Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 27

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 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

The legal name of S&MI Ltd. has been changed to Sports.com Media Group Ltd.

On
September 1, 2024, the Company finalized an agreement for the acquisition of S&MI, Ltd. (the “Share Purchase and Sale Agreement”),
wherein the Purchase Price was the total equivalent of One Million Dollars USD ($1,000,000.00)
in restricted stock units of common shares in the Company (the “Payment-In-Kind”) fixed at Thirty Dollars USD ($30.00)
per share (the “Fixed Price”).

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 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 the valuation analysis performed by a third-party valuation firm.

The
total purchase price of $1,000,000 consists of 33,333 shares of common stock at $30.00 per share. The total consideration transferred
after net assets and assumption of long-term debt was approximately $440,000, reflecting the purchase price, net of cash on hand at S&MI
Ltd and the principal amount of certain loans assumed by the Company. The purchase price is for a 100% ownership interest. 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