Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 66

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 66
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 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.

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Components of Our Results of Operations (Prior to the Operational Cessation)

Our Revenue

Revenue from B2C Platform.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 for the purchase of a $2 lottery
game; the service fee for additional lottery games purchased in the same transaction is 6% of the face value of all lottery games purchased.
For example, the service fee for the purchase of five $2 tickets is $1.60, comprised of the $1 base service fee, plus 6% of the aggregate
value of the face value of all lottery games purchased. The Company did not operate its B2C platform in 2023 or 2024.

Internationally, B2C sales in
jurisdictions where we do not have direct or indirect authority generate an