Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 44

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 44
---
 income in the years in which those temporary differences and carry-forwards are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period
that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected
to be realized.

Note 13. Commitments and Contingencies

Indemnification Agreements

The Company enters into indemnification
provisions under its agreements with other entities in its ordinary course of business, typically with business partners, customers, landlords,
lenders and lessors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered
or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s
activities under the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification
provisions is unlimited. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification
agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no
liabilities recorded for these agreements as of March 31, 2025 and December 31, 2024.

Digital Securities

In 2018, the Company commenced a sale offering
and issuance (the “LDC Offering”) of 285 million revenue participation interests (the “Digital Securities”) of
the net raffle revenue of LDC Crypto Universal Public Company Limited (“LDC”). The Digital Securities do not have any voting
rights, redemption rights, or liquidation rights, nor are they tied in any way to other equity securities of LDC or the Company nor do
they otherwise hold any rights that a holder of equity securities of LDC or the Company may have or that a holder of traditional equity
securities or capital stock may have. Rather, each of the holders of the Digital Securities has a pro rata right to receive 7% of the
net raffle revenue. If the net raffle revenue is zero for a given period, holders of the Digital Securities are not eligible to receive
any cash distributions from any raffle sweepstakes of LDC for such period. For the years ended December 31, 2024 and December 31, 2023,
the company did not incur any obligations to the holders of the outstanding Digital Securities. For