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

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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teries,
including results, analysis, comparisons, tools, and regulatory context and driving revenue through a Cost-per-Acquisition (CPA) or
Revenue-Share model with third-party partners.

As
a provider of lottery products and services, the Company is required to comply with, and its business is subject to, regulation in
each jurisdiction in which the Company offers the B2C Platform. In addition, it must also comply with the requirements of federal
and other domestic and foreign regulatory bodies and governmental authorities in jurisdictions in which the Company operates or with
authority over its business. The Company’s business is additionally subject to multiple other domestic and international laws,
including those relating to the transmission of information, privacy, security, data retention, and other consumer focused laws,
and, as such, may be impacted by changes in the interpretation of such laws.

     F-5 

Note
2. Significant Accounting 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