Company: LTRYW
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001493152-25-002444
Chunk: 306

Company: Lottery.com Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 306
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2% from $6.61 million for the year ended December 31, 2022 to $6.74 million for the year ended December 31, 2023. While there were decreases in other types of professional fees, the increase was driven by fees for outside attorneys and accountants helping the company complete amended and new filings of reports 10-K and 10-Q during 2023 to regain compliance with reporting requirements.

General and Administrative.General and administrative expenses of $9.5 million for the year ended December 31, 2023 are $472 thousand, or 5%, higher than the $9.0 million reported for the year ended December 31, 2022. For the year ended December 31 2023, general and administrative expenses include write-offs to goodwill of $5.6 million related to the TinBu subsidiary and $1.1M related to the Global Gaming subsidiary as well as write offs of $800 thousand related to intangible assets of Global Gaming. Without these write-offs for impairment of intangible assets, which total $ 7.5 million, general and administrative expenses for 2023 would have been $1.97 million and 78% lower than in 2022. Some key drivers of the decrease for the year ended December 31, 2023 were business insurance expense $3 million lower, expensed developed software $530 thousand lower, software services $200 thousand lower, royalty expense $160 thousand lower, and facilities rent $110 thousand lower than for the year ended December 31, 2022.

Depreciation and Amortization.Depreciation and amortization increased $90 thousand, or 1%, from $5.6 million for the year ended December 31, 2022 to $5.7 million for the year ended December 31, 2023. The increase is due to a full year of amortization for Project Nexus in 2023 vs only half a year in 2022 as it was placed in service and amortization began mid-year 2022.

Other Expense, Net

|                           |     | For the Year Ended December 31, |    2023 |     |     |      2022 |     |     | $ Change   |   |     |     | % Change |   |
|:--------------------------|:----|:--------------------------------|--------:|:----|:----|----------:|:----|:----|:-----------|:--|:----|:----