Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 79

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 79
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 our disclosure
controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2021 and
determined they were not effective due to the material weaknesses in our internal control over financial reporting with respect to our
financial statement close and reporting process. Our disclosure controls and procedures are designed to ensure that information required
to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including
our Chief Executive Officer, to allow timely decisions regarding required disclosures.

| 15 |

Material Weakness in Internal Control Over Financial Reporting compare

In connection with the audit
of our condensed consolidated financial statements included in the respective Reports, our management has identified material weaknesses in our internal
control over financial reporting as of December 31, 2024 and 2023 relating to deficiencies in the design and operation of the procedures
relating to the closing of our financial statements. These include: (i) our lack of a sufficient number of personnel with an appropriate
level of knowledge and experience in accounting for complex or non-routine transactions, (ii) the fact that our policies and procedures
with respect to the review, supervision and monitoring of our accounting and reporting functions were either not designed and in place
or not operating effectively; (iii) our inability to complete the timely closing of financial books at quarter and fiscal year end,
and (iv) incomplete segregation of duties in certain types of transactions and processes.

Specifically, management did
not design and maintain sufficient procedures and controls related to revenue recognition including those related to ensuring accuracy
of revenue recognized from non-routine transactions such as the sales of LotteryLink Credits. As a result, we determined that there was
an overstatement of revenue in the consolidated statement of operations of approximately $52.1 million during the year ended December
31, 2021, which required a restatement of the previously issued financial statements for the year ended December 31, 2021 contained in
the Amended 2021 Annual Report.

We have begun implementing remediation
steps to improve our internal control over financial reporting and to remediate the identified material weaknesses, including (i) adding
personnel with sufficient accounting knowledge; (ii) adopting a more rigorous period-end review process for financial reporting; (