Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 101

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 101
---
5
(275,435,350) million and working capital of approximately negative
$11.4 million on
September 30, 2025. For the quarter ended September 30, 2025, the Company sustained a loss of $4.6
million. For the year ending December 31, 2024 the Company sustained a net loss of $28.7
million. The Company sustained a loss from operations of $25.5 and $60.0 million for the years ending December
31, 2023, and 2022, respectively. Subsequently, the Company sustained additional operating losses and anticipates additional operating
losses for the next twelve months. These conditions raise substantial doubt about the Company’s ability to continue as a going
concern.

The
Company has historically funded its activities almost exclusively from debt and equity financing. Management’s plans in order
to meet its operating cash flow requirements include financing activities such as private placements of its common stock, preferred
stock offerings, and issuances of debt and convertible debt. Although Management believes that it will be able to continue to raise
funds by borrowing or from sale of its securities to provide the additional cash needed to meet the Company’s obligations as
they become due, from the loan agreement the Company entered into with United Capital Investments London Limited.
(“UCIL”) on July 21, 2023 and the Amended Stock Purchase Agreement it entered into with Generating Alpha on June 16, 2025, the Plans for Recommencement of Company Operations require substantial funds to implement
and there is no assurance that the Company will be able to continue raising the required capital.

The
Company’s ability to continue as a going concern for the next twelve months from the issuance of these financial statements depends
on its ability to execute the business plan for the relaunch of its core business, launch additional international lottery operations,
and expand operations in Mexico and offerings of sweepstakes, as well as successful monetization of Sports.com, and keeping expenditures
in line with available operating capital. Such conditions raise substantial doubt about the Company’s ability to continue as a
going concern.

     F-6 

Impact
of Trident Acquisition Corp. Business Combination

We
accounted for the October 29, 2021 Business Combination as a reverse recapitalization whereby AutoLotto was determined as the accounting
acquirer and

Trident
Acquisition Corp. (“TDAC”) as the accounting acquiree. This determination was primarily based