Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 12

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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ing Pronouncements

In
January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and other (Topic 350)

In
June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses
on Financial Instruments

In
December 2019, the FASB issued ASU No 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ( )

In
October 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470) (“ ASU 2020-09”). ASU 2020-09

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
3.0058 shares (the “ Exchange Ratio”) of Lottery. com. common stock.

  F-13  

The
Merger closing was a triggering event for the Series B convertible notes, of which $63.8 million was converted into 164,426 shares of
AutoLotto that were then converted into 488,225 shares 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

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