Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 45

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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has classified the restricted stock as equity.

For
such issuances, the measurement date is the date of grant, and the Company recognizes compensation expense for the grant of the restricted
shares, over the service period for the restricted shares that vest over a period of time and for performance-based vesting awards, the
Company recognizes the expense when management believes it is probable the performance condition will be achieved. As of September 30,
2025 and December 31, 2024, unrecognized stock-based compensation associated with the restricted stock awards is $0 and $0 respectively.

The
Company had restricted stock activity summarized as follows:

Schedule
of Restricted Stock Awards Activity 

    Weighted 

    Average 

    Number of  
    Grant 

    Shares  
    Fair Value 
  
    Outstanding at December 31, 2024 
     310,128  
     1.40 
  
    Granted 
     -  
     - 
  
    Vested 
     -  
     - 
  
    Forfeited/cancelled 
     43,285  

    Restricted shares unvested at September 30, 2025 
     266,693  
    $1.05 

     F-23 

Note
12. Income Taxes

We
are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret
the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation
with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. The tax
returns, however, are subject to routine reviews by the various federal and state taxing authorities in the jurisdictions in which we
file tax returns. As part of these reviews, a taxing authority may disagree with respect to the income tax positions taken by us (“uncertain
tax positions”) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue
an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of
the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method.
Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to
differences between the financial statement carrying amounts of existing assets