Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 128

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 128
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       13,215,842  

Goodwill
recognized in connection with the acquisition - is primarily attributed to an anticipated growing lottery market in Mexico that is expected
to be achieved from the integration of these Mexican entities. None of the goodwill is expected to be deductible for income tax purposes.

Following
are details of the purchase price allocated to the intangible assets acquired.

Schedule
of Intangible Assets Acquired

  Category                        Fair Value                 
 ─────────────────────────────────────────────────────────────
  Customer relationships          $                 410,000  
  Gaming licensees                                4,020,000  
  Trade names and trademarks                      2,540,000  
  Technology                                      1,620,000  
  Total Intangibles               $               8,590,000  

S& MI
Ltd Acquisition

On
September 1, 2024, the Company finalized an agreement for the acquisition of S& MI, Ltd. with its shareholders (the “ Share Purchase
and Sale Agreement”), wherein the Purchase Price is the total equivalent One Million Dollars USD ($1,000,000.00) in restricted
stock units of common shares in the Company. (the “ Payment-In-Kind”) fixed at Three Dollars USD ($3.00) per share (the “ Fixed
Price”). Purchase Price is to be paid out over five payments on the following schedule : The st st st st

In
the event that the closing price of the restricted stock units of common shares of the Company to be issued to the shareholders of S& MI,
Ltd. is lower than the Fixed Purchase Price on the six (6) month anniversary of any issuance date of said shares (collectively the “ Anniversary
Issuance Price”), then the Fixed Purchase Price shall be adjusted downward to the volume-weighted average price (“ VWAP”)
of the common stock for the five (5) consecutive trading days immediately preceding the six (6) month anniversary date of said issuance
date. Accordingly, the Company shall be obligated to tender to the shareholders of S& MI, Ltd. additional restricted stock units of
common shares of the Company to make up the difference between the Fixed Purchase Price and the Anniversary Issuance Price.

  F-18  

The opening balance of S& MI Ltd has
been included in our consolidated balance sheet since the date of the acquisition. Since the S& MI Ltd’s financial statements
were denominated in British Pounds, the exchange rate of 1.3141 pounds per dollar was used