Lottery(LTRY) - 2019 Q4 - Annual Report

Financial Performance - The company had a net income of $2,533,106 for the year ended December 31, 2019, primarily from interest income on marketable securities held in the Trust Account of $4,324,060, offset by operating costs of $1,100,138 and a provision for income taxes of $690,816[137]. - Cash used in operating activities for the year ended December 31, 2019, was $1,525,377, with net income of $2,533,106 being affected by interest earned on marketable securities[141]. Marketable Securities - As of December 31, 2019, the company held marketable securities in the Trust Account amounting to $74,376,617, including approximately $2,032,000 of interest income and unrealized gains[140]. - The company intends to use substantially all funds held in the Trust Account to acquire a target business and cover related expenses, with remaining proceeds used as working capital for the target business[143]. Business Combination - The company extended the deadline to complete a Business Combination to June 1, 2020, after stockholders redeemed an aggregate of 13,081,434 shares, resulting in approximately $137,130,484 being removed from the Trust Account[134][133]. - The underwriter is entitled to a deferred fee of 2.5% of the gross proceeds of the Initial Public Offering, amounting to $5,031,250, to be paid upon closing of a Business Combination[151]. - The company has received loans totaling $1,405,000 from various entities to fund working capital requirements and transaction expenses related to a Business Combination[146][145]. - The company does not believe it will need to raise additional funds to meet operating expenditures but may require additional financing to complete a Business Combination if necessary[148]. Operational Costs - The company has no long-term debt or capital lease obligations, but incurs a monthly fee of $7,500 for office space and administrative services[150]. - As of December 31, 2019, the company had cash of $55,461 held outside the Trust Account, intended for identifying and evaluating target businesses[144].