Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 14

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 14
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Foreign currency translation

Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than
U.S. Dollars are translated into U.S. dollars using period end exchange rates. Global Gaming operates in Mexican Pesos and the base currency
for S&MI Ltd. is British Pounds. Sales,
costs and expenses are translated at the average exchange rates in effect during the reporting period. Foreign currency translation gains and losses
are included as a component of accumulated other comprehensive income (loss).

Cash and Restricted Cash

As of March 31, 2025 and December 31, 2024, cash was
comprised of cash deposits. From time-to-time cash deposits with some banks may exceed federally insured limits with the majority of cash
held in one financial institution. Management believes all financial institutions holding its cash are of high credit quality and does
not believe the Company is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

The Company had no marketable securities as of March 31, 2025 and December
31, 2024.

| F-8 |

Accounts Receivable

The Company through its various
merchant providers pre-authorizes forms of payment prior to the sale of digital representation of lottery games to minimize exposure
to losses related to uncollected payments and does not extend credit to the user of the B2C Platform or the commercial partner of
the B2B API, which are its customers, in the normal course of business. The Company estimates its bad debt exposure each period and
records a bad debt provision for accounts receivable it believes it may not collect in full. In the fall of 2024, the Company
completed a project whereby certain older items in accounts receivable for the TinBu subsidiary were offset against the allowance
for uncollectible receivables, resulting in a reduction in the number of individual items in accounts receivable which were aged
greater than 90 days and the total amount for them. At the completion of this project, the balance in the allowance for
uncollectible receivables was $22,016.
At the end of 2024 the Company increased the allowance for uncollectible receivables by $10,984.
At December 31, 2024 the allowance for uncollectible receivables was $33,000
whereas, before the project described above, it was $94,270
at December 31, 2023. The Company did not increase in its allowance