Company: LTRYW
Filing Date: 2025-04-25
Form Type: S-1/A
Source: 0001641172-25-006093
Chunk: 131

Company: Lottery.com Inc.
Filing Date: 2025-04-25
Form: S-1/A
Chunk 131
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 of receipt of the termination
notice.

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
by operating activities was $1.52 million for the year ended December 31, 2024, compared to net cash used by operating activities of
$2.1 million for the year ended December 31, 2023. Factors affecting changes in operating cash flows were stock-based compensation expense
along with decreased expenses for personnel costs, and sales and marketing activities in 2024 as compared to 2023. Net cash used in investing
activities during the year ended December 31, 2024 was $1.5 million, compared to $0 for the prior year. Net cash provided by financing
activities was $2.88 million for the year ended December 31, 2024, compared to $2.27 million used by financing activities for the year
ended December 31, 2023. The increase was due to funding received under convertible debt arrangements in 2024.

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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 2026 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 exemptions for emerging growth companies because of the potential
differences in accounting standards used.

Critical Accounting Policies and Estimates

Our financial statements
and the related notes thereto included elsewhere in this Report are prepared in accordance with U