Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 9

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 liabilities that might result if the Company is unable to continue as a going concern.

Pursuant
to the requirements of the Financial Accounting Standards Board’s ASC Topic 205-40, Disclosure of Uncertainties about an Entity’s
Ability to Continue as a Going Concern, management must evaluate whether there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date these financial
statements are issued. This evaluation does not take into consideration the potential mitigating effect of management’s plans that
have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial
doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial
doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is
only considered if both (1) it is probable that the 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 $270.9
million and working capital of approximately negative $15.3
million on June 30, 2025. For the quarter ended June 30, 2025,
the Company sustained a loss of $3.9
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 $25.5 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