Company: LTRYW
Filing Date: 2025-04-09
Form Type: 10-K/A
Source: 0001641172-25-003412
Chunk: 126

Company: Lottery.com Inc.
Filing Date: 2025-04-09
Form: 10-K/A
Chunk 126
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 of the decrease for the year ended December 31, 2023 were business insurance expense $3 million lower, expensed developed software $530 thousand lower, software services $200 thousand lower, royalty expense $160 thousand lower, and facilities rent $110 thousand lower than for the year ended December 31, 2022.

Depreciation and Amortization.Depreciation and amortization increased $90 thousand, or 2%, from $5.6 million for the year ended December 31, 2022 to $5.7 million for the year ended December 31, 2023. The increase is due to a full year of amortization for Project Nexus in 2023 vs only half a year in 2022 as it was placed in service and amortization began mid-year 2022.

Other Expense, Net

|                           |     | For the Year Ended December 31, |    2023 |     |     |      2022 |     |     | $ Change   |   |     |     | % Change |   |
|:--------------------------|:----|:--------------------------------|--------:|:----|:----|----------:|:----|:----|:-----------|:--|:----|:----|---------:|:--|
| Other expenses            |     |                                 |         |     |     |           |     |     |            |   |     |     |          |   |
| Interest expense          |     |                                 | 408,767 |     |     |   764,839 |     |     | (356,072   | ) |     |     |      -47 | % |
| Other expense             |     |                                 | 136,429 |     |     | 3,721,291 |     |     | (3,584,862 | ) |     |     |      -96 | % |
| Total other expenses, net |     |                                 | 545,196 |     |     | 4,486,130 |     |     | (3,940,934 | ) |     |     |      -88 | % |

Interest Expense.Interest expense decreased by $336 thousand, or (47%), for the year ended December 31, 2023, from $765 thousand to $409 thousand as compared to the year ended December 31, 2022. This decrease relates primarily to interest on the Bank Prov line of credit in 2022 which did not occur