Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 155

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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 be forced to discontinue its operations and liquidate. These matters, when considered in the aggregate,
raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time, which is defined
as within one year after the date that the financial statements are issued. The accompanying financial statements do not contain any
adjustments to reflect the possible future effects on the classification of assets or the amounts and classification of liabilities that
might result from the outcome of this uncertainty.

 8 

Components
of Our Results of Operations

Our
Revenue

Revenue
from B2C Platform [when operational]. Our revenue is the retail value of the acquired lottery game and the service fee charged to
the user, which we impose on each lottery game purchased from our B2C Platform. The amount of the service fee is based upon several factors,
including the retail value of the lottery game purchased by a user, the number of lottery games purchased by a user, and whether such
user is located within the U.S. or internationally. Currently, in the U.S, the minimum service fee is $0.50 for the purchase of a $1
lottery game and $1 for the purchase of a $2 lottery game; the service fee for additional lottery games purchased in the same transaction
is 6% of the face value of all lottery games purchased. For example, the service fee for the purchase of five $2 tickets is $1.60, comprised
of the $1 base service fee, plus 6% of the aggregate value of the face value of all lottery games purchased. The Company has not operated
its B2C platform in the US since July 2022. The Company does operate B2C business in Mexico through our wholly-owned subsidiary, Global
Gaming.

Data
Services. Commercial acquirers of our Data Service pay a subscription for access to the Data Service and, for acquisition of certain
large data sets, an additional per record fee. The Company additionally enters into multi-year contracts pursuant to which it sells proprietary,
anonymized transaction data pursuant to multi-year agreements and in accordance with our Terms of Service in consideration of a fee.
Our Data Services operations were not impacted by the Operational Cessation.

Revenue-Share
Arrangements Sports.com Media Group has entered into agreements with telcos which allow them to monetize Sports.com content to their
users. Both parties share in the revenue.

Our
Operating Costs and Expenses

Personnel
Costs. Personnel