Company: LTRYW
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001641172-25-005663
Chunk: 133

Company: Lottery.com Inc.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 133
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2024, compared to net cash used by operating activities of $2.1 million for the year
ended December 31, 2023. Factors affecting changes in operating cash flows were stock-based compensation expense along with decreased
expenses for personnel costs, and sales and marketing activities in 2024 as compared to 2023. Net cash used in investing activities during
the year ended December 31, 2024 was $1.5 million, compared to $0 for the prior year. Net cash provided by financing activities was $2.88
million for the year ended December 31, 2024, compared to $2.27 million used by financing activities for the year ended December 31, 2023.
The increase was due to funding received under convertible debt arrangements in 2024.

Changes in or Adoption of Accounting Practices

The following U.S. GAAP standards have been recently issued by the Financial Accounting Standards Board (the “FASB”). We are in the process of assessing the impact of these new standards on future consolidated financial statements. Pronouncements that are not applicable or where it has been determined do not have a significant impact on the Company have been excluded herein.

ASC 606, Revenue from Contracts with Customers

Between May 2014 and December 2016, the FASB issued several Accounting Standards Updates (“ASUs”)’s on ASC 606, which updates superseded nearly all previous revenue recognition guidance under U.S. GAAP. The core principle is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. A five-step process has been defined to achieve this core principle, and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standards are effective for annual periods beginning after December 15, 2017 using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standards in each prior reporting period with the option to elect certain practical expedients; or (ii) a retrospective approach with the cumulative effect of initially adopting the standards recognized at the date of adoption (which includes additional footnote disclosures). The Company adopted these standards effective on January 1, 2018, and management concluded the adoption of this standard did not result in any financial statement impacts or changes to revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of