Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the
“Company”), a leading technology company that is transforming how,
where and when the lottery is played, reported financial results
for the fourth quarter and full year ended December 31, 2021. On
October 29, 2021, the Company successfully completed its business
combination with Trident Acquisitions Corp. (the “business
combination”).
Tony DiMatteo, Lottery.com Co-Founder and CEO,
commented, “In the fourth quarter and throughout 2021, we
demonstrated our ability to execute our strategic growth
initiatives across the business to generate strong revenue growth
and gross profit. B2C sales increased compared to the prior year
period, despite no digital marketing spending. LotteryLink, our
affiliate program, expanded and generated multiple revenue streams.
I am extremely proud of our team achieving these accomplishments
while successfully closing the business combination and taking our
Company public.”
Mr. DiMatteo continued, “We entered 2022 with
positive momentum and continued focus on executing our strategic
growth plan. Fueled by approximately $43 million of proceeds from
our business combination and $30 million received from the sale of
LotteryLink credits, we are investing in initiatives to drive
growth. I am pleased with our execution in the first quarter and am
excited about our prospects to scale and grow the business in
2022.”
(1) 2021 Pro Forma Revenue and Full Year 2021
Adjusted EBITDA are financial measures that are not calculated in
accordance with Generally Accepted Accounting Principles in the
United States (“GAAP”). See “Non-GAAP Financial Measures” below for
a discussion of the definition of these non-GAAP financial measures
and “Reconciliation of Non-GAAP Financial Measures” for a
reconciliation to their most comparable GAAP measures.
Fourth Quarter 2021 Financial
Highlights
Q4 2021 Financial
Highlights |
|
Three Months EndedDecember 31, |
|
|
|
|
2021 |
|
2020 |
|
Change |
(in millions) |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
21.5 |
|
|
$ |
3.3 |
|
|
$ |
18.2 |
|
Gross profit |
|
$ |
18.3 |
|
|
$ |
2.1 |
|
|
$ |
16.2 |
|
Net loss |
|
$ |
(12.9 |
) |
|
$ |
(1.7 |
) |
|
$ |
(11.2 |
) |
Cash |
|
$ |
62.6 |
|
|
$ |
3.8 |
|
|
$ |
58.8 |
|
Debt |
|
$ |
3.8 |
|
|
$ |
21.1 |
|
|
$ |
(17.3 |
) |
Fourth quarter 2021 revenues
were $21.5 million, an increase of $18.2 million, or 559%, from the
fourth quarter of 2020. The growth was driven by the sale of
LotteryLink credits to a LotteryLink affiliate, primarily to
acquire prepaid lottery games from the Company in conjunction with
the affiliate’s launch of a pilot promotional campaign at a
national grocery chain. The Company also sold LotteryLink credits
for marketing materials, product development and $3.0 million in
prepaid advertising credits. B2C lottery ticket sales increased
substantially from the prior year period, despite no digital
marketing spend.
Fourth quarter 2021 gross
profit was $18.3 million, an increase of $16.2 million
from the fourth quarter of 2020. The increase was primarily driven
by the sale of LotteryLink credits to a LotteryLink affiliate for
prepaid lottery games from the Company, many of which expired
without being redeemed due to the delayed launch of the affiliate’s
promotional programs. As a result, the Company did not incur costs
with respect to the sale of those credits.
Fourth quarter 2021 net loss
was $12.9 million, driven by non-cash stock compensation expense of
$15.5 million. The net loss also included $8.8 million of interest
expense, which was driven by a non-recurring expense associated
with conversion of debt to equity at the time of the business
combination.
Cash as of December 31, 2021,
was $62.6 million, which included $42.8 million in net proceeds
from the business combination and $30.0 million received from the
previously announced sale of LotteryLink credits in the third
quarter of 2021.
Debt as of December 31, 2021,
was $3.8 million following the conversion of $63.5 million of
convertible debt into equity immediately prior to the business
combination.
Full Year 2021 Financial
Highlights
2021 Financial
Highlights |
|
Twelve Months EndedDecember 31, |
|
|
|
|
2021 |
|
2020 |
|
Change |
(in millions) |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
68.5 |
|
|
$ |
7.5 |
|
|
$ |
61.0 |
|
Pro forma revenues |
|
$ |
70.5 |
|
|
$ |
10.3 |
|
|
$ |
60.2 |
|
Gross profit |
|
$ |
49.4 |
|
|
$ |
4.5 |
|
|
$ |
44.9 |
|
Net loss |
|
$ |
(9.3 |
) |
|
$ |
(5.8 |
) |
|
$ |
(3.5 |
) |
Adjusted EBITDA |
|
$ |
31.1 |
|
|
$ |
(3.1 |
) |
|
$ |
34.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full year 2021 revenues were
$68.5 million, an increase of $61.0 million, or 819%, from 2020.
The growth was driven primarily by the sale of $47.1 million of
LotteryLink credits for prepaid advertising, prepaid lottery games,
marketing materials and product development. Increased B2C sales
also contributed to revenue growth.
2021 pro forma revenues were
$70.5 million and included the full year impact of Global Gaming
Enterprises, Inc. (“Global Gaming”), which the Company acquired in
June 2021. Global Gaming owns an 80% equity interest in each of two
Mexican entities.
Full year 2021 gross profit was
$49.4 million, an increase of $44.9 million from 2020. The increase
was primarily driven by the profits generated by the sale of
LotteryLink credits and higher data sales, which generate margins
above the Company average.
Full year 2021 net loss was
$9.3 million and was driven by strong gross profit, offset by $18.1
million of interest expense, which includes a non-recurring expense
associated with the conversion of debt to equity at the time of the
business combination, $15.5 million of non-cash stock compensation
expense, and $4.1 million of operational expenses related to the
business combination.
Full year 2021 Adjusted EBITDA
was $31.1 million, an increase of $34.2 million compared to
negative Adjusted EBITDA of $3.1 million in 2020. The increase was
driven by strong growth in gross profit.
Update on Key Initiatives
- B2C User Growth
- Signed an agreement with T-Mobile
to become its exclusive digital lottery brand advertising on
T-Mobile platform in rideshare vehicles.
- Tested B2C ad campaigns on multiple
digital outlets in the first quarter of 2022 and intend to use this
data to launch broader marketing campaigns in the second quarter of
2022.
- LotteryLink and
B2B
- LotteryLink affiliate launched a
pilot program with a national grocery store chain, which is
expected to expand in the second quarter of 2022.
- Added ICARO Media Group as an
affiliate to promote Lottery.com B2C products in South
America.
- Project Nexus
- Phase 1: Launch anticipated in
early Q2 2022; expected to increase platform scalability, security,
and the ability to implement product updates.
- Phase 2: Launch anticipated by the
end of Q3 2022; expected to enable additional revenue generating
features for existing products.
- Phase 3: Launch anticipated by the
end of Q4 2022; expected to enable the support of a proprietary
game that accepts payment in fiat or crypto currency, subject to
regulatory and compliance requirements.
- New Markets
- Anticipate entry into five new
domestic jurisdictions by the end of 2022.
Conference Call
This morning at 8:30 AM ET, the Company will
host a conference call to discuss fourth quarter 2021 and full year
2021 results. A live webcast of the conference call will be
available on the Investor Relations section of the Lottery.com
website at https://ir.lottery.com. For those who cannot listen to
the live webcast, a replay of the conference call will be available
on the Lottery.com Investor Relations website.
To join by telephone, please dial 877-313-2495
or 929-517-0906 if calling from outside the U.S. The conference
code is 5886747. Please dial in a minimum of 15 minutes prior to
the start time to ensure a timely connection to the call. An
operator will register your name and organization.
About Lottery.com
Lottery.com is a leading technology company that
is transforming how, where and when lottery is played. Its engaging
mobile and online platforms enable players located in the United
States and internationally to remotely purchase legally sanctioned
lottery games. Fans and subscribers look to Lottery.com for
compelling, real-time results on more than 800 lottery games from
more than 40 countries. Additionally, commercial partners and
affiliates can utilize LotteryLink to provide Lottery.com products
to their customers. Through WinTogether.org, Lottery.com is
fundamentally changing how non-profit donors are incentivized to
action by gamifying charitable giving. In all that it does,
Lottery.com’s mission remains the same: an uncompromising passion
to innovate, grow a new demographic of enthusiasts, deliver
responsible and trusted solutions, and promote community and
philanthropic initiatives. For more information,
visit http://www.lottery.com.
Non-GAAP Financial Measures
This press release includes Pro Forma Revenue,
EBITDA and Adjusted EBITDA, which are non-GAAP performance measures
that we use to supplement our results presented in accordance with
U.S. GAAP. We believe Pro Forma Revenue, EBITDA and Adjusted EBITDA
are useful in evaluating our operating performance, similar to
measures reported by our publicly-listed U.S. competitors, and
regularly used by security analysts, institutional investors and
other interested parties in analyzing operating performance and
prospects. Pro Forma Revenue, EBITDA and Adjusted EBITDA are not
intended to be substitutes for any U.S. GAAP financial measure and,
as calculated, may not be comparable to other similarly titled
measures of performance of other companies in other industries or
within the same industry.
We define and calculate Pro Forma Revenue as
revenue plus the impact on revenue as if the acquisition of Global
Gaming by Lottery.com were consummated on January 1, 2020. We
define and calculate EBITDA as net income or loss before the impact
of interest income or expense, income tax expense or benefit,
depreciation and amortization, and Adjusted EBITDA as EBITDA, as
further adjusted for stock-based compensation and certain other
non-recurring, non-cash or non-core items.
We include these non-GAAP financial measures
because they are used by management to evaluate our core operating
performance and trends and to make strategic decisions regarding
the allocation of capital and new investments. The financial
statement tables that accompany this press release include a
reconciliation of Pro Forma Revenue, EBITDA and Adjusted EBITDA to
their most comparable U.S. GAAP financial measures.
Forward Looking Statements
This press release contains statements that
constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”). All statements, other
than statements of present or historical fact included in this
press release, regarding Lottery.com’s strategy, future operations,
prospects, plans and objectives of management, are forward-looking
statements. When used in this press release, the words “could,”
“should,” “will,” “may,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “project,” the negative of such terms and
other similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on management’s current expectations and assumptions about future
events and are based on currently available information as to the
outcome and timing of future events. Except as otherwise required
by applicable law, Lottery.com disclaims any duty to update any
forward-looking statements, all of which are expressly qualified by
the statements in this section, to reflect events or circumstances
after the date of this press release. Lottery.com cautions you that
these forward-looking statements are subject to numerous risks and
uncertainties, most of which are difficult to predict and many of
which are beyond the control of Lottery.com. In addition,
Lottery.com cautions you that the forward-looking statements
contained in this press release are subject to the following
factors: (i) risks related to the timely implementation, launch or
outcome of the Company’s technological development initiatives,
including Project Nexus, as anticipated, or at all, and the risk
that any of such technological development initiatives could have
undetected defects or errors; (ii) the likelihood that the
Company’s interest expense is maintained as the Company’s
anticipates and the impact on the Company’s financial position in
the event that it is not; (iii) the utility and impact of any
information acquired by the Company during consumer testing as well
as the risks of the data being applicable to a wider and more
diverse consumer market; (iv) the ability of Lottery.com to achieve
its strategic and growth objectives as stated or at all, including,
without limitation, its ability to enter into new domestic
jurisdictions or to cause LotteryLink to generate profitable growth
and cost-effectively increase the Company’s user base and brand
recognition; (v) the effects of competition on Lottery.com’s future
business; (vi) Lottery.com’s ability to maintain effective internal
controls over financial reporting, including, without limitation,
the remediation of identified material weaknesses in internal
control over financial reporting relating to segregation of duties
with respect to, and access controls to, its financial record
keeping system, and Lottery.com’s accounting staffing levels; (vii)
risks relating to cyber, privacy and data protection laws, cyber,
privacy or data breaches, or the loss of data; (viii) the outcome
of any legal proceedings that may be instituted against
Lottery.com; (ix) changes in applicable laws or regulations; (x)
risks related to the COVID-19 pandemic and its effect directly on
Lottery.com and the economy generally; (xi) the possibility that
Lottery.com may be adversely affected by other economic, business,
and/or competitive factors; (xii) those factors discussed under the
heading “Risk Factors” in the Form S-1 filed by Lottery.com with
the SEC on November 18, 2021, and the other documents filed, or to
be filed, by Lottery.com with the SEC. Should one or more of the
risks or uncertainties described in this press release materialize
or should underlying assumptions prove incorrect, actual results
and plans could differ materially from those expressed in any
forward-looking statements. Additional information concerning these
and other factors that may impact the operations and projections
discussed herein can be found in the reports that Lottery.com has
filed and will file from time to time with the SEC. These SEC
filings are available publicly on the SEC’s website at
www.sec.gov.
|
Lottery.com Inc. |
Condensed
Consolidated Statements of Operations |
Three
Months Ended December 31, 2021 and 2020 and Twelve Months
Ended |
December
31, 2021 and 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
Revenue |
|
$ |
21,492,067 |
|
|
$ |
3,262,200 |
|
|
$ |
68,527,394 |
|
|
$ |
7,459,514 |
|
Cost of revenue |
|
|
3,233,635 |
|
|
|
1,181,530 |
|
|
|
19,158,707 |
|
|
|
2,952,415 |
|
Gross profit |
|
|
18,258,432 |
|
|
|
2,080,670 |
|
|
|
49,368,687 |
|
|
|
4,507,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Personnel costs |
|
|
17,447,294 |
|
|
|
1,502,491 |
|
|
|
21,585,534 |
|
|
|
4,477,955 |
|
Professional fees |
|
|
3,105,420 |
|
|
|
482,340 |
|
|
|
8,279,798 |
|
|
|
1,121,218 |
|
General and administrative |
|
|
664,735 |
|
|
|
491,404 |
|
|
|
5,020,495 |
|
|
|
1,084,784 |
|
Depreciation and amortization |
|
|
1,388,606 |
|
|
|
468,504 |
|
|
|
4,292,606 |
|
|
|
1,533,994 |
|
Total operating expenses |
|
|
22,606,055 |
|
|
|
2,944,740 |
|
|
|
39,178,433 |
|
|
|
8,217,951 |
|
Income (loss) from
operations |
|
|
(4,347,623 |
) |
|
|
(864,070 |
) |
|
|
10,190,254 |
|
|
|
(3,710,852 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
8,814,314 |
|
|
|
340,375 |
|
|
|
18,132,952 |
|
|
|
1,221,928 |
|
Other expense |
|
|
1,250,978 |
|
|
|
462,225 |
|
|
|
2,907,518 |
|
|
|
879,083 |
|
Total other expenses, net |
|
|
10,065,292 |
|
|
|
802,600 |
|
|
|
21,040,470 |
|
|
|
2,101,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before income
tax |
|
|
(14,412,915 |
) |
|
|
(1,666,670 |
) |
|
|
(10,850,216 |
) |
|
|
(5,811,863 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
|
(1,551,689 |
) |
|
|
800 |
|
|
|
(1,551,689 |
) |
|
|
800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(12,861,226 |
) |
|
$ |
(1,667,470 |
) |
|
$ |
(9,298,527 |
) |
|
$ |
(5,812,663 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative translation adjusment, net |
|
|
(655 |
) |
|
|
- |
|
|
|
(655 |
) |
|
|
- |
|
Total other comprehensive loss |
|
$ |
(12,861,881 |
) |
|
$ |
(1,667,470 |
) |
|
$ |
(9,299,182 |
) |
|
$ |
(5,812,663 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.39 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
33,202,310 |
|
|
|
22,658,006 |
|
|
|
25,998,831 |
|
|
|
22,658,006 |
|
Lottery.com Inc |
Condensed
Consolidated Balance Sheet |
Unaudited |
|
|
|
|
|
|
|
|
|
As of December 31, |
|
As of December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Assets |
|
|
|
Cash |
|
$ |
62,638,970 |
|
|
$ |
3,825,511 |
|
Restricted cash |
|
|
- |
|
|
|
6,950,000 |
|
Accounts receivable |
|
|
21,696,653 |
|
|
|
26,195 |
|
Prepaid expenses |
|
|
13,896,638 |
|
|
|
22,013,110 |
|
Other current assets |
|
|
226,200 |
|
|
|
788,033 |
|
Total current assets |
|
|
98,458,461 |
|
|
|
33,602,849 |
|
Investments |
|
|
250,000 |
|
|
|
250,000 |
|
Goodwill |
|
|
19,590,758 |
|
|
|
12,997,048 |
|
Intangible assets, net |
|
|
28,710,980 |
|
|
|
3,211,250 |
|
Property and equipment, net |
|
|
141,279 |
|
|
|
670,952 |
|
Total assets |
|
$ |
147,151,478 |
|
|
$ |
50,732,099 |
|
|
|
|
|
Liabilities |
|
|
|
Trade payables |
|
$ |
1,006,535 |
|
|
$ |
2,176,621 |
|
Deferred revenue |
|
|
662,335 |
|
|
|
7,763,593 |
|
Convertible debt, net - current |
|
|
- |
|
|
|
8,882,665 |
|
Notes payable - current |
|
|
3,771,340 |
|
|
|
12,207,180 |
|
Accrued interest |
|
|
176,260 |
|
|
|
721,717 |
|
Accrued and other expenses |
|
|
4,528,815 |
|
|
|
2,335,350 |
|
Total current liabilities |
|
|
10,145,285 |
|
|
|
34,087,126 |
|
Convertible debt, net - non current |
|
|
- |
|
|
|
10,000 |
|
Other long term liabilities |
|
|
1,169 |
|
|
|
- |
|
Total liabilities |
|
|
10,146,454 |
|
|
|
34,097,126 |
|
|
|
|
|
Equity |
|
|
|
Controlling Interest |
|
|
|
|
|
|
|
Preferred Stock par value $0.001, 1,000,000 shares authorized, |
|
|
|
|
|
|
|
|
none issued and outstanding |
|
|
- |
|
|
|
- |
|
Common stock par value $.001, 500,000,000 shares authorized, |
|
|
|
|
|
|
22,658 |
|
46,808,251 and 22,658,006 issued and outstanding as of
December |
|
|
|
|
|
|
|
|
31, 2021 and December 31, 2020 respectively |
|
|
46,808 |
|
|
|
22,658 |
|
Additional paid-in capital |
|
|
238,754,797 |
|
|
|
111,752,883 |
|
Accumulated other comprehensive (loss) |
|
|
(655 |
) |
|
|
- |
|
Accumulated deficit |
|
|
(104,439,095 |
) |
|
|
(95,140,568 |
) |
Total Lottery.com Inc. stockholder's equity |
|
|
134,361,855 |
|
|
|
16,634,973 |
|
Noncontrolling Interest |
|
|
2,643,169 |
|
|
|
- |
|
Total Equity |
|
|
137,005,024 |
|
|
|
16,634,973 |
|
Total Liabilities &
Equity |
|
$ |
147,151,478 |
|
|
$ |
50,732,099 |
|
Lottery.com Inc. |
Condensed
Consolidated Statement of Cash Flows |
(unaudited) |
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Cash flow from
operating activities |
|
|
|
Net income (loss) |
|
$ |
(9,298,527 |
) |
|
$ |
(5,812,663 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
|
4,292,606 |
|
|
|
1,533,994 |
|
Amortization of debt discount and beneficial conversion
feature |
|
|
8,474,858 |
|
|
|
827,647 |
|
Stock based compensation expense |
|
|
15,532,263 |
|
|
|
16,099 |
|
Forgiveness of PPP Loan |
|
|
(493,125 |
) |
|
|
- |
|
Loss on extinguishment of debt |
|
|
71,174 |
|
|
|
- |
|
Issuance of debt to pay expenses |
|
|
2,732,167 |
|
|
|
- |
|
Non cash deSPAC expense |
|
|
5,460,452 |
|
|
|
- |
|
Income tax valuation allowance |
|
|
(1,653,067 |
) |
|
|
|
|
|
Changes in assets &
liabilities: |
|
|
|
Accounts receivable |
|
|
(21,636,324 |
) |
|
|
- |
|
Prepaid expenses |
|
|
8,121,496 |
|
|
|
295,772 |
|
Other current assets |
|
|
827,625 |
|
|
|
(38,167 |
) |
Trade payables |
|
|
(1,171,557 |
) |
|
|
(341,251 |
) |
Deferred revenue |
|
|
(7,101,258 |
) |
|
|
7,647,305 |
|
Accrued interest |
|
|
(545,456 |
) |
|
|
394,282 |
|
Accrued and other expenses |
|
|
3,277,745 |
|
|
|
174,023 |
|
Other long term liabilities |
|
|
1,169 |
|
|
|
- |
|
Net cash provided by operating
activities |
|
|
6,892,239 |
|
|
|
4,697,041 |
|
|
|
|
|
Cash flow from
investing activities |
|
|
|
Purchases of property and equipment |
|
|
(28,170 |
) |
|
|
(21,915 |
) |
Purchases of intangible assets |
|
|
(5,192,050 |
) |
|
|
- |
|
Investment in subsidiary |
|
|
(10,012,540 |
) |
|
|
- |
|
Net cash used in investing
activities |
|
|
(15,232,760 |
) |
|
|
(21,915 |
) |
|
|
|
|
Cash flow from
financing activities |
|
|
|
Issuance of digital securities |
|
|
108,332 |
|
|
|
649,992 |
|
Proceeds from exercise of options and warrants |
|
|
371,726 |
|
|
|
- |
|
Proceeds from issuance of convertible debt |
|
|
23,483,500 |
|
|
|
5,271,363 |
|
Proceeds from the issuance of notes payable |
|
|
5,000,000 |
|
|
|
910,825 |
|
Proceeds from despac |
|
|
44,614 |
|
|
|
- |
|
Extinguishment of debt |
|
|
42,794,176 |
|
|
|
- |
|
Principal payments on debt |
|
|
(11,597,713 |
) |
|
|
(890,287 |
) |
Net cash provided by financing
activities |
|
|
60,204,635 |
|
|
|
5,941,893 |
|
Effect of exchange rate
changes on cash |
|
|
(655 |
) |
|
|
- |
|
Net change in net cash and
restricted cash |
|
|
51,863,460 |
|
|
|
10,617,020 |
|
Cash and restricted cash at
beginning of period |
|
|
10,775,511 |
|
|
|
158,492 |
|
Cash and restricted cash at
end of period |
|
$ |
62,638,971 |
|
|
$ |
10,775,511 |
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES: |
|
|
|
Interest paid in cash |
|
$ |
4,438,623 |
|
|
$ |
- |
|
Non cash investing and
financing activities |
|
|
|
Conversion of convertible debt into common stock |
|
$ |
63,484,240 |
|
|
$ |
- |
|
Capitalization of interest from loan extinguishment |
|
$ |
44,614 |
|
|
Purchase of intangible assets through the issuance of convertible
debt |
|
$ |
15,450,000 |
|
|
$ |
- |
|
Issuance of convertible debt in exchange for outstanding
liabilities |
|
$ |
2,108,983 |
|
|
$ |
- |
|
Issuance of convertible debt in exchange for notes payable |
|
$ |
4,531,250 |
|
|
Common stock issued as part of acquisition |
|
$ |
459,691 |
|
|
$ |
- |
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
Lottery.com Inc. |
|
|
|
|
Reconciliation of Revenues to Pro Forma
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
December 31, |
|
|
|
|
2021 |
|
2020 |
|
Change |
(in millions) |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
68.5 |
|
|
$ |
7.5 |
|
|
$ |
61.0 |
|
Global Gaming pre-acquisition
revenue(1) |
|
|
2.0 |
|
|
|
2.9 |
|
|
$ |
(0.9 |
) |
Pro forma revenues
(non-GAAP) |
|
$ |
70.5 |
|
|
$ |
10.3 |
|
|
$ |
60.2 |
|
(1) Giving effect to the acquisition of Global Gaming, which
Lottery.com acquired in June 2021, as if it were consummated on
January 1, 2020 |
|
|
Lottery.com Inc. |
|
|
|
|
|
Reconciliation of Net Income (Loss) to EBITDA and Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
December 31, |
|
|
|
|
|
2021 |
|
|
2020 |
|
Change |
(in millions) |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(9.3 |
) |
|
$ |
(5.8 |
) |
|
$ |
(3.5 |
) |
Interest expense |
|
|
18.1 |
|
|
|
1.2 |
|
|
16.9 |
|
Income tax expense
(benefit) |
|
|
(1.6 |
) |
|
|
0.0 |
|
|
(1.6 |
) |
Depreciation and amortization
expenses |
|
|
4.3 |
|
|
|
1.5 |
|
|
2.8 |
|
EBITDA (non-GAAP) |
|
|
11.5 |
|
|
|
(3.1 |
) |
|
14.6 |
|
|
|
|
|
|
|
|
|
|
Operating expenses related to
business combination |
|
|
4.1 |
|
|
|
- |
|
|
4.1 |
|
Non-cash stock compensation
expense |
|
|
15.5 |
|
|
|
- |
|
|
15.5 |
|
Adjusted EBITDA
(non-GAAP) |
|
$ |
31.1 |
|
|
$ |
(3.1 |
) |
|
$ |
34.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery.com Contact:Matthew
SchlarbVP, Investor Relations(512) 585-7789ir@lottery.com
or
Jody Burfening/Harriet FriedLHA Investor
Relations(212) 838-3777hfried@lhai.com
Lottery com (NASDAQ:LTRY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Lottery com (NASDAQ:LTRY)
Historical Stock Chart
From Sep 2023 to Sep 2024