Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 87

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 87
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, and multiple regulatory oversight and our projections
are subject to the risks and assumptions made by management with respect to our industries. Operating results are difficult to forecast
because they generally depend on our assessment of the timing of adoption of future legislation and regulations by different states,
which are uncertain. Furthermore, if we invest in the development of new products, services or distribution channels that do not achieve
significant commercial success, whether because of implementation, competition or otherwise, we may not recover the often substantial
“up front” costs of developing and marketing those products and distribution channels or recover the opportunity cost of
diverting management and financial resources away from other services, products or distribution channels.

  47  

Additionally,
our business may be affected by reductions in consumer spending from time to time as a result of a number of factors which may be difficult
to predict. This may result in decreased revenue levels, and we may be unable to adopt measures in a timely manner to compensate for
any unexpected shortfall in income. This inability could cause our operating results in a given quarter to be higher or lower than expected.
If actual results differ from our estimates, analysts may react negatively, and our stock price could be materially impacted.

The
requirements of being a public company may strain our resources and divert management’s attention, and the increases in legal,
accounting and compliance expenses may be greater than we anticipate.

As
a result of being a public company we incur significant legal, accounting and other expenses that we did not incur as a private company.
We are subject to the reporting requirements of the Exchange Act, and are required to comply with the applicable requirements of the
Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as the rules and regulations subsequently
implemented by the SEC and the listing standards of The Nasdaq Stock Market LLC (“ Nasdaq”), including changes in corporate
governance practices and the establishment and maintenance of effective disclosure and financial controls. Compliance with these rules
and regulations can be burdensome. Moreover, these rules and regulations have increased our legal and financial compliance costs and
have made some activities more time-consuming and costly as compared to when we were a private company. In particular, we have incurred
and expect to continue to incur significant expenses and devote substantial management effort toward ensuring compliance with all these
requirements, including Section 404 of the Sarbanes-Oxley Act, which will increase when we are no longer an “emerging growth company.”
To meet these various requirements