Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 12

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 primarily cash. Cash holdings are placed with major financial
institutions deemed to be of high-credit-quality in order to limit credit exposure. The Company maintains deposits and certificates of
deposit with banks which may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit and money market accounts
which are not FDIC insured. In addition, deposits aggregating approximately $12,970 on June 30, 2025 are held in foreign banks. Management
believes the risk of loss in connection with these accounts is minimal.

Use
of Estimates

The
preparation of the financial statements requires management to make estimates and assumptions to determine the reported amounts of assets,
liabilities, revenue and expenses. Although management believes these estimates are reasonable, actual results could differ from these
estimates. The Company evaluates its estimates on an ongoing basis and prepares its estimates on historical experience and other assumptions
the Company believes to be reasonable under the circumstances.

Reclassifications

Certain
balances have been reclassified in the accompanying consolidated financial statements to conform to the current year presentation. These
reclassifications had no effect on the balances of current or total assets and prior year’s net loss or accumulated deficit.

Foreign
currency translation

Assets
and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. Dollars are
translated into U.S. Dollars using period-end exchange rates. Global Gaming operates in Mexican Pesos and the base currency for Sports.com
Media Group Ltd. (formerly  S&MI Ltd.) is British Pounds. Assets and liabilities are translated using period-end exchange
rates. Sales, costs and expenses are translated at the average exchange rates in effect during the reporting period. Foreign
currency translation gains and losses are included as a component of accumulated other comprehensive income (loss).

Cash
and Restricted Cash

As
of June 30, 2025 and December 31, 2024, cash was comprised of cash deposits. From time-to-time cash deposits with some banks may exceed
federally insured limits with the majority of cash held in one financial institution. Management believes all financial institutions
holding its cash are of high credit quality and does not believe the Company is subject to unusual credit risk beyond the normal credit
risk associated with commercial banking relationships.

The
Company had no marketable securities as of June 30, 2025 and December 31, 2024.

     F-8 

Accounts
Receivable

The
Company through its various merchant providers pre-authorizes forms