Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 14

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
 of the Business Combination; (iii) the assets and liabilities of AutoLotto at their historical cost; and (iv) the Company’s
equity structure for all periods presented.

In
connection with the Business Combination transaction, we have converted the equity structure for the periods prior to the Business Combination
to reflect the number of shares of the Company’s common stock issued to AutoLotto’s stockholders in connection with the recapitalization
transaction. As such, the shares, corresponding capital amounts and earnings per share, as applicable, related to AutoLotto convertible
preferred stock and common stock prior to the Business Combination have been retroactively converted by applying the exchange ratio established
in the Business Combination.

Non-controlling
Interest

Non-controlling
interest represents the proportionate ownership of Aganar and JuegaLotto, and DotCom Ventures, Inc. held by minority members and reflects
their capital investments as well as their proportionate interest in subsidiary losses and other changes in members’ equity, including
translation adjustments.

Segment
Reporting

Operating
segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly
by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. Under the provisions
of ASC 280, Segment Reporting, the Company is not organized around specific services or geographic regions. The Company is evaluating the impact of ASC 280 as it relates its expansion from operating exclusively as a gaming company to
also offering products and services in sports and entertainment and may provide Segment Reporting in future filings.

     F-7 

We
determined that our Chief Financial Officer is the Chief Operating Decision Maker, and he uses financial information, business prospects,
competitive factors, operating results and other non-U.S. GAAP financial ratios to evaluate our performance, which is the same basis
on which our results and performance are communicated to our Board of Directors. Based on the information described above and in accordance
with the applicable literature, management has concluded that we are organized and operated as one operating and reportable segment on
a consolidated basis for each of the periods presented.

Concentration
of Credit Risks

Financial
instruments that are potentially subject to concentrations of credit risk are primarily cash. Cash holdings are placed with major financial
institutions deemed to be of high-credit-quality in order to limit credit exposure. The Company maintains deposits and certificates of
deposit with banks which may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit and money market