Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 205

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part II, Item 8
Chunk 205
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 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” 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. The criteria were not met by December 31, 2022 and those earnout shares were
not granted. All of the potential earnout shares were forfeited as of 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 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