CULVER
CITY, Calif., April 1,
2024 /PRNewswire/ -- 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 fourth quarter and
full year ended December 31,
2023.
"This past year has been filled with exciting milestones for
Snail. We launched ARK: Survival Ascended, which sold more
than 600,000 units within the first two weeks and surpassed 1.5
million units in sales to date. We are pleased to see the continued
engagement in the ARK series and plan to build on this
momentum in 2024."
Fourth Quarter & Full Year 2023 Highlights
- 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.
- Since its launch, ARK: Survival Ascended sold 1.6
million units and has an average of 182,000 daily active users
("DAUs") with a peak of 308,000 DAUs.
- ARK: Survival Evolved. In the three months
and year ended December 31, 2023,
ARK: Survival Evolved averaged a total of 192,000 DAUs and
235,000 DAUs, respectively.
-
- ARK: Survival Evolved units sold increased for the
fourth quarter 2023 compared to the same period in 2022;
approximately 0.7 million vs. 1.6 million, respectively.
- Units sold decreased for the year ended December 31, 2023 compared to the same period in
2022; approximately 4.4 million vs. 5.5 million, respectively.
Net revenues for the three months ended December 31, 2023 was $28.6 million as compared to $15.3 million in the three months ended
December 31, 2022. The increase in
net revenues was primarily due to the release of ARK: Survival
Ascended.
Net revenues for the year ended December 31, 2023 decreased by $13.5 million to $60.9 million, or 18.2%, compared to $74.4 million in the prior year period. The
decrease in net revenues was due to a decrease in Ark Mobile sales
of $2.9 million, a decrease in
one-time deferred revenue from contracts recognized in 2022 of
$10.3 million, one-time payments in
2022 of $8.5 million related to free
download promotions and DLC's, that did not occur in 2023 and an
increase in deferred revenues of $25.2
million related to Ark; partially offset by an
increase in Ark sales of $32.7
million.
Net income for the three months ended December 31, 2023 was $2.4
million compared to a net loss of $2.3 million for the three months ended
December 31, 2022. The increase in
net income is due to the release of ARK: Survival Ascended,
reduced general and administrative expenses of $2.5 million and decreased professional expenses
related to compliance with public company requirements and
litigation related expenses, partially offset by increased
advertising and marketing costs of $0.9
million related to the ARK: Survival Ascended release
and a $3.9 million decrease in the
income tax benefit for the period.
Net loss was $9.1
million for the year ended December
31, 2023 as compared to a net income of $1.0 million for the year ended December 31, 2022, representing a decrease of
$10.1 million. The decrease was
primarily due to decreased revenues of $13.5
million, increased research and development costs of
$2.2 million, increased advertising
and marketing costs of $0.9 million,
increased interest expenses of $0.6
million, decreased interest income – related party of
$0.6 million, partially offset by a
decrease in cost of revenues of $4.8
million, and a decrease in general and administrative
expenses of $2.9 million.
Bookings for the three months ended December 31, 2023 was $52.6 million as compared to $11.9 million for the three months ended
December 31, 2022. The increase was
due to the strong release of ARK: Survival Ascended on the
Steam, PlayStation and Xbox platforms.
Bookings for the year ended December 31, 2023 was $85.7 million as compared to $63.7 million in the year ended December 31, 2022. The increase was due to the
release of ARK: Survival Ascended in the fourth quarter of
2023. In addition to increased sales of ARK: Survival
Ascended, the Company deferred approximately $22.0 million in revenues during the fourth
quarter of 2023 for the ARK: Survival Ascended DLC's which
have not yet released and had $10.3
million in one-time deferred contract revenues recognized in
2022 that did not occur in 2023.
Earnings before interest, taxes, depreciation and
amortization ("EBITDA") for the three months ended December 31, 2023 increased by $8.8 million, or 169%, as compared to the three
months ended December 31, 2022. The
increase was primarily the result of an increase in net income of
$4.7million, partially offset by an
increase in provision for income taxes of $3.9 million.
EBITDA for the year ended December 31, 2023 decreased by $9.0 million, or 1,198.1%, compared to the year
ended December 31, 2022, primarily as
a result of a decrease in net income of $10.1 million, partially offset by a decrease in
interest income of $0.7 million and
an increase in interest expense of $0.6
million.
As of December 31, 2023,
unrestricted cash was $15.2 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
December 31,
|
|
Years ended December
31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
(in
millions)
|
|
(in
millions)
|
|
Total net
revenue
|
$
28.6
|
$
15.3
|
|
$
60.9
|
$
74.4
|
|
Change in deferred net
revenue
|
24.0
|
(3.4)
|
|
24.8
|
(10.7)
|
|
Bookings
|
$
52.6
|
$
11.9
|
|
$
85.7
|
$
63.7
|
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
December 31,
|
|
Years ended December
31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
(in
millions)
|
|
(in
millions)
|
|
Net (loss)
income
|
$
2.4
|
$
(2.3)
|
|
$
(9.1)
|
$
1.0
|
|
Interest income and
interest income – related parties
|
-
|
(0.2)
|
|
(0.1)
|
(0.8)
|
|
Interest expense and
interest expense – related parties
|
0.5
|
0.3
|
|
1.5
|
0.9
|
|
(Benefit from)
provision for income taxes
|
0.6
|
(3.2)
|
|
(2.4)
|
(2.4)
|
|
Depreciation and
amortization expense, property and
equipment
|
0.1
|
0.2
|
|
0.4
|
0.6
|
|
EBITDA
|
$
3.6
|
$
(5.2)
|
|
$
(9.7)
|
$
(0.7)
|
Webcast Details
The Company will host a webcast at 4:30
PM ET today to discuss the fourth quarter and full year 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
Consolidated Balance
Sheets
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
15,198,123
|
|
$
12,863,817
|
|
Restricted escrow
deposit
|
-
|
|
1,003,804
|
|
Accounts receivable,
net of allowances for credit losses of $523,500 and $19,929,
respectively
|
25,134,808
|
|
6,758,024
|
|
Accounts receivable -
related party
|
-
|
|
11,344,184
|
|
Loan and interest
receivable - related party
|
103,753
|
|
101,753
|
|
Prepaid expenses -
related party
|
6,044,404
|
|
-
|
|
Prepaid expenses and
other current assets
|
10,169,448
|
|
10,565,141
|
|
Total current
assets
|
56,650,536
|
|
42,636,723
|
|
|
|
|
|
Restricted cash and
cash equivalents
|
1,116,196
|
|
6,374,368
|
|
Accounts receivable -
related party, net of current portion
|
7,500,592
|
|
-
|
|
Prepaid expenses -
related party
|
7,784,062
|
|
5,582,500
|
|
Property, plant and
equipment, net
|
4,682,066
|
|
5,114,799
|
|
Intangible assets, net
- license - related parties
|
-
|
|
1,384,058
|
|
Intangible assets, net
- other
|
271,717
|
|
272,521
|
|
Deferred income
taxes
|
10,247,500
|
|
7,602,536
|
|
Other noncurrent
assets
|
164,170
|
|
198,668
|
|
Operating lease
right-of-use assets, net
|
2,440,690
|
|
3,606,398
|
|
Total assets
|
$
90,857,529
|
|
$
72,772,571
|
|
|
|
|
|
LIABILITIES,
NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
12,102,929
|
|
$
9,452,391
|
|
Accounts payable -
related parties
|
23,094,436
|
|
19,918,259
|
|
Accrued expenses and
other liabilities
|
2,887,193
|
|
1,474,088
|
|
Interest payable -
related parties
|
527,770
|
|
527,770
|
|
Revolving
loan
|
6,000,000
|
|
9,000,000
|
|
Notes
payable
|
2,333,333
|
|
5,416,666
|
|
Convertible notes, net
of discount
|
797,361
|
|
-
|
|
Current portion of
long-term promissory note
|
2,811,923
|
|
86,524
|
|
Current portion of
deferred revenue
|
19,252,628
|
|
4,335,404
|
|
Current portion of
operating lease liabilities
|
1,505,034
|
|
1,371,227
|
|
Total current
liabilities
|
71,312,607
|
|
51,582,329
|
|
|
|
|
|
Accrued
expenses
|
254,731
|
|
457,024
|
|
Promissory note, net of
current portion
|
-
|
|
3,221,963
|
|
Deferred revenue, net
of current portion
|
15,064,078
|
|
5,216,042
|
|
Operating lease
liabilities, net of current portion
|
1,425,494
|
|
2,930,529
|
|
Total
liabilities
|
88,056,910
|
|
63,407,887
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
Class A common stock,
$0.0001 par value, 500,000,000 shares authorized; 9,275,420 shares
issued and 7,925,145 shares
outstanding as of December 31, 2023, and 9,251,420 shares issued
and 8,053,771 shares outstanding as of December 31,
2022
|
927
|
|
925
|
|
Class B common stock,
$0.0001 par value, 100,000,000 shares authorized; 28,748,580 shares
issued and outstanding as of
December 31, 2023 and 2022
|
2,875
|
|
2,875
|
|
Additional paid-in
capital
|
26,171,575
|
|
23,436,942
|
|
Accumulated other
comprehensive loss
|
(254,383)
|
|
(307,200)
|
|
Accumulated
deficit
|
(13,949,325)
|
|
(4,863,250)
|
|
11,971,669
|
|
18,270,292
|
|
Treasury stock at cost
(1,350,275 and 1,197,649 shares as of December 31, 2023 and 2022,
respectively)
|
(3,671,806)
|
|
(3,414,713)
|
|
Total Snail, Inc.
equity
|
8,299,863
|
|
14,855,579
|
|
Noncontrolling
interests
|
(5,499,244)
|
|
(5,490,895)
|
|
Total stockholders'
equity
|
2,800,619
|
|
9,364,684
|
|
Total liabilities,
noncontrolling interests and stockholders' equity
|
$
90,857,529
|
|
$
72,772,571
|
|
Snail, Inc. and
Subsidiaries
Consolidated
Statements of Operations and Comprehensive Income
(Loss)
|
|
Three months ended
December 31,
|
|
For the Years Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
|
|
|
Revenues,
net
|
$
28,570,222
|
|
$
15,311,857
|
|
$
60,902,098
|
|
$
74,444,141
|
|
Cost of
revenues
|
18,646,615
|
|
12,724,280
|
|
48,306,403
|
|
53,121,676
|
|
|
|
|
|
|
|
|
|
Gross profit
|
9,923,607
|
|
2,587,577
|
|
12,595,695
|
|
21,322,465
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General and
administrative
|
3,900,962
|
|
6,369,288
|
|
15,816,088
|
|
18,713,958
|
|
Research and
development
|
1,165,381
|
|
1,295,631
|
|
5,057,421
|
|
2,955,592
|
|
Advertising and
marketing
|
1,094,146
|
|
145,365
|
|
1,582,464
|
|
714,492
|
|
Depreciation and
amortization
|
86,222
|
|
130,262
|
|
432,306
|
|
565,906
|
|
Loss (gain) on
disposal of fixed assets
|
427
|
|
(17,067)
|
|
427
|
|
(17,067)
|
|
Total operating
expenses
|
6,247,138
|
|
7,923,479
|
|
22,888,706
|
|
22,932,881
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
3,676,469
|
|
(5,335,902)
|
|
(10,293,011)
|
|
(1,610,416)
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
31,443
|
|
155,124
|
|
129,854
|
|
200,913
|
|
Interest income -
related parties
|
504
|
|
504
|
|
2,000
|
|
582,632
|
|
Interest
expense
|
(570,523)
|
|
(308,955)
|
|
(1,531,719)
|
|
(922,293)
|
|
Interest expense -
related parties
|
-
|
|
-
|
|
-
|
|
(3,222)
|
|
Other
income
|
(55,351)
|
|
(17,068)
|
|
265,980
|
|
302,086
|
|
Foreign currency
transaction (loss) gain
|
(42,574)
|
|
(23,623)
|
|
(68,180)
|
|
(1,945)
|
|
Total other income
(expense), net
|
(636,501)
|
|
(194,018)
|
|
(1,202,065)
|
|
158,171
|
|
|
|
|
|
|
|
|
|
Income (loss) before
(benefit from) provision for income taxes
|
3,039,968
|
|
(5,529,920)
|
|
(11,495,076)
|
|
(1,452,245)
|
|
|
|
|
|
|
|
|
|
Provision for (benefit
from) income taxes
|
643,728
|
|
(3,249,728)
|
|
(2,400,652)
|
|
(2,446,423)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
2,396,240
|
|
(2,280,192)
|
|
(9,094,424)
|
|
994,178
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to non-controlling interests
|
(1,128)
|
|
(9,977)
|
|
(8,349)
|
|
46,371
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Snail, Inc. and Snail Games USA Inc.
|
$
2,397,368
|
|
$
(2,270,215)
|
|
$
(9,086,075)
|
|
$
947,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
statement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
2,396,240
|
|
$
(2,280,192)
|
|
$
(9,094,424)
|
|
$
994,178
|
|
Other comprehensive
income (loss) related to currency translation adjustments, net of
tax
|
33,302
|
|
36,077
|
|
52,817
|
|
(40,643)
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income (loss)
|
$
2,429,542
|
|
$
(2,244,115)
|
|
$
(9,041,607)
|
|
$
953,535
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Class A common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
516,955
|
|
$
(530,686)
|
|
$
(1,960,813)
|
|
$
228,482
|
|
Diluted
|
$
516,955
|
|
$
(530,686)
|
|
$
(1,960,813)
|
|
$
228,482
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Class B common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
1,880,413
|
|
$
(1,739,529)
|
|
$
(7,125,262)
|
|
$
719,325
|
|
Diluted
|
$
1,880,413
|
|
$
(1,739,529)
|
|
$
(7,125,262)
|
|
$
719,325
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share attributable to Class A common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
(0.06)
|
|
$
(0.25)
|
|
$
0.03
|
|
Diluted
|
$
0.07
|
|
$
(0.06)
|
|
$
(0.25)
|
|
$
0.03
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share attributable to Class B common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
(0.06)
|
|
$
(0.25)
|
|
$
0.03
|
|
Diluted
|
$
0.07
|
|
$
(0.06)
|
|
$
(0.25)
|
|
$
0.03
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute income per share attributable to Class A
common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
7,914,564
|
|
8,770,468
|
|
7,911,369
|
|
9,131,512
|
|
Diluted
|
7,914,564
|
|
8,770,468
|
|
7,911,369
|
|
9,131,512
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute income per share attributable to Class B
common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
28,748,580
|
|
28,748,580
|
|
28,748,580
|
|
28,748,580
|
|
Diluted
|
28,748,580
|
|
28,748,580
|
|
28,748,580
|
|
28,748,580
|
|
Snail, Inc. and
Subsidiaries
Consolidated
Statements of Cash Flows
|
|
For the years
ended December 31,
|
2023
|
|
2022
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net (loss)
income
|
$
(9,094,424)
|
|
$
994,178
|
|
Adjustments to
reconcile net (loss) income to net cash used in operating
activities:
|
|
|
|
|
Amortization -
intangible assets - license
|
-
|
|
250,000
|
|
Amortization -
intangible assets - license, related parties
|
1,384,058
|
|
7,403,918
|
|
Amortization -
intangible assets - other
|
804
|
|
3,751
|
|
Amortization - loan
origination fees and debt discounts
|
124,595
|
|
26,514
|
|
Accretion -
convertible notes
|
306,664
|
|
-
|
|
Depreciation and
amortization - property and equipment
|
432,306
|
|
565,906
|
|
Stock-based
compensation expense
|
848,035
|
|
223,250
|
|
Gain on lease
termination
|
-
|
|
(122,533)
|
|
Gain on paycheck
protection program and economic injury disaster loan
forgiveness
|
-
|
|
(174,436)
|
|
Loss (gain) on
disposal of fixed assets
|
427
|
|
(17,067)
|
|
Interest income from
shareholder loan
|
-
|
|
(580,878)
|
|
Interest income from
restricted escrow deposit
|
-
|
|
(3,804)
|
|
Credit
losses
|
581,498
|
|
-
|
|
Deferred taxes,
net
|
(2,644,964)
|
|
588,478
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
(18,939,465)
|
|
5,486,716
|
|
Accounts receivable -
related party
|
3,824,775
|
|
(2,908,361)
|
|
Prepaid expenses -
related party
|
(8,245,966)
|
|
(2,437,500)
|
|
Prepaid expenses and
other current assets
|
501,104
|
|
(1,875,919)
|
|
Other noncurrent
assets
|
-
|
|
(26,052)
|
|
Accounts
payable
|
2,992,856
|
|
4,976,192
|
|
Accounts payable -
related parties
|
3,176,177
|
|
(3,815,313)
|
|
Accrued expenses and
other liabilities
|
659,647
|
|
(1,039,927)
|
|
Interest receivable -
related party
|
(2,000)
|
|
-
|
|
Interest payable -
related parties
|
-
|
|
986
|
|
Lease
liabilities
|
(205,520)
|
|
(145,949)
|
|
Deferred
revenue
|
24,765,261
|
|
(10,729,488)
|
|
Net cash provided by
(used in) operating activities
|
465,868
|
|
(3,357,338)
|
|
|
|
|
|
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
|
(79,897)
|
|
(70,961)
|
|
Repayments on notes
payable
|
(6,500,000)
|
|
(4,166,667)
|
|
Repayments on
revolving loan
|
(3,000,000)
|
|
-
|
|
Borrowings on notes
payable
|
3,000,000
|
|
-
|
|
Borrowings on
short-term note
|
-
|
|
10,000,000
|
|
Proceeds from issuance
of convertible notes
|
847,500
|
|
-
|
|
Refund of dividend
withholding tax overpayment
|
1,886,600
|
|
-
|
|
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)
|
|
(3,414,713)
|
|
Proceeds from initial
public offering, net of offering costs
|
-
|
|
11,791,705
|
|
Warrants issued to
underwriters
|
-
|
|
193,927
|
|
Payments of
capitalized offering costs
|
-
|
|
(1,247,567)
|
|
Payments of offering
costs in accounts payable
|
(342,318)
|
|
-
|
|
Release of restricted
escrow deposit
|
1,003,804
|
|
-
|
|
Net cash (used in)
provided by financing activities
|
(3,441,404)
|
|
4,843,831
|
|
|
|
|
|
Effect of currency
translation on cash and cash equivalents
|
51,670
|
|
(12,730)
|
|
|
|
|
|
Net (decrease) increase
in cash and cash equivalents, and restricted cash and cash
equivalents
|
(2,923,866)
|
|
2,684,070
|
|
|
|
|
|
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
|
$
16,314,319
|
|
$
19,238,185
|
|
|
|
|
|
Supplemental
disclosures of cash flow information
|
|
|
|
|
Cash paid during
the period for:
|
|
|
|
|
Interest
|
$
934,523
|
|
$
788,063
|
|
Income
taxes
|
$
248,388
|
|
$
888,303
|
|
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:
|
|
|
|
|
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)
|
|
Snail Games USA Common
Stock transferred due to reorganization
|
$
-
|
|
$
(5,000)
|
|
Snail, Inc. Common
Stock and additional paid-in capital transferred due to
reorganization
|
$
-
|
|
$
5,000
|
|
Offering costs
included in accounts payable
|
$
-
|
|
$
605,295
|
|
Funding of the escrow
deposit
|
$
-
|
|
$
(1,000,000)
|
View original
content:https://www.prnewswire.com/news-releases/snail-inc-reports-fourth-quarter--full-year-2023-financial-results-302104231.html
SOURCE Snail, Inc.
