Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 79

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 nine months ended September 30, 2025, compared to net cash provided by operating
activities of $953,000 for the nine months ended September 30, 2024 which was an increase of $7,4 million year over year.

Net
cash used in investing activities during the nine months ended September 30, 2025 was $2.1 million vs net cash used by investing activities of $885,000 for the nine months ended September 30, 2024, an
increase of $1.2 million year over year, For both years, cash used in investing activities was related to acquisitions of subsidiaries and related intangible
assets.

Net
cash provided by financing activities was $8.8 million for the nine months ended September 30, 2025, compared to net cash used in
financing activities of $32,000 for the nine months ended September 30, 2024. The increase was the result of funding received under the stock purchase agreement and convertible notes. 

 15 

Emerging
Growth Company Accounting Election

Section
102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards
until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company
can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth
companies, and any such election to not take advantage of the extended transition period is irrevocable. We are an “emerging growth
company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits
of this extended transition period. We expect to remain an emerging growth company through the end of the 2026 fiscal year and we expect
to continue to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare
the financial results with the financial results of another public company that is either not an emerging 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