Snail, Inc. Segments Disclosure
NOTE 18 – OPERATING SEGMENTS
The Company’s Chief Operating Decision Maker (“CODM”) is our Founder, 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 sheets as total assets. The table below presents segment revenue, operating profit and significant expenses for the years ended December 31, 2025 and 2024:
| 2025 | 2024 | |||||||
| Revenues, net | $ | 81,225,622 | $ | 84,467,047 | ||||
| Cost of revenues | 58,794,947 | 54,236,342 | ||||||
| Gross profit | 22,430,675 | 30,230,705 | ||||||
| Operating expenses: | ||||||||
| Salaries and Wages | 7,806,131 | 4,962,697 | ||||||
| Public Company Expenses | 741,666 | 567,285 | ||||||
| General and administrative | 11,080,591 | 7,337,228 | ||||||
| Research and development | 14,580,668 | 11,647,293 | ||||||
| Advertising and marketing | 5,236,951 | 1,523,398 | ||||||
| Depreciation | 247,976 | 303,714 | ||||||
| Total operating expenses | 39,693,983 | 26,341,615 | ||||||
| Income (loss) from operations | (17,263,308 | ) | 3,889,090 | |||||
| Total other income (expense), net | 714,476 | (1,429,891 | ) | |||||
| Income (loss) before provision for income taxes | $ | (16,548,832 | ) | $ | 2,459,199 | |||
| Provision for income taxes | 10,688,900 | 632,124 | ||||||
| Net income (loss) | $ | (27,237,732 | ) | $ | 1,827,075 | |||
Depreciation expense is consistent with that presented in the consolidated statements of cash flows. 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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.