Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 157

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 157
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 on the classification of assets or the amounts and classification of liabilities that
might result from the outcome of this uncertainty.

8

Components
of Our Results of Operations

Our
Revenue

Revenue
from B2C Platform [when operational]. Our revenue is the retail value of the acquired lottery game and the service fee charged to the user, which
we impose on each lottery game purchased from our B2C Platform. The amount of the service fee is based upon several factors,
including the retail value of the lottery game purchased by a user, the number of lottery games purchased by a user, and whether
such user is located within the U.S. or internationally. Currently, in the U.S, the minimum service fee is $0.50 for the purchase of
a $1 lottery game and $1 for the purchase of a $2 lottery game; the service fee for additional lottery games purchased in the same
transaction is 6% of the face value of all lottery games purchased. For example, the service fee for the purchase of five $2 tickets
is $1.60, comprised of the $1 base service fee, plus 6% of the aggregate value of the face value of all lottery games purchased. The
Company has not operated its B2C platform in the US since July 2022. The Company does operate B2C business in Mexico through our wholly-owned subsidiary, Global Gaming.

Internationally,
B2C sales in jurisdictions where we do not have direct or indirect authority generate an immaterial amount of revenue, and we are assessing
our operations in these jurisdictions. As discussed above, our B2C Platform is not currently operational in the US.

Data
Services. Commercial acquirers of our Data Service pay a subscription for access to the Data Service and, for acquisition of certain
large data sets, an additional per record fee. The Company additionally enters into multi-year contracts pursuant to which it sells proprietary,
anonymized transaction data pursuant to multi-year agreements and in accordance with our Terms of Service in consideration of a fee.
Our Data Services operations were not impacted by the Operational Cessation.

Our
Operating Costs and Expenses

Personnel
Costs. Personnel costs include salaries, payroll taxes, health insurance, worker’s compensation and other benefits for management
and office personnel.

Professional
Fees. Professional fees include fees paid for legal and financial services, accountants and other professionals.

General
and Administrative. General and administrative expenses include marketing and advertising expenses, office and facilities lease payments,