Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 125

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 125
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 segment, the method for determining segments
or the criteria for aggregating operating segments into reportable segments. The amendments are effective for fiscal years beginning
after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Retrospective adoption is required
for all prior periods presented in the financial statements. The Company adopted the standard effective January 1, 2024. The
Company adopted the amendment effective January 1, 2024 for annual reporting purpose. The adoption did not have a material impact to
the Company’s financial statements or disclosures.

In
June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses
on Financial Instruments The adoption did not have a material impact to the Company’s financial statements
or disclosures.

Note
3. Business Combination

TDAC
Combination

On
October 29, 2021, the Company and AutoLotto consummated the transactions contemplated by the Merger Agreement. At the Closing, each share
of common stock and preferred stock of AutoLotto that was issued and outstanding immediately prior to the effective time of the Merger
(other than excluded shares as contemplated by the Merger Agreement) was cancelled and converted into the right to receive approximately
3.0058 shares (the “ Exchange Ratio”) of Lottery. com. common stock.

  F-16  

The
Merger closing was a triggering event for the Series B convertible notes, of which $63.8 million was converted into 164,426 shares of
AutoLotto that were then converted into 488,225 shares of Lottery. com common stock using the Exchange Ratio.

At
the Closing, each option to purchase AutoLotto’s common stock, whether vested or unvested, was assumed and converted into an option
to purchase a number of shares of Lottery. com common stock in the manner set forth in the Merger Agreement.

The
Company accounted for the Business Combination as a reverse recapitalization whereby AutoLotto was determined as the accounting acquirer
and TDAC as the accounting acquiree. Refer to Note 2, Summary of Significant Accounting Policies

The
accompanying consolidated financial statements and related notes reflect the historical results of AutoLotto prior to the merger and
do not include the historical results of TDAC prior to the consummation of Business Combination.

Upon
the closing of the