Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 5

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 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 assessing operating performance. Under the provisions
of ASC 280, Segment Reporting, the Company is not organized around specific services or geographic regions. The Company operates in one
service line, providing lottery products and services.

  F-7  

We
determined that our Chief Financial Officer is the Chief Operating Decision Maker, and he uses financial information, business prospects,
competitive factors, operating results and other non-U. S. GAAP financial ratios to evaluate our performance, which is the same basis
on which our results and performance are communicated to our Board of Directors. Based on the information described above and in accordance
with the applicable literature, management has concluded that we are organized and operated as one operating and reportable segment on
a consolidated basis for each of the periods presented.

Concentration
of Credit Risks

Financial
instruments that are potentially subject to concentrations of credit risk are 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 $33,601 on May 16, 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