Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 26

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 26
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Item
1A. Risk Factors.

We
have identified the following risks and uncertainties that may have a material adverse effect on our business, financial condition, results
of operations or reputation. The risks described below are not the only risks we face. Additional risks not presently known to us or
that we currently believe are not material may also significantly affect our business, financial condition, results of operations or
reputation. Our business could be harmed by any of these risks. The risk factors described below should be read together with the other
information set forth in this Report, including our consolidated financial statements and the related notes, as well as in other documents
that we file with the SEC.

  13  

Risks Relating to the Restatements of our
Consolidated Financial Statements, Our Ability to Continue as a Going Concern, Our Internal Controls and Related Matters

The
findings of the previously disclosed Internal Investigation and other matters have exposed us to a number of legal proceedings, investigations
and inquiries, resulted in significant legal and other expenses, required significant time and attention from our senior management,
among other adverse impacts.

As disclosed in the Company’s
Reports on Form 8-K, initially filed with the SEC on July 6, 2022 and July 22, 2022, the Board retained outside counsel to conduct an
Internal Investigation that revealed past instances of non-compliance with state and federal laws concerning the state in which tickets
are procured as well as order fulfillment, and issues pertaining to the Company’s internal accounting controls.

Certain
of these issues contributed to the Company’s auditors’ determination that the Company’s audited financial statements
for the year ended December 31, 2021 and the unaudited financial statement for the quarter ended March 31, 2022, should no longer be
relied upon and required restatement.

As
a consequence, on May 10, 2023 and May 15, 2023 respectively, the Company filed with the SEC as amended reports the required restatements
of its year-end report for December 31, 2021 and for the quarter ended March 31, 2022.

The aforementioned issues have
had and could continue to have material adverse impacts on the Company. The Company and certain of our former officers are the subject
of a number of legal proceedings, investigations and inquiries with respect to cited issues and have been named as a defendant in a number
of lawsuits, including class action lawsuits. The Company