Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 15

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 410,000  
  Gaming                               4,020,000  
  Trade                                2,540,000  
  Technology                           1,620,000  
  Total                                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 common shares
of the Company to make up the difference between the Fixed Purchase Price and the Anniversary Issuance 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.

  F-15  

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 333,333 shares of common stock at $3.00 per share. The total consideration transferred
after net assets and assumption of long-term debt was