Company: LDWY
Filing Date: 2025-08-28
Form Type: 10-KT
Source: 0001558370-25-011807
Chunk: 44

Company: LENDWAY, INC.
Filing Date: 2025-08-28
Form: 10-KT
Chunk 44
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 discussed in Note 9 to the consolidated financial statements, the Company’s goodwill balance was $11,128,000 million as of June 30, 2025. The Company performs goodwill impairment testing on an annual basis and whenever events or changes in circumstances indicate that the carrying value of a reporting unit, including goodwill, might exceed the fair value of the reporting unit. In the current year, the Company performed a qualitative, or Step 0, assessment to determine whether there was a greater than 50 percent likelihood that the fair value of the reporting unit was less than its carrying value. After completing Step 0, the Company determined that goodwill was not more likely than not impaired and, therefore, no Step 1, or quantitative assessment, was necessary. We identified the evaluation of goodwill triggering events as a critical audit matter. The evaluation of potential triggering events, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, market capitalization and events specific to the entity and its reporting unit, required a higher degree of auditor judgment. These potential triggering events could have a significant effect on the Company’s Step 0 assessment and the determination of whether further quantitative analysis of goodwill impairment was required. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and implementation of certain internal controls related to the evaluation of goodwill impairment. This included a control related to the Company’s assessment of potential goodwill triggering events. We evaluated the Company’s Step 0 assessment for its reporting unit by:

| ● | considering macroeconomic conditions including overall market and economic conditions, access to capital, foreign currency, and inflation in the United States and Netherlands for negative indicators. |

| ● | evaluating information from industry publications in the tulip market, which were compared to industry and market considerations used by the Company. |

| ● | analyzing information including changes in the costs of raw materials and labor and the Company’s customer base, the financial performance of the reporting unit, the Company’s market capitalization, and other entity and reporting-unit specific events. |

We have served as the Company’s auditor since 2023. /s/ Boulay PLLP Minneapolis, Minnesota August 28, 2025 PCAOB ID: 542

F-3

Lendway, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS Values are rounded to the nearest thousand dollar and thousand share

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