Company: LTRYW
Filing Date: 2025-05-07
Form Type: S-1/A
Source: 0001641172-25-009053
Chunk: 14

Company: Lottery.com Inc.
Filing Date: 2025-05-07
Form: S-1/A
Chunk 14
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 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.

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, 2024, we and our independent registered public accounting firm identified certain material weaknesses in our internal control over financial reporting as of December 31, 2024. 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.

| 8 |

The material weaknesses as of December 31, 2024, and 2023 identified include:

| ● 
 ● 
 ● | Lack                                                                                                                                   
 of sufficient number of personnel with an appropriate level of knowledge and experience in accounting for complex or non-routine       
 transactions;                                                                                                                          
 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;                                                                    
 Deficiencies                                                                                                                           
 in the design and operations of the procedures relating to the timely closing of financial books at the quarter and fiscal year end;   
 and                                                                                                                                    |
|:--|:---------------------------------------------------------------------------------------------------------------------------------------|
| ● | Incomplete                                                                                                                             
 segregation of duties in certain types of transactions and processes.                                                                  |

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