Snail, Inc. Reduces ARK1 License Fees by $500,000 Monthly to $1.5 Million Through Amendment
Snail, Inc. has executed Amendment No. 3 to its Amended and Restated Exclusive Software License Agreement (ARK1 License Agreement) with SDE Inc., effective April 1, 2026. This amendment significantly reduces Snail's monthly licensing fees for the exclusive worldwide rights to publish and sell ARK: Survival Evolved and ARK: Survival Ascended from $2 million to $1.5 million, resulting in a $500,000 monthly cost saving. Furthermore, the amendment refines the terms for a one-time $5 million payment for certain downloadable content (DLCs) released after October 1, 2023, specifically excluding DLCs originally bundled with ARK: Survival Ascended. This favorable adjustment to a material agreement is expected to positively impact the company's operational expenses and cash flow.
Key Highlights
- Snail, Inc. reduced its monthly licensing fees under the ARK1 License Agreement from $2 million to $1.5 million, effective April 1, 2026.
- This amendment generates a monthly cost saving of $500,000 for Snail, Inc., totaling $6 million annually.
- The agreement grants Snail, Inc. an exclusive worldwide license to publish and sell ARK: Survival Evolved (ASE Game) and ARK: Survival Ascended (ASA Game).
- The one-time payment for downloadable content (DLC) was clarified to be $5 million for *certain* DLCs released after October 1, 2023, excluding those originally part of ASA Game.
- SDE Inc., the counterparty, is a related party controlled by Ying Zhou, a director of Snail, Inc. and spouse of CEO Hai Shi.
- The obligation for monthly licensing fees will cease upon the public release of the sequel, ARK 2.