Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 32

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 32
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  may not have sufficient funds to repay our debt, which could lead us to default on our obligations; and                                  
  the                                                                                                                                      
  current environment in capital markets combined with our capital constraints may prevent us from being able to obtain adequate debt      
  financing.                                                                                                                               
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If
funds advanced under our current loan agreements are inadequate to meet our needs, or we are unable to raise additional funds, we
may not be able to raise enough capital to recommence our operations and operate our business. Consequently, we may be forced to curtail
or even abandon our plan to recommence our operations and we may need to permanently cease our operations.

Further,
the operating relationship between the Company and some of its partners, such as the minority owners of Aganar and JuegaLotto, may be
negatively impacted by the Company’s lack of liquidity. If these relationships were to become strained or be terminated entirely,
it could have a material adverse effect on our reputation, business, financial condition, including our ability to raise new capital,
cash flows and results of operations.

  16  

If
we fail to implement and maintain an effective system of internal controls, we may be unable to accurately report our results of operations,
meet our reporting obligations or prevent fraud, and, as a result, investor confidence and the trading price of our common stock and
warrants may be materially and adversely affected.

In
connection with the audit of our consolidated financial statements as of and for the year ended December 31, 2021, we and our independent
registered public accounting firm identified certain material weaknesses in our internal control over financial reporting as of December
31, 2021. Such material weaknesses have not been fully remediated as of December 31, 2024. As defined in the standards established by
the U. S. Public Company Accounting Oversight Board, or PCAOB, a “material weakness” is a deficiency, or combination of deficiencies,
in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual
or interim financial statements will not be prevented or detected on a timely basis.

Past material weaknesses identified
include:

  Lack                                                                                                                                    
  The                                                                                                                                     
  Deficiencies                                                                                                                            
  Incomplete                                                                                                                              

As a result of the material weaknesses,
management has concluded that our internal control over financial reporting remained ineffective as December 31, 2024