Company: LDWY
Filing Date: 2025-08-28
Form Type: 10-KT
Source: 0001558370-25-011807
Chunk: 62

Company: LENDWAY, INC.
Filing Date: 2025-08-28
Form: 10-KT
Chunk 62
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 liabilities - current                    | ​ | ​ |     13,000 |
| Operating lease liabilities - current                  | ​ | ​ |    945,000 |
| Finance lease liabilities - long-term                  | ​ | ​ |      9,000 |
| Operating lease liabilities - long-term                | ​ | ​ | 33,344,000 |
| Deferred tax liabilities                               | ​ | ​ | 10,722,000 |
| Total liabilities assumed                              | ​ | ​ | 49,606,000 |
| Net identifiable assets acquired                       | ​ | ​ | 42,472,000 |
| Goodwill                                               | ​ | ​ | 10,888,000 |
| Total consideration transferred                        | ​ | $ | 53,360,000 |

The goodwill recognized is primarily attributable to the growth potential of the Company and is not deductible for tax purposes. The fair value of customer relationships was estimated using a discounted present value income approach. Under the income approach, an intangible asset’s fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. Indications of value are developed by discounting future net cash flows to their present value at market-based rates of return. The fair value of the trade names was estimated using an income approach, specifically known as the relief from royalty method. The relief from royalty method is based on the hypothetical royalty stream that would be received if the Company were to license the trade name and was based on expected revenues. The useful life of the customer relationships was determined considering the period of expected cash flows used to measure the fair value of the intangible assets adjusted as appropriate for the entity-specific factors including legal, regulatory, contractual, competitive, economic or other factors that may limit the useful life of the customer relationships. The issued equity of the subsidiary, now reflected as noncontrolling interest was valued considering the total value of the acquired company and comparing that to the rollover value of the shares being converted.

Revenue, net, and net income (loss) before taxes for Bloomia since the date of acquisition included in the consolidated statements of operations and comprehensive income (loss) were $ and $ of net income for the six months ended June 30, 2025 and $ and $ of loss for the year ended December 31, 2024.

F-16

Unaudited pro forma information has been prepared as if the acquisition had taken place on January 1, 2023. The unaudited pro forma information is not necessarily indicative