Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 112

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 112
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 31, 2024, the prepaid asset remains substantially unutilized, with only
30% amortized through the income statement to date. The remaining balance continues to be carried as a prepaid asset.

Auditing
this balance was especially challenging due to the nature of the transaction (a non-cash exchange), the long duration of inactivity,
and the lack of direct confirmation from the third-party vendors. While the Company provided internal documentations, including historical
agreements, email correspondences, and written representations from management, the audit team exercised significant judgment in evaluating
the recoverability of the asset and whether sufficient appropriate audit evidence existed to support its continued recognition.

Our
procedures included, among others:

We
obtained and reviewed the original transactions documentation and correspondence between the parties,

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Intangible
assets

As
discussed in Note 4 to the financial statements, the company recognized Goodwill, Trade Name, Customers Relationship and Developed Technology
assets related to the acquisition of a subsidiary S& MI Ltd, through a share purchase agreement, and became a wholly owned subsidiary
of Lottery. com Inc. Determination of the cost of the intangible assets and goodwill, the method as well as the rate of the amortization
requires the use of significant judgement and estimates. An independent third-party valuation firm was utilized and worked with management
to evaluate key components and significant data inputs which were utilized in performing the analysis. The valuation firm also provided
guidance to Management about best practices with respect to useful lives of various types of intangible assets.

The
primary procedures we performed to address this critical audit matter included:

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/S/
Boladale Lawal

BOLADALE
LAWAL & CO.

(Chartered
Accountants)

(PCAOB
ID 6993)

Lagos,
Nigeria

We
have served as the Company’s auditor since 2024.

April
21, 2025

  F-3  

LOTTERY. COM
INC.

LOTTERY. COM,
INC. CONSOLIDATED BALANCE SHEETS

                                                                                                                                                                                  December 31,                        December 31,                    
                                                                                                                                                                                  2024                                2023                            
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