Company: LTRYW
Filing Date: 2025-04-09
Form Type: 10-K/A
Source: 0001641172-25-003412
Chunk: 175

Company: Lottery.com Inc.
Filing Date: 2025-04-09
Form: 10-K/A
Chunk 175
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 Foreign                            |     |                              |      - |     |      |      - |
| Total deferred income taxes        |     |                              |      - |     |      |      - |
| Total Income Tax Expense (benefit) |     | $                            | 60,000 |     | $    | 23,364 |

A reconciliation between the amount of reported income tax expense (benefit) and the amount computed by multiplying income from continuing operations before income taxes by the statutory federal income tax rate is shown below. Income tax expense for the year ended December 31, 2023 includes state minimum taxes, permanent differences, and deferred tax assets for which a full valuation allowance has been placed.

Schedule of Increase in the Valuation Allowance

|                                                       |     | Year ended December 31, 2022 
 2023                         |       2023 |   |     | 2022 |       2022 |   |
|:------------------------------------------------------|:----|:-----------------------------|-----------:|:--|:----|:-----|-----------:|:--|
| Tax Expense at statutory federal rate of 21%          |     | $                            | (5,392,727 | ) |     | $    | (3,239,371 | ) |
| State income taxes, net of federal income tax benefit |     |                              |     60,000 |   |     |      |     23,364 |   |
| Foreign Rate Differential                             |     |                              |        318 |   |     |      |          - |   |
| Permanent Differences                                 |     |                              |  1,203,361 |   |     |      |     37,919 |   |
| Other - Misc.                                         |     |                              |            |   |     |      |            |   |
| Change in Valuation Allowance                         |     |                              |  4,189,048 |   |     |      |  3,201,452 |   |
| Income tax expense (benefit)                          |     |                              |     60,000 |   |     |      |     23,364 |   |

| 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