Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 115

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 115
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 A. de C. V. (“ JuegaLotto”). Aganar has been operating in the licensed iLottery market in Mexico since 2007 as
an online retailer of Mexican National Lottery draw games, instant digital scratch-off games and other games of chance. JuegaLotto is
licensed by the Mexican federal regulatory authorities to sell international lottery games in Mexico.

On
July 28, 2022, the Board determined that the Company did not currently have sufficient financial resources to fund its operations or
pay certain existing obligations, including its payroll and related obligations and effectively ceased its operations furloughing certain
employees effective July 29, 2022 (the “ Operational Cessation”). Subsequently, the Company has had minimal day-to-day operations
and has primarily focused its operations on restarting certain aspects of its core businesses (the “ Plans for Recommencement of
Company Operations”).

On
April 25, 2023, as part of the Plans for Recommencement of Company Operations, the Company resumed its ticket sales operations on a limited
basis to support its affiliate partners through its Texas retail network.

On September 1, 2024, the
Company completed the acquisition of S& MI Ltd. Finalizing this acquisition is the foundation for the monetization of Sports. com.
In 2024, the Company launched the Sport. com app providing users around the world with access to curated sports content. Additionally,
the Company partnered with BOXXER to stream two live championship boxing matches to sports fans in multiple African nations.

  F-8  

Note
2. Significant Accounting Policies

Basis
of Presentation

The
accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the
United States of America (“ GAAP ASC ASU FASB

Going
Concern

The
accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity
of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying
consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classifications of 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