Company: LTRYW
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001641172-25-005663
Chunk: 102

Company: Lottery.com Inc.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 102
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may have to sell significant assets or have a portion of our assets foreclosed upon which could have a material adverse effect on our
business, financial condition and results of operations and could cause any investment in the Company to decline in value or become worthless.

General Risk Factors

Our insurance coverage is not adequate to cover all possible losses that we could suffer, and our insurance costs may increase.

We currently do not have effective director and officer liability insurance and may not have the financial resources or otherwise be able to obtain director and officer liability insurance at reasonable cost or terms in the future. In the event of a substantial loss, the insurance coverage we carry may not be sufficient to pay the full market value or replacement cost of our lost investment or could result in certain losses being totally uninsured. Market forces beyond our control may limit the scope of the insurance coverage we can obtain in the future or our ability to obtain coverage at reasonable rates. Certain catastrophic losses may be uninsurable or too expensive to justify obtaining insurance. As a result, if we suffer such a catastrophic loss, we may not be successful in obtaining future insurance without increases in cost or decreases in coverage levels.

Our cash and cash equivalents may be exposed to failure of our banking institutions.

Since we seek to minimize our exposure to third-party losses of our cash and cash equivalents, we hold our cash balances in more than one financial institution. Notwithstanding such allocation, we are subject to the risk of bank failure and the consequent loss of our funds, in whole or in part. If any bank at which we hold deposits were to experience a failure, we could experience the risk of loss, or limitation on access to, our cash and cash equivalents which would adversely affect our business.

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Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Our principal business
location is in Fort Worth, Texas. Our previous headquarters in Spicewood, Texas was subject to a written lease agreement with an
unrelated third party. The lease agreement was month-to-month and could be terminated by either party upon 30-days written notice.
The Company provided such written notice and terminated the month-to-month tenancy on August 31, 2024. The Company also pays rent on
a retail facility in Waco, Texas in order to support the ticket processing operations of our retail partner, ALTx Management, LLC. Our employees,
including our executive management team, currently perform their job responsibilities remotely.

Item 3. Legal Proceedings.

The Company is from time to time a