Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 35

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 2
Chunk 35
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Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The
following discussion and analysis of our financial condition and results of operations together with the condensed consolidated financial
statements and the related notes appearing elsewhere in this Report contains forward-looking statements that involve risks and uncertainties.
Our actual results and the timing of events may differ materially from those expressed or implied in such forward- looking statements
as a result of various factors, including those set forth in the section entitled “ Cautionary Note Regarding Forward-Looking Statements”
included herein and the sections entitled “ Risk Factors” included in this Report and in our Annual Report on Form 10-K/A
for the year ended December 31, 2024 (our “ Annual Report”).

Overview

This
Report is reflective of the Company’s commitment to transparency, integrity, and responsible
corporate governance. The investment commitments from United Investments Capital London, Univest Securities LLC, and outlined in this report are evidence of investor belief in Management’s
capability to resume core lottery and gaming operations, monetize the Sports. com brand, and expand all the Company’s brand across
the globe.

Internal
Investigation and Operational Cessation

On
July 6, 2022, the Company announced that the Audit Committee (the “ Audit Committee”) of the board of directors of the Company
(the “ Board”) had retained outside counsel to conduct an independent investigation that revealed instances of non-compliance
with state and federal laws concerning the states in which lottery tickets were procured as well as order fulfillment. The investigation
also identified issues pertaining to the Company’s internal accounting controls (the “ Internal Investigation”). Following
a report on the filings of the Internal Investigation, on June 30, 2022, the Board terminated the employment of Ryan Dickinson as the
Company’s President, Treasurer and Chief Financial Officer, effective July 1, 2022. Subsequently, the Company initiated a review
of its cash balances and related disclosures as well as its revenue recognition processes and other internal accounting controls.

On
July 20, 2022, Armanino LLP (“ Armanino”), the Company’s registered independent public accountant for the fiscal years
ended December 31, 2021 and 2020, advised the Company that its audited financial statements for the year ended December 31, 2021 (the
“2021 Audit”) and the unaudited financial statements for the quarter ended March 31, 2022 (the “ March