Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 29

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 29
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 can be prepaid any time prior to its maturity date. As of September 30, 2023, the entire $2,000,000 in principle was outstanding.

This note was received in consideration for
a portion of the development work that the Company performed for the borrower who had intended to use the Company’s technology to
launch its own online game in a jurisdiction outside the U.S., where the Company is unlikely to operate.

Note 7. Write-Off of Goodwill and Intangibles

As required by ASC 350 Intangibles –
Goodwill and Other Impairment and ASC 360 – Impairment Testing: Long-Lived Assets, in connection with preparing the consolidated
financial statements for the period ended December 31, 2023, management conducted a review as to whether there were conditions or circumstances
that may indicate the impairment of its long-lived assets, goodwill and other indefinite-lived intangible assets.

The Company reviewed the goodwill and intangibles
acquired in the acquisitions of TinBu, LLC and Global Gaming Enterprises, Inc., the domain names and software purchased from third parties,
and software developed in-house. Each of TinBu, Global Gaming, and Lottery.com is considered a reporting unit for application of the annual
review for potential impairment.

The company performed a valuation of each
of the reporting units described above, using discounted cash flow methodologies and estimates of fair market value. Given the results
of the quantitative assessment, the company determined that the goodwill for the TinBu and Global Gaming reporting units was impaired.
For the year ended December 31, 2023, the company recognized goodwill impairment charges of $5.65 million for the TinBu reporting unit
and $1.06 million for the Global Gaming reporting unit. The total impairment charges related to goodwill were $6.71 million. In addition,
it was determined that there was an impairment of certain intangible assets related to Global Gaming. For the year ended December 31,
2023, the Company recorded impairment charges of $488 thousand to trade names and trademarks and $312 thousand to technology acquired
from Global Gaming. The total impairment charges to intangible assets were $800 thousand.

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