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EARNINGS (LOSS) PER SHARE
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
EARNINGS (LOSS) PER SHARE

NOTE 19 – EARNINGS (LOSS) PER SHARE

 

The Company uses the two class method to compute its basic earnings (loss) per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). The following table summarizes the computations of basic EPS and diluted EPS. The allocation of earnings between Class A and Class B shares is based on their respective economic rights to the undistributed earnings of the Company. Basic EPS is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur using the treasury stock method. The restricted stock units, underwriters warrants and warrants issued in connection with the convertible debt and equity line of credit were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect for the three and nine months ended September 30, 2023. The convertible notes were excluded from the if-converted method computation of diluted shares as their inclusion would have had an antidilutive effect for the three and nine months ended September 30, 2023. There were no such exclusions made in the 2022 calculation. For the three and nine months ended September 30, 2022, the Company has used the number of shares transferred in the reorganization transaction for the denominator in the EPS calculation. The following table provides a reconciliation of the weighted average number of shares used in the calculation of basic and diluted EPS.

 

   2023   2022   2023   2022 
   For the three months ended
September 30,		   For the nine months ended
September 30,		 
   2023   2022   2023   2022 
Basic Earnings Per Share:                    
Net (loss) income attributable to Class A common stockholders  $(955,763)  $(1,538,738)  $(2,477,768)  $3,218,022 
Net (loss) attributable to Class B common stockholders   (3,476,869)   -    (9,005,673)   - 
Total net (loss) income attributable to Snail Inc and Snail Games USA Inc.  $(4,432,632)  $(1,538,738)  $(11,483,441)  $3,218,022 
Class A weighted average shares outstanding - basic   7,901,145    35,000,000    7,909,715    35,000,000 
Class B weighted average shares outstanding - basic   28,748,580    -    28,748,580    - 
Class A and B basic earnings per share  $(0.12)  $(0.04)  $(0.31)  $0.09 
                     
Diluted Earnings Per Share:                    
Net (loss) income attributable to Class A common stockholders  $(955,763)  $(1,538,738)  $(2,477,768)  $3,218,022 
Net (loss) attributable to Class B common stockholders  $(3,476,869)  $-   $(9,005,673)  $- 
Class A weighted average shares outstanding - basic   7,901,145    35,000,000    7,909,715    35,000,000 
Dilutive effects of common stock equivalents   -    -    -    - 
Class A weighted average shares outstanding - diluted   7,901,145    35,000,000    7,909,715    35,000,000 
Class B weighted average shares outstanding - basic   28,748,580    -    28,748,580    - 
Dilutive effects of common stock equivalents   -    -    -    - 
Class B weighted average shares outstanding - diluted   28,748,580    -    28,748,580    - 
                     
Diluted (loss) earnings per Class A and B share  $(0.12)  $(0.04)  $(0.31)  $0.09