Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 12

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 12
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 accounted for the October 29, 2021 Business Combination as a reverse
recapitalization whereby AutoLotto was determined as the accounting acquirer and Trident Acquisition Corp. (“TDAC”) as the
accounting acquiree. This determination was primarily based on:

| ● | former AutoLotto stockholders having the largest voting interest in Lottery.com Inc. (“Lottery.com”); |

| ● | the board of directors of Lottery.com having 7 members, and AutoLotto’s former stockholders having the ability to nominate the 
 majority of the members of the board of directors;                                                                             |

| ● | AutoLotto management continuing to hold executive management roles for the post-combination company and being responsible for the 
 day-to-day operations;                                                                                                            |

| ● | the post-combination company assuming the Lottery.com name; |

| ● | Lottery.com maintaining the pre-existing AutoLotto headquarters; and the intended strategy of Lottery.com being a continuation of 
 AutoLotto’s strategy.                                                                                                             |

Accordingly, the Business Combination was treated
as the equivalent of AutoLotto issuing stock for the net assets of TDAC, accompanied by a recapitalization. The net assets of TDAC are
stated at historical cost, with no goodwill or other intangible assets recorded.

While TDAC was the legal acquirer in the Business
Combination, because AutoLotto was determined as the accounting acquirer, the historical financial statements of AutoLotto became the
historical financial statements of the combined company, upon the consummation of the Business Combination. As a result, the financial
statements included in the accompanying consolidated financial statements reflect (i) the historical operating results of AutoLotto prior
to the Business Combination; (ii) the combined results of the Company and AutoLotto following the closing of the Business Combination;
(iii) the assets and liabilities of AutoLotto at their historical cost; and (iv) the Company’s equity structure for all periods
presented.

In connection with the Business Combination transaction,
we have converted the equity structure for the periods prior to the Business Combination to reflect the number of shares of the Company’s
common stock issued to AutoLotto’s stockholders in connection with the recapitalization transaction. As such, the shares, corresponding
capital amounts and earnings per share, as applicable, related to AutoLotto convertible preferred stock and common stock prior to the
Business Combination have been retroactively converted by applying the exchange ratio established in the Business Combination.