SNAL · Snail, Inc. Class A Common Stock

The two agreements disclosed represent strategically significant, related-party contractual adjustments that directly impact Snail’s cost structure and development pipeline. The ARK1 License Amendment materially lowers recurring licensing expenses—reducing annual cash outflow by $6 million—while preserving the Company’s exclusive global publishing rights to both ARK: Survival Evolved and ARK: Survival Ascended. Critically, the narrowed DLC payment trigger reflects a negotiated recalibration of value transfer: payments now apply only to major, map-based canonical expansions, excluding incremental content already bundled in ASA, thereby aligning financial obligations more closely with material feature additions. Simultaneously, the outsourcing agreement with Suzhou Snail formalizes internal development capacity for Project Aether—a new title under active development—with full IP ownership retained by Snail, mitigating long-term royalty or licensing dependencies. Both agreements involve entities controlled or led by Snail’s top executives (Hai Shi and Ying Zhou), underscoring concentrated governance and operational interdependence. For investors, this signals continued reliance on affiliated parties for core IP licensing and development, introducing execution and oversight considerations alongside near-term cash flow relief. The absence of revenue or margin disclosures, guidance, or balance sheet impacts limits forward-looking financial inference—but the scale and recurrence of these arrangements warrant close monitoring of related-party transaction disclosures and audit committee oversight.