Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 2

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 2
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 the Company resumed its ticket sales operations on a limited
basis to support its affiliate partners through its Texas retail network.

On
September 1, 2024, the Company completed the acquisition of S& MI Ltd. Finalizing this acquisition is the foundation for the monetization
of Sports. com. In 2024, the Company launched the Sport. com app providing users around the world with access to curated sports content.
Additionally, the Company partnered with BOXXER to stream two live championship boxing matches to sports fans in multiple African nations.

The
Company completed the acquisition of Spektrum Ltd from PlusEvo Ltd through a signed Share Purchase Agreement (SPA) on March 13, 2025.
This acquisition, valued at $1.5 million in common stock at $3 per share, supports Lottery. com’s strategic expansion and the development
of Lottery. com International. The acquisition provides the Company with a compliant platform to support lottery, sweepstakes and social
gaming operations in dozens of international jurisdictions.

  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 ASC ASU FASB

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 liabilities that might result if the Company is unable to continue as a going concern.

Pursuant
to the requirements of the Financial Accounting Standards Board’s ASC Topic 205-40, Disclosure of Uncertainties about an Entity’s
Ability to Continue as a Going Concern, management must evaluate whether there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date these financial
statements are issued. This evaluation does not take into consideration the potential mitigating effect of management’s plans that
have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial
doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial
doubt about