Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 100

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 Policies

Basis
of Presentation

The
accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the
United States of America (“GAAP”) and include the accounts of the Company and its majority owned and wholly owned
operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally
accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards
Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). All intercompany accounts
and transactions have been eliminated in consolidation.

Going
Concern

The
accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity
of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying
consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern.

Pursuant
to the requirements of the Financial Accounting Standards Board’s ASC Topic 205-40, Disclosure of Uncertainties about an Entity’s
Ability to Continue as a Going Concern, management must evaluate whether there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date these financial
statements are issued. This evaluation does not take into consideration the potential mitigating effect of management’s plans that
have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial
doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial
doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is
only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial
statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that
raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial
statements are issued.

In connection
with the Company’s Operational Cessation, the Company has experienced recurring net losses and negative cash flows from operations
and has an accumulated deficit of approximately $275.