Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 115

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 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:

Schedule of Identified Tangible and Intangible Asset Acquired 

    Cash 
    $517,460 
  
    Accounts receivable, net 
     34,134 
  
    Accounts receivable - Other 

    VAT (net) 

    Prepaids 
     5,024 
  
    Property and equipment, net 
     2,440 
  
    Other assets, net 
     65,350 
  
    Intangible assets 
     8,590,000 
  
    Goodwill 
     4,940,643 
  
    Total assets 
    $14,155,051 

    Accounts payable and other liabilities 
    $(387,484)
  
    Director’s
    Loan * 

    Customer deposits 
     (134,707)
  
    Related party loan 
     (417,017)
  
    Total liabilities 
    $(939,208)

    Total net assets of Acquirees 
    $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.

Schedule of Intangible Assets Acquired 

    Category 
    Fair Value 

    Customer relationships 
    $410,000 
  
    Gaming licensees 
     4,020,