Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 30

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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4. Property and Equipment, net

Property
and equipment, net as of September 30, 2025 and December 31, 2024, consisted of the following:

Schedule of Property and Equipment 

    September 30, 2025  
    December 31, 2024 

    Computers and equipment 
    $115,038  
    $123,911 
  
    Furniture and fixtures 
     18,582  
     16,900 
  
    Software 
     2,026,200  
     2,026,200 
  
    Property and equipment 
     2,159,820  
     2,167,011 
  
    Accumulated depreciation 
     (2,157,989) 
     (2,154,887)
  
    Property and equipment, net 
    $1,831  
    $12,124 

Depreciation
expense for the three months ended September 30, 2025 was $830
and was $2,095 for
the three months ended September 30, 2024.

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 half of 2025 and anticipates fully utilizing all of them by the end of 2026. Accordingly, they are presented as current assets.

Note
6. Notes Receivable

On
March 22, 2022, the Company entered into a 3
three-year secured 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 September 30, 2025, the entire $2,000,000 in principle was outstanding.

This
note was received in consideration for a portion of the