Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 13

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 assurance that the Company will be able to continue raising the required capital.

The
Company’s ability to continue as a going concern for the next twelve months from the issuance of these financial statements depends
on its ability to execute the business plan for the relaunch of its core business, launch additional international lottery operations,
and expand operations in Mexico and offerings of sweepstakes, as well as successful monetization of Sports.com, and keeping expenditures
in line with available operating capital. Such conditions raise substantial doubt about the Company’s ability to continue as a
going concern.

     F-6 

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
    AutoLotto stockholders having the largest voting interest in Lottery.com Inc. (“Lottery.com”);

    ●
    the
    board of directors of Lottery.com having 7 members, and AutoLotto’s former stockholders having the ability to nominate the
    majority of the members of the board of directors;

    ●
    AutoLotto
    management continuing to hold executive management roles for the post-combination company and being responsible for the day-to-day
    operations;

    ●
    the
    post-combination company assuming the Lottery.com name;

    ●
    Lottery.com
    maintaining the pre-existing AutoLotto headquarters; and the intended strategy of Lottery.com being a continuation of AutoLotto’s
    strategy.

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