Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 23

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 23
---
 related notes reflect the historical results of AutoLotto prior to the merger and do not include the historical results of TDAC prior
to the consummation of Business Combination.

Upon the closing of the transaction, AutoLotto received
total gross proceeds of approximately $42,794,000, from TDAC’s trust and operating accounts. Total transaction costs were approximately
$9,460,000, which principally consisted of advisory, legal and other professional fees and were recorded in additional paid in capital.
Cumulative debt repayments of approximately $11,068,000, inclusive of accrued but unpaid interest, were paid in conjunction with the close,
which included approximately $5,475,000 repayment of notes payable to related parties, and approximately $5,593,000 payment of accrued
underwriter fees.

Pursuant to the terms of the Business Combination
Agreement, the holders of issued and outstanding shares of AutoLotto immediately prior to the Closing (the “Sellers”) were
entitled to receive up to 300,000 additional shares of Common Stock (the “Seller Earnout Shares”) and Vadim Komissarov, Ilya
Ponomarev and Marat Rosenberg (collectively the “TDAC Founders”) were also entitled to receive up to 200,000 additional shares
of Common Stock (the “TDAC Founder Earnout Shares” and, together with the Seller Earnout Shares, the “Earnout Shares”).
One of the earnout criteria had not been met by the December 31, 2021 deadline thus no earnout shares were granted specific to that criteria.
150,000 of the Seller Earnout Shares and 100,000 TDAC Founder Earnout Shares were still eligible Earnout Shares until December 31, 2022.

Global Gaming Acquisition

On June 30, 2021, the Company completed its acquisition
of 100 percent of equity of Global Gaming Enterprises, Inc., a Delaware corporation (“Global Gaming”), which holds 80% of
the equity of each of Medios Electronicos y de Comunicacion, S.A.P.I de C.V. (“Aganar”) and JuegaLotto, S.A. de C.V. (“JuegaLotto”).
JuegaLotto is federally licensed by the Mexico regulatory authorities with jurisdiction over the ability to sell international lottery
games in Mexico through an authorized federal gaming portal and is licensed for games of chance in other countries throughout Latin America.
Aganar has been operating in