Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 31

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 Relationships in the amount of $150,000. There were no other impairments identified or recorded for the year ended December 31,
2024.

Estimated
amortization expense for years of useful life remaining is as follows:

Schedule of Estimated Amortization Expense 

    Years ending December 31, 
    Amount 
  
    2025 
    $3,204,573 
  
    2026 
     2,197,764 
  
    2027 
     999,241 
  
    2028 
     663,025 
  
    2029 
     643,941 
  
    Thereafter 
     3,409,213 
  
    Total 
    $11,117,755 

The
Company had software development costs of $476,850 related to projects not placed in service as of both June 30, 2025 and December 31,
2024, which is included in intangible assets in the Company’s consolidated balance sheets. Amortization will be calculated using
the straight-line method over the appropriate estimated useful life when the assets are put into service.

     F-17 

Note
9. Notes Payable and Convertible Debt

Secured
Convertible Note

In
connection with the Lottery.com domain purchase, the Company issued a secured convertible promissory note (“Secured Convertible
Note”) with a fair value of $935,000 that matured in March 2021. The Company used the fair value of the Secured Convertible Note
to value the debt instrument issued. In March 2021, the Secured Convertible Note was fully converted into 69,910 shares of the Company’s
common stock.

Series
A Notes

From
August to October 2017, the Company entered into seven Convertible Promissory Note Agreements with unaffiliated investors for an aggregate
amount of $821,500. The notes bear interest at 10% per year, are unsecured, and were due and payable on June 30, 2019. The parties verbally
agreed to extend the maturity of the notes to December 31, 2021. As of both June 30, 2025 and December 31, 2024, the balance due
on these notes was $771,500. The Company could not prepay the loan without consent from the noteholders. As of December 31, 2021, there
were no Qualified