Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 20

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 it was determined
that impairment charges were necessary. Impairments of goodwill for $1.6 million against Tinbu’s goodwill and $1.9 million against
Global Gaming’s goodwill and $817,000 against intangibles of Global Gaming were recorded. This consisted of impairments against
Trade Names & Technology in the amount of $547,000, Technology in the amount of $119,000, and Customer Relationships in the amount
of $150,000. There were no other impairments identified or recorded for the year ended December 31, 2024.

Estimated
amortization expense for years of useful life remaining is as follows:

                Years      Amount                  
  ending December 31,                              
 ───────────────────────────────────────────────────
                 2025      $            3,204,570  
                 2026                   2,197,760  
                 2027                   1,181,179  
                 2028                     678,075  
                 2029                     643,941  
           Thereafter                   4,874,507  
                           $           12,780,032  

The
Company had software development costs of $476,850 related to projects not placed in service as of both March 31, 2025 and December 31,
2024, which is included in intangible assets in the Company’s consolidated balance sheets. Amortization will be calculated using
the straight-line method over the appropriate estimated useful life when the assets are put into service.

  F-18  

Note 9. Notes
Payable and Convertible Debt

Secured
Convertible Note

In
connection with the Lottery. com domain purchase, the Company issued a secured convertible promissory note (“ Secured Convertible
Note”) with a fair value of $935,000 that matured in March 2021. The Company used the fair value of the Secured Convertible Note
to value the debt instrument issued. In March 2021, the Secured Convertible Note was fully converted into 69,910 shares of the Company’s
common stock.

Series
A Notes

From
August to October 2017, the Company entered into seven Convertible Promissory Note Agreements with unaffiliated investors for an aggregate
amount of $821,500. The notes bear interest at 10% per year, are unsecured, and were due and payable on June 30, 2019. The parties verbally
agreed to