Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 76

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 76
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 conversion terms that were triggered by the Closing.

| 13 |

Immediately prior to the Closing,
approximately $60.0 million of convertible debt was converted into equity of AutoLotto.

As of March 31, 2025, we had $2,591,860
of convertible debt outstanding. A portion of this debt has matured and is theoretically in default.

See “-Recent Developments- Loan Agreement with Woodford”
and “Loan Agreement with United Capital Investments London Limited” above for additional information.

Cash Flows

Net cash used in operating activities
was $925,000 for the three months ended March 31, 2025, compared to net cash used in operating activities of $1.1 million for the three
months ended March 31, 2024.

Net cash used in investing activities
during the three months ended March 31, 2025 was $1,500,000, compared to $0 for the prior year. The company acquired Spektrum during
the three months ended March 31, 2025.

Net cash provided by
financing activities was $697,000 for the three months ended March 31 2025, compared to net cash provided of $700,000 for the three
months ended March 31, 2024, which essentially the same for both years.

Emerging Growth Company Accounting Election

Section 102(b)(1) of the JOBS
Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies
are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can choose not to
take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any
such election to not take advantage of the extended transition period is irrevocable. We are an “emerging growth company”
as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits of this extended
transition period. We expect to remain an emerging growth company through the end of the 2023 fiscal year and we expect to continue to
take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare the financial results
with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that
has chosen not to take advantage of the extended transition period