Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 70

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part II, Item 1A
Chunk 70
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Item
1A. Risk Factors.

As
of the date of this Report, there have been no material changes to the risk factors disclosed in the Company’s Annual Report, other
than as set forth below. In addition, we may disclose additional changes to such factors or disclose additional factors from time to
time in our future filings with the SEC. Any of these factors could result in a significant or material adverse effect on our results
of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also
impair our business or results of operations.

The
ultimate effect of the Reverse Stock Split on the market price of our common stock cannot be predicted with any certainty and may decrease
the liquidity of our common stock and magnify any decrease in our overall market capitalization.

The
ultimate effect of the Reverse Stock Split on the market price of our common stock cannot be predicted with any certainty, and we cannot
assure you that the Reverse Stock Split will result in any or all of the expected benefits, including enabling the Company to regain
compliance with the Nasdaq listing standards, for any meaningful period of time, or at all. While we expect that the reduction in the
number of outstanding shares of common stock will proportionally increase the market price of our common stock, we cannot assure you
that the Reverse Stock Split will increase the market price of our common stock by a multiple of the Reverse Stock Split ratio or result
in any permanent or sustained increase in the market price of our common stock. The market price of our common stock depends on multiple
factors, many of which are unrelated to the number of shares outstanding, including our business and financial performance, general market
conditions and prospects for future success, any of which could have a counteracting effect to the Reverse Stock Split on the per share
price.

In
addition, the Reverse Stock Split also reduced the total number of outstanding shares of common stock, which may lead to reduced trading
for our common stock. As a result of a lower number of shares outstanding, the market for our common stock may also become more volatile.
The Reverse Stock Split also increased the number of stockholders who own “odd lots” of less than 100 shares of common stock.
A purchase or sale of less than 100 shares of common stock (an “odd lot” transaction) may result in incrementally higher
trading costs through certain brokers, particularly “full service” brokers. Therefore, those stockholders who own fewer than