Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 11

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 11
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 plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is
probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s
ability to continue as a going concern within one year after the date that the financial statements are issued.

In connection with the Company’s
Operational Cessation, the Company has experienced recurring net losses and negative cash flows from operations and has an
accumulated deficit of approximately $266.8
million and working capital of approximately negative $15.0
million on March 31, 2025. For the quarter ended March 31, 2025, the company sustained a loss of $3.3
million. For the year ending December 31, 2024, the Company sustained a net loss of $28.2
million. The Company sustained a loss from operations of $25.6
million 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 sale of its securities to provide the additional
cash needed to meet the Company’s obligations as they become due beginning with a loan agreement the Company entered into with United
Capital Investments Ltd. (“UCIL”) on July 21, 2023, the Plans for Recommencement of Company Operations to 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, the 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.

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Impact of Trident Acquisition Corp. Business Combination

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