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10-K true 2024-12-31 --12-31 2024 false 001-41556 SNAIL, INC. DE 88-4146991 12049 Jefferson Blvd Culver City CA 90230 (310) 988-0643 Class A common stock, par value $0.0001 per share SNAL NASDAQ Non-accelerated Filer true true false false false false 6903794 0.0001 8465080 0.0001 28748580 Part III of this Annual Report on Form 10-K incorporates certain information by reference from the definitive proxy statement for the Registrant’s 2025 Annual Meeting of Stockholders to be filed within 120 days of the Registrant’s fiscal year ended December 31, 2024 (the “Proxy Statement”). Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K Cybersecurity Risk Management Due to the nature of our business, we face a variety of potential cybersecurity risks that are ever evolving and include unauthorized access to our systems and data, disruption of our online game services, theft of intellectual property, and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_904_ecyd--CybersecurityRiskManagementThirdPartyEngagedFlag_dbT_c20240101__20241231_z15sIvWfc4tc">third-party risks as a result of our use of various third party service providers and cloud service providers. The Company’s risks related to our end user data is borne by our platform partners as we do not maintain any sensitive information of our players within our infrastructure. There have been <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90D_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantFlag_dbF_c20240101__20241231_zsgaJlL17xY6">no cybersecurity threat events identified during the year ended December 31, 2024, which have resulted in a material incident, or are reasonably likely to result in a material impact on our business strategy, results of operations or financial condition. For more information regarding risks relating to intellectual property and cybersecurity related attacks, see Item 1A of Part I, “Risk Factors — Risks Related to Intellectual Property” and “Risk Factors — Risks Related to Our Business and Industry” of this Annual Report. Cybersecurity Strategy We are working towards the implementation of relevant controls within the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework to better address cybersecurity threats and we actively maintain a risk management plan that outlines the processes and procedures we use to identify, assess, mitigate and respond to cybersecurity risks. The plan is designed to protect the Company’s assets and safeguard the confidentiality, integrity and availability of its data and operations. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_904_ecyd--CybersecurityRiskManagementProcessesIntegratedTextBlock_c20240101__20241231_zvAVH539njp8">Our cybersecurity risk management plan is <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20240101__20241231_zLfNuT7V4Fr7">integrated into the Company’s overall risk management process and establishes a clear framework with roles and responsibilities for managing cybersecurity risks. The Company currently uses a variety of security controls, including but not limited to firewalls, intrusion detection systems, data encryption in transit and at rest, and multi-factor authentication. We provide regular training to our employees and educate them on cybersecurity risks and best practices to mitigate these risks. The Company also maintains a comprehensive incident response plan to detect, respond to, assess the materiality of, and recover from cybersecurity incidents effectively. true false Our cybersecurity risk management plan is <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20240101__20241231_zLfNuT7V4Fr7">integrated into the Company’s overall risk management process and establishes a clear framework with roles and responsibilities for managing cybersecurity risks. true The Company’s executive management considers cybersecurity risk and other information technology risk as part of its risk oversight and has the ultimate responsibility for overseeing our cybersecurity strategy. we have bolstered our Board of Directors through the appointment of a Director with an extensive history in cybersecurity and a deep understanding of cybersecurity threats which may have a material impact on our business and the video game industry as a whole. Verified incidents are also communicated to the Board of Directors. On a quarterly basis, the Director of IT reports cybersecurity monitoring updates to the CEO, coordinates with our newly appointed Board Member to implement our information technology and cybersecurity programs, as well as with our HR Manager to ensure that the Company’s employees have the adequate training on cybersecurity best practices. 243 We have audited the accompanying consolidated balance sheets of Snail, Inc. (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations and comprehensive income (loss), equity, and cash flows for each of the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. BDO USA, P.C Costa Mesa, California

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<p id="xdx_805_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zc5Syuh6Gu24" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">NOTE 1 – PRESENTATION AND NATURE OF OPERATIONS Snail, Inc. was incorporated under the laws of Delaware in January 2022. The terms “Snail, Inc,” “Snail Games,” “our” and the “Company” are used to refer collectively to Snail, Inc. and its subsidiaries. The Company’s fiscal year end is December 31. The Company 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. Basis of Presentation and Consolidation The accompanying 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”). 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 consolidated financial statements. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements The Consolidated Financial Statements include the accounts of Snail, Inc. and the following subsidiaries: SCHEDULE OF SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS <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="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 1pt solid; font-weight: bold; text-align: center">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Owned</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; 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background-color: White"> <td style="text-align: left">Project AWK Productions, LLC</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--ProjectAWKProductionsLlcMember_zNOrq05fHfOj" 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_984_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--BTBXioLlcMember_zPm2MUxqvnH9" style="text-align: right" title="Equity interest owned by the company">70</td><td style="text-align: left">%</td></tr> </table> All intercompany accounts, transactions, and profits have been eliminated upon consolidation. Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. Such estimates include revenue recognition, see Note 2 – Revenue Recognition, provisions for credit losses, deferred income tax assets and associated valuation allowances, deferred revenue, stock-based compensation and fair value of warrants. These estimates generally involve complex issues and require management to make judgments, involve analysis of historical and future trends that can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from estimates. Segment Reporting The Company has one operating and reportable segment, as the Company’s chief operating decision maker, who is the Company’s Chief Executive Officer, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating performance. 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 and third parties. Financial information about our geographic regions is included in Note 3 – Revenue from Contracts with Customers and information about our reportable operating segment is included in Note 18 – Operating Segments. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

The Consolidated Financial Statements include the accounts of Snail, Inc. and the following subsidiaries: SCHEDULE OF SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS <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="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 1pt solid; font-weight: bold; text-align: center">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Owned</td><td style="padding-bottom: 1pt; 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_985_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--SnailGamesUsaIncMember_zJNTzspBhH2l" 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_983_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_z9hlNwaGBXkd" 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_98B_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--FrostkeepStudiosIncMember_z6KSVbGlgsH9" 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_986_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--EminenceCorpMember_zRzPMlJ4wpB8" 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_98F_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--WanderingWizardLlcMember_zf8rBepQ2Iai" 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_985_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zZy8jaRptFYe" 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_98F_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--InteractiveFilmsLlcMember_zlEsM3N6GOs2" 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_980_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--ProjectAWKProductionsLlcMember_zNOrq05fHfOj" 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_984_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--ConsolidatedEntitiesAxis__srt--SubsidiariesMember__srt--OwnershipAxis__custom--BTBXioLlcMember_zPm2MUxqvnH9" style="text-align: right" title="Equity interest owned by the company">70</td><td style="text-align: left">%</td></tr> </table>

0.70

0.99

0.70

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The Company’s revenue is generated from the publishing of software games sold digitally and through physical discs (e.g., packaged goods), the publishing of separate downloadable content that are new feature releases to existing digital full-game downloads that are sold digitally, and in-app purchases of virtual goods used by players of its free-to-play mobile games. When control of the promised products and services is transferred to the end users, 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 purchase the games, and the control of the license is transferred to them. The virtual goods that the Company sells to players of our free-to-play mobile-games, include virtual currency or in-game purchases of additional game play functionality. For virtual goods, the satisfaction of our performance obligation is dependent on the nature of the virtual good purchased and as a result, the Company categorizes its virtual goods as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Consumable: consumable virtual items represent items that can be consumed by a specific player action. Consumable virtual items do not result in a direct benefit that the player keeps or provide the player any continuing benefit following consumption, and they often enable a player to perform an in-game action immediately. For the sale of consumable virtual items, the Company recognizes revenue ratably over the estimated service period, or as items are consumed, as applicable to the game (i.e., over time).</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; text-align: justify"> </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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Durable: durable virtual items represent items that are accessible to the player over an extended period of time. The Company recognizes revenue from the sale of durable virtual items ratably over the estimated service period for the applicable game (i.e., over time), which represents our best estimate of the average life of the durable virtual item or the life of the user.</td></tr> </table> For the ARK: Survival Ascended and Bob’s Tall Tales games that were sold in a bundle with downloadable content (“DLC”) that have not yet been launched and been reported in deferred revenue in the consolidated balance sheets, the Company has used the adjusted market assessment approach per ASC 606-10-32-34 to assign a value for the Company’s remaining performance obligation. The Company uses the following reasonably available information in developing the standalone selling prices of the performance obligations: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Reasonably available data points, including third party or industry pricing, and contractually stated prices.</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; text-align: justify"> </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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Market conditions such as market demand, competition, market constraints, awareness of the product and market trends.</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; text-align: justify"> </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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Entity-specific factors including pricing strategies and objectives, market share and pricing practices for bundled arrangements.</td></tr> </table> The Company recognizes revenue using the following five steps as provided by Accounting Standards Codification (“ASC”) Topic 606 Revenue from Contracts with Customers: 1) identify the contract(s) with the customer; 2) identify the performance obligations in each contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when, or as, the entity satisfies a performance obligation. The Company’s terms and conditions vary by customers and typically provide payment terms of net 30 to 75 days. Principal vs. Agent Consideration The Company offers certain software products via third-party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve’s Steam, Epic Games Store, My Nintendo Store, Apple’s App Store, the Google Play Store, and retail distributors. For sales of our software products via third-party digital storefronts and retail distributor, the Company determines whether or not it is acting as the principal in the sale to the end user, which the Company considers in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that the Company uses in evaluating these sales transactions include, but are not limited to, the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The underlying contract terms and conditions between the various parties to the transaction;</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Which party is primarily responsible for fulfilling the promise to provide the specified good or service; and</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Which party has discretion in establishing the price for the specified good or service.</td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Based on our evaluation of the above indicators, for sales arrangements via Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve’s Steam, Epic Games Store, My Nintendo Store, and our retail distributor, the digital platforms and distributors have discretion in establishing the price for the specified good or service and the Company has determined it is the agent in the sales transaction to the end user and therefore the Company reports revenue on a net basis based on the consideration received from the digital storefront. For sales arrangements via Apple’s App Store and the Google Play Store, the Company has discretion in establishing the price for the specified good or service and it has determined that the Company is the principal to the end user and thus reports revenue on a gross basis and mobile platform fees charged by these digital storefronts are expensed as incurred and reported within cost of revenues. Contract Balance The Company records deferred revenue when cash payments are received or due in advance of its performance, even if amounts are refundable. Deferred revenue is comprised of the transaction price allocable to the Company’s performance obligation on technical support and the sale of virtual goods available for in-app purchase, and payments received from customers prior to launching the games on the platforms. The Company recognizes revenues from the sale of virtual goods ratably over their estimated service period. The Company’s estimated service period for players of our current software games is generally 30 to 100 days from the date of purchase. The Company has a long-term title license agreement with a platform which makes ARK 1 available on the platform in perpetuity, and puts ARK II on the platform for three years upon release. The Company deferred $<span id="xdx_905_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_pn5n6_c20221231__us-gaap--TypeOfArrangementAxis__custom--LongTermTitleLicenseAgreementMember__srt--ProductOrServiceAxis__custom--ARKIIMember_zbNhDjVicbmg">2.3 million related to ARK II that is included in the long-term portion of deferred revenue and will be recognized upon the release of ARK II on the platform. In July 2023, the Company entered into a distribution agreement with its retail distribution partner for the distribution of ARK: Survival Ascended and ARK II. The initial term is two years and will renew each subsequent year unless it is cancelled. Upon executing the distribution agreement, the Company received $<span id="xdx_90D_eus-gaap--PrepaidRoyalties_iI_pn5n6_c20230731__us-gaap--TypeOfArrangementAxis__custom--DistributionAgreementMember__srt--ProductOrServiceAxis__custom--ARKSurvivalAscendedMember_zWbpqJtjEp75" title="Prepaid royalties">1.8 million as prepaid royalties. During the year ended December 31, 2024, the Company recognized $<span id="xdx_90D_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn5n6_c20240101__20241231__us-gaap--TypeOfArrangementAxis__custom--DistributionAgreementMember_zKqpo856sHGf" title="Revenue recognized">0.7 million of the revenue related to the retail release of ARK: Survival Ascended. As of December 31, 2024, the Company reported the remaining $<span id="xdx_904_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_pn5n6_c20241231__us-gaap--TypeOfArrangementAxis__custom--DistributionAgreementMember__srt--ProductOrServiceAxis__custom--ARKIIMember_zkYVxPjnnmN1" title="Deferred revenue, long-term portion">1.1 million related to ARK II as long-term deferred revenue until the disc releases occur. Estimated Service Period For certain performance obligations satisfied over time, the Company has determined that the estimated service period is the time period in which an average user plays our software games (“user life”) which most faithfully depicts the timing of satisfying our performance obligation. The Company considers a variety of data points when determining and subsequently reassessing the estimated service period for players of our software games. Primarily, the Company reviews the weighted average number of days between players’ first and last day playing online or the subscription trend. The Company also considers publicly available online trends. The Company believes this provides a reasonable depiction of the transfer of our game related services to our players, as it is the best representation of the period during which our players play our software games. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current software games are generally between 30 and 100 days depending on the software games. Shipping, Handling and Value Added Taxes (“VAT”) The distributor, as the principal, is responsible for the shipping of the game discs to retail stores and incurring the shipping and VAT costs. The Company is paid the net sales amount after deducting shipping costs, VAT and other related expenses by the distributor. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Cost of Revenues Cost of revenues include software license royalty fees, merchant fees, server and database center costs, game localization costs, game licenses, engine fees and amortization costs. Cost of revenues for the years ended December 31, 2024 and 2023 were comprised of the following: SCHEDULE OF COST OF REVENUES <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: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20240101__20241231_zpBv3jvnyhpg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20230101__20231231_z1RZlfrCTpOk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_ecustom--CostSoftwareLicenseRoyaltyFeesRelatedParties_maCOGASz5PP_zGMRIqntABe1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Software license royalties – related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">19,908,982</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">14,398,482</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostSoftwareLicenseRoyaltyFees_maCOGASz5PP_z89u2uUMvbZj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Software license royalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">574,520</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,128,517</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--CostLicenseFeesAndAmortizationRelatedParties_maCOGASz5PP_zfwdgj6sZRA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">License and amortization – related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">24,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,496,961</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CostLicenseFeesAndAmortization_maCOGASz5PP_zaITrTu6NxWa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">License and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">804</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CostMerchantFees_maCOGASz5PP_zX99ZkB4WTU" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Merchant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">890,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,369,595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CostEngineFees_maCOGASz5PP_znVQMPqNflSl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Engine fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,823,215</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,301,104</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--CostInternetExpense_maCOGASz5PP_zkkvP5xWFttk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Internet, server and data center</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,977,076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,487,340</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostsRelatedToOtherRevenue_maCOGASz5PP_zp7xGwXdSmE" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Costs related to other revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">53,746</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">123,600</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CostOfGoodsAndServicesSold_iT_pp0p0_mtCOGASz5PP_zmiaHPxOwseh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">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">54,236,342</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">48,306,403</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> General and Administrative Costs General and administrative costs include rent, salaries, stock-based compensation, legal and professional expenses, expenses related to being a publicly traded company, administrative internet and server, contractor costs, insurance expense, licenses and permits, other taxes and travel expenses. These costs are expensed as they are incurred. Stock-based compensation expense (income) of $<span id="xdx_90B_eus-gaap--AllocatedShareBasedCompensationExpense_c20240101__20241231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zP49aZkItDhd" title="Stock based compensation expenses (income)">(828,495) and $<span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zALSwJFABxj7" title="Stock based compensation expenses (income)">799,955 was incurred during the years ended December 31, 2024 and 2023, respectively. Advertising and Marketing Costs The Company expenses advertising and marketing costs as incurred. Advertising and marketing costs of $1,523,398 and $1,582,464 were incurred during the years ended December 31, 2024 and 2023, respectively Research and Development Research and development costs are expensed as incurred. Research and development costs include travel, payroll, and other general expenses specific to research and development activities. Stock-based compensation expense (income) of $<span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20240101__20241231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zzNMDeIlotB" title="Stock based compensation expense (income)">(61,713) and $<span id="xdx_902_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zhrnZR6aRINj" title="Stock based compensation expense (income)">48,080 was incurred during the years ended December 31, 2024 and 2023, respectively. We account for software products intended to be sold, leased or otherwise marketed in accordance with ASC 985. Accordingly, we capitalize certain development costs incurred after technological feasibility is established but before the general release of the game. In some cases, there may be capitalized costs for the development of significant additions or improvements to a game or for porting to a different console. These capitalized costs may include labor, materials, and an allocation of overhead directly related to development activities or outsourced development services. There have not been any software costs capitalized to date under ASC 985 as the related titles have not yet reached technological feasibility thresholds. Non-controlling Interests Non-controlling interests on the consolidated balance sheets and consolidated statements of operations and comprehensive income (loss) include the equity allocated to non-controlling interest holders. As of December 31, 2024 and 2023, there were non-controlling interests with the following subsidiaries: SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES <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 1pt solid; font-weight: bold">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Equity % Owned</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Non-Controlling %</td><td style="padding-bottom: 1pt; 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_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zkVEcRsPDTA3" title="Equity interest owned by the company"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_z7oHIZapkJpk" title="Equity interest owned by the company">70</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_90E_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zIWZaDxjnNV7" title="Non controlling interest held in a subsidiary"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zgJlUIjBYFD6" title="Non controlling interest held in a subsidiary">30</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">70</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--BTBXioLlcMember_zVlPgpB4jwFe" title="Non controlling interest held in a subsidiary"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--BTBXioLlcMember_zeIV8k9bT1Hg" title="Non controlling interest held in a subsidiary">30</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_908_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_znHpKKDKQXD" title="Equity interest owned by the company"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zGbrSp8KYEqf" title="Equity interest owned by the company">99</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zJkk1QTC5Jfl" title="Non controlling interest held in a subsidiary"><span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zFOv7gb0XRGe" title="Non controlling interest held in a subsidiary">1</td><td style="text-align: left">%</td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Cash is available for use in current operations or other activities such as capital expenditures. Restricted cash and cash equivalents are time deposits, that are currently provided as a standby letter of credit to landlords. The Company’s policy for determining whether an item is treated as cash, or a cash equivalent, is based on its original maturity, liquidity, and risk profile. Investments with maturities of three months or less, are highly liquid and have insignificant risk are considered to be cash equivalents. Accounts Receivable The Company generally records a receivable related to revenue when it has an unconditional right to invoice and receive payment. Accounts receivable are carried at original invoice amount less an allowance made for credit losses. The Company uses a combination of quantitative and qualitative risk 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. There were no credit losses recognized during the year ended December 31, 2024. During the year ended December 31, 2023, the Company’s allowance for credit losses increased from $<span id="xdx_90D_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__srt--RangeAxis__srt--MinimumMember_z03pHRtbNBFf" title="Allowance for credit losses">19,929 to $<span id="xdx_901_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__srt--RangeAxis__srt--MaximumMember_z6KEjJ1yGtog" title="Allowance for credit losses">523,500 due to an increase in credit risk of one of the Company’s platform partners as a result of continued delays in payments. There was an additional $<span id="xdx_903_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--INDIEVIncMember_z3c275VoUNlf" title="Allowance for credit losses">77,928 recognized as credit losses due to the bankruptcy of the Company’s related party, INDIEV, Inc. (“INDIEV”) during the year ended December 31, 2023. Property, Plant and Equipment, Net Property, plant and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 90%; border-collapse: collapse; margin-right: auto"> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 49%; text-align: justify">Buildings</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; width: 49%; text-align: justify"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zFPLIOWC5GNa" title="Property, plant and equipment, useful life">39 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Building improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingImprovementsMember_zWAKu2mzLKzf" title="Property, plant and equipment, useful life">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Leasehold improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: justify">Lesser of the lease term or the estimated useful lives of the improvements, generally <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zY0ZWJ3LU9K5" title="Property, plant and equipment, useful life">5 to <span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_zSzWShzMfZOg" title="Property, plant and equipment, useful life">15 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Computer equipment and software</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zZcrWswTJWOb" title="Property, plant and equipment, useful life">3 to <span id="xdx_908_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zrXNq2fHu6J" title="Property, plant and equipment, useful life">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Furniture and fixtures</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zv2BQSGrizQ" title="Property, plant and equipment, useful life">3 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Auto and trucks</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_znNULzaLKy86" title="Property, plant and equipment, useful life">5 years</td></tr> </table> When assets are retired or disposed of, the cost and accumulated depreciation thereon are removed, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive income (loss). Leasehold improvements are amortized using the straight-line method over the estimated life of the asset, not to exceed the length of the lease. Repairs and maintenance costs are expensed as incurred. Foreign Currency The functional currency for our foreign operations is primarily the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using exchange rates for assets and liabilities at the balance sheet date and average prevailing exchange rates for the period for revenue and expense accounts. Adjustments resulting from the translation are included in accumulated other comprehensive loss. Realized and unrealized transaction gains and losses arising from transactions denominated in foreign currencies different than the relevant functional currency are included in our consolidated statements of operations and comprehensive income (loss) in the period in which they occur. Foreign currency transaction gains and (losses) were $11,686 and ($68,180) during the twelve months ended December 31, 2024 and 2023, respectively. Intangible Assets – License Usage Rights The Company enters into license agreements with third-party developers and related party developers that require the Company to make payments for license usage rights and game development and production services. These license agreements grant the Company the exclusive publishing and distribution rights to game titles as well as, in some cases, the underlying intellectual property rights. These license agreements also specify the payment schedules, royalty rates and the relevant licensing period. The Company capitalizes the cost of license usage rights as intangible assets and amortizes them over the terms of the respective licensing rights. The Company capitalized $<span id="xdx_90A_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseUsageRightsMember_zGwyfHLVs2gl" title="Intangible assets, net">420,000 in license usage rights during the twelve months ended December 31, 2024 which are included within intangible assets, net, within the consolidated balance sheets. There were no such acquisitions during the twelve months ended December 31, 2023. Film Costs, net The Company capitalizes costs to produce short videos in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 926, including direct production costs, production overhead, interest, acquisition costs and development costs. The Company will account for each episodic series as a unit for which capitalized film costs will be amortized by the Company using the individual-film forecast-computation method. Each reporting period the Company will reassess its estimate of ultimate revenues used to determine the amortization rate for each episodic series. If the estimate is revised, the Company will account for the change prospectively. The Company will then remeasure the amortization based on the portion of ultimate revenues that have been recognized and that are yet to be recognized. Unamortized film costs shall be tested for impairment whenever events or changes in circumstances indicate that fair value of the film may be less than its unamortized film costs. If the fair value of an episodic series is less than its unamortized film costs, the Company will write off the excess amount. The Company groups its film and content rights by monetization strategy. As of December 31, 2024 and 2023, $1,512,960 and $0 of film costs are capitalized and included in other noncurrent assets in the accompanying consolidated balance sheets. Fair Value Measurements The Company follows FASB ASC Topic 820, Fair Value Measurements. ASC 820 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. ASC 820 establishes a hierarchy of valuation inputs based on the extent to which the inputs are observable in the marketplace. Observable inputs reflect market data obtained from sources independent of the reporting entity and unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by the Company for financial instruments measured at fair value. The three levels of inputs are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1: Quoted prices in active markets for identical assets or liabilities that the Company has an ability to access as of the measurement date.</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2: Inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the same term of the assets or liabilities.</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements 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 receivables, payables, and other amounts arising out of the normal course of business approximate their fair value due to their short maturities or economic substance. The carrying amount of the Company’s short-term and long-term borrowings, which are considered level 2 liabilities, approximates fair value based on current rates and terms available to the Company for similar debt. The Company’s promissory note has a fixed rate until June 2026, then a floating rate that approximates the Wall Street Journal Prime Rate plus 0.50%. The Company considers the carrying amount of the loan to approximate fair value as the discounted cost in comparison to market rates would not be materially different than the cost to acquire a loan with similar terms. See Note 17 – Equity for the fair value disclosures related to the Company’s convertible notes, and the Company’s warrant liability and derivative instruments. The Company does not have any other assets or liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2024 and 2023. <p id="xdx_84F_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsIncludingIntangibleAssetsPolicyPolicyTextBlock_z2NjPbVzncbi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Amortizable Intangibles and Other Long-lived Assets The Company’s long-lived assets and other assets consisting of property and equipment and purchased intangible assets, are reviewed for impairment in accordance with the guidance of FASB Topic ASC 360, Property and Equipment. Intangible assets subject to amortization are carried at cost less accumulated amortization and amortized over the estimated useful life in proportion to the economic benefits received. The Company evaluates the recoverability of definite-lived intangible assets and other long-lived assets in accordance with ASC Subtopic 360-10, which generally requires the assessment of these assets for recoverability when events or circumstances indicate a potential impairment exists. The Company considers certain events and circumstances in determining whether the carrying value of identifiable intangible assets and other long-lived assets, other than indefinite lived intangible assets, may not be recoverable including, but not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; and changes in the Company’s business strategy. If the Company determines that the carrying value may not be recoverable, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group to determine whether an impairment exists. If an impairment is indicated based on a comparison of the asset groups’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. There can be no assurance, however, that market conditions will not change or demand for the Company’s products under development will continue. Either of these could result in future impairment of long-lived assets. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our consolidated reporting results and financial positions. Income Taxes Income taxes are provided for the tax effects of transactions reported in the Consolidated Financial Statements and consisted of taxes currently due and deferred taxes. Deferred taxes are recognized for the differences between the basis of assets and liabilities for financial statement and income tax purposes. The Company follows FASB Topic ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. FASB ASC 740-10-25 provides criteria for the recognition, measurement, presentation, and disclosure of uncertain tax positions. The Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the 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 long-term accrued expenses on the accompanying consolidated balance sheets in the amount of $265,251 and $254,731, as of December 31, 2024 and 2023, respectively. The Company accrues and recognizes interest and penalties related to unrecognized tax benefits in operating expenses. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Concentration of Credit Risk and Significant Customers The Company maintains cash balances at several major financial institutions. While the Company attempts to limit credit exposure with any single institution, balances often exceed insurable amounts. As of December 31, 2024 and 2023, the Company had deposits of $6,610,066 and $14,716,652, respectively, that were not insured by the Federal Deposit Insurance Corporation and are included in the cash and cash equivalents, and restricted cash and cash equivalents, in the accompanying consolidated balance sheets. The Company extends credit to various digital resellers and partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. The Company does not require collateral or other security to support financial instruments subject to credit risk. The Company performs ongoing credit evaluations of customers and maintains reserves for potentially uncollectible accounts. The Company has four customers as of December 31, 2024 and 2023, who accounted for approximately <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zzC54A6kEAf3">85% and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zzAfiJYa45Pd">95% of consolidated gross receivables, respectively. Among four customers as of December 31, 2024 and 2023, each customer accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zyllXQyntlC8">42%, <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zER55NYa8aZ">19%, <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zvBNVz4ySGs1">14% and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerFourMember_z2yyedHW0IBb">10% as of December 31, 2024, and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zQIsJ9QjuUY9">43%, <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_z5Uhv4Gpb6ai">20%, <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zP5fP2zgnHF6">16% and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerFourMember_zinrVirOUXhj">16% as of December 31, 2023 of the consolidated gross receivables outstanding. The Company had four customers in the year ended December 31, 2024, and three customers in the year ended December 31, 2023, that accounted for <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zj5synmabPal">46%, <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zx5wMEA5WYF2">15%, <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zIbfYJEaEUl4">14%, <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerFourMember_z48CiRlffGag">11%, and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zALYsE02LvN" title="Concentration percentage">42%, <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zYLiAl4dj1ac" title="Concentration percentage">18%, and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zE4NVEl9d61c" title="Concentration percentage">11% of the Company’s net revenue, respectively. The loss of these customers or declines in the forecasts of their accounts receivable collectability would have a significant impact on the Company’s financial performance. As of December 31, 2024, the Company had one vendor who accounted for approximately <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneVendorMember_zOTzu2ZUbFvg" title="Concentration risk percentage">36% of consolidated gross payables, respectively, and as of December 31, 2023 the Company had one vendor who accounted for approximately <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneVendorMember_z1za9XDK6GO2" title="Concentration risk percentage">69% of consolidated gross payables. The loss of these vendors could have a significant impact on the Company’s financial performance. The Company had one vendor, SDE, Inc., a related party, that accounted for <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SDEIncMember_zNMqLm3uWgwi" title="Concentration percentage">55% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SDEIncMember_z6XTlniMx3se" title="Concentration percentage">51% of the Company’s combined cost of revenues and operating expenses during the years ended December 31, 2024 and 2023, respectively. Amounts payable to SDE are included in accounts receivable – related party and accounts payable - related parties in the consolidated balance sheets as of December 31, 2024 and 2023, respectively. The loss of SDE as a vendor would significantly and adversely affect the Company’s core business. Leases The Company has a lease relating primarily to office facilities. The Company determines if an arrangement is or contains a lease at contract inception. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The lease liability is measured as the present value of the unpaid lease payments, and the right-of-use asset value is derived from the calculation of the lease liability. Lease payments include fixed and in-substance fixed payments, variable payments based on an index or rate, variable payments based on the level of services provided by the landlords of our leases, reasonably certain purchase options, and termination penalties. Variable lease payments related to the services provided by the landlords are non-lease components that are recognized as rent expenses as incurred. For leased assets with similar lease terms and asset types, the Company applied a portfolio approach in determining a single incremental borrowing rate for the leased assets. The Company uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments because the Company does not have the information necessary to determine the rate implicit in the lease. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The Company’s lease term includes any option to extend the lease when it is reasonably certain to be exercised based on considering all relevant factors. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Operating leases are included in operating lease right-of-use assets, net, current portion of operating lease liabilities, and operating lease liabilities, net of current portion on the consolidated balance sheets. Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to simplify the application of GAAP for certain financial instruments with characteristics of liabilities and equity. The FASB decided to eliminate certain accounting models to simplify the accounting for convertible instruments, reduce complexity for preparers and practitioners, and improve the decision usefulness and relevance of the information provided to financial statement users. The FASB 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 adopted this standard on January 1, 2024 and it did not have a material impact on the Company’s financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosure (Topic 280), to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities. The update does not change how a public entity identifies its operating segments, aggregates those operating segments, or applied the quantitative thresholds to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and the Company has adopted this standard as of the effective date. See Note 18 – Operating Segments for required disclosures. Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to improve the transparency of income tax disclosures requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in the update requires that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is evaluating the impact of adopting the new standard. In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, though early adoption is permitted. The Company is evaluating the impact of adopting the new standard. In November 2024, the FASB issued ASU 2024-04, Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this update are effective for annual periods beginning after December 15, 2025, and interim reporting periods within show annual periods. Early adoption is permitted for all entities that have adopted the amendments in update 2020-06. The Company is evaluating the impact of adopting the new standard. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Employee Savings Plans The Company maintains a 401(k) for its United States based employees. The plan is offered to all eligible employees to make voluntary contributions. Employer contributions to the plan are reported under general and administrative costs in the amounts of $102,406 and $88,756 for the years ended December 31, 2024 and 2023, respectively. Stock-Based Compensation The Company recognizes compensation cost for stock-based awards to employees based on the awards’ estimated grant-date fair value using a straight-line approach over the service period for which such awards are expected to vest. The Company accounts for forfeitures as they occur. The Company did not issue any restricted stock units (“Restricted Stock Units” or “restricted stock units”) during the years ended December 31, 2024, and 2023. The fair value of Restricted Stock Units is determined based on the quoted market price of our common stock on the date of grant. The Company’s 2022 Omnibus Incentive Plan (the “2022 Plan”) became effective upon the consummation of the IPO. The 2022 Omnibus Incentive allows us to grant options to purchase our common stock and to grant stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards and other cash-based awards and other stock-based awards to our employees, officers, and directors, up to a maximum of <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_c20231231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_z4aTJ87NR2J6" title="Number of shares authorized for issuance">5,718,000 shares. Stock options may be granted to employees and officers and non-qualified options may be granted to employees, officers, and directors, at not less than the fair market value on the date of grant. The number of shares of common stock available for issuance under the 2022 Plan will be increased annually on the first day of each fiscal year during the term of the 2022 Plan, beginning with the 2023 fiscal year, by an amount equal to the lesser of (a) <span id="xdx_907_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20231231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_z2L76u9LOejc" title="Number of shares available for issuance">5,718,000 shares, (b) <span id="xdx_90B_ecustom--ShareBasedCompensationAnnualIncreaseOfSharesReserveForIssuancePercentToOutstandingSharesOnFullyDilutedBasis_iI_dp_uPure_c20231231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zwfrq7kQzma1" title="Annual increase in shares reserve for issuance (as a percent)">1% of the shares of the Company’s Class B common stock outstanding (on a fully diluted basis) on the final day of the immediately preceding calendar year or (c) such smaller number of shares as determined by the Company’s board of directors. As of December 31, 2024 there were <span id="xdx_90D_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20241231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_z0mVjascvBHf" title="Number of shares available for issuance">4,508,239 shares reserved for issuance under the 2022 Plan. Restricted Stock Units The Company granted restricted stock units under our 2022 Omnibus Incentive Plan to employees and directors. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units is typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Warrants The Company accounts for Warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the Warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the Warrants meet all of the requirements for equity classification under ASC 815, including whether the Warrants are indexed to the Company’s own shares of Class A common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the Warrants are outstanding. For issued or modified Warrants that meet all of the criteria for equity classification, the Warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified Warrants that do not meet all the criteria for equity classification, the Warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the Warrants are recognized as a non-cash gain or loss on the statements of operations. Each of the outstanding warrants is convertible on a one-for-one basis into the Company’s common stock and are fully exercisable as of December 31, 2024. A summary of our outstanding warrants as of December 31, 2024 is included below: SUMMARY OF OUTSTANDING WARRANTS <table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Number Outstanding</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Exercise Price</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Class</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Expiration Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; font-size: 10pt; text-align: left">Equity line of credit warrants</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_zpTFNgM306me" style="width: 14%; font-size: 10pt; text-align: right" title="Number outstanding">334,314</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 14%; font-size: 10pt; text-align: right">1.50</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: right">Liability</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: right">August 24, 2028</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Convertible notes warrants</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98E_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--ConvertibleNotesWarrantsMember_z919DwvCiCya" style="font-size: 10pt; text-align: right" title="Number outstanding">1,405,470</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">.84</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">Liability</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">November 24, 2028</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Underwriters warrants</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--UnderwriterWarrantsMember_zrRGuzoNBp3k" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="Number outstanding">120,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: right">6.25</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Equity</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">November 9, 2025</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total warrants:</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_987_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231_zaCUqMwWIryl" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Number outstanding">1,859,784</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> Share Repurchase Program On November 10, 2022, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to $<span id="xdx_909_esrt--StockRepurchaseProgramAuthorizedAmount1_iI_pn6n6_c20221110__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zOODRQUZg3I7" title="Shares authorized for repurchase">5 million of outstanding shares of Class A common stock of the Company, subject to ongoing compliance with the Nasdaq listing rules. The program does not have a fixed expiration date. Repurchased shares are accounted for at cost and reported as a reduction of equity in the consolidated balance sheets under treasury stock. <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesTreasuryStockReissued_do_c20240101__20241231__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_ziNv47KyOEu3" title="Number of treasury stock sold"><span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesTreasuryStockReissued_do_c20230101__20231231__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z0qFnOIRynb5" title="Number of treasury stock sold">No treasury stock was sold during the years ended December 31, 2024 and 2023. As of December 31, 2024 and 2023, <span id="xdx_908_eus-gaap--TreasuryStockSharesAcquired_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zfdCkRo2AhAc" title="Number of shares repurchased"><span id="xdx_90B_eus-gaap--TreasuryStockSharesAcquired_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zpD78fuOhtVk" title="Number of shares repurchased">1,350,275 shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $<span id="xdx_902_eus-gaap--TreasuryStockValueAcquiredCostMethod_pn5n6_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zrFaizxaZZm8" title="Aggregate purchase price of shares repurchased"><span id="xdx_90B_eus-gaap--TreasuryStockValueAcquiredCostMethod_pn5n6_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zZARt0rn0M4j" title="Aggregate purchase price of shares repurchased">3.7 million. The average price paid per share was $<span id="xdx_907_eus-gaap--TreasuryStockAcquiredAverageCostPerShare_pid_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zZgIvJWoQ8w4" title="Average price paid per share for repurchase of shares"><span id="xdx_907_eus-gaap--TreasuryStockAcquiredAverageCostPerShare_pid_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z8FcW8yS8xnl" title="Average price paid per share for repurchase of shares">2.72 and approximately $<span id="xdx_90B_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zbAA4v6kt5Og" title="Shares remain available for repurchase, amount"><span id="xdx_904_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zlE2PVGDmFhb" title="Shares remain available for repurchase, amount">1.3 million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Earnings (loss) Per Share Earnings (loss) per share (“EPS”) is calculated by dividing the net income (loss) that is applicable to the common stockholders for the period by the weighted average number of shares of common stock during that period. The diluted EPS for the period is calculated by dividing the net earnings (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 more information see Note 16 Earnings (Loss) Per Share. Dividend Restrictions Our ability to pay cash dividends is currently restricted by the terms of our credit facilities.

Revenue Recognition The Company’s revenue is generated from the publishing of software games sold digitally and through physical discs (e.g., packaged goods), the publishing of separate downloadable content that are new feature releases to existing digital full-game downloads that are sold digitally, and in-app purchases of virtual goods used by players of its free-to-play mobile games. When control of the promised products and services is transferred to the end users, 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 purchase the games, and the control of the license is transferred to them. The virtual goods that the Company sells to players of our free-to-play mobile-games, include virtual currency or in-game purchases of additional game play functionality. For virtual goods, the satisfaction of our performance obligation is dependent on the nature of the virtual good purchased and as a result, the Company categorizes its virtual goods as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Consumable: consumable virtual items represent items that can be consumed by a specific player action. Consumable virtual items do not result in a direct benefit that the player keeps or provide the player any continuing benefit following consumption, and they often enable a player to perform an in-game action immediately. For the sale of consumable virtual items, the Company recognizes revenue ratably over the estimated service period, or as items are consumed, as applicable to the game (i.e., over time).</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; text-align: justify"> </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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Durable: durable virtual items represent items that are accessible to the player over an extended period of time. The Company recognizes revenue from the sale of durable virtual items ratably over the estimated service period for the applicable game (i.e., over time), which represents our best estimate of the average life of the durable virtual item or the life of the user.</td></tr> </table> For the ARK: Survival Ascended and Bob’s Tall Tales games that were sold in a bundle with downloadable content (“DLC”) that have not yet been launched and been reported in deferred revenue in the consolidated balance sheets, the Company has used the adjusted market assessment approach per ASC 606-10-32-34 to assign a value for the Company’s remaining performance obligation. The Company uses the following reasonably available information in developing the standalone selling prices of the performance obligations: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Reasonably available data points, including third party or industry pricing, and contractually stated prices.</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; text-align: justify"> </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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Market conditions such as market demand, competition, market constraints, awareness of the product and market trends.</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; text-align: justify"> </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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Entity-specific factors including pricing strategies and objectives, market share and pricing practices for bundled arrangements.</td></tr> </table> The Company recognizes revenue using the following five steps as provided by Accounting Standards Codification (“ASC”) Topic 606 Revenue from Contracts with Customers: 1) identify the contract(s) with the customer; 2) identify the performance obligations in each contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when, or as, the entity satisfies a performance obligation. The Company’s terms and conditions vary by customers and typically provide payment terms of net 30 to 75 days.

Principal vs. Agent Consideration The Company offers certain software products via third-party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve’s Steam, Epic Games Store, My Nintendo Store, Apple’s App Store, the Google Play Store, and retail distributors. For sales of our software products via third-party digital storefronts and retail distributor, the Company determines whether or not it is acting as the principal in the sale to the end user, which the Company considers in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that the Company uses in evaluating these sales transactions include, but are not limited to, the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The underlying contract terms and conditions between the various parties to the transaction;</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Which party is primarily responsible for fulfilling the promise to provide the specified good or service; and</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Which party has discretion in establishing the price for the specified good or service.</td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Based on our evaluation of the above indicators, for sales arrangements via Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve’s Steam, Epic Games Store, My Nintendo Store, and our retail distributor, the digital platforms and distributors have discretion in establishing the price for the specified good or service and the Company has determined it is the agent in the sales transaction to the end user and therefore the Company reports revenue on a net basis based on the consideration received from the digital storefront. For sales arrangements via Apple’s App Store and the Google Play Store, the Company has discretion in establishing the price for the specified good or service and it has determined that the Company is the principal to the end user and thus reports revenue on a gross basis and mobile platform fees charged by these digital storefronts are expensed as incurred and reported within cost of revenues. Contract Balance The Company records deferred revenue when cash payments are received or due in advance of its performance, even if amounts are refundable. Deferred revenue is comprised of the transaction price allocable to the Company’s performance obligation on technical support and the sale of virtual goods available for in-app purchase, and payments received from customers prior to launching the games on the platforms. The Company recognizes revenues from the sale of virtual goods ratably over their estimated service period. The Company’s estimated service period for players of our current software games is generally 30 to 100 days from the date of purchase. The Company has a long-term title license agreement with a platform which makes ARK 1 available on the platform in perpetuity, and puts ARK II on the platform for three years upon release. The Company deferred $<span id="xdx_905_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_pn5n6_c20221231__us-gaap--TypeOfArrangementAxis__custom--LongTermTitleLicenseAgreementMember__srt--ProductOrServiceAxis__custom--ARKIIMember_zbNhDjVicbmg">2.3 million related to ARK II that is included in the long-term portion of deferred revenue and will be recognized upon the release of ARK II on the platform. In July 2023, the Company entered into a distribution agreement with its retail distribution partner for the distribution of ARK: Survival Ascended and ARK II. The initial term is two years and will renew each subsequent year unless it is cancelled. Upon executing the distribution agreement, the Company received $<span id="xdx_90D_eus-gaap--PrepaidRoyalties_iI_pn5n6_c20230731__us-gaap--TypeOfArrangementAxis__custom--DistributionAgreementMember__srt--ProductOrServiceAxis__custom--ARKSurvivalAscendedMember_zWbpqJtjEp75" title="Prepaid royalties">1.8 million as prepaid royalties. During the year ended December 31, 2024, the Company recognized $<span id="xdx_90D_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn5n6_c20240101__20241231__us-gaap--TypeOfArrangementAxis__custom--DistributionAgreementMember_zKqpo856sHGf" title="Revenue recognized">0.7 million of the revenue related to the retail release of ARK: Survival Ascended. As of December 31, 2024, the Company reported the remaining $<span id="xdx_904_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_pn5n6_c20241231__us-gaap--TypeOfArrangementAxis__custom--DistributionAgreementMember__srt--ProductOrServiceAxis__custom--ARKIIMember_zkYVxPjnnmN1" title="Deferred revenue, long-term portion">1.1 million related to ARK II as long-term deferred revenue until the disc releases occur.

2300000

1800000

700000

1100000

Estimated Service Period For certain performance obligations satisfied over time, the Company has determined that the estimated service period is the time period in which an average user plays our software games (“user life”) which most faithfully depicts the timing of satisfying our performance obligation. The Company considers a variety of data points when determining and subsequently reassessing the estimated service period for players of our software games. Primarily, the Company reviews the weighted average number of days between players’ first and last day playing online or the subscription trend. The Company also considers publicly available online trends. The Company believes this provides a reasonable depiction of the transfer of our game related services to our players, as it is the best representation of the period during which our players play our software games. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current software games are generally between 30 and 100 days depending on the software games.

Shipping, Handling and Value Added Taxes (“VAT”) The distributor, as the principal, is responsible for the shipping of the game discs to retail stores and incurring the shipping and VAT costs. The Company is paid the net sales amount after deducting shipping costs, VAT and other related expenses by the distributor. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

Cost of Revenues Cost of revenues include software license royalty fees, merchant fees, server and database center costs, game localization costs, game licenses, engine fees and amortization costs. Cost of revenues for the years ended December 31, 2024 and 2023 were comprised of the following: SCHEDULE OF COST OF REVENUES <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: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20240101__20241231_zpBv3jvnyhpg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20230101__20231231_z1RZlfrCTpOk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_ecustom--CostSoftwareLicenseRoyaltyFeesRelatedParties_maCOGASz5PP_zGMRIqntABe1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Software license royalties – related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">19,908,982</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">14,398,482</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostSoftwareLicenseRoyaltyFees_maCOGASz5PP_z89u2uUMvbZj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Software license royalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">574,520</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,128,517</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--CostLicenseFeesAndAmortizationRelatedParties_maCOGASz5PP_zfwdgj6sZRA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">License and amortization – related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">24,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,496,961</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CostLicenseFeesAndAmortization_maCOGASz5PP_zaITrTu6NxWa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">License and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">804</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CostMerchantFees_maCOGASz5PP_zX99ZkB4WTU" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Merchant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">890,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,369,595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CostEngineFees_maCOGASz5PP_znVQMPqNflSl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Engine fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,823,215</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,301,104</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--CostInternetExpense_maCOGASz5PP_zkkvP5xWFttk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Internet, server and data center</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,977,076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,487,340</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostsRelatedToOtherRevenue_maCOGASz5PP_zp7xGwXdSmE" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Costs related to other revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">53,746</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">123,600</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CostOfGoodsAndServicesSold_iT_pp0p0_mtCOGASz5PP_zmiaHPxOwseh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">54,236,342</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">48,306,403</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

SCHEDULE OF COST OF REVENUES <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: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20240101__20241231_zpBv3jvnyhpg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20230101__20231231_z1RZlfrCTpOk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_ecustom--CostSoftwareLicenseRoyaltyFeesRelatedParties_maCOGASz5PP_zGMRIqntABe1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Software license royalties – related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">19,908,982</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">14,398,482</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostSoftwareLicenseRoyaltyFees_maCOGASz5PP_z89u2uUMvbZj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Software license royalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">574,520</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,128,517</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--CostLicenseFeesAndAmortizationRelatedParties_maCOGASz5PP_zfwdgj6sZRA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">License and amortization – related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">24,000,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,496,961</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CostLicenseFeesAndAmortization_maCOGASz5PP_zaITrTu6NxWa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">License and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">804</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CostMerchantFees_maCOGASz5PP_zX99ZkB4WTU" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Merchant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">890,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,369,595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CostEngineFees_maCOGASz5PP_znVQMPqNflSl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Engine fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,823,215</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,301,104</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--CostInternetExpense_maCOGASz5PP_zkkvP5xWFttk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Internet, server and data center</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,977,076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,487,340</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--CostsRelatedToOtherRevenue_maCOGASz5PP_zp7xGwXdSmE" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Costs related to other revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">53,746</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">123,600</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CostOfGoodsAndServicesSold_iT_pp0p0_mtCOGASz5PP_zmiaHPxOwseh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total:</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">54,236,342</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">48,306,403</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 19908982 14398482 574520 1128517 24000000 20496961 7804 804 890999 1369595 3823215 4301104 4977076 6487340 53746 123600

54236342

48306403

General and Administrative Costs General and administrative costs include rent, salaries, stock-based compensation, legal and professional expenses, expenses related to being a publicly traded company, administrative internet and server, contractor costs, insurance expense, licenses and permits, other taxes and travel expenses. These costs are expensed as they are incurred. Stock-based compensation expense (income) of $<span id="xdx_90B_eus-gaap--AllocatedShareBasedCompensationExpense_c20240101__20241231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zP49aZkItDhd" title="Stock based compensation expenses (income)">(828,495) and $<span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zALSwJFABxj7" title="Stock based compensation expenses (income)">799,955 was incurred during the years ended December 31, 2024 and 2023, respectively.

-828495

799955

Advertising and Marketing Costs The Company expenses advertising and marketing costs as incurred. Advertising and marketing costs of $1,523,398 and $1,582,464 were incurred during the years ended December 31, 2024 and 2023, respectively

1523398

1582464

Research and Development Research and development costs are expensed as incurred. Research and development costs include travel, payroll, and other general expenses specific to research and development activities. Stock-based compensation expense (income) of $<span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20240101__20241231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zzNMDeIlotB" title="Stock based compensation expense (income)">(61,713) and $<span id="xdx_902_eus-gaap--AllocatedShareBasedCompensationExpense_pp0p0_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zhrnZR6aRINj" title="Stock based compensation expense (income)">48,080 was incurred during the years ended December 31, 2024 and 2023, respectively. We account for software products intended to be sold, leased or otherwise marketed in accordance with ASC 985. Accordingly, we capitalize certain development costs incurred after technological feasibility is established but before the general release of the game. In some cases, there may be capitalized costs for the development of significant additions or improvements to a game or for porting to a different console. These capitalized costs may include labor, materials, and an allocation of overhead directly related to development activities or outsourced development services. There have not been any software costs capitalized to date under ASC 985 as the related titles have not yet reached technological feasibility thresholds.

-61713

48080

Non-controlling Interests Non-controlling interests on the consolidated balance sheets and consolidated statements of operations and comprehensive income (loss) include the equity allocated to non-controlling interest holders. As of December 31, 2024 and 2023, there were non-controlling interests with the following subsidiaries: SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES <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 1pt solid; font-weight: bold">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Equity % Owned</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Non-Controlling %</td><td style="padding-bottom: 1pt; 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_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zkVEcRsPDTA3" title="Equity interest owned by the company"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_z7oHIZapkJpk" title="Equity interest owned by the company">70</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_90E_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zIWZaDxjnNV7" title="Non controlling interest held in a subsidiary"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zgJlUIjBYFD6" title="Non controlling interest held in a subsidiary">30</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">70</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--BTBXioLlcMember_zVlPgpB4jwFe" title="Non controlling interest held in a subsidiary"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--BTBXioLlcMember_zeIV8k9bT1Hg" title="Non controlling interest held in a subsidiary">30</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_908_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_znHpKKDKQXD" title="Equity interest owned by the company"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zGbrSp8KYEqf" title="Equity interest owned by the company">99</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zJkk1QTC5Jfl" title="Non controlling interest held in a subsidiary"><span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zFOv7gb0XRGe" title="Non controlling interest held in a subsidiary">1</td><td style="text-align: left">%</td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements SCHEDULE OF EQUITY INTEREST AND NON CONTROLLING INTEREST IN SUBSIDIARIES <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 1pt solid; font-weight: bold">Subsidiary Name</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Equity % Owned</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Non-Controlling %</td><td style="padding-bottom: 1pt; 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_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zkVEcRsPDTA3" title="Equity interest owned by the company"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_z7oHIZapkJpk" title="Equity interest owned by the company">70</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_90E_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zIWZaDxjnNV7" title="Non controlling interest held in a subsidiary"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--SnailInnovationInstituteMember_zgJlUIjBYFD6" title="Non controlling interest held in a subsidiary">30</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">70</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--BTBXioLlcMember_zVlPgpB4jwFe" title="Non controlling interest held in a subsidiary"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--BTBXioLlcMember_zeIV8k9bT1Hg" title="Non controlling interest held in a subsidiary">30</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_908_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_znHpKKDKQXD" title="Equity interest owned by the company"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zGbrSp8KYEqf" title="Equity interest owned by the company">99</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20241231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zJkk1QTC5Jfl" title="Non controlling interest held in a subsidiary"><span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_dp_uPure_c20231231__srt--OwnershipAxis__custom--DonkeyCrewLimitedLiabilityCompanyMember_zFOv7gb0XRGe" title="Non controlling interest held in a subsidiary">1</td><td style="text-align: left">%</td></tr> </table>

0.70

0.30

0.70

0.30

0.99

0.01

Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Cash is available for use in current operations or other activities such as capital expenditures. Restricted cash and cash equivalents are time deposits, that are currently provided as a standby letter of credit to landlords. The Company’s policy for determining whether an item is treated as cash, or a cash equivalent, is based on its original maturity, liquidity, and risk profile. Investments with maturities of three months or less, are highly liquid and have insignificant risk are considered to be cash equivalents.

Accounts Receivable The Company generally records a receivable related to revenue when it has an unconditional right to invoice and receive payment. Accounts receivable are carried at original invoice amount less an allowance made for credit losses. The Company uses a combination of quantitative and qualitative risk 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. There were no credit losses recognized during the year ended December 31, 2024. During the year ended December 31, 2023, the Company’s allowance for credit losses increased from $<span id="xdx_90D_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__srt--RangeAxis__srt--MinimumMember_z03pHRtbNBFf" title="Allowance for credit losses">19,929 to $<span id="xdx_901_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember__srt--RangeAxis__srt--MaximumMember_z6KEjJ1yGtog" title="Allowance for credit losses">523,500 due to an increase in credit risk of one of the Company’s platform partners as a result of continued delays in payments. There was an additional $<span id="xdx_903_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--INDIEVIncMember_z3c275VoUNlf" title="Allowance for credit losses">77,928 recognized as credit losses due to the bankruptcy of the Company’s related party, INDIEV, Inc. (“INDIEV”) during the year ended December 31, 2023.

19929

523500

77928

Property, Plant and Equipment, Net Property, plant and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 90%; border-collapse: collapse; margin-right: auto"> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 49%; text-align: justify">Buildings</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; width: 49%; text-align: justify"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zFPLIOWC5GNa" title="Property, plant and equipment, useful life">39 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Building improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingImprovementsMember_zWAKu2mzLKzf" title="Property, plant and equipment, useful life">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Leasehold improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: justify">Lesser of the lease term or the estimated useful lives of the improvements, generally <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zY0ZWJ3LU9K5" title="Property, plant and equipment, useful life">5 to <span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_zSzWShzMfZOg" title="Property, plant and equipment, useful life">15 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Computer equipment and software</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zZcrWswTJWOb" title="Property, plant and equipment, useful life">3 to <span id="xdx_908_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zrXNq2fHu6J" title="Property, plant and equipment, useful life">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Furniture and fixtures</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zv2BQSGrizQ" title="Property, plant and equipment, useful life">3 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Auto and trucks</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_znNULzaLKy86" title="Property, plant and equipment, useful life">5 years</td></tr> </table> When assets are retired or disposed of, the cost and accumulated depreciation thereon are removed, and any resulting gains or losses are included in the consolidated statements of operations and comprehensive income (loss). Leasehold improvements are amortized using the straight-line method over the estimated life of the asset, not to exceed the length of the lease. Repairs and maintenance costs are expensed as incurred.

Property, plant and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 90%; border-collapse: collapse; margin-right: auto"> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 49%; text-align: justify">Buildings</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; width: 49%; text-align: justify"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zFPLIOWC5GNa" title="Property, plant and equipment, useful life">39 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Building improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingImprovementsMember_zWAKu2mzLKzf" title="Property, plant and equipment, useful life">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Leasehold improvements</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: justify">Lesser of the lease term or the estimated useful lives of the improvements, generally <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zY0ZWJ3LU9K5" title="Property, plant and equipment, useful life">5 to <span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_zSzWShzMfZOg" title="Property, plant and equipment, useful life">15 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Computer equipment and software</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zZcrWswTJWOb" title="Property, plant and equipment, useful life">3 to <span id="xdx_908_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zrXNq2fHu6J" title="Property, plant and equipment, useful life">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Furniture and fixtures</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zv2BQSGrizQ" title="Property, plant and equipment, useful life">3 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Auto and trucks</td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom"> </td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; vertical-align: bottom; text-align: justify"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_znNULzaLKy86" title="Property, plant and equipment, useful life">5 years</td></tr> </table>

P39Y

P7Y

P5Y

P15Y

P3Y

P5Y

P3Y

P5Y

Foreign Currency The functional currency for our foreign operations is primarily the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using exchange rates for assets and liabilities at the balance sheet date and average prevailing exchange rates for the period for revenue and expense accounts. Adjustments resulting from the translation are included in accumulated other comprehensive loss. Realized and unrealized transaction gains and losses arising from transactions denominated in foreign currencies different than the relevant functional currency are included in our consolidated statements of operations and comprehensive income (loss) in the period in which they occur. Foreign currency transaction gains and (losses) were $11,686 and ($68,180) during the twelve months ended December 31, 2024 and 2023, respectively.

11686

-68180

Intangible Assets – License Usage Rights The Company enters into license agreements with third-party developers and related party developers that require the Company to make payments for license usage rights and game development and production services. These license agreements grant the Company the exclusive publishing and distribution rights to game titles as well as, in some cases, the underlying intellectual property rights. These license agreements also specify the payment schedules, royalty rates and the relevant licensing period. The Company capitalizes the cost of license usage rights as intangible assets and amortizes them over the terms of the respective licensing rights. The Company capitalized $<span id="xdx_90A_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--LicenseUsageRightsMember_zGwyfHLVs2gl" title="Intangible assets, net">420,000 in license usage rights during the twelve months ended December 31, 2024 which are included within intangible assets, net, within the consolidated balance sheets. There were no such acquisitions during the twelve months ended December 31, 2023.

420000

Film Costs, net The Company capitalizes costs to produce short videos in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 926, including direct production costs, production overhead, interest, acquisition costs and development costs. The Company will account for each episodic series as a unit for which capitalized film costs will be amortized by the Company using the individual-film forecast-computation method. Each reporting period the Company will reassess its estimate of ultimate revenues used to determine the amortization rate for each episodic series. If the estimate is revised, the Company will account for the change prospectively. The Company will then remeasure the amortization based on the portion of ultimate revenues that have been recognized and that are yet to be recognized. Unamortized film costs shall be tested for impairment whenever events or changes in circumstances indicate that fair value of the film may be less than its unamortized film costs. If the fair value of an episodic series is less than its unamortized film costs, the Company will write off the excess amount. The Company groups its film and content rights by monetization strategy. As of December 31, 2024 and 2023, $1,512,960 and $0 of film costs are capitalized and included in other noncurrent assets in the accompanying consolidated balance sheets.

1512960

Fair Value Measurements The Company follows FASB ASC Topic 820, Fair Value Measurements. ASC 820 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. ASC 820 establishes a hierarchy of valuation inputs based on the extent to which the inputs are observable in the marketplace. Observable inputs reflect market data obtained from sources independent of the reporting entity and unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by the Company for financial instruments measured at fair value. The three levels of inputs are as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1: Quoted prices in active markets for identical assets or liabilities that the Company has an ability to access as of the measurement date.</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2: Inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the same term of the assets or liabilities.</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">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements 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 receivables, payables, and other amounts arising out of the normal course of business approximate their fair value due to their short maturities or economic substance. The carrying amount of the Company’s short-term and long-term borrowings, which are considered level 2 liabilities, approximates fair value based on current rates and terms available to the Company for similar debt. The Company’s promissory note has a fixed rate until June 2026, then a floating rate that approximates the Wall Street Journal Prime Rate plus 0.50%. The Company considers the carrying amount of the loan to approximate fair value as the discounted cost in comparison to market rates would not be materially different than the cost to acquire a loan with similar terms. See Note 17 – Equity for the fair value disclosures related to the Company’s convertible notes, and the Company’s warrant liability and derivative instruments. The Company does not have any other assets or liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2024 and 2023.

0.0050

<p id="xdx_84F_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsIncludingIntangibleAssetsPolicyPolicyTextBlock_z2NjPbVzncbi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Amortizable Intangibles and Other Long-lived Assets The Company’s long-lived assets and other assets consisting of property and equipment and purchased intangible assets, are reviewed for impairment in accordance with the guidance of FASB Topic ASC 360, Property and Equipment. Intangible assets subject to amortization are carried at cost less accumulated amortization and amortized over the estimated useful life in proportion to the economic benefits received. The Company evaluates the recoverability of definite-lived intangible assets and other long-lived assets in accordance with ASC Subtopic 360-10, which generally requires the assessment of these assets for recoverability when events or circumstances indicate a potential impairment exists. The Company considers certain events and circumstances in determining whether the carrying value of identifiable intangible assets and other long-lived assets, other than indefinite lived intangible assets, may not be recoverable including, but not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; and changes in the Company’s business strategy. If the Company determines that the carrying value may not be recoverable, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group to determine whether an impairment exists. If an impairment is indicated based on a comparison of the asset groups’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. There can be no assurance, however, that market conditions will not change or demand for the Company’s products under development will continue. Either of these could result in future impairment of long-lived assets. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our consolidated reporting results and financial positions.

Income Taxes Income taxes are provided for the tax effects of transactions reported in the Consolidated Financial Statements and consisted of taxes currently due and deferred taxes. Deferred taxes are recognized for the differences between the basis of assets and liabilities for financial statement and income tax purposes. The Company follows FASB Topic ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. FASB ASC 740-10-25 provides criteria for the recognition, measurement, presentation, and disclosure of uncertain tax positions. The Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the 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 long-term accrued expenses on the accompanying consolidated balance sheets in the amount of $265,251 and $254,731, as of December 31, 2024 and 2023, respectively. The Company accrues and recognizes interest and penalties related to unrecognized tax benefits in operating expenses. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

265251 254731

Concentration of Credit Risk and Significant Customers The Company maintains cash balances at several major financial institutions. While the Company attempts to limit credit exposure with any single institution, balances often exceed insurable amounts. As of December 31, 2024 and 2023, the Company had deposits of $6,610,066 and $14,716,652, respectively, that were not insured by the Federal Deposit Insurance Corporation and are included in the cash and cash equivalents, and restricted cash and cash equivalents, in the accompanying consolidated balance sheets. The Company extends credit to various digital resellers and partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. The Company does not require collateral or other security to support financial instruments subject to credit risk. The Company performs ongoing credit evaluations of customers and maintains reserves for potentially uncollectible accounts. The Company has four customers as of December 31, 2024 and 2023, who accounted for approximately <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zzC54A6kEAf3">85% and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zzAfiJYa45Pd">95% of consolidated gross receivables, respectively. Among four customers as of December 31, 2024 and 2023, each customer accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zyllXQyntlC8">42%, <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zER55NYa8aZ">19%, <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zvBNVz4ySGs1">14% and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerFourMember_z2yyedHW0IBb">10% as of December 31, 2024, and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zQIsJ9QjuUY9">43%, <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_z5Uhv4Gpb6ai">20%, <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zP5fP2zgnHF6">16% and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerFourMember_zinrVirOUXhj">16% as of December 31, 2023 of the consolidated gross receivables outstanding. The Company had four customers in the year ended December 31, 2024, and three customers in the year ended December 31, 2023, that accounted for <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zj5synmabPal">46%, <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zx5wMEA5WYF2">15%, <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zIbfYJEaEUl4">14%, <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerFourMember_z48CiRlffGag">11%, and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zALYsE02LvN" title="Concentration percentage">42%, <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zYLiAl4dj1ac" title="Concentration percentage">18%, and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zE4NVEl9d61c" title="Concentration percentage">11% of the Company’s net revenue, respectively. The loss of these customers or declines in the forecasts of their accounts receivable collectability would have a significant impact on the Company’s financial performance. As of December 31, 2024, the Company had one vendor who accounted for approximately <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneVendorMember_zOTzu2ZUbFvg" title="Concentration risk percentage">36% of consolidated gross payables, respectively, and as of December 31, 2023 the Company had one vendor who accounted for approximately <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneVendorMember_z1za9XDK6GO2" title="Concentration risk percentage">69% of consolidated gross payables. The loss of these vendors could have a significant impact on the Company’s financial performance. The Company had one vendor, SDE, Inc., a related party, that accounted for <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SDEIncMember_zNMqLm3uWgwi" title="Concentration percentage">55% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20230101__20231231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--CostOfRevenuesAndOperatingExpensesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SDEIncMember_z6XTlniMx3se" title="Concentration percentage">51% of the Company’s combined cost of revenues and operating expenses during the years ended December 31, 2024 and 2023, respectively. Amounts payable to SDE are included in accounts receivable – related party and accounts payable - related parties in the consolidated balance sheets as of December 31, 2024 and 2023, respectively. The loss of SDE as a vendor would significantly and adversely affect the Company’s core business.

6610066

14716652

0.85

0.95

0.42

0.19

0.14

0.10

0.43

0.20

0.16

0.46

0.15

0.14

0.11

0.42

0.18

0.11

0.36

0.69

0.55

0.51

Leases The Company has a lease relating primarily to office facilities. The Company determines if an arrangement is or contains a lease at contract inception. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The lease liability is measured as the present value of the unpaid lease payments, and the right-of-use asset value is derived from the calculation of the lease liability. Lease payments include fixed and in-substance fixed payments, variable payments based on an index or rate, variable payments based on the level of services provided by the landlords of our leases, reasonably certain purchase options, and termination penalties. Variable lease payments related to the services provided by the landlords are non-lease components that are recognized as rent expenses as incurred. For leased assets with similar lease terms and asset types, the Company applied a portfolio approach in determining a single incremental borrowing rate for the leased assets. The Company uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments because the Company does not have the information necessary to determine the rate implicit in the lease. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The Company’s lease term includes any option to extend the lease when it is reasonably certain to be exercised based on considering all relevant factors. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Operating leases are included in operating lease right-of-use assets, net, current portion of operating lease liabilities, and operating lease liabilities, net of current portion on the consolidated balance sheets.

Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to simplify the application of GAAP for certain financial instruments with characteristics of liabilities and equity. The FASB decided to eliminate certain accounting models to simplify the accounting for convertible instruments, reduce complexity for preparers and practitioners, and improve the decision usefulness and relevance of the information provided to financial statement users. The FASB 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 adopted this standard on January 1, 2024 and it did not have a material impact on the Company’s financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosure (Topic 280), to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities. The update does not change how a public entity identifies its operating segments, aggregates those operating segments, or applied the quantitative thresholds to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and the Company has adopted this standard as of the effective date. See Note 18 – Operating Segments for required disclosures.

Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to improve the transparency of income tax disclosures requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in the update requires that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is evaluating the impact of adopting the new standard. In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, though early adoption is permitted. The Company is evaluating the impact of adopting the new standard. In November 2024, the FASB issued ASU 2024-04, Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this update are effective for annual periods beginning after December 15, 2025, and interim reporting periods within show annual periods. Early adoption is permitted for all entities that have adopted the amendments in update 2020-06. The Company is evaluating the impact of adopting the new standard. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Employee Savings Plans The Company maintains a 401(k) for its United States based employees. The plan is offered to all eligible employees to make voluntary contributions. Employer contributions to the plan are reported under general and administrative costs in the amounts of $102,406 and $88,756 for the years ended December 31, 2024 and 2023, respectively.

102406

88756

Stock-Based Compensation The Company recognizes compensation cost for stock-based awards to employees based on the awards’ estimated grant-date fair value using a straight-line approach over the service period for which such awards are expected to vest. The Company accounts for forfeitures as they occur. The Company did not issue any restricted stock units (“Restricted Stock Units” or “restricted stock units”) during the years ended December 31, 2024, and 2023. The fair value of Restricted Stock Units is determined based on the quoted market price of our common stock on the date of grant. The Company’s 2022 Omnibus Incentive Plan (the “2022 Plan”) became effective upon the consummation of the IPO. The 2022 Omnibus Incentive allows us to grant options to purchase our common stock and to grant stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards and other cash-based awards and other stock-based awards to our employees, officers, and directors, up to a maximum of <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_c20231231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_z4aTJ87NR2J6" title="Number of shares authorized for issuance">5,718,000 shares. Stock options may be granted to employees and officers and non-qualified options may be granted to employees, officers, and directors, at not less than the fair market value on the date of grant. The number of shares of common stock available for issuance under the 2022 Plan will be increased annually on the first day of each fiscal year during the term of the 2022 Plan, beginning with the 2023 fiscal year, by an amount equal to the lesser of (a) <span id="xdx_907_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20231231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_z2L76u9LOejc" title="Number of shares available for issuance">5,718,000 shares, (b) <span id="xdx_90B_ecustom--ShareBasedCompensationAnnualIncreaseOfSharesReserveForIssuancePercentToOutstandingSharesOnFullyDilutedBasis_iI_dp_uPure_c20231231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zwfrq7kQzma1" title="Annual increase in shares reserve for issuance (as a percent)">1% of the shares of the Company’s Class B common stock outstanding (on a fully diluted basis) on the final day of the immediately preceding calendar year or (c) such smaller number of shares as determined by the Company’s board of directors. As of December 31, 2024 there were <span id="xdx_90D_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20241231__us-gaap--PlanNameAxis__custom--OmnibusIncentivePlanTwentyTwentyTwoPlanMember_z0mVjascvBHf" title="Number of shares available for issuance">4,508,239 shares reserved for issuance under the 2022 Plan.

5718000

0.01

4508239

Restricted Stock Units The Company granted restricted stock units under our 2022 Omnibus Incentive Plan to employees and directors. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units is typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Warrants The Company accounts for Warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the Warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the Warrants meet all of the requirements for equity classification under ASC 815, including whether the Warrants are indexed to the Company’s own shares of Class A common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the Warrants are outstanding. For issued or modified Warrants that meet all of the criteria for equity classification, the Warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified Warrants that do not meet all the criteria for equity classification, the Warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the Warrants are recognized as a non-cash gain or loss on the statements of operations. Each of the outstanding warrants is convertible on a one-for-one basis into the Company’s common stock and are fully exercisable as of December 31, 2024. A summary of our outstanding warrants as of December 31, 2024 is included below: SUMMARY OF OUTSTANDING WARRANTS <table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Number Outstanding</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Exercise Price</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Class</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Expiration Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; font-size: 10pt; text-align: left">Equity line of credit warrants</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_zpTFNgM306me" style="width: 14%; font-size: 10pt; text-align: right" title="Number outstanding">334,314</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 14%; font-size: 10pt; text-align: right">1.50</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: right">Liability</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: right">August 24, 2028</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Convertible notes warrants</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98E_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--ConvertibleNotesWarrantsMember_z919DwvCiCya" style="font-size: 10pt; text-align: right" title="Number outstanding">1,405,470</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">.84</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">Liability</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">November 24, 2028</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Underwriters warrants</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--UnderwriterWarrantsMember_zrRGuzoNBp3k" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="Number outstanding">120,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: right">6.25</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Equity</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">November 9, 2025</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total warrants:</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_987_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231_zaCUqMwWIryl" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Number outstanding">1,859,784</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> SUMMARY OF OUTSTANDING WARRANTS <table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Number Outstanding</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Exercise Price</td><td style="padding-bottom: 1pt; font-size: 10pt; font-weight: bold"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Class</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Expiration Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 28%; font-size: 10pt; text-align: left">Equity line of credit warrants</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_zpTFNgM306me" style="width: 14%; font-size: 10pt; text-align: right" title="Number outstanding">334,314</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 14%; font-size: 10pt; text-align: right">1.50</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: right">Liability</td><td style="width: 2%; font-size: 10pt"> </td> <td style="width: 16%; font-size: 10pt; text-align: right">August 24, 2028</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Convertible notes warrants</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98E_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--ConvertibleNotesWarrantsMember_z919DwvCiCya" style="font-size: 10pt; text-align: right" title="Number outstanding">1,405,470</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">.84</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">Liability</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">November 24, 2028</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Underwriters warrants</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--UnderwriterWarrantsMember_zrRGuzoNBp3k" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="Number outstanding">120,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: right">6.25</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Equity</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">November 9, 2025</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total warrants:</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td><td id="xdx_987_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20241231_zaCUqMwWIryl" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Number outstanding">1,859,784</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

334314

1.50

2028-08-24

1405470

0.84

2028-11-24

120000

6.25

2025-11-09

1859784

Share Repurchase Program On November 10, 2022, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to $<span id="xdx_909_esrt--StockRepurchaseProgramAuthorizedAmount1_iI_pn6n6_c20221110__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zOODRQUZg3I7" title="Shares authorized for repurchase">5 million of outstanding shares of Class A common stock of the Company, subject to ongoing compliance with the Nasdaq listing rules. The program does not have a fixed expiration date. Repurchased shares are accounted for at cost and reported as a reduction of equity in the consolidated balance sheets under treasury stock. <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesTreasuryStockReissued_do_c20240101__20241231__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_ziNv47KyOEu3" title="Number of treasury stock sold"><span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesTreasuryStockReissued_do_c20230101__20231231__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z0qFnOIRynb5" title="Number of treasury stock sold">No treasury stock was sold during the years ended December 31, 2024 and 2023. As of December 31, 2024 and 2023, <span id="xdx_908_eus-gaap--TreasuryStockSharesAcquired_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zfdCkRo2AhAc" title="Number of shares repurchased"><span id="xdx_90B_eus-gaap--TreasuryStockSharesAcquired_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zpD78fuOhtVk" title="Number of shares repurchased">1,350,275 shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $<span id="xdx_902_eus-gaap--TreasuryStockValueAcquiredCostMethod_pn5n6_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zrFaizxaZZm8" title="Aggregate purchase price of shares repurchased"><span id="xdx_90B_eus-gaap--TreasuryStockValueAcquiredCostMethod_pn5n6_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zZARt0rn0M4j" title="Aggregate purchase price of shares repurchased">3.7 million. The average price paid per share was $<span id="xdx_907_eus-gaap--TreasuryStockAcquiredAverageCostPerShare_pid_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zZgIvJWoQ8w4" title="Average price paid per share for repurchase of shares"><span id="xdx_907_eus-gaap--TreasuryStockAcquiredAverageCostPerShare_pid_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_z8FcW8yS8xnl" title="Average price paid per share for repurchase of shares">2.72 and approximately $<span id="xdx_90B_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zbAA4v6kt5Og" title="Shares remain available for repurchase, amount"><span id="xdx_904_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--PlanNameAxis__custom--ShareRepurchaseProgramMember_zlE2PVGDmFhb" title="Shares remain available for repurchase, amount">1.3 million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

5000000

1350275

3700000

2.72

1300000

Earnings (loss) Per Share Earnings (loss) per share (“EPS”) is calculated by dividing the net income (loss) that is applicable to the common stockholders for the period by the weighted average number of shares of common stock during that period. The diluted EPS for the period is calculated by dividing the net earnings (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 more information see Note 16 Earnings (Loss) Per Share.

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

NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of revenue Timing of recognition The Company recognizes revenue at a point in time for performance obligations that are met at the time of sale or at the time of a release. The Company recognizes revenue over a period based on the estimated service period of the product and additional performance obligations met over time for technical support. Net revenue by timing of recognition during the years ended December 31, 2024 and 2023 were as follows: SCHEDULE OF DISAGGREGATION OF REVENUE <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zmzCAObY5f45" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zBsCTIHlv002" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--TimingOfTransferOfGoodOrServiceAxis__us-gaap--TransferredOverTimeMember_zVxFBmRd2VFg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Over time</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,520,499</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,437,618</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--TimingOfTransferOfGoodOrServiceAxis__us-gaap--TransferredAtPointInTimeMember_z0gO8xfK2gX2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Point in time</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">79,946,548</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">54,464,480</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zBJ9KyG6ra8h" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Geography The Company attributes net revenue to geographic regions based on platform location. Net revenue by geographic region for the years ended December 31, 2024 and 2023 were as follows: <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zxf3Esj13o5g" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zRPN9khqehK" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__country--US_zrljbqbCXeq9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">73,117,378</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">53,577,666</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__srt--EuropeMember_zPzj5ulyODHe" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Europe</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">9,207,537</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">5,470,504</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_z4gSC1m5IvAf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other international</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,142,132</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,853,928</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zvD5NDjmU3oh" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Platform Net revenue by platform for the years ended December 31, 2024 and 2023 were as follows: <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zL8s5REAppKd" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zxHAPM9iMhl5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ConsoleMember_z3LVRbx4XJbb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Console</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">35,791,684</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">26,628,037</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PcMember_zbzXhhePwK21" style="vertical-align: bottom; background-color: White"> <td>PC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,659,044</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,402,330</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--MobileMember_z3kraYbw0Ty5" 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">4,632,413</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,830,671</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PhysicalRetailAndOtherMember_zqJbwzbqreb1" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> Physical retail and other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,383,906</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,041,060</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zRrZ4o1TYffb" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Our net revenues through our top four platform providers, as a proportion of our total net revenue, for the years ended December 31, 2024 and 2023 were as follows: <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="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zhqoFEsysF96" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zN3otEP9KuF3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformOneMember_zzLeop5yOhv2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Platform 1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">39,217,130</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">25,647,528</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformTwoMember_zYHzzM3CP9G" style="vertical-align: bottom; background-color: White"> <td>Platform 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,434,911</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,101,190</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformThreeMember_z8hDqiOkKrFd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Platform 3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21,056,125</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,224,100</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformFourMember_z7mATFgF8JOa" style="vertical-align: bottom; background-color: White"> <td>Platform 4</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,298,946</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,288,488</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--ServiceOtherMember_zf9O4a5J8328" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">All Other Revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,459,935</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,640,792</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_z7Kx4hOP2ytc" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Distribution channel Our products are delivered through digital online services (digital download, online platforms, and cloud streaming), mobile, and retail distribution and other. Net revenue by distribution channel for the years ended December 31, 2024 and 2023 was as follows: <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zmNbvAtqZZ7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zPPSwn7A2AGh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerDigitalOnlineServiceMember_z1K5d2cYeKd1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Digital</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">76,450,728</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">53,030,367</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerMobileSaleMember_zB6HQ3nwAQ2b" style="vertical-align: bottom; background-color: White"> <td>Mobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,632,413</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,830,671</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__us-gaap--SalesChannelThroughIntermediaryMember_zBoSrcYwarA2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Physical retail and other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,383,906</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,041,060</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_z8greF8BsM7f" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As discussed in Note 15, the Company recognized the $1.2 million payment related to the Angela Games settlement upon satisfaction of performance obligations included in the contract. This amount is included in other revenues for the year ended December 31, 2024. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Deferred Revenue The Company records deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations; reductions to deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of its performance obligations, which were in the ordinary course of business. As of December 31, 2024, the balance of deferred revenue was $25.5 million, of which $24.3 million is due to non-refundable payments. The Company is expecting to recognize $17.8 million of non-refundable payments in the next <span id="xdx_901_ecustom--ContractWithCustomerLiabilityRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod_dtM_c20240101__20241231__srt--ProductOrServiceAxis__custom--DLCAndARKIPMember__srt--RangeAxis__srt--MinimumMember_zd8pcDLiU75g">12 to <span id="xdx_904_ecustom--ContractWithCustomerLiabilityRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod_dtM_c20240101__20241231__srt--ProductOrServiceAxis__custom--DLCAndARKIPMember__srt--RangeAxis__srt--MaximumMember_zGVZ2RM7JvKa">60 months through the release of DLC’s and additional ARK titles. The remaining $3.9 million of current non-refundable deferred revenues and $2.6 million of long term non-refundable deferred revenue will be recognized as revenue primarily on a straight-line basis over the next 60 months, based on our estimates of technical support obligations, the usage of consumable virtual goods and estimated period of time an end user will play the game. The Company’s refundable deferred revenue consists of $1.1 million in advance payments received in accordance with the agreement the Company has made with its retail distributor. Activities in the Company’s deferred revenue as of December 31, 2024 and 2023 were as follows: SCHEDULE OF DEFERRED REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Deferred revenue, beginning balance in advance of revenue recognition billing</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ContractWithCustomerLiability_iS_c20240101__20241231_zkRBPcV3i5Yg" style="width: 16%; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">34,316,706</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--ContractWithCustomerLiability_iS_c20230101__20231231_zMAYpTgvnbvl" style="width: 16%; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">9,551,446</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Revenue recognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_iN_di_c20240101__20241231_zZt55OPajFZ7" style="text-align: right" title="Revenue recognized">(18,506,635</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_iN_di_c20230101__20231231_zgEHZTNnDBP5" style="text-align: right" title="Revenue recognized">(6,437,618</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Revenue deferred</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--ContractWithCustomerLiabilityAddition_c20240101__20241231_zExcTWJAeG7" style="border-bottom: Black 1pt solid; text-align: right" title="Revenue deferred">9,657,376</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ContractWithCustomerLiabilityAddition_c20230101__20231231_zGULkoE1Kflg" style="border-bottom: Black 1pt solid; text-align: right" title="Revenue deferred">31,202,878</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred revenue, ending balance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ContractWithCustomerLiability_iE_c20240101__20241231_zwhFTQkc5Sx8" style="text-align: right" title="Deferred revenue, ending balance">25,467,447</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiability_iE_c20230101__20231231_z0k8lB7KOZu6" style="text-align: right" title="Deferred revenue, ending balance">34,316,706</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ContractWithCustomerLiabilityCurrent_iNI_di_c20241231_zRtxL6zUS0qk" style="border-bottom: Black 1pt solid; text-align: right" title="Less short term portion">(3,947,559</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ContractWithCustomerLiabilityCurrent_iNI_di_c20231231_zxhdXMNRvBFb" style="border-bottom: Black 1pt solid; text-align: right" title="Less short term portion">(19,252,628</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Deferred revenue, long term</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_c20241231_zDnPz36OlB01" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred revenue, long term">21,519,888</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--ContractWithCustomerLiabilityNoncurrent_iI_c20231231_zevLzBdqlklk" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred revenue, long term">15,064,078</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

SCHEDULE OF DISAGGREGATION OF REVENUE <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zmzCAObY5f45" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zBsCTIHlv002" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--TimingOfTransferOfGoodOrServiceAxis__us-gaap--TransferredOverTimeMember_zVxFBmRd2VFg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Over time</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,520,499</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,437,618</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--TimingOfTransferOfGoodOrServiceAxis__us-gaap--TransferredAtPointInTimeMember_z0gO8xfK2gX2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Point in time</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">79,946,548</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">54,464,480</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zBJ9KyG6ra8h" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Geography The Company attributes net revenue to geographic regions based on platform location. Net revenue by geographic region for the years ended December 31, 2024 and 2023 were as follows: <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zxf3Esj13o5g" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zRPN9khqehK" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__country--US_zrljbqbCXeq9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">73,117,378</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">53,577,666</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__srt--EuropeMember_zPzj5ulyODHe" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Europe</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">9,207,537</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">5,470,504</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_z4gSC1m5IvAf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other international</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,142,132</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,853,928</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zvD5NDjmU3oh" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Platform Net revenue by platform for the years ended December 31, 2024 and 2023 were as follows: <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zL8s5REAppKd" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zxHAPM9iMhl5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ConsoleMember_z3LVRbx4XJbb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Console</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">35,791,684</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">26,628,037</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PcMember_zbzXhhePwK21" style="vertical-align: bottom; background-color: White"> <td>PC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">40,659,044</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,402,330</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--MobileMember_z3kraYbw0Ty5" 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">4,632,413</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,830,671</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PhysicalRetailAndOtherMember_zqJbwzbqreb1" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> Physical retail and other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,383,906</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,041,060</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zRrZ4o1TYffb" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Our net revenues through our top four platform providers, as a proportion of our total net revenue, for the years ended December 31, 2024 and 2023 were as follows: <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="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zhqoFEsysF96" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zN3otEP9KuF3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformOneMember_zzLeop5yOhv2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Platform 1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">39,217,130</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">25,647,528</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformTwoMember_zYHzzM3CP9G" style="vertical-align: bottom; background-color: White"> <td>Platform 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,434,911</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,101,190</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformThreeMember_z8hDqiOkKrFd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Platform 3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21,056,125</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,224,100</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--PlatformFourMember_z7mATFgF8JOa" style="vertical-align: bottom; background-color: White"> <td>Platform 4</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,298,946</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,288,488</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--ServiceOtherMember_zf9O4a5J8328" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">All Other Revenue</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,459,935</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,640,792</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_z7Kx4hOP2ytc" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Distribution channel Our products are delivered through digital online services (digital download, online platforms, and cloud streaming), mobile, and retail distribution and other. Net revenue by distribution channel for the years ended December 31, 2024 and 2023 was as follows: <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240101__20241231_zmNbvAtqZZ7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20230101__20231231_zPPSwn7A2AGh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerDigitalOnlineServiceMember_z1K5d2cYeKd1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Digital</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">76,450,728</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">53,030,367</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__custom--SalesChannelDirectlyToConsumerMobileSaleMember_zB6HQ3nwAQ2b" style="vertical-align: bottom; background-color: White"> <td>Mobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,632,413</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,830,671</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hus-gaap--ContractWithCustomerSalesChannelAxis__us-gaap--SalesChannelThroughIntermediaryMember_zBoSrcYwarA2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Physical retail and other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,383,906</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,041,060</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_z8greF8BsM7f" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,467,047</td><td style="padding-bottom: 2.5pt; text-align: left"></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">60,902,098</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4520499

6437618

79946548

54464480

84467047

60902098

73117378

53577666

9207537

5470504

2142132

1853928

84467047

60902098

35791684

26628037

40659044

26402330

4632413

5830671

3383906

2041060

84467047

60902098

39217130

25647528

12434911

11101190

21056125

12224100

2298946

3288488

9459935

8640792

84467047

60902098

76450728

53030367

4632413

5830671

3383906

2041060

84467047

60902098

1200000

25500000

24300000 17800000 P12M P60M 3900000 2600000 P60M

1100000

SCHEDULE OF DEFERRED REVENUE <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Deferred revenue, beginning balance in advance of revenue recognition billing</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ContractWithCustomerLiability_iS_c20240101__20241231_zkRBPcV3i5Yg" style="width: 16%; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">34,316,706</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ContractWithCustomerLiability_iS_c20230101__20231231_zMAYpTgvnbvl" style="width: 16%; text-align: right" title="Deferred revenue, beginning balance in advance of revenue recognition billing">9,551,446</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Revenue recognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_iN_di_c20240101__20241231_zZt55OPajFZ7" style="text-align: right" title="Revenue recognized">(18,506,635</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_iN_di_c20230101__20231231_zgEHZTNnDBP5" style="text-align: right" title="Revenue recognized">(6,437,618</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Revenue deferred</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--ContractWithCustomerLiabilityAddition_c20240101__20241231_zExcTWJAeG7" style="border-bottom: Black 1pt solid; text-align: right" title="Revenue deferred">9,657,376</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ContractWithCustomerLiabilityAddition_c20230101__20231231_zGULkoE1Kflg" style="border-bottom: Black 1pt solid; text-align: right" title="Revenue deferred">31,202,878</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred revenue, ending balance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ContractWithCustomerLiability_iE_c20240101__20241231_zwhFTQkc5Sx8" style="text-align: right" title="Deferred revenue, ending balance">25,467,447</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ContractWithCustomerLiability_iE_c20230101__20231231_z0k8lB7KOZu6" style="text-align: right" title="Deferred revenue, ending balance">34,316,706</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ContractWithCustomerLiabilityCurrent_iNI_di_c20241231_zRtxL6zUS0qk" style="border-bottom: Black 1pt solid; text-align: right" title="Less short term portion">(3,947,559</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ContractWithCustomerLiabilityCurrent_iNI_di_c20231231_zxhdXMNRvBFb" style="border-bottom: Black 1pt solid; text-align: right" title="Less short term portion">(19,252,628</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Deferred revenue, long term</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_c20241231_zDnPz36OlB01" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred revenue, long term">21,519,888</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--ContractWithCustomerLiabilityNoncurrent_iI_c20231231_zevLzBdqlklk" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred revenue, long term">15,064,078</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

34316706

9551446

18506635

6437618

9657376 31202878

25467447

34316706

3947559

19252628

21519888

15064078

NOTE 4 – CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS Cash equivalents are valued using quoted market prices or other readily available market information. The Company has restricted cash and cash equivalents of $935,000 and $1,116,196 as of December 31, 2024 and 2023, respectively. The amounts of restricted cash and cash equivalents held as of December 31, 2024 and 2023, are to secure the standby letter of credit with landlords. On June 21, 2023, the Company amended its revolving loan and $5,273,391 of restricted cash and cash equivalents was released. The following table summarizes the components of the Company’s cash and cash equivalents, and restricted cash and cash equivalents as of December 31, 2024 and 2023: <p id="xdx_894_ecustom--ScheduleOfCashCashEquivalentsRestrictedCashAndCashEquivalentsTableTextBlock_ztk0bJFThsw6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">SUMMARY OF COMPONENTS OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20241231_z5gcAmEbcL02" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20231231_zI28YSKbhfv1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_maCCERCzPcA_zpBRCdFIZMgd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Cash and cash equivalents</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,303,944</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">15,198,123</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_maCCERCzPcA_zRpMggRbooUd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Restricted cash and cash equivalents</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">935,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,116,196</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents_iTI_mtCCERCzPcA_zcQWL4Z067T7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents, and restricted cash and cash equivalents</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,238,944</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">16,314,319</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

935000

1116196

5273391

<p id="xdx_894_ecustom--ScheduleOfCashCashEquivalentsRestrictedCashAndCashEquivalentsTableTextBlock_ztk0bJFThsw6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">SUMMARY OF COMPONENTS OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20241231_z5gcAmEbcL02" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20231231_zI28YSKbhfv1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_maCCERCzPcA_zpBRCdFIZMgd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Cash and cash equivalents</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,303,944</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">15,198,123</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RestrictedCashAndCashEquivalentsAtCarryingValue_iI_maCCERCzPcA_zRpMggRbooUd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Restricted cash and cash equivalents</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">935,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,116,196</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents_iTI_mtCCERCzPcA_zcQWL4Z067T7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents, and restricted cash and cash equivalents</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,238,944</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,314,319</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

7303944

15198123

935000

1116196

8238944

16314319

NOTE 5 – ACCOUNTS RECEIVABLE (PAYABLE) – RELATED PARTY Accounts receivable — related party represents receivables in the ordinary course of business attributable to certain mobile game revenues that, for administrative reasons, were collected by a related party and that the related party has not yet remitted back to the Company. Accounts receivable — related party is non-interest bearing and due on demand. The related party, SDE Inc. (“SDE”), is <span id="xdx_905_ecustom--RelatedPartyTransactionOwnershipPercentageWithRelatedParties_pid_dp_uPure_c20240101__20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember_z5u9Z4PALhS8" title="Related party transaction ownership percentage">100% owned and controlled by the wife of the Founder, Co-Chief Executive Officer, Chief Strategy Officer and Chairman of the Company. In January 2024, the Company entered into an offset agreement with SDE. The Company has the right to offset payables due to the related party for royalties, internet, server, and datacenter costs (“IDC”) and marketing costs as they are determinable, mutual, and the right is enforceable by law. The Company will offset $<span id="xdx_900_ecustom--AccountsPayableOffsetWithAccountsReceivablePerMonth_pn5n6_c20240101__20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember_z56eJ9Yf4Dja" title="Offset amount per month">0.5 million per month, or $<span id="xdx_90D_ecustom--AccountsPayableOffsetWithAccountsReceivablePerAnnum_pn5n6_c20240101__20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember_zKcdEl1OyHrk" title="Offset amount per annum">6.0 million annually, beginning in January 2024, until the receivable has been collected or offset in full. To reflect the timing of the offset agreement, a portion of the SDE receivable is presented as a long-term asset. During the years ended December 31, 2024 and 2023, the Company made cash payments to SDE in the amount of $43.5 million and $33.1 million, respectively and anticipates continuing to make cash payment to SDE in future years. Of the $<span id="xdx_907_eus-gaap--AccountsPayableCurrent_iI_pn5n6_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember__srt--ProductOrServiceAxis__us-gaap--RoyaltyMember_zCHTS5vHaXOj" title="Royalties">43.5 million paid to SDE in 2024, $<span id="xdx_906_eus-gaap--AccountsPayableCurrent_iI_pn5n6_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember__srt--ProductOrServiceAxis__us-gaap--LicenseMember_zs47qmEinLd2" title="Licenses">42.8 million were for royalties and licenses, and $<span id="xdx_902_eus-gaap--AccountsPayableCurrent_iI_pn5n6_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember__srt--ProductOrServiceAxis__custom--InternetMember_zJUUWHr6K91b" title="Internet">0.7 million were for internet, server and datacenter costs reported in the cost of revenue. Of the $<span id="xdx_90E_eus-gaap--AccountsPayableCurrent_iI_pn5n6_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember__srt--ProductOrServiceAxis__us-gaap--RoyaltyMember_zhRCfWCshTCf" title="Royalties">33.1 million paid to SDE in 2023, $<span id="xdx_90C_eus-gaap--AccountsPayableCurrent_iI_pn5n6_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember__srt--ProductOrServiceAxis__us-gaap--LicenseMember_z1Y2ZjjzNey4" title="Licenses">29.8 million were for royalties and licenses and $<span id="xdx_903_eus-gaap--AccountsPayableCurrent_iI_pn5n6_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEIncMember__srt--ProductOrServiceAxis__custom--InternetMember_z6qJ6e1xInq1" title="Internet">0.7 million were for internet, server and datacenter costs reported in the cost of revenue, $0.1 million for marketing costs, and $2.5 million was prepaid DLC development fee. As of December 31, 2024 and 2023, the outstanding balance of net accounts receivable from related party was as follows: <p id="xdx_898_ecustom--ScheduleOfRelatedPartyTransactionDueFromRelatedPartyCurrentTableTextBlock_z2N46eh7Ca75" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">SCHEDULE OF ACCOUNTS RECEIVABLE (PAYABLE) - RELATED PARTY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" id="xdx_49E_20241231_zLPOtvEs74Te" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" id="xdx_498_20231231_z2VlHHuPkQmh" style="border-bottom: Black 1pt solid; text-align: center">2023</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr id="xdx_407_eus-gaap--AccountsReceivableGrossCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zOIKU8Lo9gw9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accounts receivable – related party</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,500,592</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">13,500,592</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccountsPayableCurrent_iNI_di_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartySDEIncMember_zUf4cm6xvSb1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accounts payable – related party – SDE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,663,726</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,946,478</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--AccountsReceivableNet_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartySDEIncMember_zJJg0CmkZAJd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net accounts receivable, related party - SDE</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,836,866</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,554,114</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsReceivableNetNoncurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z6xzkxUrW6pa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accounts receivable – related party, net of current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,500,592</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,500,592</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--AccountsReceivablePayableNet_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartySDEIncMember_ztjzW6kLKrEl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net accounts receivable (payable), related party, current - SDE</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">2,336,274</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">(4,946,478</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements 1 500000 6000000.0 43500000 33100000

43500000

42800000

700000

33100000

29800000

700000

100000

2500000

<p id="xdx_898_ecustom--ScheduleOfRelatedPartyTransactionDueFromRelatedPartyCurrentTableTextBlock_z2N46eh7Ca75" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">SCHEDULE OF ACCOUNTS RECEIVABLE (PAYABLE) - RELATED PARTY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" id="xdx_49E_20241231_zLPOtvEs74Te" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" id="xdx_498_20231231_z2VlHHuPkQmh" style="border-bottom: Black 1pt solid; text-align: center">2023</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr id="xdx_407_eus-gaap--AccountsReceivableGrossCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zOIKU8Lo9gw9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accounts receivable – related party</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,500,592</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">13,500,592</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccountsPayableCurrent_iNI_di_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartySDEIncMember_zUf4cm6xvSb1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accounts payable – related party – SDE</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,663,726</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,946,478</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--AccountsReceivableNet_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartySDEIncMember_zJJg0CmkZAJd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net accounts receivable, related party - SDE</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,836,866</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,554,114</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccountsReceivableNetNoncurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z6xzkxUrW6pa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accounts receivable – related party, net of current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,500,592</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,500,592</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--AccountsReceivablePayableNet_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedPartySDEIncMember_ztjzW6kLKrEl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net accounts receivable (payable), related party, current - SDE</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,336,274</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,946,478</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

7500592

13500592

3663726

10946478

3836866

2554114

1500592

7500592

2336274 -4946478 NOTE 6 – PREPAID EXPENSES - RELATED PARTY On March 10, 2023, the Company amended its exclusive software license agreement with SDE relating to the ARK franchise. For DLC’s, the Company plans to release during the term of the agreement, the Company has the option to pay the $<span id="xdx_903_ecustom--AmountPrepaidUnderExclusiveSoftwareLicenseAgreement_pn5n6_c20230310__20230310__us-gaap--TypeOfArrangementAxis__custom--SoftwareLicenseAgreementMember__srt--ProductOrServiceAxis__custom--ARKSurvivalAscendedMember_zOUVemDEq414" title="Amount prepaid in advance">5.0 million DLC payment in whole or in part, when paid in advance; or in full, upon the DLC release. No payment for any DLC under this agreement will exceed $<span id="xdx_903_ecustom--MaximumAmountPayableUnderExclusiveSoftwareLicenseAgreement_iI_pn5n6_c20230310__us-gaap--TypeOfArrangementAxis__custom--SoftwareLicenseAgreementMember__srt--ProductOrServiceAxis__custom--ARKSurvivalAscendedMember_zDKYC2mIWC66" title="Maximum amount payable">5.0 million. During the year ended December 31, 2024, the Company made $1.7 million in prepaid royalty payments related to ARK: Survival Ascended DLC’s which have not yet been released. During the year ended December 31, 2023, the Company prepaid $2.5 million for exclusive license rights for an ARK: Survival Ascended DLC to SDE and $5.5 million in prepaid royalties related to ARK: Survival Ascended DLC’s which had not yet been released. Prepaid expenses — related party consisted of the following as of December 31, 2024 and 2023: SCHEDULE OF PREPAID EXPENSES - RELATED PARTY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zUx79GUj0Fje" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zYiOb6SveEh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--PrepaidRoyalties_iI_maPECANzjNo_zbzSIusfQKr7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Prepaid royalties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,378,594</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">6,086,406</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--PrepaidLicenses_iI_maPECANzjNo_z1RJU3WbBe0e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid licenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,500,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,500,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherPrepaidExpenseCurrent_iI_maPECANzjNo_zJ60HdqhA4F8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other prepaids</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">21,291</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">242,060</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PrepaidExpenseCurrentAndNoncurrent_iTI_mtPECANzjNo_zQb9vy7viHl5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses - related party, ending balance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,899,885</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,828,466</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PrepaidExpenseCurrent_iNI_di_znkFZB8L0Eqc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: short-term portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,521,291</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,044,404</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--PrepaidExpenseNoncurrent_iI_z7h2bLLkTl5h" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total prepaid expenses - related party, long-term</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">9,378,594</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">7,784,062</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The amount classified as short-term, as of December 31, 2024, and 2023, includes prepaid royalties for ARK: Survival Evolved DLC’s which have not yet been released and various operational software licenses obtained through SDE. 5000000.0 5000000.0

1700000

2500000 5500000 SCHEDULE OF PREPAID EXPENSES - RELATED PARTY <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zUx79GUj0Fje" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zYiOb6SveEh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--PrepaidRoyalties_iI_maPECANzjNo_zbzSIusfQKr7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Prepaid royalties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,378,594</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,086,406</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--PrepaidLicenses_iI_maPECANzjNo_z1RJU3WbBe0e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid licenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,500,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,500,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OtherPrepaidExpenseCurrent_iI_maPECANzjNo_zJ60HdqhA4F8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other prepaids</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">21,291</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">242,060</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PrepaidExpenseCurrentAndNoncurrent_iTI_mtPECANzjNo_zQb9vy7viHl5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses - related party, ending balance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,899,885</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,828,466</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PrepaidExpenseCurrent_iNI_di_znkFZB8L0Eqc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: short-term portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,521,291</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,044,404</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--PrepaidExpenseNoncurrent_iI_z7h2bLLkTl5h" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total prepaid expenses - related party, long-term</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,378,594</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,784,062</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4378594

6086406

7500000 7500000

21291

242060

11899885

13828466

2521291

6044404

9378594

7784062

NOTE 7 – PREPAID EXPENSES AND OTHER CURRENT ASSETS In October 2024, the Company entered into a collaborative arrangement for the development and publishing of a new title with a third party developer. In accordance with the agreement, the Company will pay $1.5 million to the developer as prepaid royalties, to be recovered prior to any profit sharing on sales of the title. In addition to the financial responsibilities, the Company is responsible for the marketing, publishing, and distribution of the game and is providing substantial creative and technical input in the development of the game. The developer will retain ownership of the IP and is responsible for the overall development of the game. The game has not yet been released and accordingly is not reflected in the consolidated statements of operations and comprehensive income (loss). The Company made $0.5 million of the prepaid royalty payments in 2024, and the amount is capitalized in the other prepaids. Prepaid expenses and other current assets consisted of the following as of December 31, 2024 and 2023: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zTZGBWXWVFKk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20231231_zd1MrwThoXLl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_ecustom--PrepaidOtherReceivable_iI_pp0p0_maPEAOAzDKI_z91DyB0pH2Xl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Other receivables</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">549,103</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">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DeferredOfferingCosts_iI_pp0p0_maPEAOAzDKI_z3c88F5FIgik" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred offering costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105,411</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105,411</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherPrepaidExpenseCurrent_iI_pp0p0_maPEAOAzDKI_zwtDxLBY5BD2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other prepaids</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">550,270</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">70,967</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OtherAssetsCurrent_iI_pp0p0_maPEAOAzDKI_zkXrLNpLj5Pd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other current assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">641,240</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">463,315</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzDKI_zMGDLgyPhNZ3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total prepaid expenses and other current assets</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">1,846,024</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">639,693</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Other receivables consist of receivables related to Myth of Empires and our ARK animated series. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

In October 2024, the Company entered into a collaborative arrangement for the development and publishing of a new title with a third party developer. In accordance with the agreement, the Company will pay $1.5 million to the developer as prepaid royalties, to be recovered prior to any profit sharing on sales of the title. In addition to the financial responsibilities, the Company is responsible for the marketing, publishing, and distribution of the game and is providing substantial creative and technical input in the development of the game. The developer will retain ownership of the IP and is responsible for the overall development of the game. The game has not yet been released and accordingly is not reflected in the consolidated statements of operations and comprehensive income (loss). The Company made $0.5 million of the prepaid royalty payments in 2024, and the amount is capitalized in the other prepaids. Prepaid expenses and other current assets consisted of the following as of December 31, 2024 and 2023: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zTZGBWXWVFKk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20231231_zd1MrwThoXLl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_ecustom--PrepaidOtherReceivable_iI_pp0p0_maPEAOAzDKI_z91DyB0pH2Xl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Other receivables</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">549,103</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">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--DeferredOfferingCosts_iI_pp0p0_maPEAOAzDKI_z3c88F5FIgik" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred offering costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105,411</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105,411</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherPrepaidExpenseCurrent_iI_pp0p0_maPEAOAzDKI_zwtDxLBY5BD2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other prepaids</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">550,270</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">70,967</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OtherAssetsCurrent_iI_pp0p0_maPEAOAzDKI_zkXrLNpLj5Pd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other current assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">641,240</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">463,315</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pp0p0_mtPEAOAzDKI_zMGDLgyPhNZ3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total prepaid expenses and other current assets</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">1,846,024</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">639,693</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1500000

500000 549103

105411

550270

70967

641240

463315

1846024

639693

NOTE 8 – PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following as of December 31, 2024 and 2023: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT, NET <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20241231_znDihN8n9Y5h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20231231_z4DKNy1TlPW9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zgXdXDULZVPg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Building</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,874,049</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,874,049</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandMember_zbHccEoaZIJ3" style="vertical-align: bottom; background-color: White"> <td>Land</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,700,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,700,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingImprovementsMember_zwBanOqIDaNl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Building improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,010,218</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,010,218</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zLKJCBGiLaJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,537,775</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,537,775</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--TrucksMember_zCdrk2fRywP5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Autos and trucks</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">178,695</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">178,695</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_z25dXwffTG7e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Computer and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,809,214</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,809,214</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_ztGHV56GiLv5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411,801</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411,801</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz2m9_zbYUQFfblS61" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,521,752</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,521,752</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz2m9_z1ZmZXpDu4vk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,143,400</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,839,686</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz2m9_z4bIoDDiLH3b" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,378,352</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,682,066</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depreciation expense was $303,714 and $432,306 for the years ended December 31, 2024 and 2023, respectively. The Company did not have any disposals in the year ended December 31, 2024. During the year ended December 31, 2023, the Company disposed of $12,605 in computer equipment with an accumulated depreciation of $12,178. The total loss resulting from the disposal of the assets amounted to $427 for the year ended December 31, 2023 Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

Property and equipment, net consisted of the following as of December 31, 2024 and 2023: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT, NET <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: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20241231_znDihN8n9Y5h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20231231_z4DKNy1TlPW9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingMember_zgXdXDULZVPg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Building</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,874,049</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,874,049</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandMember_zbHccEoaZIJ3" style="vertical-align: bottom; background-color: White"> <td>Land</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,700,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,700,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--BuildingImprovementsMember_zwBanOqIDaNl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Building improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,010,218</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,010,218</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zLKJCBGiLaJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,537,775</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,537,775</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--TrucksMember_zCdrk2fRywP5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Autos and trucks</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">178,695</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">178,695</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_z25dXwffTG7e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Computer and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,809,214</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,809,214</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_ztGHV56GiLv5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411,801</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">411,801</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENz2m9_zbYUQFfblS61" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,521,752</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,521,752</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENz2m9_z1ZmZXpDu4vk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,143,400</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,839,686</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENz2m9_z4bIoDDiLH3b" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,378,352</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,682,066</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1874049

2700000

1010218

1537775

178695

1809214

411801

9521752

5143400

4839686

4378352

4682066

303714

432306

12605

12178

-427

NOTE 9 – INTANGIBLE ASSETS Intangible assets consist of game licenses, game software underlying intellectual property rights, game trademarks and other branding items. The Company amortizes the intangible assets over its useful life. <p id="xdx_891_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_ziaMICmC3KN5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following tables reflect all the intangible assets presented on the consolidated balance sheets as of December 31, 2024 and 2023: SCHEDULE OF INTANGIBLE ASSETS <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; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="16" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2024</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Weighted</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Carrying</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Accumulated</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Impairment</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Book</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Average</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Loss</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Value</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Useful Life</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">Software and license rights from related parties</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zvZAPbdkVFla" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,955,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_ze37Eb4FVjqj" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(136,665,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zOigUIKN2zR1" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zBKa2CHOyp58" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Net">290,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90D_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_zk4rpHj3Tgde" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_90A_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zbWyShn4XQZ5" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zt2y8hG7gJKc" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,420,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z3jU2sLPj97d" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,007,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98A_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zuavPTABv141" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zSRzxSk46U78" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Net">413,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zlnP6qdY5lxg" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Software</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zz460UHU4lWc" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zAStBcjcNEVc" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zkcFSXEFxkV6" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_90D_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MinimumMember_zRoFA5cBv0D3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_902_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MaximumMember_zb1LuyEhwGIi" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Trademark</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zZtAMN3Pr9V2" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zbuVH4YlzP38" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(10,717</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zJ9kHHCjrjN2" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">28</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z6Q5YECf8SPd" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12 years</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; text-align: left; padding-bottom: 1pt">In-progress patent</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zet1wQyWQWgg" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_z6aB64DreoE5" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </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-bottom: 2.5pt">Total:</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zth0Dkg0gqSi" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">140,708,415</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_z64JivjguLtl" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(139,734,501</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_989_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zf75LwtyUUul" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zqG6MtiiKWmf" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">973,914</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements <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; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="16" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2023</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Weighted</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Carrying</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Accumulated</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Impairment</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Book</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Average</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Loss</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Value</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Useful Life</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">Software and license rights from related parties</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zZWi7hjg0A58" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,665,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_ztNigPPxhrOf" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(136,665,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zuS4Xsc4M5C8" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zn51eG36fJM3" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Net">—</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90E_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_z8kpsfeHYPha" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_90D_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zCNoosGrLQ4k" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zd1OUtqIXIf9" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,000,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zHX6DFsaAoH9" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,000,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98A_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zZaMToqZMfE1" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z3otzPBKVXV3" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Net">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"><span id="xdx_906_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zOj3a3pH9fe6" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Software</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zYc6TTzOFDXf" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zaDH8cq56Gl1" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_909_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MinimumMember_zosVsGtJNKWk" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_908_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MaximumMember_zxr48X1vCrXb" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Trademark</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zeiPNcXypUh" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z5sA04oaNIV7" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(9,914</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zK2GSwL7zXIg" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">831</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_908_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zYFNGVXtYEl4" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12 years</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; text-align: left; padding-bottom: 1pt">In-progress patent</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zDl6fsERB8og" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zWKCWYCCbFJl" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </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-bottom: 2.5pt">Total:</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zFEKRseiM23b" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">139,998,415</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_z89cZlaIWbU1" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(139,726,698</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_988_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zW2E1l2ZCz0h" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zskrAJQGysrb" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">271,717</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table> Amortization expense was $7,804 and $1,384,862 for the years ended December 31, 2024 and 2023, respectively. These amounts are included in cost of revenues in the accompanying consolidated statements of operations and comprehensive income (loss). The weighted average remaining useful life for which amortization expense will be recognized is 3.0 years as of December 31, 2024. Future amortization expense of intangible assets is as follows: <p id="xdx_893_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zjNRvl2DXi3b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: justify">Years ending December 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20241231_zFsYWjhUxK83" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzVcy_zkATlCcS1swc" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 80%; text-align: justify">2025</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">142,028</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzVcy_zef1IZGvShg1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">142,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzVcy_z2W3rxPlkL6e" 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; text-align: justify">2027</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">142,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzVcy_zYIOiKGbMJYa" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2028</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">142,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_maFLIANzVcy_zwAvPCsYx7l2" 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; text-align: justify">2029</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">135,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_maFLIANzVcy_zMlGWmb9MO51" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzVcy_zxfZlHTgR1xa" 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; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">973,914</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<p id="xdx_891_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_ziaMICmC3KN5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following tables reflect all the intangible assets presented on the consolidated balance sheets as of December 31, 2024 and 2023: SCHEDULE OF INTANGIBLE ASSETS <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; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="16" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2024</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Weighted</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Carrying</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Accumulated</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Impairment</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Book</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Average</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Loss</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Value</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Useful Life</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">Software and license rights from related parties</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zvZAPbdkVFla" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,955,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_ze37Eb4FVjqj" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(136,665,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zOigUIKN2zR1" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zBKa2CHOyp58" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Net">290,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90D_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_zk4rpHj3Tgde" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_90A_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zbWyShn4XQZ5" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zt2y8hG7gJKc" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,420,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z3jU2sLPj97d" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,007,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98A_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zuavPTABv141" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zSRzxSk46U78" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Net">413,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zlnP6qdY5lxg" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Software</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zz460UHU4lWc" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zAStBcjcNEVc" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zkcFSXEFxkV6" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_90D_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MinimumMember_zRoFA5cBv0D3" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_902_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MaximumMember_zb1LuyEhwGIi" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Trademark</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zZtAMN3Pr9V2" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zbuVH4YlzP38" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(10,717</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zJ9kHHCjrjN2" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">28</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_90B_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20240101__20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z6Q5YECf8SPd" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12 years</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; text-align: left; padding-bottom: 1pt">In-progress patent</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zet1wQyWQWgg" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_z6aB64DreoE5" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </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-bottom: 2.5pt">Total:</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zth0Dkg0gqSi" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">140,708,415</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_z64JivjguLtl" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(139,734,501</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_989_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zf75LwtyUUul" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zqG6MtiiKWmf" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">973,914</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements <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; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="16" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2023</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Weighted</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Carrying</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Accumulated</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Impairment</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Book</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Average</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Loss</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Value</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Useful Life</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">Software and license rights from related parties</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zZWi7hjg0A58" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Gross">136,665,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_ztNigPPxhrOf" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(136,665,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zuS4Xsc4M5C8" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember_zn51eG36fJM3" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 9%; text-align: right" title="Finite-Lived Intangible Assets, Net">—</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 11%; text-align: center; padding-bottom: 2.5pt"><span id="xdx_90E_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MinimumMember_z8kpsfeHYPha" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_90D_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SoftwareAndLicenseRightsFromRelatedPartiesMember__srt--RangeAxis__srt--MaximumMember_zCNoosGrLQ4k" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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; text-align: left; padding-bottom: 2.5pt">License rights</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zd1OUtqIXIf9" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Gross">3,000,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zHX6DFsaAoH9" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(3,000,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_98A_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zZaMToqZMfE1" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_z3otzPBKVXV3" style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right" title="Finite-Lived Intangible Assets, Net">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"><span id="xdx_906_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--LicenseMember_zOj3a3pH9fe6" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Software</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zYc6TTzOFDXf" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zaDH8cq56Gl1" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(51,784</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_909_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MinimumMember_zosVsGtJNKWk" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">3 - <span id="xdx_908_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember__srt--RangeAxis__srt--MaximumMember_zxr48X1vCrXb" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">5 years</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">Trademark</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zeiPNcXypUh" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">10,745</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98A_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_z5sA04oaNIV7" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(9,914</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zK2GSwL7zXIg" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">831</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_908_eus-gaap--AcquiredFiniteLivedIntangibleAssetsWeightedAverageUsefulLife_dtY_c20230101__20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zYFNGVXtYEl4" title="Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life">12 years</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; text-align: left; padding-bottom: 1pt">In-progress patent</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zDl6fsERB8og" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zWKCWYCCbFJl" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </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-bottom: 2.5pt">Total:</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zFEKRseiM23b" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Gross">139,998,415</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_z89cZlaIWbU1" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Accumulated Amortization">(139,726,698</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_988_ecustom--FiniteLivedIntangibleAssetsImpairmentLoss_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zW2E1l2ZCz0h" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Impairment Loss">—</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20231231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--OtherIntangibleAssetsMember_zskrAJQGysrb" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Finite-Lived Intangible Assets, Net">271,717</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt"> </td></tr> </table>

136955000

-136665000

290000

P3Y

P5Y

3420000

-3007000

413000

P5Y

51784

-51784

P3Y

P5Y

10745

-10717

P12Y

270886

140708415

-139734501

973914

136665000

-136665000

P3Y

P5Y

3000000

-3000000

P5Y

51784

-51784

P3Y

P5Y

10745

-9914

831

P12Y

270886

139998415

-139726698

271717

7804

1384862

P3Y

<p id="xdx_893_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock_zjNRvl2DXi3b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS <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="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: justify">Years ending December 31,</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20241231_zFsYWjhUxK83" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_maFLIANzVcy_zkATlCcS1swc" 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: 80%; text-align: justify">2025</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">142,028</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_maFLIANzVcy_zef1IZGvShg1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">142,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_maFLIANzVcy_z2W3rxPlkL6e" 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; text-align: justify">2027</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">142,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_maFLIANzVcy_zYIOiKGbMJYa" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2028</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">142,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_maFLIANzVcy_zwAvPCsYx7l2" 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; text-align: justify">2029</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">135,000</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_maFLIANzVcy_zMlGWmb9MO51" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">270,886</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzVcy_zxfZlHTgR1xa" 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; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">973,914</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

142028

142000

135000

270886

973914

NOTE 10 – ACCOUNTS PAYABLE — RELATED PARTIES Accounts payable due to related parties represents payables in the ordinary course of business primarily for purchases of game distribution licenses, research and development costs and also the royalties due to Suzhou Snail and SDE. As of December 31, 2024 and 2023, the Company had $15,383,171 and $18,147,958, respectively, as accounts payable due to Suzhou Snail; and $2,336,274, as net accounts receivable due from SDE as of December 31, 2024, see Note 5 — Accounts Receivable (Payable) — Related Party. During the years ended December 31, 2024 and 2023, the Company incurred $192,213 and $279,699, respectively as license costs due to Suzhou Snail and included in cost of revenues. In March 2024, the Company entered into an outsource agreement with Suzhou Snail for the research and development of a new title. In consideration, the Company paid Suzhou Snail twelve equal monthly payments of $253,000, beginning on January 1, 2024. In July 2024, the Company entered into another software development, publishing and distribution agreement with Suzhou Snail. Under the terms of the agreements Suzhou Snail will develop a game for distribution by the Company and the Company will make $4.5 million in milestone payments during the development of the game and an ongoing royalty on sales of the game. The Company made $1.5 million in milestone payments under the July contract, in 2024. In December 2024, the Company entered into an agreement with Suzhou Snail for the development of an application to deliver short film content to end users. In accordance with the agreement Suzhou Snail will develop the app for release and will receive $290,000 as a development fee. As of December 31, 2024, the development fee has been capitalized as an intangible asset in the Company’s consolidated balance sheet and accrued as accounts payable – related parties. During the years ended December 31, 2024 and 2023, respectively, there were $<span id="xdx_904_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_c20240101__20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouSnailMember_zAsQthyLdfyb" title="Royalties and research and development costs">7,783,000 and $<span id="xdx_902_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_c20230101__20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouSnailMember_z3no3Vm4RCLl" title="Royalties and research and development costs">2,050,000 in payments to Suzhou Snail for royalties and research and development costs. The royalty payments are included in costs of revenues and research and development costs are included in operating expenses in the consolidated statements of operations and comprehensive income (loss). Accounts payable – related parties consisted of the following as of December 31, 2024 and 2023: <p id="xdx_89C_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zZDrtAC6Y7S9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF ACCOUNTS PAYABLE- RELATED PARTIES <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; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zliosY8J7Jp7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2024</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20231231_zhDLrLulcEr2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2023</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_40A_eus-gaap--AccountsPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouMember_zLffDfGD7ar3" 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: 60%; text-align: left">Accounts payable - Suzhou</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">52,998,084</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">55,762,870</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AccountsReceivableGrossCurrent_iNI_di_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouMember_zYQXV23uYhpa" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Less: accounts receivable - Suzhou</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(37,614,913</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(37,614,912</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--AccountsPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEMember_z02Rqkl8aEoa" 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; text-align: left; padding-bottom: 1pt">Accounts payable - SDE</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,946,478</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AccountsPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEMember_ztWgBFkFehl" 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; text-align: left; padding-bottom: 1pt">Accounts payable</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,946,478</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccountsPayableCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zVCFWAThPOra" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total accounts payable – related parties</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">15,383,171</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">23,094,436</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

15383171

18147958

2336274

192213

279699

253000

4500000

1500000 290000

7783000

2050000

<p id="xdx_89C_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zZDrtAC6Y7S9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF ACCOUNTS PAYABLE- RELATED PARTIES <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; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zliosY8J7Jp7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2024</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20231231_zhDLrLulcEr2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2023</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_40A_eus-gaap--AccountsPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouMember_zLffDfGD7ar3" 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: 60%; text-align: left">Accounts payable - Suzhou</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">52,998,084</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">55,762,870</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AccountsReceivableGrossCurrent_iNI_di_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouMember_zYQXV23uYhpa" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Less: accounts receivable - Suzhou</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(37,614,913</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">(37,614,912</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--AccountsPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEMember_z02Rqkl8aEoa" 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; text-align: left; padding-bottom: 1pt">Accounts payable - SDE</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,946,478</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AccountsPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SDEMember_ztWgBFkFehl" 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; text-align: left; padding-bottom: 1pt">Accounts payable</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,946,478</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccountsPayableCurrentAndNoncurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zVCFWAThPOra" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total accounts payable – related parties</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">15,383,171</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">23,094,436</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

52998084

55762870

37614913

37614912

4946478

15383171

23094436

<p id="xdx_801_ecustom--LoanPayableAndInterestPayableToRelatedPartiesTextBlock_zna4NLjpEAu1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 11 – LOAN AND INTEREST RECEIVABLE — RELATED PARTY In February 2021, the Company loaned $<span id="xdx_90A_eus-gaap--PaymentsToFundLongtermLoansToRelatedParties_c20210201__20210228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember_z6Wrbs2a14yb" title="Loan to related party">200,000 to a wholly owned subsidiary of Suzhou Snail. The loan bears <span id="xdx_901_eus-gaap--RelatedPartyTransactionRate_pid_dp_uPure_c20220201__20220228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SubsidiaryOfSuzhouSnailMember_zqFoNDfoqQYh" title="Percentage of loan interest">2.0% per annum interest, interest and principal were 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_907_ecustom--RelatedPartyLoanAmountAssumed_c20220201__20220228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouSnailMember__dei--LegalEntityAxis__custom--SnailDigitalTechnologyCo.Ltd.Member_zOVyzUSyOEtk" title="Loan amount and interest assumed">203,890. Subsequently, $<span id="xdx_900_ecustom--AmountOfLoanAndInterestReceivableOffset_c20220201__20220228__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SuzhouSnailMember_zJ1IWJ7aUDmh" title="Amount of loan and interest receivable offset">103,890 was offset against the loan and interest payable owed to Suzhou Snail on a separate note. The total amount of loan and interest receivable — related party was $<span id="xdx_903_eus-gaap--OtherReceivablesNetCurrent_iI_c20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z6E9qsZHbMPa" title="Loan and interest receivable - related party">105,759 and $<span id="xdx_90A_eus-gaap--OtherReceivablesNetCurrent_iI_c20231231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zGQD8Tnm1U51" title="Loan and interest receivable - related party">103,753, as of December 31, 2024 and 2023, respectively. The Company earned $2,005 and $2,000 in interest on the related party loans receivable during years ended December 31, 2024 and 2023, respectively. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

200000

0.020

203890 103890

105759

103753

2005

2000

NOTE 12 – REVOLVING LOAN, SHORT TERM NOTES AND LONG - TERM DEBT SCHEDULE OF LONG TERM DEBT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zxWtdSzSXWai" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2024</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20231231_z9KmAhc8P5vf" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2023</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_408_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zK3BzWdrt6i2" 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: 60%; text-align: justify">2021 Revolving Loan - On June 21, 2023, the Company amended its revolving loan agreement (“amended revolver”) and decreased the maximum balance from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90A_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20230620__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zbxi2OlBvq83" title="Line of credit">9,000,000 to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90F_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_z7We7zM5iJnh" title="Line of credit">6,000,000. The revolving maturity date of revolving loan is extended to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zcyVLmaDAj2f" title="Maturity date">June 30, 2025 and has an annual interest rate equal to the prime rate less <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_900_ecustom--DebtInstrumentBasisSpreadOnVariableRateLess_pid_dp_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zz2Xci6gOcMg" title="Prime rate">0.25%. At December 31, 2024, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20241231__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zucQ2utkM56h" title="Interest rate">7.25%. 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_90C_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20240101__20241231__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zDFHnUOqf7Pd" title="Minimum debt service coverage ratio">1.5 to 1. The Company was in compliance with the debt service coverage ratio for the trailing twelve month period ended December 31, 2024 and is expected to be in non-compliance within the next twelve months.</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">3,000,000</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">6,000,000</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td></tr> <tr id="xdx_400_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zQuI9bgAKDi4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2021 Promissory Note – 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_901_ecustom--DebtInstrumentPrincipalAmountPeriod_dtY_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zWCYeJs9aeGf" title="Principal amount">10 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_zdQerKclAdH4" title="Interest rate">3.5% for the first <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_ecustom--DebtInstrumentPrincipalAmountPeriod_dtY_c20210617__20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zcKbYnB7mN5h" title="Principal amount period">5 years, and then floating at Wall Street Journal rate from <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_907_eus-gaap--DebtInstrumentDescriptionOfVariableRateBasis_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zSlhEYy1PDjf" title="Description">years 6 to 10. The loan is secured by the Company’s building, with a carrying value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90A_eus-gaap--SecuredDebt_iI_pn5n6_c20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zXyp3Cp2goI6" title="Loan">4.2 million, and matures on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_eus-gaap--DebtInstrumentMaturityDate_dd_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zHiSi4a8mFU" title="Maturity date">June 30, 2031. The note is subject to a prepayment penalty. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_z4HkTlUvxWKe" title="Minimum debt service coverage ratio">1.5 to 1. The Company was in compliance with the debt covenants of this loan for the trailing twelve month period ended December 31, 2024 and is expected to be in non-compliance within the next twelve months.</td> <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: right">2,722,549</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,811,923</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_403_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z138fYS1qtnd" 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; text-align: justify">2022 Short Term Note - On January 26, 2022, the Company amended its revolving loan and long-term debt agreements to obtain an additional note with a principal balance of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_iI_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zVRhwVtvmMO7" title="Face amount">10,000,000 which was originally set to mature on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentMaturityDate_dd_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z0z1CIx3aoN8" title="Maturity date">January 26, 2023. Interest was equal to the higher of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zmPycCMObSIj" title="Interest rate">3.75% or the Wall Street Journal Prime Rate plus <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_uPure_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_zhl5FFDZCZhf" title="Prime rate">0.50%. The loan was secured by the Company’s assets. In the event of a default, all outstanding amounts under the note would bear interest at a default rate equal to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_ecustom--DebtInstrumentDefaultInterestRate_iI_pid_dp_uPure_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zIOWZRXYRoBh" title="Default rate">5% over the note rate. 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_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zWPVIV4l8aV5" title="Minimum debt service coverage ratio">1.5 to 1 and would be measured quarterly. In November 2022, the maturity was extended to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--DebtInstrumentMaturityDate_dd_c20221101__20221130__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zKIMbyfkT3Ya" title="Maturity date">January 26, 2024 and at December 31, 2023, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20240131__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zcS5rRuJSkze" title="Interest rate">8.25%. The Company repaid the balance of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_eus-gaap--RepaymentsOfDebt_pp0p0_c20240101__20240131__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zicdGUuLZnZ8">833,333 in January 2024.</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">833,333</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_400_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zsv3K5PRywY8" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2023 Convertible Notes – On August 24, 2023, the Company issued convertible notes at a <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_ecustom--ConvertibleNoteDiscountRate_pid_dp_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z9MxdlXKFrB9" title="Convertible notes rate">7.4% discount and a principal balance of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--ConvertibleNotesPayable_iI_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z57K4urkq2R9" title="Convertible notes">1,080,000. The notes had an interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zYlWKUo0sUgd" title="Interest rate">7.5%, were paid in consecutive monthly installments beginning <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--DebtInstrumentDateOfFirstRequiredPayment1_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z6Hg8LxPd0oa" title="Installment payments">February 24, 2024 and matured on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--DebtInstrumentMaturityDate_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_ziHgcqSylvbc" title="Maturity date">May 24, 2024. In the event of a default the interest rate was to be increased to the lower of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zmhfgMOVCb5c" title="Interest rate">16% per annum or the highest amount permitted by applicable law. The Company had the option to prepay the notes at any time and the note holders had the option to convert the notes, in whole or in part, at any time. The Company recognized a discount of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zouyR6BdiEm7" title="Debt">678,254 on the notes to account for the stated discount, the fair value of the warrants issued in connection with the notes and the costs of issuance. The discount was amortized using the effective interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zCjNBaqMlx4f" title="Effective interest rate">103.4%. The Company repaid $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--RepaymentsOfConvertibleDebt_c20240101__20241231__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zhb5CRO4Masl" title="Repaid">1,020,000 of the balance, and the investors converted $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--DebtConversionOriginalDebtAmount1_c20240101__20241231__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zy489uF93p9j" title="Debt">60,000 of the debt into class A common stock, during the twelve month period ended December 31, 2024.</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,080,000</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_402_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_z44KIo5XxRT5" 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-bottom: 1pt; text-align: justify">2023 Note Payable – In July 2023, the Company entered into a cooperation agreement with its internet, server and datacenter vendor. The Company agreed to make the vendor the official server host of Ark: Survival Evolved and future iterations and sequels of the game for a period of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_zbZCDXfYJ31e">7 years. In return the vendor has agreed to provide the Company with funds in cash of up to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_eus-gaap--ShortTermDebtRefinancedAmount_pn5n6_c20230701__20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_z149luQptRjl">3.0 million without discount and free of charges and costs to the Company. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_eus-gaap--DebtInstrumentFrequencyOfFee_pn5n6_c20230701__20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_zvZIz4ltZUC5">The funds are repaid based on 20% of the gross monthly ARK: Survival Ascended revenues. The Company has imputed interest at <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_zw6eEQhHxCwe">8.0% on draws made. If in default, the interest rate is levied on the outstanding balances at a rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_ecustom--DebtInstrumentDefaultInterestRate_iI_pid_dp_uPure_c20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_znikf3AseYvl">12.0% per annum. The Company repaid the remaining balance of the loan in February, 2024.</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,500,000</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_zaL4BIMliODb" 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: justify">Total debt</td> <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: right">5,722,549</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">12,225,256</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40F_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_znZ7Kt5NuTAh" 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: justify">Less: discount on convertible notes</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">282,639</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtCurrent_iI_zXJCgqjUa2Q3" 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: justify">Less: current portion of promissory note</td> <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: right">2,722,549</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,811,923</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40C_ecustom--RevolvingLoanPayableCurrent_iI_zvhdotkq1Dcc" 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: justify">Less: revolving loan</td> <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: right">3,000,000</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,000,000</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_401_eus-gaap--NotesPayableCurrent_iI_zx6QdSSJIvXb" 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: justify">Less: notes payable</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,333,333</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40D_eus-gaap--ConvertibleNotesPayableCurrent_iI_zvxcvpYMqHJf" 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: justify">Less: convertible notes, net of discount</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">797,361</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtNoncurrent_iI_zheFXOzNIZeb" 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: justify">Total long-term debt</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif">$</td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif">$</td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td></tr> </table> Total interest expense for the above debt and revolver loan amounted to $713,475 and $1,485,241 for the year ended December 31, 2024 and 2023, respectively. Accretion of the convertible notes and amortization of loan origination expenses and loan discounts of $345,837 and $462,284 are included as part of interest expense for the years ended December 31, 2024 and 2023, respectively. The Company has a weighted average interest rate of 5.6% and 8.1% on its short-term obligations as of December 31, 2024 and 2023, respectively. The Company was in compliance with its debt covenants related to the 2021 Revolving Note and 2021 Promissory note for the trailing twelve months ended December 31, 2024, however it is probable that the Company will fail the covenants within the next 12 months. As such, the Company has classified the long-term portion of its promissory note as current. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements <p id="xdx_893_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zhHP2C1ROTSd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides future minimum payments of its long-term debt based on contractual payments, as of December 31, 2024: SCHEDULE OF FUTURE MINIMUM PAYMENTS OF LONG TERM DEBT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Years ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zttquGc0nPF" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzCpa_z88aGpmNekrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,086,013</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzCpa_zDnC5pZSfUhg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">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--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maLTDzCpa_zlg08fxhACmj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">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_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLTDzCpa_zPx7SfytaqLi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95,414</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLTDzCpa_zsqocDnumVj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,101</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive_iI_maLTDzCpa_zJ8LR2J5JGTd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,260,577</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebt_iTI_mtLTDzCpa_zQvHSUX1UaK7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Long term debt</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">5,722,549</td><td style="padding-bottom: 2.5pt; text-align: left"></td></tr> </table>

SCHEDULE OF LONG TERM DEBT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zxWtdSzSXWai" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2024</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20231231_z9KmAhc8P5vf" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2023</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_408_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zK3BzWdrt6i2" 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: 60%; text-align: justify">2021 Revolving Loan - On June 21, 2023, the Company amended its revolving loan agreement (“amended revolver”) and decreased the maximum balance from $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90A_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20230620__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zbxi2OlBvq83" title="Line of credit">9,000,000 to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90F_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_c20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_z7We7zM5iJnh" title="Line of credit">6,000,000. The revolving maturity date of revolving loan is extended to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zcyVLmaDAj2f" title="Maturity date">June 30, 2025 and has an annual interest rate equal to the prime rate less <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_900_ecustom--DebtInstrumentBasisSpreadOnVariableRateLess_pid_dp_c20230621__20230621__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember__us-gaap--VariableRateAxis__us-gaap--PrimeRateMember_zz2Xci6gOcMg" title="Prime rate">0.25%. At December 31, 2024, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20241231__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zucQ2utkM56h" title="Interest rate">7.25%. 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_90C_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20240101__20241231__us-gaap--DebtInstrumentAxis__us-gaap--RevolvingCreditFacilityMember_zDFHnUOqf7Pd" title="Minimum debt service coverage ratio">1.5 to 1. The Company was in compliance with the debt service coverage ratio for the trailing twelve month period ended December 31, 2024 and is expected to be in non-compliance within the next twelve months.</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">3,000,000</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">6,000,000</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td></tr> <tr id="xdx_400_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zQuI9bgAKDi4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2021 Promissory Note – 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_901_ecustom--DebtInstrumentPrincipalAmountPeriod_dtY_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zWCYeJs9aeGf" title="Principal amount">10 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_zdQerKclAdH4" title="Interest rate">3.5% for the first <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_ecustom--DebtInstrumentPrincipalAmountPeriod_dtY_c20210617__20210617__srt--StatementScenarioAxis__custom--ForFirstFiveYearsMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zcKbYnB7mN5h" title="Principal amount period">5 years, and then floating at Wall Street Journal rate from <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_907_eus-gaap--DebtInstrumentDescriptionOfVariableRateBasis_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zSlhEYy1PDjf" title="Description">years 6 to 10. The loan is secured by the Company’s building, with a carrying value of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90A_eus-gaap--SecuredDebt_iI_pn5n6_c20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zXyp3Cp2goI6" title="Loan">4.2 million, and matures on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_eus-gaap--DebtInstrumentMaturityDate_dd_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_zHiSi4a8mFU" title="Maturity date">June 30, 2031. The note is subject to a prepayment penalty. Debt covenants of this loan require the Company to maintain a minimum debt service coverage ratio of at least <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_ecustom--MinimumRequirementOfDebtServiceCoverageRatioAsCovenant_c20210617__20210617__us-gaap--DebtInstrumentAxis__custom--PromissoryNote2021Member_z4HkTlUvxWKe" title="Minimum debt service coverage ratio">1.5 to 1. The Company was in compliance with the debt covenants of this loan for the trailing twelve month period ended December 31, 2024 and is expected to be in non-compliance within the next twelve months.</td> <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: right">2,722,549</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,811,923</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_403_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z138fYS1qtnd" 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; text-align: justify">2022 Short Term Note - On January 26, 2022, the Company amended its revolving loan and long-term debt agreements to obtain an additional note with a principal balance of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_iI_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zVRhwVtvmMO7" title="Face amount">10,000,000 which was originally set to mature on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90E_eus-gaap--DebtInstrumentMaturityDate_dd_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_z0z1CIx3aoN8" title="Maturity date">January 26, 2023. Interest was equal to the higher of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zmPycCMObSIj" title="Interest rate">3.75% or the Wall Street Journal Prime Rate plus <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentBasisSpreadOnVariableRate1_pid_dp_uPure_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember__us-gaap--VariableRateAxis__custom--WallStreetJournalPrimeRateMember_zhl5FFDZCZhf" title="Prime rate">0.50%. The loan was secured by the Company’s assets. In the event of a default, all outstanding amounts under the note would bear interest at a default rate equal to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_ecustom--DebtInstrumentDefaultInterestRate_iI_pid_dp_uPure_c20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zIOWZRXYRoBh" title="Default rate">5% over the note rate. 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_c20220126__20220126__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zWPVIV4l8aV5" title="Minimum debt service coverage ratio">1.5 to 1 and would be measured quarterly. In November 2022, the maturity was extended to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--DebtInstrumentMaturityDate_dd_c20221101__20221130__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zKIMbyfkT3Ya" title="Maturity date">January 26, 2024 and at December 31, 2023, the interest rate on this loan was <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20240131__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zcS5rRuJSkze" title="Interest rate">8.25%. The Company repaid the balance of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_eus-gaap--RepaymentsOfDebt_pp0p0_c20240101__20240131__us-gaap--DebtInstrumentAxis__us-gaap--ShortTermDebtMember_zicdGUuLZnZ8">833,333 in January 2024.</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">833,333</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_400_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zsv3K5PRywY8" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2023 Convertible Notes – On August 24, 2023, the Company issued convertible notes at a <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_ecustom--ConvertibleNoteDiscountRate_pid_dp_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z9MxdlXKFrB9" title="Convertible notes rate">7.4% discount and a principal balance of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--ConvertibleNotesPayable_iI_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z57K4urkq2R9" title="Convertible notes">1,080,000. The notes had an interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zYlWKUo0sUgd" title="Interest rate">7.5%, were paid in consecutive monthly installments beginning <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--DebtInstrumentDateOfFirstRequiredPayment1_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_z6Hg8LxPd0oa" title="Installment payments">February 24, 2024 and matured on <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--DebtInstrumentMaturityDate_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_ziHgcqSylvbc" title="Maturity date">May 24, 2024. In the event of a default the interest rate was to be increased to the lower of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_905_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_c20230824__20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zmhfgMOVCb5c" title="Interest rate">16% per annum or the highest amount permitted by applicable law. The Company had the option to prepay the notes at any time and the note holders had the option to convert the notes, in whole or in part, at any time. The Company recognized a discount of $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_903_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zouyR6BdiEm7" title="Debt">678,254 on the notes to account for the stated discount, the fair value of the warrants issued in connection with the notes and the costs of issuance. The discount was amortized using the effective interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20230824__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zCjNBaqMlx4f" title="Effective interest rate">103.4%. The Company repaid $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--RepaymentsOfConvertibleDebt_c20240101__20241231__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zhb5CRO4Masl" title="Repaid">1,020,000 of the balance, and the investors converted $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--DebtConversionOriginalDebtAmount1_c20240101__20241231__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleNotesPayableMember_zy489uF93p9j" title="Debt">60,000 of the debt into class A common stock, during the twelve month period ended December 31, 2024.</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">1,080,000</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_402_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_hus-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_z44KIo5XxRT5" 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-bottom: 1pt; text-align: justify">2023 Note Payable – In July 2023, the Company entered into a cooperation agreement with its internet, server and datacenter vendor. The Company agreed to make the vendor the official server host of Ark: Survival Evolved and future iterations and sequels of the game for a period of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_zbZCDXfYJ31e">7 years. In return the vendor has agreed to provide the Company with funds in cash of up to $<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_eus-gaap--ShortTermDebtRefinancedAmount_pn5n6_c20230701__20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_z149luQptRjl">3.0 million without discount and free of charges and costs to the Company. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_904_eus-gaap--DebtInstrumentFrequencyOfFee_pn5n6_c20230701__20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_zvZIz4ltZUC5">The funds are repaid based on 20% of the gross monthly ARK: Survival Ascended revenues. The Company has imputed interest at <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_901_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_zw6eEQhHxCwe">8.0% on draws made. If in default, the interest rate is levied on the outstanding balances at a rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPTkcgVEVSTSBERUJUIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_906_ecustom--DebtInstrumentDefaultInterestRate_iI_pid_dp_uPure_c20230731__us-gaap--DebtInstrumentAxis__us-gaap--NotesPayableOtherPayablesMember_znikf3AseYvl">12.0% per annum. The Company repaid the remaining balance of the loan in February, 2024.</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,500,000</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_405_eus-gaap--DebtLongtermAndShorttermCombinedAmount_iI_zaL4BIMliODb" 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: justify">Total debt</td> <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: right">5,722,549</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">12,225,256</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40F_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_znZ7Kt5NuTAh" 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: justify">Less: discount on convertible notes</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">282,639</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtCurrent_iI_zXJCgqjUa2Q3" 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: justify">Less: current portion of promissory note</td> <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: right">2,722,549</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,811,923</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40C_ecustom--RevolvingLoanPayableCurrent_iI_zvhdotkq1Dcc" 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: justify">Less: revolving loan</td> <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: right">3,000,000</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">6,000,000</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_401_eus-gaap--NotesPayableCurrent_iI_zx6QdSSJIvXb" 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: justify">Less: notes payable</td> <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: right">-</td> <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"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">2,333,333</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40D_eus-gaap--ConvertibleNotesPayableCurrent_iI_zvxcvpYMqHJf" 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: justify">Less: convertible notes, net of discount</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">797,361</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtNoncurrent_iI_zheFXOzNIZeb" 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: justify">Total long-term debt</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif">$</td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif">$</td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td></tr> </table>

9000000

6000000

2025-06-30

0.0025

0.0725

1.5 to 1

3000000

6000000

P10Y

0.035

P5Y

years 6 to 10

4200000

2031-06-30

1.5 to 1

2722549

2811923

10000000

2023-01-26

0.0375

0.0050

0.05 1.5 to 1

2024-01-26

0.0825

833333

0.074

1080000

0.075

2024-02-24

2024-05-24

0.16

678254

1.034

1020000

60000

1080000

P7Y

3000000.0

The funds are repaid based on 20% of the gross monthly ARK: Survival Ascended revenues.

0.080

0.120

1500000

5722549

12225256

282639

2722549

2811923

3000000 6000000

2333333

797361

713475

1485241

345837

462284

0.056

0.081

<p id="xdx_893_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zhHP2C1ROTSd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides future minimum payments of its long-term debt based on contractual payments, as of December 31, 2024: SCHEDULE OF FUTURE MINIMUM PAYMENTS OF LONG TERM DEBT <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 1pt solid; font-weight: bold; text-align: justify">Years ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20241231_zttquGc0nPF" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzCpa_z88aGpmNekrd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,086,013</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzCpa_zDnC5pZSfUhg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">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--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maLTDzCpa_zlg08fxhACmj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">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_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLTDzCpa_zPx7SfytaqLi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95,414</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLTDzCpa_zsqocDnumVj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">99,101</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive_iI_maLTDzCpa_zJ8LR2J5JGTd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,260,577</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebt_iTI_mtLTDzCpa_zQvHSUX1UaK7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Long term debt</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">5,722,549</td><td style="padding-bottom: 2.5pt; text-align: left"></td></tr> </table>

3086013

89115

92329

95414

99101

2260577

5722549

NOTE 13 – INCOME TAXES <p id="xdx_89E_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_zxjZGXZ7wRkj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The components of income (loss) before income taxes for the years ended December 31, 2024 and 2023 are as follows: SCHEDULE OF INCOME (LOSS) BEFORE INCOME TAXES <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> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20240101__20241231_z0ddnjrCWN9d" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20230101__20231231_zcyCF2Rc8qB" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic_maILFCOzJFO_zLb0g8IH4qmj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,233,247</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(11,666,676</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign_maILFCOzJFO_zQoZff36yvW1" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Foreign</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">225,952</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">171,600</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--IncomeLossFromContinuingOperationsBeforeIncomeTaxes_iT_mtILFCOzJFO_zraJEFnCLrD7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,459,199</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(11,495,076</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> <p id="xdx_89B_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_z9MqggvNGprl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The income tax provision (benefit) for the years ended December 31, 2024 and 2023 are as follows: SCHEDULE OF INCOME TAX PROVISION (BENEFIT) <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240101__20241231_zb1rRp1PDDpb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20230101__20231231_zulkY4afLQR3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Current:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CurrentFederalTaxExpenseBenefit_maCITEBzcGg_zwEPtTQfIL37" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">U.S. federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">872,061</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">112,344</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCITEBzcGg_zCJtDsMPu1y" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">417,447</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82,595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentForeignTaxExpenseBenefit_maCITEBzcGg_z9gQDecKz7Yb" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Foreign</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(87,783</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">49,373</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CurrentIncomeTaxExpenseBenefit_iT_mtCITEBzcGg_maITEBzt4P_zLunpSLPGDA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total current income taxes</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,201,725</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">244,312</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Deferred:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_maDITEBzGiS_zKXcms4PFFwk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(194,622</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,577,737</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_maDITEBzGiS_z9IaTf0BBXHh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">U.S. State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(374,979</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(67,227</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_maDITEBzGiS_zx8FCkHoO9T9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Foreign</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredIncomeTaxExpenseBenefit_iT_mtDITEBzGiS_maITEBzt4P_zWpkVuO2PV3l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total deferred income tax benefit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(569,601</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,644,964</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxExpenseBenefit_iT_mtITEBzt4P_zkaio39u7rGi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Income tax provision (benefit)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">632,124</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,400,652</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> The benefits for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21.0% to earnings before income taxes, as follows: <p id="xdx_89B_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zmZLIBrfDnI7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF PROVISION (BENEFITS) FOR INCOME TAXES RATE RECONCILIATION <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20240101__20241231_zLtXDHBO4J04" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20230101__20231231_zt3wXJAXMET8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_matEfrp_zX7hVLnyA8th" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Federal statutory income tax rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">21.00</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">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_40D_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_matEfrp_z4uAMLLGAYIc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11.94</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1.21</td><td style="text-align: left">)%</td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxContingencies_pid_dp_uPure_matEfrp_zFvE9hSZLC06" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>FIN 48</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.01</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.13</td><td style="text-align: left">%</td></tr> <tr id="xdx_40F_ecustom--EffectiveIncomeTaxRateReconciliationReturnToProvisionPercent_pid_dp_uPure_matEfrp_zsMIAw3C5bK5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Return to provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.08</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.78</td><td style="text-align: left">)%</td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationGiltiPercent_pid_dp_uPure_matEfrp_zc7fr8Zsk003" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>GILTI</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.90</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.43</td><td style="text-align: left">)%</td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationFdiiPercent_iN_pid_dpi_uPure_mstEfrp_zKiiYiGoKrZj" style="vertical-align: bottom; background-color: White"> <td>FDII</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6.80</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_matEfrp_zuO5NTvxzS23" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">State taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.86</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.10</td><td style="text-align: left">)%</td></tr> <tr id="xdx_40F_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_matEfrp_zib0Xb7DvpAb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Foreign withholding tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.19</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.43</td><td style="text-align: left">)%</td></tr> <tr id="xdx_40F_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseResearchAndDevelopment_pid_dp_uPure_matEfrp_zWrZRRoZmGth" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">R&D credit true-up</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12.10</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.76</td><td style="text-align: left">%</td></tr> <tr id="xdx_407_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_uPure_matEfrp_z4UefiQqX0nl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rate change</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5.36</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.02</td><td style="text-align: left">)%</td></tr> <tr id="xdx_403_ecustom--EffectiveIncomeTaxRateReconciliationPenalties_pid_dp_uPure_matEfrp_zvxo5IeGo7a2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Penalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.32</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.07</td><td style="text-align: left">)%</td></tr> <tr id="xdx_407_ecustom--EffectiveIncomeTaxRateReconciliationWarrantRevaluation_pid_dp_uPure_matEfrp_zFTYbfLCYhCi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant revaluation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11.38</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.06</td><td style="text-align: left">)%</td></tr> <tr id="xdx_401_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_pid_dp_uPure_matEfrp_z2tpl5Y719Q5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.30</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.09</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_404_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_uPure_mttEfrp_z2aRgYAwvlY6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Effective tax rate</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">25.72</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">20.88</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table> The Company recognized an income tax expense of $632,124 and income tax benefit of $2,400,652 for the years ended December 31, 2024 and 2023, respectively; and reflects a tax rate of 25.7% and 20.9%, respectively. As of December 31, 2024, the Company’s effective tax rate differed from the federal statutory rate of 21% primarily due to foreign research and development deduction, permanent differences, change in valuation allowance, and change in warrant valuation. <p id="xdx_89F_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zGz6ocg45hBg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities consisted of the following as of December 31, 2024 and 2023: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20241231_z1v0EcZZxC57" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20231231_zkyTHPh9Ejj2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets (noncurrent):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_maDTAGzVsN_zU4bZg3QKKj" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net operating losses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,414,780</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">9,941,478</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsDeferredIncome_iI_maDTAGzVsN_zyKwycDNf40k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,792,971</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,564,708</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwardsResearch_iI_maDTAGzVsN_zbjKeOO6eTQl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research and development credit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">945,554</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">664,877</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetsLeaseLiability_iI_maDTAGzVsN_zms2qg8bYFCa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Book lease liability (ASC 842)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">337,056</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">640,414</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--DeferredTaxAssetsFixedAndIntangiblesAssets_iI_maDTAGzVsN_zk3jA1dELKfc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fixed assets and intangibles</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">314,109</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">286,902</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_iI_maDTAGzVsN_zhiyYlFZp1s3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Section 174 capitalized research and experimental expenditures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,641,794</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,101,923</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetInterestCarryforward_iI_maDTAGzVsN_zTgiqJgzmuV4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest limitation carryforward</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">329,383</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_maDTAGzVsN_zOxqyf3VamYf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Stock based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">242</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">234,110</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsOther_iI_maDTAGzVsN_zzCLuZw7aPj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">907,859</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">960,471</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzVsN_ze8B3Xq4r6hh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total deferred tax assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17,354,365</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16,724,266</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred tax liabilities (noncurrent):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DeferredTaxLiabilitiesRightOfUseAssets_iNI_di_maDITLzEpV_zT23omZM2Aca" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Book ROU assets (ASC 842)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(287,017</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(533,369</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxLiabilitiesInvestmentInNoncontrolledAffiliates_iNI_di_maDITLzEpV_zjg9lFPpj7Hd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Basis difference in subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(820,883</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(799,595</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--DeferredIncomeTaxLiabilities_iNTI_di_mtDITLzEpV_zOpWgGzdFxfc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total deferred tax liabilities:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,107,900</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,332,964</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--DeferredTaxAssetsBeforeValuationAllowanceNet_iI_maDTALNzIKz_z95xx8eyJ0ik" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Long-term deferred tax asset, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,246,465</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,391,302</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTALNzIKz_z47R2kJ1glq8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,429,353</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,143,802</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iTI_mtDTALNzIKz_zAx8weFyffD8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</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">10,817,112</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">10,247,500</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Included in these consolidated financial statements are two entities that are not consolidated in the U.S. tax return filing due to one entity being less than 80% ownership by Snail Games USA Inc. and the other classified as pass-through entity. The Company maintained a total valuation allowance of $5,429,353 and $5,143,802 as of December 31, 2024 and 2023, respectively, the valuation allowance relates primarily to the net operating loss (“NOL”) of the non-includable entities mentioned above, which have had historical losses, and which management has assessed are not more likely than not to be able to realize those NOLs. The non-includable entities had a valuation allowance of $4,024,497 and $4,022,729 as of December 31, 2024 and 2023. The Company’s consolidated tax filing group had a domestic valuation allowance of $673,049 and $686,808 as of December 31, 2024 and 2023, respectively. The Company had a foreign valuation allowance of $731,807 and $434,265 as of December 31, 2024 and 2023, respectively. Overall, the Company’s valuation allowance had net increase by $285,551 during 2024, and $138,607 during 2023. The Company has assessed all available positive and negative evidence, including the results of recent operations, continued release of games and DLC’s, and projections of future taxable income. After evaluating the positive and negative evidence, management believes that the positive evidence above outweighs the negative evidence. Accordingly, the Company has concluded the realization of DTAs is more-likely-than-not, and no valuation allowance is required at this time for majority of the net deferred tax assets. In the event that negative evidence outweighs positive evidence in future periods, the Company may need to record additional valuation allowance, which could have a material impact on our financial position. The Company continues to maintain a valuation allowance against certain deferred tax assets that are not more likely than not to be realized. As of December 31, 2024, the non-includable entities have U.S. federal NOL carryforwards of $<span id="xdx_908_ecustom--OperatingLossCarryforwardsOfUnconsolidatedEntitiesSubjectToExpiration_iI_c20241231_zpyT5mUCYZgc" title="Operating loss carryforwards of unconsolidated entities subject to expiration">2,867,153 which begin to expire in 2037 and $<span id="xdx_904_ecustom--OperatingLossCarryforwardsOfUnconsolidatedEntitiesWithIndefiniteCarryforwardPeriod_iI_c20241231_zHRUWM8zI3p6" title="Operating loss carryforwards of unconsolidated entities with indefinite carryforward period">11,528,474 with an indefinite carryforward period. As of December 31, 2024, the non-includable entities have $<span id="xdx_90C_ecustom--OperatingLossCarryforwardsOfUnconsolidatedEntitiesSubjectToExpiration_iI_c20241231__us-gaap--IncomeTaxAuthorityNameAxis__us-gaap--CaliforniaFranchiseTaxBoardMember_zTLpR73Gh4e9" title="Operating loss carryforwards of non-includable entities, which begin to expire in 2037">14,339,528 of California net operating loss carryforwards, which begin to expire in 2037. The Company’s consolidated group federal NOL carryforwards are $9,828,604 with an indefinite carryforward period. The Company’s consolidated group state NOL carryforwards are $5,103,345 and begin to expire in 2039. As of December 31, 2024, the Company did not have any foreign NOL carryforwards. As of December 31, 2024, the Company has foreign tax credit carryforwards of $192,180 which begin to expire in 2027 and has foreign R&D credit carryforwards of $731,807 which begin to expire in 2027. The Company has California R&D credit carryforwards of $<span id="xdx_90D_eus-gaap--TaxCreditCarryforwardAmount_iI_c20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--ForeignCountryMember__us-gaap--TaxCreditCarryforwardAxis__us-gaap--ResearchMember_zOR3ktYkZ6G7" title="Tax credit carryforward amount">340,088 with an indefinite carryforward period. Under Section 382/383 of the Internal Revenue Code of 1986, as amended, and corresponding provisions of state law, if a corporation undergoes an “ownership change,” which generally occurs if the percentage of the corporation’s stock owned by 5% stockholders increases by more than 50% over a three year period, the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes to offset its post-change income may be limited. The annual limitation may result in the expiration of net operating losses and credits before utilization. The Company has not performed a Section 382 analysis through December 31, 2024. Subsequent ownership changes may affect the limitation in future years. The Company and its subsidiaries currently file tax returns in the United States (federal and states) and Poland. The statute of limitations for its consolidated federal income tax returns are open for tax years ended December 31, 2021 and after. The statute of limitations for its consolidated state income tax returns are open for tax years ended December 31, 2019 and after. The statute of limitations for its Polish tax returns are open for tax years ended December 31, 2019 and after. Management intends to permanently reinvest any future foreign earnings to support operations and business growth of its affiliated company in Poland. As such, <span id="xdx_902_eus-gaap--DeferredTaxLiabilityNotRecognizedAmountOfUnrecognizedDeferredTaxLiabilityUndistributedEarningsOfForeignSubsidiaries_iI_do_c20241231_zaEv9tMEHXO1" title="Federal deferred tax liability on the unremitted earnings of the foreign subsidiary"><span id="xdx_902_eus-gaap--DeferredTaxLiabilityNotRecognizedAmountOfUnrecognizedDeferredTaxLiabilityUndistributedEarningsOfForeignSubsidiaries_iI_do_c20231231_z0ds0JAVZhR6" title="Federal deferred tax liability on the unremitted earnings of the foreign subsidiary">no deferred tax liability was recorded on the unremitted earnings of the foreign subsidiary as of December 31, 2024 and 2023. As of December 31, 2024, the Company had $1,374,706 of unremitted earnings that will be indefinitely reinvested in its Poland subsidiary. <p id="xdx_896_eus-gaap--ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock_zqAnEwc06iUf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table reflects changes in gross unrecognized tax benefits for the years ended December 31, 2024 and 2023: SCHEDULE OF UNRECOGNIZED TAX BENEFITS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20240101__20241231_zMIp0O54C8c9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20230101__20231231_zUX34hznDUP4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--UnrecognizedTaxBenefits_iS_zjrWVhpBhGue" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Unrecognized tax benefits at beginning of year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">487,608</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">696,895</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions_zvk9a4DzM8il" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross Increases – current year positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions_zlBlwxgWDom7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross Increases – prior year positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">219,128</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions_iN_di_zKhKiEE64wai" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross Decreases – prior year positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(33,831</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--UnrecognizedTaxBenefitsDecreasesResultingFromExpirationOfStatuteOfLimitations_iN_di_zW7ddj0jpmZg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross Decreases – expiration of statute of limitations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(160,550</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(37,550</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities_iN_di_zrtfVyw778ui" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Gross Decreases – settlements</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(171,737</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--UnrecognizedTaxBenefits_iE_z7YfBSVHQ84f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Unrecognized tax benefits at end of year</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">512,355</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">487,608</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of December 31, 2024 and 2023, the Company had $265,251 and $295,428, respectively, of unrecognized tax benefits that if recognized would impact the Company’s effective tax rate. The Company accrued and recognized interest and penalties related to unrecognized tax benefits in operating expense. As of December 31, 2024 and 2023, the Company had accrued $143,020 and $0 of interest and penalties, respectively. The Company does not expect the amount to change materially within 12 months. The Company is under audit by the IRS for the 2022 tax year federal income tax return. There are currently no proposed adjustments. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

<p id="xdx_89E_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_zxjZGXZ7wRkj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The components of income (loss) before income taxes for the years ended December 31, 2024 and 2023 are as follows: SCHEDULE OF INCOME (LOSS) BEFORE INCOME TAXES <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> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20240101__20241231_z0ddnjrCWN9d" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20230101__20231231_zcyCF2Rc8qB" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic_maILFCOzJFO_zLb0g8IH4qmj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,233,247</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(11,666,676</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign_maILFCOzJFO_zQoZff36yvW1" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Foreign</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">225,952</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">171,600</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--IncomeLossFromContinuingOperationsBeforeIncomeTaxes_iT_mtILFCOzJFO_zraJEFnCLrD7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,459,199</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(11,495,076</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

2233247

-11666676

225952

171600

2459199 -11495076

<p id="xdx_89B_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_z9MqggvNGprl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The income tax provision (benefit) for the years ended December 31, 2024 and 2023 are as follows: SCHEDULE OF INCOME TAX PROVISION (BENEFIT) <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240101__20241231_zb1rRp1PDDpb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20230101__20231231_zulkY4afLQR3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Current:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CurrentFederalTaxExpenseBenefit_maCITEBzcGg_zwEPtTQfIL37" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">U.S. federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">872,061</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">112,344</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCITEBzcGg_zCJtDsMPu1y" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">417,447</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82,595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentForeignTaxExpenseBenefit_maCITEBzcGg_z9gQDecKz7Yb" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Foreign</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(87,783</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">49,373</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CurrentIncomeTaxExpenseBenefit_iT_mtCITEBzcGg_maITEBzt4P_zLunpSLPGDA1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total current income taxes</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,201,725</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">244,312</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Deferred:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_maDITEBzGiS_zKXcms4PFFwk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(194,622</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,577,737</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_maDITEBzGiS_z9IaTf0BBXHh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">U.S. State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(374,979</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(67,227</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_maDITEBzGiS_zx8FCkHoO9T9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Foreign</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredIncomeTaxExpenseBenefit_iT_mtDITEBzGiS_maITEBzt4P_zWpkVuO2PV3l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total deferred income tax benefit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(569,601</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,644,964</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxExpenseBenefit_iT_mtITEBzt4P_zkaio39u7rGi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Income tax provision (benefit)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">632,124</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,400,652</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

872061

112344

417447

82595

-87783

49373

1201725

244312

-194622

-2577737

-374979

-67227

-569601

-2644964

632124

-2400652

0.210

<p id="xdx_89B_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_zmZLIBrfDnI7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF PROVISION (BENEFITS) FOR INCOME TAXES RATE RECONCILIATION <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20240101__20241231_zLtXDHBO4J04" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20230101__20231231_zt3wXJAXMET8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_matEfrp_zX7hVLnyA8th" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Federal statutory income tax rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">21.00</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">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_40D_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_matEfrp_z4uAMLLGAYIc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11.94</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1.21</td><td style="text-align: left">)%</td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxContingencies_pid_dp_uPure_matEfrp_zFvE9hSZLC06" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>FIN 48</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.01</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.13</td><td style="text-align: left">%</td></tr> <tr id="xdx_40F_ecustom--EffectiveIncomeTaxRateReconciliationReturnToProvisionPercent_pid_dp_uPure_matEfrp_zsMIAw3C5bK5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Return to provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.08</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.78</td><td style="text-align: left">)%</td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationGiltiPercent_pid_dp_uPure_matEfrp_zc7fr8Zsk003" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>GILTI</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.90</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.43</td><td style="text-align: left">)%</td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateReconciliationFdiiPercent_iN_pid_dpi_uPure_mstEfrp_zKiiYiGoKrZj" style="vertical-align: bottom; background-color: White"> <td>FDII</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6.80</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_matEfrp_zuO5NTvxzS23" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">State taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.86</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.10</td><td style="text-align: left">)%</td></tr> <tr id="xdx_40F_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_matEfrp_zib0Xb7DvpAb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Foreign withholding tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.19</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.43</td><td style="text-align: left">)%</td></tr> <tr id="xdx_40F_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseResearchAndDevelopment_pid_dp_uPure_matEfrp_zWrZRRoZmGth" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">R&D credit true-up</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12.10</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.76</td><td style="text-align: left">%</td></tr> <tr id="xdx_407_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_uPure_matEfrp_z4UefiQqX0nl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rate change</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5.36</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.02</td><td style="text-align: left">)%</td></tr> <tr id="xdx_403_ecustom--EffectiveIncomeTaxRateReconciliationPenalties_pid_dp_uPure_matEfrp_zvxo5IeGo7a2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Penalties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.32</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.07</td><td style="text-align: left">)%</td></tr> <tr id="xdx_407_ecustom--EffectiveIncomeTaxRateReconciliationWarrantRevaluation_pid_dp_uPure_matEfrp_zFTYbfLCYhCi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant revaluation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11.38</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.06</td><td style="text-align: left">)%</td></tr> <tr id="xdx_401_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_pid_dp_uPure_matEfrp_z2tpl5Y719Q5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1.30</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.09</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_404_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_uPure_mttEfrp_z2aRgYAwvlY6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Effective tax rate</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">25.72</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">20.88</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table>

0.2100

0.1194

-0.0121

0.0101

0.0113

0.0008 -0.0078

0.0090

-0.0043

0.0680

0.0086

-0.0010

0.0019

-0.0043

-0.1210

0.0176

-0.0536

-0.0002

0.0132 -0.0007 0.1138 -0.0006

0.0130

0.0009

0.2572

0.2088

632124

-2400652

0.21

<p id="xdx_89F_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zGz6ocg45hBg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities consisted of the following as of December 31, 2024 and 2023: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <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="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20241231_z1v0EcZZxC57" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20231231_zkyTHPh9Ejj2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets (noncurrent):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_maDTAGzVsN_zU4bZg3QKKj" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net operating losses</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,414,780</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">9,941,478</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsDeferredIncome_iI_maDTAGzVsN_zyKwycDNf40k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,792,971</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,564,708</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwardsResearch_iI_maDTAGzVsN_zbjKeOO6eTQl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research and development credit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">945,554</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">664,877</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetsLeaseLiability_iI_maDTAGzVsN_zms2qg8bYFCa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Book lease liability (ASC 842)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">337,056</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">640,414</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--DeferredTaxAssetsFixedAndIntangiblesAssets_iI_maDTAGzVsN_zk3jA1dELKfc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fixed assets and intangibles</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">314,109</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">286,902</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_iI_maDTAGzVsN_zhiyYlFZp1s3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Section 174 capitalized research and experimental expenditures</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,641,794</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,101,923</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetInterestCarryforward_iI_maDTAGzVsN_zTgiqJgzmuV4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest limitation carryforward</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">329,383</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_maDTAGzVsN_zOxqyf3VamYf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Stock based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">242</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">234,110</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsOther_iI_maDTAGzVsN_zzCLuZw7aPj" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">907,859</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">960,471</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzVsN_ze8B3Xq4r6hh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total deferred tax assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17,354,365</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16,724,266</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred tax liabilities (noncurrent):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DeferredTaxLiabilitiesRightOfUseAssets_iNI_di_maDITLzEpV_zT23omZM2Aca" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Book ROU assets (ASC 842)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(287,017</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(533,369</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxLiabilitiesInvestmentInNoncontrolledAffiliates_iNI_di_maDITLzEpV_zjg9lFPpj7Hd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Basis difference in subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(820,883</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(799,595</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--DeferredIncomeTaxLiabilities_iNTI_di_mtDITLzEpV_zOpWgGzdFxfc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total deferred tax liabilities:</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,107,900</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,332,964</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--DeferredTaxAssetsBeforeValuationAllowanceNet_iI_maDTALNzIKz_z95xx8eyJ0ik" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Long-term deferred tax asset, net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,246,465</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,391,302</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTALNzIKz_z47R2kJ1glq8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,429,353</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,143,802</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iTI_mtDTALNzIKz_zAx8weFyffD8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,817,112</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,247,500</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

6414780

9941478

3792971

1564708

945554

664877

337056 640414 314109 286902

4641794

2101923

329383

242

234110

907859

960471

17354365

16724266

287017 533369

820883

799595

1107900

1332964

16246465 15391302

5429353

5143802

10817112

10247500

2 5429353 5143802 4024497 4022729

673049

686808

731807

434265

285551

138607

2867153 11528474 14339528

9828604

5103345

192180

731807

340088

1374706

<p id="xdx_896_eus-gaap--ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock_zqAnEwc06iUf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table reflects changes in gross unrecognized tax benefits for the years ended December 31, 2024 and 2023: SCHEDULE OF UNRECOGNIZED TAX BENEFITS <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: 1pt"> </td> <td colspan="2" id="xdx_493_20240101__20241231_zMIp0O54C8c9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20230101__20231231_zUX34hznDUP4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--UnrecognizedTaxBenefits_iS_zjrWVhpBhGue" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Unrecognized tax benefits at beginning of year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">487,608</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">696,895</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions_zvk9a4DzM8il" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross Increases – current year positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions_zlBlwxgWDom7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross Increases – prior year positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">219,128</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions_iN_di_zKhKiEE64wai" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross Decreases – prior year positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(33,831</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--UnrecognizedTaxBenefitsDecreasesResultingFromExpirationOfStatuteOfLimitations_iN_di_zW7ddj0jpmZg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross Decreases – expiration of statute of limitations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(160,550</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(37,550</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities_iN_di_zrtfVyw778ui" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Gross Decreases – settlements</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(171,737</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--UnrecognizedTaxBenefits_iE_z7YfBSVHQ84f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Unrecognized tax benefits at end of year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">512,355</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">487,608</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

487608

696895

219128

33831

160550 37550

171737

512355

487608

265251

295428

143020

NOTE 14 – OPERATING LEASE RIGHT-OF-USE ASSETS The Company’s right-of-use assets represent arrangements related primarily to office facilities used in the ordinary business operations of the Company and its subsidiaries. In April 2018, a commercial bank issued an irrevocable standby letter of credit on behalf of the Company to the landlord for $1,075,000 to lease office space. The standby letter of credit was valid for a one-year term and was amended in January 2021 to extend to January 31, 2026. As of December 31, 2024 and 2023, the Company’s net operating lease right-of-use assets amounted to $1,279,330 and $2,440,690, respectively. The Company had variable lease payments of approximately $129,752 and $125,207 during the years ended December 31, 2024 and 2023, respectively, which consisted primarily of common area maintenance charges and administrative fees. Operating lease costs included in the general and administrative expenses in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2024 and 2023, are as follows: SCHEDULE OF OPERATING LEASE COSTS <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"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_499_20240101__20241231_zGWS5S0HpjOj" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_492_20230101__20231231_zWkUx9Gabzk7" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">2024</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">2023</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseCost_zBzjiInRvYal" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; width: 60%">Operating lease costs</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">$1,624,257</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">1,578,751</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td></tr> </table> <p id="xdx_89B_ecustom--LesseeOperatingLeaseSupplementalBalanceSheetInformationTableTextBlock_zvoHkqJrfkWf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Supplemental information related to operating leases for lease liabilities as of December 31, 2024 and, 2023, is as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES <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: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20240101__20241231_zrLQdtmelUA7" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">1,619,689</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20230101__20231231_zTV3Hj1hUFY6" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">1,548,889</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.0 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.9 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.14</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.00</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_896_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z7FM2rQzXhq5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Future undiscounted lease payments for operating leases and a reconciliation of these payments to our operating lease liabilities as of December 31, 2024 are as follows: SCHEDULE OF FUTURE UNDISCOUNTED LEASE PAYMENTS FOR OPERATING LEASES AND RECONCILIATION OF THESE PAYMENTS TO OUR OPERATING LEASE LIABILITIES <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 1pt solid; font-weight: bold; text-align: justify">Years ending December 31,</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Future lease payments</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Imputed Interest Amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Lease Liabilities</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20241231_zxBnP5Ni9tDb" style="width: 12%; text-align: right" title="Future lease payments, 2025">1,477,622</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearOne_iI_c20241231_zTa8Sy6haWy6" style="width: 12%; text-align: right" title="Imputed Interest Amount, 2025">33,237</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_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearOne_iI_c20241231_zZuGzFeihqOj" style="width: 12%; text-align: right" title="Lease Liabilities, 2025">1,444,385</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20241231_zjprlEmZwx8f" style="text-align: right" title="Future lease payments, 2026">24,736</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearTwo_iI_c20241231_znch92kobZK1" style="text-align: right" title="Imputed Interest Amount, 2026">3,455</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearTwo_iI_c20241231_zzgSjoavFWs5" style="text-align: right" title="Lease Liabilities, 2026">21,281</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20241231_zuNayp0LUZ72" style="text-align: right" title="Future lease payments, 2027">25,636</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearThree_iI_c20241231_ztGeFxaeDwcf" style="text-align: right" title="Imputed Interest Amount, 2027">1,778</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearThree_iI_c20241231_zFkcBoqIDTsj" style="text-align: right" title="Lease Liabilities, 2027">23,858</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20241231_zDoR80y3X0Gf" style="text-align: right" title="Future lease payments, 2028">13,043</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearFour_iI_c20241231_zjvvjQ8VNEV3" style="text-align: right" title="Imputed Interest Amount, 2028">199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearFour_iI_c20241231_z1NSFUmw8Lhf" style="text-align: right" title="Lease Liabilities, 2028">12,844</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">2029</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_c20241231_zY6hJomyjGHi" style="border-bottom: Black 1pt solid; text-align: right" title="Future lease payments, 2029">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearFive_iI_c20241231_zHzLEg9n8yzg" style="border-bottom: Black 1pt solid; text-align: right" title="Imputed Interest Amount, 2029">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearFive_iI_c20241231_zoHHCUnociYa" style="border-bottom: Black 1pt solid; text-align: right" title="Lease Liabilities, 2029">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; 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_98E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_c20241231_zz9CvrJ7r8da" style="border-bottom: Black 2.5pt double; text-align: right" title="Total future lease payments">1,541,037</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">$</td><td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20241231_zE3eyBdqAid1" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Imputed Interest">38,669</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iI_c20241231_zWLsaJ8D8Lga" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Lease Liabilities">1,502,368</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1075000

The standby letter of credit was valid for a one-year term and was amended in January 2021 to extend to January 31, 2026.

1279330

2440690

129752

125207

Operating lease costs included in the general and administrative expenses in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2024 and 2023, are as follows: SCHEDULE OF OPERATING LEASE COSTS <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"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_499_20240101__20241231_zGWS5S0HpjOj" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_492_20230101__20231231_zWkUx9Gabzk7" style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">2024</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">2023</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingLeaseCost_zBzjiInRvYal" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: #CCEEFF"> <td style="font: 10pt Times New Roman, Times, Serif; width: 60%">Operating lease costs</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">$1,624,257</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">1,578,751</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td></tr> </table>

1624257

1578751

<p id="xdx_89B_ecustom--LesseeOperatingLeaseSupplementalBalanceSheetInformationTableTextBlock_zvoHkqJrfkWf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Supplemental information related to operating leases for lease liabilities as of December 31, 2024 and, 2023, is as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES <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: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Cash paid for amounts included in the measurement of lease liabilities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20240101__20241231_zrLQdtmelUA7" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">1,619,689</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities_c20230101__20231231_zTV3Hj1hUFY6" style="width: 16%; text-align: right" title="Cash paid for amounts included in the measurement of lease liabilities">1,548,889</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.0 years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.9 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.14</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5.00</td><td style="text-align: left">%</td></tr> </table> 1619689 1548889

P1Y

P1Y10M24D

0.0514

0.0500

<p id="xdx_896_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z7FM2rQzXhq5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Future undiscounted lease payments for operating leases and a reconciliation of these payments to our operating lease liabilities as of December 31, 2024 are as follows: SCHEDULE OF FUTURE UNDISCOUNTED LEASE PAYMENTS FOR OPERATING LEASES AND RECONCILIATION OF THESE PAYMENTS TO OUR OPERATING LEASE LIABILITIES <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 1pt solid; font-weight: bold; text-align: justify">Years ending December 31,</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Future lease payments</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Imputed Interest Amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Lease Liabilities</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: justify">2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20241231_zxBnP5Ni9tDb" style="width: 12%; text-align: right" title="Future lease payments, 2025">1,477,622</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearOne_iI_c20241231_zTa8Sy6haWy6" style="width: 12%; text-align: right" title="Imputed Interest Amount, 2025">33,237</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_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearOne_iI_c20241231_zZuGzFeihqOj" style="width: 12%; text-align: right" title="Lease Liabilities, 2025">1,444,385</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20241231_zjprlEmZwx8f" style="text-align: right" title="Future lease payments, 2026">24,736</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearTwo_iI_c20241231_znch92kobZK1" style="text-align: right" title="Imputed Interest Amount, 2026">3,455</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearTwo_iI_c20241231_zzgSjoavFWs5" style="text-align: right" title="Lease Liabilities, 2026">21,281</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20241231_zuNayp0LUZ72" style="text-align: right" title="Future lease payments, 2027">25,636</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearThree_iI_c20241231_ztGeFxaeDwcf" style="text-align: right" title="Imputed Interest Amount, 2027">1,778</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearThree_iI_c20241231_zFkcBoqIDTsj" style="text-align: right" title="Lease Liabilities, 2027">23,858</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20241231_zDoR80y3X0Gf" style="text-align: right" title="Future lease payments, 2028">13,043</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearFour_iI_c20241231_zjvvjQ8VNEV3" style="text-align: right" title="Imputed Interest Amount, 2028">199</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearFour_iI_c20241231_z1NSFUmw8Lhf" style="text-align: right" title="Lease Liabilities, 2028">12,844</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">2029</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_c20241231_zY6hJomyjGHi" style="border-bottom: Black 1pt solid; text-align: right" title="Future lease payments, 2029">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_ecustom--LesseeOperatingLeaseLiabilityUndiscountedExcessAmountYearFive_iI_c20241231_zHzLEg9n8yzg" style="border-bottom: Black 1pt solid; text-align: right" title="Imputed Interest Amount, 2029">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_ecustom--LesseeOperatingLeaseLiabilityToBePaidNetYearFive_iI_c20241231_zoHHCUnociYa" style="border-bottom: Black 1pt solid; text-align: right" title="Lease Liabilities, 2029">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; 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_98E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_c20241231_zz9CvrJ7r8da" style="border-bottom: Black 2.5pt double; text-align: right" title="Total future lease payments">1,541,037</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">$</td><td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20241231_zE3eyBdqAid1" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Imputed Interest">38,669</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iI_c20241231_zWLsaJ8D8Lga" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Lease Liabilities">1,502,368</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1477622

33237 1444385

24736

3455 21281

25636

1778 23858

13043

199 12844

1541037

38669

1502368

<p id="xdx_80A_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_ziBWNahxnLb9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">NOTE 15 – COMMITMENTS AND CONTINGENCIES Litigation The Company is subject to claims and contingencies related to lawsuits and other matters arising out of the normal course of business. In addition, the Company may receive notifications alleging infringement of patent or other intellectual property rights. The Company has elected to expense legal costs associated with legal contingencies as incurred. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements 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 concerned a videogame titled Myth of Empires, which was developed by Suzhou Angela Online Game Technology Co., Ltd. (“Angela Game”) and published by Imperium Interactive Entertainment Limited (“Imperium”). On December 9, 2021, Angela Game and Imperium sued 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 sought 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 reinstate Myth of Empires for download. On December 20, 2021, the Company and Studio Wildcard filed an answer to the complaint, which included counterclaims against Angela Game and Imperium and a third-party complaint against Tencent seeking unspecified damages resulting from the alleged copyright infringement and misappropriation of trade secrets in connection with the ARK: Survival Evolved source code. On September 8, 2023, the Company entered into a settlement agreement with Angela Game. The settlement agreement includes an upfront payment from Angela Game to the Company plus ongoing payments. The upfront payment of $1.5 million was recorded as deferred revenue as of December 31, 2023, with $0.3 million of the payment included in “other income” in the 2023 statement of operations and the remaining amount was recognized upon the satisfaction of performance obligations during the twelve months ended December 31, 2024. 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, an affiliate company that is owned by Mr. Hai Shi, the Company’s Founder, Co-Chief Executive Officer, Chief Strategy Officer, and Chairman, for breach of contract and related claims arising out of a commercial lease for premises located in Los Angeles County. Plaintiff alleges that the defendants exercised an option to extend the lease and was harmed when defendants instead terminated the lease and vacated the premises. The complaint seeks damages in excess of $3 million. Snail Games USA Inc. disputes the allegations and the amount of damages. The Company has responded to the complaint with an answer and cross-complaint. The cross-complaint seeks return for the $130,000 security deposit. The landlord has answered and denied the allegations of the cross-complaint. The Company intends to vigorously defend against the claims asserted. There was a mandatory settlement conference in the case which did not yield a settlement. As a result, the Company has filed a motion for summary judgement, which is scheduled to be heard on June 24, 2025. The trial is presently scheduled to commence in February 2026. 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. In October 2023, INDIEV has filed for bankruptcy and the Company does not expect to recover its costs from INDIEV. Accordingly, it is uncertain whether INDIEV would be able to indemnify the Company due to its bankruptcy. 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. Commitments The Company routinely enters contracts with related party developers for the development of new games. These agreements ordinarily include contractual payments to the developers for several milestones that occur at various times through 2026. The aggregate amount of development commitments to related party developers is $6.6 million as of December 31, 2024, Our commitments assume satisfactory performance by our related party software developer. See Note 10 – Accounts Payable – Related Parties and Note 19 – Subsequent Events for more information. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements

1500000

300000

3000000

130000

6600000

NOTE 16 –EARNINGS (LOSS) PER SHARE The Company uses the two class method to compute its basic earnings (loss) per share (“Basic EPS”) and diluted earnings (loss) 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 and if-converted methods. The following table provides a reconciliation of the weighted average number of shares used in the calculation of Basic and Diluted EPS. <p id="xdx_896_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_z7kTDkx9veF9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF EARNINGS PER SHARE <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="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the year ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240101__20241231_zPxtqCAnLAga" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20230101__20231231_zolkfg29ifma" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareBasicAbstract_iB_zO6PPUztsHij" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Basic Earnings (Loss) Per Share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zrIsTjiuBb4l" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; padding-left: 10pt">Net income (loss) attributable to Class A common stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">400,576</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(1,960,813</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zDDNjDMwBw2f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net income (loss) attributable to Class B common stockholders</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,431,364</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7,125,262</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zDH7nHFRDfJl" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Net income (loss) attributable to common stockholders</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,431,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,125,262</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_zv2gEhOIfxx3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Total net income (loss) attributable to Snail Inc.</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,831,940</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(9,086,075</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zzMYATpaBaKf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Class A weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,045,469</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,911,369</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zKTj9Ra1pEY6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">Class B weighted average shares outstanding - basic</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zKcMvluOlon5" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareBasic_z152PrNQ4xIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Class A and B basic earnings (loss) per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.05</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.25</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--EarningsPerShareDilutedAbstract_iB_zc7F2VkwCTUh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Diluted Earnings (Loss) Per Share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zLxsrm70fjSd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net income (loss) attributable to Class A common stockholders</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">400,576</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,960,813</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z9V7S3EYi205" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net income (loss) attributable to Class B common stockholders</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,431,364</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(7,125,262</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z0CUf02le3Lh" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Net income (loss) attributable to common stockholders</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,431,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(7,125,262</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zcnmvd1NKZ61" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Class A weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,045,469</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,911,369</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zofDgwO7MEJk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Dilutive effects of common stock equivalents</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zXVyzCAtA05" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">Class A weighted average shares outstanding - diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,045,469</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,911,369</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zBP1I7Sxlsre" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Class B weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zcAoNwBiSNRf" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zlnALNM2Rnyb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Dilutive effects of common stock equivalents</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zTdhratpadld" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Class B weighted average shares outstanding - diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zK0jcTKVSzP6" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Weighted average shares outstanding - diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EarningsPerShareDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zG7CC8Z93OEk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Diluted earnings (loss) per Class A share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.05</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.25</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--EarningsPerShareDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_ziygfHk7GAE9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Diluted earnings (loss) per Class B share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.05</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.25</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--EarningsPerShareDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z0mBTHhfYhua" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Diluted earnings (loss) per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.05</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.25</td><td style="text-align: left">)</td></tr> </table> <p id="xdx_894_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zKV2wRv0wIp4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides a listing of shares excluded from the calculation of Diluted EPS due to their anti-dilutive effects: SCHEDULE OF ANTI-DILUTIVE SHARES AND SECURITIES <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="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20240101__20241231_zwe8RWC1Kcc6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20230101__20231231_zXe7YLajaZE4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Method</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Excluded Shares:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zkdCgILtkhDb" style="vertical-align: bottom; background-color: White"> <td style="width: 52%; text-align: left; padding-left: 10pt">Restricted stock units outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">1,142,284</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">1,232,725</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">Treasury</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--EquityLineOfCreditWarrantsMember_zR9x5zZgktLl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Equity line of credit warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">334,314</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">367,647</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnderwriterWarrantsMember_znxppDuyd4ql" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Underwriters warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">120,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">120,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_zLApbh84RERi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Convertible notes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">862,275</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">If-Converted</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesWarrantsMember_znkui8fPLXl2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Convertible notes warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,405,470</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,607,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesWarrantsMember_z6lWspxQcsnb" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Antidilutive securities excluded from computation of earnings per share, amount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,405,470</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,607,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> </table>

<p id="xdx_896_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_z7kTDkx9veF9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF EARNINGS PER SHARE <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="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the year ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240101__20241231_zPxtqCAnLAga" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20230101__20231231_zolkfg29ifma" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareBasicAbstract_iB_zO6PPUztsHij" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Basic Earnings (Loss) Per Share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zrIsTjiuBb4l" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; padding-left: 10pt">Net income (loss) attributable to Class A common stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">400,576</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(1,960,813</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zDDNjDMwBw2f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net income (loss) attributable to Class B common stockholders</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,431,364</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7,125,262</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zDH7nHFRDfJl" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Net income (loss) attributable to common stockholders</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,431,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,125,262</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_zv2gEhOIfxx3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Total net income (loss) attributable to Snail Inc.</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,831,940</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(9,086,075</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zzMYATpaBaKf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Class A weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,045,469</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,911,369</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zKTj9Ra1pEY6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">Class B weighted average shares outstanding - basic</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zKcMvluOlon5" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareBasic_z152PrNQ4xIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Class A and B basic earnings (loss) per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.05</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.25</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--EarningsPerShareDilutedAbstract_iB_zc7F2VkwCTUh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Diluted Earnings (Loss) Per Share:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zLxsrm70fjSd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net income (loss) attributable to Class A common stockholders</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">400,576</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,960,813</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z9V7S3EYi205" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Net income (loss) attributable to Class B common stockholders</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,431,364</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(7,125,262</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z0CUf02le3Lh" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Net income (loss) attributable to common stockholders</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,431,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(7,125,262</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zcnmvd1NKZ61" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Class A weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,045,469</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,911,369</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zofDgwO7MEJk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Dilutive effects of common stock equivalents</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zXVyzCAtA05" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10pt">Class A weighted average shares outstanding - diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,045,469</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,911,369</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zBP1I7Sxlsre" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Class B weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zcAoNwBiSNRf" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Weighted average shares outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--IncrementalCommonSharesAttributableToContingentlyIssuableShares_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zlnALNM2Rnyb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Dilutive effects of common stock equivalents</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zTdhratpadld" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Class B weighted average shares outstanding - diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28,748,580</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zK0jcTKVSzP6" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Weighted average shares outstanding - diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,748,580</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EarningsPerShareDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zG7CC8Z93OEk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Diluted earnings (loss) per Class A share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.05</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.25</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--EarningsPerShareDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_ziygfHk7GAE9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Diluted earnings (loss) per Class B share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.05</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.25</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--EarningsPerShareDiluted_hus-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z0mBTHhfYhua" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Diluted earnings (loss) per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.05</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.25</td><td style="text-align: left">)</td></tr> </table>

400576

-1960813

1431364

-7125262

1431364

-7125262

1831940

-9086075

8045469

7911369

28748580

0.05

-0.25

400576

-1960813

1431364

-7125262

1431364

-7125262

8045469

7911369

8045469

7911369

28748580

0.05

-0.25

0.05

-0.25

0.05

-0.25

<p id="xdx_894_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zKV2wRv0wIp4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table provides a listing of shares excluded from the calculation of Diluted EPS due to their anti-dilutive effects: SCHEDULE OF ANTI-DILUTIVE SHARES AND SECURITIES <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="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20240101__20241231_zwe8RWC1Kcc6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20230101__20231231_zXe7YLajaZE4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Method</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Excluded Shares:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zkdCgILtkhDb" style="vertical-align: bottom; background-color: White"> <td style="width: 52%; text-align: left; padding-left: 10pt">Restricted stock units outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">1,142,284</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">1,232,725</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">Treasury</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--EquityLineOfCreditWarrantsMember_zR9x5zZgktLl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Equity line of credit warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">334,314</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">367,647</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnderwriterWarrantsMember_znxppDuyd4ql" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Underwriters warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">120,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">120,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_zLApbh84RERi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Convertible notes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">862,275</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">If-Converted</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesWarrantsMember_znkui8fPLXl2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Convertible notes warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,405,470</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,607,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNotesWarrantsMember_z6lWspxQcsnb" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Antidilutive securities excluded from computation of earnings per share, amount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,405,470</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,607,849</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Treasury</td><td style="text-align: left"> </td></tr> </table>

1142284

1232725

334314

367647

120000

862275

1405470

1607849

1405470

1607849

NOTE 17 – EQUITY The Company has authorized two classes of common stock, Class A and Class B. The rights of the holders of both Class A and Class B common stock will be identical, except with respect to voting, conversion and transfer restrictions applicable to the Class B common stock. Each share of Class A common stock will be entitled to one vote. Each share of Class B common stock will be entitled to ten votes and will be convertible into <span id="xdx_905_eus-gaap--ConversionOfStockSharesIssued1_dc_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zzHfBBT8timg" title="Class A shares issuable upon conversion">one share of Class A common stock automatically upon transfer, subject to certain exceptions. Holders of Class A common stock and Class B common stock will vote together as a single class on all matters unless otherwise required by law. In connection with our IPO, on November 9, 2022, the Company issued to the Underwriters warrants to purchase <span id="xdx_906_eus-gaap--CommonStockSharesIssued_iI_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zcUTVifrW2X9" title="Shares issued">120,000 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_905_ecustom--ClassOfWarrantOrRightIssuePriceOfWarrantsOrRightsPercent_pid_dp_uPure_c20221109__20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zmrRdYnE0Dmc" title="Exercise price percentage">125% of the IPO price, or $<span id="xdx_901_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zqD8gmbPh9Dl" title="Share pricr">6.25 per share. The Underwriters Warrants are exercisable, in whole or in part, commencing on November 9, 2022, and expiring on the <span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dxL_c20221109__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zr7zuQYDksyk" title="::XDX::P3Y">three-year anniversary thereof. The Underwriters Warrants have not been exercised as of the filing of this Annual Report. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements The Underwriters Warrants are legally detachable and separately exercisable from the Class A common stock; therefore, they meet the definition of freestanding and are not considered embedded in the Firm Shares. The Underwriters Warrants are considered indexed to the Company’s own stock. Additionally, the Company concludes that the Underwriters Warrants meet all requirements for equity classification. Because the Underwriters Warrants were issued to the Underwriters for their services and can be exercised immediately (subject to certain transfer conditions) they were 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. Convertible Debt In August 2023, pursuant to a securities purchase agreement (the “SPA”), the Company issued to two accredited investors (the convertible debt “Investors”) convertible notes with an aggregate principal amount of $1,080,000 (the “Convertible Notes”) and warrants to purchase up to an aggregate of <span id="xdx_906_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230831__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zi0MXDwUkQJ" title="Warrants to purchase shares">714,285 shares of the Company’s Class A common stock for gross proceeds of $1,000,000 (the “Convertible Notes Financing”). In connection with the Convertible Notes Financing, the Company also entered into a registration rights agreement with the Investors. So long as the Company complies with certain conditions set forth in the SPA and the registration rights agreement, the Company will sell and the Investors will purchase, an additional $1,080,000 of aggregate principal amount of notes and warrants in the second tranche of the Convertible Note Financing. The second tranche closing has not yet taken place. The Convertible Notes carried an original issue discount of approximately <span id="xdx_90E_ecustom--DebtInstrumentOriginalIssueDiscountPercentage_iI_pid_dp_c20230831__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zYbto5ZpSR3c" title="Original issue discount percentage">7.4%, bear interest at a rate of 7.5% per annum (16% per annum in case of an event of default), and were repaid in equal consecutive monthly installments that began in February 2024 and matured on May 24, 2024 (the “Maturity Date”). Subject to certain ownership limitations, starting three months after their issuance, the Convertible Notes could be converted at the option of the holder at any time into shares of the Company’s Class A common, at a conversion price equal to 90% (85% in case of an event of default) of the average of the three the lowest daily volume weighted average price (“VWAP”) of the Class A common stock during the ten (10) trading days period prior the receipt of the notice of conversion. The conversion price may be adjusted if the Company issues a qualifying security at a lower price than the then conversion price. If, upon receipt of conversion notice, the Company cannot issue shares of Class A common stock for any reason, then it is required to issue as many shares of Class A common stock as it is able to issue and, with respect to the unconverted principle portion, the Noteholder may elect for the Company to pay for each shares of Class A common stock that could not be issued at a price equal to the higher of the then conversion price or the VWAP as of the date of the conversion notice. The Company determined that the Convertible Notes included features that required bifurcation from the debt host and met the criteria to be accounted for as a derivative liability that is accounted for at fair value. On the date of issuance, the compound derivative had an estimated fair value that was not significant due to the remoteness of the events that would trigger the redemption features. The derivative liability uses level 3 inputs, is to be measured at fair value each reporting date with change in fair value being reported in other income. The change in fair value during the years ended December 31, 2024 and 2023, was not significant and as such, was not recorded. On the date of issuance, the Company allocated the proceeds between the instruments issued using fair value for the derivative liability with the residual amounts allocated to the convertible notes and warrants using relative fair value as follows: SCHEDULE OF PROCEEDS BETWEEN INSTRUMENTS ISSUED <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="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center"> </td> <td style="text-align: center"> </td><td id="xdx_494_20230801__20230831_ziSHW62rykoh" style="text-align: center"> </td><td style="text-align: center"> </td></tr> <tr id="xdx_40C_eus-gaap--ProceedsFromConvertibleDebt_maPFIOCzziA_z5cl9xwmry13" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">554,246</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--ProceedsFromIssuanceOfDerivativeLiability_maPFIOCzziA_zZPkImgJXKi3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Derivative liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--ProceedsFromIssuanceOfWarrants_maPFIOCzziA_zh3fm2krdJVc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">445,754</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ProceedsFromIssuanceOfCommonStock_iT_mtPFIOCzziA_z2t6lKqYBe0e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total proceeds</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">1,000,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements The difference of $525,754 between the allocated proceeds to the Convertible Notes and the aggregate principal amount will be accreted during the life of the notes. Additionally, $152,500 of transaction costs incurred by the Company were recorded as debt discount. As of December 31, 2024, the Company has repaid the balance of the convertible notes. The following is a summary of the Convertible Notes as of December 31, 2023: SCHEDULE OF CONVERTIBLE NOTES <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="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center">Principal</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center">Unamortized debt discount and issuance</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center">Net carrying</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Fair value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">costs</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Levelling</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left">Convertible Notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DebtInstrumentFaceAmount_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_z5tJCekJOCl" style="width: 9%; text-align: right" title="Principal Amount">860,910</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zN4dxLRvBrXg" style="width: 9%; text-align: right" title="Unamortized debt discount and issuance costs">(63,549</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DebtInstrumentCarryingAmount_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zWRc8clVOFpi" style="width: 9%; text-align: right" title="Net carrying amount">797,361</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_98C_eus-gaap--DebtInstrumentFairValue_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zmYaLNDfziCj" style="width: 9%; text-align: right" title="Fair value amount">536,170</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: 9%; text-align: right">Level 3</td><td style="width: 1%; text-align: left"> </td></tr> </table> The debt discount was amortized to interest expense over the maturity period using the effective interest method at a rate of 103.4%. The effective interest rate is based on the principal balance discounted by stated interest, debt issuance costs and fair value allocated to the related warrants. For the year ended December 31, 2024, the Company recognized $309,433 of interest expense related to the Convertible Notes, comprising of $<span id="xdx_901_eus-gaap--ContractualInterestExpenseOnPrepetitionLiabilitiesNotRecognizedInStatementOfOperations_c20240101__20241231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_z9KsFlM0wUu1" title="Contractual interest expense">22,725 of contractual interest expense, $222,628 in accretion and $64,080 of amortization of debt discount and issuance costs. For the year ended December 31, 2023, the Company recognized $424,460 of interest expense related to the Convertible Notes, comprising of $<span id="xdx_901_eus-gaap--ContractualInterestExpenseOnPrepetitionLiabilitiesNotRecognizedInStatementOfOperations_c20230101__20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zqvogDfUOCob" title="Contractual interest expense">29,025 of contractual interest expense, $306,664 in accretion and $<span id="xdx_907_eus-gaap--AmortizationOfDebtDiscountPremium_c20230101__20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zu5nFWjj8hL1" title="Amortization of debt discount and issuance costs">88,951 of amortization of debt discount and issuance costs. During the year ended December 31, 2024, the Company repaid $1,071,750 of principal and accrued interest and the investors converted $60,000 of principal into <span id="xdx_900_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20240101__20241231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zN8VqudizLL2" title="Shares issuable upon notes conversion">71,460 shares of Class A common stock. Convertible Note Warrants On August 24, 2023, the Company issued warrants in connection with its convertible debt for the purchase of <span id="xdx_90D_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20230824__20230824__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zUTwG6yk5TLg" title="Convertible debt shares">714,285 shares (the “Convertible Note Warrants”). The Convertible Note Warrants are accounted for as liabilities and are included in the accrued expenses and other liabilities in the consolidated balance sheets. The Convertible Note Warrants may require partial cash settlement in the future, include various adjustment provisions, meet the definition of a derivative and are classified as a liability, as such the warrants are measured at fair value in accordance with ASC 815 – “Derivatives and Hedging”. The convertible note warrants allow the Investors to purchase an aggregate of <span id="xdx_90F_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20230824__20230824__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zMmzIpd1LcHh" title="Convertible debt shares">714,285 shares of the Company’s Class A common stock at an exercise price of $<span id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20230824__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zRWg2NQKm0wj" title="Exercise price">1.89. The warrants can be exercised, subject to certain ownership limitations, in whole or in part during the exercise period commencing on November 24, 2023 and ending on the date that is five years thereafter. The exercise price and the number of shares of the warrants are subject to adjustment for standard anti-dilution provisions and also for subsequent issuance at a price lower than the then exercise price and adjustments to the strike price of other equity-linked instruments to a lower price than the then exercise price. Due to their adjustment provisions, the warrants are classified as a liability on the consolidated balance sheet. The fair value of the warrants at issuance has been estimated using a Monte-Carlo model as follows: <p id="xdx_893_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_hus-gaap--StatementEquityComponentsAxis__custom--ConvertibleNoteWarrantsMember_zd7QbuN4zWel" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF FAIR VALUE OF WARRANTS <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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--SharePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zdTTYY2e6hv3" style="width: 18%; text-align: right" title="Stock price">1.86</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--SharePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zo4wkNZbOIUg" style="width: 18%; text-align: right" title="Stock price">1.21</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_z2I4iAeMNXad" style="text-align: right" title="Exercise price">0.84</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zy6rcbIdsVq5" style="text-align: right" title="Exercise price">1.89</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Contractual term (years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_znbVmGZHPXoh" style="text-align: right" title="Contractual term (years)">3.65</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zbO9klPiKi3f" style="text-align: right" title="Contractual term (years)">4.65</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_z7RweN5PVR6g" style="text-align: right" title="Volatility">60.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zyeuvFsrNKki" style="text-align: right" title="Volatility">50.0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zDUzW1aeyRO5" style="text-align: right" title="Risk-free rate">4.31</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zHPLrWIio3rb" style="text-align: right" title="Risk-free rate">3.87</td><td style="text-align: left">%</td></tr> </table> Expected volatility is the estimate of the expected volatility of the Company’s Class A common stock, based on the Company’s weekly trading history then reduced by <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zYHsy9882GNc">5% as it is generally accepted that market participants to not pay for the full volatility. The warrant liability, which uses level 3 inputs, is to be measured at fair value each reporting period with the change in fair value being recognized in other income (expense). The measured fair value may be uncertain due to the use of unobservable inputs. At December 31, 2024 and 2023, the fair value of the warrant liability was $1,448,109 and $480,281, respectively, and was included in the accrued expenses and other liabilities in the Company’s consolidated balance sheets. The changes in fair value during the years ended December 31, 2024 and 2023, amounted to a loss of $1,006,294 and $34,527, respectively, included in other income (expense) in our consolidated statements of operations and comprehensive income (loss). During the year ended December 31, 2024, the Investors exercised <span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zUrSvSwnk9P5" title="Exercised warrants">202,379 warrants, for which the Company received $170,000 in proceeds and recorded a loss of $115,800 upon revaluation of the exercised warrants. The loss is included in other income (expense) in our consolidated statements of operations and comprehensive income (loss). Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Equity Line Purchase Agreement On August 24, 2023, the Company entered into a common stock purchase agreement (the “Equity Line Purchase Agreement”) and a registration rights agreement (the “Registration Rights Agreement”) with an investor, pursuant to which the investor has committed to purchase up to $<span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20230824__20230824__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_zNiPehwTHzCl" title="Common stock issued">5,000,000 in shares of the Company’s Class A common stock, subject to certain limitations and conditions set forth in the Equity Line Purchase Agreement. The Company shall not issue or sell any shares of common stock under the Equity Line Purchase Agreement which, when aggregated with all other shares of common stock beneficially owned by the investor, would result in beneficial ownership of more than <span id="xdx_90A_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_c20230824__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--EquityLinePurchaseAgreementMember_z4O1uJ52lvve" title="Beneficial ownership">9.99% of the Company’s outstanding shares of common stock. Under the terms of the Equity Line Purchase Agreement, the Company has the right, but not the obligation, to sell to the investor, shares of Class A common stock over the period commencing on the execution date of the Equity Line Purchase Agreement and ending on the earlier of (i) December 31, 2025, or (ii) the date on which the investor shall have purchased Securities pursuant to the Equity Line Purchase Agreement for an aggregate purchase price of the $<span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20230824__20230824__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_zmJbqZMlKuFb" title="Common stock issued">5,000,000, provided that a registration statement covering the resale of shares of Class A common stock that have been and may be issued under the Equity Line Purchase Agreement is declared effective by the SEC. As of December 31, 2024, the Company has not sold any Class A common stock under the Equity Line Purchase Agreement. The registration statement covering the offer and sale of up <span id="xdx_900_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20231010__20231010__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_zRjySVAFSaj8" title="Number of shares transferred">15,093,768 shares of Class A common stock was effective on October 10, 2023. The purchase price will be calculated as 92% of the volume weighted average prices of the Company’s common stock during normal trading hours for five business days prior to the closing date with respect of a purchase notice. Concurrently with the signing of the Equity Line Purchase Agreement, the Company issued the equity line warrant to purchase <span id="xdx_903_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20230824__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_zEPBnfAtDTCi" title="Warrant to purchase">367,647 shares of its Class A common stock to the investor as a commitment fee. The total fair value, at the date of issuance, of the equity line warrant of approximately $<span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstanding_iI_c20230824__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--EquityLinePurchaseAgreementMember_z1VLYDNrGUi2" title="Warrant outstanding">105,411 was recorded as a liability and deferred offering cost and is included in other assets on our consolidated balance sheets. Equity Line Warrants On August 24, 2023, the Company issued a warrant to an investor (the “Equity Line Warrant”) for the purchase of 367,647 shares of Class A common stock in consideration of the investor’s commitment to purchase Class A common stock. The fair value of the Equity Line Warrant is recorded as a warrant liability and is included in the accrued expenses and other liabilities in the Company’s consolidated balance sheets. The Equity Line Warrants may require partial cash settlement in the future, include various adjustment provisions, meet the definition of a derivative and are classified as a liability, as such the warrants are measured at fair value in accordance with ASC 815 – “Derivatives and Hedging”. The Investors warrants allow them to purchase the 367,647 shares of the Company’s Class A common stock for an exercise price of $1.50. The warrants can be exercised, subject to certain ownership limitations, in whole or in part during the exercise period commencing on August 24, 2023 and ending on the date that is five years thereafter. The exercise price and the number of shares of the warrants are subject to adjustment for standard anti-dilution provisions, for subsequent common share issuance at a price lower than the then exercise price of the warrants and adjustments to the strike price of other equity-linked instruments to a lower price than the then exercise price of the warrants. Due to their adjustment provision, the warrants are classified as a liability on the consolidated balance sheet. The fair value of the warrants has been estimated using a Monte-Carlo model as follows: <p id="xdx_899_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_hus-gaap--StatementEquityComponentsAxis__custom--EquityLineWarrantsMember_zJwzPuSSS4Oe" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF FAIR VALUE OF WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--SharePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zwgrZowtAr63" style="width: 18%; text-align: right" title="Stock price">1.86</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--SharePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_ztZl2acMt8j9" style="width: 18%; text-align: right" title="Stock price">1.21</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zltYHIPGwyLg" style="text-align: right" title="Exercise price">1.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_z57HBMnXwSAk" style="text-align: right" title="Exercise price">1.50</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Contractual term (years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_z6yQ02nnE5ce" style="text-align: right" title="Contractual term (years)">3.65</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_z3swHHlMK4l9" style="text-align: right" title="Contractual term (years)">4.65</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zOR4sgInTPgd" style="text-align: right" title="Volatility">60.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zsnmY0GkhMml" style="text-align: right" title="Volatility">50.0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zfk4btc6ppJg" style="text-align: right" title="Risk-free rate">4.31</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zrbPF7BukXCh" style="text-align: right" title="Risk-free rate">3.87</td><td style="text-align: left">%</td></tr> </table> Expected volatility is the estimate of the expected volatility of the Company’s Class A common stock, based on the Company’s weekly trading history then reduced by <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_z5NIB3LAR3w8">5%. The warrant liability, which uses level 3 inputs, is to be measured at fair value at each reporting period and with the change in fair value being recognized in earnings. The measured fair value may be uncertain due to the use of unobservable inputs. At December 31, 2024 and 2023, the fair value of the warrant liability was $292,004 and $103,767, respectively, and included in the accrued expenses and other liabilities in the Company’s consolidated balance sheets. The changes in fair value during the years ended December 31, 2024 and 2023, amounted to a loss of ($192,945) and income of $1,644, respectively, and is included in other income (expense) in our consolidated statements of operations and comprehensive income (loss). During the year ended December 31, 2024, the Investor exercised <span id="xdx_904_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_z08vK54oeYz" title="Exercised warrants">33,333 warrants, for which the Company received $50,000 in proceeds and recorded a loss of $17,776 upon revaluation of the exercised warrants. The loss is included in other income (expense) in our consolidated statements of operations and comprehensive income (loss). Restricted Stock Units (“RSUs”) RSUs granted to directors vest based on the directors’ continued employment with us through each applicable vest date, which is generally over <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__srt--DirectorMember_znmyZ3XGtQh4" title="Vesting period">one year. If the vesting conditions are not met, unvested RSUs will be forfeited. The following table summarizes our RSU units activity with directors for the years ended December 31, 2024 and 2023. <p id="xdx_89E_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__srt--DirectorMember_zc01ukeRdHla" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY <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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Outstanding as of January 1, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zMBv3lz6Kls2" style="width: 18%; text-align: right" title="Outstanding, beginning balance">43,478</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_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQnc6CWLoxRa" style="width: 18%; text-align: right" title="Outstanding, beginning balance per share">1.38</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_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zO2Vzuq77hsd" style="text-align: right" title="Outstanding granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z86Ht9Tj7Iij" style="text-align: right" title="Outstanding granted per share">—</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_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zn1RIeW3XI8b" style="text-align: right" title="Outstanding vested">(43,478</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJQhB9jqeJre" style="text-align: right" title="Weighted-average grant-date fair value, vested">(1.38</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_ztTuFLggn0C2" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4AxShy7Y3Me" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled per share">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding as of December 31, 2024</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmVZSkYmXrf5" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zdfFI5zPww6j" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance per share">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Outstanding as of January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvA2gUS1DUdj" style="width: 18%; text-align: right" title="Outstanding, beginning balance">24,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbl6IeEuZ26i" style="width: 18%; 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_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7uLbms7Wt7g" style="text-align: right" title="Outstanding granted">43,478</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zEJUkTiXK55g" style="text-align: right" title="Outstanding granted per share">1.38</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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zpt5GmxVGtO5" style="text-align: right" title="Outstanding vested">(24,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z05jYe39rkRa" style="text-align: right" title="Weighted-average grant-date fair value, vested">(5.00</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zv6PglUK3fO2" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zc9iJCd7E4Gf" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled per share">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding as of December 31, 2023</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zNuI9NnmmYA9" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance">43,478</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKaq7UwT1iSd" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance per share">1.38</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> 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. The total fair value of RSUs vested during the years ended December 31, 2024 and 2023, were $60,000 and $120,000, respectively. Snail Inc. and Subsidiaries Notes to Consolidated Financial Statements Our RSUs granted to employees vest upon the achievement of pre-determined performance-based milestones as well as service conditions (“PSUs”). The pre-determined performance-based milestones are based on specified percentages of the PSUs that would vest at each of the first five anniversaries of the IPO date if the Company’s average annual growth rate (“AAGR”) is calculated to be at a target percentage or above during the period between the Company’s IPO Date and the annual revenue for each of the anniversary year. If these performance-based milestones are not met but service conditions are met, the PSUs will not vest, in which case any compensation expense the Company has recognized to date will be reversed. Generally, the total aggregate measurement period of our PSUs is <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dtY_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zNBHVWAKfEBk" title="Vesting period">5 years, with awards cliff-vesting after each annual measurement period during the total aggregate measurement period. Each quarter, the Company updates our assessment of the probability that the performance milestones will be achieved. The Company amortizes the fair values of PSUs over the requisite service period. Each performance-based milestone is weighted evenly and the number of shares that vest based on each performance-based milestone is independent from the other. The following table summarizes our PSU activity with employees, presented with the maximum number of shares that could potentially vest, for the years ended December 31, 2024 and 2023. <p id="xdx_893_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__us-gaap--EmployeeStockMember_z3eHX8hK0y8l" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY <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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Outstanding as of January 1, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zMvGHgQCakhb" style="width: 16%; text-align: right" title="Outstanding, beginning balance">1,165,247</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z7MazMMjjMo1" 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_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z8m9pb04t9hl" style="text-align: right" title="Outstanding, granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zV40YdBOYKrd" style="text-align: right" title="Outstanding, granted per share">—</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_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zOiNhvU6lVd6" style="text-align: right" title="Outstanding, vested">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zxWSd4G9TqWf" style="text-align: right" title="Weighted-average grant-date fair value, vested">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zM99mgK3fGCl" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, forfeited or cancelled">(22,963</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z0qUi70r6cll" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, forfeited or cancelled per share">(5.00</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding as of December 31, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zUZnus0LOk68" style="border-bottom: Black 2.5pt double; text-align: right" title="Outstanding, ending balance">1,142,284</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">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zVnrhGFff97h" style="border-bottom: Black 2.5pt double; text-align: right" title="Outstanding, ending balance per share">5.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Outstanding as of January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zRDJxKx2gqx6" style="width: 16%; text-align: right" title="Outstanding, beginning balance">1,197,552</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z8G2OqbgIn0c" style="width: 16%; text-align: right" title="Weighted-average grant-date fair value, beginning balance">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_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zQ315dHi3M4c" style="text-align: right" title="Outstanding, granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_ztG0zG0TXAm" style="text-align: right" title="Weighted-average grant-date fair value, granted">—</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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zUKu6x8tXgO1" style="text-align: right" title="Outstanding, vested">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z51PB88F4yR5" style="text-align: right" title="Weighted-average grant-date fair value, vested">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z3UOTUUD2jU3" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, forfeited or cancelled">(32,305</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zEec5aQnBygd" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-average grant-date fair value, forfeited or cancelled">(5.00</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding as of December 31, 2023</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z0D3o4AOImBe" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance">1,165,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zYhoqZawj3bh" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-average grant-date fair value, ending balance">5.00</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> 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. Repurchase Activity All share repurchases settled in the year ended December 31, 2023 were open market transactions. As of December 31, 2024 and 2023, 1,350,275 shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $3.7 million. The average price paid per share was $<span id="xdx_90C_eus-gaap--AcceleratedShareRepurchasesFinalPricePaidPerShare_pid_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zfBBupLWkr6i" title="Average price paid per share">2.72 and approximately $<span id="xdx_909_eus-gaap--StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1_iI_pn5n6_c20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zSoEaFAXffjg" title="Value of shares available for repurchase">1.3 million aggregate amount of shares of Class A common stock remain available for repurchase under the Share Repurchase Program. There were <span id="xdx_904_eus-gaap--StockRepurchasedDuringPeriodShares_do_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zaL3qplFo15a" title="Number of shares repurchased during period">no share repurchases made during the year ended December 31, 2024. During the year ended December 31, 2023, <span id="xdx_901_eus-gaap--StockRepurchasedDuringPeriodShares_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_z4rdf2PqpdT2" title="Number of shares repurchased during period">152,626 shares of Class A common stock were repurchased pursuant to the Share Repurchase Program for an aggregate purchase price of approximately $<span id="xdx_90B_eus-gaap--StockRepurchasedDuringPeriodValue_pn5n6_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_z51ReOlVIfnc" title="Purchase price of share repurchased during period">0.3 million. The average price paid per share during the year ended December 31, 2023 was $<span id="xdx_903_eus-gaap--AcceleratedShareRepurchasesFinalPricePaidPerShare_pid_c20230101__20231231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_z2gpltRV8XO8" title="Average price paid per share">1.68. Stock-Based Compensation Expense (Income) During the year ended December 31, 2024, the Company determined that it is probable that the Company will not meet the performance-based milestones required by the RSU’s granted to employees. Accordingly, the Company has reversed the previously recognized compensation expense related to RSU’s. Stock-based compensation expense (income) resulting from RSUs and PSUs of ($<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_iN_di_c20240101__20241231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zw6P2lVHZ2ng" title="Stock based compensation">828,495) and <span id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zc7JOV7fKUr6" title="Stock based compensation">799,955 are recorded under general and administrative expenses included in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2024 and 2023, respectively. Stock-based compensation expense (income) resulting from PSUs of ($<span id="xdx_903_eus-gaap--AllocatedShareBasedCompensationExpense_iN_di_c20240101__20241231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zSAM4zQZtUa7" title="Stock based compensation">61,713) and $<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_z4WLPdzzeX71" title="Stock-based compensation expense (income)">48,080 are recorded under research and development expenses included in our consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2024 and 2023, respectively. During the twelve months ended December 31, 2024 and 2023, the Company recognized approximately $201,815 of deferred income tax expense, and $185,432 of deferred income tax benefit, respectively, related to our stock-based compensation expense. As of December 31, 2024, our total unrecognized compensation cost related to RSUs and PSUs was approximately $<span id="xdx_906_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions_iI_pn5n6_c20241231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zL3FsAy08Tw4" title="Unrecognized compensation cost">2.1 million and is expected to be recognized over a weighted-average service period of <span id="xdx_906_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zAmLC7XzDiGi" title="Weighted-average service period of recognition">2.0 years.

2 1 10

120000

1.25

6.25

1080000

714285

1000000

1080000

0.074

0.075

0.16

2024-05-24

SCHEDULE OF PROCEEDS BETWEEN INSTRUMENTS ISSUED <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="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td style="text-align: center"> </td> <td style="text-align: center"> </td><td id="xdx_494_20230801__20230831_ziSHW62rykoh" style="text-align: center"> </td><td style="text-align: center"> </td></tr> <tr id="xdx_40C_eus-gaap--ProceedsFromConvertibleDebt_maPFIOCzziA_z5cl9xwmry13" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">554,246</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--ProceedsFromIssuanceOfDerivativeLiability_maPFIOCzziA_zZPkImgJXKi3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Derivative liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--ProceedsFromIssuanceOfWarrants_maPFIOCzziA_zh3fm2krdJVc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">445,754</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ProceedsFromIssuanceOfCommonStock_iT_mtPFIOCzziA_z2t6lKqYBe0e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total proceeds</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,000,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

554246

445754

1000000

525754

152500

The following is a summary of the Convertible Notes as of December 31, 2023: SCHEDULE OF CONVERTIBLE NOTES <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="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center">Principal</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center">Unamortized debt discount and issuance</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt; text-align: center">Net carrying</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Fair value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">costs</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Levelling</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; text-align: left">Convertible Notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DebtInstrumentFaceAmount_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_z5tJCekJOCl" style="width: 9%; text-align: right" title="Principal Amount">860,910</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zN4dxLRvBrXg" style="width: 9%; text-align: right" title="Unamortized debt discount and issuance costs">(63,549</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DebtInstrumentCarryingAmount_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zWRc8clVOFpi" style="width: 9%; text-align: right" title="Net carrying amount">797,361</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DebtInstrumentFairValue_iI_c20231231__us-gaap--LongtermDebtTypeAxis__us-gaap--ConvertibleDebtMember_zmYaLNDfziCj" style="width: 9%; text-align: right" title="Fair value amount">536,170</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: 9%; text-align: right">Level 3</td><td style="width: 1%; text-align: left"> </td></tr> </table>

860910

-63549

797361

536170

1.034

309433

22725

222628

64080

424460

29025

306664

88951

1071750

60000

71460

714285

1.89

<p id="xdx_893_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_hus-gaap--StatementEquityComponentsAxis__custom--ConvertibleNoteWarrantsMember_zd7QbuN4zWel" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF FAIR VALUE OF WARRANTS <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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--SharePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zdTTYY2e6hv3" style="width: 18%; text-align: right" title="Stock price">1.86</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--SharePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zo4wkNZbOIUg" style="width: 18%; text-align: right" title="Stock price">1.21</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_z2I4iAeMNXad" style="text-align: right" title="Exercise price">0.84</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zy6rcbIdsVq5" style="text-align: right" title="Exercise price">1.89</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Contractual term (years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_znbVmGZHPXoh" style="text-align: right" title="Contractual term (years)">3.65</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zbO9klPiKi3f" style="text-align: right" title="Contractual term (years)">4.65</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_z7RweN5PVR6g" style="text-align: right" title="Volatility">60.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zyeuvFsrNKki" style="text-align: right" title="Volatility">50.0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zDUzW1aeyRO5" style="text-align: right" title="Risk-free rate">4.31</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--ConvertibleNoteWarrantsMember_zHPLrWIio3rb" style="text-align: right" title="Risk-free rate">3.87</td><td style="text-align: left">%</td></tr> </table>

1.86

1.21

0.84

1.89

P3Y7M24D

P4Y7M24D

0.600

0.500

0.0431

0.0387

0.05

1448109

480281

1006294

34527

202379

170000

115800

5000000

0.0999

5000000

15093768

367647

105411

367647

1.50

<p id="xdx_899_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_hus-gaap--StatementEquityComponentsAxis__custom--EquityLineWarrantsMember_zJwzPuSSS4Oe" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF FAIR VALUE OF WARRANTS <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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2023</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--SharePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zwgrZowtAr63" style="width: 18%; text-align: right" title="Stock price">1.86</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--SharePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_ztZl2acMt8j9" style="width: 18%; text-align: right" title="Stock price">1.21</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zltYHIPGwyLg" style="text-align: right" title="Exercise price">1.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_z57HBMnXwSAk" style="text-align: right" title="Exercise price">1.50</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Contractual term (years)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_z6yQ02nnE5ce" style="text-align: right" title="Contractual term (years)">3.65</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_z3swHHlMK4l9" style="text-align: right" title="Contractual term (years)">4.65</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zOR4sgInTPgd" style="text-align: right" title="Volatility">60.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zsnmY0GkhMml" style="text-align: right" title="Volatility">50.0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20240101__20241231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zfk4btc6ppJg" style="text-align: right" title="Risk-free rate">4.31</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20230101__20231231__us-gaap--FinancialInstrumentAxis__custom--EquityLineWarrantsMember_zrbPF7BukXCh" style="text-align: right" title="Risk-free rate">3.87</td><td style="text-align: left">%</td></tr> </table>

1.86

1.21

1.50

P3Y7M24D

P4Y7M24D

0.600

0.500

0.0431

0.0387

0.05

292004

103767

192945

1644

33333

50000

17776

P1Y

<p id="xdx_89E_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__srt--DirectorMember_zc01ukeRdHla" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY <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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Outstanding as of January 1, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zMBv3lz6Kls2" style="width: 18%; text-align: right" title="Outstanding, beginning balance">43,478</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_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQnc6CWLoxRa" style="width: 18%; text-align: right" title="Outstanding, beginning balance per share">1.38</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_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zO2Vzuq77hsd" style="text-align: right" title="Outstanding granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z86Ht9Tj7Iij" style="text-align: right" title="Outstanding granted per share">—</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_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zn1RIeW3XI8b" style="text-align: right" title="Outstanding vested">(43,478</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJQhB9jqeJre" style="text-align: right" title="Weighted-average grant-date fair value, vested">(1.38</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_ztTuFLggn0C2" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4AxShy7Y3Me" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled per share">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding as of December 31, 2024</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zmVZSkYmXrf5" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20240101__20241231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zdfFI5zPww6j" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance per share">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> <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="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Outstanding as of January 1, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zvA2gUS1DUdj" style="width: 18%; 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_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbl6IeEuZ26i" style="width: 18%; 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_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z7uLbms7Wt7g" style="text-align: right" title="Outstanding granted">43,478</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zEJUkTiXK55g" style="text-align: right" title="Outstanding granted per share">1.38</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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zpt5GmxVGtO5" style="text-align: right" title="Outstanding vested">(24,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z05jYe39rkRa" style="text-align: right" title="Weighted-average grant-date fair value, vested">(5.00</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zv6PglUK3fO2" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zc9iJCd7E4Gf" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding forfeited or cancelled per share">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding as of December 31, 2023</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zNuI9NnmmYA9" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance">43,478</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20231231__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKaq7UwT1iSd" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance per share">1.38</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

43478

1.38

43478

1.38

24000

5.00

43478

1.38

24000

5.00

43478

1.38

60000

120000

P5Y

<p id="xdx_893_eus-gaap--ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock_hsrt--TitleOfIndividualAxis__us-gaap--EmployeeStockMember_z3eHX8hK0y8l" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY <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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Outstanding as of January 1, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zMvGHgQCakhb" style="width: 16%; text-align: right" title="Outstanding, beginning balance">1,165,247</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z7MazMMjjMo1" 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_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z8m9pb04t9hl" style="text-align: right" title="Outstanding, granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zV40YdBOYKrd" style="text-align: right" title="Outstanding, granted per share">—</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_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zOiNhvU6lVd6" style="text-align: right" title="Outstanding, vested">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zxWSd4G9TqWf" style="text-align: right" title="Weighted-average grant-date fair value, vested">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zM99mgK3fGCl" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, forfeited or cancelled">(22,963</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z0qUi70r6cll" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, forfeited or cancelled per share">(5.00</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding as of December 31, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zUZnus0LOk68" style="border-bottom: Black 2.5pt double; text-align: right" title="Outstanding, ending balance">1,142,284</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_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20240101__20241231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zVnrhGFff97h" 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> <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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Restricted Stock Units</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Grant-Date Fair Values</td><td style="padding-bottom: 1pt"> </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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zRDJxKx2gqx6" 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_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z8G2OqbgIn0c" style="width: 16%; text-align: right" title="Weighted-average grant-date fair value, beginning balance">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_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zQ315dHi3M4c" style="text-align: right" title="Outstanding, granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_ztG0zG0TXAm" style="text-align: right" title="Weighted-average grant-date fair value, granted">—</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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zUKu6x8tXgO1" style="text-align: right" title="Outstanding, vested">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z51PB88F4yR5" style="text-align: right" title="Weighted-average grant-date fair value, vested">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Forfeited or cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z3UOTUUD2jU3" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, forfeited or cancelled">(32,305</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_iN_di_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zEec5aQnBygd" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-average grant-date fair value, forfeited or cancelled">(5.00</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding as of December 31, 2023</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_z0D3o4AOImBe" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding, ending balance">1,165,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20231231__srt--TitleOfIndividualAxis__custom--EmployeesMember__us-gaap--AwardTypeAxis__us-gaap--PerformanceSharesMember_zYhoqZawj3bh" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-average grant-date fair value, ending balance">5.00</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

1165247

5.00

22963

5.00

1142284

5.00

1197552

5.00

32305

5.00

1165247

5.00

1350275

3700000

2.72

1300000

152626

300000

1.68

-828495

799955

-61713

48080

201815

185432

2100000

P2Y

NOTE 18 – OPERATING SEGMENTS The Company’s Chief Operating Decision Maker (“CODM”) is our Founder, Co-Chief Executive Officer, Chief Strategy Officer, and Chairman Mr. Hai Shi. The CODM assesses performance and decides how to allocate resources based on net income (loss) to evaluate operational efficiency and direct resources of the Company. Segment assets are reported on the consolidated balance sheet as total assets. The table below presents segment revenue, operating profit and significant expenses for the years ended December 31, 2024 and 2023: SCHEDULE OF SEGMENT REVENUE, OPERATING PROFIT AND SIGNIFICANT EXPENSES <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: right"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20240101__20241231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_zOdlXvhkOK9b" style="border-bottom: Black 1pt solid; font-weight: bold; font-style: italic; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20230101__20231231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_zESkMEraTeVh" style="border-bottom: Black 1pt solid; font-weight: bold; font-style: italic; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold; font-style: italic"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_maGPzvV1_zUitZSbNuoI" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Revenues, net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">84,467,047</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">60,902,098</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CostOfGoodsAndServicesSold_msGPzvV1_zO4fbOOxIEUc" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Cost of revenues</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">54,236,342</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">48,306,403</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--GrossProfit_iT_mtGPzvV1_maOILz16m_z5OaNcf3XgYi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Gross profit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">30,230,705</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,595,695</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingExpensesAbstract_iB_zLGvaNs4gWnl" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Operating expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LaborAndRelatedExpense_maOEzI8u_zFckuAFzser7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Salaries and Wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,962,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,288,594</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OtherExpenses_maOEzI8u_zIDUn2H9lTM8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Public Company Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">567,285</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">963,109</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--GeneralAndAdministrativeExpense_maOEzI8u_zz8xzRWlPaok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">General and administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,337,228</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,564,812</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--ResearchAndDevelopmentExpense_maOEzI8u_zPttLZtbKkRj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,647,293</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,057,421</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--MarketingAndAdvertisingExpense_maOEzI8u_zZCv1IrdoJB8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Advertising and marketing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,523,398</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,582,464</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--Depreciation_maOEzI8u_z3onO9AQPCD1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">303,714</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">432,306</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingExpenses_iT_mtOEzI8u_msOILz16m_zrtnApYFiLw5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total operating expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,341,615</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">22,888,706</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingIncomeLoss_iT_mtOILz16m_maILFCOzezD_zCp8AryKcnxf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Income (loss) from operations</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,889,090</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,293,011</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NonoperatingIncomeExpense_maILFCOzezD_zWrpAwGkBxah" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total other income (expense), net</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,429,891</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,202,065</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_iT_mtILFCOzezD_maPLzQFg_zmWWVgm6ddKd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Income (loss) before provision for (benefit from) income taxes</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left">$</td><td style="padding-bottom: 1pt; text-align: right">2,459,199</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left">$</td><td style="padding-bottom: 1pt; text-align: right">(11,495,076</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxExpenseBenefit_msPLzQFg_zQhZq4RWAi5h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Provision for (benefit from) income taxes</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">632,124</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">(2,400,652</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ProfitLoss_mtPLzQFg_z9qms2nt3A7i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net income (loss)</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">1,827,075</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">(9,094,424</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> There are no additional segment items requiring separate disclosure. Interest income, interest expense, other income and foreign currency transactions are captured in the total other income (expense), net line item. The Company continues to report revenue by geographic region as part of its revenue disclosures, see Note 3 – Revenue from Contracts with Customers. The CFO provides reports to the CODM for key decision making purposes.

SCHEDULE OF SEGMENT REVENUE, OPERATING PROFIT AND SIGNIFICANT EXPENSES <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: right"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20240101__20241231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_zOdlXvhkOK9b" style="border-bottom: Black 1pt solid; font-weight: bold; font-style: italic; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20230101__20231231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_zESkMEraTeVh" style="border-bottom: Black 1pt solid; font-weight: bold; font-style: italic; text-align: center">2023</td><td style="padding-bottom: 1pt; font-weight: bold; font-style: italic"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_maGPzvV1_zUitZSbNuoI" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Revenues, net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">84,467,047</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">60,902,098</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CostOfGoodsAndServicesSold_msGPzvV1_zO4fbOOxIEUc" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Cost of revenues</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">54,236,342</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">48,306,403</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--GrossProfit_iT_mtGPzvV1_maOILz16m_z5OaNcf3XgYi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Gross profit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">30,230,705</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,595,695</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingExpensesAbstract_iB_zLGvaNs4gWnl" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Operating expenses:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LaborAndRelatedExpense_maOEzI8u_zFckuAFzser7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Salaries and Wages</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,962,697</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,288,594</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OtherExpenses_maOEzI8u_zIDUn2H9lTM8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Public Company Expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">567,285</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">963,109</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--GeneralAndAdministrativeExpense_maOEzI8u_zz8xzRWlPaok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">General and administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,337,228</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,564,812</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--ResearchAndDevelopmentExpense_maOEzI8u_zPttLZtbKkRj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,647,293</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,057,421</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--MarketingAndAdvertisingExpense_maOEzI8u_zZCv1IrdoJB8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Advertising and marketing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,523,398</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,582,464</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--Depreciation_maOEzI8u_z3onO9AQPCD1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">303,714</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">432,306</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingExpenses_iT_mtOEzI8u_msOILz16m_zrtnApYFiLw5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total operating expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,341,615</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">22,888,706</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OperatingIncomeLoss_iT_mtOILz16m_maILFCOzezD_zCp8AryKcnxf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Income (loss) from operations</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,889,090</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(10,293,011</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--NonoperatingIncomeExpense_maILFCOzezD_zWrpAwGkBxah" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Total other income (expense), net</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,429,891</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,202,065</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_iT_mtILFCOzezD_maPLzQFg_zmWWVgm6ddKd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Income (loss) before provision for (benefit from) income taxes</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left">$</td><td style="padding-bottom: 1pt; text-align: right">2,459,199</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left">$</td><td style="padding-bottom: 1pt; text-align: right">(11,495,076</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxExpenseBenefit_msPLzQFg_zQhZq4RWAi5h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Provision for (benefit from) income taxes</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">632,124</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">(2,400,652</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ProfitLoss_mtPLzQFg_z9qms2nt3A7i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net income (loss)</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">1,827,075</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">(9,094,424</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

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NOTE 19 – SUBSEQUENT EVENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In January 2025, the Company extended its development with its related party, Suzhou Snail, to outsource completion of the For the Stars project. Under the terms of the agreement, Suzhou Snail will develop and outsource development need to complete the project For the Stars. The Company will retain all rights, title and interest, including the intellectual property for the project. In return, the Company will pay Suzhou Snail $<span id="xdx_905_eus-gaap--RoyaltyExpense_pn5n6_c20250101__20250131__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--DevelopmentAgreementMember_zqS7A3UUgAM6" title="Royalty expense">4.1 million in twelve equal monthly installments of $<span id="xdx_905_eus-gaap--ReplacementReserveEscrow_iI_c20250101__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--DevelopmentAgreementMember_zUzbkdCUas6h" title="Installments">340,600, beginning on January 1, 2025.</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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In February 2025, the Company issued $<span id="xdx_90B_eus-gaap--DebtInstrumentIncreaseAccruedInterest_pn5n6_c20250201__20250228__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zZpl2PPXHIil" title="Accrued interest and principal">3.3 million of convertible debt to the holders of the Company’s previous convertible notes. The Company issued the notes at a 10% discount and the notes bear interest at a rate of 5%. The convertible notes initial conversion price is $5.00 or the market price subject to certain adjustments. The notes are repayable in equal monthly amounts beginning in May 2025 and ending in February 2026.</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; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">In February 2025, the Company entered into a subscription agreement with one of its platforms for a period of five weeks. In return, the Company will receive a one time payment.</td></tr> </table>

4100000

340600

3300000

The Company issued the notes at a 10% discount and the notes bear interest at a rate of 5%

5.00

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