike the expert reports. Also on that date, the District Court heard the Company’s motion to require that Angela Game file a $3.0 million bond to support an award of costs and fees if the Company prevails on Angela Game’s claims. The District Court granted the Company’s motion for a bond and ordered Angela Game to post a bond in the amount of $750,000.

At this time, the Company is unable to quantify the magnitude of the potential loss should the plaintiffs’ lawsuit succeed and accordingly no accrual for loss has been recorded in the accompanying financial statements.

On March 14, 2023, Bel Air Soto, LLC (“Plaintiff”) filed suit in the Superior Court of California, County of Los Angeles, against Snail Games USA Inc. and INDIEV, Inc. (“INDIEV”), an affiliate company that is owned by Mr. Hai Shi, the Company’s Founder, Chief Strategy Officer, and Chairman, for breach of contract and related claims arising out of a commercial lease for premises located in Los Angeles County. Plaintiff alleges that the defendants exercised an option to extend the lease and was harmed when defendants instead terminated the lease and vacated the premises. The complaint seeks damages in excess of $3 million. Snail Games USA Inc. disputes the allegations and the amount of damages. The Company has responded to the complaint with an answer and cross-complaint. The cross-complaint seeks return for the $130,000 security deposit. The landlord has answered and denied the allegations of the cross-complaint. The Company intends to vigorously defend against the claims asserted.

On April 21, 2023, Snail Games USA Inc. entered into an indemnity and reimbursement agreement with INDIEV, dated as of April 1, 2023, pursuant to which INDIEV agrees to assume all obligations and liabilities pursuant to the lease and indemnify and reimburse Snail Games USA Inc. for any amounts, damages, expenses, costs or other liability incurred by Snail Games USA Inc. arising under or pursuant to the lease or relating to the premises.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended					6 Months Ended		9 Months Ended	12 Months Ended
	Nov. 30, 2021	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022	Dec. 31, 2022	Nov. 10, 2022
Product Information [Line Items]
Deferred revenue, net of current portion		$ 4,660,343					$ 4,660,343			$ 5,216,042
General and administrative expenses		3,937,234	$ 4,525,751	$ 4,478,907	$ 4,250,882	$ 4,795,212	8,462,985	$ 9,046,094	$ 13,525,001	18,713,958
Stock based compensation		216,706			0		369,301	0
Advertising expense		168,292			212,039		272,841	370,710
Research and development expense		1,200,842			179,050		2,574,639	363,006
Stock based compensation		16,064
Liabilities for uncertain tax positions		457,024					457,024			457,024
Deposits not insured by FDIC		3,333,946					3,333,946			$ 17,929,308
Employer contributions to the plan		$ 24,769			$ 13,914		$ 51,388	$ 27,096
Common Class A [Member]
Product Information [Line Items]
Number of warrants issued to purchase common stock		120,000					120,000
Shares remain available for repurchase		$ 1,300,000					$ 1,300,000
Omnibus Incentive Plan (2022 Plan) [Member]
Product Information [Line Items]
Number of shares available for issuance		5,718,000					5,718,000
Omnibus Incentive Plan (2022 Plan) [Member] \| Common Class B [Member]
Product Information [Line Items]
Annual increase in shares reserve for issuance (as a percent)		1.00%					1.00%
Share Repurchase Program [Member]
Product Information [Line Items]
Number of treasury stock sold							0
Share Repurchase Program [Member] \| Common Class A [Member]
Product Information [Line Items]
Shares authorized to repurchase											$ 5,000,000
Number of shares repurchased							1,350,275
Aggregate purchase price of shares repurchased							$ 3,700,000
Average price paid per share for repurchase of shares							$ 2.72
Shares remain available for repurchase		$ 1,300,000					$ 1,300,000
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer [Member]
Product Information [Line Items]
Concentration percentage							68.00%			57.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Product Information [Line Items]
Concentration percentage							29.00%			29.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Two Customer [Member]
Product Information [Line Items]
Concentration percentage							25.00%			28.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Three Customer [Member]
Product Information [Line Items]
Concentration percentage							14.00%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer [Member]
Product Information [Line Items]
Concentration percentage		52.00%			59.00%		56.00%	61.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Major Vendors [Member]
Product Information [Line Items]
Concentration percentage							79.00%			55.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Major Vendors One [Member]
Product Information [Line Items]
Concentration percentage							55.00%			43.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Major Vendors Two [Member]
Product Information [Line Items]
Concentration percentage							13.00%			12.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Major Vendor Three [Member]
Product Information [Line Items]
Concentration percentage							11.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Two Vendors [Member]
Product Information [Line Items]
Concentration percentage							51.00%	49.00%
Combined Gross Cost Of Revenues And Operating Expenses [Member] \| Supplier Concentration Risk [Member] \| Major Vendors [Member]
Product Information [Line Items]
Concentration percentage							44.00%	44.00%
Promissory Note 2021 [Member] \| Wall Street Journal Prime Rate [Member]
Product Information [Line Items]
Debt instrument, interest rate, stated percentage, period							5 years
Floating prime rate							0.50%
ARK Survival Evolved [Member] \| Long Term Title License Agreement With Platform [Member]
Product Information [Line Items]
Revenue recognized								$ 2,500,000
ARK Survival Evolved [Member] \| Agreement With Platform [Member]
Product Information [Line Items]
Proceeds from agreement with customers	$ 3,500,000
ARK II [Member] \| Long Term Title License Agreement With Platform [Member]
Product Information [Line Items]
Deferred revenue, net of current portion					$ 2,300,000			$ 2,300,000
Minimum [Member]
Product Information [Line Items]
Typical customer terms							30 days
Minimum [Member] \| Omnibus Incentive Plan (2022 Plan) [Member]
Product Information [Line Items]
Number of shares available for issuance		4,517,419					4,517,419
Maximum [Member]
Product Information [Line Items]
Typical customer terms							75 days

REVOLVING LOAN, SHORT TERM NOTE AND LONG - TERM DEBT (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

SCHEDULE OF LONG TERM DEBT

	June 30, 2023		December 31, 2022
2021 Revolving Loan - On June 21, 2023, the Company amended its revolving loan agreement (“amended revolver”) and decreased the maximum balance to $6,000,000. The amended revolver matures on December 31, 2023 and has an annual interest rate equal to the prime rate less 0.25%. At June 30, 2023, the interest rate on this loan was 8.00%. The revolver was secured by certificate of deposit accounts held with the financial institution and that were released in accordance with the 2023 amendment. Debt covenants of this loan required the Company to maintain a minimum debt service coverage ratio of at least 1.5 to 1. The debt service covenant was temporarily lifted as part of the revolving loan amendment for the twelve month period ended June 30, 2023.	$	6,000,000	$	9,000,000
2021 Promissory Note - On June 17, 2021, the Company amended its loan agreement to reduce the principal amount with financial institution for 10 years, annual interest rate of 3.5% for the first 5 years, and then floating at Wall Street Journal rate from years 6 to 10, the loan is secured by the Company’s building and matures on June 30, 2031. The note is subject to a prepayment penalty. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least 1.5 to 1. The Company was not in compliance with the debt service coverage ratio for the twelve month period ended June 30, 2023 and received a waiver from the lender.		2,845,303		2,891,820
2022 Short Term Note - On January 26, 2022, the Company amended its revolving loan and long-term debt agreements to obtain an additional note with a principal balance of $10,000,000 which was originally set to mature on January 26, 2023. Interest shall be equal to the higher of 3.75% or the Wall Street Journal Prime Rate plus 0.50%. The loan is secured by the Company’s assets. In the event of a default, all outstanding amounts under the note will bear interest at a default rate equal to 5% over the note rate. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least 1.5 to 1 and will be measured quarterly. The debt service covenant was temporarily lifted as part of the June 21, 2023 revolving loan amendment for the twelve month period ended June 30, 2023. In November 2022, the maturity was extended to January 26, 2024 and the interest rate amended to the higher of the Wall Street Journal Prime Rate less 0.25%, or 5.75%. At June 30, 2023, the interest rate on this loan was 8.00%.		2,916,667		5,833,333
Total		11,761,970		17,725,153
Less: current portion of promissory note		2,845,303		86,524
Less: revolving loan		6,000,000		9,000,000
Less: current portion of short term note		2,916,667		5,416,666
Total long-term debt	$	-	$	3,221,963

SCHEDULE OF FUTURE MINIMUM PAYMENTS OF LONG TERM DEBT

The following table provides future minimum payments of its long-term debt as of December 31:

Years ending December 31,	Amount
Remainder of 2023	$	8,540,007
2024		499,414
2025		86,013
2026		89,115
2027		92,329
Thereafter		2,455,092
Long term debt	$	11,761,970

OPERATING LEASE RIGHT-OF-USE ASSETS (Tables)

6 Months Ended

Jun. 30, 2023

Operating Lease Right-of-use Assets

SCHEDULE OF TERMINATIONS OPERATING LEASE

	Right of			Accumulated		Lease Liability				Gain on
	Use Asset			Amortization		Current		Long Term		Termination
Lease Terminations	$	(1,301,571	)	$	907,370	$	442,704	$	74,030	$	122,533

SCHEDULE OF OPERATING LEASE COSTS

	2023		2022		2023		2022
	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Operating lease costs	$	381,300	$	424,098	$	778,862	$	815,958
Short term lease costs		-		-		-		-
Total operating lease costs	$	381,300	$	424,098	$	778,862	$	815,958

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES

Supplemental information related to operating leases for lease liabilities as of June 30, 2023 and June 30, 2022 is as follows:

	2023			2022
Cash paid for amounts included in the measurement of lease liabilities	$	770,508		$	747,474
Weighted average remaining lease term		2.4 years			3.4 years
Weighted average discount rate		5.00	%		5.00	%

SCHEDULE OF FUTURE UNDISCOUNTED LEASE PAYMENTS FOR OPERATING LEASES AND RECONCILIATION OF THESE PAYMENTS TO OUR OPERATING LEASE LIABILITIES

Future undiscounted lease payments for operating leases and a reconciliation of these payments to our operating lease liabilities as of June 30, 2023 are as follows:

	Future lease payments		Imputed Interest		Lease Liabilities
Years ending December 31,	Amount
Remainder of 2023	$	778,382	$	80,306	$	698,076
2024		1,610,844		105,810		1,505,034
2025		1,453,785		28,290		1,425,495
Thereafter		—		—		—
Total future lease payments	$	3,843,011	$	214,406	$	3,628,605

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SCHEDULE OF COST OF REVENUES


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Software license royalties - related parties	$	1,906,786	$	3,364,849	$	4,769,799	$	9,886,027
Software license royalties		254,400		-		606,839		-
License and amortization - related parties		4,862,320		6,350,980		10,057,971		12,701,959
License and amortization		201		100,224		402		250,448
Merchant fees		348,805		596,021		808,276		1,253,557
Engine fees		292,898		502,686		717,125		1,216,679
Internet, server and data center		1,611,047		1,344,754		3,151,737		2,664,659
Costs related to advertising revenue		59,308		-		84,553		-
Total:	$	9,335,765	$	12,259,514	$	20,196,702	$	27,973,329

SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES

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

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	6 Months Ended	12 Months Ended
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	$ 598,206
License Rights, Related Parties [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	136,665,000	$ 136,665,000
Finite-Lived Intangible Assets, Accumulated Amortization	(136,338,913)	(135,280,942)
Finite-Lived Intangible Assets, Impairment Loss
Finite-Lived Intangible Assets, Net	$ 326,087	$ 1,384,058
License Rights, Related Parties [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	3 years	3 years
License Rights, Related Parties [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	5 years	5 years
License [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 3,000,000	$ 3,000,000
Finite-Lived Intangible Assets, Accumulated Amortization	(3,000,000)	(3,000,000)
Finite-Lived Intangible Assets, Impairment Loss
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	5 years	5 years
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 51,784	$ 51,784
Finite-Lived Intangible Assets, Accumulated Amortization	$ (51,784)	$ (51,784)
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	3 years	3 years
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 10,745	$ 10,745
Finite-Lived Intangible Assets, Accumulated Amortization	(9,512)	(9,110)
Finite-Lived Intangible Assets, Net	$ 1,233	$ 1,635
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	12 years	12 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 270,886	$ 270,886
Finite-Lived Intangible Assets, Net	270,886	270,886
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	333,415	333,415
Finite-Lived Intangible Assets, Accumulated Amortization	(61,296)	(60,894)
Finite-Lived Intangible Assets, Impairment Loss
Finite-Lived Intangible Assets, Net	$ 272,119	$ 272,521

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 21 – SUBSEQUENT EVENTS

On July 26, 2023, the Company entered into a cooperation agreement with an internet, server and datacenter vendor, Marbis GmbH (“Marbis”). The Company agreed to make Mabis the official server host of Ark: Survival Evolved and future iterations and sequels of the game for a period of seven years. In return, Marbis will grant to the Company funding up to the amount of $4,046,932, which includes the outstanding amount of $1,046,932 included in the Company’s accrued expenses and other liabilities as of June 30, 2023. Pursuant to the agreement, Marbis has agreed to provide the Company with funds in cash in an aggregate amount of up to $3,000,000 without discount and free of bank charges and costs to the Company.

On July 27, 2023, the Company entered into a distribution agreement with its retail distribution partner for the distribution of ARK: Survival Ascended and ARK II. The initial term is two years and will renew each subsequent year unless cancelled. Upon executing the distribution agreement, the Company received $1.8 million as a prepaid royalty that will be reported as deferred revenue until the release of ARK: Survival Ascended and ARK II.

PREPAID EXPENSES - RELATED PARTY (Tables)

6 Months Ended

Jun. 30, 2023

Prepaid Expenses - Related Party

SCHEDULE OF PREPAID EXPENSES - RELATED PARTY


	2023			2022
Prepaid royalties	$	582,500		$	582,500
Prepaid licenses		7,500,000			5,000,000
Prepaid expenses - related party, ending balance		8,082,500			5,582,500
Less: short-term portion		(2,500,000	)		—
Total prepaid expenses - related party, long-term	$	5,582,500		$	5,582,500

SCHEDULE OF OPERATING LEASE COSTS (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF OPERATING LEASE COSTS (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Lease Right-of-use Assets
Operating lease costs	$ 381,300	$ 424,098	$ 778,862	$ 815,958
Short term lease costs
Total operating lease costs	$ 381,300	$ 424,098	$ 778,862	$ 815,958

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 2,960,160	$ 12,863,817
Restricted escrow deposit	1,025,193	1,003,804
Prepaid expenses - related party	2,500,000
Prepaid expenses and other current assets	12,216,801	10,565,141
Total current assets	35,501,691	42,636,723
Restricted cash and cash equivalents	1,113,960	6,374,368
Prepaid expenses - related party	5,582,500	5,582,500
Property, plant and equipment, net	4,881,629	5,114,799
Deferred income taxes	9,490,241	7,602,536
Other noncurrent assets	180,778	198,668
Operating lease right-of-use assets, net	3,032,069	3,606,398
Total assets	60,381,074	72,772,571
Current Liabilities:
Accrued expenses and other liabilities	2,678,848	1,474,088
Interest payable - related parties	527,770	527,770
Revolving loan	6,000,000	9,000,000
Short term note	2,916,667	5,416,666
Current portion of promissory note	2,845,303	86,524
Current portion of deferred revenue	4,125,505	4,335,404
Current portion of operating lease liabilities	1,437,140	1,371,227
Total current liabilities	48,801,025	51,582,329
Accrued expenses	384,150	457,024
Promissory note, net of current portion		3,221,963
Deferred revenue, net of current portion	4,660,343	5,216,042
Operating lease liabilities, net of current portion	2,191,465	2,930,529
Total liabilities	56,036,983	63,407,887
Commitments and contingencies
Stockholders’ Equity:
Additional paid-in capital	25,708,907	23,436,942
Accumulated other comprehensive loss	(286,173)	(307,200)
Accumulated deficit	(11,914,059)	(4,863,250)
Stockholders Equity Excluding Treasury Stock	13,512,475	18,270,292
Treasury stock at cost (1,350,275 and 1,197,649 shares as of June 30, 2023 and December 31, 2022, respectively)	(3,671,806)	(3,414,713)
Total Snail, Inc. equity	9,840,669	14,855,579
Noncontrolling interests	(5,496,578)	(5,490,895)
Total stockholders’ equity	4,344,091	9,364,684
Total liabilities, noncontrolling interests and stockholders’ equity	60,381,074	72,772,571
Common Class A [Member]
Stockholders’ Equity:
Common stock, value	925	925
Common Class B [Member]
Stockholders’ Equity:
Common stock, value	2,875	2,875
License Rights, Related Parties [Member]
Current Assets:
Intangible assets, net - other	326,087	1,384,058
Other Intangible Assets [Member]
Current Assets:
Intangible assets, net - other	272,119	272,521
Nonrelated Party [Member]
Current Assets:
Accounts receivable - related party, net	4,963,566	6,758,024
Current Liabilities:
Accounts payable - related party	8,658,585	9,452,391
Related Party [Member]
Current Assets:
Accounts receivable - related party, net	11,733,226	11,344,184
Loan and interest receivable - related party	102,745	101,753
Current Liabilities:
Accounts payable - related party	$ 19,611,207	$ 19,918,259

DIVIDEND DISTRIBUTION

6 Months Ended

Jun. 30, 2023

Dividend Distribution

DIVIDEND DISTRIBUTION

NOTE 7 – DIVIDEND DISTRIBUTION

On April 26, 2022, the Company declared an in-kind dividend of $94,934,400 for the assignment of the due from shareholder and a cash dividend of $8,200,000 to pay the related withholding taxes; see Note 6 – Due from Shareholder. There were no such distributions during the six months ended June 30, 2023. In April 2023, the Company filed its annual withholding tax return Form 1042 and recognized a refund receivable related to the withholding taxes paid in the amount of $1,886,600. The refund is included in the prepaid expenses and other current assets and additional paid-in capital in the accompanying condensed consolidated balance sheets as of June 30, 2023 and the condensed consolidated statements of equity for the three months ended June 30, 2023.

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue, remaining amount	$ 8,785,848	$ 9,551,446	$ 9,551,446	$ 20,280,934
Deferred revenue due	2,600,000
Contract with customer liability	$ 4,100,000
Maximum [Member]
Disaggregation of Revenue [Line Items]
Deferred expected term	60 months
UNITED STATES
Disaggregation of Revenue [Line Items]
Deferred expected term	12 months
Next 12 To 60 Months [Member]
Disaggregation of Revenue [Line Items]
Long term deferred revenue	$ 4,700,000
DLC [Member]
Disaggregation of Revenue [Line Items]
Revenue, remaining amount	300,000
Deferred revenue due	$ 2,600,000
Deferred expected term	12 months
ARK II [Member]
Disaggregation of Revenue [Line Items]
Revenue, remaining amount	$ 2,300,000
Deferred expected term	24 months

DIVIDEND DISTRIBUTION (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended
DIVIDEND DISTRIBUTION (Details Narrative) - USD ($)	Apr. 26, 2022	Apr. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Dividend Distribution
Paid in-kind dividend	$ 94,934,400			$ 94,934,400
Cash dividend	$ 8,200,000
Dividends			0	0
Refund receivable related to withholding taxes		$ 1,886,600	$ (1,886,600)

ACCOUNTS PAYABLE — RELATED PARTY (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party [Member]
Defined Benefit Plan Disclosure [Line Items]
Accounts payable to parent	$ 19,611,207		$ 19,611,207		$ 19,918,259
Snail Digital Technology Co. Ltd. [Member]
Defined Benefit Plan Disclosure [Line Items]
License costs to related party	$ 70,425	$ 98,573	142,948	$ 222,033
Royalty payments			$ 450,000	$ 444,263

LOAN PAYABLE AND INTEREST PAYABLE — RELATED PARTIES

6 Months Ended

Jun. 30, 2023

Loan Payable And Interest Payable Related Parties

LOAN PAYABLE AND INTEREST PAYABLE — RELATED PARTIES

NOTE 14 – LOAN PAYABLE AND INTEREST PAYABLE — RELATED PARTIES

The Company had a loan amount due to related parties of $400,000 bearing 2.00% per annum interest. $300,000 of the loan is from a wholly owned subsidiary of Suzhou Snail and due in June 2022, and $100,000 is from Suzhou Snail and due in December 2023. The $100,000 loan along with $3,890 interest payable to Suzhou Snail was offset by the loan receivable Suzhou Snail assumed in February 2022. Please refer to Note 13 — Loan and Interest Receivable — Related Party. In July 2022, the Company paid off the

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

outstanding principal balance of $300,000. As of June 30, 2023 and December 31, 2022, the total loan payable — related parties amounted to $0 and total unpaid interest amounted to $527,770, as of June 30, 2023 and December 31, 2022. Interest expenses for the loans payable to related parties were $0 and $1,496 during the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, the interest expenses for the loans payable to related parties were $0 and $3,222, respectively.

PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Depreciation and amortization expense	$ 118,110	$ 138,791	$ 233,170	$ 307,108
Property plant and equipment, disposals				$ 11,615
Accumulated depreciation			9,182
Disposal of assets			2,433
Property plant and equipment net	4,881,629		4,881,629		$ 5,114,799
Donkey Crew, LLC [Member]
Property plant and equipment net	$ 6,975		$ 6,975		$ 13,569

SCHEDULE OF COST OF REVENUES (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF COST OF REVENUES (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounting Policies [Abstract]
Software license royalties - related parties	$ 1,906,786	$ 3,364,849	$ 4,769,799	$ 9,886,027
Software license royalties	254,400		606,839
License and amortization - related parties	4,862,320	6,350,980	10,057,971	12,701,959
License and amortization	201	100,224	402	250,448
Merchant fees	348,805	596,021	808,276	1,253,557
Engine fees	292,898	502,686	717,125	1,216,679
Internet, server and data center	1,611,047	1,344,754	3,151,737	2,664,659
Costs related to advertising revenue	59,308		84,553
Total:	$ 9,335,765	$ 12,259,514	$ 20,196,702	$ 27,973,329

SCHEDULE OF FUTURE UNDISCOUNTED LEASE PAYMENTS FOR OPERATING LEASES AND RECONCILIATION OF THESE PAYMENTS TO OUR OPERATING LEASE LIABILITIES (Details)	Jun. 30, 2023 USD ($)
Operating Lease Right-of-use Assets
Remainder of 2023, Future lease payments	$ 778,382
Remainder of 2023, Imputed Interest	80,306
Remainder of 2023, Lease Liabilities	698,076
2024, Future lease payments	1,610,844
2024, Imputed Interest	105,810
2024, Lease Liabilities	1,505,034
2025, Future lease payments	1,453,785
2025, Imputed Interest	28,290
2025, Lease Liabilities	1,425,495
Thereafter, Future lease payments
Thereafter, Imputed Interest
Thereafter, Lease Liabilities
Total future lease payments	3,843,011
Total Imputed Interest	214,406
Total Lease Liabilities	$ 3,628,605

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Revenue Recognition

Revenue Recognition

Principal vs. Agent Consideration

Principal vs. Agent Consideration

	●	The underlying contract terms and conditions between the various parties to the transaction;

	●	Which party is primarily responsible for fulfilling the promise to provide the specified good or service; and

	●	Which party has discretion in establishing the price for the specified good or service.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Contract Balance

Contract Balance

The Company records deferred revenue when cash payments are received or due in advance of its performance, even if amounts are refundable.

Estimated Service Period

Estimated Service Period

Shipping, Handling and Value Added Taxes (“VAT”)

Shipping, Handling and Value Added Taxes (“VAT”)

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Cost of Revenues

Cost of Revenues

SCHEDULE OF COST OF REVENUES


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Software license royalties - related parties	$	1,906,786	$	3,364,849	$	4,769,799	$	9,886,027
Software license royalties		254,400		-		606,839		-
License and amortization - related parties		4,862,320		6,350,980		10,057,971		12,701,959
License and amortization		201		100,224		402		250,448
Merchant fees		348,805		596,021		808,276		1,253,557
Engine fees		292,898		502,686		717,125		1,216,679
Internet, server and data center		1,611,047		1,344,754		3,151,737		2,664,659
Costs related to advertising revenue		59,308		-		84,553		-
Total:	$	9,335,765	$	12,259,514	$	20,196,702	$	27,973,329

General and Administrative Costs

General and Administrative Costs

Advertising and Marketing Costs

Advertising and Marketing Costs

Research and Development

Research and Development

Non-controlling Interests

Non-controlling Interests

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

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Cash and Restricted Cash and Cash Equivalents

Cash and Restricted Cash and Cash Equivalents

Restricted Escrow Deposits

Restricted Escrow Deposits

Accounts Receivable

Accounts Receivable

Fair Value Measurements

Fair Value Measurements

The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by the Company for financial instruments measured at fair value.

The three levels of inputs are as follows:

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

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

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

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Amortizable Intangibles and Other Long-lived Assets

Amortizable Intangibles and Other Long-lived Assets

Income Taxes

Income Taxes

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Concentration of Credit Risk and Significant Customers

Concentration of Credit Risk and Significant Customers

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Employee Savings Plans

Employee Savings Plans

Stock-Based Compensation

Stock-Based Compensation

Restricted Stock Units

Restricted Stock Units

Warrants

Warrants

Share Repurchase Program

Share Repurchase Program

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Dividend Restrictions

Dividend Restrictions

Our ability to pay cash dividends is currently restricted by the terms of our credit facilities.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

6 Months Ended

Jun. 30, 2023

Prepaid Expenses And Other Current Assets

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 9 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following as of June 30, 2023 and December 31, 2022:

	2023		2022
Prepaid income taxes	$	9,894,191	$	9,822,603
Withholding refund receivable		1,886,600		—
Other prepaids		106,798		80,271
Other current assets		329,212		662,267
Total prepaid expenses and other current assets	$	12,216,801	$	10,565,141

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

PRESENTATION AND NATURE OF OPERATIONS (Details Narrative)			1 Months Ended	3 Months Ended				6 Months Ended
	Nov. 09, 2022 $ / shares shares	Jul. 13, 2022 shares	Nov. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) Integer	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Amount deposited in escrow account				$ 1,025,193				$ 1,025,193		$ 1,003,804
Number of operating segments \| Integer								1
Net loss				4,083,895	$ 2,972,597	$ 983,831	$ (5,803,767)	$ 7,056,492	$ (4,819,936)
Net cash flows								15,164,065	(4,504,604)
Cash and Cash Equivalents, at Carrying Value				2,960,160		$ 14,697,338		2,960,160	$ 14,697,338	12,863,817
Restricted cash				1,100,000				1,100,000
Current debt				9,000,000.0				9,000,000.0
Revolving loan				6,000,000				6,000,000		$ 9,000,000
Term debt				$ 2,900,000				$ 2,900,000
IPO [Member]
Net proceeds from shares issued in IPO			$ 12,000,000.0
Offering costs			3,000,000.0
Amount deposited in escrow account			$ 1,000,000.0
Period amount in escrow is restricted			12 months
Common Class A [Member]
Number of shares of common stock issued as per agreement \| shares	6,251,420
Common Class A [Member] \| IPO [Member]
Number of shares of common stock issued as per agreement \| shares	3,000,000
Share issued price \| $ / shares	$ 5.00
Common Class B [Member]
Number of shares of common stock issued as per agreement \| shares	28,748,580
Snail Games USA Stock holders [Member]
Number of shares transferred \| shares	500,000
Snail Technology (HK) Limited [Member]
Number of shares transferred \| shares		500,000

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following as of June 30, 2023 and December 31, 2022:

	2023			2022
Building	$	1,874,049		$	1,874,049
Land		2,700,000			2,700,000
Building improvements		1,010,218			1,010,218
Leasehold improvements		1,537,775			1,537,775
Autos and trucks		178,695			178,695
Computer and equipment		1,821,819			1,821,819
Furniture and fixtures		411,801			411,801
Property, plant and equipment, Gross		9,534,357			9,534,357
Accumulated depreciation		(4,652,728	)		(4,419,558	)
Property, plant and equipment, net	$	4,881,629		$	5,114,799

REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of revenue

Geography

The Company attributes net revenue to geographic regions based on customer location. Net revenue by geographic region for the three and six months ended June 30, 2023 and 2022 were as follows:

SCHEDULE OF DISAGGREGATION OF REVENUE


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
United States	$	8,363,756	$	13,971,832	$	20,141,630	$	40,258,628
International		1,528,497		1,491,690		3,209,111		3,259,485
Total revenue from contracts with customers:	$	9,892,253	$	15,463,522	$	23,350,741	$	43,518,113

Platform

Net revenue by platform for the three and six months ended June 30, 2023 and 2022 were as follows:


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Console	$	3,626,475	$	5,415,772	$	9,400,065	$	23,407,351
PC		3,367,369		6,943,036		8,379,549		13,627,472
Mobile		1,508,203		2,393,878		3,226,235		5,185,198
Other		1,390,206		710,836		2,344,892		1,298,092
Total revenue from contracts with customers:	$	9,892,253	$	15,463,522	$	23,350,741	$	43,518,113

Distribution channel


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Digital	$	6,993,844	$	12,358,808	$	17,779,614	$	37,034,823
Mobile		1,508,203		2,393,878		3,226,235		5,185,198
Physical retail and other		1,390,206		710,836		2,344,892		1,298,092
Total revenue from contracts with customers:	$	9,892,253	$	15,463,522	$	23,350,741	$	43,518,113

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Deferred Revenue

The Company records deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations; reductions to deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, which were in the ordinary course of business. As of June 30, 2023, the balance of deferred revenue was $8,785,848, of which $2.6 million is due to non-refundable payments. The Company is expecting to recognize $0.3 million of the $2.6 million in the next 12 months through the platform releases of certain DLCs and the remaining $2.3 million in the next 24 months through the release of ARK 2. The Company expects to recognize $4.1 million of current deferred revenues and $4.7 million of long term deferred revenue as revenue over the next 12 to 60 months. The revenue will be recognized primarily on a straight-line basis, based on our estimates of technical support obligations and activation of durable virtual goods. Activities in the Company’s deferred revenue as of June 30, 2023 and December 31, 2022 were as follows:

SCHEDULE OF DEFERRED REVENUE

	2023			2022
Deferred revenue, beginning balance in advance of revenue recognition billing	$	9,551,446		$	20,280,934
Revenue recognized		(3,874,784	)		(18,832,396	)
Revenue deferred		3,109,186			8,102,908
Deferred revenue, ending balance		8,785,848			9,551,446
Less: short term portion		(4,125,505	)		(4,335,404	)
Deferred revenue, long term	$	4,660,343		$	5,216,042

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 12
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

REVOLVING LOAN, SHORT TERM NOTE AND LONG - TERM DEBT

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

REVOLVING LOAN, SHORT TERM NOTE AND LONG - TERM DEBT

NOTE 15 – REVOLVING LOAN, SHORT TERM NOTE AND LONG - TERM DEBT

SCHEDULE OF LONG TERM DEBT

	June 30, 2023		December 31, 2022
2021 Revolving Loan - On June 21, 2023, the Company amended its revolving loan agreement (“amended revolver”) and decreased the maximum balance to $6,000,000. The amended revolver matures on December 31, 2023 and has an annual interest rate equal to the prime rate less 0.25%. At June 30, 2023, the interest rate on this loan was 8.00%. The revolver was secured by certificate of deposit accounts held with the financial institution and that were released in accordance with the 2023 amendment. Debt covenants of this loan required the Company to maintain a minimum debt service coverage ratio of at least 1.5 to 1. The debt service covenant was temporarily lifted as part of the revolving loan amendment for the twelve month period ended June 30, 2023.	$	6,000,000	$	9,000,000
2021 Promissory Note - On June 17, 2021, the Company amended its loan agreement to reduce the principal amount with financial institution for 10 years, annual interest rate of 3.5% for the first 5 years, and then floating at Wall Street Journal rate from years 6 to 10, the loan is secured by the Company’s building and matures on June 30, 2031. The note is subject to a prepayment penalty. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least 1.5 to 1. The Company was not in compliance with the debt service coverage ratio for the twelve month period ended June 30, 2023 and received a waiver from the lender.		2,845,303		2,891,820
2022 Short Term Note - On January 26, 2022, the Company amended its revolving loan and long-term debt agreements to obtain an additional note with a principal balance of $10,000,000 which was originally set to mature on January 26, 2023. Interest shall be equal to the higher of 3.75% or the Wall Street Journal Prime Rate plus 0.50%. The loan is secured by the Company’s assets. In the event of a default, all outstanding amounts under the note will bear interest at a default rate equal to 5% over the note rate. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least 1.5 to 1 and will be measured quarterly. The debt service covenant was temporarily lifted as part of the June 21, 2023 revolving loan amendment for the twelve month period ended June 30, 2023. In November 2022, the maturity was extended to January 26, 2024 and the interest rate amended to the higher of the Wall Street Journal Prime Rate less 0.25%, or 5.75%. At June 30, 2023, the interest rate on this loan was 8.00%.		2,916,667		5,833,333
Total		11,761,970		17,725,153
Less: current portion of promissory note		2,845,303		86,524
Less: revolving loan		6,000,000		9,000,000
Less: current portion of short term note		2,916,667		5,416,666
Total long-term debt	$	-	$	3,221,963

Total interest expense for the above debt and revolver loan amounted to $294,749 and $179,602 for the three months ended June 30, 2023 and 2022, respectively. Total interest expense for the above debt and revolver loan amounted to $588,994 and $339,691 for the six months ended June 30, 2023 and 2022, respectively. Amortization of loan origination expenses of $11,814 and $6,591 are included as part of interest expense for the three months ended June 30, 2023 and 2022, respectively. Amortization of loan origination expenses of $20,726 and $12,557, are included as part of interest expense for the six months ended June 30, 2023 and 2022, respectively. As a result of the amendment to the revolving loan the Company recognized $2,903 as additional amortization of loan origination expenses during the three months ended June 30, 2023. The Company is in compliance with, or received waivers for, its debt covenants as of June 30, 2023 and December 31, 2022.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table provides future minimum payments of its long-term debt as of December 31:

Years ending December 31,	Amount
Remainder of 2023	$	8,540,007
2024		499,414
2025		86,013
2026		89,115
2027		92,329
Thereafter		2,455,092
Long term debt	$	11,761,970

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Section S99
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1B
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-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1C
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-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Subparagraph (c)
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

6 Months Ended

Jun. 30, 2023

Prepaid Expenses And Other Current Assets

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following as of June 30, 2023 and December 31, 2022:

	2023		2022
Prepaid income taxes	$	9,894,191	$	9,822,603
Withholding refund receivable		1,886,600		—
Other prepaids		106,798		80,271
Other current assets		329,212		662,267
Total prepaid expenses and other current assets	$	12,216,801	$	10,565,141

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
INTANGIBLE ASSETS (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 362,520	$ 1,951,204	$ 1,058,373	$ 3,952,407
Finite-Lived Intangible Assets, Remaining Amortization Period	6 months		6 months

LOAN AND INTEREST RECEIVABLE — RELATED PARTY

6 Months Ended

Jun. 30, 2023

Loan And Interest Receivable Related Party

LOAN AND INTEREST RECEIVABLE — RELATED PARTY

NOTE 13 – LOAN AND INTEREST RECEIVABLE — RELATED PARTY

In February 2021, the Company lent $200,000 to a wholly owned subsidiary of Suzhou Snail, the loan bears 2.0% per annum interest, interest and principal are due in February 2022. In February 2022, Suzhou Snail signed an agreement with this subsidiary and assumed the loan and related interest for a total of $203,890. Subsequently, $103,890 was offset against the loan and interest payable owed to Suzhou Snail on a separate note. Please refer to Note 14 — Loan Payable and Interest Payable — Related Parties. The total amount of loan and interest receivable — related parties was $102,745 and $101,753, as of June 30, 2023 and December 31, 2022, respectively. The Company earned $499 and $499 in interest on the related party loans receivable during the three months ended June 30, 2023 and 2022, respectively. Interest earned on the related party loans receivable during the six months ended June 30, 2023 and 2022, was $992 and $745, respectively.

EQUITY

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

EQUITY

NOTE 20 – EQUITY

The Company has authorized two classes of common stock, Class A and Class B. The rights of the holders of both Class A and Class B common stock will be identical, except with respect to voting, conversion and transfer restrictions applicable to the Class B common stock. Each share of Class A common stock will be entitled to one vote. Each share of Class B common stock will be entitled to ten votes and will be convertible into one share of Class A common stock automatically upon transfer, subject to certain exceptions. Holders of Class A common stock and Class B common stock will vote together as a single class on all matters unless otherwise required by law.

On November 9, 2022, in connection with the IPO, the Company entered into an underwriting agreement (the “Underwriting Agreement” with the underwriters (the “Underwriters”), pursuant to which the Company agreed to issue and sell 3,000,000 shares of Class A common stock (the “Firm Shares”) at a purchase price of $4.675 per share to the Underwriters and granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to 450,000 additional shares of Class A common stock (the “Option Shares”) at a purchase price of $4.675 per share. The Underwriters may exercise the Over-Allotment Option at any time in whole, or from time to time in part, on or before the forty-fifth day following the effectiveness of the IPO. The Over-Allotment Option was not exercised by the Underwriters prior to its expiration.

In connection with the Underwriting Agreement, on November 9, 2022, the Company also issued to the Underwriters warrants to purchase such number of shares of the Company’s Class A common stock in an amount equal to four percent of the total number of shares of Class A common stock sold in the IPO, or 120,000 shares of Class A common stock (the “Underwriters Warrants”). The Underwriters Warrants may be exercised at a price per share equal to 125% of the IPO price, or $6.25 per share. The Underwriters Warrants are exercisable, in whole or in part, commencing on November 9, 2022, and expiring on the three-year anniversary thereof. The Underwriters Warrants have not been exercised as of the filing of this Quarterly Report.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Underwriters Warrants and Over-Allotment Option are legally detachable and separately exercisable from each other and from the Firm Shares; therefore, they meet the definition of freestanding and are not considered embedded in the Firm Shares.

The Underwriters Warrants are considered indexed to the Company’s own stock. Additionally, the Company concludes that the Underwriters Warrants meet all requirements for equity classification. Because the Underwriters Warrants are issued to the Underwriters for their services and can be exercised immediately (subject to certain transfer conditions) they will be measured at their fair value on their date of issuance and recorded within stockholders’ equity. As long as the Underwriters Warrants remain classified as equity, they shall not be revalued. The fair value of the Underwriters Warrants was determined using the Black-Scholes model. The key assumptions used in the valuation were an average expected volatility of 53%, discount rate of 4.49% and remaining term of 3 years.

The Company allocates all the issuance costs to the firm shares as a reduction of proceeds.

Restricted Stock Units (“RSUs”)

RSUs granted to directors vest based on the directors’ continued employment with us through each applicable vest date, which is generally over one year. If the vesting conditions are not met, unvested RSUs will be forfeited. The following table summarizes our RSU units activity with directors for the six months ended June 30, 2023. There were no activities during the six months ended June 30, 2022.

	Restricted Stock Units		Weighted-Average Grant-Date Fair Values
Outstanding as of January 1, 2023		24,000	$	5.00
Granted		—		—
Vested		—		—
Forfeited or cancelled		—		—
Outstanding as of June 30, 2023		24,000	$	5.00

The grant date fair value of RSUs granted to directors is based on the quoted market price of our common stock on the date of grant.

Our RSUs granted to employees vest upon the achievement of pre-determined performance-based milestones as well as service conditions (“PSUs”). The pre-determined performance-based milestones are based on specified percentages of the PSUs that would vest at each of the first five anniversaries of the IPO date if the Company’s average annual growth rate (“AAGR”) is calculated to be at a target percentage or above during the period between the Company’s IPO Date and the annual revenue for each of the anniversary year. If these performance-based milestones are not met but service conditions are met, the PSUs will not vest, in which case any compensation expense the Company has recognized to date will be reversed. Generally, the total aggregate measurement period of our PSUs is 5 years, with awards cliff-vesting after each annual measurement period during the total aggregate measurement period.

Each quarter, the Company updates our assessment of the probability that the performance milestones will be achieved. The Company amortizes the fair values of PSUs over the requisite service period. Each performance-based milestone is weighted evenly and the number of shares that vest based on each performance-based milestone is independent from the other.

The following table summarizes our PSU activity with employees, presented with the maximum number of shares that could potentially vest, for the six months ended June 30, 2023. There were no activities during the six months ended June 30, 2022.

	Restricted Stock Units			Weighted-Average Grant-Date Fair Values
Outstanding as of January 1, 2023		1,197,552		$	5.00
Granted		—			—
Vested		—			—
Forfeited or cancelled		(20,971	)		5.00
Outstanding as of June 30, 2023		1,176,581		$	5.00

The grant date fair value of PSUs granted to employees is based on the quoted market price of our common stock on the date of grant.

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

Repurchase Activity

All share repurchases settled in the six months ended June 30, 2023 were open market transactions. As of June 30, 2023, 1,350,275 shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $3.7 million. The average price paid per share was $2.72 and approximately $1.3 million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program.

Stock-Based Compensation Expense

Stock-based compensation expense resulting from RSUs and PSUs of $369,301 and $216,706 are recorded under general and administrative expenses included in our condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2023, respectively. Stock-based compensation expense resulting from PSUs of $16,064 and $0 are recorded under research and development expenses included in our condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2023, respectively. There were no stock-based compensation expenses incurred during the three and six months ended June 30, 2022.

During the three months ended June 30, 2023 and 2022, the Company recognized approximately $50,801 and $0 respectively, of deferred income tax benefit related to our stock-based compensation expense. During the six months ended June 30, 2023 and 2022, the Company recognized approximately $82,877 and $0 respectively, of deferred income tax benefit related to our stock-based compensation expense.

As of June 30, 2023, our total unrecognized compensation cost related to RSUs and PSUs was approximately $1.6 million and is expected to be recognized over a weighted-average service period of 2.8 years.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Condensed Consolidated Statements of Equity (Unaudited) - USD ($)	Total	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class B [Member]	Additional Paid-in Capital [Member]	Due From Shareholder Loan And Interest Receivable [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Parent [Member]	Noncontrolling Interest [Member]	Subsidiaries [Member] Common Stock [Member]
Balance at March 31, 2023 at Dec. 31, 2021	$ 10,052,053			$ 94,159,167	$ (94,353,522)	$ (266,557)	$ 16,045,231		$ 15,589,319	$ (5,537,266)	$ 5,000
Balance, shares at Dec. 31, 2021											500,000
Loan to shareholder	(450,681)				(450,681)				(450,681)
Repurchase of common stock
Repurchase of common stock, shares
Foreign currency translation	(51,203)					(51,203)			(51,203)
Net Income (Loss)	5,803,767						5,811,057		5,811,057	(7,290)
Balance at June 30, 2023 at Mar. 31, 2022	15,353,936			94,159,167	(94,804,203)	(317,760)	21,856,288		20,898,492	(5,544,556)	$ 5,000
Balance, shares at Mar. 31, 2022											500,000
Balance at March 31, 2023 at Dec. 31, 2021	10,052,053			94,159,167	(94,353,522)	(266,557)	16,045,231		15,589,319	(5,537,266)	$ 5,000
Balance, shares at Dec. 31, 2021											500,000
Net Income (Loss)	4,819,936
Balance at June 30, 2023 at Jun. 30, 2022	6,008,709			12,881,055		(348,959)	(1,054,297)		11,482,799	(5,474,090)	$ 5,000
Balance, shares at Jun. 30, 2022											500,000
Balance at March 31, 2023 at Mar. 31, 2022	15,353,936			94,159,167	(94,804,203)	(317,760)	21,856,288		20,898,492	(5,544,556)	$ 5,000
Balance, shares at Mar. 31, 2022											500,000
Loan to shareholder	(130,197)				(130,197)				(130,197)
Foreign currency translation	(31,199)					(31,199)			(31,199)
Net Income (Loss)	(983,831)						(1,054,297)		(1,054,297)	70,466
Dividend distribution	(8,200,000)			(81,278,112)	94,934,400		(21,856,288)		(8,200,000)
Balance at June 30, 2023 at Jun. 30, 2022	6,008,709			12,881,055		(348,959)	(1,054,297)		11,482,799	(5,474,090)	$ 5,000
Balance, shares at Jun. 30, 2022											500,000
Balance at March 31, 2023 at Dec. 31, 2022	9,364,684	$ 925	$ 2,875	23,436,942		(307,200)	(4,863,250)	$ (3,414,713)	14,855,579	(5,490,895)
Balance, shares at Dec. 31, 2022		9,251,420	28,748,580					(1,197,649)
Stock based compensation related to restricted stock units	152,595			152,595					152,595
Repurchase of common stock	(257,093)							$ (257,093)	(257,093)
Repurchase of common stock, shares								(152,626)
Foreign currency translation	2,320					2,320			2,320
Net Income (Loss)	(2,972,597)						(2,971,378)		(2,971,378)	(1,219)
Balance at June 30, 2023 at Mar. 31, 2023	6,289,909	$ 925	$ 2,875	23,589,537		(304,880)	(7,834,628)	$ (3,671,806)	11,782,023	(5,492,114)
Balance, shares at Mar. 31, 2023		9,251,420	28,748,580					(1,350,275)
Balance at March 31, 2023 at Dec. 31, 2022	9,364,684	$ 925	$ 2,875	23,436,942		(307,200)	(4,863,250)	$ (3,414,713)	14,855,579	(5,490,895)
Balance, shares at Dec. 31, 2022		9,251,420	28,748,580					(1,197,649)
Net Income (Loss)	(7,056,492)
Balance at June 30, 2023 at Jun. 30, 2023	4,344,091	$ 925	$ 2,875	25,708,907		(286,173)	(11,914,059)	$ (3,671,806)	9,840,669	(5,496,578)
Balance, shares at Jun. 30, 2023		9,251,420	28,748,580					(1,350,275)
Balance at March 31, 2023 at Mar. 31, 2023	6,289,909	$ 925	$ 2,875	23,589,537		(304,880)	(7,834,628)	$ (3,671,806)	11,782,023	(5,492,114)
Balance, shares at Mar. 31, 2023		9,251,420	28,748,580					(1,350,275)
Stock based compensation related to restricted stock units	232,770			232,770					232,770
Return of dividend distribution tax withholding payment	1,886,600			1,886,600					1,886,600
Foreign currency translation	18,707					18,707			18,707
Net Income (Loss)	(4,083,895)						(4,079,431)		(4,079,431)	(4,464)
Balance at June 30, 2023 at Jun. 30, 2023	$ 4,344,091	$ 925	$ 2,875	$ 25,708,907		$ (286,173)	$ (11,914,059)	$ (3,671,806)	$ 9,840,669	$ (5,496,578)
Balance, shares at Jun. 30, 2023		9,251,420	28,748,580					(1,350,275)

SCHEDULE OF LONG TERM DEBT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Total	$ 11,761,970	$ 17,725,153
Less: current portion of promissory note	2,845,303	86,524
Less: revolving loan	6,000,000	9,000,000
Less: current portion of short term note	2,916,667	5,416,666
Total long-term debt		3,221,963
Revolving Credit Facility [Member]
Short-Term Debt [Line Items]
Total	6,000,000	9,000,000
Promissory Note 2021 [Member]
Short-Term Debt [Line Items]
Total	2,845,303	2,891,820
Short-Term Debt [Member]
Short-Term Debt [Line Items]
Total	$ 2,916,667	$ 5,833,333

EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 19 – EARNINGS (LOSS) PER SHARE

The Company uses the two class method to compute its basic earnings (loss) per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). The following table summarizes the computations of basic EPS and diluted EPS. The allocation of earnings between Class A and Class B shares is based on their respective economic rights to the undistributed earnings of the Company. Basic EPS is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur using the treasury stock method. The restricted stock units and underwriters warrants were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect for the three and six months ended June 30, 2023. There were no such exclusions made in the 2022 calculation. For the three and six months ended June 30, 2022, the Company has used the number of shares transferred in the reorganization transaction for the denominator in the EPS calculation. The following table provides a reconciliation of the weighted average number of shares used in the calculation of basic and diluted EPS.

SCHEDULE OF EARNINGS PER SHARE

		1			2			3			4
	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022
Basic Earnings Per Share:
Net (loss) income attributable to Class A common stockholders	$	(879,665	)	$	(1,054,297	)	$	(1,522,005	)	$	4,756,760
Net (loss) attributable to Class B common stockholders		(3,199,766	)		-			(5,528,804	)		-
Net income (loss) attributable to common stockholders		(3,199,766	)		-			(5,528,804	)		-
Total net (loss) income attributable to Snail Inc and Snail Games USA Inc.	$	(4,079,431	)	$	(1,054,297	)	$	(7,050,809	)	$	4,756,760
Class A weighted average shares outstanding - basic		7,901,145			35,000,000			7,914,096			35,000,000
Class B weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
Class A and B basic earnings per share	$	(0.11	)	$	(0.03	)	$	(0.19	)	$	0.14

Diluted Earnings Per Share:
Net (loss) income attributable to Class A common stockholders	$	(879,665	)	$	(1,054,297	)	$	(1,522,005	)	$	4,756,760
Net (loss) attributable to Class B common stockholders	$	(3,199,766	)	$	-		$	(5,528,804	)	$	-
Net income (loss) attributable to common stockholders	$	(3,199,766	)	$	-		$	(5,528,804	)	$	-
Class A weighted average shares outstanding - basic		7,901,145			35,000,000			7,914,096			35,000,000
Dilutive effects of common stock equivalents		-			-			-			-
Class A weighted average shares outstanding - diluted		7,901,145			35,000,000			7,914,096			35,000,000
Class B weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
Weighted average shares outstanding - basic		28,748,580			-			28,748,580			-
Dilutive effects of common stock equivalents		-			-			-			-
Class B weighted average shares outstanding - diluted		28,748,580			-			28,748,580			-
Weighted average shares outstanding - diluted		28,748,580			-			28,748,580			-
Diluted (loss) earnings per Class A and B share	$	(0.11	)	$	(0.03	)	$	(0.19	)	$	0.14

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
INCOME TAXES (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 1,081,887	$ 327,347	$ 1,887,705	$ (1,202,303)
Income tax expense (benefit)	$ (1,081,887)	$ (327,347)	$ (1,887,705)	$ 1,202,303
Effective Income Tax Rate Reconciliation, Tax Credit, Percent			21.00%	20.00%
Federal statutory income tax rate			21.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 10, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-41556
Entity Registrant Name	SNAIL, INC.
Entity Central Index Key	0001886894
Entity Tax Identification Number	88-4146991
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	12049 Jefferson Blvd
Entity Address, City or Town	Culver City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90230
City Area Code	(310)
Local Phone Number	988-0643
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	SNAL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Common Class A [Member]
Entity Common Stock, Shares Outstanding		7,901,145
Common Class B [Member]
Entity Common Stock, Shares Outstanding		28,748,580

SCHEDULE OF EARNINGS PER SHARE (Details) - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Basic Earnings Per Share:

Total net (loss) income attributable to Snail Inc and Snail Games USA Inc.

$ (4,079,431)

$ (1,054,297)

$ (7,050,809)

$ 4,756,760

Class A and B basic earnings per share

$ (0.11)

$ (0.03)

$ (0.19)

$ 0.14

Diluted Earnings Per Share:

Diluted (loss) earnings per Class A and B share

$ (0.11)

$ (0.03)

$ (0.19)

$ 0.14

Common Class A [Member]

Basic Earnings Per Share:

Net income (loss) attributable to common stockholders

$ (879,665)

$ (1,054,297)

$ (1,522,005)

$ 4,756,760

Weighted average shares outstanding - basic

^[1]

7,901,145

35,000,000

7,914,096

35,000,000

Diluted Earnings Per Share:

Net income (loss) attributable to common stockholders

$ (879,665)

$ (1,054,297)

$ (1,522,005)

$ 4,756,760

Dilutive effects of common stock equivalents

Weighted average shares outstanding - diluted

^[1]

7,901,145

35,000,000

7,914,096

35,000,000

Common Class B [Member]

Basic Earnings Per Share:

Net income (loss) attributable to common stockholders

$ (3,199,766)

$ (5,528,804)

Weighted average shares outstanding - basic

28,748,580

Diluted Earnings Per Share:

Net income (loss) attributable to common stockholders

$ (3,199,766)

$ (5,528,804)

Dilutive effects of common stock equivalents

Weighted average shares outstanding - diluted

28,748,580

[1]	The shares used for the denominator in the calculation of EPS are the number of shares transferred in the reorganization transaction for comparative purposes. Snail Games USA Inc. did not have Class A common stock as of June 30, 2022.

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Accounts receivable, allowance for credit loss, current	$ 19,929	$ 31,525
Treasury stock, shares	1,350,275	1,197,649
Common Class A [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	9,251,420	9,251,420
Common stock, shares outstanding	7,901,145	8,053,771
Treasury stock, shares	1,350,275
Common Class B [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	28,748,580	28,748,580
Common stock, shares outstanding	28,748,580	28,748,580

ACCOUNTS RECEIVABLE – RELATED PARTY (Tables)

6 Months Ended

Jun. 30, 2023

Accounts Receivable Related Party

SCHEDULE OF ACCOUNTS RECEIVABLE RELATED PARTY


	2023			2022
Accounts receivable - related party	$	13,578,520		$	13,519,409
Less: Accounts payable - related party		(1,845,294	)		(2,175,225	)
Accounts receivable - related party, net	$	11,733,226		$	11,344,184

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Lease Right-of-use Assets
Cash paid for amounts included in the measurement of lease liabilities	$ 770,508	$ 747,474
Weighted average remaining lease term	2 years 4 months 24 days	3 years 4 months 24 days
Weighted average discount rate	500.00%	500.00%

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	$ 9,892,253	$ 15,463,522	$ 23,350,741	$ 43,518,113
Sales Channel Directly To Consumer Digital Online Service [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	6,993,844	12,358,808	17,779,614	37,034,823
Sales Channel Directly To Consumer Mobile Sale [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	1,508,203	2,393,878	3,226,235	5,185,198
Sales Channel, Through Intermediary [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	1,390,206	710,836	2,344,892	1,298,092
Console [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	3,626,475	5,415,772	9,400,065	23,407,351
Pc [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	3,367,369	6,943,036	8,379,549	13,627,472
Mobile [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	1,508,203	2,393,878	3,226,235	5,185,198
Manufactured Product, Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	1,390,206	710,836	2,344,892	1,298,092
UNITED STATES
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	8,363,756	13,971,832	20,141,630	40,258,628
Non-US [Member]
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers:	$ 1,528,497	$ 1,491,690	$ 3,209,111	$ 3,259,485

SCHEDULE OF ACCOUNTS RECEIVABLE RELATED PARTY (Details) - Related Party [Member] - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Accounts receivable - related party	$ 13,578,520	$ 13,519,409
Less: Accounts payable - related party	(1,845,294)	(2,175,225)
Accounts receivable - related party, net	$ 11,733,226	$ 11,344,184

INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 11 – INTANGIBLE ASSETS

Intangible assets consist of game licenses, game software underlying intellectual property rights, game trademarks and other branding items. The Company amortizes the intangible assets over its useful life.

The following tables reflect all the intangible assets presented on the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022:

SCHEDULE OF INTANGIBLE ASSETS

	June 30, 2023
	Gross									Weighted
	Carrying		Accumulated			Impairment		Net Book		Average
	Amount		Amortization			Loss		Value		Useful Life
License rights from related parties	$	136,665,000	$	(136,338,913	)	$	—	$	326,087	3 - 5 years
License rights	$	3,000,000	$	(3,000,000	)	$	—	$	—	5 years
Intangible assets - other:
Software	$	51,784	$	(51,784	)	$	—	$	—	3 years
Trademark		10,745		(9,512	)		—		1,233	12 years
In-progress patent		270,886		—			—		270,886
Total:	$	333,415	$	(61,296	)	$	—	$	272,119

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

	December 31, 2022
	Gross									Weighted
	Carrying		Accumulated			Impairment		Net Book		Average
	Amount		Amortization			Loss		Value		Useful Life
License rights from related parties	$	136,665,000	$	(135,280,942	)	$	—	$	1,384,058	3 - 5 years
License rights	$	3,000,000	$	(3,000,000	)	$	—	$	—	5 years
Intangible assets - other:
Software	$	51,784	$	(51,784	)	$	—	$	—	3 years
Trademark		10,745		(9,110	)		—		1,635	12 years
In-progress patent		270,886		—			—		270,886
Total:	$	333,415	$	(60,894	)	$	—	$	272,521

Amortization expense was $362,520 and $1,951,204 for the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $1,058,373 and $3,952,407 for the six months ended June 30, 2023 and 2022, respectively. These amounts are included in cost of revenues in the accompanying condensed consolidated statements of operations and comprehensive income (loss). The weighted average remaining useful life for which amortization expense will be recognized is 0.5 years as of June 30, 2023. Future amortization expense of intangible assets is as follows:

Years ending December 31,	Amount
Remainder of 2023	$	326,489
2024		804
2025		27
2026		—
2027		—
Thereafter		270,886
Total	$	598,206

SCHEDULE OF SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS (Details)	Jun. 30, 2023	Dec. 31, 2022
Snail Innovation Institute [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	70.00%	70.00%
Donkey Crew, LLC [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	99.00%	99.00%
BTBX.IO, LLC [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	70.00%	70.00%
Subsidiaries [Member] \| Snail Games Usa Inc [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	100.00%
Subsidiaries [Member] \| Snail Innovation Institute [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	70.00%
Subsidiaries [Member] \| Frostkeep Studios Inc [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	100.00%
Subsidiaries [Member] \| Eminence Corp [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	100.00%
Subsidiaries [Member] \| Wandering Wizard Llc [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	100.00%
Subsidiaries [Member] \| Donkey Crew, LLC [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	99.00%
Subsidiaries [Member] \| Interactive Films Llc [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	100.00%
Subsidiaries [Member] \| Project WK Productions Llc [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	100.00%
Subsidiaries [Member] \| BTBX.IO, LLC [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equity interest owned by the company	70.00%