Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 12

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 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 $275.5
(275,435,350) million and working capital of approximately negative
$11.4 million on
September 30, 2025. For the quarter ended September 30, 2025, the Company sustained a loss of $4.6
million. For the year ending December 31, 2024 the Company sustained a net loss of $28.7
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 of debt and convertible debt. Although Management believes that it will be able to continue to raise
funds by borrowing or from sale of its securities to provide the additional cash needed to meet the Company’s obligations as
they become due, from the loan agreement the Company entered into with United Capital Investments London Limited.
(“UCIL”) on July 21, 2023 and the Amended Stock Purchase Agreement it entered into with Generating Alpha on June 16, 2025, the Plans for Recommencement of Company Operations require substantial funds to implement
and there is no