Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 28

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 related to Global
Gaming. For the year ended December 31, 2023, the Company recorded impairment charges of $488 thousand to trade names and trademarks
and $312 thousand to technology acquired from Global Gaming. The total impairment charges to intangible assets were $800 thousand.

Additionally,
in connection with completion of the tax provision for 2023, a transaction which had been recorded for the year ended December 31, 2021
was reevaluated and a decision was made that it should not have been recorded and should be reversed. Specifically, at the end of 2021,
a decision was made to increase goodwill related to the acquisition of Global Gaming Enterprises, Inc. due to an incorrect conclusion
that “an adjustment should be made to goodwill for the recording of related deferred tax liabilities as the Company released $1.6
million of valuation allowance since the additional deferred tax liabilities represent a future source of taxable income”. This
approach improperly accelerated the effects of future amortization of intangible assets related to Global Gaming, resulting in inappropriately
releasing part of a valuation allowance for deferred taxes which is not in compliance with GAAP. At that time, the Company recorded an
increase to goodwill for Global Gaming and an income tax benefit each in the amount of $1,653,067. We reversed this transaction
by reducing goodwill for Global Gaming by $1,653,067 and increased accumulated deficit to remove the income tax benefit which was
incorrectly recorded for year ended December 31, 2021.

Similarly, the Company performed an impairment analysis for the three months ended September 30th,
2024 and as a result of that analysis it was determined that impairment charges were necessary. Impairments of goodwill for $1.6 million
against Tinbu’s goodwill and $1.9 million against Global Gaming’s goodwill were recorded and an impairment of $817,000 against
intangibles of Global Gaming was recorded. This consisted of impairments against Trade Names & Technology in the amount of $547,000,
Technology in the amount of $119,000, and Customer Relationships in the amount of $150,000. There were no other impairments identified
or recorded for the year ended December 31, 2024.

     F-16 

Note
8. Intangible assets, net

Gross
carrying values and accumulated amortization of intangible assets:

Schedule of Finite Lived Intangible Assets Amortization Expenses 

    June 30,