Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 30

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 30
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ability for us to be a long-term provider to our customers. Continued adverse publicity and potential concerns from our customers and
business partners or others could harm our business and have an adverse effect on our financial condition.

In July 2022, the Company
furloughed the majority of its U. S. employees and suspended U. S. lottery game sales operations after determining that it did not have
sufficient financial resources to fund these operations or pay certain existing obligations, including U. S. payroll and related obligations.
As a result, the Company may not be able to continue as a going concern in the U. S.

In July 2022, the Company furloughed
the majority of our employees and ceased its operations after determining that it did not have sufficient financial resources to fund
our operations or pay certain existing obligations, including payroll and related obligations. As of December 31, 2024, the Company owed
approximately $3.94 million in outstanding U. S. payroll obligations, which amount remains unpaid. Since our U. S. business is largely
dependent on the efforts and talents of our employees and contractors, particularly those who are our developers and engineers, and the
provision of ongoing services to customers by our employees and contractors, the loss of these employees and contractors has and may
continue to result in the inability of the Company to operate its business and technology, meet its obligations to customers, maintain
key customer relationships and revenue, and fulfill its contractual obligations.

  15  

In order for the Company to fully
restart its U. S. operations, it must raise sufficient capital to re-hire or hire additional employees. Qualified employees may not be
available for hire, or may require salaries or benefits in excess of what we paid persons in similar positions previously, due to
among other things, inflation and other economic factors, the need to hire such persons away from their current jobs and the negative
impact that the furlough has had on our reputation.

If
we are not able to restart our operations, hire new employees and engage new contractors, 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, or seek bankruptcy
protection or a corporate reorganization, which could cause the value of our securities to become worthless, or at best, become devalued
in the marketplace

These
conditions, along with our current lack of material revenue producing activities, and significant debt,