Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 295

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 295
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 suffer
a material decline. Delisting could also impair the Company’s ability to raise additional capital needed to fund its operations
and/or trigger defaults and penalties under outstanding agreements or securities of the Company.

There
can be no assurance that we will have sufficient capital to support our operations and pay expenses, repay our debt, or that additional
funds will be available on favorable terms, if at all. We may not be able to restart our operations or generate sufficient funding to
support such operations in the future. The Company’s ability to continue its current operations, prepare and refile required reports,
and restart its prior operations, is dependent upon obtaining new financing. Future financing options available to the Company include
equity financings, debt financings or other capital sources, including collaborations with other companies or other strategic transactions.
Equity financings may include sales of common stock. Such financing may not be available on terms favorable to the Company or at all.
The terms of any financing may adversely affect the holdings or rights of the Company’s stockholders and may cause significant
dilution to existing stockholders. There can be no assurance that the Company will be successful in obtaining sufficient funding on terms
acceptable to the Company, if at all, which would have a material adverse effect on its business, financial condition and results of
operations, and it could ultimately be forced to discontinue its operations and liquidate. These matters, when considered in the aggregate,
raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time, which is defined
as within one year after the date that the financial statements are issued. The accompanying financial statements do not contain any
adjustments to reflect the possible future effects on the classification of assets or the amounts and classification of liabilities that
might result from the outcome of this uncertainty.

8

Components
of Our Results of Operations

Our
Revenue

Revenue
from B2C Platform [when operational]. Our revenue is the retail value of the acquired lottery game and the service fee charged to the user, which
we impose on each lottery game purchased from our B2C Platform. The amount of the service fee is based upon several factors,
including the retail value of the lottery game purchased by a user, the number of lottery games purchased by a user, and whether
such user is located within the U.S. or internationally. Currently, in the U.S, the minimum service fee is $0.50 for the purchase of
a $1 lottery game and $1