Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 23

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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anar”)
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 the licensed Lottery market in Mexico since 2007
and is licensed to sell Mexican National Lottery draw games, instant win tickets, and other games of chance online with access to a federally
approved online casino and sportsbook gaming license and additionally issues a proprietary scratch lottery game in Mexico under the brand
name Capalli. The opening balance of the acquirees has been included in our consolidated balance sheet since the date of the acquisition.
Since the acquirees’ financial statements were denominated in Mexican pesos, the exchange rate of 22.0848 pesos per dollar was
used to translate the balances.

The
net purchase price was allocated to the assets and liabilities acquired as per the table below. Goodwill represents the future economic
benefits arising from other assets acquired that could not be individually identified and separately recognized. The fair values of the
acquired intangible assets were determined using Level 3 inputs which were not observable in the market.

     F-14 

The
total purchase price of $10,989,691, consisting of cash of $10,530,000 and 687,439 shares of common stock of AutoLotto at $0.67 per share.
The total consideration transferred was approximately $10,055,214, reflecting the purchase price, net of cash on hand at Global Gaming
and the principal amount of certain loans acquired. The purchase price is for an 80% ownership interest and is therefore grossed up to
$13,215,843 to reflect the 20% minority interest in the acquirees. The purchase price was allocated to the identified tangible and intangible
assets acquired based on their estimated fair values at the acquisition date as follows:

Schedule of Identified Tangible and Intangible Asset Acquired 

    Cash 
    $517,460 
  
    Accounts receivable, net 
     34,134 
  
    Accounts receivable - Other 

    VAT (net) 

    Prepaids 
     5,024 
  
    Property and equipment, net 
     2,440 
  
    Other assets, net 
     65,350