Company: LTRYW
Filing Date: 2025-04-09
Form Type: 10-K/A
Source: 0001641172-25-003412
Chunk: 124

Company: Lottery.com Inc.
Filing Date: 2025-04-09
Form: 10-K/A
Chunk 124
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5.7 million, an increase of $1.36 million, or 31%, compared to cost of revenue of $4.3 million for the year ended December 31, 2022. The increase in COGS is the result of a product mix that was more heavily weighted towards products and less on higher-margin services for the year ended December 31, 2023. In 2022 there was revenue from services provided to partners that had lower costs and higher margins.

Gross Profit. Gross profit for the year ended December 31, 2023 was $1.35 million, compared to $2.5 million for the year ended December 31, 2022, a decrease of $1.12 million, or (45%). This decrease was the result of higher cost of sales on higher ticket revenue in 2023 than in 2022 and because higher margin revenue for services provided to partners in 2022 was not recurring.

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Operating Costs and Expenses

|                               |     | For the Year Ended December 31, |       2023 |     |     |       2022 |     |     |    $ Change |   |     |     | % Change |   |
|:------------------------------|:----|:--------------------------------|-----------:|:----|:----|-----------:|:----|:----|------------:|:--|:----|:----|---------:|:--|
| Operating expenses:           |     |                                 |            |     |     |            |     |     |             |   |     |     |          |   |
| Personnel costs               |     |                                 |  4,570,206 |     |     | 37,114,485 |     |     | (32,544,279 | ) |     |     |      -88 | % |
| Professional fees             |     |                                 |  6,766,709 |     |     |  6,613,546 |     |     |     153,163 |   |     |     |        2 | % |
| General and administrative    |     |                                 |  9,484,881 |     |     |  9,012,673 |     |     |     472,208 |   |     |     |        5 | % |
| Depreciation and amortization |     |                                 |  5,691,322 |     |     |  5