Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 145

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 145
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045,441  
  Income                                                                                26,315                    60,000  

  F-27  

Deferred
income taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting
purposes and the amount used for income tax purposes. The following table discloses those significant components of our deferred tax
assets and liabilities, including any valuation allowance:

Schedule of Deferred Tax Assets
and Liabilities

                                                      2024             2023         
 ────────────────────────────────────────────────────────────────────────────────────
  Long-term                                                                         
  Federal                                             $36,378,116      $36,378,116  
  Intangible                                          1,492,426        1,492,426    
  Accrued                                             863,049          863,049      
  Foreign                                             773,134          773,134      
  Stock                                               -                -            
  State                                               -                -            
  Other                                               19,540           19,540       
  Total                                               39,526,265       39,526,265   
                                                      -                -            
  Deferred                                            -                -            
  Fixed                                               316              316          
  Intangible                                          -                -            
  Total                                               316              316          
  Valuation                                           (39,525,950      (39,525,950  
  Net                                                 $-               $-           

For
the year ended December 31, 2024, the valuation allowance increased by $10,265,807. The Company believes a full valuation allowance against
the net deferred tax asset is appropriate at this time. The Company will continue to evaluate the realizability of its deferred tax assets
in future years.

At
December 31, 2024, our carryforwards available to offset future taxable income consisted of federal net operating loss (“ NOL”)
carryforwards of approximately $173,229,125. Of this total $22,050,149 expires between 2035 and 2037 and $151,178,976 of which has no
expiration date.

We
account for uncertain tax positions in accordance with ASC 740-10-25, which prescribes a comprehensive model for the financial statement
recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns.
We have not recorded any unrecognized tax benefits as of December 31, 2024.

Our
practice is to recognize interest and penalties related to income