v3.26.1
INTANGIBLE ASSETS, NET
 6 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
INTANGIBLE ASSETS, NET

NOTE 9 – INTANGIBLE ASSETS, NET

 

Intangible assets, net 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 June 30, 2026 and December 31, 2025:

 

   June 30, 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   $(137,248,333)  $—   $4,416,667   3 - 5 years
License rights   6,164,818    (3,381,659)   —    2,783,159   5 years
Software   1,160,478    (315,982)   —    844,496   3 - 5 years
Trademark   10,745    (10,745)   —    —   12 years
In-progress patent   270,886    —    —    270,886    
Total:  $149,271,927   $(140,956,719)  $—   $8,315,208    

 

   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 $427,314 and $43,908 for the three months ended June 30, 2026 and 2025, respectively. Amortization expense was $827,756 and $79,424 for the six months ended June 30, 2026 and 2025, respectively. These amounts are included in cost of revenues in the accompanying condensed consolidated statements of operations and comprehensive loss. The weighted average remaining useful life for which amortization expense will be recognized is 3.4 years as of June 30, 2026. The Company has capitalized $0.7 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  $854,627 
2027   1,709,254 
2028   1,709,254 
2029   1,702,254 
2030   1,391,461 
Thereafter   948,358 
Total  $8,315,208 

 

 

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements