Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 168

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 168
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 2024. The increase was the result of funding received under the stock purchase agreement and convertible notes. 

 15 

Emerging
Growth Company Accounting Election

Section
102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards
until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company
can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth
companies, and any such election to not take advantage of the extended transition period is irrevocable. We are an “emerging growth
company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits
of this extended transition period. We expect to remain an emerging growth company through the end of the 2026 fiscal year and we expect
to continue to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare
the financial results with the financial results of another public company that is either not an emerging growth company or is an emerging
growth company that has chosen not to take advantage of the extended transition period exemptions for emerging growth companies because
of the potential differences in accounting standards used.

Critical
Accounting Policies and Estimates

Our
financial statements and the related notes thereto included elsewhere in this Report are prepared in accordance with U.S. Generally Accepted
Accounting Principles (GAAP). The preparation of financial statements requires management to make estimates and assumptions that affect
the reporting values of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenue and expenses during the reporting period. The more significant estimates and assumptions are those
used in determining the recoverability of long-lived assets. Accordingly, actual results could differ from those estimates. To the extent
that there are differences between our estimates and actual results, our future financial statement presentation, financial condition,
results of operations and cash flow will be affected.

Our
critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition
and Results of Operations— Critical Accounting Policies and Estimates” in the Annual Report and the notes to the audited
financial statements appearing elsewhere in the Annual Report. During the nine months ended September 30, 2025, there were no material
changes to our critical accounting policies