NOTE 1 – GENERAL

A. Techlott, Inc. (“Techlott”, “the Company”, “we” or “us”) was incorporated in the State of South Dakota on November 26, 2012 to engage in the acquisition, purchase, maintenance and creation of mobile software applications. The Company has not generated significant revenues from operations. On November 1, 2021 the Company was redomiciled in the State of Nevada. On May 29, 2026, the Company changed its name from AppYea Inc. to Techlott Inc.

The Company’s common stock is traded on the OTC Markets, OTCQB tier, under the symbol “LOTT”. The name change formed part of the Company’s strategic repositioning and increased focus on the development and commercialization of its lottery technology.

B. Strategic Development

On August 20, 2025 the Company entered into an agreement with Techlott Enterprises Ltd. (“Techlott Enterprises”), a Cypriot company, for the purchase (the “Techlott Purchase Agreement”) of proprietary blockchain-based decentralized lottery and gaming ecosystem leveraging smart contracts, verifiable randomness, and advanced infrastructure to deliver transparent, secure, and scalable lottery and gaming experiences (the “Technology”) and the underlying intellectual property for consideration consisting of shares of the Company’s common stock par value $0.0001 per share (the “Common Stock”). For further details, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

SleepX Ltd. is a company formed under the laws of the State of Israel and a wholly owned subsidiary of the Company (“SleepX”). SleepX is a research and development company that has developed a proprietary product for monitoring and treating sleep apnea and snoring. The technology is protected by several international patents. SleepX has incorporated, together with an unrelated third party, a privately held company under the laws of the State of Israel named Ta-nooma Ltd. (“Ta-nooma”). Ta-nooma has developed sleeping monitoring technology for which patent applications were filed and has no revenue from operations. Since its incorporation and as of the financial statements date, SleepX holds 66.7% of the voting interest of Ta-nooma.

C. Going Concern

The financial statements are presented on a going-concern basis. To date, the Company has not generated any significant revenues, suffered recurring losses from operations, incurred negative cash flows from operating activities, and is dependent upon external sources for financing its operations. As of June 30, 2026 the Company had an accumulated deficit of $28,892,000. In 2025, the Company recognized an intangible asset in the amount of $21,101,317 in connection with the issuance by the Company of shares of common stock to Techlott Enterprises Ltd. as consideration for the asset acquisition, with the equity component valued at $18,739,546. As a result of this transaction, the Company recorded an increase in shareholders’ equity at the end of 2025 in the same amount. As of June 30, 2026, the Company’s total shareholders’ equity was $10,027,000.

The accumulated deficit raises substantial doubt about the Company’s ability to continue as a going concern. The Company intends to continue to finance its operating activities by raising capital. There are no assurances that the Company will be successful in obtaining an adequate level of financing needed for its long-term research and development activities on commercially reasonable terms or at all. If the Company will not have sufficient liquidity resources, the Company may not be able to continue the development of its technology platform or may be required to implement cost reduction measures and may be required to delay part of its development activities. The financial statements do not include any adjustments for the values of assets and liabilities and their classification that may be necessary in the event that the Company is no longer able to continue its operations as a “going concern”.

TECHLOTT INC.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS