Company: LTRYW
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001641172-25-005663
Chunk: 162

Company: Lottery.com Inc.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 162
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| Furniture and fixtures      |     |      |       16,900 |   |     |      |       16,898 |   |
| Software                    |     |      |    2,026,200 |   |     |      |    2,026,200 |   |
| Property and equipment      |     |      |    2,167,011 |   |     |      |    2,167,297 |   |
| Accumulated depreciation    |     |      |   (2,154,887 | ) |     |      |   (2,145,988 | ) |
| Property and equipment, net |     | $    |       12,124 |   |     | $    |       21,309 |   |

Depreciation expense for the years ended December 31, 2024 and 2023 amounted to $ 9,185and $ 90,744, respectively.

| F-19 |

Note 5. Prepaid Expenses

Prepaid expenses consist primarily of advertising credits from two top tier media organizations that operate in the United States. The advertising credits were obtained in return for warrants, shares of common stock and shares of preferred stock. The agreements do not specify a time period for utilizing these credits and there is no requirement to provide cash or other consideration in connection with utilizing them. The balance can be utilized at any time at the mutual consent of the parties. The Company expects to begin utilizing these credits in the second quarter of 2025. Accordingly, they are presented as current assets.

Note 6. Notes Receivable

On March 22, 2022, the Company entered into a three-year 3secured promissory note agreement with a principal amount of $ 2,000,000. The note bears simple interest at the rate of approximately 3.1% annually, due upon maturity of the note. The note is secured by all assets, accounts, and tangible and intangible property of the borrower and can be prepaid any time prior to its maturity date. As of December 31, 2024, the entire $ 2,000,000in principle was outstanding.

This note was received in consideration for a portion of the development work that the Company performed for the borrower who had intended to use the Company’s technology to launch its own online game in a jurisdiction outside the U.S., where the Company is unlikely to operate.

On October 5, 2021, the Company
provided $