Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 216

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 216
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 $ 312thousand to technology acquired from Global Gaming. The total impairment charges to intangible assets were $ 800thousand.

Additionally,in connection with completion of the tax provision for 2023, a transaction which had been recorded for the year ended December 31, 2021 was reevaluated and a decision was made that it should not have been recorded and should be reversed. Specifically, at the end of 2021, a decision was made to increase goodwill related to the acquisition of Global Gaming Enterprises, Inc. due to an incorrect conclusion that “an adjustment should be made to goodwill for the recording of related deferred tax liabilities as the Company released $ 1.6million 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 have reversed this transaction by reducing goodwill for Global Gaming by $ 1,653,067and have increased accumulated deficit to remove the income tax benefit which was incorrectly recorded for year ended December 31, 2021.

Note 8. Intangible assets, net

Gross carrying values and accumulated amortization of intangible assets:

Schedule of Finite Lived Intangible Assets Amortization Expenses

|                               |     | December     
 31, 2023     |     |                 |            |     |              |             |   |     |     |            |     | December        
 31, 2022        |            |     |              |             |   |     |     |            |
|:------------------------------|:----|:-------------|:----|:----------------|-----------:|:----|:-------------|:------------|:--|:----|:----|-----------:|:----|:----------------|-----------:|:----|:-------------|:------------|:--|:----|:----|-----------:|
|                               |     | Useful       
 Life         |     | Gross           
 Carrying Amount |            |     | Accumulated  
 Amortization |             |   |     | Net |            |     | Gross           
 Carrying Amount |            |     | Accumulated  
 Amortization |             |   |     | Net |            |