Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 68

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 new gaming platform. We developed a proprietary, blockchain-enabled gaming platform, which we named Project Nexus. Project
Nexus is designed to handle high levels of user traffic and transaction volume, while maintaining expediency, security, and
reliability in (i) the processing of lottery game sales, (ii) fulfillment of retail requirements of the B2C Platform, (iii)
the administrative and back-office functionality required by our B2B API, and (iv) the requirements of our claims and redemption
process. We expect to utilize this platform to launch new products, including any proprietary products we may introduce. The
introduction of new technology like Project Nexus is subject to risks including, among other things, implementation delays, issues
successfully integrating the technology into our solutions, or the possibility that the technology does not produce the expected
benefits.

Our
growth plans and the competitive landscape. Our direct competitors operate in the global entertainment and gaming industries
and, like us, seek to expand their product and service offerings with integrated products and solutions. Our short-to-medium term
focus is on increasing our brand penetration in U.S. and international jurisdictions by increasing direct to consumer marketing
campaigns, entering into affiliate partnerships in U.S. and select foreign jurisdictions and acquiring synergistic enterprises domestically and abroad.

Current
Plan of Operations

As
of the date of this Report, the Company’s primary revenue drivers are its data business, lottery ticket sales in Mexico and
sponsorship and licensing deals with Sports.com Media Group. It is anticipated that operational costs for the next 12 months through September 30, 2026 will be
greater than revenues. It is anticipated that the liquidity gap will be satisfied by equity investment or debt incurred, of which there
is no assurance.

Within
the next 12 months, the Company plans to continue to reintroduce the Lottery.com brand to the domestic market and expand
international operations in gaming, sports, and entertainment. Moreover, the Company plans to enhance its mobile application to include pool plays, ticket
subscriptions, loyalty programs and various gamification modules.

The
Company is moving forward with its previously announced plans to monetize the Sports.com brand. Those plans include introducing an advertising-supported
subscription model; the creation and licensing of original content through Sports.com Studios; and completing the acquisition of Nook
and marketing business licenses to companies in the sports, health and wellness markets seeking access to Dubai and the broader Middle
Eastern market.

The
acquisition of DotCom Ventures Inc. introduces additional