Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 40

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---
,737  
     1,018,565  
    $2.00  
     3.1  
    $944,544 

Restricted
awards

The
Company awards restricted stock to employees, directors, and certain outside consultants from time to time which are 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
such 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 time 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 June 30, 2025
and December 31, 2024, unrecognized stock-based compensation associated with the restricted stock awards is $0 and $0 respectively.

The
Company had restricted stock activity summarized as follows:

Schedule
of Restricted Stock Awards Activity 

    Weighted 

    Average 

    Number of  
    Grant 

    Shares  
    Fair Value 
  
    Outstanding at December 31, 2024 
     -  
    $- 
  
    Granted 
     3,101,277  
     1.40 
  
    Vested 
     3,101,277  
     1.40 
  
    Forfeited/cancelled 
     -  
     - 
  
    Restricted shares unvested at June 30, 2025 
     -  
     - 
  
    Granted ** 
     3,101,277  
     1.40 
  
    Vested ** 
     2,669,932  
     1.05 
  
    Forfeited/cancelled 
     -  

    Restricted shares unvested at June 30, 2025 
     -  
    $- 

**Of the shares granted
during the quarter ending June 30, 2025 approximately 1.75M shares were granted in lieu of making cash payments to satisfy accrued liabilities
and approximately 900K shares were issued to compensate for consulting services incurred during the quarter.

     F-23 

Note
12. Income Taxes

We
are required