Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 56

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 2
Chunk 56
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 $125,000 for the three months ended March 31, 2025 as compared with interest expense of $ 102,000 for the three months ended March
31, 2024, a decrease of $227,000 or 222%

Other
(Income) Expense

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
and 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 12 months. For more information, see Note 2 - Significant Accounting Policies,
Going Concern In July 2022, we furloughed the majority of our employees and suspended our lottery game sales operations after determining
that we did not have sufficient financial sources to fund our operations or pay certain existing obligations, including our payroll and
related obligations. As a result, we may not be able to continue as a going concern We need additional capital
to, among other things, support and restart our operations, re-hire employees and pay our expenses. Such capital may not be available
on commercially acceptable terms, if at all. If we do not receive the additional capital, we may be forced to curtail or abandon our
plans to recommence our operations and we may need to permanently cease our operations.

Prior Convertible
Debt Obligations

Prior
to the Closing, we funded our operations