Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 130

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 130
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3 amounted to $9,185

  F-19  

Note
5. Prepaid Expenses

Prepaid
expenses consist primarily of advertising credits from two top tier media organizations that operate in the United States. The advertising
credits were obtained in return for warrants, shares of common stock and shares of preferred stock. The agreements do not specify a time
period for utilizing these credits and there is no requirement to provide cash or other consideration in connection with utilizing them.
The balance can be utilized at any time at the mutual consent of the parties. The Company expects to begin
utilizing these credits in the second quarter of 2025 and anticipates fully utilizing all of them by the end of 202

Note
6. Notes Receivable

On
March 22, 2022, the Company entered into a three-year 3

This
note was received in consideration for a portion of the development work that the Company performed for the borrower who had intended
to use the Company’s technology to launch its own online game in a jurisdiction outside the U. S., where the Company is unlikely
to operate.

On October 5, 2021, the Company
provided $250,000
to SP Global Holdings in exchange for a 3 year promissory note with interest at 8%. Principal and accrued interest are due in a balloon payment
at maturity.

Note
7. Write-Off of Goodwill and Intangibles

As
required by ASC 350 Intangibles - Goodwill and Other Impairment and ASC 360 - Impairment Testing: Long-Lived Assets, in connection
with preparing the consolidated financial statements for the period ended December 31, 2023, management conducted a review as to whether
there are conditions or circumstances that might

The
Company reviewed the goodwill and intangibles acquired in the acquisitions of TinBu, LLC and Global Gaming Enterprises, Inc., the domain
names and software purchased from third parties, and software developed in-house. Each of TinBu, Global Gaming, and Lottery. com is considered
a reporting unit for application of the annual review for potential impairment.

The
company performed a valuation of each of the reporting units described above, using discounted cash flow methodologies and estimates
of fair market value. Given the results of the quantitative assessment, the company determined that the goodwill for the TinBu and Global
Gaming reporting units was impaired. For the year ended December 31, 2023, the company recognized goodwill impairment charges of $5