Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 130

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 130
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119% from $62 thousand for the nine months ended September 30, 2023 to $(12) thousand for the nine
months ended September 30, 2024. Expenses incurred in the first half of 2023 in connection with the Company’s efforts to regain
compliance with Nasdaq and SEC reporting requirements were non-recurring, resulting in lower expenses for the nine months ended September
30, 2024.

Loss on impairment of goodwill & intangibles. For the nine months ended September 30, 2024, we determined that certain components of goodwill &
intangible assets were impaired. The loss on impairment of goodwill & intangibles for the nine months ended September 30, 2024 includes
write-offs to goodwill of $1.58 million related to the TinBu subsidiary and $1.91M related to the Global Gaming subsidiary as well as
write offs of $817 thousand related to intangible assets of Global Gaming for a total of $4.3 million. There were no impairments to goodwill
and intangibles for the nine months ended September 30, 2023.

Liquidity and Capital Resources

Prior to the Operational Cessation, our primary need for liquidity was to fund working capital requirements of our business, growth, capital expenditures and for general corporate purposes. Our primary source of liquidity had historically been funds generated by financing activities. Upon the Closing of the business combination on October 29, 2021, we received net proceeds of approximately $42.8 million in cash.

Following the Operational Cessation, our primary need for liquidity has been to fund the restart of our business operations, re-hire employees and pay our expenses. The most likely source of such future funding presently available to us is through additional borrowings under loan agreements or through the issuance of equity or debt securities. If lenders do not advance us amounts as agreed under loan agreements or we are otherwise not able to secure the necessary capital to restart our operations, hire new employees, and obtain funding sufficient to support and restart our operations, we may be forced to permanently cease our operations, sell off our assets and operations, and/or seek bankruptcy protection, which could cause the value of our securities to become worthless.

These conditions, along with our current lack of material revenue producing activities, and significant debt, raise substantial doubt about our ability to continue as a going concern for the next 12 months. For more information, see Note 2 - Significant Accounting Policies, Going Concern to the consolidated financial statements included