Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 98

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 98
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 goodwill for Global Gaming by $1,653,067 and have increased accumulated deficit to remove the income tax benefit which was incorrectly recorded for the year ended December 31, 2021.

As indicated in Note 8 Write-Off of Goodwill and Intangibles, to the Company’s consolidated financial statements, the Company recorded impairments to goodwill and intangible Assets for the quarter ended September 30, 2024 as follows:

As required by ASC 350 Intangibles
– Goodwill and Other Impairment and ASC 360 – Impairment Testing: Long-Lived Assets, in connection with preparing the consolidated
financial statements for the three months ended September 30, 2024, management conducted a review as to whether there are conditions
or circumstances that may indicate the impairment of its long-lived assets, goodwill and other indefinite-lived intangible assets.

The Company reviewed the goodwill
and intangibles acquired in the acquisitions of TinBu, LLC and Global Gaming Enterprises, Inc., the domain names and software purchased
from third parties, and software developed in-house. Each of TinBu, Global Gaming, and Lottery.com is considered a reporting unit for
application of the GAAP accounting requirements related to analysis for potential impairment of goodwill and intangible assets.

The Company performed a valuation
of each of the reporting units described above, using discounted cash flow methodologies and estimates of fair market value. Given the
results of the quantitative assessment, the company determined that the goodwill for the TinBu and Global Gaming reporting units was
impaired. For the three months ended September 30, 2024, the company recognized goodwill impairment charges of $1.57 million for the
TinBu reporting unit and $1.91 million for the Global Gaming reporting unit. The total impairment charges related to goodwill were $3.48
million. In addition, it was determined that there was an impairment of certain intangible assets related to Global Gaming. For the three
months ended September 30, 2024, the Company recorded impairment charges of $548 thousand to trade name, $150 thousand to customer relationships,
and $119 thousand to technology acquired from Global Gaming. The total impairment charges to intangible assets were $817 thousand.

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<div align='center'>MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS</div>

You should read the following discussion and analysis of our financial condition andthefollowing discussion and analysis of our financial condition and results of