Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 256

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part II, Item 8
Chunk 256
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, the sale of equity or debt securities.

Liquidity
and Capital Resources

Prior
to the Operational Cessation, our primary need for liquidity was to fund working capital requirements of our business, growth, capital
expenditures and for general corporate purposes. Our primary source of liquidity had historically been funds generated by financing activities.
Upon the Closing of the business combination on October 29, 2021, we received net proceeds of approximately $42.8 million in cash.

Following
the Operational Cessation, our primary need for liquidity has been to fund the restart of our business operations, re-hire employees
and pay our expenses. The most likely source of such future funding presently available to us is through additional borrowings under
loan agreements or through the issuance of equity or debt securities. If lenders do not advance us amounts as agreed under loan agreements
or we are otherwise not able to secure the necessary capital to restart our operations, hire new employees, and obtain funding sufficient
to support and restart our operations, we may be forced to permanently cease our operations, sell off our assets and operations, and/or
seek bankruptcy protection, which could cause the value of our securities to become worthless.

These
conditions, along with our current lack of material revenue producing activities, and significant debt, raise substantial doubt about
our ability to continue as a going concern for the next 12 months. For more information, see Note 2 - Significant Accounting Policies,
Going Concern to the consolidated financial statements included herein.

Cash
Flows

Net
cash used in operating activities was $6.4 million for the nine months ended September 30, 2025, compared to net cash provided by operating
activities of $953,000 for the nine months ended September 30, 2024 which was an increase of $7,4 million year over year.

Net
cash used in investing activities during the nine months ended September 30, 2025 was $2.1 million vs net cash used by investing activities of $885,000 for the nine months ended September 30, 2024, an
increase of $1.2 million year over year, For both years, cash used in investing activities was related to acquisitions of subsidiaries and related intangible
assets.

Net
cash provided by financing activities was $8.8 million for the nine months ended September 30, 2025, compared to net cash used in
financing activities of $32,000 for the nine months ended September 30,