Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 224

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part II, Item 8
Chunk 224
---
’s activities
or, in some cases, as a result of the indemnified party’s activities under the agreement. The maximum potential amount of future
payments the Company could be required to make under these indemnification provisions is unlimited. The Company has not incurred material
costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated
fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of September
30, 2025 and December 31, 2024.

Digital
Securities

In
2018, the Company commenced an offering and issuance (the “LDC Offering”) of 285 million revenue participation interests
(the “Digital Securities”) of the net raffle revenue of LDC Crypto Universal Public Company Limited (“LDC”).
The Digital Securities do not have any voting rights, redemption rights, or liquidation rights, nor are they tied in any way to other
equity securities of LDC or the Company nor do they otherwise hold any rights that a holder of equity securities of LDC or the Company
may have or that a holder of traditional equity securities or capital stock may have. Rather, each of the holders of the Digital Securities
has a pro rata right to receive 7% of the net raffle revenue. If the net raffle revenue is zero for a given period, holders of the Digital
Securities are not eligible to receive any cash distributions from any raffle sweepstakes of LDC for such period. For the years ended
December 31, 2024, December 31, 2023, and December 31, 2022, the Company did not incur any obligations to the holders of the outstanding
Digital Securities. For the year ended December 31, 2021, the Company incurred an obligation to pay an aggregate amount of approximately
$5,632 to holders of the outstanding Digital Securities. The Company did not satisfy those obligations during the three months ended
September 30, 2025 or the years ended December 31, 2024, 2023, 2022, or 2021.

Leases

The
Company leased office space in Spicewood, Texas which expired January
31, 2024 and had continued to utilize that facility on a month-to-month basis with monthly rent of $1,669
per month until August 31, 2024. On September 1, 2024, the Company moved