Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 21

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 21
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 and estimates
about the expected life of options and warrants, anticipated forfeitures, the risk-free rate, and the volatility of the Company’s
share price. In making these assumptions and estimates, management relies on historical market data.

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU No.
2017-04, Intangibles - Goodwill and other (Topic 350) (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill
impairment and removes Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s
carrying value exceeds its fair value limited to the total amount of goodwill allocated to that reporting unit. Entities will continue
to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step
impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. The amendments
in this ASU are effective for goodwill impairment tests in fiscal years beginning after December 15, 2021, and early adoption is permitted.
The Company is currently evaluating this new standard and management does not currently believe it will have a material impact on its
consolidated financial statements, depending on the outcome of future goodwill impairment tests.

In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments(“ASU 2016-13”).
ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical
experience, current conditions, and reasonable and supportable forecasts. Adoption of ASU 2016-13 will require the Company to use forward-looking
information to formulate its credit loss estimates. ASU 2016-13 is effective for annual reporting periods beginning after December 15,
2022, and early adoption is permitted. The Company is currently evaluating this new standard and currently does not expect it to have
a significant impact on the Company’s consolidated financial statements.

In December 2019, the FASB issued ASU No
2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU2019-12”). ASU 2019-12 removes
certain exceptions to the general principles in Topic 740