Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 13

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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, 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 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 sports