Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 258

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part II, Item 8
Chunk 258
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 from those discussed in our Amended 2024 Annual Report.

In
February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This guidance requires recognition of most lease liabilities
on the balance sheet to give investors, lenders, and other financial statement users a more comprehensive view of a company’s long-term
financial obligations, as well as the assets it owns versus leases. ASU 2016-02 will be effective for fiscal years beginning after December
15, 2021, and for interim periods within annual periods after December 15, 2022. In July 2018, the FASB issued ASU 2018-11 making transition
requirements less burdensome. The standard provides an option to apply the transition provisions of the new standard at its adoption
date instead of at the earliest comparative period presented in the Company’s financial statements. The adoption of this standard
did 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 is 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.

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