Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 21

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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-09, Debt (Topic 470) (“ASU 2020-09”). ASU 2020-09 amendments to SEC paragraphs
pursuant to SEC release NO. 33-10762 amends terms related to Debt Guarantors and Issuers of Guaranteed Securities Registered or to be
Registered with the SEC. The Company is currently evaluating the timing of adoption and impact of the updated guidance on its financial
statements.

In November 2023, the FASB issued ASU
2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to enhance the reportable segment disclosures.
The guidance will require additional disclosures about significant segment expenses. The guidance is effective for the public companies
with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early
adoption permitted. The Company is currently evaluating the impact of this standard.

Note
3. Business Combination

TDAC
Combination

On
October 29, 2021, the Company and AutoLotto consummated the transactions contemplated by the Merger Agreement. At the Closing, each share
of common stock and preferred stock of AutoLotto that was issued and outstanding immediately prior to the effective time of the Merger
(other than excluded shares as contemplated by the Merger Agreement) was cancelled and converted into the right to receive approximately
3.0058 shares (the “Exchange Ratio”) of Lottery.com. common stock.

     F-13 

The
Merger closing was a triggering event for the Series B convertible notes, of which $63.8 million was converted into 164,426 shares of
AutoLotto that were then converted into 488,225 shares of Lottery.com common stock using the Exchange Ratio.

At
the Closing, each option to purchase AutoLotto’s common stock, whether vested or unvested, was assumed and converted into an option
to purchase a number of shares of Lottery.com common stock in the manner set forth in the Merger Agreement.

The
Company accounted for the Business Combination as a reverse recapitalization whereby AutoLotto was determined as the accounting acquirer
and TDAC as the accounting acquiree. Refer to Note 2, Summary of Significant Accounting Policies, for further details. Accordingly,
the Business Combination was treated as the equivalent of AutoLotto issuing stock for the net assets of TDAC, accompanied by a recapitalization.
The net assets