Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 209

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part II, Item 8
Chunk 209
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31, 2024 

    Computers and equipment 
    $123,911  
    $123,911 
  
    Furniture and fixtures 
     16,900  
     16,900 
  
    Software 
     2,026,200  
     2,026,200 
  
    Property and equipment 
     2,159,596  
     2,167,011 
  
    Accumulated depreciation 
     (2,156,971) 
     (2,154,887)
  
    Property and equipment, net 
    $2,660  
    $12,124 

Depreciation
expense for the three months ended June 30, 2025 was $1,579 and
was $2,831 for
the three months ended June 30, 2024.

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 half of 2025 and anticipates fully utilizing all of them by the end of 2026. Accordingly, they are presented as current assets.

Note
6. Notes Receivable

On
March 22, 2022, the Company entered into a 3three-year secured promissory note agreement with a principal amount of $2,000,000. The note
bears simple interest at the rate of approximately 3.1% annually, due upon maturity of the note. The note is secured by all assets, accounts,
and tangible and intangible property of the borrower and can be prepaid any time prior to its maturity date. As of June 30, 2025, the
entire $2,000,000 in principle was outstanding.

This
note was received in consideration for a portion of the development work that the Company performed for the borrower who had intended
to use the Company’s technology to launch its own online game in a jurisdiction outside the U.S., where the Company is unlikely
to operate.

Note
7. Write-Off of Goodwill and Intangibles