Company: LTRYW
Filing Date: 2025-04-09
Form Type: 10-K/A
Source: 0001641172-25-003412
Chunk: 158

Company: Lottery.com Inc.
Filing Date: 2025-04-09
Form: 10-K/A
Chunk 158
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 | $          | 8,590,000 |

Note 4. Property and Equipment, net

Property and equipment, net as of December 31, 2023 and 2022, consisted of the following:

Schedule of Property and Equipment

|                             |     | 2023 | December 31, |   |     | 2022 | December 31, |   |
|:----------------------------|:----|:-----|-------------:|:--|:----|:-----|-------------:|:--|
| Computers and equipment     |     | $    |      124,199 |   |     | $    |      124,199 |   |
| Furniture and fixtures      |     |      |       16,898 |   |     |      |       16,898 |   |
| Software                    |     |      |    2,026,200 |   |     |      |    2,026,200 |   |
| Property and equipment      |     |      |    2,167,297 |   |     |      |    2,167,297 |   |
| Accumulated depreciation    |     |      |   (2,145,988 | ) |     |      |   (2,059,219 | ) |
| Property and equipment, net |     | $    |       21,309 |   |     | $    |      108,078 |   |

Depreciation
expense for the years ended December 31, 2023 and 2022 amounted to $90,744 and $160,466, respectively.

| F-19 |

Note 5. Prepaid Expenses

Prepaid expenses consist primarily of advertising credits from two top tier media organizations that operate in the United States. The advertising credits were obtained in return for warrants, shares of common stock and shares of preferred stock. The agreements do not specify a time period for utilizing these credits and there is no requirement to provide cash or other consideration in connection with utilizing them. The balance can be utilized at any time at the mutual consent of the parties. The Company expects to begin utilizing these credits in the second quarter of 2024 and anticipates fully utilizing all of them by the end of 2024. Accordingly, they are presented as current assets.

Note 6. Notes Receivable

On March 22, 2022, the Company entered into a three-year 3secured promissory note agreement with a principal