Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 75

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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, a decrease of $164,000, or 23%, compared to revenue of $717,000
for the nine months ended September 30, 2024. The decrease in revenue is the net effect of decreases of $141,000 for Global Gaming
and $108,000 for TinBu in 2025 vs 2024 offset by an increase of $87,000 in revenue for the S&MI subsidiary which is because S&MI was present for nine months in 2025 and only for one month in 2024.

Cost
of Revenue. Cost of revenue includes product costs, commission expense to affiliates and commercial partners, and merchant processing
fees. Cost of revenue of $530,000 for the nine months ended September 30, 2025 was an increase of $314,000 or 146% compared with $216,000
for the nine months ended September 30, 2024. The primary driver of the increase is because S&MI was present for nine months in 2025 and only for one month in 2024. Cost of revenue for TinBu was essentially flat and
there was a small increase for Global Gaming.

Gross
Profit. Gross profit for the nine months ended September 30, 2025 was $23,000 compared to $501,000 for the nine months ended
September 30, 2024, a decrease of $478,000, or 95%. Gross profit decreased by: $156,000, for Global Gaming, Tinbu by $108,000, and
S&MI by $214,000 in the three months ended September 30, 2025.

Operating
Costs and Expenses.

    For the nine months Ended  

    September 30,  

    2025  
    2024  
    $ Change  
    % Change 

    Operating expenses: 

    Personnel costs 
     1,485,738  
     3,454,011  
     (1,968,273) 
     -57%
  
    Professional fees 
     3,878,826  
     4,769,938  
     (891,112) 
     -19%
  
    General and administrative 
     3,361,031  
     3,598,397  
     (237,366) 
     -7%
  
    Depreciation and amortization