Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 112

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 112
---
 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. 

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 in Generally Accepted Accounting Principles. ASU 2019-12
is effective for annual reporting periods beginning after December 15, 2021, and early adoption is permitted. 

In
October 2020, the FASB issued ASU No. 2020-09, Debt (Topic 470) (“ASU 2020-09”). ASU 2020-09 amendments to SEC paragraphs
pursuant to SEC release NO. 33-10762 amends terms related to Debt Guarantors and Issuers of Guaranteed Securities Registered or to be
Registered with the SEC. 

In
November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to enhance
the reportable segment disclosures. The guidance will require additional disclosures about significant segment expenses. The guidance
is effective for the public companies with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning
after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of this standard.

Note
3. Business Combination and Acquisitions

TDAC
Combination

On
October 29, 2021, the Company and AutoLotto consummated the transactions contemplated by the Merger Agreement. At the Closing, each share
of common stock and preferred stock of AutoLotto that was issued and outstanding immediately prior to the effective time of the Merger
(other than excluded shares as contemplated by the Merger Agreement) was cancelled and converted into the right to receive approximately
3.0058 shares (the “Exchange Ratio”) of Lottery.com. common stock.

     F-13 

The
Merger closing was a triggering