Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 310

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 310
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 the Annual Report and the notes to the audited financial
statements appearing elsewhere in the Annual Report. During the six months ended June 30, 2025, there were no material changes to our
critical accounting policies from those discussed in our Amended 2024 Annual Report. In February 2016, the FASB issued ASU 2016-02, “Leases
(Topic 842).” This guidance requires recognition of most lease liabilities on the balance sheet to give investors, lenders, and
other financial statement users a more comprehensive view of a company’s long-term financial obligations, as well as the assets
it owns versus leases. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2021, and for interim periods within
annual periods after December 15, 2022. In July 2018, the FASB issued ASU 2018-11 making transition requirements less burdensome. The
standard provides an option to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative
period presented in the Company’s financial statements. We are currently evaluating the impact that this guidance will have on
our financial statements as well as the expected adoption method. The adoption of this standard did not have a material impact on our
financial statements.

In
June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial
Instruments”, as additional guidance on the measurement of credit losses on financial instruments. The new guidance requires the
measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions
and reasonable supportable forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities
and purchased financial assets with credit deterioration. The new guidance is effective for all public companies for interim and annual
periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15,
2018. In October 2019, the FASB approved a proposal which grants smaller reporting companies additional time to implement FASB standards
on current expected credit losses (CECL) to January 2023. As a smaller reporting company, we will defer adoption of ASU No. 2016-13 until
January 2023. We are currently evaluating the impact this guidance will have on