Company: LTRYW
Filing Date: 2025-04-25
Form Type: S-1/A
Source: 0001641172-25-006093
Chunk: 205

Company: Lottery.com Inc.
Filing Date: 2025-04-25
Form: S-1/A
Chunk 205
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13 is effective for annual reporting periods beginning after December 15, 2022, and early adoption is permitted. The Company adopted the standard effective January 1, 2023. The adoption did not have a material impact to the Company’s financial statements or disclosures.

Note 3. Business Combination

TDAC Combination

On October 29, 2021, the Company and AutoLotto consummated the transactions contemplated by the Merger Agreement. At the Closing, each share of common stock and preferred stock of AutoLotto that was issued and outstanding immediately prior to the effective time of the Merger (other than excluded shares as contemplated by the Merger Agreement) was cancelled and converted into the right to receive approximately 3.0058shares (the “Exchange Ratio”) of Lottery.com. common stock.

| F-16 |

The Merger closing was a triggering event for the Series B convertible notes, of which $ 63.8million was converted into 164,426shares of AutoLotto that were then converted into 488,225shares of Lottery.com common stock using the Exchange Ratio.

At the Closing, each option to purchase AutoLotto’s common stock, whether vested or unvested, was assumed and converted into an option to purchase a number of shares of Lottery.com common stock in the manner set forth in the Merger Agreement.

The Company accounted for the Business Combination as a reverse recapitalization whereby AutoLotto was determined as the accounting acquirer and TDAC as the accounting acquiree. Refer to Note 2, Summary of Significant Accounting Policies, for further details. Accordingly, the Business Combination was treated as the equivalent of AutoLotto issuing stock for the net assets of TDAC, accompanied by a recapitalization. The net assets of TDAC are stated at historical cost, with no goodwill or other intangible assets recorded.

The accompanying consolidated financial statements and related notes reflect the historical results of AutoLotto prior to the merger and do not include the historical results of TDAC prior to the consummation of Business Combination.

Upon the closing of the transaction, AutoLotto received total gross proceeds of approximately $ 42,794,000, from TDAC’s trust and operating accounts. Total transaction costs were approximately $ 9,460,000, which principally consisted of advisory, legal and other professional fees and were recorded in additional paid in capital. Cumulative debt repayments of approximately $ 11,068,000, inclusive of accrued but unpaid interest, were paid in conjunction with the