Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 17

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 17
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intangibles for impairment on an annual basis or whenever events or circumstances indicate that an impairment may have occurred in accordance
with the provisions of ASC 350, “Goodwill and Other Intangible Assets”.

Revenue Recognition

Under the new standard, Accounting Standards Update
(“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”, the Company recognizes revenues when
the following criteria are met: (i) persuasive evidence of a contract with a customer exists; (ii) identifiable performance obligations
under the contract exist; (iii) the transaction price is determinable for each performance obligation; (iv) the transaction price is allocated
to each performance obligation; and (v) when the performance obligations are satisfied. Revenues are recognized when control of the promised
goods or services is transferred to the customers in an amount that reflects the consideration expected to be entitled to in exchange
for those goods or services.

Lottery game revenue

Items that fall under this revenue classification include:

Lottery game sales

The Company’s performance obligations
of delivering lottery games are satisfied at the time in which the digital representation of the lottery game is delivered to the user
of the B2C Platform or the commercial partner of the B2B API, therefore, are recognized at a point in time. The Company receives consideration
for lottery game sales at the time of delivery to the customer, which may be the user or commercial partner, as applicable. There is no
variable consideration related to lottery game sales. As each individual lottery game delivered represents a distinct performance obligation
and consideration for each game sale is fixed, representing the standalone selling price, there is no allocation of consideration necessary.

In accordance with Accounting Standards Codification
(“ASC”) 606, the Company evaluates the presentation of revenue on a gross versus net basis dependent on if the Company is
a principal or agent. In making this evaluation, some of the factors that are considered include whether the Company has control over
the specified good or services before they are transferred to the customer. The Company also assesses if it is primarily responsible for
fulfilling the promise to provide the goods or services, has inventory risk, and has discretion in establishing the price. For all of
the Company’s transactions, management concluded that gross presentation is appropriate, as the Company is primarily responsible
for providing the performance obligation directly to the customers and assumes fulfillment risk of all lottery game sales as it retains
physical possession of lottery game sales tickets from time of sale until the