Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 127

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 127
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 in the licensed Lottery market in Mexico since 2007
and is licensed to sell Mexican National Lottery draw games, instant win tickets, and other games of chance online with access to a federally
approved online casino and sportsbook 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-17  

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
$13,215,842 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  
  Prepaids                                                 5,024  
  Property and equipment, net                              2,440  
  Other assets, net                                       65,349  
  Other Receivables                                               
  Intangible assets                                    8,590,000  
  Goodwill                                             4,940,643  
  Total assets                                $       14,155,050  
  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               $