Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 136

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 136
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, 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 became effective for all public companies for interim and annual periods beginning
after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. In October 2019,
the FASB approved a proposal which grants smaller reporting companies additional time to implement FASB standards on current expected
credit losses (CECL) to January 2023. As a smaller reporting company, we deferred adoption of ASU No. 2016-13 until January 2023. We
are currently evaluating the impact this guidance will have on our condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

As a “smaller reporting
company” as defined by Rule 10(f)(1) of Regulation S-K, the Company is not required to provide this information.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As previously disclosed,
in connection with the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “Original
2021 Annual Report”) on April 1, 2022, our management, with the participation of our then Chief Executive Officer and Chief Financial
Officer, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act) as of December 31, 2021. Based on their evaluation, our then Chief Executive Officer and Chief Financial Officer
concluded that, as of December 31, 2021, our disclosure controls and procedures were not effective due to material weaknesses in our
internal control over financial reporting with respect to our financial statement close and reporting process.

In connection with the filing
of Amendment No. 1 to the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2021 (the “Amended 2021
Annual Report”), our new management, with the participation of our Chief Executive Officer, reevaluated the effectiveness of our
disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December