Lottery.com Inc. reported a net loss of $28.7 million for the fiscal year ended December 31, 2024, compared to a net loss of $25.7 million in the prior year. Revenue decreased significantly from $7.02 million in 2023 to $1.07 million in 2024, primarily due to the absence of a large bulk ticket sale that occurred in 2023. Cost of revenue also fell from $5.67 million to $321,000, reflecting the same cause. Operating expenses remained relatively stable at $18.9 million in 2024 compared to $19 million in 2023.
Significant changes in the company's financial performance were primarily driven by the absence of the large bulk ticket sale in 2024. Other factors contributing to the net loss included a $4.75 million reserve for loss of prepaid advertising credits and a $4.3 million loss on impairment of intangibles and goodwill in 2024. In 2023, the impairment charges totaled $7.5 million. The company's cash balance decreased from $359,826 at the end of 2023 to $68,035 at the end of 2024.
During the fiscal year, Lottery.com finalized the acquisition of S&MI Ltd. for $1 million in restricted stock units, payable over five installments. The company also launched the Sports.com app and secured live streaming rights for a boxing match in Africa. Further, the company entered into a two-year sponsorship agreement with Soccerex LLC, designating Sports.com as the title sponsor for its expositions in 2025 and 2026. Organizational changes included the resignation of Mark Bernard Battles from the board of directors and the appointment of Warren Macal. A change in registered public accounting firms also occurred, with Boladale Lawal & Company replacing Yusufali & Associates, LLC.
Key operational developments included the launch of the Sports.com app and its integration with Bango's Digital Vending Machine, targeting expansion into 40 markets. The company also resumed its sweepstakes offerings through a partnership with WinTogether.org. As of the end of 2024, Lottery.com had six employees and nine key contractors supporting U.S. operations, and six employees supporting international operations. The company's common stock and warrants trade on the Nasdaq Stock Market LLC under the symbols LTRY and LTRYW, respectively.
The company's outlook indicates plans to relaunch its B2C platform by mid-year 2025, initially in limited geographic areas. It also anticipates restoring other business lines and projects, including monetizing Sports.com. The company acknowledges substantial doubt about its ability to continue as a going concern for a reasonable period of time due to its accumulated deficit, net losses, and negative working capital, and its dependence on future borrowings or equity sales to fund operations. The filing includes numerous risk factors related to litigation, regulatory compliance, competition, and financial stability.
About Lottery.com Inc.
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