Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 170

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 170
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 convertible debt was converted into equity of AutoLotto.

As
of June 30, 2025, we had $1,925,242 of convertible debt outstanding. A portion of this debt has matured and is theoretically in default.

See
“-Recent Developments- Loan Agreement with Woodford” and “Loan Agreement with United Capital Investments
London Limited” above for additional information.

Cash
Flows

Net
cash used in operating activities was $1.4 million for the three months ended June 30, 2025, compared to net cash used in operating activities
of $1.4 million for the three months ended June 30, 2024.

Net
cash used in investing activities during the three months ended June 30, 2025 was $0, which was the same as for the prior year.

Net
cash provided by financing activities was $965,000 for the three months ended June 30, 2025, compared to net cash provided of
$965,000 for the three months ended June 30, 2024, which was $320 thousand lower year over year.

15

Emerging
Growth Company Accounting Election

Section
102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards
until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company
can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth
companies, and any such election to not take advantage of the extended transition period is irrevocable. We are an “emerging growth
company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits
of this extended transition period. We expect to remain an emerging growth company through the end of the 2026 fiscal year and we expect
to continue to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare
the financial results with the financial results of another public company that is either not an emerging growth company or is an emerging
growth company that has chosen not to take advantage of the extended transition period exemptions for emerging growth companies because
of the potential differences in accounting standards used.

Critical
Accounting Policies and Estimates

Our
financial statements and the related notes thereto included elsewhere in this Report are