Here are 1-2 brief analogies to describe Snail (SNAL):

• Like a publicly traded Mojang (creators of Minecraft), but focused on their popular sandbox survival game, 'ARK: Survival Evolved'.
• Similar to a smaller Electronic Arts or Activision Blizzard, but one that generates nearly all its revenue from a single blockbuster game, 'ARK: Survival Evolved'.

• ARK: Survival Evolved: A leading sandbox survival game and the company's flagship franchise, accounting for the substantial majority of its revenues.
• Portfolio of Interactive Digital Entertainment Games: A collection of premium games developed and published by Snail, ranging from indie titles to AAA franchises, designed for various platforms including consoles, PCs, and mobile devices.

Snail (SNAL) primarily sells its interactive digital entertainment products directly to individual consumers, also known as gamers, across various platforms. The company does not primarily sell to other businesses.

The three main categories of customers Snail serves are:

1. PC Gamers: Individuals who play Snail's games on personal computers, distributed through platforms such as Steam and Epic. This segment contributed approximately 40% of their fiscal year 2021 revenue.
2. Console Gamers: Individuals who play Snail's games on gaming consoles. This segment represented approximately 44% of their fiscal year 2021 revenue.
3. Mobile Gamers: Individuals who play Snail's games on mobile devices. This segment accounted for approximately 12% of their fiscal year 2021 revenue.

• Valve Corporation (operates Steam)
• Epic Games, Inc. (operates Epic platforms)

Hai Shi, Chief Executive Officer, Chief Strategy Officer & Chairman of the Board

Hai Shi is the founder of Suzhou Snail Digital Technology Co. Ltd. in April 2001, a company he led to become a pioneer in sandbox and massively multiplayer online role-playing games (MMORPGs) in Asia. He served as the Chief Executive Officer of Snail Games USA from its inception until November 2021. Mr. Shi was appointed Co-Chief Executive Officer of Snail Inc. on April 15, 2024, and subsequently became the sole Chief Executive Officer on October 1, 2025. He holds a Bachelor of Fine Arts from Nanjing Normal University.

Heidy Chow, Chief Financial Officer & Director

Heidy Chow has served as Snail's Chief Financial Officer since September 2020 and has been a member of Snail Games USA's Board of Directors since November 2021. Before joining Snail, Ms. Chow was a partner with the Pun Group, LLP from August 2015 to September 2020. She also held a manager position at Ernst and Young, a certified public accounting and advisory firm, from July 2014 to June 2015. She has over 18 years of experience in accounting.

Jim Tsai, Director

Jim Tsai previously served as the Chief Executive Officer of Snail Games USA from November 2021 until April 2024. Prior to this, he was the Chief Operating Officer of Snail Games USA from October 2020 to November 2021. From October 2015 to September 2020, Mr. Tsai was the Chief Executive Officer of SDE Inc., a video game developer company. His earlier career includes serving as Vice President of Snail Games USA Inc. from April 2014 to September 2015. Mr. Tsai has held various executive roles in the gaming industry, including Art Director at AM Mark Labels, Inc., Creative Director and Project Manager at CGCG, Executive Producer at InterServ International Inc., President of Interserv studio at Perfect World Co., Ltd., and Executive Producer at KongZhong Corp. He earned a Bachelor of Fine Arts from Chinese Culture University.

Peter Kang, Senior Vice President, Director of Business Development and Operations & Director

Peter Kang has served as Senior Vice President, Director of Business Development and Operations, and a Director at Snail. He held the role of Chief Operating Officer for Snail Games USA from December 2021, a position he also held previously from December 2012 to October 2020. Mr. Kang was the Vice President of Business Development for Snail Games USA from October 2020 to November 2021. Additionally, he served as the director of Snail Games USA's business development unit between 2015 and 2020 and as a producer for the game operations team between 2012 and 2015.

The key risks to Snail's business are:

1. Over-reliance on the ARK Franchise: Snail generates a substantial majority of its revenues from its ARK franchise, including 90.7%, 89.5%, and 80.5% of its revenues from ARK: Survival Evolved for the years ended December 31, 2021, 2020, and 2019, respectively. This heavy dependence on a single franchise, which also includes newer titles like ARK: Survival Ascended, means that the company's financial stability is highly susceptible to the continued popularity, sales performance, and successful development of new content or sequels within the ARK universe. Any decline in player engagement or sales of ARK titles could severely impact Snail's revenue and profitability.
2. Financial Health and Profitability Challenges: Despite the continued performance of its flagship franchise, Snail faces significant financial health and profitability challenges. The company has reported negative net margins, ongoing profitability challenges, and potential liquidity issues. For example, in Q1 2025, Snail reported a net loss of $1.9 million, and in Q2 2025, it had a net loss of $16.6 million. The company's financial performance presents various challenges, including a negative 3-year revenue growth rate and a net margin of -30.67%. This precarious financial position makes Snail particularly vulnerable to any downturn in its primary revenue stream and limits its capacity for sustained investment in diversification.

The addressable market for Snail's main products and services, which fall under the interactive digital entertainment sector, is the global gaming industry. This market was valued at approximately $192.7 billion in 2021 and is projected to grow to $225.7 billion by 2025. The market size is for the global region.

• Continued Expansion and Monetization of the ARK Franchise: Snail's flagship "ARK" franchise, including "ARK: Survival Ascended" (ASA), remains a primary revenue driver through new content and platform expansion. The company has a multi-year content roadmap for the ARK universe extending through 2027, featuring titles such as "ARK: Survival of the Fittest," "Bob's True Tales: Tides of Fortune," "ARK: World Creator," and "ARK: Dragontopia" in 2026, followed by "ARK: Atlantis" and "ARK: Legacy of Santiago Part 1" in 2027. Additionally, "PixARK Worlds" is being developed to expand the ARK universe onto the Nintendo Switch 2, incorporating user-generated content. The "ARK: Ultimate Mobile Edition" has also surpassed 10 million downloads, indicating continued growth potential in the mobile segment.
• Launch and Growth of New Gaming Intellectual Property (IP): Snail is diversifying its portfolio beyond ARK with new game releases. "Bellwright" has demonstrated strong player engagement, surpassing 1 million units sold, and is expected to contribute to revenue as it approaches its full 1.0 launch. The company also introduced a new AAA title, "For The Stars," an open-universe space survival RPG, at GDC 2026, and a new indie title, "Gobby Gang," is available for wishlisting on Steam. Other new releases like "Honeycomb" and "Echoes of Elysium" are also part of their expanding gaming portfolio.
• Recognition of Deferred Revenue: Snail has accumulated significant deferred revenue, largely from "ARK: Survival Ascended" and related content. This deferred revenue is expected to be recognized in the near term, positively impacting the company's top-line financial results. For instance, $5.8 million of deferred revenue related to "ARK: Lost Colony" was expected to be recognized in Q4 2025.
• Strategic Initiatives in Emerging Technologies and Platforms: Snail is exploring new avenues for growth, including venturing into the stablecoin market with SNAL Coins LLC. Furthermore, the company is embracing user-generated content with projects like "PixARK Worlds" for the Nintendo Switch 2 and a custom "ARK World Creator" for consoles, indicating a focus on community-driven content and expansion onto new hardware platforms. The "Interactive Films" initiative also represents an innovative approach to hybrid entertainment.

Share Issuance

• In 2022, Snail Games USA became an independent, domestic entity through a spin-off from Suzhou Snail Digital Technology Co. Ltd., in which Suzhou Snail’s shareholders received shares of common stock of Snail Games USA.

Outbound Investments

• Snail leverages its experience to identify and invest in promising game development studios.
• The company created the Wandering Wizard label specifically to invest in and grow indie titles developed by external teams.
• Snail collaborates with talented development teams, providing capital and other critical resources to achieve successful outcomes.