Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 8

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 and international jurisdictions
to purchase certain legally operated lottery games from the Company and resell them to users located within their respective jurisdictions
(“B2B API”); (iii) delivering global lottery data, such as winning numbers and results, and sports data, such as scores and
statistics, to commercial digital subscribers and provide access to other proprietary, anonymized transaction data pursuant to multi-year
contracts (“Data Service”); and (iv) transition Lottery.com into a high-authority, content-rich website that provides comprehensive
information about lotteries, including results, analysis, comparisons, tools, and regulatory context and drive revenue through a Cost-per-Acquisition
(CPA) or Revenue-Share model with third-party partners .

As
a provider of lottery products and services, the Company is required to comply with, and its business is subject to, regulation in each
jurisdiction in which the Company offers the B2C Platform, or a commercial partner offers users access to lottery games through the B2B
API. In addition, it must also comply with the requirements of federal and other domestic and foreign regulatory bodies and governmental
authorities in jurisdictions in which the Company operates or with authority over its business. The Company’s business is additionally
subject to multiple other domestic and international laws, including those relating to the transmission of information, privacy, security,
data retention, and other consumer focused laws, and, as such, may be impacted by changes in the interpretation of such laws.

     F-5 

Note
2. Significant Accounting Policies

Basis
of Presentation

The
accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the
United States of America (“GAAP”) and include the accounts of the Company and its wholly owned operating subsidiaries.
Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting
principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”)
of the Financial Accounting Standards Board (“FASB”). All intercompany accounts and transactions have been eliminated
in consolidation.

Going
Concern

The
accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity
of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying
consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classifications of