Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 57

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 57
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 to respond to rapid technological or regulatory changes in our industry. In addition, the introduction
of new products or updated versions of existing products and the underlying technology that supports such products has inherent risks,
including, but not limited to, risks concerning:

  product                                                                                                                                 
  the                                                                                                                                     
  the                                                                                                                                     
  market                                                                                                                                  
  competitor                                                                                                                              

Developing,
enhancing and localizing software is expensive, and the investment in product development may involve a long payback cycle. However,
we believe that we must dedicate a significant number of resources to our developmental efforts to maintain our competitive position.
However, funding for such development efforts may not be available on favorable terms if at all, and we may not receive significant revenue
from these investments for several years, if at all. In addition, as we or our competitors introduce new or enhanced offerings, the demand
for our offerings, may decline.

We
may not timely and effectively scale and adapt our technology and network infrastructure to ensure that our Platform is accessible, which
would adversely affect our business, reputation, financial condition, and results of operations.

Once
we fully resume operations, we expect to make significant investments to improve the availability of our Platform and to enable rapid
releases of new features and services, funding permitting. However, it may become increasingly difficult to maintain and improve the
availability of our Platform, especially during peak usage times and as our Platform becomes more complex and if our user and customer
traffic increase. If our Platform is unavailable when users and customers attempt to access it or it does not respond as quickly as they
expect or it experiences capacity constraints due to an overwhelming number of users or customers accessing our Platform simultaneously,
users or customers may seek other offerings and may not return to our Platform as often in the future, or at all. This would adversely
affect our ability to attract users and customers and decrease the frequency with which they use our Platform. To the extent that we
do not effectively address capacity constraints, upgrade our systems as needed, or develop our technology and network architecture to
accommodate actual and anticipated changes in technology, our business, reputation, financial condition, and results of operations would
be adversely affected.

Our
Platform may be vulnerable to risks, both foreseen and unforeseen, arising from our application of distributed ledger technology.

Prior to the U. S. 2022 Operational
Cessation, our Platform utilized distributed ledger technology by preserving a cryptographic ledger of the user identification, draw identification,
ticket identification, and game numbers into an