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

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 of debt and convertible debt. Although Management believes that it will be able to continue to raise
funds by sale of its securities to provide the additional cash needed to meet the Company’s obligations as they become due
beginning with a loan agreement the Company entered into with United Capital Investments London Limited. (“UCIL”) on July
21, 2023, the Plans for Recommencement of Company Operations require substantial funds to implement and there is no assurance that
the Company will be able to continue raising the required capital.

The
Company’s ability to continue as a going concern for the next twelve months from the issuance of these financial statements depends
on its ability to execute the business plan for the relaunch of its core business, launch additional international lottery operations, and expand operations
in Mexico and offerings of sweepstake, as well as successful monetization of Sports.com, and keeping
expenditures in line with available operating capital. Such conditions raise substantial doubt about the Company’s ability to continue
as a going concern.

     F-6 

Impact
of Trident Acquisition Corp. Business Combination

We
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 AutoL