SNAL · Snail, Inc. Class A Common Stock

Snail, Inc. disclosed that it received a deficiency letter from Nasdaq on March 26, 2026, indicating non-compliance with the exchange's continued listing requirements. The specific failure relates to the Net Income Requirement, which mandates a minimum of $500,000 in net income from continuing operations for the most recent fiscal year or two of the last three fiscal years. According to the filing, the Company reported net income from continuing operations only in 2024, while incurring net losses in 2023 and 2025. Furthermore, the Company failed to satisfy the alternative listing standards, falling short of both the $35 million market value of listed securities threshold and the $2.5 million minimum stockholders' equity requirement.

The filing states that the Company has 45 calendar days, until May 11, 2026, to submit a plan to regain compliance. If accepted, Nasdaq may grant an extension of up to 180 days. Management indicated it intends to submit the plan and is exploring options such as equity or debt financing. However, the Company explicitly cautioned that there is no assurance the plan will be accepted or that it will ultimately regain compliance. Despite the notice, the Company's Class A Common Stock continues to trade on the Nasdaq Capital Market, subject to other continued listing requirements. This development poses a significant risk to investors regarding the future liquidity and listing status of the Company's securities.