Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 29

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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                           Awards                          Price         Life             Value      
  Outstanding                              1,011,737                       1,018,565      $                              $          
  Granted                                  -                               -                                                        
  Exercised                                -                               -                                                        
  Forfeited/cancelled                      -                               -                                                        
  Outstanding                              1,011,737                       1,018,565      $                              $          

Restricted
awards

The
Company awarded restricted stock to employees on October 28, 2021, which were granted with various vesting terms including immediate
vesting, service-based vesting, and performance-based vesting. In accordance with ASC 718, the Company has classified the restricted
stock as equity.

For
employee issuances, the measurement date is the date of grant, and the Company recognizes compensation expense for the grant of the restricted
shares over the service period for the restricted shares that vest over a period of multiple years and for performance-based vesting
awards, the Company recognizes the expense when management believes it is probable the performance condition will be achieved. As of
December 31, 2021, the Company had granted 191,622 shares with vesting to begin April 2022. For the year ended December 31, 2022, the
Company recognized $27,137,991 of stock compensation expense related to the employee restricted stock grants. As of March 31, 2025 and
December 31, 2024, unrecognized stock-based compensation associated with the restricted stock awards is $0.

The
Company had restricted stock activity summarized as follows:

                                                                    Weighted            
                                                                    Average             
                                         Number                     Grant               
                                         Shares                     Fair                
  Outstanding at December                            -              $             -     
  Granted                                            3,101,277                    1.40  
  Vested                                             3,101,277                    1.40  
  Forfeited/cancelled                                -                            -     
  Restricted                                         -              $             -     

  F-24  

Note 12. Income
Taxes

We
are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret
the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation
with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. The tax
returns, however, are subject to routine reviews by