Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 13

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 13
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, investor confidence and the trading price of our common stock and warrants may be materially and adversely affected.

In connection with the audit of our consolidated financial statements as of and for the year ended December 31, 2021, we and our independent registered public accounting firm identified certain material weaknesses in our internal control over financial reporting as of December 31, 2021. Such material weaknesses have not been fully remediated as of December 31, 2024. As defined in the standards established by the U.S. Public Company Accounting Oversight Board, or PCAOB, a “material weakness” is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

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The material weaknesses as of December 31, 2023, 2022 and 2021 identified include:

| ● 
 ● 
 ● | Lack                                                                                                                                   
 of sufficient number of personnel with an appropriate level of knowledge and experience in accounting for complex or non-routine       
 transactions;                                                                                                                          
 The                                                                                                                                    
 fact that our policies and procedures with respect to the review, supervision and monitoring of our accounting and reporting functions 
 were either not designed and in place or not operating effectively;                                                                    
 Deficiencies                                                                                                                           
 in the design and operations of the procedures relating to the timely closing of financial books at the quarter and fiscal year end;   
 and                                                                                                                                    |
|:--|:---------------------------------------------------------------------------------------------------------------------------------------|
| ● | Incomplete                                                                                                                             
 segregation of duties in certain types of transactions and processes.                                                                  |

As a result of the material weaknesses, management has concluded that our internal control over financial reporting was ineffective as of December 31, 2023 and 2022, and that some of these deficiencies remain uncorrected as of December 31, 2024.

We intend to implement measures to remediate the identified material weaknesses. Despite these efforts, no assurance can be provided that such remedial measures will be successful in fully resolving the deficiencies in our internal controls, including those identified by the Internal Investigation, will insulate us from the consequences of past disclosure inaccuracies, or will be successful in preventing inaccurate disclosures in the future. The Company also cannot predict whether, or to what extent, such remedial actions will impact its operations or financial results.

Further, there can be no guarantee that the Internal Investigation and subsequent inquiries revealed all instances of inaccurate disclosure or other deficiencies, or that other existing