Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 71

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 71
---
 Revenue. Cost of
revenue includes product costs, commission expense to affiliates and commercial partners, and merchant processing fees. Cost of revenue
for the three months ended March 31, 2025 was $162,000, an increase of $79,000, or 94%, compared to cost of revenue of $84,000 for the
three months ended March 31, 2024. The S&MI subsidiary, which was not present in the three months ended March 31, 2024 had Cost of
Revenue of $110,000 and the Global Gaming subsidiary had an increase of approximately $30,000 for the three months ended March 31, 2025,
while the others were essentially the same for both years.

Gross Profit. Gross profit for the three months ended March 31, 2025 was
$61,000 compared to $175,000 for the three months ended March 31, 2024, a decrease of $114,000, or (65%). The S&MI subsidiary had
a negative gross margin of $68,000 and the TinBu and Global Gaming subsidiaries had decreases in gross margin of $25,000 and $23,000,
respectively, for the three months ended March 31, 2025 as compared with the prior year.

Operating Costs and Expenses.

|                               |     | For the three months Ended |            |   |     |      |            |   |     |          |            |   |     |          |     |   |
|                               |     |                  March 31, |            |   |     |      |            |   |     |          |            |   |     |          |     |   |
|                               |     |                       2025 |            |   |     | 2024 |            |   |     | $ Change |            |   |     | % Change |     |   |
| Operating expenses:           |     |                            |            |   |     |      |            |   |     |          |            |   |     |          |     |   |
| Personnel costs               |     |                            |    686,637 |   |     |      |    984,679 |   |     |          | (298,042   | ) |     |          | -30 | % |
| Professional fees             |     |                            |  1,089,207 |   |     |      |  2,018,955