Company: LTRYW
Filing Date: 2025-05-14
Form Type: S-1/A
Source: 0001641172-25-010091
Chunk: 133

Company: Lottery.com Inc.
Filing Date: 2025-05-14
Form: S-1/A
Chunk 133
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 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, 2024, there were no material changes to our critical accounting policies
from those discussed in our Amended 2023 Annual Report. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).”
This guidance requires recognition of most lease liabilities on the balance sheet to give investors, lenders, and other financial statement
users a more comprehensive view of a company’s long-term financial obligations, as well as the assets it owns versus leases. ASU
2016-02 became effective for fiscal years beginning after December 15, 2021, and for interim periods within annual periods after December
15, 2022. In July 2018, the FASB issued ASU 2018-11 making transition requirements less burdensome. The standard provides an option to
apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in the
Company’s financial statements. We are currently evaluating the impact that this guidance will have on our financial statements
as well as the expected adoption method. The adoption of this standard will not have a material impact on our financial statements.

In June 2016, the FASB issued
ASU