Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 13

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 13
---
Non-controlling Interest

Non-controlling interest represents the proportionate
ownership of Aganar and JuegaLotto, held by minority members and reflect their capital investments as well as their proportionate interest
in subsidiary losses and other changes in members’ equity, including translation adjustments.

Segment Reporting

Operating segments are defined as components of an
enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing operating performance. Under the provisions of ASC 280, Segment Reporting, the Company
is not organized around specific services or geographic regions. The Company operates in one service line, providing lottery products
and services.

| F-7 |

We determined that our Chief Financial Officer is
the Chief Operating Decision Maker, and he uses financial information, business prospects, competitive factors, operating results and
other non-U.S. GAAP financial ratios to evaluate our performance, which is the same basis on which our results and performance are communicated
to our Board of Directors. Based on the information described above and in accordance with the applicable literature, management has concluded
that we are organized and operated as one operating and reportable segment on a consolidated basis for each of the periods presented.

Concentration of Credit Risks

Financial instruments that are
potentially subject to concentrations of credit risk are primarily cash. Cash holdings are placed with major financial institutions
deemed to be of high-credit-quality in order to limit credit exposure. The Company maintains deposits and certificates of deposit
with banks which may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit and money market accounts
which are not FDIC insured. In addition, deposits aggregating approximately $33,601
on May 16, 2025 are held in foreign banks. Management believes the risk of loss in connection with these accounts is minimal.

Use of Estimates

The preparation of the financial statements requires
management to make estimates and assumptions to determine the reported amounts of assets, liabilities, revenue and expenses. Although
management believes these estimates are reasonable, actual results could differ from these estimates. The Company evaluates its estimates
on an ongoing basis and prepares its estimates on historical experience and other assumptions the Company believes to be reasonable under
the circumstances.

Reclassifications

Certain balances have been reclassified in the accompanying
consolidated financial statements to conform to the current year presentation. These reclassifications had no effect on the balances of
current or total assets and prior year’s net loss or accumulated deficit.