Company: LTRYW
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001493152-25-002444
Chunk: 307

Company: Lottery.com Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 307
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|---------:|:--|
| Other expenses            |     |                                 |         |     |     |           |     |     |            |   |     |     |          |   |
| Interest expense          |     |                                 | 376,110 |     |     |   764,839 |     |     | (393,729   | ) |     |     |      -51 | % |
| Other expense             |     |                                 | 136,429 |     |     | 3,721,291 |     |     | (3,584,862 | ) |     |     |      -96 | % |
| Total other expenses, net |     |                                 | 512,539 |     |     | 4,486,130 |     |     | (3,973,591 | ) |     |     |      -89 | % |

Interest Expense.Interest expense decreased by $394 thousand, or (51%), for the year ended December 31, 2023, from $765 thousand to $376 thousand as compared to the year ended December 31, 2022. This decrease relates primarily to interest on the Bank Prov line of credit in 2022 which did not occur in 2023.

Other Expense.Other expense decreased by $3.6 million, or (96)%, for the year ended December 31, 2023 as compared to the year ended December 31, 2022 from $3.7 million to $136 thousand. This decrease was driven primarily by a discount on an asset with periodic payments of $3.5 million which was recorded in 2022.

| F-82 |

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