Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 14

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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book gaming license and additionally issues a proprietary scratch lottery game in Mexico under the brand
name Capalli. The opening balance of the acquirees have 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 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 Level 3 inputs which were not observable in the market.

  F-14  

The
total purchase price of $10,989,691, consisting of cash of $10,530,000 and 687,439 shares of common stock of AutoLotto at $0.67 per share.
The total consideration transferred was approximately $10,055,214, reflecting the purchase price, net of cash on hand at Global Gaming
and the principal amount of certain loans acquired. The purchase price is for an 80% ownership interest and is therefore grossed up to
$13,215,843 to reflect the 20% minority interest in the acquirees. 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:

  Cash                               $          517,460  
  Accounts                                       34,134  
  Prepaids                                        5,024  
  Property                                        2,440  
  Other                                          65,350  
  Intangible                                  8,590,000  
  Goodwill                                    4,940,643  
  Total                              $       14,155,051  
  Accounts                           $         (387,484  
  Customer                                     (134,707  
  Related                                      (417,017  
  Total                              $         (939,208  
  Total                              $       13,215,843  

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.

  Category                  Fair                  
                            Value                 
 ──────────────────────────────────────────────────
  Customer                  $