Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 54

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 54
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. As with
other novel software products, the computer code underpinning the distributed ledger technology used in our Platform may contain errors,
or function in unexpected ways and may cause the software to break or function incorrectly.

Furthermore,
security breaches can also occur as a result of non-technical issues, including intentional or inadvertent breaches by our employees
or by third parties. These risks may increase over time as the complexity and number of technical systems and applications we use also
increases. Breaches of our security measures or those of our third-party service providers or cybersecurity incidents could result in
unauthorized access to our sites, networks, and systems; unauthorized access to and misappropriation of user information, including users’
personally identifiable information, or other confidential or proprietary information of ourselves or third parties; viruses, worms,
spyware, or other malware being served from our sites, networks, or systems; deletion or modification of content or the display of unauthorized
content on our sites; interruption, disruption, or malfunction of operations; costs relating to breach remediation, deployment of additional
personnel and protection technologies, response to governmental investigations, and media inquiries and coverage; engagement of third-party
experts and consultants; or litigation, regulatory action, and other potential liabilities. In the past, we have experienced social engineering,
phishing, malware, and similar attacks and threats of denial-of-service attacks, none of which to date has been material to our business;
however, such attacks could in the future have a material adverse effect on our operations, business, and financial condition. If any
of these breaches of security should occur and be material, our reputation and brand could be damaged, our business may suffer, we could
be required to expend significant capital and other resources to alleviate problems caused by such breaches, and we could be exposed
to a risk of loss, litigation, or regulatory action and possible liability. We cannot guarantee that recovery protocols and backup systems
will be sufficient to prevent data loss. Actual or anticipated attacks may cause us to incur increasing costs, including costs to deploy
additional personnel and protection technologies, train employees, and engage third-party experts and consultants.

In
addition, any party who is able to illicitly obtain access to a user’s account could access the user’s transaction data or
personal information, resulting in the perception that our systems are insecure. Any compromise or breach of our security measures, or
those of our third-party service providers, could violate applicable privacy, data protection, data security, network,