Company: LTRYW
Filing Date: 2025-05-07
Form Type: S-1/A
Source: 0001641172-25-009053
Chunk: 224

Company: Lottery.com Inc.
Filing Date: 2025-05-07
Form: S-1/A
Chunk 224
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 |     |      |           - |   |     |      |           - |   |
| Fixed                                          
 Assets                                         |     |      |         316 |   |     |      |         316 |   |
| Intangible                                     
 Assets                                         |     |      |           - |   |     |      |           - |   |
| Total                                          
 deferred tax liabilities                       |     |      |         316 |   |     |      |         316 |   |
| Valuation                                      
 Allowance                                      |     |      | (39,525,950 | ) |     |      | (39,525,950 | ) |
| Net                                            
 deferred tax assets and liabilities            |     | $    |           - |   |     | $    |           - |   |

For the year ended December 31, 2024, the valuation allowance increased by $ 10,265,807. The Company believes a full valuation allowance against the net deferred tax asset is appropriate at this time. The Company will continue to evaluate the realizability of its deferred tax assets in future years.

At December 31, 2024, our carryforwards available to offset future taxable income consisted of federal net operating loss (“NOL”) carryforwards of approximately $ 173,229,125. Of this total $ 22,050,149expires between 2035 and 2037 and $ 151,178,976of which has no expiration date.

We account for uncertain tax positions in accordance with ASC 740-10-25, which prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. We have not recorded any unrecognized tax benefits as of December 31, 2024.

Our practice is to recognize interest and penalties related to income tax matters in income tax expense in our consolidated statements of operations.

The Company files U.S. federal and state returns. The Company’s foreign subsidiaries also file local tax returns in their jurisdiction. From a U.S. federal, state, Mexican and United Kingdom perspective the years that remain open to examination are consistent with each jurisdiction’s statute of limitations. The Company has not filed its 2023 and 2024 U.S. federal and state corporate income tax returns. The Company’s foreign subsidiaries in Mexico and the United Kingdom are current with the filing of their tax returns through 2023. The Company expects to file U.S. federal and state tax