Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 49

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 49
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(“Armanino”), the Company’s registered independent public accountant for the fiscal years ended December 31, 2021 and
2020, advised the Company that its audited financial statements for the year ended December 31, 2021 (the “2021 Audit”) and
the unaudited financial statements for the quarter ended March 31, 2022 (the “March 2022 Financials”), should no longer be
relied upon. Armanino advised that it had determined, subsequent to the 2021 Audit and review of the March 2022 Financials, that the Company
had entered into a line of credit in January 2022 that was not disclosed in the footnotes to the 2021 Audit and was not properly recorded
in the March 2022 Financials.

On July 28, 2022, the Board determined
that the Company did not have sufficient financial resources to fund its operations or pay certain existing obligations, including its
payroll and related obligations, due to a significant misstatement of our cash balances.

The following day, on July 29,
2022, the Company effectively ceased operations (the “Operational Cessation”), when it furloughed the majority of its employees
and generally suspended its lottery game sales. The Company’s remaining employees were limited to the heads of the product, information
technology and human resources teams as well as the entire legal and compliance team. Within one week, several additional employees were
recalled from furlough. All non-furloughed employees were retained, at the discretion of the Company’s then Chief Operating Officer
and Chief Legal Officer, to provide the minimal business functions needed to address the Company’s legal and compliance issues and
to secure necessary funding to resume the Company’s operations. Only a few of these non-furloughed employees remain active in the
efforts to restore Company operations and as of March 31, 2025, there remains approximately $4.08 million in outstanding payroll obligations
that remained unpaid.

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On September 27, 2022, Armanino
resigned as the independent registered public accounting firm of the Company, effective immediately and subsequently, on October 7, 2022,
the Audit Committee approved the engagement of Yusufali & Associates, LLC, (“Yusufali”) as the Company’s new independent
registered public accounting firm.

Since the 2022 Operational Cessation,
the Company has had minimal