Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 49

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 One Hundred Thousand Dollars ($5,100,000)
of the Purchase Price as Payment-In-Kind (as defined below) equivalent to the Purchase Price. The term “Payment-In-Kind”
shall be defined as restricted stock units of common shares in the Company to be applied towards the Purchase Price at a fixed price
of Three Dollars USD ($3.00)
per share (the “Fixed Price”) irrespective of the trading price of the Company’s common stock at the execution of
this Agreement or the Closing Date. At Closing, Buyer shall cause to be issued to Seller (or its designees) the equivalent in
restricted stock units of common shares in the Company to be applied towards the Purchase Price. Seller (or its designees) shall
receive the Payment-In-Kind within three business days following the Closing Date. Any Payment-In-Kind made as part of the
consideration to satisfy any portion of the Purchase Price shall carry full piggyback registrations rights for the benefit of Seller
(or its designees). The Company will also pay GXR (or its designees) Four Million Nine Hundred Thousand Dollars USD ($4,900,000.00)
by transferring 49%
ownership interest in to be newly, formed wholly owned entity of the Company (“NewCo”) to be domiciled at the discretion
of Buyer which shall hold all Assets free and clear of any encumbrances.

As
part of the transaction, Paul Roy, Founder and CEO of GXR, will serve as a Director of Newco” which is being created to house
the Sports.com Super App. With more than two decades of leadership experience spanning video gaming, esports, and global sports
media, Paul Roy will contribute to the integration strategy and long-term growth of Sports.com’s global operations.

 F-26 

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The
following discussion and analysis of our financial condition and results of operations together with the condensed consolidated financial
statements and the related notes appearing elsewhere in this Report contains forward-looking statements that involve risks and uncertainties.
Our actual results and the timing of events may differ materially from those expressed or implied in such forward-looking statements
as a result of various factors, including those set forth in the section entitled “Cautionary Note Regarding Forward-Looking Statements”
included herein and the sections entitled “Risk Factors” included in this Report and in our Annual Report on Form 10-K/A
for the year ended December 31, 2024 (