Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 117

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 117
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 about the Company’s ability to continue
as a going concern.

  F-9  

Impact
of Trident Acquisition Corp. Business Combination

We
accounted for the October 29, 2021 Business Combination as a reverse recapitalization whereby AutoLotto was determined as the accounting
acquirer and Trident Acquisition Corp. (“ TDAC”) as the accounting acquiree. This determination was primarily based on:

  former                                                                                                                              
  the                                                                                                                                 
  AutoLotto                                                                                                                           
  the                                                                                                                                 
  Lottery.com                                                                                                                         

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.

While
TDAC was the legal acquirer in the Business Combination, because AutoLotto was determined as the accounting acquirer, the historical
financial statements of AutoLotto became the historical financial statements of the combined company, upon the consummation of the Business
Combination. As a result, the financial statements included in the accompanying consolidated financial statements reflect (i) the historical
operating results of AutoLotto prior to the Business Combination; (ii) the combined results of the Company and AutoLotto following the
closing of the Business Combination; (iii) the assets and liabilities of AutoLotto at their historical cost; and (iv) the Company’s
equity structure for all periods presented.

In
connection with the Business Combination transaction, we have converted the equity structure for the periods prior to the Business Combination
to reflect the number of shares of the Company’s common stock issued to AutoLotto’s stockholders in connection with the recapitalization
transaction. As such, the shares, corresponding capital amounts and earnings per share, as applicable, related to AutoLotto convertible
preferred stock and common stock prior to the Business Combination have been retroactively converted by applying the exchange ratio established
in the Business Combination.

Non-controlling
Interest

Non-controlling
interest represents the proportionate ownership of Aganar and JuegaLotto, held by minority members and reflect their capital investments
as well as their proportionate interest in subsidiary losses and other changes in members’ equity, including translation adjustments.

Segment
Reporting

Operating
segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly
by the chief operating decision maker in deciding how to allocate resources and in