Company: LTRYW
Filing Date: 2025-05-14
Form Type: S-1/A
Source: 0001641172-25-010091
Chunk: 17

Company: Lottery.com Inc.
Filing Date: 2025-05-14
Form: S-1/A
Chunk 17
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 of current public information may have an adverse impact on investor confidence, which could lead to a reduction in our stock price or restrictions on our abilities to obtain financing in the public market, among others.

Risks Related to our Agreement with Generating Alpha LLC (the “Investor Selling Shareholder”)

The Formula and Pricing Mechanism for the sale of our common stock to the Investor Selling Shareholder could result in immediate and substantial dilution.

The effective
price per share of Common Stock potentially sold to the Investor Selling Shareholder pursuant to the formula or pricing mechanism included
in our agreement with the Investor Selling Shareholder will have an immediate and substantial dilution for our outstanding shares of
common stock. Furthermore, if outstanding options, warrants or notes are exercised or converted, as applicable, existing shareholders
could experience further dilution. See the section titled “Dilution” below for a more detailed discussion of the dilutive
effect of the shares sold to the Investor Selling Shareholder. Further, because we may need to raise additional capital to fund our anticipated
level of operations, we may in the future sell substantial amounts of Common Stock or securities convertible into or exchangeable for
Common Stock. These future issuances of equity or equity-linked securities, together with the exercise or conversion of outstanding options,
warrants, notes and/or any additional shares issued in connection with acquisitions, if any, will likely result in further dilution to
investors.

We may not be able to obtain funding of the full commitment amount from the Investor Selling Shareholder

Due to the limitations
with respect to our ability to sell shares of common stock to the Investor Selling Shareholder, there can be no assurance that we will
be able to access the full amount (or even a partial amount) of funding available under the Stock Purchase Agreement. We may need to
raise additional capital to fund our anticipated level of operations through the future sale of substantial amounts of Common Stock or
securities convertible into or exchangeable for Common Stock

Any market activity involving short selling or other market making activities could result in negative impact to the market price for our common stock

While our agreement
with the Investor Selling Shareholder specifically prohibits short selling or other related activity other than selling the shares it
is required to purchase from the Company under the agreement, in the event the Investor Selling Shareholder directly or indirectly undertakes
any short selling it is likely that any such sales activities may negatively impact the market price of our common stock.

Business, Market & Economic Risks

Competition within the