Lottery.com Inc. (ticker: LTRY), an online platform for lottery games, recently disclosed in its quarterly report that its amortization expenses related to intangible assets stood at over $22.6 million as of March 31, 2023. Intangible assets, which are essential in driving the company’s revenue and overall value, include factors such as customer relationships, trade names, technology, software agreements, gaming licenses, internally developed software, and domain names.
According to the report, amortization expenses concerning intangible assets in the three months leading up to March 31, 2023, was around $1.38 million. This represents an increase when compared to the same period in 2022, with a recorded amount of nearly $1.34 million.
Breaking down the individual intangible assets
Lottery.com’s customer relationships, vital for driving consistent income, were valued at $512,365 on March 31, 2023. Trade names and technology, important for maintaining and expanding the company’s market presence, have seen a growth in value – with trade names at $1.8 million and technology at $1.49 million. Software agreements, another vital aspect in the functioning and efficacy of the company’s online platform, were pegged at $7.78 million during the same period.
The report also highlighted notes receivable, where Lottery.com entered into a secured promissory note agreement with a $2 million principal amount on March 22, 2022. The note bears a simple interest of roughly 3.1% annually and is due upon maturity. As of March 31, 2023, the entire $2 million in principal was outstanding, with the company holding $32,614 in accrued interest.
In addition to the intangible assets
Lottery.com also provided an update regarding its property and equipment, net as of March 31, 2023. Computers and equipment were valued at $125,095, while furniture and fixtures were valued at $16,898. Software, a significant driver of the company’s success, was valued at over $2 million, bringing the total value of property and equipment to nearly $2.17 million.
Despite the growth seen in some areas, the company has also recorded depreciations in property and equipment. Depreciation expense was $24,556 for the three months ended March 31, 2023 – a increase when compared to $38,291 for the three months ended March 31, 2022.
Lottery.com’s success in strengthening its intangible assets, along with details on its property and net equipment, showcases the company’s consistent focus on effective investments that drive growth. As Lottery.com continues to expand its online platform and increase its market presence, these valuable assets will be vital in paving the way for the company’s future success.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!