Company: LTRYW
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001641172-25-005663
Chunk: 130

Company: Lottery.com Inc.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 130
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 968,903 |     |     |   136,429 |     |     |    832,474 |   |     |     |    610 | % |
| Reserve for loss of prepaid advertising 
 credits                                 |     |                             |  4,745,000 |     |     |         - |     |     |  4,745,000 |   |     |     |      - |   |
| Loss                                    
 on impairment of intangibles & goodwill |     |                             |  4,298,002 |     |     | 7,510,000 |     |     | (3,211,998 | ) |     |     |    -43 | % |
| Total                                   
 other expenses, net                     |     |                             | 10,520,468 |     |     | 8,055,196 |     |     | (2,465,272 | ) |     |     |     31 | % |

Interest Expense.Interest expense increased by $100,000, or (24%), for the year ended December 31, 2024, from $409,000 thousand to $509,000 as compared with the year ended December 31, 2023. This increase is due to interest accruals on convertible debt placed by Univest in December of 2023 which was present for a longer period in 2024 vs for only part of one month in 2023 and for interest accrued on additional convertible debt placed by Univest between January and April of 2024.

Other Expense.Other expense increased by $832,000, or 610%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023 from $136,000 to $969,000. This increase was driven primarily by payment of a commitment fee for a Stock Purchase Agreement entered into in November of 2024.

Reserve for loss of prepaid advertising credits. Reserve for loss of prepaid advertising credits increased by $4.75 million for the year
ended December 31, 2024 as compared to the year ended December 31, 2023. This increase was driven primarily by concern about management’s
assessment regarding the Company’s ability to fully utilize the advertising credits.

Loss on impairment of intangibles & goodwill decreased to $4.3 million or 43% from $7.5 million for the year ended December 31, 2024. For the quarter ended September