Company: LTRYW
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001641172-25-005663
Chunk: 5

Company: Lottery.com Inc.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 5
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 2022 Operational Cessation, certain of the Company’s U.S.
employees were retained at the discretion of the Company’s then Chief Operating Officer and Chief Legal Officer of the Company
in order to provide the minimal business functions essential to the Company’s ongoing legal and compliance requirements as well
as to secure necessary funding to resume operations. Less than twenty percent of these non-furloughed employees remained active in the
efforts to restore Company’s U.S. operations and as of December 31, 2024, approximately $3.94 million in outstanding payroll and
$64 thousand in outstanding unpaid director compensation obligations remain unpaid.

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Since the 2022 Operational Cessation,
the Company has had minimal day-to-day operations in the United States and has primarily focused on restarting certain of its core businesses
(as described in more detail under “Plans for Recommencement of Company Operations” below), and on completing and
filing its quarterly and annual reports with the SEC.

S&MI Ltd. (“SportLocker.com”)

As reported on form 8-K filed with the SEC on August 20, 2024, on August 14, 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 thetotal 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 first payment of $150,000 in restricted common stock (50,000 shares) of the Company is due and payable on September 1, 2024 (the “Completion Date” and the “First Issuance Date”.). The remaining payments in restricted common stock to the shareholders of S&MI Ltd. by the Company will be made as follows: (i) a second payment of $212,500 (70,833 shares) due on or before the 31 stday following ninety days after the Completion Date (the Second Issuance Date”); (ii) a third payment, of $212,500 (70,833 shares) due on or before the 31 stday following ninety days after the Second Issuance Date (the Third Issuance Date”); (iii) a fourth payment of $