Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 307

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 307
---
 Other expense 
     (88,605) 
     8,684  
     (97,289) 
     -1,120%
  
    Total other expenses, net 
     (148,724) 
     232,715  
     (381,439) 
     -164%

Interest Expense (Income).
Interest income for the six months ended June 30, 2025 was $60,000 vs interest expense of $224,000 for the six months ended June 30, 2024,
a decrease of $284,000 or 127%. Interest accrual for convertible debt was lower for the six months ended June 30, 2025 due to lower balances
for convertible debt as a result of conversions to equity. Additionally, an accrual for $196,000 was recorded in the three months ended
March 31, 2025 for accrued interest income on a note receivable.

Other
Expense. Other income was $89,000 for the six months ended June 30, 2025 vs. $9,000 of other expense for the six months ended June
30, 2024.

Liquidity
and Capital Resources

Prior
to the Operational Cessation, our primary need for liquidity was to fund working capital requirements of our business, growth, capital
expenditures and for general corporate purposes. Our primary source of liquidity had historically been funds generated by financing activities.
Upon the Closing of the business combination on October 29, 2021, we received net proceeds of approximately $42.8 million in cash.

Following
the Operational Cessation, our primary need for liquidity has been to fund the restart of our business operations, re-hire employees
and pay our expenses. The most likely source of such future funding presently available to us is through additional borrowings under
loan agreements or through the issuance of equity or debt securities. If lenders do not advance us amounts as agreed under loan agreements
or we are otherwise not able to secure the necessary capital to restart our operations, hire new employees, and obtain funding sufficient
to support and restart our operations, we may be forced to permanently cease our operations, sell off our assets and operations, and/or
seek bankruptcy protection, which could cause the value of our securities to become worthless.

These
conditions, along with our current lack of material revenue producing activities, and significant debt, raise substantial doubt about
our ability to continue as a going concern for the next