Company: LTRYW
Filing Date: 2025-05-07
Form Type: S-1/A
Source: 0001641172-25-009053
Chunk: 131

Company: Lottery.com Inc.
Filing Date: 2025-05-07
Form: S-1/A
Chunk 131
---
 standard at its adoption date instead of at the earliest comparative period presented in the
Company’s financial statements. We are currently evaluating the impact that this guidance will have on our financial statements
as well as the expected adoption method. The adoption of this standard will not have a material impact on our financial statements.

In June 2016, the FASB issued
ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments”, as additional
guidance on the measurement of credit losses on financial instruments. The new guidance requires the measurement of all expected credit
losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable supportable
forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities and purchased financial
assets with credit deterioration. The new guidance became effective for all public companies for interim and annual periods beginning
after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. In October 2019,
the FASB approved a proposal which grants smaller reporting companies additional time to implement FASB standards on current expected
credit losses (CECL) to January 2023. As a smaller reporting company, we deferred adoption of ASU No. 2016-13 until January 2023. We
are currently evaluating the impact this guidance will have on our condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

As a “smaller reporting
company” as defined by Rule 10(f)(1) of Regulation S-K, the Company is not required to provide this information.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As previously disclosed,
in connection with the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “Original
2021 Annual Report”) on April 1, 2022, our management, with the participation of our then Chief Executive Officer and Chief Financial
Officer, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act) as of December 31, 2021. Based on their evaluation, our then Chief Executive Officer and Chief Financial Officer
concluded that, as of December 31, 202