UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 2.02 | Results of Operations and Financial Condition. |
On November 14, 2023, Snail, Inc. (“Snail”) issued a press release announcing its financial results for the third fiscal quarter ended September 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1.
Neither the information in this Form 8-K nor the information in the press release attached hereto as Exhibit 99.1 shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit No. | Description | |
| 99.1 | Press Release dated November 14, 2023, relating to Snail, Inc.’s financial results for its third fiscal quarter ended September 30, 2023. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SNAIL, INC. | ||
| Date: November 14, 2023 | By: | /s/ Jim S. Tsai |
| Name: | Jim S. Tsai | |
| Title: | Chief Executive Officer | |
Exhibit 99.1
Snail, Inc. Reports Third Quarter 2023 Financial Results
Culver City, CA – November 14, 2023 – Snail, Inc. (NASDAQ: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced financial results for its third quarter ended September 30, 2023.
“We are thrilled with our third quarter results and the successful official release of ARK Survival Ascended. Collaborating with the incredible Studio Wildcard team on this captivating remake of ARK Survival Evolved has been an absolute delight,” said Jim Tsai, CEO of Snail. “In a short time, we have witnessed an overwhelming level of engagement from our growing global player base. In the first 24 hours, we sold 336,000 units, greatly surpassing our initial expectations. To date, we have sold more than 600,000 units. We are looking forward to continuing to build upon the momentum and creativity within this exciting new chapter of the ARK series.”
Third Quarter 2023 & Subsequent Business Highlights
| ● | ARK: Survival Evolved. In the three months ended September 30, 2023, ARK: Survival Evolved averaged a total of 231,337 daily active users (“DAUs”) versus 339,884 DAUs in the prior year period. |
| ○ | ARK: Survival Evolved units sold increased for the third quarter 2023 compared to the same period last year; approximately 1.2 million vs. 1.1 million, respectively. | |
| ○ | Through September 30, 2023, total playtime for the ARK franchise amounted to 3.4 billion hours with an average playing time per user of more than 162 hours and with the top 21.0% of all players spending over 100 hours in the game, according to data obtained from the Steam platform. |
| ● | ARK: Survival Ascended. On October 25, 2023, the Company launched its flagship remake of the ARK franchise leveraging Unreal Engine 5’s stunning graphics and introduced a game-altering cross-platform modding system, ushering in a new era of creativity. |
| ○ | ARK: Survival Ascended was ranked the top #1 selling game on Steam on launch day. | |
| ○ | Within five days of launch, ARK: Survival Ascended ranked among the top 8 most popular and played games on Steam with 221,000 average DAUs. | |
| ○ | From initial launch through October 31, 2023, units sold surpassed expectation by 1.6x. |
Selected Third Quarter 2023 Financial Highlights
| ● | Revenue was $9.0 million for the three months ended September 30, 2023, compared to revenue of $15.6 million in the prior year period, representing a decrease of $6.6 million year over year. The decrease in net revenues was due to a one-time contract revenue payment recognized from deferred revenue for a free week promotion in the amount of $4.0 million that occurred in the three months ended September 2022 but not in 2023 and a decrease in sales of ARK, due to lower average selling prices. ARK sales and in-game purchases decreased by $2.0 million. Sales of the Company’s smaller titles decreased by a collective $0.4 million. |
| ● | Net loss was $4.4 million for the three months ended September 30, 2023 as compared to a net loss of $1.5 million for the three months ended September 30, 2022, representing a decrease of $2.9 million. | |
| ● | Bookings for the three months ended September 30, 2023 decreased by $0.8 million, or 7.3%, compared to the three months ended September 30, 2022, primarily as a result of a decrease in ARK revenues and in-game purchases which contributed to $2.0 million of the decrease during the three months ended September 30, 2023 and $4.0 million in deferred revenue recognized during the three months ended September 30, 2022 for obligations met during the period. | |
| ● | Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the third quarter of 2023 was a loss of $5.1 million compared to a loss of $1.5 million in the prior year period. | |
| ● | As of September 30, 2023, unrestricted cash was $4.9 million versus $12.9 million as of December 31, 2022. |
Use of Non-GAAP Financial Measures
In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. EBITDA adjusts for items that Snail believes do not reflect the ongoing operating performance of its business, such as certain non-cash items, unusual or infrequent items or items that change from period to period without any material relevance to its operating performance. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail’s operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates and capital investments.
Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure.
Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
| Total net revenue | $ | 9.0 | $ | 15.6 | $ | 32.3 | $ | 59.1 | ||||||||
| Change in deferred net revenue | 1.5 | (4.3 | ) | 0.8 | (7.3 | ) | ||||||||||
| Bookings | $ | 10.5 | $ | 11.3 | $ | 33.1 | $ | 51.8 | ||||||||
We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) income tax provision (benefit from) and (iv) depreciation and amortization expense. The following table provides a reconciliation from net income (loss) to EBITDA:
Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
| Net (loss) income | $ | (4.4 | ) | $ | (1.5 | ) | $ | (11.5 | ) | $ | 3.3 | |||||
| Interest income and interest income – related parties | - | - | (0.1 | ) | (0.6 | ) | ||||||||||
| Interest expense and interest expense – related parties | 0.4 | 0.3 | 1.0 | 0.6 | ||||||||||||
| (Benefit from) provision for income taxes | (1.2 | ) | (0.4 | ) | (3.0 | ) | 0.8 | |||||||||
| Depreciation and amortization expense, property and equipment | 0.1 | 0.1 | 0.3 | 0.4 | ||||||||||||
| EBITDA | $ | (5.1 | ) | $ | (1.5 | ) | $ | (13.3 | ) | $ | 4.5 | |||||
Webcast Details
The Company will host a webcast at 5:00 PM ET today to discuss the third quarter 2023 financial results. Participants may access the live webcast and replay on the Company’s investor relations website at https://investor.snail.com/.
Forward-Looking Statements
This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “may,” “predict,” “continue,” “estimate” and “potential,” or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail’s intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail’s business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: growth prospects and strategies; launching new games and additional functionality to games that are commercially successful; expectations regarding significant drivers of future growth; its ability to retain and increase its player base and develop new video games and enhance existing games; competition from companies in a number of industries, including other casual game developers and publishers and both large and small, public and private Internet companies; its ability to attract and retain a qualified management team and other team members while controlling its labor costs; its relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, My Nintendo Store, the Apple App Store, the Google Play Store and the Amazon Appstore; the size of addressable markets, market share and market trends; its ability to successfully enter new markets and manage international expansion; protecting and developing its brand and intellectual property portfolio; costs associated with defending intellectual property infringement and other claims; future business development, results of operations and financial condition; the ongoing conflicts involving Russia and Ukraine, and Israel and Hamas, on its business and the global economy generally; rulings by courts or other governmental authorities; the Share Repurchase Program, including expectations regarding the timing and manner of repurchases made under the program; its plans to pursue and successfully integrate strategic acquisitions; assumptions underlying any of the foregoing.
Further information on risks, uncertainties and other factors that could affect Snail’s financial results are included in its filings with the Securities and Exchange Commission (the “SEC”) from time to time, annual reports on Forms 10-K and quarterly reports on 10-Q filed, or to be filed, with the SEC. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied in the forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on management’s beliefs and assumptions and on information currently available to Snail, and Snail does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
About Snail, Inc.
Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices.
For additional information, please contact: investors@snail.com
Snail, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
| September 30, 2023 | December 31, 2022 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 4,948,832 | $ | 12,863,817 | ||||
| Restricted escrow deposit | 1,037,739 | 1,003,804 | ||||||
| Accounts receivable, net of allowances for credit losses of $19,929 and $31,525, respectively | 4,083,369 | 6,758,024 | ||||||
| Accounts receivable - related party, net | 11,599,229 | 11,344,184 | ||||||
| Loan and interest receivable - related party | 103,249 | 101,753 | ||||||
| Prepaid expenses - related party | 2,500,000 | - | ||||||
| Prepaid expenses and other current assets | 11,482,303 | 10,565,141 | ||||||
| Total current assets | 35,754,721 | 42,636,723 | ||||||
| Restricted cash and cash equivalents | 1,115,084 | 6,374,368 | ||||||
| Prepaid expenses - related party | 5,582,500 | 5,582,500 | ||||||
| Property, plant and equipment, net | 4,768,715 | 5,114,799 | ||||||
| Intangible assets, net - license - related parties | 130,435 | 1,384,058 | ||||||
| Intangible assets, net - other | 271,918 | 272,521 | ||||||
| Deferred income taxes | 10,902,503 | 7,602,536 | ||||||
| Other noncurrent assets | 171,512 | 198,668 | ||||||
| Operating lease right-of-use assets, net | 2,738,554 | 3,606,398 | ||||||
| Total assets | $ | 61,435,942 | $ | 72,772,571 | ||||
| LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 9,956,626 | $ | 9,452,391 | ||||
| Accounts payable - related party | 19,669,868 | 19,918,259 | ||||||
| Accrued expenses and other liabilities | 2,305,132 | 1,474,088 | ||||||
| Interest payable - related parties | 527,770 | 527,770 | ||||||
| Revolving loan | 6,000,000 | 9,000,000 | ||||||
| Notes payable | 4,358,333 | 5,416,666 | ||||||
| Convertible notes, net of discount | 515,217 | - | ||||||
| Current portion of promissory note | 2,832,231 | 86,524 | ||||||
| Current portion of deferred revenue | 5,848,320 | 4,335,404 | ||||||
| Current portion of operating lease liabilities | 1,470,718 | 1,371,227 | ||||||
| Total current liabilities | 53,484,215 | 51,582,329 | ||||||
| Accrued expenses | 311,276 | 457,024 | ||||||
| Promissory note, net of current portion | - | 3,221,963 | ||||||
| Deferred revenue, net of current portion | 5,680,439 | 5,216,042 | ||||||
| Operating lease liabilities, net of current portion | 1,814,962 | 2,930,529 | ||||||
| Total liabilities | 61,290,892 | 63,407,887 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity: | ||||||||
| Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 9,251,420 shares issued, 7,901,145 and 8,053,771 shares outstanding as of September 30, 2023 and December 31, 2022, respectively | 925 | 925 | ||||||
| Class B common stock, $0.0001 par value, 100,000,000 shares authorized, 28,748,580 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 2,875 | 2,875 | ||||||
| Additional paid-in capital | 25,945,549 | 23,436,942 | ||||||
| Accumulated other comprehensive loss | (287,685 | ) | (307,200 | ) | ||||
| Accumulated deficit | (16,346,691 | ) | (4,863,250 | ) | ||||
| 9,314,973 | 18,270,292 | |||||||
| Treasury stock at cost (1,350,275 and 1,197,649 shares, respectively) | (3,671,806 | ) | (3,414,713 | ) | ||||
| Total Snail, Inc. equity | 5,643,167 | 14,855,579 | ||||||
| Noncontrolling interests | (5,498,117 | ) | (5,490,895 | ) | ||||
| Total stockholders’ equity | 145,050 | 9,364,684 | ||||||
| Total liabilities, noncontrolling interests and stockholders’ equity | $ | 61,435,942 | $ | 72,772,571 | ||||
Snail, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues, net | $ | 8,981,135 | $ | 15,614,171 | $ | 32,331,876 | $ | 59,132,284 | ||||||||
| Cost of revenues | 9,463,086 | 12,424,067 | 29,659,788 | 40,397,396 | ||||||||||||
| Gross profit, (loss) | (481,951 | ) | 3,190,104 | 2,672,088 | 18,734,888 | |||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 3,452,141 | 4,478,907 | 11,915,126 | 13,525,001 | ||||||||||||
| Research and development | 1,317,400 | 116,624 | 3,892,039 | 479,630 | ||||||||||||
| Advertising and marketing | 215,477 | 198,417 | 488,318 | 569,127 | ||||||||||||
| Depreciation and amortization | 112,914 | 128,536 | 346,084 | 435,644 | ||||||||||||
| Total operating expenses | 5,097,932 | 4,922,484 | 16,641,567 | 15,009,402 | ||||||||||||
| (Loss) income from operations | (5,579,883 | ) | (1,732,380 | ) | (13,969,479 | ) | 3,725,486 | |||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 47,147 | 12,712 | 98,411 | 45,789 | ||||||||||||
| Interest income - related parties | 504 | 505 | 1,496 | 582,128 | ||||||||||||
| Interest expense | (370,376 | ) | (261,070 | ) | (961,196 | ) | (613,338 | ) | ||||||||
| Interest expense - related parties | - | - | - | (3,222 | ) | |||||||||||
| Other income | 313,156 | 19,500 | 321,331 | 319,153 | ||||||||||||
| Foreign currency transaction (loss) gain | (1,394 | ) | 16,169 | (25,606 | ) | 21,679 | ||||||||||
| Total other (expense) income, net | (10,963 | ) | (212,184 | ) | (565,564 | ) | 352,189 | |||||||||
| (Loss) income before (benefit from) provision for income taxes | (5,590,846 | ) | (1,944,564 | ) | (14,535,043 | ) | 4,077,675 | |||||||||
| (Benefit from) provision for income taxes | (1,156,675 | ) | (398,998 | ) | (3,044,380 | ) | 803,305 | |||||||||
| Net (loss) income | (4,434,171 | ) | (1,545,566 | ) | (11,490,663 | ) | 3,274,370 | |||||||||
| Net (loss) income attributable to non-controlling interests | (1,539 | ) | (6,828 | ) | (7,222 | ) | 56,348 | |||||||||
| Net (loss) income attributable to Snail, Inc. and Snail Games USA Inc. | (4,432,632 | ) | (1,538,738 | ) | (11,483,441 | ) | 3,218,022 | |||||||||
| Comprehensive income statement: | ||||||||||||||||
| Other comprehensive income (loss) related to currency translation adjustments, net of tax | (1,512 | ) | 5,682 | 19,515 | (76,720 | ) | ||||||||||
| Total comprehensive (loss) income | $ | (4,434,144 | ) | $ | (1,533,056 | ) | $ | (11,463,926 | ) | $ | 3,141,302 | |||||
| Net (loss) income attributable to Class A common stockholders: | ||||||||||||||||
| Basic | $ | (955,763 | ) | $ | (1,538,738 | ) | $ | (2,477,768 | ) | $ | 3,218,022 | |||||
| Diluted | $ | (955,763 | ) | $ | (1,538,738 | ) | $ | (2,477,768 | ) | $ | 3,218,022 | |||||
| Net loss attributable to Class B common stockholders: | ||||||||||||||||
| Basic | $ | (3,476,869 | ) | $ | - | $ | (9,005,673 | ) | $ | - | ||||||
| Diluted | $ | (3,476,869 | ) | $ | - | $ | (9,005,673 | ) | $ | - | ||||||
| (Loss) income per share attributable to Class A and B common stockholders: | ||||||||||||||||
| Basic | $ | (0.12 | ) | $ | (0.04 | ) | $ | (0.31 | ) | $ | 0.09 | |||||
| Diluted | $ | (0.12 | ) | $ | (0.04 | ) | $ | (0.31 | ) | $ | 0.09 | |||||
| Weighted-average shares used to compute income per share attributable to Class A common stockholders(1): | ||||||||||||||||
| Basic | 7,901,145 | 35,000,000 | 7,909,715 | 35,000,000 | ||||||||||||
| Diluted | 7,901,145 | 35,000,000 | 7,909,715 | 35,000,000 | ||||||||||||
| Weighted-average shares used to compute income per share attributable to Class B common stockholders: | ||||||||||||||||
| Basic | 28,748,580 | - | 28,748,580 | - | ||||||||||||
| Diluted | 28,748,580 | - | 28,748,580 | - | ||||||||||||
Snail, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the Nine Month Period Ended September 30, | 2023 | 2022 | ||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (11,490,663 | ) | $ | 3,274,370 | |||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Amortization - intangible assets - license | - | 250,000 | ||||||
| Amortization - intangible assets - license, related parties | 1,253,623 | 5,552,938 | ||||||
| Amortization - intangible assets - other | 603 | 672 | ||||||
| Amortization - loan origination fees and debt discounts | 142,656 | 19,149 | ||||||
| Depreciation and amortization - property and equipment | 346,084 | 435,644 | ||||||
| Stock-based compensation expense | 622,007 | - | ||||||
| Gain on lease termination | - | (122,533 | ) | |||||
| Gain on paycheck protection program and economic injury disaster loan forgiveness | - | (174,436 | ) | |||||
| Gain on disposal of fixed assets | - | (17,067 | ) | |||||
| Interest income from shareholder loan | - | (580,878 | ) | |||||
| Interest income from restricted escrow deposit | (33,935 | ) | - | |||||
| Deferred taxes | (3,058,738 | ) | - | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 2,674,655 | 7,648,432 | ||||||
| Accounts receivable - related party | (255,045 | ) | (3,803,606 | ) | ||||
| Prepaid expenses - related party | (2,500,000 | ) | (4,875,000 | ) | ||||
| Prepaid expenses and other current assets | 156,450 | (2,232,406 | ) | |||||
| Other noncurrent assets | (2,903 | ) | (15,228 | ) | ||||
| Accounts payable | 846,553 | 2,905,024 | ||||||
| Accounts payable - related party | (248,391 | ) | (1,402,791 | ) | ||||
| Accrued expenses | 134,131 | (127,993 | ) | |||||
| Interest receivable - related parties | (1,496 | ) | - | |||||
| Interest payable - related parties | - | 1,490 | ||||||
| Lease liabilities | (148,233 | ) | (103,782 | ) | ||||
| Deferred revenue | 767,883 | (7,297,736 | ) | |||||
| Net cash used in operating activities | (10,794,759 | ) | (665,737 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Repayment on loan provided by related party | - | (300,000 | ) | |||||
| Purchases of property and equipment | - | (5,256 | ) | |||||
| Proceeds from sale of property and equipment | - | 19,500 | ||||||
| Repayment on Pound Sand note | - | 1,496,063 | ||||||
| Net cash provided by investing activities | - | 1,210,307 | ||||||
| Cash flows from financing activities: | ||||||||
| Repayments on promissory note | (59,589 | ) | (57,967 | ) | ||||
| Repayments on note payable | (3,750,000 | ) | (3,333,333 | ) | ||||
| Repayments on revolving loan | (3,000,000 | ) | - | |||||
| Borrowings on note payable | 2,275,000 | - | ||||||
| Borrowings on short-term note | - | 10,000,000 | ||||||
| Proceeds from issuance of convertible notes | 847,500 | - | ||||||
| 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 | ) | |||||
| Refund of dividend withholding tax overpayment | 1,886,600 | - | ||||||
| Purchase of treasury stock | (257,093 | ) | - | |||||
| Payments of offering costs in accounts payable | (342,318 | ) | - | |||||
| Net cash used in financing activities | (2,399,900 | ) | (1,633,193 | ) | ||||
| Effect of currency translation on cash and cash equivalents | 20,390 | (52,810 | ) | |||||
| Net decrease in cash and cash equivalents, and restricted cash and cash equivalents | (13,174,269 | ) | (1,141,433 | ) | ||||
| 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 | $ | 6,063,916 | $ | 15,412,682 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 725,885 | $ | 594,189 | ||||
| Income taxes | $ | 504,581 | $ | 831,400 | ||||
| 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 | ) | |||
| Deferred tax assets | $ | (241,229 | ) | $ | - | |||
| Prepaid income taxes | $ | 241,229 | $ | - | ||||
| Change in deferred revenues due to gain contingency | $ | 1,209,430 | $ | - | ||||
| Change in other receivables due to gain contingency | $ | (1,209,430 | ) | $ | - | |||
| Noncash finance activity during the period for: | ||||||||
| Issuance of warrants in connection with equity line of credit | $ | (105,411 | ) | $ | - | |||
| Gain on paycheck protection program and economic injury disaster loan forgiveness | $ | - | $ | (174,436 | ) | |||