Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 22

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 22
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 in Generally Accepted Accounting Principles. ASU 2019-12 is effective for annual
reporting periods beginning after December 15, 2021, and early adoption is permitted. The Company is currently evaluating this new standard
and currently does not expect it to have a significant impact on the Company’s consolidated financial statements.

In October 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470) (“ASU 2020-09”). ASU 2020-09 amendments to SEC paragraphs pursuant to SEC release NO. 33-10762
amends terms related to Debt Guarantors and Issuers of Guaranteed Securities Registered or to be Registered with the SEC. The Company
is currently evaluating the timing of adoption and impact of the updated guidance on its financial statements.

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, for further details. 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.

The accompanying consolidated financial statements
and