Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 122

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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 the Company. In connection with the annual
review of goodwill and intangibles for the year ended December 31, 2023, the Company determined that it was necessary to write down goodwill
by $5,650,000 for TinBu and $1,060,200 for Global Gaming. The total impairment charges related to goodwill were $6,710,200 for the year
ended December 31, 2023. It was also determined that there was impairment of certain intangible assets related to Global Gaming. As a
result, for the year ended December 31, 2023 the Company recorded impairment charges of $488,300 to trade names and trademarks and $311,500
to technology acquired from Global Gaming. The total impairment charges to intangible assets for the year ended December 31, 2023 were
$798,800.

Similarly, the Company performed an impairment analysis for the three months ended September 30, 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 $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.

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