Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 128

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 128
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 an increase of $4.5 million in professional fees offset by decreases
in: personnel costs by $153 thousand, general and administrative by $174 thousand, and depreciation and amortization by $395 thousand.
Reasons for these decreases are described below.

Personnel Costs. Personnel
costs decreased by $153 thousand from $3.6 million for the nine months ended September 30, 2023, to $3.5 million for the nine months
ended September 30, 2024. The composition of the team is different for the nine months ended September 30, 2024 than it was for the nine
months ended September 30, 2023. Some of the legacy employees who were working to regain compliance with Nasdaq and SEC reporting requirements
during the spring of 2023 departed so there is no corresponding expense for the nine months ended September 30, 2024.

Professional Fees.
Professional fees increased by $4.5 million, or 178%, from $2.5 million for the nine months ended September 30, 2023 to $6.9 million
for the nine months ended September 30, 2024. The increase was due to expenses incurred for outside attorneys, other consultants, and
directors in the nine months ended September 30, 2024.

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General and Administrative.
General and administrative expenses decreased $174 thousand, or 11%, from $1.56 million for the nine months ended September 30, 2023
to $1.4 million for the nine months ended September 30, 2024. The decrease is because expenses incurred during the first half of 2023
in connection with the Company’s efforts to regain compliance with Nasdaq and SEC reporting requirements did not re-occur in 2024.

Depreciation and Amortization.
Depreciation and amortization decreased $395 thousand, or 9%, from $4.22 million for the nine months ended September 30, 2023 to $3.82
million for the nine months ended September 30, 2024. The decrease was primarily driven by write-offs to intangible assets related to
Global Gaming at the end of 2023 as well as another intangible asset becoming fully amortized at the end of 2023 - - both of which resulted
in lower amortization expense for the nine months ended September 30, 2024.

Other (Income) Expense, Net.

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