v3.26.1
INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
INTANGIBLE ASSETS

NOTE 9 – INTANGIBLE ASSETS

 

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

 

The following tables reflect all the intangible assets presented on the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025:

 

   March 31, 2026    
   Gross               Weighted
   Carrying   Accumulated   Impairment   Net Book   Average
   Amount   Amortization   Loss   Value   Useful Life
Software and license rights from related parties  $141,665,000   $(136,998,333)  $        —   $4,666,667   3 - 5 years
License rights   5,937,087    (3,258,716)   —    2,678,371   5 years
Software   1,160,478    (261,611)   —    898,867   3 - 5 years
Trademark   10,745    (10,745)   —    —   12 years
In-progress patent   270,886    —    —    270,886    
Total:  $149,044,196   $(140,529,405)  $—   $8,514,791    

 

   December 31, 2025    
   Gross               Weighted
   Carrying   Accumulated   Impairment   Net Book   Average
   Amount   Amortization   Loss   Value   Useful Life
Software and license rights from related parties  $141,665,000   $(136,748,333)  $—   $4,916,667   3 - 5 years
License rights   6,217,896    (3,162,645)   (451,447)   2,603,804   5 years
Software   1,376,490    (207,240)   (216,013)   953,237   3 - 5 years
Trademark   10,745    (10,745)   —    —   12 years
In-progress patent   270,886    —    —    270,886    
Total:  $149,541,017   $(140,128,963)  $(667,460)  $8,744,594    

 

Amortization expense was $400,442 and $35,516 for the three months ended March 31, 2026 and 2025, respectively. These amounts are included in cost of revenues in the accompanying condensed consolidated statements of operations and comprehensive income (loss). The weighted average remaining useful life for which amortization expense will be recognized is 3.4 years as of March 31, 2026. The Company has capitalized $0.2 million in development costs for titles that have reached technological feasibility but have not yet launched, and as such, are included in the thereafter amount in the table below. Future amortization expense of intangible assets is as follows:

 

Years ending December 31,  Amount 
Remainder of 2026  $1,201,326 
2027   1,601,769 
2028   1,601,769 
2029   1,594,769 
2030   1,283,975 
Thereafter   1,231,183 
Total  $8,514,791 

 

 

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements