Lottery(LTRY) - 2020 Q1 - Quarterly Report

Part I. Financial Information This section provides the company's financial statements, management's discussion, market risk disclosures, and controls Financial Statements This section presents the unaudited condensed consolidated financial statements for Trident Acquisitions Corp. for the quarter ended March 31, 2020 Condensed Consolidated Balance Sheets Total assets increased to $75.85 million as of March 31, 2020, primarily due to marketable securities in the Trust Account Condensed Consolidated Balance Sheet Highlights | Account | March 31, 2020 (unaudited) | December 31, 2019 | | :--- | :--- | :--- | | Assets | | | | Cash | $637,207 | $55,461 | | Marketable securities held in Trust Account | $75,139,111 | $74,376,617 | | Total Assets | $75,851,071 | $74,536,195 | | Liabilities & Equity | | | | Promissory notes – related party | $1,405,000 | $180,000 | | Total Liabilities | $7,365,239 | $6,050,058 | | Common stock subject to possible redemption | $63,485,828 | $63,486,129 | | Total Stockholders' Equity | $5,000,004 | $5,000,008 | Condensed Consolidated Statements of Operations The company reported a net loss of $305 for Q1 2020, a significant shift from net income in Q1 2019 due to lower interest income Condensed Consolidated Statements of Operations (Unaudited) | Account | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Operating costs | $262,564 | $226,217 | | Loss from operations | ($262,564) | ($226,217) | | Interest income | $262,479 | $1,232,149 | | Net (loss) income | ($305) | $794,815 | | Basic and diluted net loss per common share | ($0.03) | ($0.02) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities was $143,239 for Q1 2020, with a net increase in cash of $581,746 from financing activities Condensed Consolidated Statements of Cash Flows (Unaudited) | Activity | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | ($143,239) | ($269,249) | | Net cash (used in) provided by investing activities | ($500,015) | $119,125 | | Net cash provided by financing activities | $1,225,000 | $0 | | Net Change in Cash | $581,746 | ($150,124) | | Cash – Ending | $637,207 | $1,105,693 | Notes to Unaudited Condensed Consolidated Financial Statements The notes detail the company's status as a blank check company, extension of the combination period, and related-party transactions - The Company is a blank check company formed to effect a business combination and had not commenced operations as of March 31, 2020[25][26] - The deadline to complete a Business Combination was extended to June 1, 2020, after the Company contributed an aggregate of $1,000,000 to the Trust Account for two 90-day extensions[40] - In connection with the deadline extension, stockholders redeemed 13,081,434 shares, resulting in a withdrawal of approximately $137.1 million from the Trust Account[41] - As of March 31, 2020, the company had outstanding promissory notes from related parties totaling $1,405,000 to fund working capital and transaction expenses[88] - The underwriter is entitled to a deferred fee of $5,031,250, payable in cash from the Trust Account upon the closing of a Business Combination[94] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's status as a blank check company, recent deadline extension, and financial performance for Q1 2020 - The deadline to complete a Business Combination was extended to June 1, 2020, following stockholder approval and cash contributions to the Trust Account[112][113] - Stockholders redeemed 13,081,434 shares for approximately $137.1 million, reducing the number of outstanding shares to 13,224,816[114] Q1 2020 vs Q1 2019 Results | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net (Loss) Income | ($305) | $794,815 | | Interest Income | $262,479 | $1,232,149 | | Operating Costs | $262,564 | $226,217 | - As of March 31, 2020, the company had $75.1 million in marketable securities in the Trust Account and $637,207 in cash held outside the Trust Account for operational use[119][124] - The company secured non-interest bearing loans from related parties totaling $1,405,000 to fund working capital and transaction expenses[125][126] Quantitative and Qualitative Disclosures About Market Risk The company states it has minimal exposure to interest rate risk due to its low-risk investments in U.S. government securities - The company believes there is no material exposure to interest rate risk due to the short-term nature of its investments in U.S. government securities[138] Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2020 - Based on an evaluation as of March 31, 2020, the principal executive and financial officers concluded that the company's disclosure controls and procedures were effective[140] - There were no changes in internal control over financial reporting during the first quarter of 2020 that materially affected, or are reasonably likely to materially affect, internal controls[141] Part II. Other Information This section covers legal proceedings, risk factors, unregistered sales of equity securities, and exhibits Legal Proceedings The company reported no legal proceedings - None[144] Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - As of the date of this report, there have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2019[145] Unregistered Sales of Equity Securities and Use of Proceeds This section details the use of proceeds from the company's Initial Public Offering (IPO) and private unit sales - The Initial Public Offering, including the full exercise of the over-allotment option, generated total gross proceeds of $201,250,000[147] - Total net proceeds from the IPO and private unit sales were approximately $206.7 million, of which $205.3 million was placed in the Trust Account[151] - As of March 31, 2020, cash held outside the Trust Account was $637,207, and funds in the Trust Account are invested in U.S. government treasury obligations[151] Exhibits This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q Filed Exhibits | No. | Description of Exhibit | | :--- | :--- | | 31.1 | Certification of Principal Executive Officer (SOX 302) | | 31.2 | Certification of Principal Financial Officer (SOX 302) | | 32.1 | Certification of Principal Executive Officer (SOX 906) | | 32.2 | Certification of Principal Financial Officer (SOX 906) | | 101 | XBRL Instance Document and related files |