Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 32

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 of related deferred tax liabilities as the Company released $1.6
million of valuation allowance since the additional deferred tax liabilities represent a future source of taxable income”. This
approach improperly accelerated the effects of future amortization of intangible assets related to Global Gaming, resulting in inappropriately
releasing part of 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 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 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.

Note
8. Intangible assets, net

Gross
carrying values and accumulated amortization of intangible assets:

Schedule of Finite Lived Intangible Assets Amortization Expenses 

    September 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  
    $(1,328,283) 
    $23,917  
    $1,352,200  
    $(1,318,033) 
    $34,167 
  
    Trade name 
    6 years 
     2,577,000