On March 26, 2026, Snail, Inc., a Delaware corporation, received a deficiency letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC. The letter notified the company that it is not in compliance with the requirement to maintain a minimum of $500,000 in net income from continuing operations in the most recently completed fiscal year, or two of the last three fiscal years. The company reported net income from continuing operations in 2024 but incurred net losses in 2023 and 2025. Additionally, Snail, Inc. did not meet either of the alternative Nasdaq continued listing standards, which include a market value of listed securities of at least $35 million or a minimum stockholders' equity requirement of at least $2,500,000. The company has 45 calendar days to submit a plan to regain compliance, with the possibility of an extension of up to 180 days if the plan is accepted. The letter does not have an immediate effect on the listing of the company's Class A Common Stock, which continues to trade on The Nasdaq Capital Market, subject to compliance with other listing requirements. Snail, Inc. is considering various options to regain compliance, including potential equity and/or debt financing arrangements. However, there is no assurance that the company will be successful in developing a compliance plan or that it will ultimately regain compliance within the allotted extension period.

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