Company: LTRYW
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001493152-25-002444
Chunk: 192

Company: Lottery.com Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 192
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|:--|------------------:|:--|
| Computers and equipment     |     | $ |       124,678 |   |     | $ |           124,199 |   |
| Furniture and fixtures      |     |   |        16,898 |   |     |   |            16,898 |   |
| Software                    |     |   |     2,026,201 |   |     |   |         2,026,200 |   |
| Property and equipment      |     |   |     2,168,297 |   |     |   |         2,167,297 |   |
| Accumulated depreciation    |     |   |    (2,152,947 | ) |     |   |        (2,145,988 | ) |
| Property and equipment, net |     | $ |        15,350 |   |     | $ |            21,309 |   |

Depreciation expense for the three months ended June 30, 2024 was $ 2,831and was $ 11,825for the three months ended June 30, 2023.

| F-15 |

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 2024 and anticipates fully utilizing all of them by the end of 2025. Accordingly, they are presented as current assets.

Note 6. Notes Receivable

On March 22, 2022, the Company entered into a 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 June 30, 2024, the entire $ 2,000,000in principle was outstanding.

This note was received in consideration