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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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 13, 2022, Suzhou Snail transferred all of its right, title, and interest to all of the <span id="xdx_905_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20220713__20220713__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailTechnologyHkLimitedMember_zC6TmKoB1Hyg" title="Number of shares transferred">500,000</span> 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.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Reorganization Transaction and IPO</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90B_ecustom--CommonSharesTransferredInExchangeOfShares_iI_c20221109__dei--LegalEntityAxis__custom--SnailGamesUsaStockholdersMember_z740PQ4Fe2N5" title="Number of shares transferred">500,000</span> shares of common stock of Snail Games USA Inc. to Snail, Inc. in exchange for <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zByAvf10vvfe" title="Number of shares of common stock issued as per agreement">6,251,420</span> shares of Class A common stock and <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zjVULUf1iHzc" title="Number of shares of common stock issued as per agreement">28,748,580</span> 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 <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zgbLREs07sPi" title="Number of shares of common stock issued as per agreement">3,000,000</span> shares of Class A common stock at $<span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z02IdsoyCBTa" title="Share issued price">5.00</span> per share and net proceeds from the IPO were distributed to Snail Games USA Inc. in November 2022 in the amount of approximately $<span id="xdx_906_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_pn5n6_c20221101__20221130__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zF16oEj9rAgi" title="Net proceeds from shares issued in IPO">12.0</span> million, net of the underwriting discount and offering costs of $<span id="xdx_908_eus-gaap--PaymentsOfStockIssuanceCosts_pn5n6_c20221101__20221130__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zKQ2UUzZXXYd" title="Offering costs">3.0</span> million. In connection with the IPO, $<span id="xdx_908_eus-gaap--EscrowDeposit_iI_pn5n6_c20221130__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zKBu3FUOny8l" title="Amount deposited in escrow account">1.0</span> 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 <span id="xdx_902_ecustom--EscrowAccountPeriod_dtM_c20221101__20221130__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zy6trxnSRWF2" title="Period amount in escrow is restricted">12</span> months from the date of the offering, at which time the restrictions will be removed and the balance will be reverted to unrestricted cash.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Basis of Presentation and Consolidation</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 - <i>Equity</i>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_893_eus-gaap--ScheduleOfComprehensiveIncomeLossTableTextBlock_zGUUgZjUQJF1" style="font: 10pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"><span id="xdx_8B6_zxFkPAgs2UR2" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">SCHEDULE OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended March 31, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--CostOfRevenue_c20220101__20220331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zbxyBUoF7UV4" style="width: 14%; text-align: right" title="Cost of revenues">14,889,017</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--CostOfRevenue_c20220101__20220331__srt--RestatementAxis__srt--RestatementAdjustmentMember_z7DX0xbJZP21" style="width: 14%; text-align: right" title="Cost of revenues">824,798</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--CostOfRevenue_c20220101__20220331_zKL4iKrfapb8" style="width: 14%; text-align: right" title="Cost of revenues">15,713,815</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--GrossProfit_c20220101__20220331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zfjNrhVgvjyc" style="text-align: right" title="Gross profit">13,165,574</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GrossProfit_c20220101__20220331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zGLnhk20nmX7" style="text-align: right" title="Gross profit">(824,798</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--GrossProfit_c20220101__20220331_zbTSSpb8dxIh" style="text-align: right" title="Gross profit">12,340,776</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zVLCY5yfjTic" style="text-align: right" title="General and administrative">5,620,010</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220331__srt--RestatementAxis__srt--RestatementAdjustmentMember_ztElWa6UpJCh" style="text-align: right" title="General and administrative">(824,798</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220331_zuNkako5tWhg" style="text-align: right" title="General and administrative">4,795,212</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended June 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--CostOfRevenue_c20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zrKkgdkusfK1" style="width: 14%; text-align: right" title="Cost of revenues">11,386,885</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--CostOfRevenue_c20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zzLuRerPcD4j" style="width: 14%; text-align: right" title="Cost of revenues">872,629</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--CostOfRevenue_c20220401__20220630_zQ58loRQqHH5" style="width: 14%; text-align: right" title="Cost of revenues">12,259,514</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GrossProfit_c20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zQS7mbpJrvnh" style="text-align: right" title="Gross profit">4,076,637</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--GrossProfit_c20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zsF3Q8j9bC98" style="text-align: right" title="Gross profit">(872,629</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--GrossProfit_c20220401__20220630_zXeU9rA8N6nd" style="text-align: right" title="Gross profit">3,204,008</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--GeneralAndAdministrativeExpense_c20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zFlTdNew6jNh" style="text-align: right" title="General and administrative">5,123,511</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--GeneralAndAdministrativeExpense_c20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zJbUR57rTdM" style="text-align: right" title="General and administrative">(872,629</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--GeneralAndAdministrativeExpense_c20220401__20220630_zOF6A4XbzuId" style="text-align: right" title="General and administrative">4,250,882</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the six months ended June 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--CostOfRevenue_c20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zMqsNx6q8bOb" style="width: 14%; text-align: right" title="Cost of revenues">26,275,902</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--CostOfRevenue_c20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_z1V8xVT1cNQc" style="width: 14%; text-align: right" title="Cost of revenues">1,697,427</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CostOfRevenue_c20220101__20220630_ziWLRjHh74B6" style="width: 14%; text-align: right" title="Cost of revenues">27,973,329</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--GrossProfit_c20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zuOULWX8cBzk" style="text-align: right" title="Gross profit">17,242,211</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GrossProfit_c20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zHi3S6xgg0th" style="text-align: right" title="Gross profit">(1,697,427</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--GrossProfit_c20220101__20220630_zmVWav7wTdwf" style="text-align: right" title="Gross profit">15,544,784</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_ze1yFMp1Dmyl" style="text-align: right" title="General and administrative">10,743,521</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zADoEjhT1Gxg" style="text-align: right" title="General and administrative">(1,697,427</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220630_zJLJbXxmI2rd" style="text-align: right" title="General and administrative">9,046,094</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended September 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--CostOfRevenue_c20220701__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zxkApF4z8ug7" style="width: 14%; text-align: right" title="Cost of revenues">11,468,961</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--CostOfRevenue_c20220701__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zDg13dl4v1G2" style="width: 14%; text-align: right" title="Cost of revenues">955,106</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20220701__20220930_z0TwBUY3MrG8" style="width: 14%; text-align: right" title="Cost of revenues">12,424,067</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--GrossProfit_c20220701__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zY7NGDTjYC6j" style="text-align: right" title="Gross profit">4,145,210</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--GrossProfit_c20220701__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zRenajUsIcJl" style="text-align: right" title="Gross profit">(955,106</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--GrossProfit_c20220701__20220930_z7r6n5oxrGvi" style="text-align: right" title="Gross profit">3,190,104</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--GeneralAndAdministrativeExpense_c20220701__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zxevR1WWWdxd" style="text-align: right" title="General and administrative">5,434,013</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--GeneralAndAdministrativeExpense_c20220701__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zSyeVKJnl7T8" style="text-align: right" title="General and administrative">(955,106</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GeneralAndAdministrativeExpense_c20220701__20220930_z3i0HDw5iuab" style="text-align: right" title="General and administrative">4,478,907</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the nine months ended September 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--CostOfRevenue_c20220101__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zq4Zxzd8kDr" style="width: 14%; text-align: right" title="Cost of revenues">37,744,863</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--CostOfRevenue_c20220101__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zNM4mVyaJ7Ud" style="width: 14%; text-align: right" title="Cost of revenues">2,652,533</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20220101__20220930_zPH2MXSGghw" style="width: 14%; text-align: right" title="Cost of revenues">40,397,396</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--GrossProfit_c20220101__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zg5pJNXCSgjl" style="text-align: right" title="Gross profit">21,387,421</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--GrossProfit_c20220101__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zmMpD3aZfo63" style="text-align: right" title="Gross profit">(2,652,533</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GrossProfit_c20220101__20220930_zcWZHT6htZ9b" style="text-align: right" title="Gross profit">18,734,888</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zkzXMAseqZ6g" style="text-align: right" title="General and administrative">16,177,534</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zUVjeHVB7qPd" style="text-align: right" title="General and administrative">(2,652,533</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220930_zv1wMKdmIx29" style="text-align: right" title="General and administrative">13,525,001</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the twelve months ended December 31, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--CostOfRevenue_c20220101__20221231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zz4serCae6ya" style="width: 14%; text-align: right" title="Cost of revenues">49,507,888</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--CostOfRevenue_c20220101__20221231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zSxuc3myTbdf" style="width: 14%; text-align: right" title="Cost of revenues">3,613,788</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--CostOfRevenue_c20220101__20221231_zXZBWCNmV0Rg" style="width: 14%; text-align: right" title="Cost of revenues">53,121,676</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GrossProfit_c20220101__20221231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zjBX1PJ0mhXb" style="text-align: right" title="Gross profit">24,936,253</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GrossProfit_c20220101__20221231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zliMbePOJQJd" style="text-align: right" title="Gross profit">(3,613,788</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--GrossProfit_c20220101__20221231_z2r48bFJyCb2" style="text-align: right" title="Gross profit">21,322,465</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20221231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zkZ9D4pCHMJi" style="text-align: right" title="General and administrative">22,327,746</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20221231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zLRzsO9XSy7d" style="text-align: right" title="General and administrative">(3,613,788</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20221231_zvorsodM0l73" style="text-align: right" title="General and administrative">18,713,958</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended March 31, 2023</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--CostOfRevenue_c20230101__20230331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zHFe2z5x966h" style="width: 14%; text-align: right" title="Cost of revenues">9,816,397</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20230101__20230331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zmhT8h9WQqTb" style="width: 14%; text-align: right" title="Cost of revenues">1,044,540</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20230101__20230331_zfv0mNkMuIH6" style="width: 14%; text-align: right" title="Cost of revenues">10,860,937</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--GrossProfit_c20230101__20230331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zwYfRZsOMEue" style="text-align: right" title="Gross profit">3,642,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GrossProfit_c20230101__20230331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zc8oDqGbIHta" style="text-align: right" title="Gross profit">(1,044,540</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--GrossProfit_c20230101__20230331_za4NrTzQHJze" style="text-align: right" title="Gross profit">2,597,551</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--GeneralAndAdministrativeExpense_c20230101__20230331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zePYKZukchPk" style="text-align: right" title="General and administrative">5,570,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--GeneralAndAdministrativeExpense_c20230101__20230331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zZgIc5jlrzX7" style="text-align: right" title="General and administrative">(1,044,540</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GeneralAndAdministrativeExpense_c20230101__20230331_zq71qJOnTy69" style="text-align: right" title="General and administrative">4,525,751</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8AD_zd7yapBObMDb" style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p id="xdx_89F_ecustom--ScheduleOfEquityInterestInSubsidiariesTableTextBlock_zMAphPVptsL1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The condensed consolidated financial statements include the accounts of Snail, Inc. and the following subsidiaries:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zC7i0zwnpH2i" style="display: none">SCHEDULE OF SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 85%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Equity %</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Snail Games USA Inc.</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--SnailGamesUsaIncMember_z3bsH7QkJ2Bk" style="width: 16%; text-align: right" title="Equity interest owned by the company">100</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Snail Innovation Institute</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zThqU8Zf5IP3" style="text-align: right" title="Equity interest owned by the company">70</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Frostkeep Studios, Inc.</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--FrostkeepStudiosIncMember_zYrao1fzuYNg" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Eminence Corp</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--EminenceCorpMember_zEyJbPzSBNR9" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Wandering Wizard, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--WanderingWizardLlcMember_zjADwLJIz7bf" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Donkey Crew, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zqQ90WwAskul" style="text-align: right" title="Equity interest owned by the company">99</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interactive Films, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--InteractiveFilmsLlcMember_zD6LnfQGpdYj" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Project AWK Productions, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--ProjectWKProductionsLlcMember_zOsWA4lEmWCa" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BTBX.IO, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--BTBXioLlcMember_znmkldykYsCg" style="text-align: right" title="Equity interest owned by the company">70</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8A8_zFCJICTMNYOg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All intercompany accounts, transactions, and profits have been eliminated upon consolidation.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Use of Estimates</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Segment Reporting</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has <span id="xdx_900_eus-gaap--NumberOfOperatingSegments_dc_uInteger_c20230101__20230630_zrQS67Z0qJr7" title="Number of operating segments">one</span> 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 – <i>Revenue from Contracts with Customers</i>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Liquidity and Going Concern</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company incurred a net loss of $<span id="xdx_90F_eus-gaap--ProfitLoss_iN_pn5n6_di_c20230101__20230630_zCTslvivHDP8" title="Net loss">7.1</span> million and negative cash flows of $<span id="xdx_906_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect_iN_pn5n6_di_c20230101__20230630_zxwKNPn3jvlh" title="Net cash flows">15.2</span> million for the six months ended June 30, 2023. As of June 30, 2023, the Company had cash and cash equivalents of $<span id="xdx_90C_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pn5n6_c20230630_zvNX6xEapiWl" title="Cash and Cash Equivalents, at Carrying Value">3.0</span> million, restricted cash and cash equivalents of $<span id="xdx_902_eus-gaap--RestrictedCash_iI_pn5n6_c20230630_zU0N68q7YIzh" title="Restricted cash">1.1</span> million and current debt of $<span id="xdx_906_eus-gaap--DebtCurrent_iI_pn5n6_c20230630_zE2JXZmKWwVf" title="Current debt">9.0</span> million.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2023, the Company’s 2021 Revolving Loan (as defined below) and 2022 Short Term Note (as defined below) of $<span id="xdx_90A_ecustom--RevolvingLoanPayableCurrent_iI_pn5n6_c20230630_zxmc5nmUz2j9" title="Revolving loan">6.0</span> million and $<span id="xdx_908_eus-gaap--ShortTermBankLoansAndNotesPayable_iI_pn5n6_c20230630_zVifhXRQ8YC1" title="Term debt">2.9</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> 500000 500000 6251420 28748580 3000000 5.00 12000000.0 3000000.0 1000000.0 P12M <p id="xdx_893_eus-gaap--ScheduleOfComprehensiveIncomeLossTableTextBlock_zGUUgZjUQJF1" style="font: 10pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"><span id="xdx_8B6_zxFkPAgs2UR2" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">SCHEDULE OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended March 31, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--CostOfRevenue_c20220101__20220331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zbxyBUoF7UV4" style="width: 14%; text-align: right" title="Cost of revenues">14,889,017</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--CostOfRevenue_c20220101__20220331__srt--RestatementAxis__srt--RestatementAdjustmentMember_z7DX0xbJZP21" style="width: 14%; text-align: right" title="Cost of revenues">824,798</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--CostOfRevenue_c20220101__20220331_zKL4iKrfapb8" style="width: 14%; text-align: right" title="Cost of revenues">15,713,815</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--GrossProfit_c20220101__20220331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zfjNrhVgvjyc" style="text-align: right" title="Gross profit">13,165,574</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GrossProfit_c20220101__20220331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zGLnhk20nmX7" style="text-align: right" title="Gross profit">(824,798</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--GrossProfit_c20220101__20220331_zbTSSpb8dxIh" style="text-align: right" title="Gross profit">12,340,776</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zVLCY5yfjTic" style="text-align: right" title="General and administrative">5,620,010</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220331__srt--RestatementAxis__srt--RestatementAdjustmentMember_ztElWa6UpJCh" style="text-align: right" title="General and administrative">(824,798</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220331_zuNkako5tWhg" style="text-align: right" title="General and administrative">4,795,212</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended June 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--CostOfRevenue_c20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zrKkgdkusfK1" style="width: 14%; text-align: right" title="Cost of revenues">11,386,885</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--CostOfRevenue_c20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zzLuRerPcD4j" style="width: 14%; text-align: right" title="Cost of revenues">872,629</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--CostOfRevenue_c20220401__20220630_zQ58loRQqHH5" style="width: 14%; text-align: right" title="Cost of revenues">12,259,514</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GrossProfit_c20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zQS7mbpJrvnh" style="text-align: right" title="Gross profit">4,076,637</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--GrossProfit_c20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zsF3Q8j9bC98" style="text-align: right" title="Gross profit">(872,629</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--GrossProfit_c20220401__20220630_zXeU9rA8N6nd" style="text-align: right" title="Gross profit">3,204,008</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--GeneralAndAdministrativeExpense_c20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zFlTdNew6jNh" style="text-align: right" title="General and administrative">5,123,511</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--GeneralAndAdministrativeExpense_c20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zJbUR57rTdM" style="text-align: right" title="General and administrative">(872,629</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--GeneralAndAdministrativeExpense_c20220401__20220630_zOF6A4XbzuId" style="text-align: right" title="General and administrative">4,250,882</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the six months ended June 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--CostOfRevenue_c20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zMqsNx6q8bOb" style="width: 14%; text-align: right" title="Cost of revenues">26,275,902</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--CostOfRevenue_c20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_z1V8xVT1cNQc" style="width: 14%; text-align: right" title="Cost of revenues">1,697,427</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CostOfRevenue_c20220101__20220630_ziWLRjHh74B6" style="width: 14%; text-align: right" title="Cost of revenues">27,973,329</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--GrossProfit_c20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zuOULWX8cBzk" style="text-align: right" title="Gross profit">17,242,211</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GrossProfit_c20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zHi3S6xgg0th" style="text-align: right" title="Gross profit">(1,697,427</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--GrossProfit_c20220101__20220630_zmVWav7wTdwf" style="text-align: right" title="Gross profit">15,544,784</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_ze1yFMp1Dmyl" style="text-align: right" title="General and administrative">10,743,521</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zADoEjhT1Gxg" style="text-align: right" title="General and administrative">(1,697,427</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220630_zJLJbXxmI2rd" style="text-align: right" title="General and administrative">9,046,094</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended September 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--CostOfRevenue_c20220701__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zxkApF4z8ug7" style="width: 14%; text-align: right" title="Cost of revenues">11,468,961</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--CostOfRevenue_c20220701__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zDg13dl4v1G2" style="width: 14%; text-align: right" title="Cost of revenues">955,106</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20220701__20220930_z0TwBUY3MrG8" style="width: 14%; text-align: right" title="Cost of revenues">12,424,067</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--GrossProfit_c20220701__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zY7NGDTjYC6j" style="text-align: right" title="Gross profit">4,145,210</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--GrossProfit_c20220701__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zRenajUsIcJl" style="text-align: right" title="Gross profit">(955,106</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--GrossProfit_c20220701__20220930_z7r6n5oxrGvi" style="text-align: right" title="Gross profit">3,190,104</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--GeneralAndAdministrativeExpense_c20220701__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zxevR1WWWdxd" style="text-align: right" title="General and administrative">5,434,013</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--GeneralAndAdministrativeExpense_c20220701__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zSyeVKJnl7T8" style="text-align: right" title="General and administrative">(955,106</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GeneralAndAdministrativeExpense_c20220701__20220930_z3i0HDw5iuab" style="text-align: right" title="General and administrative">4,478,907</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the nine months ended September 30, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--CostOfRevenue_c20220101__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zq4Zxzd8kDr" style="width: 14%; text-align: right" title="Cost of revenues">37,744,863</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--CostOfRevenue_c20220101__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zNM4mVyaJ7Ud" style="width: 14%; text-align: right" title="Cost of revenues">2,652,533</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20220101__20220930_zPH2MXSGghw" style="width: 14%; text-align: right" title="Cost of revenues">40,397,396</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--GrossProfit_c20220101__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zg5pJNXCSgjl" style="text-align: right" title="Gross profit">21,387,421</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--GrossProfit_c20220101__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zmMpD3aZfo63" style="text-align: right" title="Gross profit">(2,652,533</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GrossProfit_c20220101__20220930_zcWZHT6htZ9b" style="text-align: right" title="Gross profit">18,734,888</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220930__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zkzXMAseqZ6g" style="text-align: right" title="General and administrative">16,177,534</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220930__srt--RestatementAxis__srt--RestatementAdjustmentMember_zUVjeHVB7qPd" style="text-align: right" title="General and administrative">(2,652,533</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20220930_zv1wMKdmIx29" style="text-align: right" title="General and administrative">13,525,001</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the twelve months ended December 31, 2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--CostOfRevenue_c20220101__20221231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zz4serCae6ya" style="width: 14%; text-align: right" title="Cost of revenues">49,507,888</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--CostOfRevenue_c20220101__20221231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zSxuc3myTbdf" style="width: 14%; text-align: right" title="Cost of revenues">3,613,788</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--CostOfRevenue_c20220101__20221231_zXZBWCNmV0Rg" style="width: 14%; text-align: right" title="Cost of revenues">53,121,676</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--GrossProfit_c20220101__20221231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zjBX1PJ0mhXb" style="text-align: right" title="Gross profit">24,936,253</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--GrossProfit_c20220101__20221231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zliMbePOJQJd" style="text-align: right" title="Gross profit">(3,613,788</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--GrossProfit_c20220101__20221231_z2r48bFJyCb2" style="text-align: right" title="Gross profit">21,322,465</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20221231__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zkZ9D4pCHMJi" style="text-align: right" title="General and administrative">22,327,746</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20221231__srt--RestatementAxis__srt--RestatementAdjustmentMember_zLRzsO9XSy7d" style="text-align: right" title="General and administrative">(3,613,788</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--GeneralAndAdministrativeExpense_c20220101__20221231_zvorsodM0l73" style="text-align: right" title="General and administrative">18,713,958</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 76%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">For the three months ended March 31, 2023</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As reported</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Adjustment</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">As adjusted</td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cost of revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--CostOfRevenue_c20230101__20230331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zHFe2z5x966h" style="width: 14%; text-align: right" title="Cost of revenues">9,816,397</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20230101__20230331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zmhT8h9WQqTb" style="width: 14%; text-align: right" title="Cost of revenues">1,044,540</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CostOfRevenue_c20230101__20230331_zfv0mNkMuIH6" style="width: 14%; text-align: right" title="Cost of revenues">10,860,937</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--GrossProfit_c20230101__20230331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zwYfRZsOMEue" style="text-align: right" title="Gross profit">3,642,091</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GrossProfit_c20230101__20230331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zc8oDqGbIHta" style="text-align: right" title="Gross profit">(1,044,540</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--GrossProfit_c20230101__20230331_za4NrTzQHJze" style="text-align: right" title="Gross profit">2,597,551</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--GeneralAndAdministrativeExpense_c20230101__20230331__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zePYKZukchPk" style="text-align: right" title="General and administrative">5,570,291</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--GeneralAndAdministrativeExpense_c20230101__20230331__srt--RestatementAxis__srt--RestatementAdjustmentMember_zZgIc5jlrzX7" style="text-align: right" title="General and administrative">(1,044,540</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--GeneralAndAdministrativeExpense_c20230101__20230331_zq71qJOnTy69" style="text-align: right" title="General and administrative">4,525,751</td><td style="text-align: left"> </td></tr> </table> 14889017 824798 15713815 13165574 -824798 12340776 5620010 -824798 4795212 11386885 872629 12259514 4076637 -872629 3204008 5123511 -872629 4250882 26275902 1697427 27973329 17242211 -1697427 15544784 10743521 -1697427 9046094 11468961 955106 12424067 4145210 -955106 3190104 5434013 -955106 4478907 37744863 2652533 40397396 21387421 -2652533 18734888 16177534 -2652533 13525001 49507888 3613788 53121676 24936253 -3613788 21322465 22327746 -3613788 18713958 9816397 1044540 10860937 3642091 -1044540 2597551 5570291 -1044540 4525751 <p id="xdx_89F_ecustom--ScheduleOfEquityInterestInSubsidiariesTableTextBlock_zMAphPVptsL1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The condensed consolidated financial statements include the accounts of Snail, Inc. and the following subsidiaries:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zC7i0zwnpH2i" style="display: none">SCHEDULE OF SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 85%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Equity %</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Snail Games USA Inc.</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--SnailGamesUsaIncMember_z3bsH7QkJ2Bk" style="width: 16%; text-align: right" title="Equity interest owned by the company">100</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Snail Innovation Institute</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zThqU8Zf5IP3" style="text-align: right" title="Equity interest owned by the company">70</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Frostkeep Studios, Inc.</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--FrostkeepStudiosIncMember_zYrao1fzuYNg" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Eminence Corp</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--EminenceCorpMember_zEyJbPzSBNR9" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Wandering Wizard, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--WanderingWizardLlcMember_zjADwLJIz7bf" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Donkey Crew, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zqQ90WwAskul" style="text-align: right" title="Equity interest owned by the company">99</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interactive Films, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--InteractiveFilmsLlcMember_zD6LnfQGpdYj" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Project AWK Productions, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--ProjectWKProductionsLlcMember_zOsWA4lEmWCa" style="text-align: right" title="Equity interest owned by the company">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BTBX.IO, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--BTBXioLlcMember_znmkldykYsCg" style="text-align: right" title="Equity interest owned by the company">70</td><td style="text-align: left">%</td></tr> </table> 1 0.70 1 1 1 0.99 1 1 0.70 1 -7100000 -15200000 3000000.0 1100000 9000000.0 6000000.0 2900000 <p id="xdx_80D_eus-gaap--SignificantAccountingPoliciesTextBlock_zrIXsZRha0Xk" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 2 – <span id="xdx_824_zx1GSWNBRDe5">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_84F_eus-gaap--RevenueRecognitionPolicyTextBlock_zJMrt6FpAFI1" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_868_zbUofFufW9Wl">Revenue Recognition</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognizes revenue using the following five steps as provided by Accounting Standards Codification (“ASC”) Topic 606 <i>Revenue from Contracts with Customers</i>: 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 <span id="xdx_907_ecustom--CustomerTerms_dtD_c20230101__20230630__srt--RangeAxis__srt--MinimumMember_zhakr47POlN" title="Typical customer terms">30</span> to <span id="xdx_907_ecustom--CustomerTerms_dtD_c20230101__20230630__srt--RangeAxis__srt--MaximumMember_zc7uHspdGz56" title="Typical customer terms">75</span> days terms.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_84A_ecustom--PrincipalVsAgentConsiderationPolicyTextBlock_zmdI5DIxGF5k" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_867_zkJkPr8tyE7k">Principal vs. Agent Consideration</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The underlying contract terms and conditions between the various parties to the transaction;</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Which party is primarily responsible for fulfilling the promise to provide the specified good or service; and</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Which party has discretion in establishing the price for the specified good or service.</span></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_844_ecustom--ContractBalancePolicyTextBlock_z4XWq2Ig0K6b" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_862_z57hzzv7ovRi">Contract Balance</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company records deferred revenue when cash payments are received or due in advance of its performance, even if amounts are refundable.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <i>ARK 1</i> availability on the platform perpetually, effective January 1, 2022 and to put <i>ARK 2</i> on the platform for three years upon release. The Company recognized $<span id="xdx_909_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn5n6_c20220101__20220630__srt--ProductOrServiceAxis__custom--ArkSurvivalEvolvedMember__us-gaap--TypeOfArrangementAxis__custom--LongTermTitleLicenseAgreementWithPlatformMember_z9dl4Bz4MxY6" title="Revenue recognized">2.5</span> million in revenue related to <i>ARK 1’s</i> perpetual license during the six months ended June 30, 2022 and deferred $<span id="xdx_908_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_pn5n6_c20220630__srt--ProductOrServiceAxis__custom--Ark2Member__us-gaap--TypeOfArrangementAxis__custom--LongTermTitleLicenseAgreementWithPlatformMember_zDRkQs8oDRl8" title="Deferred revenue, net of current portion">2.3</span> million related to <i>ARK 2</i> that is included in the long-term portion of deferred revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In November 2021, the Company entered an agreement with a platform to make <i>ARK 1</i> available on a platform for a period of 5 weeks in exchange for $<span id="xdx_907_eus-gaap--ProceedsFromCustomers_pn5n6_c20211101__20211130__srt--ProductOrServiceAxis__custom--ArkSurvivalEvolvedMember__us-gaap--TypeOfArrangementAxis__custom--AgreementWithPlatformMember_zMDopQIYgsv" title="Proceeds from agreement with customers">3.5</span> 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.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_84F_eus-gaap--RevenueRemainingPerformanceObligationProvisionForLossPolicyTextBlock_z6moKzzuIFUi" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zjwsNQO4LMU2">Estimated Service Period</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_849_ecustom--ShippingHandlingAndValueAddedTaxesPolicyTextBlock_zQyW4m4Bd0kc" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86A_zJ8xeEW3TuN6">Shipping, Handling and Value Added Taxes (“VAT”)</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i></i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_840_eus-gaap--CostOfSalesPolicyTextBlock_zRvVt2aCq51g" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zB90Al0aIyb9">Cost of Revenues</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p id="xdx_893_ecustom--CostOfGoodsAndServicesSoldTableTextBlock_zMksAWi3TXh7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BE_zQUqj3khnpt3" style="display: none">SCHEDULE OF COST OF REVENUES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20230401__20230630_zHMfGMLvPaol" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20220401__20220630_zr6j5wQJogYi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20230101__20230630_zbLEhrKKrSi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220101__20220630_zHASjKio2zC3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_ecustom--CostSoftwareLicenseRoyaltyFeesRelatedParties_maCOGASz5PP_z8Elmu4P0aw4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; padding-left: 1.5pt">Software license royalties - related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,906,786</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,364,849</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,769,799</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">9,886,027</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--CostSoftwareLicenseRoyaltyFees_maCOGASz5PP_zElsB7cHLvmf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">Software license royalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">254,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1160">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">606,839</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1162">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CostLicenseFeesAndAmortizationRelatedParties_maCOGASz5PP_zHUBlGnthok7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">License and amortization - related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,862,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,350,980</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,057,971</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,701,959</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CostLicenseFeesAndAmortization_maCOGASz5PP_zAs8ISmPS5ii" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">License and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">201</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,224</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">402</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">250,448</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--CostMerchantFees_maCOGASz5PP_zX2WZFeinHc6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">Merchant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">348,805</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">596,021</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">808,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,253,557</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostEngineFees_maCOGASz5PP_ztiLXX2ISyC6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">Engine fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">292,898</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">502,686</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">717,125</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,216,679</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--CostInternetExpense_maCOGASz5PP_zhp5mDbATv5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">Internet, server and data center</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,611,047</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,344,754</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,151,737</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,664,659</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DirectCommunicationsAndUtilitiesCosts_maCOGASz5PP_zP7O28dM2h77" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 1.5pt">Costs related to advertising revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">59,308</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1190">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">84,553</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1192">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CostOfGoodsAndServicesSold_iT_pp0p0_mtCOGASz5PP_zrz46rbnUK9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 1.5pt">Total:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,335,765</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,259,514</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">20,196,702</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,973,329</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AF_z8g5XMJytp1g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84A_eus-gaap--SellingGeneralAndAdministrativeExpensesPolicyTextBlock_z4CIQj1L7SLg" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zbqx22Hik3fa">General and Administrative Costs</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_90A_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20230401__20230630_z9SrNihJ5rwe" title="General and administrative expenses">3,937,234</span> and $<span id="xdx_901_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20220401__20220630_zDfO5XnKzjF4" title="General and administrative expenses">4,250,882</span>, respectively. For the six months ended June 30, 2023 and 2022, general and administrative expenses were $<span id="xdx_906_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20230101__20230630_z80B4fEWJl1g" title="General and administrative expenses">8,462,985</span> and $<span id="xdx_90C_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20220101__20220630_zumO8Vac3Xek" title="General and administrative expenses">9,046,094</span>, respectively. Stock-based compensation of $<span id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230401__20230630_zYy2Ec0J4lN8" title="Stock based compensation">216,706</span> and $<span id="xdx_903_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230101__20230630_zIETrwUvxFca" title="Stock based compensation">369,301</span> was incurred during the three and six months ended June 30, 2023, respectively; <span id="xdx_90F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220401__20220630_zN9LfRiVsHbk" title="Stock based compensation"><span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220101__20220630_zSr12w31JOyb" title="Stock based compensation">no</span></span> such compensation was incurred in the three and six months ended June 30, 2022.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_840_eus-gaap--AdvertisingCostsPolicyTextBlock_zcSglbBQAHzk" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86E_zgt5rxTF0jv1">Advertising and Marketing Costs</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company expenses advertising costs as incurred. For the three months ended June 30, 2023 and 2022, advertising expenses totaled $<span id="xdx_908_eus-gaap--AdvertisingExpense_pp0p0_c20230401__20230630_zFefLh8qEy59" title="Advertising expense">168,292</span> and $<span id="xdx_909_eus-gaap--AdvertisingExpense_pp0p0_c20220401__20220630_zTDcb0MTldXk" title="Advertising expense">212,039</span>, respectively. For the six months ended June 30, 2023 and 2022, advertising expenses were $<span id="xdx_90F_eus-gaap--AdvertisingExpense_pp0p0_c20230101__20230630_zTNVTCOP7hqk" title="Advertising expense">272,841</span> and $<span id="xdx_90D_eus-gaap--AdvertisingExpense_pp0p0_c20220101__20220630_zruibBuHAkv1" title="Advertising expense">370,710</span>, respectively.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_840_eus-gaap--ResearchAndDevelopmentExpensePolicy_zXfldOWfI6T1" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_866_zuV4rDtyguLi">Research and Development</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_906_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20230401__20230630_ziNnKXUi7F93" title="Research and development expense">1,200,842</span> and $<span id="xdx_904_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20220401__20220630_zM11RpNoSZ2" title="Research and development expense">179,050</span>, respectively. For the six months ended June 30, 2023 and 2022, research and development costs were $<span id="xdx_90E_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20230101__20230630_zufw8k4HazPl" title="Research and development expense">2,574,639</span> and $<span id="xdx_90A_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20220101__20220630_zwT8YDc6zd96" title="Research and development expense">363,006</span>, respectively. Stock-based compensation of $<span id="xdx_90E_ecustom--ShareBasedCompensationExpense_pp0p0_c20230401__20230630_zC8Uf991Fwga" title="Stock based compensation">16,064</span> was incurred during the three months ended June 30, 2023; <span id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220401__20220630_zyeGMA4yxjsi" title="Stock based compensation"><span id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220101__20220630_zgdIMrmS5Xz1" title="Stock based compensation">no</span></span> such compensation was incurred in the three and six months ended June 30, 2022.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_84B_ecustom--NonControllingInterestPolicyTextBlock_zQ0pC7f9yew5" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_864_zhuwoIFasr3f">Non-controlling Interests</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p id="xdx_89A_ecustom--ScheduleOfEquityInterestInSubsidiariesAndMinorityInterestTableTextBlock_zNMP2jfP5W5k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zveYv0ZHlVuc" style="display: none">SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity % Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Non-Controlling %</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Snail Innovative Institute</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_901_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zcEXgtoJPTs5" title="Equity interest owned by the company"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zX8j9MtQcZzk" title="Equity interest owned by the company">70</span></span></td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_znrcl1GZ6ya1" title="Non controlling interest held in a subsidiary"><span id="xdx_904_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_z2dJHll4ge4" title="Non controlling interest held in a subsidiary">30</span></span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">BTBX.IO, LLC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--BTBXioLlcMember_zJxld8RetFq6" title="Equity interest owned by the company"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--BTBXioLlcMember_z6mXBd1JEsu9" title="Equity interest owned by the company">70</span></span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--BTBXioLlcMember_zgsRAIOUOi6l" title="Non controlling interest held in a subsidiary"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--BTBXioLlcMember_zFz7YmFyGnI" title="Non controlling interest held in a subsidiary">30</span></span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Donkey Crew, LLC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zJ52gInsDPHg" title="Equity interest owned by the company"><span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zivBnEr7NPPk" title="Equity interest owned by the company">99</span></span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zFraLlp7d4z" title="Non controlling interest held in a subsidiary"><span id="xdx_908_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zxRG8kWdOyhk" title="Non controlling interest held in a subsidiary">1</span></span></td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8A0_zlQkthCVIzM1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_843_eus-gaap--CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy_zwRVFJpYN2Z4" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_866_zEamXOrB5LSi">Cash and Restricted Cash and Cash Equivalents</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84A_ecustom--RestrictedEscrowDepositsPolicyPolicyTextBlock_zMYHADqwY7Bj" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zFcnWXWoh29i">Restricted Escrow Deposits</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--TradeAndOtherAccountsReceivablePolicy_zIucyCYiUxKb" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_864_z8iwUA5kkoSc">Accounts Receivable</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_846_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zlcnt97AT4a6" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_867_zVzrewCwcDq1">Fair Value Measurements</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The three levels of inputs are as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">●<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level 1</b>: Quoted prices in active markets for identical assets or liabilities that the Company has an ability to access as of the measurement date.</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level 2</b>: 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.</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span>●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level 3</b>: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</span></td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90B_ecustom--DebtInstrumentInterestRateStatedPercentagePeriod_dtY_c20230101__20230630__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_z28X1jxKDX7i" title="Debt instrument, interest rate, stated percentage, period">5</span> years, then a floating rate that approximates the Wall Street Journal Prime Rate plus <span id="xdx_90D_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_dp_uPure_c20230101__20230630__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_z2itZwLOKEAi" title="Floating prime rate">0.50</span>%. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsIncludingIntangibleAssetsPolicyPolicyTextBlock_z7l1qEYPpYw7" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_861_z762IFF0SRA2">Amortizable Intangibles and Other Long-lived Assets</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--IncomeTaxPolicyTextBlock_zi4IqP7F4o0a" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_861_zmYZ0A7IsrCf">Income Taxes</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_909_ecustom--LiabilityForUncertaintyInIncomeTaxes_iI_pp0p0_c20230630_zaAlIFhpoXBf" title="Liabilities for uncertain tax positions"><span id="xdx_908_ecustom--LiabilityForUncertaintyInIncomeTaxes_iI_pp0p0_c20221231_zXfbBgAJ9qi4" title="Liabilities for uncertain tax positions">457,024</span></span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_848_eus-gaap--ConcentrationRiskCreditRisk_zP6tc83dWH3a" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_860_zxRbEqsZI994">Concentration of Credit Risk and Significant Customers</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_909_eus-gaap--CashUninsuredAmount_iI_pp0p0_c20230630_zJo4u5aOVK74" title="Deposits not insured by FDIC">3,333,946</span> and $<span id="xdx_90B_eus-gaap--CashUninsuredAmount_iI_pp0p0_c20221231_zyB7WO4zMKdb" title="Deposits not insured by FDIC">17,929,308</span>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zANFRzKAsajd" title="Concentration percentage">68</span>% and two customers who accounted for approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zd28TFIPIMng" title="Concentration percentage">57</span>% 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 <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_za406ZmmFkV" title="Concentration percentage">29</span>%, <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_zFlkdcSwYGt8" title="Concentration percentage">25</span>% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomerMember_zcPPx9SQGDi1" title="Concentration percentage">14</span>% as of June 30, 2023, and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_zTDBx5uUM345" title="Concentration percentage">29</span>% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_z4DcwJneesCl" title="Concentration percentage">28</span>% as of December 31, 2022 of the consolidated gross receivables outstanding. During the three months ended June 30, 2023 and 2022, approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20230401__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zh1fm6a0kQ5f" title="Concentration percentage">52</span>% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220401__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_z6Bm7TsluIr3" title="Concentration percentage">59</span>%, respectively, of net revenue was derived from these customers. During the six months ended June 30, 2023 and 2022, approximately <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zxJlC1WuzL09" title="Concentration percentage">56</span>% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zD0sUiCO6jgf" title="Concentration percentage">61</span>%, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2023 and December 31, 2022, the Company had three vendors who accounted for approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zRdjd17jFLp5" title="Concentration percentage">79</span>% and two vendors who accounted for approximately <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zT4OmTSmrNU7" title="Concentration percentage">55</span>% of consolidated gross payables, respectively. Among the three vendors as of June 30, 2023 and December 31, 2022, each vendor accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsOneMember_z4TYTbAuArcj" title="Concentration percentage">55</span>%, <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsTwoMember_zkptrO3HHnil" title="Concentration percentage">13</span>% and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsThreeMember_ziyTCdkDsYC9" title="Concentration percentage">11</span>% as of June 30, 2023, and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsOneMember_zRtY281t91ng" title="Concentration percentage">43</span>% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsTwoMember_zbOzQT37RDGe" title="Concentration percentage">12</span>% 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company had one vendor, SDE Inc. (“SDE”), a related party, that accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CombinedGrossCostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zSW6cn490Sad" title="Concentration percentage">44</span>% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CombinedGrossCostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zlkVlSqFMBua" title="Concentration percentage">44</span>% 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 <span><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoVendorsMember_zbPwvMhYWMD4" title="Concentration percentage">51</span></span>% and <span><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoVendorsMember_zrLYI0AiDCxh" title="Concentration percentage">49</span></span>% 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zfSU9DRvnM0e" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zaJ5Uu0W5aPe">Recently Issued Accounting Pronouncements</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2016, the FASB issued ASU 2016-13, <i>Financial Instruments – Credit Losses</i>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2020, the FASB issued ASU 2020-06, <i>Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity</i>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p id="xdx_841_eus-gaap--CompensationAndEmployeeBenefitPlansTextBlock_z7sxQIH1AEd1" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zc4kLf4cca7">Employee Savings Plans</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_90C_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20230401__20230630_zSKDVtFwMes3" title="Employer contributions to the plan">24,769</span> and $<span id="xdx_902_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20220401__20220630_zf2ZmDz8wTm9" title="Employer contributions to the plan">13,914</span> for the three months ended June 30, 2023 and 2022, and $<span id="xdx_902_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20230101__20230630_z3MNhtxryyVf" title="Employer contributions to the plan">51,388</span> and $<span id="xdx_906_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20220101__20220630_zJENEsRq9WI6" title="Employer contributions to the plan">27,096</span> for the six months ended June 30, 2023 and 2022, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zvGdtCUYQlv4" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zPhZQy8xn6wg">Stock-Based Compensation</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_908_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20230630__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_zcICUeQZnwV1" title="Number of shares available for issuance">5,718,000</span> 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) <span id="xdx_90B_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20230630__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_zUXwLBAPNZo8" title="Number of shares available for issuance">5,718,000</span> shares, (b) <span id="xdx_903_ecustom--ShareBasedCompensationAnnualIncreaseOfSharesReserveForIssuancePercentToOutstandingSharesOnFullyDilutedBasis_iI_dp_c20230630__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zZCXx79mDX9l" title="Annual increase in shares reserve for issuance (as a percent)">1</span>% 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 <span id="xdx_90C_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_zw2f3wIv1ai6" title="Number of shares available for issuance">4,517,419</span> shares reserved for issuance under the 2022 Plan.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_848_ecustom--RestrictedStockUnitsPolicyTextBlock_zkdrcDXSIaBl" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_862_ziBoCWuxbN3g">Restricted Stock Units</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_ecustom--WarrantsPolicyTextBlock_zptZGr88MJ47" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_865_zUzKu3x8Rcbc">Warrants</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zOoPfrsF9RF2" title="Number of warrants issued to purchase common stock">120,000</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--RepurchaseAgreementsCollateralPolicy_zHeriN5PHTKi" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zL2S2E3aj4If">Share Repurchase Program</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 10, 2022, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to $<span id="xdx_908_eus-gaap--StockRepurchaseProgramAuthorizedAmount1_iI_pn6n6_c20221110__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zjRvtkdSdLsj" title="Shares authorized to repurchase">5</span> 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. <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesTreasuryStockReissued_do_c20230101__20230630__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zdI9nxKm1rs5" title="Number of treasury stock sold">No</span> treasury stock was sold during the three and six months ended June 30, 2023. As of June 30, 2023, <span id="xdx_90F_eus-gaap--TreasuryStockSharesAcquired_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z0v0yWf51ee9" title="Number of shares repurchased">1,350,275</span> shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $<span id="xdx_90A_eus-gaap--TreasuryStockValueAcquiredCostMethod_pn5n6_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z8iwXcYvuzi" title="Aggregate purchase price of shares repurchased">3.7</span> million. The average price paid per share was $<span id="xdx_90A_eus-gaap--TreasuryStockAcquiredAverageCostPerShare_pid_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zql4w2KiqZ45" title="Average price paid per share for repurchase of shares">2.72</span> and approximately $<span id="xdx_90A_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zqeQjsXo37G3" title="Shares remain available for repurchase">1.3</span> million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_zokgJC8ayL47" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zZwnAlqcewWf">Earnings (Loss) Per Share</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 – <i>Earnings (Loss) Per Share.</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84D_eus-gaap--PolicyholdersDividendPolicy_zvlW7BRMxIE1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zfgkUdQIn8Q4">Dividend Restrictions</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our ability to pay cash dividends is currently restricted by the terms of our credit facilities.</span></p> <p id="xdx_857_zONVd42tTpRd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84F_eus-gaap--RevenueRecognitionPolicyTextBlock_zJMrt6FpAFI1" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_868_zbUofFufW9Wl">Revenue Recognition</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognizes revenue using the following five steps as provided by Accounting Standards Codification (“ASC”) Topic 606 <i>Revenue from Contracts with Customers</i>: 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 <span id="xdx_907_ecustom--CustomerTerms_dtD_c20230101__20230630__srt--RangeAxis__srt--MinimumMember_zhakr47POlN" title="Typical customer terms">30</span> to <span id="xdx_907_ecustom--CustomerTerms_dtD_c20230101__20230630__srt--RangeAxis__srt--MaximumMember_zc7uHspdGz56" title="Typical customer terms">75</span> days terms.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> P30D P75D <p id="xdx_84A_ecustom--PrincipalVsAgentConsiderationPolicyTextBlock_zmdI5DIxGF5k" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_867_zkJkPr8tyE7k">Principal vs. Agent Consideration</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The underlying contract terms and conditions between the various parties to the transaction;</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Which party is primarily responsible for fulfilling the promise to provide the specified good or service; and</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">●</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Which party has discretion in establishing the price for the specified good or service.</span></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_844_ecustom--ContractBalancePolicyTextBlock_z4XWq2Ig0K6b" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_862_z57hzzv7ovRi">Contract Balance</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company records deferred revenue when cash payments are received or due in advance of its performance, even if amounts are refundable.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <i>ARK 1</i> availability on the platform perpetually, effective January 1, 2022 and to put <i>ARK 2</i> on the platform for three years upon release. The Company recognized $<span id="xdx_909_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn5n6_c20220101__20220630__srt--ProductOrServiceAxis__custom--ArkSurvivalEvolvedMember__us-gaap--TypeOfArrangementAxis__custom--LongTermTitleLicenseAgreementWithPlatformMember_z9dl4Bz4MxY6" title="Revenue recognized">2.5</span> million in revenue related to <i>ARK 1’s</i> perpetual license during the six months ended June 30, 2022 and deferred $<span id="xdx_908_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_pn5n6_c20220630__srt--ProductOrServiceAxis__custom--Ark2Member__us-gaap--TypeOfArrangementAxis__custom--LongTermTitleLicenseAgreementWithPlatformMember_zDRkQs8oDRl8" title="Deferred revenue, net of current portion">2.3</span> million related to <i>ARK 2</i> that is included in the long-term portion of deferred revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In November 2021, the Company entered an agreement with a platform to make <i>ARK 1</i> available on a platform for a period of 5 weeks in exchange for $<span id="xdx_907_eus-gaap--ProceedsFromCustomers_pn5n6_c20211101__20211130__srt--ProductOrServiceAxis__custom--ArkSurvivalEvolvedMember__us-gaap--TypeOfArrangementAxis__custom--AgreementWithPlatformMember_zMDopQIYgsv" title="Proceeds from agreement with customers">3.5</span> 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.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> 2500000 2300000 3500000 <p id="xdx_84F_eus-gaap--RevenueRemainingPerformanceObligationProvisionForLossPolicyTextBlock_z6moKzzuIFUi" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zjwsNQO4LMU2">Estimated Service Period</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_849_ecustom--ShippingHandlingAndValueAddedTaxesPolicyTextBlock_zQyW4m4Bd0kc" style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86A_zJ8xeEW3TuN6">Shipping, Handling and Value Added Taxes (“VAT”)</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i></i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p id="xdx_840_eus-gaap--CostOfSalesPolicyTextBlock_zRvVt2aCq51g" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zB90Al0aIyb9">Cost of Revenues</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p id="xdx_893_ecustom--CostOfGoodsAndServicesSoldTableTextBlock_zMksAWi3TXh7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BE_zQUqj3khnpt3" style="display: none">SCHEDULE OF COST OF REVENUES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20230401__20230630_zHMfGMLvPaol" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20220401__20220630_zr6j5wQJogYi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20230101__20230630_zbLEhrKKrSi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220101__20220630_zHASjKio2zC3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_ecustom--CostSoftwareLicenseRoyaltyFeesRelatedParties_maCOGASz5PP_z8Elmu4P0aw4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; padding-left: 1.5pt">Software license royalties - related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,906,786</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,364,849</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,769,799</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">9,886,027</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--CostSoftwareLicenseRoyaltyFees_maCOGASz5PP_zElsB7cHLvmf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">Software license royalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">254,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1160">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">606,839</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1162">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CostLicenseFeesAndAmortizationRelatedParties_maCOGASz5PP_zHUBlGnthok7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">License and amortization - related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,862,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,350,980</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,057,971</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,701,959</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CostLicenseFeesAndAmortization_maCOGASz5PP_zAs8ISmPS5ii" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">License and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">201</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,224</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">402</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">250,448</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--CostMerchantFees_maCOGASz5PP_zX2WZFeinHc6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">Merchant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">348,805</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">596,021</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">808,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,253,557</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostEngineFees_maCOGASz5PP_ztiLXX2ISyC6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">Engine fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">292,898</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">502,686</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">717,125</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,216,679</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--CostInternetExpense_maCOGASz5PP_zhp5mDbATv5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">Internet, server and data center</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,611,047</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,344,754</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,151,737</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,664,659</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DirectCommunicationsAndUtilitiesCosts_maCOGASz5PP_zP7O28dM2h77" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 1.5pt">Costs related to advertising revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">59,308</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1190">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">84,553</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1192">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CostOfGoodsAndServicesSold_iT_pp0p0_mtCOGASz5PP_zrz46rbnUK9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 1.5pt">Total:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,335,765</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,259,514</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">20,196,702</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,973,329</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AF_z8g5XMJytp1g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_893_ecustom--CostOfGoodsAndServicesSoldTableTextBlock_zMksAWi3TXh7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BE_zQUqj3khnpt3" style="display: none">SCHEDULE OF COST OF REVENUES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20230401__20230630_zHMfGMLvPaol" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20220401__20220630_zr6j5wQJogYi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20230101__20230630_zbLEhrKKrSi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20220101__20220630_zHASjKio2zC3" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_ecustom--CostSoftwareLicenseRoyaltyFeesRelatedParties_maCOGASz5PP_z8Elmu4P0aw4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; padding-left: 1.5pt">Software license royalties - related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,906,786</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,364,849</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">4,769,799</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">9,886,027</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--CostSoftwareLicenseRoyaltyFees_maCOGASz5PP_zElsB7cHLvmf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">Software license royalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">254,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1160">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">606,839</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1162">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CostLicenseFeesAndAmortizationRelatedParties_maCOGASz5PP_zHUBlGnthok7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">License and amortization - related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,862,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,350,980</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,057,971</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,701,959</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CostLicenseFeesAndAmortization_maCOGASz5PP_zAs8ISmPS5ii" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">License and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">201</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,224</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">402</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">250,448</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--CostMerchantFees_maCOGASz5PP_zX2WZFeinHc6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">Merchant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">348,805</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">596,021</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">808,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,253,557</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostEngineFees_maCOGASz5PP_ztiLXX2ISyC6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 1.5pt">Engine fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">292,898</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">502,686</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">717,125</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,216,679</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--CostInternetExpense_maCOGASz5PP_zhp5mDbATv5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 1.5pt">Internet, server and data center</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,611,047</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,344,754</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,151,737</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,664,659</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DirectCommunicationsAndUtilitiesCosts_maCOGASz5PP_zP7O28dM2h77" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 1.5pt">Costs related to advertising revenue</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">59,308</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1190">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">84,553</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1192">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CostOfGoodsAndServicesSold_iT_pp0p0_mtCOGASz5PP_zrz46rbnUK9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 1.5pt">Total:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,335,765</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,259,514</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">20,196,702</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,973,329</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1906786 3364849 4769799 9886027 254400 606839 4862320 6350980 10057971 12701959 201 100224 402 250448 348805 596021 808276 1253557 292898 502686 717125 1216679 1611047 1344754 3151737 2664659 59308 84553 9335765 12259514 20196702 27973329 <p id="xdx_84A_eus-gaap--SellingGeneralAndAdministrativeExpensesPolicyTextBlock_z4CIQj1L7SLg" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zbqx22Hik3fa">General and Administrative Costs</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_90A_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20230401__20230630_z9SrNihJ5rwe" title="General and administrative expenses">3,937,234</span> and $<span id="xdx_901_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20220401__20220630_zDfO5XnKzjF4" title="General and administrative expenses">4,250,882</span>, respectively. For the six months ended June 30, 2023 and 2022, general and administrative expenses were $<span id="xdx_906_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20230101__20230630_z80B4fEWJl1g" title="General and administrative expenses">8,462,985</span> and $<span id="xdx_90C_eus-gaap--GeneralAndAdministrativeExpense_pp0p0_c20220101__20220630_zumO8Vac3Xek" title="General and administrative expenses">9,046,094</span>, respectively. Stock-based compensation of $<span id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230401__20230630_zYy2Ec0J4lN8" title="Stock based compensation">216,706</span> and $<span id="xdx_903_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230101__20230630_zIETrwUvxFca" title="Stock based compensation">369,301</span> was incurred during the three and six months ended June 30, 2023, respectively; <span id="xdx_90F_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220401__20220630_zN9LfRiVsHbk" title="Stock based compensation"><span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220101__20220630_zSr12w31JOyb" title="Stock based compensation">no</span></span> such compensation was incurred in the three and six months ended June 30, 2022.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> 3937234 4250882 8462985 9046094 216706 369301 0 0 <p id="xdx_840_eus-gaap--AdvertisingCostsPolicyTextBlock_zcSglbBQAHzk" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86E_zgt5rxTF0jv1">Advertising and Marketing Costs</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company expenses advertising costs as incurred. For the three months ended June 30, 2023 and 2022, advertising expenses totaled $<span id="xdx_908_eus-gaap--AdvertisingExpense_pp0p0_c20230401__20230630_zFefLh8qEy59" title="Advertising expense">168,292</span> and $<span id="xdx_909_eus-gaap--AdvertisingExpense_pp0p0_c20220401__20220630_zTDcb0MTldXk" title="Advertising expense">212,039</span>, respectively. For the six months ended June 30, 2023 and 2022, advertising expenses were $<span id="xdx_90F_eus-gaap--AdvertisingExpense_pp0p0_c20230101__20230630_zTNVTCOP7hqk" title="Advertising expense">272,841</span> and $<span id="xdx_90D_eus-gaap--AdvertisingExpense_pp0p0_c20220101__20220630_zruibBuHAkv1" title="Advertising expense">370,710</span>, respectively.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> 168292 212039 272841 370710 <p id="xdx_840_eus-gaap--ResearchAndDevelopmentExpensePolicy_zXfldOWfI6T1" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_866_zuV4rDtyguLi">Research and Development</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_906_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20230401__20230630_ziNnKXUi7F93" title="Research and development expense">1,200,842</span> and $<span id="xdx_904_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20220401__20220630_zM11RpNoSZ2" title="Research and development expense">179,050</span>, respectively. For the six months ended June 30, 2023 and 2022, research and development costs were $<span id="xdx_90E_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20230101__20230630_zufw8k4HazPl" title="Research and development expense">2,574,639</span> and $<span id="xdx_90A_eus-gaap--ResearchAndDevelopmentExpense_pp0p0_c20220101__20220630_zwT8YDc6zd96" title="Research and development expense">363,006</span>, respectively. Stock-based compensation of $<span id="xdx_90E_ecustom--ShareBasedCompensationExpense_pp0p0_c20230401__20230630_zC8Uf991Fwga" title="Stock based compensation">16,064</span> was incurred during the three months ended June 30, 2023; <span id="xdx_90E_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220401__20220630_zyeGMA4yxjsi" title="Stock based compensation"><span id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_do_c20220101__20220630_zgdIMrmS5Xz1" title="Stock based compensation">no</span></span> such compensation was incurred in the three and six months ended June 30, 2022.</span></p> <p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> 1200842 179050 2574639 363006 16064 0 0 <p id="xdx_84B_ecustom--NonControllingInterestPolicyTextBlock_zQ0pC7f9yew5" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_864_zhuwoIFasr3f">Non-controlling Interests</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p id="xdx_89A_ecustom--ScheduleOfEquityInterestInSubsidiariesAndMinorityInterestTableTextBlock_zNMP2jfP5W5k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zveYv0ZHlVuc" style="display: none">SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity % Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Non-Controlling %</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Snail Innovative Institute</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_901_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zcEXgtoJPTs5" title="Equity interest owned by the company"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zX8j9MtQcZzk" title="Equity interest owned by the company">70</span></span></td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_znrcl1GZ6ya1" title="Non controlling interest held in a subsidiary"><span id="xdx_904_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_z2dJHll4ge4" title="Non controlling interest held in a subsidiary">30</span></span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">BTBX.IO, LLC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--BTBXioLlcMember_zJxld8RetFq6" title="Equity interest owned by the company"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--BTBXioLlcMember_z6mXBd1JEsu9" title="Equity interest owned by the company">70</span></span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--BTBXioLlcMember_zgsRAIOUOi6l" title="Non controlling interest held in a subsidiary"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--BTBXioLlcMember_zFz7YmFyGnI" title="Non controlling interest held in a subsidiary">30</span></span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Donkey Crew, LLC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zJ52gInsDPHg" title="Equity interest owned by the company"><span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zivBnEr7NPPk" title="Equity interest owned by the company">99</span></span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zFraLlp7d4z" title="Non controlling interest held in a subsidiary"><span id="xdx_908_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zxRG8kWdOyhk" title="Non controlling interest held in a subsidiary">1</span></span></td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8A0_zlQkthCVIzM1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89A_ecustom--ScheduleOfEquityInterestInSubsidiariesAndMinorityInterestTableTextBlock_zNMP2jfP5W5k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zveYv0ZHlVuc" style="display: none">SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity % Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Non-Controlling %</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Snail Innovative Institute</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_901_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zcEXgtoJPTs5" title="Equity interest owned by the company"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zX8j9MtQcZzk" title="Equity interest owned by the company">70</span></span></td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_znrcl1GZ6ya1" title="Non controlling interest held in a subsidiary"><span id="xdx_904_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_z2dJHll4ge4" title="Non controlling interest held in a subsidiary">30</span></span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">BTBX.IO, LLC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--BTBXioLlcMember_zJxld8RetFq6" title="Equity interest owned by the company"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--BTBXioLlcMember_z6mXBd1JEsu9" title="Equity interest owned by the company">70</span></span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--BTBXioLlcMember_zgsRAIOUOi6l" title="Non controlling interest held in a subsidiary"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--BTBXioLlcMember_zFz7YmFyGnI" title="Non controlling interest held in a subsidiary">30</span></span></td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Donkey Crew, LLC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230630__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zJ52gInsDPHg" title="Equity interest owned by the company"><span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20221231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zivBnEr7NPPk" title="Equity interest owned by the company">99</span></span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20230630__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zFraLlp7d4z" title="Non controlling interest held in a subsidiary"><span id="xdx_908_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_c20221231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zxRG8kWdOyhk" title="Non controlling interest held in a subsidiary">1</span></span></td><td style="text-align: left">%</td></tr> </table> 0.70 0.70 0.30 0.30 0.70 0.70 0.30 0.30 0.99 0.99 0.01 0.01 <p id="xdx_843_eus-gaap--CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy_zwRVFJpYN2Z4" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_866_zEamXOrB5LSi">Cash and Restricted Cash and Cash Equivalents</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84A_ecustom--RestrictedEscrowDepositsPolicyPolicyTextBlock_zMYHADqwY7Bj" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zFcnWXWoh29i">Restricted Escrow Deposits</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--TradeAndOtherAccountsReceivablePolicy_zIucyCYiUxKb" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_864_z8iwUA5kkoSc">Accounts Receivable</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_846_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zlcnt97AT4a6" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_867_zVzrewCwcDq1">Fair Value Measurements</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The three levels of inputs are as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">●<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level 1</b>: Quoted prices in active markets for identical assets or liabilities that the Company has an ability to access as of the measurement date.</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level 2</b>: 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.</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span>●</td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Level 3</b>: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</span></td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90B_ecustom--DebtInstrumentInterestRateStatedPercentagePeriod_dtY_c20230101__20230630__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_z28X1jxKDX7i" title="Debt instrument, interest rate, stated percentage, period">5</span> years, then a floating rate that approximates the Wall Street Journal Prime Rate plus <span id="xdx_90D_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_dp_uPure_c20230101__20230630__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_z2itZwLOKEAi" title="Floating prime rate">0.50</span>%. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> P5Y 0.0050 <p id="xdx_841_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsIncludingIntangibleAssetsPolicyPolicyTextBlock_z7l1qEYPpYw7" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_861_z762IFF0SRA2">Amortizable Intangibles and Other Long-lived Assets</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--IncomeTaxPolicyTextBlock_zi4IqP7F4o0a" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_861_zmYZ0A7IsrCf">Income Taxes</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_909_ecustom--LiabilityForUncertaintyInIncomeTaxes_iI_pp0p0_c20230630_zaAlIFhpoXBf" title="Liabilities for uncertain tax positions"><span id="xdx_908_ecustom--LiabilityForUncertaintyInIncomeTaxes_iI_pp0p0_c20221231_zXfbBgAJ9qi4" title="Liabilities for uncertain tax positions">457,024</span></span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 457024 457024 <p id="xdx_848_eus-gaap--ConcentrationRiskCreditRisk_zP6tc83dWH3a" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_860_zxRbEqsZI994">Concentration of Credit Risk and Significant Customers</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_909_eus-gaap--CashUninsuredAmount_iI_pp0p0_c20230630_zJo4u5aOVK74" title="Deposits not insured by FDIC">3,333,946</span> and $<span id="xdx_90B_eus-gaap--CashUninsuredAmount_iI_pp0p0_c20221231_zyB7WO4zMKdb" title="Deposits not insured by FDIC">17,929,308</span>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zANFRzKAsajd" title="Concentration percentage">68</span>% and two customers who accounted for approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zd28TFIPIMng" title="Concentration percentage">57</span>% 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 <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_za406ZmmFkV" title="Concentration percentage">29</span>%, <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_zFlkdcSwYGt8" title="Concentration percentage">25</span>% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomerMember_zcPPx9SQGDi1" title="Concentration percentage">14</span>% as of June 30, 2023, and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_zTDBx5uUM345" title="Concentration percentage">29</span>% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_z4DcwJneesCl" title="Concentration percentage">28</span>% as of December 31, 2022 of the consolidated gross receivables outstanding. During the three months ended June 30, 2023 and 2022, approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20230401__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zh1fm6a0kQ5f" title="Concentration percentage">52</span>% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220401__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_z6Bm7TsluIr3" title="Concentration percentage">59</span>%, respectively, of net revenue was derived from these customers. During the six months ended June 30, 2023 and 2022, approximately <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zxJlC1WuzL09" title="Concentration percentage">56</span>% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zD0sUiCO6jgf" title="Concentration percentage">61</span>%, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2023 and December 31, 2022, the Company had three vendors who accounted for approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zRdjd17jFLp5" title="Concentration percentage">79</span>% and two vendors who accounted for approximately <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zT4OmTSmrNU7" title="Concentration percentage">55</span>% of consolidated gross payables, respectively. Among the three vendors as of June 30, 2023 and December 31, 2022, each vendor accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsOneMember_z4TYTbAuArcj" title="Concentration percentage">55</span>%, <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsTwoMember_zkptrO3HHnil" title="Concentration percentage">13</span>% and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsThreeMember_ziyTCdkDsYC9" title="Concentration percentage">11</span>% as of June 30, 2023, and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsOneMember_zRtY281t91ng" title="Concentration percentage">43</span>% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20221231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsTwoMember_zbOzQT37RDGe" title="Concentration percentage">12</span>% 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company had one vendor, SDE Inc. (“SDE”), a related party, that accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CombinedGrossCostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zSW6cn490Sad" title="Concentration percentage">44</span>% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CombinedGrossCostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--MajorVendorsMember_zlkVlSqFMBua" title="Concentration percentage">44</span>% 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 <span><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoVendorsMember_zbPwvMhYWMD4" title="Concentration percentage">51</span></span>% and <span><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoVendorsMember_zrLYI0AiDCxh" title="Concentration percentage">49</span></span>% 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 3333946 17929308 0.68 0.57 0.29 0.25 0.14 0.29 0.28 0.52 0.59 0.56 0.61 0.79 0.55 0.55 0.13 0.11 0.43 0.12 0.44 0.44 0.51 0.49 <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zfSU9DRvnM0e" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zaJ5Uu0W5aPe">Recently Issued Accounting Pronouncements</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2016, the FASB issued ASU 2016-13, <i>Financial Instruments – Credit Losses</i>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2020, the FASB issued ASU 2020-06, <i>Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity</i>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p id="xdx_841_eus-gaap--CompensationAndEmployeeBenefitPlansTextBlock_z7sxQIH1AEd1" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zc4kLf4cca7">Employee Savings Plans</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_90C_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20230401__20230630_zSKDVtFwMes3" title="Employer contributions to the plan">24,769</span> and $<span id="xdx_902_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20220401__20220630_zf2ZmDz8wTm9" title="Employer contributions to the plan">13,914</span> for the three months ended June 30, 2023 and 2022, and $<span id="xdx_902_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20230101__20230630_z3MNhtxryyVf" title="Employer contributions to the plan">51,388</span> and $<span id="xdx_906_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pp0p0_c20220101__20220630_zJENEsRq9WI6" title="Employer contributions to the plan">27,096</span> for the six months ended June 30, 2023 and 2022, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 24769 13914 51388 27096 <p id="xdx_841_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zvGdtCUYQlv4" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zPhZQy8xn6wg">Stock-Based Compensation</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_908_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20230630__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_zcICUeQZnwV1" title="Number of shares available for issuance">5,718,000</span> 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) <span id="xdx_90B_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20230630__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_zUXwLBAPNZo8" title="Number of shares available for issuance">5,718,000</span> shares, (b) <span id="xdx_903_ecustom--ShareBasedCompensationAnnualIncreaseOfSharesReserveForIssuancePercentToOutstandingSharesOnFullyDilutedBasis_iI_dp_c20230630__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zZCXx79mDX9l" title="Annual increase in shares reserve for issuance (as a percent)">1</span>% 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 <span id="xdx_90C_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_zw2f3wIv1ai6" title="Number of shares available for issuance">4,517,419</span> shares reserved for issuance under the 2022 Plan.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 5718000 5718000 0.01 4517419 <p id="xdx_848_ecustom--RestrictedStockUnitsPolicyTextBlock_zkdrcDXSIaBl" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_862_ziBoCWuxbN3g">Restricted Stock Units</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_ecustom--WarrantsPolicyTextBlock_zptZGr88MJ47" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_865_zUzKu3x8Rcbc">Warrants</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zOoPfrsF9RF2" title="Number of warrants issued to purchase common stock">120,000</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 120000 <p id="xdx_84B_eus-gaap--RepurchaseAgreementsCollateralPolicy_zHeriN5PHTKi" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zL2S2E3aj4If">Share Repurchase Program</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 10, 2022, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to $<span id="xdx_908_eus-gaap--StockRepurchaseProgramAuthorizedAmount1_iI_pn6n6_c20221110__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zjRvtkdSdLsj" title="Shares authorized to repurchase">5</span> 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. <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesTreasuryStockReissued_do_c20230101__20230630__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zdI9nxKm1rs5" title="Number of treasury stock sold">No</span> treasury stock was sold during the three and six months ended June 30, 2023. As of June 30, 2023, <span id="xdx_90F_eus-gaap--TreasuryStockSharesAcquired_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z0v0yWf51ee9" title="Number of shares repurchased">1,350,275</span> shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $<span id="xdx_90A_eus-gaap--TreasuryStockValueAcquiredCostMethod_pn5n6_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z8iwXcYvuzi" title="Aggregate purchase price of shares repurchased">3.7</span> million. The average price paid per share was $<span id="xdx_90A_eus-gaap--TreasuryStockAcquiredAverageCostPerShare_pid_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zql4w2KiqZ45" title="Average price paid per share for repurchase of shares">2.72</span> and approximately $<span id="xdx_90A_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zqeQjsXo37G3" title="Shares remain available for repurchase">1.3</span> million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> 5000000 0 1350275 3700000 2.72 1300000 <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_zokgJC8ayL47" style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zZwnAlqcewWf">Earnings (Loss) Per Share</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 – <i>Earnings (Loss) Per Share.</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84D_eus-gaap--PolicyholdersDividendPolicy_zvlW7BRMxIE1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zfgkUdQIn8Q4">Dividend Restrictions</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our ability to pay cash dividends is currently restricted by the terms of our credit facilities.</span></p> <p id="xdx_800_eus-gaap--RevenueFromContractWithCustomerTextBlock_z3wCXGAzv94h" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 3 – <span id="xdx_82C_z7ypXzeaP2Gi">REVENUE FROM CONTRACTS WITH CUSTOMERS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Disaggregation of revenue</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Geography</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_891_eus-gaap--DisaggregationOfRevenueTableTextBlock_zFVerN5V5t4g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zZlVH065R7Id" style="display: none">SCHEDULE OF DISAGGREGATION OF REVENUE</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230401__20230630_zxJSrqEcZxu" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20220401__20220630_znRRcgR7WxYl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20230630_zai4K5rLOZij" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220630_zTiz7lxoUXVd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__country--US_znjs6XHiqLbl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">8,363,756</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">13,971,832</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">20,141,630</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">40,258,628</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_zgOihKhLb7s8" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">International</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,528,497</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,491,690</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,209,111</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,259,485</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zWhCV1sVgbfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenue from contracts with customers:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,892,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,463,522</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,350,741</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,518,113</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i></i></span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Platform</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net revenue by platform for the three and six months ended June 30, 2023 and 2022 were as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230401__20230630_zfzPVdOoAYK7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20220401__20220630_zevDEO7G4Rol" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20230630_zYX8nBV6zLWk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220630_zVXlBrUGirDj" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ConsoleMember_zdfinQhlvBw" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Console</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">3,626,475</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">5,415,772</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">9,400,065</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">23,407,351</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PcMember_z3eaje6Aaexg" style="vertical-align: bottom; background-color: White"> <td>PC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,367,369</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,943,036</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,379,549</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,627,472</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--MobileMember_zcSf5SrZuDmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Mobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,508,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,393,878</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,226,235</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,185,198</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--ManufacturedProductOtherMember_zwMeh00c33b7" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,390,206</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">710,836</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,344,892</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,298,092</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zWQevzo2RHzh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenue from contracts with customers:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,892,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,463,522</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,350,741</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,518,113</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i></i></span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Distribution channel</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230401__20230630_zO9HHv2Id69l" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20220401__20220630_zgR3xYEr0QMh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20230630_zj3l1QyThw11" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220630_zemIrUidU4r" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerDigitalOnlineServiceMember_zXoMqbGSaGLf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Digital</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,993,844</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">12,358,808</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">17,779,614</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">37,034,823</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerMobileSaleMember_z64NaU16CyYe" style="vertical-align: bottom; background-color: White"> <td>Mobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,508,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,393,878</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,226,235</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,185,198</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__us-gaap--SalesChannelThroughIntermediaryMember_z7ugctG3VqT5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Physical retail and other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,390,206</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">710,836</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,344,892</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,298,092</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zHg6AxIPcwp" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenue from contracts with customers:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,892,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,463,522</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,350,741</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,518,113</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A6_z5X8Hm4AtbVc" style="margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Deferred Revenue</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">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 $<span id="xdx_906_eus-gaap--ContractWithCustomerLiability_iI_c20230630_zVnIUbk845ri" title="Deferred revenue">8,785,848</span>, of which $<span id="xdx_901_ecustom--RevenueRemainingPerformanceObligationAmountNonRefundable_iI_pn5n6_c20230630_zxdJrztKl5Jk" title="Deferred revenue due">2.6</span> million is due to non-refundable payments. The Company is expecting to recognize $<span id="xdx_909_eus-gaap--ContractWithCustomerLiability_iI_pn5n6_c20230630__srt--ProductOrServiceAxis__custom--DLCMember_z85s3KBgEmW6" title="Deferred revenue">0.3</span> million of the $<span id="xdx_905_ecustom--RevenueRemainingPerformanceObligationAmountNonRefundable_iI_pn5n6_c20230630__srt--ProductOrServiceAxis__custom--DLCMember_zwHwUUYhbE4k" title="Deferred revenue due">2.6</span> million in the next <span id="xdx_90B_ecustom--RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod_iI_dtM_c20230630__srt--ProductOrServiceAxis__custom--DLCMember_zdnAqZ1Uicvb" title="Deferred expected term">12</span> months through the platform releases of certain DLCs and the remaining $<span id="xdx_902_eus-gaap--ContractWithCustomerLiability_iI_pn5n6_c20230630__srt--ProductOrServiceAxis__custom--Ark2Member_zcKIxSgn9bJ7" title="Revenue, remaining amount">2.3</span> million in the next <span id="xdx_909_ecustom--RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod_iI_dtM_c20230630__srt--ProductOrServiceAxis__custom--Ark2Member_zNDAqjv5W2a7" title="Deferred expected period">24</span> months through the release of <i>ARK 2</i>. The Company expects to recognize $<span id="xdx_90E_eus-gaap--DeferredIncomeCurrent_iI_pn5n6_c20230630_zG4mAeHvM9o7" title="Contract with customer liability">4.1</span> million of current deferred revenues and $<span id="xdx_90C_eus-gaap--DeferredIncomeNoncurrent_iI_pn5n6_c20230630__srt--StatementScenarioAxis__custom--NextTwelveToSixtyMonthsMember_zFTThk7qUBDi" title="Long term deferred revenue">4.7</span> million of long term deferred revenue as revenue over the next <span id="xdx_90D_ecustom--RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod_iI_dtM_c20230630__srt--StatementGeographicalAxis__country--US_z0PMKdMcDJ3j" title="Deferred expected term">12</span> to <span id="xdx_90C_ecustom--RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod_iI_dtM_c20230630__srt--RangeAxis__srt--MaximumMember_z1tsIUCMBei2" title="Deferred expected term">60</span> 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:</span></p> <p id="xdx_89E_ecustom--ScheduleOfDeferredRevenueTableTextBlock_zT4NdA1does4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span id="xdx_8B1_zMKlVGYxshi7" style="display: none">SCHEDULE OF DEFERRED REVENUE</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Deferred revenue, beginning balance in advance of revenue recognition billing</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractWithCustomerLiability_iS_c20230101__20230630_zDpWW3xM1D7g" style="width: 14%; color: Black; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">9,551,446</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td id="xdx_988_eus-gaap--ContractWithCustomerLiability_iS_c20220101__20220630_zqurHegBsrWc" style="width: 14%; color: Black; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">20,280,934</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Revenue recognized</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_984_ecustom--TotalRevenueRecognizedFromBothBeginningBalanceAndCurrentPeriodIncreaseInContractLiability_c20230101__20230630_za8LJqluPlMc" style="color: Black; text-align: right" title="Revenue recognized">(3,874,784</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_981_ecustom--TotalRevenueRecognizedFromBothBeginningBalanceAndCurrentPeriodIncreaseInContractLiability_c20220101__20220630_zH9lnpLCA0Sf" style="color: Black; text-align: right" title="Revenue recognized">(18,832,396</td><td style="color: Black; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Revenue deferred</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_986_ecustom--ContractWithCustomerLiabilityAddition_c20230101__20230630_zXH5pMRdkfCl" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Revenue deferred">3,109,186</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_987_ecustom--ContractWithCustomerLiabilityAddition_c20220101__20220630_znGnFgnK5vUd" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Revenue deferred">8,102,908</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Deferred revenue, ending balance</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiability_iE_c20230101__20230630_z2lxWv8qnBGk" style="color: Black; text-align: right" title="Deferred revenue, ending balance">8,785,848</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiability_iE_c20220101__20220630_zhCGjHTeozs7" style="color: Black; text-align: right" title="Deferred revenue, ending balance">9,551,446</td><td style="color: Black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Less: short term portion</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98D_ecustom--ContractWithCustomerLiabilitiesCurrent_iNI_di_c20230630_zCke3D82XBj6" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Less short term portion">(4,125,505</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98D_ecustom--ContractWithCustomerLiabilitiesCurrent_iNI_di_c20220630_ztMBig1C3b1l" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Less short term portion">(4,335,404</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Deferred revenue, long term</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_989_ecustom--ContractWithCustomerLiabilitiesNoncurrent_iI_c20230630_zgTGualWDwxe" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Deferred revenue, long term">4,660,343</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98B_ecustom--ContractWithCustomerLiabilitiesNoncurrent_iI_c20220630_z86LhwjXA0L" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Deferred revenue, long term">5,216,042</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8A1_zocwXU1ooUhg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p id="xdx_891_eus-gaap--DisaggregationOfRevenueTableTextBlock_zFVerN5V5t4g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zZlVH065R7Id" style="display: none">SCHEDULE OF DISAGGREGATION OF REVENUE</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230401__20230630_zxJSrqEcZxu" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20220401__20220630_znRRcgR7WxYl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20230630_zai4K5rLOZij" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220630_zTiz7lxoUXVd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__country--US_znjs6XHiqLbl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">8,363,756</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">13,971,832</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">20,141,630</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">40,258,628</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_zgOihKhLb7s8" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">International</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,528,497</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,491,690</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,209,111</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,259,485</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zWhCV1sVgbfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenue from contracts with customers:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,892,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,463,522</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,350,741</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,518,113</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i></i></span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Platform</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net revenue by platform for the three and six months ended June 30, 2023 and 2022 were as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230401__20230630_zfzPVdOoAYK7" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20220401__20220630_zevDEO7G4Rol" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20230630_zYX8nBV6zLWk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220630_zVXlBrUGirDj" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ConsoleMember_zdfinQhlvBw" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Console</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">3,626,475</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">5,415,772</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">9,400,065</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">23,407,351</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PcMember_z3eaje6Aaexg" style="vertical-align: bottom; background-color: White"> <td>PC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,367,369</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,943,036</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,379,549</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,627,472</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--MobileMember_zcSf5SrZuDmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Mobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,508,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,393,878</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,226,235</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,185,198</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--ManufacturedProductOtherMember_zwMeh00c33b7" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,390,206</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">710,836</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,344,892</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,298,092</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zWQevzo2RHzh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenue from contracts with customers:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,892,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,463,522</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,350,741</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,518,113</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i></i></span></p> <p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Distribution channel</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20230401__20230630_zO9HHv2Id69l" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20220401__20220630_zgR3xYEr0QMh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230101__20230630_zj3l1QyThw11" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220630_zemIrUidU4r" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerDigitalOnlineServiceMember_zXoMqbGSaGLf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Digital</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,993,844</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">12,358,808</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">17,779,614</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">37,034,823</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerMobileSaleMember_z64NaU16CyYe" style="vertical-align: bottom; background-color: White"> <td>Mobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,508,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,393,878</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,226,235</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,185,198</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__us-gaap--SalesChannelThroughIntermediaryMember_z7ugctG3VqT5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Physical retail and other</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,390,206</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">710,836</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,344,892</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,298,092</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zHg6AxIPcwp" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total revenue from contracts with customers:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,892,253</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,463,522</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">23,350,741</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,518,113</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 8363756 13971832 20141630 40258628 1528497 1491690 3209111 3259485 9892253 15463522 23350741 43518113 3626475 5415772 9400065 23407351 3367369 6943036 8379549 13627472 1508203 2393878 3226235 5185198 1390206 710836 2344892 1298092 9892253 15463522 23350741 43518113 6993844 12358808 17779614 37034823 1508203 2393878 3226235 5185198 1390206 710836 2344892 1298092 9892253 15463522 23350741 43518113 8785848 2600000 300000 2600000 P12M 2300000 P24M 4100000 4700000 P12M P60M <p id="xdx_89E_ecustom--ScheduleOfDeferredRevenueTableTextBlock_zT4NdA1does4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span id="xdx_8B1_zMKlVGYxshi7" style="display: none">SCHEDULE OF DEFERRED REVENUE</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Deferred revenue, beginning balance in advance of revenue recognition billing</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractWithCustomerLiability_iS_c20230101__20230630_zDpWW3xM1D7g" style="width: 14%; color: Black; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">9,551,446</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td id="xdx_988_eus-gaap--ContractWithCustomerLiability_iS_c20220101__20220630_zqurHegBsrWc" style="width: 14%; color: Black; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">20,280,934</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Revenue recognized</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_984_ecustom--TotalRevenueRecognizedFromBothBeginningBalanceAndCurrentPeriodIncreaseInContractLiability_c20230101__20230630_za8LJqluPlMc" style="color: Black; text-align: right" title="Revenue recognized">(3,874,784</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_981_ecustom--TotalRevenueRecognizedFromBothBeginningBalanceAndCurrentPeriodIncreaseInContractLiability_c20220101__20220630_zH9lnpLCA0Sf" style="color: Black; text-align: right" title="Revenue recognized">(18,832,396</td><td style="color: Black; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Revenue deferred</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_986_ecustom--ContractWithCustomerLiabilityAddition_c20230101__20230630_zXH5pMRdkfCl" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Revenue deferred">3,109,186</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_987_ecustom--ContractWithCustomerLiabilityAddition_c20220101__20220630_znGnFgnK5vUd" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Revenue deferred">8,102,908</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Deferred revenue, ending balance</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiability_iE_c20230101__20230630_z2lxWv8qnBGk" style="color: Black; text-align: right" title="Deferred revenue, ending balance">8,785,848</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiability_iE_c20220101__20220630_zhCGjHTeozs7" style="color: Black; text-align: right" title="Deferred revenue, ending balance">9,551,446</td><td style="color: Black; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Less: short term portion</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98D_ecustom--ContractWithCustomerLiabilitiesCurrent_iNI_di_c20230630_zCke3D82XBj6" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Less short term portion">(4,125,505</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98D_ecustom--ContractWithCustomerLiabilitiesCurrent_iNI_di_c20220630_ztMBig1C3b1l" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Less short term portion">(4,335,404</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Deferred revenue, long term</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_989_ecustom--ContractWithCustomerLiabilitiesNoncurrent_iI_c20230630_zgTGualWDwxe" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Deferred revenue, long term">4,660,343</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98B_ecustom--ContractWithCustomerLiabilitiesNoncurrent_iI_c20220630_z86LhwjXA0L" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Deferred revenue, long term">5,216,042</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> 9551446 20280934 -3874784 -18832396 3109186 8102908 8785848 9551446 4125505 4335404 4660343 5216042 <p id="xdx_808_ecustom--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsTextBlock_zF2mv5hmsd82" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 4 – <span id="xdx_822_zmh53BOrp1Fj">CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Cash equivalents are valued using quoted market prices or other readily available market information. The Company has $<span id="xdx_903_eus-gaap--RestrictedCashAndCashEquivalentsNoncurrent_iI_c20230630_z6AJykeIrqne" title="Restricted cash and cash equivalents, noncurrent">1,113,960</span> and $<span id="xdx_90B_eus-gaap--RestrictedCashAndCashEquivalentsNoncurrent_iI_c20221231_zRFzUB5R8pX2" title="Restricted cash and cash equivalents, noncurrent">6,374,368</span> as of June 30, 2023 and December 31, 2022, respectively, as security for the debt with a financial institution (see Note 15 — <i>Revolving Loan, Short Term Note, and Long-Term Debt</i>) and to secure standby letters of credit with landlords. On June 21, 2023 the Company amended its revolving loan and $<span id="xdx_905_eus-gaap--RestrictedCashAndCashEquivalents_iI_c20230621_zqIpxX14k065">5,273,391</span> 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:</span></p> <p id="xdx_898_ecustom--ScheduleOfCashCashEquivalentsRestrictedCashAndCashEquivalentsTableTextBlock_zAgjJAkQ9pW3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> <span><span id="xdx_8B0_zJ1lQL6ViGU1" style="display: none">SUMMARY OF COMPONENTS OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20230630_zMRSSPx8aS8f" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220630_za84aZHgg7h5" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_maCCERCzPcA_z2XFovvryQY3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Cash and cash equivalents</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">2,960,160</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">14,697,338</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RestrictedCashAndCashEquivalentsNoncurrent_iI_maCCERCzPcA_zd4XNajjWMWl" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Restricted cash and cash equivalents</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">1,113,960</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">6,361,381</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents_iI_mtCCERCzPcA_zJuPmYeA81L4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents, and restricted cash and cash equivalents</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">4,074,120</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">21,058,719</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8A5_zlE5Wdzu8X8k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> 1113960 6374368 5273391 <p id="xdx_898_ecustom--ScheduleOfCashCashEquivalentsRestrictedCashAndCashEquivalentsTableTextBlock_zAgjJAkQ9pW3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> <span><span id="xdx_8B0_zJ1lQL6ViGU1" style="display: none">SUMMARY OF COMPONENTS OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49A_20230630_zMRSSPx8aS8f" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220630_za84aZHgg7h5" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_maCCERCzPcA_z2XFovvryQY3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Cash and cash equivalents</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">2,960,160</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">14,697,338</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--RestrictedCashAndCashEquivalentsNoncurrent_iI_maCCERCzPcA_zd4XNajjWMWl" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Restricted cash and cash equivalents</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">1,113,960</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">6,361,381</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents_iI_mtCCERCzPcA_zJuPmYeA81L4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents, and restricted cash and cash equivalents</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">4,074,120</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">21,058,719</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> 2960160 14697338 1113960 6361381 4074120 21058719 <p id="xdx_809_ecustom--RelatedPartyTransactionsAccountsReceivableCurrentDisclosureTextBlock_zzJJd3Jfgn1j" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 5 – <span id="xdx_822_zRhJ4QmCjCj7">ACCOUNTS RECEIVABLE – RELATED PARTY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">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 <span id="xdx_90F_ecustom--RelatedPartyTransactionOwnershipPercentageWithRelatedParties_iI_pid_dp_uPure_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember_z9qGVuIU91Nc" title="Ownership percentage">100</span>% 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:</span></p> <p id="xdx_89D_ecustom--ScheduleOfRelatedPartyTransactionDueFromRelatedPartyCurrentTableTextBlock_zHaauzKff9M2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> <span id="xdx_8BA_zkAfa8AW6DOc" style="display: none">SCHEDULE OF ACCOUNTS RECEIVABLE RELATED PARTY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zFtmx1ikzfb9" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zqV1OJU0p3oh" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_407_ecustom--AccountsReceivableRelatedPartiesCurrentGross_iI_maARRPCzaqZ_zbIL8jiJCdhc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Accounts receivable - related party</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">13,578,520</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">13,519,409</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--AccountsPayableForRoyaltiesInternetDataCenterAndMarketingCostDueToRelatedPartiesCurrent_iNI_di_msARRPCzaqZ_zAnzFKmu2PL7" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Less: Accounts payable - related party</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(1,845,294</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(2,175,225</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--AccountsReceivableNetCurrent_iTI_mtARRPCzaqZ_ze7s7AzEWRo4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Accounts receivable - related party, net</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">11,733,226</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">11,344,184</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8AB_zZjjCwD67Isg" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b> </b></span></p> 1 <p id="xdx_89D_ecustom--ScheduleOfRelatedPartyTransactionDueFromRelatedPartyCurrentTableTextBlock_zHaauzKff9M2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> <span id="xdx_8BA_zkAfa8AW6DOc" style="display: none">SCHEDULE OF ACCOUNTS RECEIVABLE RELATED PARTY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zFtmx1ikzfb9" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zqV1OJU0p3oh" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_407_ecustom--AccountsReceivableRelatedPartiesCurrentGross_iI_maARRPCzaqZ_zbIL8jiJCdhc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Accounts receivable - related party</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">13,578,520</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">13,519,409</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--AccountsPayableForRoyaltiesInternetDataCenterAndMarketingCostDueToRelatedPartiesCurrent_iNI_di_msARRPCzaqZ_zAnzFKmu2PL7" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Less: Accounts payable - related party</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(1,845,294</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(2,175,225</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--AccountsReceivableNetCurrent_iTI_mtARRPCzaqZ_ze7s7AzEWRo4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Accounts receivable - related party, net</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">11,733,226</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">11,344,184</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> 13578520 13519409 1845294 2175225 11733226 11344184 <p id="xdx_801_ecustom--RelatedPartyTransactionDueFromShareholdersDisclosureTextBlock_zF9s5GujO4zd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 6 – <span id="xdx_824_zi87T8fCaurg">DUE FROM SHAREHOLDER</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">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 <span id="xdx_902_eus-gaap--RelatedPartyTransactionRate_pid_dp_uPure_c20230101__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--ReceivablesFromStockholderMember_zETKD3v3arNd" title="Related party transaction, rate">2.0</span>% 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 <span style="background-color: white">– </span>related party (“due from shareholder” or the “Shi Loan”) of $<span id="xdx_90A_ecustom--DueFromShareholderAssignedToRelatedParty_iI_c20220426__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCoMember_zUsfkUNFpSpg" title="Due from shareholder assigned to related party">94,934,400</span> 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 $<span id="xdx_90B_eus-gaap--DividendsPaidinkind_c20220426__20220426__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCoMember_zlLC5gHMI39k" title="Dividend paid">94,934,400</span> on April 26, 2022; see Note 7 <span style="background-color: white">–</span> <i>Dividend Distribution</i>. As of December 31, 2022, the other receivable was $<span id="xdx_90F_eus-gaap--OtherReceivables_iI_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zmrOIQNDpgr6" title="Due from other related parties">0</span> and no longer reflected on the Company’s consolidated balance sheets. The loan accrued interest of $<span id="xdx_903_eus-gaap--DebtInstrumentIncreaseAccruedInterest_c20230401__20230630_zjYEx5qKiQ3d" title="Accrued interest">0</span> and $<span id="xdx_90B_eus-gaap--DebtInstrumentIncreaseAccruedInterest_c20220401__20220630_zM6OVKkMenRc" title="Accrued interest">130,197</span> 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 $<span id="xdx_90E_eus-gaap--DebtInstrumentIncreaseAccruedInterest_c20230101__20230630_zTufFA8aG3ze" title="Accrued interest">0</span> and $<span id="xdx_907_eus-gaap--DebtInstrumentIncreaseAccruedInterest_c20220101__20220630_zrcXXypCx0C8" title="Accrued interest">580,878</span>, respectively. The earned interest is reported in interest income – related parties in the Company’s condensed consolidated statements of operations and comprehensive income (loss).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> 0.020 94934400 94934400 0 0 130197 0 580878 <p id="xdx_808_ecustom--DividendDistributionDisclosureTextBlock_zneZri2UHqG4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 7 – <span id="xdx_822_zxJh7RjX3eQ3">DIVIDEND DISTRIBUTION</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">On April 26, 2022, the Company declared an in-kind dividend of $<span id="xdx_90D_eus-gaap--DividendsPaidinkind_c20220426__20220426_zs4hVwA8xVlf" title="Paid in-kind dividend">94,934,400</span> for the assignment of the due from shareholder and a cash dividend of $<span id="xdx_903_eus-gaap--DividendsCash_c20220426__20220426_zorXA6a4Hdyd" title="Cash dividend">8,200,000</span> to pay the related withholding taxes; see Note 6 – <i>Due from Shareholder.</i> There were <span id="xdx_90E_eus-gaap--Dividends_do_c20230101__20230630_zMz6pvRjAuNi" title="Dividends"><span id="xdx_908_eus-gaap--Dividends_do_c20220101__20220630_zW2K7aPuaSyk" title="Dividends">no</span></span> 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 $<span id="xdx_905_ecustom--RefundOfDividendWithholdingTaxOverpayment_c20230401__20230430_zbYYAR9q95Tf" title="Refund receivable related to withholding taxes">1,886,600</span>. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> 94934400 8200000 0 0 1886600 <p id="xdx_807_ecustom--PrepaidExpensesRelatedPartiesDisclosureTextBlock_zESXdCDVbGBk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 8 – <span id="xdx_821_zbqMnN03mhPj">PREPAID EXPENSES - RELATED PARTY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">On March 10, 2023, the Company amended its exclusive software license agreement with SDE relating to the <i>ARK</i> 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 $<span id="xdx_900_ecustom--AmountPrepaidUnderExclusiveSoftwareLicenseAgreement_pn5n6_dc_c20230309__20230310_zFfTFAHILlbi" title="Amount prepaid in advance">5.0</span> 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 $<span id="xdx_907_ecustom--MaximumAmountPayableUnderExclusiveSoftwareLicenseAgreement_iI_pn5n6_dc_c20230310_zqQZf5s6SD1g" title="Maximum amount payable">5.0</span> million.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">During the six months ended June 30, 2023, the Company prepaid $<span id="xdx_903_ecustom--PrepaidExpensesRelatedPartiesLicenseRights_iI_c20230630__srt--ProductOrServiceAxis__custom--Ark1Member_zcPJDus9Uyj7" title="Prepaid expenses license rights">2,500,000</span> for exclusive license rights for an <i>ARK 1</i> DLC to SDE. During the year ended December 31, 2022, the Company prepaid $<span id="xdx_907_ecustom--PrepaidExpensesRelatedPartiesLicenseRights_iI_c20221231__srt--ProductOrServiceAxis__custom--Ark2Member_zf2TuXTvfW49" title="Prepaid expenses license rights">5,000,000</span> for exclusive license rights to <i>ARK 2</i> to SDE. Prepaid expenses — related party consisted of the following as of June 30, 2023 and December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p id="xdx_894_ecustom--ScheduleOfPrepaidExpensesRelatedPartiesDisclosureTableTextBlock_zcGhgcgxZCL9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; display: none; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> <span id="xdx_8B1_zgXOq8TDSVd7">SCHEDULE OF PREPAID EXPENSES - RELATED PARTY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20230630_zGTHk6gtv49i" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20221231_zAfoNYrrrf6i" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_400_ecustom--PrepaidRoyaltiesRelatedParties_iI_maPERPCz6A9_z07agtOOEfF9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Prepaid royalties</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">582,500</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">582,500</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--PrepaidExpensesRelatedPartiesLicenseRights_iI_maPERPCz6A9_zlji4L87H02c" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Prepaid licenses</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">7,500,000</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">5,000,000</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--PrepaidExpensesRelatedPartiesCurrentAndNoncurrentTotal_iTI_mtPERPCz6A9_maPERPNz3Hm_z5hSKj99ZNi2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Prepaid expenses - related party, ending balance</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">8,082,500</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">5,582,500</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--PrepaidExpensesRelatedPartiesCurrentTotal_iI_maPERPNz3Hm_zexHvx2EUijl" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Less: short-term portion</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(2,500,000</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1584">—</span></td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--PrepaidExpensesRelatedPartiesNoncurrentTotal_iTI_mtPERPNz3Hm_zllv6uNFD6zi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Total prepaid expenses - related party, long-term</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">5,582,500</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">5,582,500</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8AE_z6mZZ0s27yc5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> 5000000.0 5000000.0 2500000 5000000 <p id="xdx_894_ecustom--ScheduleOfPrepaidExpensesRelatedPartiesDisclosureTableTextBlock_zcGhgcgxZCL9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; display: none; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> <span id="xdx_8B1_zgXOq8TDSVd7">SCHEDULE OF PREPAID EXPENSES - RELATED PARTY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20230630_zGTHk6gtv49i" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20221231_zAfoNYrrrf6i" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_400_ecustom--PrepaidRoyaltiesRelatedParties_iI_maPERPCz6A9_z07agtOOEfF9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Prepaid royalties</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">582,500</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">582,500</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--PrepaidExpensesRelatedPartiesLicenseRights_iI_maPERPCz6A9_zlji4L87H02c" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Prepaid licenses</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">7,500,000</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">5,000,000</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--PrepaidExpensesRelatedPartiesCurrentAndNoncurrentTotal_iTI_mtPERPCz6A9_maPERPNz3Hm_z5hSKj99ZNi2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Prepaid expenses - related party, ending balance</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">8,082,500</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">5,582,500</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--PrepaidExpensesRelatedPartiesCurrentTotal_iI_maPERPNz3Hm_zexHvx2EUijl" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Less: short-term portion</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(2,500,000</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1584">—</span></td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--PrepaidExpensesRelatedPartiesNoncurrentTotal_iTI_mtPERPNz3Hm_zllv6uNFD6zi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Total prepaid expenses - related party, long-term</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">5,582,500</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">5,582,500</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> 582500 582500 7500000 5000000 8082500 5582500 -2500000 5582500 5582500 <p id="xdx_803_ecustom--PrepaidExpensesAndOtherCurrentAssetsDisclosureTextBlock_z5hC5e6ba9Za" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 9 – <span id="xdx_82C_zWnBxKC9ugN6">PREPAID EXPENSES AND OTHER CURRENT ASSETS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p id="xdx_895_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zvgVc9aqcoRe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Prepaid expenses and other current assets consisted of the following as of June 30, 2023 and December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B9_zzz1YiHfjNA8"><span id="xdx_8BD_z9QPF9MiNUC7">SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS</span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230630_zOaIhWdtyHK6" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20221231_zOpEG1K9ce84" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--PrepaidTaxes_iI_pp0p0_maPEAOAzDKI_zuu2tXfwNdyg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Prepaid income taxes</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">9,894,191</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">9,822,603</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--WithholdingRefundReceivable_iI_pp0p0_maPEAOAzDKI_zNQtdcgK52M4" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Withholding refund receivable</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,886,600</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="-sec-ix-hidden: xdx2ixbrl1597">—</span></p></td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherPrepaidExpenseCurrent_iI_pp0p0_maPEAOAzDKI_zhFwMXHteSTi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Other prepaids</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">106,798</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">80,271</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OtherAssetsCurrent_iI_pp0p0_maPEAOAzDKI_z9mxKddWwID2" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Other current assets</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">329,212</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">662,267</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzDKI_zw9LokGW6758" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Total prepaid expenses and other current assets</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">12,216,801</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">10,565,141</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8A6_zRaKgkFOjOLg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p> <p id="xdx_895_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zvgVc9aqcoRe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Prepaid expenses and other current assets consisted of the following as of June 30, 2023 and December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B9_zzz1YiHfjNA8"><span id="xdx_8BD_z9QPF9MiNUC7">SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS</span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230630_zOaIhWdtyHK6" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20221231_zOpEG1K9ce84" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--PrepaidTaxes_iI_pp0p0_maPEAOAzDKI_zuu2tXfwNdyg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black; text-align: left">Prepaid income taxes</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">9,894,191</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">9,822,603</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--WithholdingRefundReceivable_iI_pp0p0_maPEAOAzDKI_zNQtdcgK52M4" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Withholding refund receivable</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,886,600</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="-sec-ix-hidden: xdx2ixbrl1597">—</span></p></td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherPrepaidExpenseCurrent_iI_pp0p0_maPEAOAzDKI_zhFwMXHteSTi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Other prepaids</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">106,798</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">80,271</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OtherAssetsCurrent_iI_pp0p0_maPEAOAzDKI_z9mxKddWwID2" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Other current assets</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">329,212</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">662,267</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzDKI_zw9LokGW6758" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Total prepaid expenses and other current assets</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">12,216,801</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">10,565,141</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> 9894191 9822603 1886600 106798 80271 329212 662267 12216801 10565141 <p id="xdx_803_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zaw5vr1utCze" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 10 – <span id="xdx_823_zQds0FkfSdrg">PROPERTY, PLANT AND EQUIPMENT, NET</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p id="xdx_89A_eus-gaap--PropertyPlantAndEquipmentTextBlock_zfRCQxxIEVHa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Property, plant and equipment, net consisted of the following as of June 30, 2023 and December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zxcVqfJFKDD6">SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT, NET</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230630_zr6w9XIQmWca" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20221231_zjVsXW1Usay9" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zDBXyDA8d9s4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black">Building</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">1,874,049</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">1,874,049</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandMember_z11UZEPJEw1e" style="vertical-align: bottom; background-color: White"> <td style="color: Black">Land</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,700,000</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,700,000</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingImprovementsMember_zKtzJqY4cmuf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Building improvements</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,010,218</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,010,218</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zfvztZstn1m" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Leasehold improvements</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,537,775</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,537,775</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--TrucksMember_zIuu2PdLwp0h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Autos and trucks</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">178,695</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">178,695</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_z7Owkda4NnOc" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Computer and equipment</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,821,819</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,821,819</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zmMg31Eh6W84" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Furniture and fixtures</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">411,801</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">411,801</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz2m9_zqwGFyWdaaZ3" style="vertical-align: bottom; background-color: White"> <td style="color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Property, plant and equipment, Gross</span></td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">9,534,357</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">9,534,357</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz2m9_zQl0zYqODzNh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(4,652,728</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(4,419,558</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz2m9_zU8V850mB7Bk" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">4,881,629</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">5,114,799</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8A9_zNeKZiMpdzP9" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Depreciation and amortization expense was $<span id="xdx_90E_eus-gaap--DepreciationDepletionAndAmortization_c20230401__20230630_zlapTy3yQ6D8" title="Depreciation and amortization expense">118,110</span> and $<span id="xdx_904_eus-gaap--DepreciationDepletionAndAmortization_c20220401__20220630_zftwizcCMrN" title="Depreciation and amortization expense">138,791</span> for the three months ended June 30, 2023 and 2022, respectively. Depreciation and amortization expense was $<span id="xdx_909_eus-gaap--DepreciationDepletionAndAmortization_c20230101__20230630_zCyI4BnnNlM5" title="Depreciation and amortization expense">233,170</span> and $<span id="xdx_909_eus-gaap--DepreciationDepletionAndAmortization_c20220101__20220630_zVWGuhTXCKW3" title="Depreciation and amortization expense">307,108</span> 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 $<span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentDisposals_c20220101__20220630_zMG7UkbmyJBh" title="Property plant and equipment, disposals">11,615</span> in computer equipment with an accumulated depreciation of $<span id="xdx_90C_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationSaleOfPropertyPlantAndEquipment1_c20230101__20230630_zFLUyRbRs6N9" title="Accumulated depreciation">9,182</span>. The total loss resulting from the disposal of the assets amounted to $<span id="xdx_900_eus-gaap--GainLossOnDispositionOfAssets_iN_di_c20230101__20230630_zIvr6JOFo8u2" title="Disposal of assets">2,433</span>. The Company’s subsidiary, Donkey Crew, LLC, held net property, plant and equipment outside of the United States in the amount of $<span id="xdx_908_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20230630__srt--ConsolidatedEntitiesAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zB0Qx9w9bnQj" title="Property plant and equipment net">6,975</span> and $<span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20221231__srt--ConsolidatedEntitiesAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zYBYjWnt2cF2" title="Property plant and equipment net">13,569</span>, as of June 30, 2023 and December 31, 2022, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p id="xdx_89A_eus-gaap--PropertyPlantAndEquipmentTextBlock_zfRCQxxIEVHa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Property, plant and equipment, net consisted of the following as of June 30, 2023 and December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B0_zxcVqfJFKDD6">SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT, NET</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230630_zr6w9XIQmWca" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20221231_zjVsXW1Usay9" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zDBXyDA8d9s4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; color: Black">Building</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">1,874,049</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 14%; color: Black; text-align: right">1,874,049</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandMember_z11UZEPJEw1e" style="vertical-align: bottom; background-color: White"> <td style="color: Black">Land</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,700,000</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,700,000</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingImprovementsMember_zKtzJqY4cmuf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Building improvements</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,010,218</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,010,218</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zfvztZstn1m" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Leasehold improvements</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,537,775</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,537,775</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--TrucksMember_zIuu2PdLwp0h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Autos and trucks</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">178,695</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">178,695</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_z7Owkda4NnOc" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">Computer and equipment</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,821,819</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">1,821,819</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zmMg31Eh6W84" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Furniture and fixtures</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">411,801</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">411,801</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz2m9_zqwGFyWdaaZ3" style="vertical-align: bottom; background-color: White"> <td style="color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Property, plant and equipment, Gross</span></td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">9,534,357</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">9,534,357</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz2m9_zQl0zYqODzNh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(4,652,728</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">(4,419,558</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz2m9_zU8V850mB7Bk" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">4,881,629</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">5,114,799</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> 1874049 1874049 2700000 2700000 1010218 1010218 1537775 1537775 178695 178695 1821819 1821819 411801 411801 9534357 9534357 4652728 4419558 4881629 5114799 118110 138791 233170 307108 11615 9182 -2433 6975 13569 <p id="xdx_80D_eus-gaap--IntangibleAssetsDisclosureTextBlock_zUyVyFqMyfrb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 11 – <span id="xdx_824_zET9k5Dcb0sk">INTANGIBLE ASSETS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p id="xdx_891_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zgBG4HZGm6Ei" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">The following tables reflect all the intangible assets presented on the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B6_zwN18mlR2hY1">SCHEDULE OF INTANGIBLE ASSETS</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="17" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2023</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Gross</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Weighted</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Carrying</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Accumulated</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Impairment</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Net Book</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Average</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amortization</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Loss</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%; color: Black; text-align: left; padding-bottom: 2.5pt">License rights from related parties</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zSREZur4dk8f" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,665,000</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zIvfcpt3jtGh" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(136,338,913</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_986_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zqG0hkLfceae" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1668">—</span></td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zaIPY3NktThf" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">326,087</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="width: 12%; color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_zhZpYNm3xEp3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> - <span id="xdx_905_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zhlcW8UwQ2V5" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z7HCdsQ1jKAh" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zgtT3UJYDXh3" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98B_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z5oYflpVmrub" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1680">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">—</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_906_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zDWwee5izimh" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Intangible assets - other:</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black">Software</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z9Lulr2zr0B2" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zxmBOTgFSTy4" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_905_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zsuRqTgxSGZ3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black">Trademark</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z0UUm2RL1Dga" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zzgvM5MrYIs5" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(9,512</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zcPtK6AQ0eEf" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">1,233</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_904_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zZrI9ishe6S" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">In-progress patent</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zer5jRkT4lGk" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zQM2O4MO9xVa" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; padding-bottom: 2.5pt">Total:</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zcTGaARWICNb" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">333,415</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zIFi6txGzXO8" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(61,296</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98A_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zaQEAPjaPUQk" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1706">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zVkFAUVpAJMa" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">272,119</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="17" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Gross</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Weighted</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Carrying</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Accumulated</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Impairment</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Net Book</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Average</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amortization</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Loss</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%; color: Black; text-align: left; padding-bottom: 2.5pt">License rights from related parties</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zDyQ8Jl1uSKa" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,665,000</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zd4Zf24NtuDd" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(135,280,942</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_988_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zE2AxSMghdp1" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1714">—</span></td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zUPlhIewjaBh" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">1,384,058</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="width: 12%; color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_904_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_z5ZhgTqgmYq3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> - <span id="xdx_90C_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zKaSUEevgLpi" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zjBk7nRjPAG5" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zfpoZa9FFU8" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98D_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zHUmRWUTqfih" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1726">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">—</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_902_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zd7YjpaL26Tg" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Intangible assets - other:</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black">Software</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z8bxk4O7r6Gd" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zQpRUXT1mrAh" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_90A_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zZF9qenhcJC2" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black">Trademark</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zxcpxZViMfT5" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zHwmOpryd5Qj" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(9,110</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zefsJekTWf0h" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">1,635</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_90A_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z4jQ12DOz5w2" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">In-progress patent</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zhssgdmdCSP1" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zlXRLJUkOlR9" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; padding-bottom: 2.5pt">Total:</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zupZJ9clFiR9" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">333,415</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zwjMlBaNoYp6" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(60,894</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_983_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_z3uimG6iE0C2" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1752">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zNT9BQ8Gzp4i" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">272,521</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table> <p id="xdx_8A8_z3Br5b3kehjf" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization expense was $<span id="xdx_904_eus-gaap--AdjustmentForAmortization_c20230401__20230630_zzOPUouy8dl8" title="Amortization expense">362,520</span> and $<span id="xdx_902_eus-gaap--AdjustmentForAmortization_c20220401__20220630_zFpeQQgfUK52" title="Amortization expense">1,951,204</span> for the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $<span id="xdx_909_eus-gaap--AdjustmentForAmortization_c20230101__20230630_zF6xLpvBowYk" title="Amortization expense">1,058,373</span> and $<span id="xdx_905_eus-gaap--AdjustmentForAmortization_c20220101__20220630_zt9FZk9UYhM6" title="Amortization expense">3,952,407</span> 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 <span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_iI_dtY_c20230630_zzUunq6aO4Rj" title="Finite-Lived Intangible Assets, Remaining Amortization Period">0.5</span> years as of June 30, 2023. Future amortization expense of intangible assets is as follows:</p> <p id="xdx_896_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zaWEPOcgYAW6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B9_zCpxuqHFj5h1" style="display: none">SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold">Years ending December 31,</td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20230630_z0OhYJitx9X" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_maFLIANzDgc_zGZqPPHep568" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; color: Black">Remainder of 2023</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 16%; color: Black; text-align: right">326,489</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzDgc_zY6CDJUVQDkj" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">2024</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">804</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzDgc_zCZRQTv8XrRl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">2025</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">27</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzDgc_z1FbPsCNc2g7" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">2026</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1774">—</span></td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzDgc_zy8JvT2mdFba" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">2027</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1776">—</span></td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_maFLIANzDgc_zcj76IYiUAy3" style="vertical-align: bottom; background-color: White"> <td style="color: Black; padding-bottom: 1.5pt">Thereafter</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_mtFLIANzDgc_zc1h43sL2zS4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">598,206</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8AF_zNmW9ICGyu25" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p id="xdx_891_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zgBG4HZGm6Ei" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">The following tables reflect all the intangible assets presented on the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B6_zwN18mlR2hY1">SCHEDULE OF INTANGIBLE ASSETS</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="17" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2023</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Gross</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Weighted</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Carrying</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Accumulated</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Impairment</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Net Book</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Average</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amortization</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Loss</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%; color: Black; text-align: left; padding-bottom: 2.5pt">License rights from related parties</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zSREZur4dk8f" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,665,000</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zIvfcpt3jtGh" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(136,338,913</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_986_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zqG0hkLfceae" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1668">—</span></td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zaIPY3NktThf" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">326,087</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="width: 12%; color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_zhZpYNm3xEp3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> - <span id="xdx_905_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zhlcW8UwQ2V5" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z7HCdsQ1jKAh" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zgtT3UJYDXh3" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98B_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z5oYflpVmrub" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1680">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">—</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_906_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zDWwee5izimh" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Intangible assets - other:</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black">Software</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z9Lulr2zr0B2" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zxmBOTgFSTy4" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_905_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zsuRqTgxSGZ3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black">Trademark</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z0UUm2RL1Dga" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zzgvM5MrYIs5" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(9,512</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zcPtK6AQ0eEf" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">1,233</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_904_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zZrI9ishe6S" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">In-progress patent</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zer5jRkT4lGk" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zQM2O4MO9xVa" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; padding-bottom: 2.5pt">Total:</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zcTGaARWICNb" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">333,415</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zIFi6txGzXO8" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(61,296</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98A_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zaQEAPjaPUQk" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1706">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zVkFAUVpAJMa" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">272,119</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="17" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Gross</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black"> </td> <td colspan="2" style="color: Black; text-align: center"> </td><td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Weighted</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Carrying</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Accumulated</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Impairment</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" style="color: Black; font-weight: bold; text-align: center">Net Book</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td style="color: Black; font-weight: bold; text-align: center">Average</td></tr> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amortization</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Loss</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%; color: Black; text-align: left; padding-bottom: 2.5pt">License rights from related parties</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zDyQ8Jl1uSKa" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,665,000</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zd4Zf24NtuDd" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(135,280,942</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_988_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zE2AxSMghdp1" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1714">—</span></td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; color: Black; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember_zUPlhIewjaBh" style="border-bottom: Black 2.5pt double; width: 10%; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">1,384,058</td><td style="width: 1%; padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="width: 2%; color: Black; padding-bottom: 2.5pt"> </td> <td style="width: 12%; color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_904_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_z5ZhgTqgmYq3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> - <span id="xdx_90C_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zKaSUEevgLpi" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zjBk7nRjPAG5" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zfpoZa9FFU8" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,000,000</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98D_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zHUmRWUTqfih" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1726">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">—</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"><span id="xdx_902_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zd7YjpaL26Tg" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">Intangible assets - other:</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"> </td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black">Software</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_z8bxk4O7r6Gd" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zQpRUXT1mrAh" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left">$</td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_90A_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zZF9qenhcJC2" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3</span> years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black">Trademark</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zxcpxZViMfT5" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zHwmOpryd5Qj" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(9,110</td><td style="color: Black; text-align: left">)</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">—</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zefsJekTWf0h" style="color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">1,635</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: center"><span id="xdx_90A_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20220101__20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z4jQ12DOz5w2" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12</span> years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; padding-bottom: 1.5pt">In-progress patent</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zhssgdmdCSP1" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">—</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zlXRLJUkOlR9" style="border-bottom: Black 1.5pt solid; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; padding-bottom: 2.5pt">Total:</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zupZJ9clFiR9" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Gross">333,415</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zwjMlBaNoYp6" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(60,894</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left">)</td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_983_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_z3uimG6iE0C2" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss"><span style="-sec-ix-hidden: xdx2ixbrl1752">—</span></td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20221231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zNT9BQ8Gzp4i" style="border-bottom: Black 2.5pt double; color: Black; text-align: right" title="Finite-Lived Intangible Assets, Net">272,521</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="color: Black; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table> 136665000 -136338913 326087 P3Y P5Y 3000000 -3000000 P5Y 51784 -51784 P3Y 10745 -9512 1233 P12Y 270886 270886 333415 -61296 272119 136665000 -135280942 1384058 P3Y P5Y 3000000 -3000000 P5Y 51784 -51784 P3Y 10745 -9110 1635 P12Y 270886 270886 333415 -60894 272521 362520 1951204 1058373 3952407 P0Y6M <p id="xdx_896_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zaWEPOcgYAW6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span><span id="xdx_8B9_zCpxuqHFj5h1" style="display: none">SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold">Years ending December 31,</td><td style="color: Black; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20230630_z0OhYJitx9X" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; color: Black; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear_iI_maFLIANzDgc_zGZqPPHep568" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; color: Black">Remainder of 2023</td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 16%; color: Black; text-align: right">326,489</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzDgc_zY6CDJUVQDkj" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">2024</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">804</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzDgc_zCZRQTv8XrRl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">2025</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">27</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzDgc_z1FbPsCNc2g7" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left">2026</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1774">—</span></td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzDgc_zy8JvT2mdFba" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left">2027</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1776">—</span></td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour_iI_maFLIANzDgc_zcj76IYiUAy3" style="vertical-align: bottom; background-color: White"> <td style="color: Black; padding-bottom: 1.5pt">Thereafter</td><td style="color: Black; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">270,886</td><td style="padding-bottom: 1.5pt; color: Black; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_mtFLIANzDgc_zc1h43sL2zS4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="color: Black; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">598,206</td><td style="padding-bottom: 2.5pt; color: Black; text-align: left"> </td></tr> </table> 326489 804 27 270886 598206 <p id="xdx_800_ecustom--AccountsPayableToRelatedPartiesTextBlock_zzKXcbdiiOgk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 12 – <span id="xdx_826_zzdMYaWPyQVi">ACCOUNTS PAYABLE — RELATED PARTY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">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 $<span id="xdx_90D_eus-gaap--AccountsPayableCurrent_iI_c20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zUN1CS7jh1B2" title="Accounts payable to parent">19,611,207</span> and $<span id="xdx_90D_eus-gaap--AccountsPayableCurrent_iI_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zEuBL4O9YU0l" title="Accounts payable to parent">19,918,259</span>, respectively, as accounts payable due to Suzhou Snail. During the three months ended June 30, 2023 and 2022, the Company incurred $<span id="xdx_900_eus-gaap--CostsAndExpensesRelatedParty_c20230401__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_z840Zari5ELj" title="License costs to related party">70,425</span> and $<span id="xdx_90A_eus-gaap--CostsAndExpensesRelatedParty_c20220401__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zKPfXf86Fm5" title="License costs to related party">98,573</span>, 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 $<span id="xdx_90B_eus-gaap--CostsAndExpensesRelatedParty_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zthYqw8Zaf4e" title="License costs to related party">142,948</span> and $<span id="xdx_903_eus-gaap--CostsAndExpensesRelatedParty_c20220101__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zhdhPlVq7wo6" title="License costs to related party">222,033</span>, 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 $<span id="xdx_90B_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zdVBKlbQk5k1" title="Royalty payments">450,000</span> and $<span id="xdx_900_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_c20220101__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zQRmTOdxl5Uj" title="Royalty payments">444,263</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> 19611207 19918259 70425 98573 142948 222033 450000 444263 <p id="xdx_805_ecustom--LoanAndInterestReceivableFromRelatedPartiesTextBlock_zjMYS9jl1Uyk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 13 – <span id="xdx_82C_zojgK6boFjdi">LOAN AND INTEREST RECEIVABLE — RELATED PARTY</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">In February 2021, the Company lent $<span id="xdx_902_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_c20210201__20210228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember_zSFIEx5YYCXi" title="Loan to related party">200,000</span> to a wholly owned subsidiary of Suzhou Snail, the loan bears <span id="xdx_90D_eus-gaap--RelatedPartyTransactionRate_pid_dp_uPure_c20220201__20220228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember_z9WHY9PVVObk" title="Loan to related party">2.0</span>% 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 $<span id="xdx_901_ecustom--RelatedPartyLoanAmountAssumed_c20220201__20220228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouSnailMember__dei--LegalEntityAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zkyyyvkxNSei" title="Loan amount and interest assumed">203,890</span>. Subsequently, $<span id="xdx_90D_ecustom--AmountOfLoanAndInterestReceivableOffset_c20220201__20220228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouSnailMember_zpmOGRjJuSQ7" title="Amount of loan and interest receivable offset">103,890</span> was offset against the loan and interest payable owed to Suzhou Snail on a separate note. Please refer to Note 14 — <i>Loan Payable and Interest Payable — Related Parties</i>. The total amount of loan and interest receivable — related parties was $<span id="xdx_901_eus-gaap--OtherReceivablesNetCurrent_iI_c20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zWxneF4iRFI5" title="Loan and interest receivable - related party">102,745</span> and $<span id="xdx_902_eus-gaap--OtherReceivablesNetCurrent_iI_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z61D1nPJfpwl" title="Loan and interest receivable - related party">101,753</span>, as of June 30, 2023 and December 31, 2022, respectively. The Company earned $<span id="xdx_90C_eus-gaap--InterestIncomeOperating_c20230401__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z6vbkmkkKpXd" title="Interest income earned">499</span> and $<span id="xdx_908_eus-gaap--InterestIncomeOperating_c20220401__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zinBruhwWR2f" title="Interest income earned">499</span> 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 $<span id="xdx_904_eus-gaap--InterestIncomeOperating_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zEWuIVV60P2b" title="Interest income earned">992</span> and $<span id="xdx_90E_eus-gaap--InterestIncomeOperating_c20220101__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zg7Q3snRtZ2l" title="Interest income earned">745</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> 200000 0.020 203890 103890 102745 101753 499 499 992 745 <p id="xdx_805_ecustom--LoanPayableAndInterestPayableToRelatedPartiesTextBlock_zHSOV1fCm8bh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 14 – <span id="xdx_824_zT1iCe7LBwol">LOAN PAYABLE AND INTEREST PAYABLE — RELATED PARTIES</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">The Company had a loan amount due to related parties of $<span id="xdx_907_eus-gaap--OtherLiabilitiesCurrent_iI_c20230630__us-gaap--RelatedPartyTransactionAxis__custom--LoanFromRelatedPartyMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zPRlrctC7zVc" title="Loan payable - related parties">400,000</span> bearing <span id="xdx_90A_eus-gaap--RelatedPartyTransactionRate_pid_dp_uPure_c20230101__20230630__us-gaap--RelatedPartyTransactionAxis__custom--LoanFromRelatedPartyMember_z8lNukD1Qml9" title="Interest rate per annum">2.00</span>% per annum interest. $<span id="xdx_90C_eus-gaap--OtherLiabilitiesCurrent_iI_c20230630__us-gaap--RelatedPartyTransactionAxis__custom--LoanFromRelatedPartyDueInJune2022Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--WhollyOwnedSubsidiaryOfSnailDigitalTechnologyCo.Ltd.Member_zOqsqngfrgIk" title="Loan payable - related parties">300,000</span> of the loan is from a wholly owned subsidiary of Suzhou Snail and due in June 2022, and $<span id="xdx_906_eus-gaap--OtherLiabilitiesCurrent_iI_c20220630__us-gaap--RelatedPartyTransactionAxis__custom--LoanFromRelatedPartyDueInDecember2023Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zVxvcqq7Bmea" title="Loan payable - related parties">100,000</span> is from Suzhou Snail and due in December 2023. The $<span id="xdx_900_ecustom--RelatedPartyAmountOfLoanPayableOffsetByReceivable_iI_c20220228__us-gaap--RelatedPartyTransactionAxis__custom--LoanFromRelatedPartyDueInDecember2023Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zvEijx7DWUb8" title="Loans payable offset against receivable, related party">100,000</span> loan along with $<span id="xdx_90A_ecustom--AmountOfInterestPayableOffsetByInterestReceivable_iI_c20220228__us-gaap--RelatedPartyTransactionAxis__custom--LoanFromRelatedPartyDueInDecember2023Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zORChwhvO7i" title="Loans payable offset against receivable">3,890</span> interest payable to Suzhou Snail was offset by the loan receivable Suzhou Snail assumed in February 2022. Please refer to Note 13 — <i>Loan and Interest Receivable — Related Party</i>. In July 2022, the Company paid off the</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">outstanding principal balance of $<span id="xdx_905_eus-gaap--RepaymentsOfRelatedPartyDebt_c20220701__20220731__us-gaap--RelatedPartyTransactionAxis__custom--LoanFromRelatedPartyDueInJune2022Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--WhollyOwnedSubsidiaryOfSnailDigitalTechnologyCo.Ltd.Member_z5XRcQNU06jc" title="Payment of related party debt">300,000</span>. As of June 30, 2023 and December 31, 2022, the total loan payable — related parties amounted to $<span id="xdx_909_eus-gaap--OtherLiabilitiesCurrent_iI_dxL_c20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zd4tCff9beej" title="Loan payable - related parties::XDX::-"><span style="-sec-ix-hidden: xdx2ixbrl1838">0</span></span> and total unpaid interest amounted to $<span id="xdx_907_ecustom--InterestPayableRelatedPartiesCurrent_iI_c20221231_zGw2ANjvPoz8" title="Interest payable - related parties">527,770</span>, as of June 30, 2023 and December 31, 2022. Interest expenses for the loans payable to related parties were $<span id="xdx_90E_eus-gaap--InterestExpense_dxL_c20230401__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z94y332HEan6" title="Interest expense-related parties::XDX::-"><span style="-sec-ix-hidden: xdx2ixbrl1842">0</span></span> and $<span id="xdx_902_eus-gaap--InterestExpense_c20220401__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zkB8ZlQF4jLl" title="Interest expense-related parties">1,496</span> 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 $<span id="xdx_906_eus-gaap--InterestExpense_dxL_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z8GQqZIFZxW1" title="Interest expense-related parties::XDX::-"><span style="-sec-ix-hidden: xdx2ixbrl1846">0</span></span> and $<span id="xdx_90C_eus-gaap--InterestExpense_c20220101__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zY4lCIEY1r32" title="Interest expense-related parties">3,222</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> 400000 0.0200 300000 100000 100000 3890 300000 527770 1496 3222 <p id="xdx_806_eus-gaap--DebtDisclosureTextBlock_zzAAvlTlOuie" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b>NOTE 15 – <span id="xdx_822_zjV1S4ykQ6Ql">REVOLVING LOAN, SHORT TERM NOTE AND LONG - TERM DEBT</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><b><span> </span></b></p> <p id="xdx_895_eus-gaap--ScheduleOfDebtTableTextBlock_z6itEMlJqgE" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_ztFXRh7puOic" style="display: none">SCHEDULE OF LONG TERM DEBT</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20230630_z3mo2kfI7wll" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2023</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20221231_zGrbWwYAB75f" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">December 31, 2022</td><td style="color: Black; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zYz2YutlWbx2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 0pt; padding-left: 0pt; width: 60%; color: Black; font-weight: bold; text-align: justify">2021 Revolving Loan - <span style="font-style: normal; font-weight: normal">On June 21, 2023, the Company amended its revolving loan agreement (“amended revolver”) and decreased the maximum balance to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_z89rHCzrxS1k">6,000,000</span></span><span style="font-style: normal; font-weight: normal">. The amended revolver matures on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zi9OFyACNvIk">December 31, 2023</span></span> <span style="font-style: normal; font-weight: normal">and has an annual interest rate equal to the prime rate less <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_ecustom--DebtInstrumentBasisSpreadOnVariableRateLess_pid_dp_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zv61LBHWwz5j" title="Annual interest rate">0.25</span></span><span style="font-style: normal; font-weight: normal">%. At June 30, 2023, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20230630__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zBAiXI4dvJ9k">8.00</span></span><span style="font-style: normal; font-weight: normal">%. 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_pp1d_c20220101__20221231__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zRLnMHib80p7">1.5 to 1</span></span><span style="font-style: normal; font-weight: normal">. The debt service covenant was temporarily lifted as part of the revolving loan amendment for the twelve month period ended June 30, 2023.</span></td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 16%; color: Black; text-align: right">6,000,000</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 16%; color: Black; text-align: right">9,000,000</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zSpgfFxIkhK8" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 0pt; padding-left: 0pt; color: Black; text-align: justify"><b>2021 Promissory Note</b> - <span style="font-style: normal; font-weight: normal">On June 17, 2021, the Company amended its loan agreement to reduce the principal amount with financial institution for <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--DebtInstrumentTerm_dtY_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zwpG1se5iUEh">10 </span></span><span style="font-style: normal; font-weight: normal">years, annual interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_znAS9h3Jnuye">3.5</span></span><span style="font-style: normal; font-weight: normal">% for the first <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_ecustom--DebtInstrumentInterestRateStatedPercentagePeriod_pid_dtY_c20210617__20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zS8TArvQmc7h">5 </span></span><span style="font-style: normal; font-weight: normal">years, and then floating at Wall Street Journal rate from years <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentDescriptionOfVariableRateBasis_c20210617__20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zauMMYckyK44">6 to 10</span></span><span style="font-style: normal; font-weight: normal">, the loan is secured by the Company’s building and matures on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zy2UWsOXkzjh">June 30, 2031</span></span><span style="font-style: normal; font-weight: normal">. 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_z9MZBJ79Qv5d">1.5 to 1</span></span>. 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.</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,845,303</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,891,820</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zTzF9c2KGkZd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 0pt; padding-left: 0pt; color: Black; font-weight: bold; text-align: justify">2022 Short Term Note - <span style="font-style: normal; font-weight: normal">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 $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--PaymentsForLoans_pp0p0_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z73cqIRna4T1" title="Principal payment of loan">10,000,000</span> which was originally set to mature on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentMaturityDate_pp0p0_dd_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zGfA8svh9ui4" title="Debt instrument maturity date">January 26, 2023</span>. Interest shall be equal to the higher of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_902_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zELebyztzgE6" title="Annual interest rate, basis spread">3.75</span>% or the Wall Street Journal Prime Rate plus <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_z4LF9kCFf5Ua" title="Debt instrument basis spread on variable rate">0.50</span>%. 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_ecustom--DebtInstrumentDefaultInterestRate_iI_pid_dp_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zlZXcmFOLa29" title="Default interest rate">5</span>% over the note rate. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z5TFlVH7OhFj" title="Debt service coverage ratio">1.5 to 1</span> 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90F_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_c20221101__20221130__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_zRKDyXhEpHKl" title="Debt instrument basis spread on variable rate">0.25</span>%, or <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20221130__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zysoiHXh1f9g" title="Debt instrument interest rate stated percentage">5.75</span>%. At June 30, 2023, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20230630_zyT83nBpOqsj" title="Interest rate">8.00</span>%.</span></td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">2,916,667</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">5,833,333</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_zdpD0NraJv7g" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-indent: -0.1in; padding-left: 0.1in">Total</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">11,761,970</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">17,725,153</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CurrentPortionOfPromissoryNote_iI_z0Ny2BllWEf9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Less: current portion of promissory note</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,845,303</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">86,524</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--RevolvingLoanPayableCurrent_iI_z2KHLs51iehl" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Less: revolving loan</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">6,000,000</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">9,000,000</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--ShortTermBorrowings_iI_zjCR04jxGNQh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Less: current portion of short term note</td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">2,916,667</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">5,416,666</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtNoncurrent_iI_z2qPxHuFoYpa" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Total long-term debt</td><td style="color: Black"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1905">-</span></td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">3,221,963</td><td style="color: Black; text-align: left"> </td></tr> </table> <p id="xdx_8AC_z1kB3SPY3OL5" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Total interest expense for the above debt and revolver loan amounted to $<span id="xdx_90B_eus-gaap--InterestExpenseDebt_pp0p0_c20230401__20230630__us-gaap--DebtInstrumentAxis__custom--RevolverLoanMember_z2xg60jUYDW3" title="Interest expense">294,749</span> and $<span id="xdx_908_eus-gaap--InterestExpenseDebt_pp0p0_c20220401__20220630__us-gaap--DebtInstrumentAxis__custom--RevolverLoanMember_zXCnjQWAnW36" title="Interest expense">179,602</span> for the three months ended June 30, 2023 and 2022, respectively. Total interest expense for the above debt and revolver loan amounted to $<span id="xdx_906_eus-gaap--InterestExpenseDebt_pp0p0_c20230101__20230630__us-gaap--DebtInstrumentAxis__custom--RevolverLoanMember_zeXHDsQ4nAOa" title="Interest expense">588,994</span> and $<span id="xdx_90B_eus-gaap--InterestExpenseDebt_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--RevolverLoanMember_zm8vdAjs33X5" title="Interest expense">339,691</span> for the six months ended June 30, 2023 and 2022, respectively. Amortization of loan origination expenses of $<span id="xdx_905_eus-gaap--AmortizationOfFinancingCosts_pp0p0_c20230401__20230630_z1bMPjPMtpZ8" title="Amortization of loan origination expenses">11,814</span> and $<span id="xdx_909_eus-gaap--AmortizationOfFinancingCosts_pp0p0_c20220401__20220630_zBhHPrJZ6ENg" title="Amortization of loan origination expenses">6,591</span> are included as part of interest expense for the three months ended June 30, 2023 and 2022, respectively. Amortization of loan origination expenses of $<span id="xdx_906_eus-gaap--AmortizationOfFinancingCosts_pp0p0_c20230101__20230630_zmftCNbvFVVa" title="Amortization of loan origination expenses">20,726</span> and $<span id="xdx_903_eus-gaap--AmortizationOfFinancingCosts_pp0p0_c20220101__20220630_zKzqEzzFicpb" title="Amortization of loan origination expenses">12,557</span>, 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 $<span id="xdx_907_ecustom--OriginationExpenses_c20230401__20230630_zUxoIxbN5V4e" title="Origination expenses">2,903</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Snail Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_893_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_z6JWO1N1A8M1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table provides future minimum payments of its long-term debt as of December 31:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zLqJNTeOOlUe" style="display: none">SCHEDULE OF FUTURE MINIMUM PAYMENTS OF LONG TERM DEBT</span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Years ending December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20221231_zMySLDFoNRg4" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_maLTDzCpa_zEpQ6gaE5Ds5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 78%">Remainder of 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">8,540,007</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzCpa_zAiX1efUoSPh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">499,414</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzCpa_zzpWrkZiWnfb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">86,013</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLTDzCpa_z7ice6qzNy79" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">89,115</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLTDzCpa_zC7wU0u2cxc5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,329</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive_iI_maLTDzCpa_zNhPCrgSqy1f" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; text-align: left">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,455,092</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebt_iTI_mtLTDzCpa_z8Uh4NVU8mhd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Long term debt</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,761,970</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_z4TTW3lP6y9b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_895_eus-gaap--ScheduleOfDebtTableTextBlock_z6itEMlJqgE" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_ztFXRh7puOic" style="display: none">SCHEDULE OF LONG TERM DEBT</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="color: Black"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20230630_z3mo2kfI7wll" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">June 30, 2023</td><td style="color: Black; font-weight: bold"> </td><td style="color: Black; font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20221231_zGrbWwYAB75f" style="border-bottom: Black 1.5pt solid; color: Black; font-weight: bold; text-align: center">December 31, 2022</td><td style="color: Black; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zYz2YutlWbx2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 0pt; padding-left: 0pt; width: 60%; color: Black; font-weight: bold; text-align: justify">2021 Revolving Loan - <span style="font-style: normal; font-weight: normal">On June 21, 2023, the Company amended its revolving loan agreement (“amended revolver”) and decreased the maximum balance to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_z89rHCzrxS1k">6,000,000</span></span><span style="font-style: normal; font-weight: normal">. The amended revolver matures on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zi9OFyACNvIk">December 31, 2023</span></span> <span style="font-style: normal; font-weight: normal">and has an annual interest rate equal to the prime rate less <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_ecustom--DebtInstrumentBasisSpreadOnVariableRateLess_pid_dp_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zv61LBHWwz5j" title="Annual interest rate">0.25</span></span><span style="font-style: normal; font-weight: normal">%. At June 30, 2023, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20230630__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zBAiXI4dvJ9k">8.00</span></span><span style="font-style: normal; font-weight: normal">%. 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_pp1d_c20220101__20221231__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zRLnMHib80p7">1.5 to 1</span></span><span style="font-style: normal; font-weight: normal">. The debt service covenant was temporarily lifted as part of the revolving loan amendment for the twelve month period ended June 30, 2023.</span></td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 16%; color: Black; text-align: right">6,000,000</td><td style="width: 1%; color: Black; text-align: left"> </td><td style="width: 2%; color: Black"> </td> <td style="width: 1%; color: Black; text-align: left">$</td><td style="width: 16%; color: Black; text-align: right">9,000,000</td><td style="width: 1%; color: Black; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zSpgfFxIkhK8" style="vertical-align: bottom; background-color: White"> <td style="text-indent: 0pt; padding-left: 0pt; color: Black; text-align: justify"><b>2021 Promissory Note</b> - <span style="font-style: normal; font-weight: normal">On June 17, 2021, the Company amended its loan agreement to reduce the principal amount with financial institution for <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--DebtInstrumentTerm_dtY_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zwpG1se5iUEh">10 </span></span><span style="font-style: normal; font-weight: normal">years, annual interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_znAS9h3Jnuye">3.5</span></span><span style="font-style: normal; font-weight: normal">% for the first <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_ecustom--DebtInstrumentInterestRateStatedPercentagePeriod_pid_dtY_c20210617__20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zS8TArvQmc7h">5 </span></span><span style="font-style: normal; font-weight: normal">years, and then floating at Wall Street Journal rate from years <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentDescriptionOfVariableRateBasis_c20210617__20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zauMMYckyK44">6 to 10</span></span><span style="font-style: normal; font-weight: normal">, the loan is secured by the Company’s building and matures on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zy2UWsOXkzjh">June 30, 2031</span></span><span style="font-style: normal; font-weight: normal">. 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_z9MZBJ79Qv5d">1.5 to 1</span></span>. 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.</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,845,303</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,891,820</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zTzF9c2KGkZd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 0pt; padding-left: 0pt; color: Black; font-weight: bold; text-align: justify">2022 Short Term Note - <span style="font-style: normal; font-weight: normal">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 $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_eus-gaap--PaymentsForLoans_pp0p0_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z73cqIRna4T1" title="Principal payment of loan">10,000,000</span> which was originally set to mature on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentMaturityDate_pp0p0_dd_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zGfA8svh9ui4" title="Debt instrument maturity date">January 26, 2023</span>. Interest shall be equal to the higher of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_902_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zELebyztzgE6" title="Annual interest rate, basis spread">3.75</span>% or the Wall Street Journal Prime Rate plus <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_z4LF9kCFf5Ua" title="Debt instrument basis spread on variable rate">0.50</span>%. 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_ecustom--DebtInstrumentDefaultInterestRate_iI_pid_dp_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zlZXcmFOLa29" title="Default interest rate">5</span>% over the note rate. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_909_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z5TFlVH7OhFj" title="Debt service coverage ratio">1.5 to 1</span> 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 <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90F_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_c20221101__20221130__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_zRKDyXhEpHKl" title="Debt instrument basis spread on variable rate">0.25</span>%, or <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20221130__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zysoiHXh1f9g" title="Debt instrument interest rate stated percentage">5.75</span>%. At June 30, 2023, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20230630_zyT83nBpOqsj" title="Interest rate">8.00</span>%.</span></td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">2,916,667</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">5,833,333</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_zdpD0NraJv7g" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-indent: -0.1in; padding-left: 0.1in">Total</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">11,761,970</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">17,725,153</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CurrentPortionOfPromissoryNote_iI_z0Ny2BllWEf9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Less: current portion of promissory note</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">2,845,303</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">86,524</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--RevolvingLoanPayableCurrent_iI_z2KHLs51iehl" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Less: revolving loan</td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">6,000,000</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="color: Black; text-align: left"> </td><td style="color: Black; text-align: right">9,000,000</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--ShortTermBorrowings_iI_zjCR04jxGNQh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Less: current portion of short term note</td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">2,916,667</td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="border-bottom: Black 1.5pt solid; color: Black; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; color: Black; text-align: right">5,416,666</td><td style="color: Black; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtNoncurrent_iI_z2qPxHuFoYpa" style="vertical-align: bottom; background-color: White"> <td style="color: Black; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Total long-term debt</td><td style="color: Black"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1905">-</span></td><td style="color: Black; text-align: left"> </td><td style="color: Black"> </td> <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">3,221,963</td><td style="color: Black; text-align: left"> </td></tr> </table> 6000000 2023-12-31 0.0025 0.0800 1.5 to 1 6000000 9000000 P10Y 0.035 P5Y 6 to 10 2031-06-30 1.5 to 1 2845303 2891820 10000000 2023-01-26 0.0375 0.0050 0.05 1.5 to 1 0.0025 0.0575 0.0800 2916667 5833333 11761970 17725153 2845303 86524 6000000 9000000 2916667 5416666 3221963 294749 179602 588994 339691 11814 6591 20726 12557 2903 <p id="xdx_893_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_z6JWO1N1A8M1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table provides future minimum payments of its long-term debt as of December 31:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zLqJNTeOOlUe" style="display: none">SCHEDULE OF FUTURE MINIMUM PAYMENTS OF LONG TERM DEBT</span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Years ending December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20221231_zMySLDFoNRg4" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_maLTDzCpa_zEpQ6gaE5Ds5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 78%">Remainder of 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">8,540,007</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzCpa_zAiX1efUoSPh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">499,414</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzCpa_zzpWrkZiWnfb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">86,013</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLTDzCpa_z7ice6qzNy79" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">89,115</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLTDzCpa_zC7wU0u2cxc5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,329</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive_iI_maLTDzCpa_zNhPCrgSqy1f" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; text-align: left">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,455,092</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebt_iTI_mtLTDzCpa_z8Uh4NVU8mhd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Long term debt</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,761,970</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 8540007 499414 86013 89115 92329 2455092 11761970 <p id="xdx_805_eus-gaap--IncomeTaxDisclosureTextBlock_zGGgBG4IWm06" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 16 – <span id="xdx_826_znzy2zUkVp0a">INCOME TAXES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognized an income tax benefit of $<span id="xdx_904_eus-gaap--IncomeTaxExpenseBenefit_iN_pp0p0_di_c20230401__20230630_z0FA9lTjl5W6" title="Income tax expense (benefit)">1,081,887</span> and $<span id="xdx_901_eus-gaap--IncomeTaxExpenseBenefit_iN_pp0p0_di_c20220401__20220630_z0aV1Mkc57Dk" title="Income tax expense (benefit)">327,347</span> for the three months ended June 30, 2023 and 2022, respectively. The income tax benefit of $<span id="xdx_90E_eus-gaap--IncomeTaxExpenseBenefit_iN_pp0p0_di_c20230101__20230630_zq23Wbh8IIOc" title="Income tax expense (benefit)">1,887,705</span> and income tax expense of $<span id="xdx_901_eus-gaap--IncomeTaxExpenseBenefit_pp0p0_c20220101__20220630_zNCkpCU45aK" title="Income tax expense (benefit)">1,202,303</span> for the six months ended June 30, 2023 and 2022, reflects an effective tax rate of <span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_pid_dp_uPure_c20230101__20230630_zKDaKjBJxHm2">21</span>% and <span id="xdx_906_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_pid_dp_uPure_c20220101__20220630_zZwdHUjLC6fa">20</span>%, respectively. As of June 30, 2023 the Company’s effective tax rate did not differ from the federal statutory rate of <span id="xdx_90C_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_c20230101__20230630_zLz9AEzlFYh1" title="Federal statutory income tax rate">21</span>%.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Snail Inc. and Subsidiaries</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> </p> -1081887 -327347 -1887705 1202303 0.21 0.20 0.21 <p id="xdx_80B_eus-gaap--LesseeOperatingLeasesTextBlock_zvW0MmWixkyc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0in"><b>NOTE 17 – <span id="xdx_824_z9hTMxqalxc">OPERATING LEASE RIGHT-OF-USE ASSETS</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_901_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20180430__us-gaap--DebtInstrumentAxis__us-gaap--StandbyLettersOfCreditMember_zASMxOnJ07j9" title="Maximum borrowing capacity">1,075,000</span> to lease office space. The standby letter of credit was valid for a <span id="xdx_90F_eus-gaap--DebtInstrumentTerm_dxL_c20180401__20180430__us-gaap--DebtInstrumentAxis__us-gaap--StandbyLettersOfCreditMember_zT7XAwzD53ve" title="Debt term::XDX::P1Y"><span style="-sec-ix-hidden: xdx2ixbrl1960">one-year</span></span> 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 $<span id="xdx_90E_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20230630__us-gaap--DebtInstrumentAxis__us-gaap--StandbyLettersOfCreditMember_z5Nlg9eV4Nhb" title="Operating lease right-of-use assets">3,032,069</span> and $<span id="xdx_906_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_c20221231__us-gaap--DebtInstrumentAxis__us-gaap--StandbyLettersOfCreditMember_z4qpA0r6AxOk" title="Operating lease right-of-use assets">3,606,398</span>, respectively. The Company had variable lease payments of approximately $<span id="xdx_90C_eus-gaap--VariableLeasePayment_pp0p0_c20230401__20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_z4n8AUwkd0Z5" title="Variable lease payments">15,295</span> and $<span id="xdx_90C_eus-gaap--VariableLeasePayment_pp0p0_c20220401__20220630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zO8UMQ4dVrj3" title="Variable lease payments">8,684</span> during the three months ended June 30, 2023 and 2022, respectively. Variable lease payments were $<span id="xdx_90C_eus-gaap--VariableLeasePayment_pp0p0_c20230101__20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zb971vFDOPl6" title="Variable lease payments">39,805</span> and $<span id="xdx_900_eus-gaap--VariableLeasePayment_pp0p0_c20220101__20220630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zOR3VIXTzUki" title="Variable lease payments">27,017</span> 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 $<span id="xdx_904_eus-gaap--GainLossOnTerminationOfLease_c20220101__20220630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zM8wGPZOCMCk">122,533</span>. 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:</span></p> <p id="xdx_896_ecustom--ScheduleOfOperatingLeaseTerminationTableTextBlock_zvouvmbMz0Bd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span style="display: none"><span id="xdx_8BC_zRZoNJgl0UYg">SCHEDULE OF <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">TERMINATIONS OPERATING LEASE</span> </span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Right of</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accumulated</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease Liability</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain on</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use Asset</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amortization</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Long Term</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Termination</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 35%; text-align: left; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease Terminations</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_980_eus-gaap--OperatingLeaseRightOfUseAsset_iNI_di_c20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zvBr8XsbwPMh" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,301,571</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_98F_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_c20230101__20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_z2Nly2kX8t0f" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">907,370</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_984_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zcCUb3xEz3T4" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">442,704</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_984_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_z27yi6q0LSrl" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">74,030</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_987_eus-gaap--GainLossOnTerminationOfLease_c20230101__20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zdCbeVGBBlv" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">122,533</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p id="xdx_8A4_zWn9HrY8ZaF6" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_898_eus-gaap--LeaseCostTableTextBlock_zDpmgSPSiG6g" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span style="display: none"><span id="xdx_8B6_zMB6llAp2ab8">SCHEDULE OF OPERATING LEASE COSTS</span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230401__20230630_zZ817XN9xqzc" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220401__20220630_z2wISimPthxf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230101__20230630_zk0hSVlCMOrh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20220101__20220630_zhWqevUti434" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseCost_zA6V9CTTDb7i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; text-align: left">Operating lease costs</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">381,300</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">424,098</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">778,862</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">815,958</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ShortTermLeaseCost_zqZBthkjKrd3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Short term lease costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1989">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1990">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1991">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1992">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LeaseCost_z4SLRR9K4Udc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total operating lease costs</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">381,300</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">424,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">778,862</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">815,958</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p id="xdx_8A8_zIa1ouOVTLQ7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89B_ecustom--LesseeOperatingLeaseSupplementalBalanceSheetInformationTableTextBlock_zvCOnAzNMmTh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplemental information related to operating leases for lease liabilities as of June 30, 2023 and June 30, 2022 is as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zHwbfYtMl1ba" style="display: none">SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Cash paid for amounts included in the measurement of lease liabilities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20230101__20230630_zJtV9J96LNT7" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">770,508</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20220101__20220630_z4BV3DFo6ZIk" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">747,474</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--LesseeOperatingLeaseRemainingLeaseTerm_iI_dtY_c20230630_zxQi3jmTEAxc" title="Weighted average remaining lease term">2.4</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--LesseeOperatingLeaseRemainingLeaseTerm_iI_dtY_c20220630_zG1MJYJZWGAl" title="Weighted average remaining lease term">3.4</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_uPure_c20230630_z4HdHoYydRqa" title="Weighted average discount rate">5.00</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_uPure_c20220630_zfsUVXmznCad" title="Weighted average discount rate">5.00</span></td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8A7_z2rei9Vh7Irf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_896_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z3pSNHToqCn7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B1_zw3gXXbxNVv8" style="display: none">SCHEDULE OF FUTURE UNDISCOUNTED LEASE PAYMENTS FOR OPERATING LEASES AND RECONCILIATION OF THESE PAYMENTS TO OUR OPERATING LEASE LIABILITIES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Future lease payments</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Imputed Interest</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Lease Liabilities</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold; font-style: italic">Years ending December 31,</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 46%">Remainder of 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_c20230630_zjCJcZvtwbU4" style="width: 14%; text-align: right" title="Remainder of 2023, Future lease payments">778,382</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountRemainderOfYearOne_iI_c20230630_zwFUCgYqxeFe" style="width: 14%; text-align: right" title="Remainder of 2023, Imputed Interest">80,306</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetRemainderOfYearOne_iI_c20230630_zloyj9pTsGM8" style="width: 14%; text-align: right" title="Remainder of 2023, Lease Liabilities">698,076</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20230630_zUJkW9x20W9l" style="text-align: right" title="2024, Future lease payments">1,610,844</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearTwo_iI_c20230630_zJMQzWEWtfwh" style="text-align: right" title="2024, Imputed Interest">105,810</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearTwo_iI_c20230630_zDgeOBJchBtf" style="text-align: right" title="2024, Lease Liabilities">1,505,034</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20230630_zGuiWBzFExz1" style="text-align: right" title="2025, Future lease payments">1,453,785</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearThree_iI_c20230630_zWTeIz5TUdH2" style="text-align: right" title="2025, Imputed Interest">28,290</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearThree_iI_c20230630_zj7BzW6cKiZj" style="text-align: right" title="2025, Lease Liabilities">1,425,495</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueYearAfterTwo_iI_c20230630_zrAsn5LEsAy2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Thereafter, Future lease payments"><span style="-sec-ix-hidden: xdx2ixbrl2033">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearAfterFour_iI_c20230630_zfmvMOPeJYVb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Thereafter, Imputed Interest"><span style="-sec-ix-hidden: xdx2ixbrl2035">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearAfterFour_iI_c20230630_zOLwpMlapMXf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Thereafter, Lease Liabilities"><span style="-sec-ix-hidden: xdx2ixbrl2037">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total future lease payments</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_c20230630_zrSuTe9jRyJf" style="border-bottom: Black 2.5pt double; text-align: right" title="Total future lease payments">3,843,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20230630_znBhgSuzBigi" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Imputed Interest">214,406</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiability_iI_c20230630_zA6sY0F6cNgk" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Lease Liabilities">3,628,605</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AF_zc6ZWOb6GYK5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 1075000 3032069 3606398 15295 8684 39805 27017 122533 <p id="xdx_896_ecustom--ScheduleOfOperatingLeaseTerminationTableTextBlock_zvouvmbMz0Bd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span style="display: none"><span id="xdx_8BC_zRZoNJgl0UYg">SCHEDULE OF <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">TERMINATIONS OPERATING LEASE</span> </span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Right of</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accumulated</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease Liability</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain on</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use Asset</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amortization</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Long Term</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Termination</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 35%; text-align: left; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease Terminations</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_980_eus-gaap--OperatingLeaseRightOfUseAsset_iNI_di_c20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zvBr8XsbwPMh" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,301,571</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_98F_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_c20230101__20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_z2Nly2kX8t0f" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">907,370</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_984_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zcCUb3xEz3T4" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">442,704</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_984_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_z27yi6q0LSrl" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">74,030</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_987_eus-gaap--GainLossOnTerminationOfLease_c20230101__20230630__us-gaap--LeaseContractualTermAxis__custom--LeaseTerminatedAndExpiredMember_zdCbeVGBBlv" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">122,533</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> 1301571 907370 442704 74030 122533 <p id="xdx_898_eus-gaap--LeaseCostTableTextBlock_zDpmgSPSiG6g" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span style="display: none"><span id="xdx_8B6_zMB6llAp2ab8">SCHEDULE OF OPERATING LEASE COSTS</span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230401__20230630_zZ817XN9xqzc" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220401__20220630_z2wISimPthxf" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230101__20230630_zk0hSVlCMOrh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20220101__20220630_zhWqevUti434" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the three months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseCost_zA6V9CTTDb7i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; text-align: left">Operating lease costs</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">381,300</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">424,098</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">778,862</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">815,958</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ShortTermLeaseCost_zqZBthkjKrd3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Short term lease costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1989">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1990">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1991">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1992">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LeaseCost_z4SLRR9K4Udc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total operating lease costs</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">381,300</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">424,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">778,862</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">815,958</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> 381300 424098 778862 815958 381300 424098 778862 815958 <p id="xdx_89B_ecustom--LesseeOperatingLeaseSupplementalBalanceSheetInformationTableTextBlock_zvCOnAzNMmTh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplemental information related to operating leases for lease liabilities as of June 30, 2023 and June 30, 2022 is as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zHwbfYtMl1ba" style="display: none">SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Cash paid for amounts included in the measurement of lease liabilities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20230101__20230630_zJtV9J96LNT7" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">770,508</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20220101__20220630_z4BV3DFo6ZIk" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">747,474</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--LesseeOperatingLeaseRemainingLeaseTerm_iI_dtY_c20230630_zxQi3jmTEAxc" title="Weighted average remaining lease term">2.4</span> years</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_eus-gaap--LesseeOperatingLeaseRemainingLeaseTerm_iI_dtY_c20220630_zG1MJYJZWGAl" title="Weighted average remaining lease term">3.4</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_uPure_c20230630_z4HdHoYydRqa" title="Weighted average discount rate">5.00</span></td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_uPure_c20220630_zfsUVXmznCad" title="Weighted average discount rate">5.00</span></td><td style="text-align: left">%</td></tr> </table> 770508 747474 P2Y4M24D P3Y4M24D 5.00 5.00 <p id="xdx_896_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z3pSNHToqCn7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B1_zw3gXXbxNVv8" style="display: none">SCHEDULE OF FUTURE UNDISCOUNTED LEASE PAYMENTS FOR OPERATING LEASES AND RECONCILIATION OF THESE PAYMENTS TO OUR OPERATING LEASE LIABILITIES</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Future lease payments</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Imputed Interest</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Lease Liabilities</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold; font-style: italic">Years ending December 31,</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 46%">Remainder of 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_c20230630_zjCJcZvtwbU4" style="width: 14%; text-align: right" title="Remainder of 2023, Future lease payments">778,382</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountRemainderOfYearOne_iI_c20230630_zwFUCgYqxeFe" style="width: 14%; text-align: right" title="Remainder of 2023, Imputed Interest">80,306</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetRemainderOfYearOne_iI_c20230630_zloyj9pTsGM8" style="width: 14%; text-align: right" title="Remainder of 2023, Lease Liabilities">698,076</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20230630_zUJkW9x20W9l" style="text-align: right" title="2024, Future lease payments">1,610,844</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearTwo_iI_c20230630_zJMQzWEWtfwh" style="text-align: right" title="2024, Imputed Interest">105,810</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearTwo_iI_c20230630_zDgeOBJchBtf" style="text-align: right" title="2024, Lease Liabilities">1,505,034</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20230630_zGuiWBzFExz1" style="text-align: right" title="2025, Future lease payments">1,453,785</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearThree_iI_c20230630_zWTeIz5TUdH2" style="text-align: right" title="2025, Imputed Interest">28,290</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearThree_iI_c20230630_zj7BzW6cKiZj" style="text-align: right" title="2025, Lease Liabilities">1,425,495</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueYearAfterTwo_iI_c20230630_zrAsn5LEsAy2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Thereafter, Future lease payments"><span style="-sec-ix-hidden: xdx2ixbrl2033">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearAfterFour_iI_c20230630_zfmvMOPeJYVb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Thereafter, Imputed Interest"><span style="-sec-ix-hidden: xdx2ixbrl2035">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearAfterFour_iI_c20230630_zOLwpMlapMXf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Thereafter, Lease Liabilities"><span style="-sec-ix-hidden: xdx2ixbrl2037">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total future lease payments</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_c20230630_zrSuTe9jRyJf" style="border-bottom: Black 2.5pt double; text-align: right" title="Total future lease payments">3,843,011</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20230630_znBhgSuzBigi" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Imputed Interest">214,406</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiability_iI_c20230630_zA6sY0F6cNgk" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Lease Liabilities">3,628,605</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 778382 80306 698076 1610844 105810 1505034 1453785 28290 1425495 3843011 214406 3628605 <p id="xdx_804_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_z4GXjcVo7CUc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0in"><b>NOTE 18 – <span id="xdx_82B_zsJbHLiWVdLl">COMMITMENTS AND CONTINGENCIES</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; color: #2F5496; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0in"><b>Litigation</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <i>Myth of Empires</i>, 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 <i>ARK: Survival Evolved</i> and used it to develop the game <i>Myth of Empires</i>. The DCMA Takedown Notice requested that Steam cease distributing <i>Myth of Empires</i> and remove the game from the Steam platform. Steam complied with the DCMA Takedown Notice and removed <i>Myth of Empires</i> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Snail Inc. and Subsidiaries</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <i>Myth of Empires</i> 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 <i>ARK: Survival Evolved </i>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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <i>ARK: Survival Evolved</i> 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 $<span id="xdx_90C_eus-gaap--LitigationSettlementExpense_pn5n6_c20230227__20230227_zWJic6J8PCs2" title="Amount of bond to support an award of costs and fees">3.0</span> 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 $<span id="xdx_90A_eus-gaap--LitigationSettlementAmountAwardedFromOtherParty_c20230101__20230630_zuJsSVPgY7Ul" title="Amount of bond">750,000</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_90B_eus-gaap--LossContingencyDamagesAwardedValue_pn6n6_c20230313__20230314_zSbi6XsMyDwj" title="Damages value">3</span> 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 $<span id="xdx_903_eus-gaap--SecurityDeposit_iI_c20230314_z6ker3zdgtF1" title="Security deposit">130,000</span> security deposit. The landlord has answered and denied the allegations of the cross-complaint. The Company intends to vigorously defend against the claims asserted.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Snail Inc. and Subsidiaries</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> </p> 3000000.0 750000 3000000 130000 <p id="xdx_80C_eus-gaap--EarningsPerShareTextBlock_z40493ibX3Ul" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 19 – <span id="xdx_82D_zL7U6iCHdmZ">EARNINGS (LOSS) PER SHARE</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_899_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zFSkKvPQM4Sc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BC_zl9M32TUagB8" style="display: none">SCHEDULE OF EARNINGS PER SHARE</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_49D_20230401__20230630_zXekMErRdpwb" style="font: 10pt Times New Roman, Times, Serif; text-align: right">1<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_49D_20220401__20220630_zb1VlrUl9Fs8" style="font: 10pt Times New Roman, Times, Serif; text-align: right">2<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_490_20230101__20230630_zg8CRA1jfBAe" style="font: 10pt Times New Roman, Times, Serif; text-align: right">3<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_490_20220101__20220630_z0mqjfAXIZd5" style="font: 10pt Times New Roman, Times, Serif; text-align: right">4<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three months ended <br/> June 30,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the six months ended <br/> June 30,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareBasicAbstract_iB_zXyh3Lrjl1dc" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic Earnings Per Share:</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zLHTphwPkBab" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; width: 40%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) income attributable to Class A common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(879,665</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,054,297</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,522,005</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,756,760</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zT5rhHqvec2j" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) attributable to Class B common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2070">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2072">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zniUIcxsBtk2" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net income (loss) attributable to common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2075">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2077">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_z6ghRLuRgzx6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total net (loss) income attributable to Snail Inc and Snail Games USA Inc.</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4,079,431</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,054,297</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7,050,809</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,756,760</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zS2GzRhQq4m3" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,901,145</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,914,096</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_ziJ8m85IGxu2" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class B weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2090">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2092">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z1geOWcoWOFh" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2095">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2097">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareBasic_zfAMivo4OYR7" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A and B basic earnings per share</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.11</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.03</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.19</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.14</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_404_eus-gaap--EarningsPerShareDilutedAbstract_iB_zNQhw9eluWoj" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted Earnings Per Share:</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zeL2UdAthETh" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) income attributable to Class A common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(879,665</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,054,297</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,522,005</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,756,760</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zqHEXEaf4tta" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) attributable to Class B common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2115">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2117">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zLX47VYzxGZi" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net income (loss) attributable to common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2120">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2122">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_408_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zK54FEyuDfkf" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,901,145</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,914,096</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_401_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zciA3qcpFY76" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilutive effects of common stock equivalents</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2129">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2130">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2131">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2132">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zg6OoGxTn7Ek" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A weighted average shares outstanding - diluted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,901,145</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,914,096</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z44YMSZCU4z9" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class B weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2140">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2142">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_405_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zPN404YiHxqd" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2145">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2147">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zqsVvRUdwcqh" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilutive effects of common stock equivalents</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2149">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2150">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2151">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2152">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zLPKjM8mcdo6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class B weighted average shares outstanding - diluted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2155">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2157">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zNs0Pq2lsYa2" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted average shares outstanding - diluted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2160">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2162">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_405_eus-gaap--EarningsPerShareDiluted_z62oTKm7vpw3" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted (loss) earnings per Class A and B share</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.11</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.03</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.19</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.14</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> </table> <p id="xdx_8AC_zXEanIFvHZlk" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_899_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zFSkKvPQM4Sc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BC_zl9M32TUagB8" style="display: none">SCHEDULE OF EARNINGS PER SHARE</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_49D_20230401__20230630_zXekMErRdpwb" style="font: 10pt Times New Roman, Times, Serif; text-align: right">1<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_49D_20220401__20220630_zb1VlrUl9Fs8" style="font: 10pt Times New Roman, Times, Serif; text-align: right">2<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_490_20230101__20230630_zg8CRA1jfBAe" style="font: 10pt Times New Roman, Times, Serif; text-align: right">3<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_490_20220101__20220630_z0mqjfAXIZd5" style="font: 10pt Times New Roman, Times, Serif; text-align: right">4<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the three months ended <br/> June 30,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the six months ended <br/> June 30,</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareBasicAbstract_iB_zXyh3Lrjl1dc" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic Earnings Per Share:</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zLHTphwPkBab" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; width: 40%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) income attributable to Class A common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(879,665</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,054,297</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,522,005</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,756,760</span></td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zT5rhHqvec2j" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) attributable to Class B common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2070">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2072">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zniUIcxsBtk2" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net income (loss) attributable to common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2075">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2077">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_z6ghRLuRgzx6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total net (loss) income attributable to Snail Inc and Snail Games USA Inc.</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4,079,431</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,054,297</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7,050,809</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,756,760</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zS2GzRhQq4m3" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,901,145</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,914,096</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_ziJ8m85IGxu2" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class B weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2090">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2092">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z1geOWcoWOFh" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2095">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2097">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareBasic_zfAMivo4OYR7" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A and B basic earnings per share</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.11</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.03</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.19</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.14</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_404_eus-gaap--EarningsPerShareDilutedAbstract_iB_zNQhw9eluWoj" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted Earnings Per Share:</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zeL2UdAthETh" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) income attributable to Class A common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(879,665</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,054,297</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,522,005</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,756,760</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zqHEXEaf4tta" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net (loss) attributable to Class B common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2115">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2117">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zLX47VYzxGZi" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net income (loss) attributable to common stockholders</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,199,766</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2120">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,528,804</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2122">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_408_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zK54FEyuDfkf" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,901,145</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,914,096</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_401_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zciA3qcpFY76" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilutive effects of common stock equivalents</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2129">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2130">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2131">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2132">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40F_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zg6OoGxTn7Ek" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A weighted average shares outstanding - diluted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,901,145</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,914,096</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,000,000</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z44YMSZCU4z9" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class B weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2140">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2142">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_405_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zPN404YiHxqd" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted average shares outstanding - basic</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2145">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2147">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_407_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zqsVvRUdwcqh" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilutive effects of common stock equivalents</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2149">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2150">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2151">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2152">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zLPKjM8mcdo6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class B weighted average shares outstanding - diluted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2155">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2157">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zNs0Pq2lsYa2" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted average shares outstanding - diluted</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2160">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28,748,580</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl2162">-</span></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr id="xdx_405_eus-gaap--EarningsPerShareDiluted_z62oTKm7vpw3" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted (loss) earnings per Class A and B share</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.11</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.03</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.19</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.14</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> </table> -879665 -1054297 -1522005 4756760 -3199766 -5528804 -3199766 -5528804 -4079431 -1054297 -7050809 4756760 7901145 35000000 7914096 35000000 28748580 28748580 28748580 28748580 -0.11 -0.03 -0.19 0.14 -879665 -1054297 -1522005 4756760 -3199766 -5528804 -3199766 -5528804 7901145 35000000 7914096 35000000 7901145 35000000 7914096 35000000 28748580 28748580 28748580 28748580 28748580 28748580 28748580 28748580 -0.11 -0.03 -0.19 0.14 <p id="xdx_80A_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_ziz0ADS6AnOa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 20 – <span id="xdx_824_zN1brhdv106c">EQUITY</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has authorized <span id="xdx_905_ecustom--NumberOfClassesOfCommonStock_dc_uInteger_c20230101__20230630_z6ixKpJod3of" title="Number of classes of common stock">two</span> 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 <span id="xdx_908_ecustom--NumberOfVotesEntitledPerEachShare_dc_uInteger_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zzDMtkzxHKsf" title="Number of votes per share">one</span> vote. Each share of Class B common stock will be entitled to <span id="xdx_908_ecustom--NumberOfVotesEntitledPerEachShare_dc_uInteger_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z0N6FCCpwmnh" title="Number of votes per share">ten</span> votes and will be convertible into <span id="xdx_901_ecustom--NumberPrimarySharesIssuableUponConversion_dc_uInteger_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zGpRSTJRj0E6" title="Number of Class A share issuable upon conversion">one</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90D_ecustom--NumberOfClassesOfCommonStock_dc_uShares_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zGfKGPc96aV5" title="Number of shares of common stock issued as per agreement">3,000,000</span> shares of Class A common stock (the “Firm Shares”) at a purchase price of $<span id="xdx_906_eus-gaap--SaleOfStockPricePerShare_iI_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z9DrBrs2GR34" title="Price per share">4.675 </span>per share to the Underwriters and granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_dc_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_z17OQmHpi2Oe" title="IPO, net of offering costs (in shares)">450,000</span> additional shares of Class A common stock (the “Option Shares”) at a purchase price of $<span id="xdx_908_eus-gaap--SaleOfStockPricePerShare_iI_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zFLDdaH7owUa" title="Price per share">4.675</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_909_ecustom--PercentageOfWarrantsIssuedToPurchaseCommonStock_pid_dcp_uPure_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--TypeOfArrangementAxis__custom--UnderwritingAgreementMember_z6HcTD95fEn5" title="Percentage of warrants issued">four</span> percent of the total number of shares of Class A common stock sold in the IPO, or<span id="xdx_907_ecustom--NumberOfWarrantsIssuedToPurchaseCommonStock_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--TypeOfArrangementAxis__custom--UnderwritingAgreementMember_zOVh0kevetH1" title="Number of warrants issued to purchase common stock"> 120,000 </span>shares of Class A common stock (the “Underwriters Warrants”). The Underwriters Warrants may be exercised at a price per share equal to <span id="xdx_90D_ecustom--ClassOfWarrantOrRightIssuePriceOfWarrantsOrRightsPercent_dp_uPure_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--SnailIncMember_ziQMKwGZUic1" title="Percent of issue price at IPO price">125</span>% of the IPO price, or $<span id="xdx_908_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--SnailIncMember_zxDcciRbqTCa" title="Issue price per share">6.25</span> per share. The Underwriters Warrants are exercisable, in whole or in part, commencing on November 9, 2022, and expiring on the <span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dxL_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--SnailIncMember_zSvqarVtHGF4" title="Warrants term::XDX::P3Y"><span style="-sec-ix-hidden: xdx2ixbrl2195">three</span></span>-year anniversary thereof. The Underwriters Warrants have not been exercised as of the filing of this Quarterly Report.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Snail Inc. and Subsidiaries</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90E_ecustom--WarrantsFairValueAssumptionsWeightedAverageExpectedVolatilityRate_dp_uPure_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--TypeOfArrangementAxis__custom--UnderwritingAgreementMember_zReeHYAwXd22" title="Weighted average expected volatility (in percent)">53</span>%, discount rate of <span id="xdx_903_ecustom--WarrantsFairValueAssumptionsDiscountRate_dp_uPure_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--TypeOfArrangementAxis__custom--UnderwritingAgreementMember_zmSB3JtSU2F6" title="Discount rate (in percent)">4.49</span>% and remaining term of <span id="xdx_903_ecustom--WarrantsFairValueAssumptionsTerm_dtY_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--TypeOfArrangementAxis__custom--UnderwritingAgreementMember_zbMzUbD8wkM4" title="Remaining term (in years)">3</span> years.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company allocates all the issuance costs to the firm shares as a reduction of proceeds.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Restricted Stock Units (“RSUs”)</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">RSUs granted to directors vest based on the directors’ continued employment with us through each applicable vest date, which is generally over <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20230101__20230630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zUvJ79PnUC3l" title="Vesting period">one year</span>. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"></p><p id="xdx_89F_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__srt--DirectorMember_zKcaBwZglq85" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Restricted</p> <p style="margin-top: 0; margin-bottom: 0">Stock Units</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-Average</p> <p style="margin-top: 0; margin-bottom: 0">Grant-Date Fair Values</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Outstanding as of January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQwGZNo0uCN5" style="width: 16%; text-align: right" title="Outstanding, beginning balance">24,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvOspORvKZI1" style="width: 16%; text-align: right" title="Outstanding, beginning balance per share">5.00</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUm8GGkfLyQ7" style="text-align: right" title="Outstanding granted"><span style="-sec-ix-hidden: xdx2ixbrl2211">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zaoM1Tck0oa7" style="text-align: right" title="Outstanding granted per share"><span style="-sec-ix-hidden: xdx2ixbrl2213">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zGUCjlMi735j" style="text-align: right" title="Outstanding vested"><span style="-sec-ix-hidden: xdx2ixbrl2215">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zPmhG7fZ1SD8" style="text-align: right" title="Outstanding vested per share"><span style="-sec-ix-hidden: xdx2ixbrl2217">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Forfeited or cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zSvRn2ryMiG1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding forfeited or cancelled"><span style="-sec-ix-hidden: xdx2ixbrl2219">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zLq77JUEriO3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding forfeited or cancelled per share"><span style="-sec-ix-hidden: xdx2ixbrl2221">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Outstanding as of June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zxxhw8f3rZnk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, ending balance">24,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zCoQ3ksYfpB3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, ending balance per share">5.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_zO7wFaVFXCQb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dxL_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zjgfz4fCXHga" title="Vesting period::XDX::P5Y"><span style="-sec-ix-hidden: xdx2ixbrl2227">five</span></span> 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 <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dxL_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zK0LlS48Y3kj" title="Vesting period::XDX::P5Y"><span style="-sec-ix-hidden: xdx2ixbrl2229">5 years</span></span>, with awards cliff-vesting after each annual measurement period during the total aggregate measurement period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p id="xdx_89B_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__us-gaap--EmployeeStockMember_zDKfWZDenLw4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B5_zt6qs1XQ9B2c" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Restricted Stock</p> <p style="margin-top: 0; margin-bottom: 0">Units</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-Average</p> <p style="margin-top: 0; margin-bottom: 0">Grant-Date Fair Values</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Outstanding as of January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zOmzs9K9CRdc" style="width: 16%; text-align: right" title="Outstanding, beginning balance">1,197,552</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z71cvyoI3DK1" style="width: 16%; text-align: right" title="Outstanding, beginning balance per share">5.00</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z1BsMeH8fnoe" style="text-align: right" title="Outstanding, granted"><span style="-sec-ix-hidden: xdx2ixbrl2237">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zOUPRr7CctBa" style="text-align: right" title="Outstanding, granted per share"><span style="-sec-ix-hidden: xdx2ixbrl2239">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zH5aecp3gf7i" style="text-align: right" title="Outstanding, vested"><span style="-sec-ix-hidden: xdx2ixbrl2241">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zEOlBuaMB45l" style="text-align: right" title="Outstanding, vested per share"><span style="-sec-ix-hidden: xdx2ixbrl2243">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Forfeited or cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zPieKd2ajqad" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, forfeited or cancelled">(20,971</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zSqLeIPt9T9b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, forfeited or cancelled per share">5.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Outstanding as of June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zFuzpR09MvG5" style="border-bottom: Black 2.5pt double; text-align: right" title="Outstanding, ending balance">1,176,581</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zorQmK3QV0Oj" style="border-bottom: Black 2.5pt double; text-align: right" title="Outstanding, ending balance per share">5.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A5_z8KoTj5yepm4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>Snail Inc. and Subsidiaries</b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><b>Notes to Condensed Consolidated Financial Statements (Unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Repurchase Activity</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All share repurchases settled in the six months ended June 30, 2023 were open market transactions. As of June 30, 2023, <span id="xdx_90F_eus-gaap--TreasuryStockCommonShares_iI_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_z70oGNX5sCFa" title="Number of share repurchased">1,350,275</span> shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $<span id="xdx_905_eus-gaap--TreasuryStockCommonValue_iI_pn5n6_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zLBjbQCeY1O8" title="Aggregate purchase price">3.7</span> million. The average price paid per share was $<span id="xdx_902_eus-gaap--AcceleratedShareRepurchasesFinalPricePaidPerShare_c20230101__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_z5qORwd96goi" title="Average price paid per share">2.72</span> and approximately $<span id="xdx_903_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zMeXXzN5leO1" title="Aggregate purchase price">1.3</span> million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Stock-Based Compensation Expense</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock-based compensation expense resulting from RSUs and PSUs of $<span id="xdx_90A_eus-gaap--AllocatedShareBasedCompensationExpense_c20230401__20230630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zocjw3LaPof5" title="Stock based compensation">369,301</span> and $<span id="xdx_90A_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20230630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zweIuKIIoAVb" title="Stock based compensation">216,706</span> 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 $<span id="xdx_90E_ecustom--ShareBasedCompensationExpense_c20230401__20230630__srt--ProductOrServiceAxis__custom--ResearchAndDevelopmentMember_zHo8eXrlJYd5" title="Stock based compensation">16,064</span> and $<span id="xdx_900_ecustom--ShareBasedCompensationExpense_c20230101__20230630__srt--ProductOrServiceAxis__custom--ResearchAndDevelopmentMember_z0ZHheNHT724" title="Stock based compensation">0</span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three months ended June 30, 2023 and 2022, the Company recognized approximately $<span id="xdx_900_eus-gaap--EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense_c20230401__20230630_zNUDwalHAGX7" title="Deferred income tax benefit related to our stock-based compensation expense">50,801</span> and $<span id="xdx_907_eus-gaap--EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense_c20220401__20220630_zHwVnrSKJbtd" title="Deferred income tax benefit related to our stock-based compensation expense">0</span> 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 $<span id="xdx_903_eus-gaap--EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense_c20230101__20230630_zstG8be9AwY8" title="Deferred income tax benefit related to our stock-based compensation expense">82,877</span> and $<span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense_c20220101__20220630_z5QvR0aIPbV5" title="Deferred income tax benefit related to our stock-based compensation expense">0</span> respectively, of deferred income tax benefit related to our stock-based compensation expense.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2023, our total unrecognized compensation cost related to RSUs and PSUs was approximately $<span id="xdx_90A_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions_iI_pn5n6_c20230630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zEM78ZKrIeQ6" title="Total unrecognized compensation cost">1.6</span> million and is expected to be recognized over a weighted-average service period of <span id="xdx_900_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20230101__20230630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvMWC0smFoC3" title="Total unrecognized compensation cost expected to be recognized over a weighted-average service period">2.8</span> years.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 2 1 10 1 3000000 4.675 450000 4.675 4 120000 1.25 6.25 0.53 0.0449 P3Y P1Y <p id="xdx_89F_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__srt--DirectorMember_zKcaBwZglq85" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Restricted</p> <p style="margin-top: 0; margin-bottom: 0">Stock Units</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-Average</p> <p style="margin-top: 0; margin-bottom: 0">Grant-Date Fair Values</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Outstanding as of January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQwGZNo0uCN5" style="width: 16%; text-align: right" title="Outstanding, beginning balance">24,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvOspORvKZI1" style="width: 16%; text-align: right" title="Outstanding, beginning balance per share">5.00</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUm8GGkfLyQ7" style="text-align: right" title="Outstanding granted"><span style="-sec-ix-hidden: xdx2ixbrl2211">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zaoM1Tck0oa7" style="text-align: right" title="Outstanding granted per share"><span style="-sec-ix-hidden: xdx2ixbrl2213">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zGUCjlMi735j" style="text-align: right" title="Outstanding vested"><span style="-sec-ix-hidden: xdx2ixbrl2215">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zPmhG7fZ1SD8" style="text-align: right" title="Outstanding vested per share"><span style="-sec-ix-hidden: xdx2ixbrl2217">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Forfeited or cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zSvRn2ryMiG1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding forfeited or cancelled"><span style="-sec-ix-hidden: xdx2ixbrl2219">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zLq77JUEriO3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding forfeited or cancelled per share"><span style="-sec-ix-hidden: xdx2ixbrl2221">—</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Outstanding as of June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zxxhw8f3rZnk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, ending balance">24,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230630__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zCoQ3ksYfpB3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, ending balance per share">5.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> 24000 5.00 24000 5.00 <p id="xdx_89B_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__us-gaap--EmployeeStockMember_zDKfWZDenLw4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B5_zt6qs1XQ9B2c" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Restricted Stock</p> <p style="margin-top: 0; margin-bottom: 0">Units</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Weighted-Average</p> <p style="margin-top: 0; margin-bottom: 0">Grant-Date Fair Values</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Outstanding as of January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zOmzs9K9CRdc" style="width: 16%; text-align: right" title="Outstanding, beginning balance">1,197,552</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z71cvyoI3DK1" style="width: 16%; text-align: right" title="Outstanding, beginning balance per share">5.00</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z1BsMeH8fnoe" style="text-align: right" title="Outstanding, granted"><span style="-sec-ix-hidden: xdx2ixbrl2237">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zOUPRr7CctBa" style="text-align: right" title="Outstanding, granted per share"><span style="-sec-ix-hidden: xdx2ixbrl2239">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zH5aecp3gf7i" style="text-align: right" title="Outstanding, vested"><span style="-sec-ix-hidden: xdx2ixbrl2241">—</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zEOlBuaMB45l" style="text-align: right" title="Outstanding, vested per share"><span style="-sec-ix-hidden: xdx2ixbrl2243">—</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Forfeited or cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zPieKd2ajqad" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, forfeited or cancelled">(20,971</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zSqLeIPt9T9b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Outstanding, forfeited or cancelled per share">5.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Outstanding as of June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zFuzpR09MvG5" style="border-bottom: Black 2.5pt double; text-align: right" title="Outstanding, ending balance">1,176,581</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230630__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zorQmK3QV0Oj" style="border-bottom: Black 2.5pt double; text-align: right" title="Outstanding, ending balance per share">5.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1197552 5.00 20971 5.00 1176581 5.00 1350275 3700000 2.72 1300000 369301 216706 16064 0 50801 0 82877 0 1600000 P2Y9M18D <p id="xdx_80B_eus-gaap--SubsequentEventsTextBlock_z4TyNhnUSQG8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 21 – <span id="xdx_820_zHTwKH4VwzP1">SUBSEQUENT EVENTS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><span>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 <i>Ark: Survival Evolved </i>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 $<span id="xdx_90A_eus-gaap--PaymentsForPurchaseOfInvestmentOperatingActivity_c20230725__20230726__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--CooperationAgreementMember_zaESfxxna9Oh" title="Operating activity">4,046,932</span>, which includes the outstanding amount of $<span id="xdx_909_eus-gaap--LiabilitiesAverageAmountOutstanding_c20230725__20230726__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--CooperationAgreementMember_zq2iw4ulYKt4" title="Average amount outstanding">1,046,932</span> 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 $<span id="xdx_902_ecustom--FundsInCash_iI_c20230726__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--CooperationAgreementMember_zGfx7KmXbcy9" title="Funds in cash">3,000,000</span> without discount and free of bank charges and costs to the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 27, 2023, the Company entered into a distribution agreement with <span>its retail distribution partner</span> for the distribution of <i>ARK: Survival <span>Ascended</span></i> and <i>ARK II</i>. The initial term is two years and will renew each subsequent year unless cancelled. Upon executing the distribution <span>agreement, </span>the Company received $<span id="xdx_90F_eus-gaap--PrepaidRoyalties_iI_pn5n6_c20230727__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--DistributionAgreementMember_z35B9Z2FrpH3" title="Prepaid royalty">1.8</span> million as a prepaid royalty that will be reported as deferred revenue until the release of <i>ARK<span>: </span>Survival Ascended </i>and <i>ARK II</i>.</span></p> 4046932 1046932 3000000 1800000 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.