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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Disaggregation of revenue

 

Geography

 

The Company attributes net revenue to geographic regions based on customer location. Net revenue by geographic region for the three and nine months ended September 30, 2023 and 2022 were as follows:

 

   2023   2022   2023   2022 
  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
United States  $8,615,877   $14,767,182   $28,757,507   $55,025,810 
International   365,258    846,989    3,574,369    4,106,474 
Total revenue from contracts with customers:  $8,981,135   $15,614,171   $32,331,876   $59,132,284 

 

Platform

 

Net revenue by platform for the three and nine months ended September 30, 2023 and 2022 were as follows:

 

    2023     2022     2023     2022  
   

Three months ended

September 30,

    

Nine months ended

September 30,

  
    2023     2022     2023     2022  
Console   $ 3,862,923     $ 3,750,029     $ 13,262,988     $ 27,157,380  
PC     3,717,627       9,315,721       12,097,176       22,943,193  
Mobile     1,400,585       2,161,624       4,626,820       7,346,822  
Other     -       386,797       2,344,892       1,684,889  
Total revenue from contracts with customers:   $ 8,981,135     $ 15,614,171     $ 32,331,876     $ 59,132,284  

 

Distribution channel

 

Our products are delivered through digital online services (digital download, online platforms, and cloud streaming), mobile, and retail distribution and other. Net revenue by distribution channel for the three and nine months ended September 30, 2023 and 2022 was as follows:

 

    2023     2022     2023     2022  
   

Three months ended

September 30,

    

Nine months ended

September 30,

  
    2023     2022     2023     2022  
Digital   $ 7,580,550     $ 13,065,750     $ 25,360,164     $ 50,100,573  
Mobile     1,400,585       2,161,624       4,626,820       7,346,822  
Physical retail and other     -       386,797       2,344,892       1,684,889  
Total revenue from contracts with customers:   $ 8,981,135     $ 15,614,171     $ 32,331,876     $ 59,132,284  

 

 

Snail Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

 

Deferred Revenue

 

The Company records deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations; reductions to deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, which were in the ordinary course of business. As of September 30, 2023, the balance of deferred revenue was $11,528,759, of which $5.7 million is due to non-refundable payments. The Company is expecting to recognize $2.1 million of the $5.7 million in the next 12 months through the platform releases of certain DLCs and ARK: Survival Ascended, and the remaining $3.6 million in the next 24 months through the release of ARK 2. The Company expects to recognize $5.8 million of current deferred revenues and $5.7 million of long term deferred revenue as revenue over the next 12 to 60 months. The revenue will be recognized primarily on a straight-line basis, based on our estimates of technical support obligations, the usage of consumable virtual goods and upon the activation of durable virtual goods. Activities in the Company’s deferred revenue as of September 30, 2023 and December 31, 2022 were as follows:

 

   2023   2022 
Deferred revenue, beginning balance in advance of revenue recognition billing  $9,551,446   $20,280,934 
Revenue recognized   (5,223,331)   (18,832,396)
Revenue deferred   7,200,644    8,102,908 
Deferred revenue, ending balance   11,528,759    9,551,446 
Less: current portion   (5,848,320)   (4,335,404)
Deferred revenue, long term  $5,680,439   $5,216,042