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

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 10
---
 to stream two live championship boxing matches to sports fans in multiple African nations.

The Company completed the acquisition of Spektrum Ltd from PlusEvo Ltd
through a signed Share Purchase Agreement (SPA) on March 13, 2025. This acquisition, valued at $1.5 million in common stock at $3 per
share, supports Lottery.com’s strategic expansion and the development of Lottery.com International. The acquisition provides the
Company with a compliant platform to support lottery, sweepstakes and social gaming operations in dozens of international jurisdictions.

| F-5 |

Note 2. Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”)
and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance
is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification
(“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”).
All intercompany accounts and transactions have been eliminated in consolidation.

Going Concern

The accompanying consolidated financial statements
have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and classification
of liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any
adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities
that might result if the Company is unable to continue as a going concern.

Pursuant to the requirements of the Financial
Accounting Standards Board’s ASC Topic 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going
Concern, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about
the Company’s ability to continue as a going concern for one year from the date these financial statements are issued. This evaluation
does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented or are
not within control of the Company as of the date the financial statements are issued. When substantial doubt exists under this methodology,
management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability
to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable
that the