Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 127

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 127
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 |     | (8,880,520 | ) |     |     |       82 | % |
| Income tax expense (benefit)                 |     |                           |      21,114 |   |     |   |           - |   |     |     |     21,114 |   |     |     |      N/A |   |
| Net loss                                     |     |                           | (19,772,292 | ) |     |   | (10,870,658 | ) |     |     | (8,901,634 | ) |     |     |       82 | % |

| 59 |

Revenue.

Revenue. Revenue for the
nine months ended September 30, 2024 was $717 thousand, a decrease of $844 thousand, or 54%, compared to revenue of $1.6 million for
the nine months ended September 30, 2023. During the nine months ended September 30, 2024 revenue from Global Gaming decreased by approximately
$492 thousand, revenue from TinBu decreased by approximately $200 thousand and there was no revenue from the core Lottery business, whereas
there was revenue from the core Lottery business in the second quarter of 2023.

Cost of Revenue. Cost of
revenue includes product costs, commission expense to affiliates and commercial partners, and merchant processing fees. Cost of revenue
for the nine months ended September 30, 2024 was $213 thousand, compared with 203,000 for the nine months ended September 30, 2023, an
increase of $10 thousand, or 5% . The increase is primarily related to cost of revenue for the new subsidiary, S&MI Ltd. acquired
on September 1, 2024.

Gross Profit. Gross profit
for the nine months ended September 30, 2024 was $504 thousand compared to $1.36 million for the nine months ended September 30, 2023,
a decrease of $854 thousand, or 63%. Cost of Revenue was essentially the same for the nine months ended September 30, 2024 and 2023,
accordingly, the decrease in gross profit is correlated to the change in revenue as described above.

Operating Costs and Expenses.

|                               |     | For the nine months Ended |             |   |     |      |             |   |     |          |            |   |     |          |     |   |
|                               |     |                 September