Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 120

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 a valuation allowance for deferred taxes which is not in compliance with GAAP. At that time, the Company recorded an
increase to goodwill for Global Gaming and an income tax benefit each in the amount of $1,653,067. We reversed this transaction
by reducing goodwill for Global Gaming by $1,653,067 and increased accumulated deficit to remove the income tax benefit which was
incorrectly recorded for year ended December 31, 2021.

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

     F-16 

Note
8. Intangible assets, net

Gross
carrying values and accumulated amortization of intangible assets:

Schedule of Finite Lived Intangible Assets Amortization Expenses 

    June 30, 2025  
    December 31, 2024 

    Gross  

    Gross  

    Useful  
    Carrying  
    Accumulated  
       
    Carrying  
    Accumulated  

    Life  
    Amount  
    Amortization  
    Net  
    Amount  
    Amortization  
    Net 
  
    Amortizing intangible assets 

    Customer relationships 
     6
years   
    $1,352,200  
    $(1,324,867) 
    $27,333  
    $1,352,200  
    $(1,318,033) 
    $34,167 
  
    Trade name 
     6 years  
     2,577,000  
     (2,388,167) 
     188,833  
     2,577,000  
     (2,314,769) 
     262,231 
  
    Technology 
     6 years