Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 305

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 2
Chunk 305
---
 liabilities at the date of the financial statements,
and the reported amounts of revenue and expenses during the reporting period. The more significant estimates and assumptions are those
used in determining the recoverability of long-lived assets. Accordingly, actual results could differ from those estimates. To the extent
that there are differences between our estimates and actual results, our future financial statement presentation, financial condition,
results of operations and cash flow will be affected.

Our
critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition
and Results of Operations— Critical Accounting Policies and Estimates” in the Annual Report and the notes to the audited
financial statements appearing elsewhere in the Annual Report. During the nine months ended September 30, 2025, there were no material
changes to our critical accounting policies from those discussed in our Amended 2024 Annual Report.

In
February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This guidance requires recognition of most lease liabilities
on the balance sheet to give investors, lenders, and other financial statement users a more comprehensive view of a company’s long-term
financial obligations, as well as the assets it owns versus leases. ASU 2016-02 will be effective for fiscal years beginning after December
15, 2021, and for interim periods within annual periods after December 15, 2022. In July 2018, the FASB issued ASU 2018-11 making transition
requirements less burdensome. The standard provides an option to apply the transition provisions of the new standard at its adoption
date instead of at the earliest comparative period presented in the Company’s financial statements. The adoption of this standard
did not have a material impact on our financial statements.

In
June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial
Instruments”, as additional guidance on the measurement of credit losses on financial instruments. The new guidance requires the
measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions
and reasonable supportable forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities
and purchased financial assets with credit deterioration. The new guidance is effective for all public companies for interim and annual
periods beginning after December 15, 2019, with early adoption permitted for