Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 305

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 305
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 decrease in gross profit resulted from the decreases in revenue for Global Gaming and Tinbu, the decrease in cost of revenue
for Global Gaming, and the net impact of costs and revenue for S&MI during the period which were not present in the three months
ended June 30, 2025.

Operating
Costs and Expenses.

    For the six months Ended June 30,  

    2025  
    2024  
    $ Change  
    % Change 

    Operating expenses: 

    Personnel costs 
     1,125,603  
     2,774,665  
     (1,649,062) 
     -59%
  
    Professional fees 
     2,429,077  
     3,564,038  
     (1,134,961) 
     -32%
  
    General and administrative 
     1,862,541  
     2,917,052  
     (1,054,511) 
     -36%
  
    Depreciation and amortization 
     2,100,958  
     2,615,728  
     (514,133) 
     -20%
  
    Total operating expenses 
     7,518,179  
     11,871,483  
     4,353,304  
     -37%
  
    Loss from operations 
     (7,427,769) 
    $(11,484,523) 
     4,056,754  
     -35%

Operating expenses for the six
months ended June 30, 2025 were $7.5 million, a decrease of $4.4 million, or 37%, compared to $11.9 million for the six months ended June
30, 2024. The decrease was primarily driven by a decrease of $1.6 million in personnel costs accompanied by an decreases in professional
fees of $1.1million, a decrease in general and administrative expenses of $1.05 million and a decrease in depreciation and amortization
by $515,000. Reasons for these decreases are described below.

Personnel Costs. Personnel
costs decreased by $1.6 million or 59% from $2.8 million for the six months ended June 30, 2024, to $1.1 million for the six months ended