Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 116

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 116
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 are conditions or events, considered in the aggregate,
that raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date these financial
statements are issued. This evaluation does not take into consideration the potential mitigating effect of management’s plans that
have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial
doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial
doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is
only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial
statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that
raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial
statements are issued.

In
connection with the Company’s 2022 Operational Cessation, the Company has experienced recurring net losses and negative cash
flows from operations and has on a consolidated basis an accumulated deficit of approximately $258.9
million negative $7.5
million $23.9
million $18.2
million and $17.7
million

The
Company has historically funded its activities almost exclusively from debt and equity financing. Management’s plans in order to
meet its operating cash flow requirements include financing activities such as private placements of its common stock, preferred stock
offerings, and issuances of debt and convertible debt. Although Management believes that it will be able to continue to raise funds by
sale of its securities to provide the additional cash needed to meet the Company’s obligations as they become due beginning with
a loan agreement the Company entered into with United Capital Investments Ltd. (“ UCIL”) on July 21, 2023, the Plans for Recommencement
of Company Operations to require substantial funds to implement and there is no assurance that the Company will be able to continue raising
the required capital.

The
Company’s ability to continue as a going concern for the next twelve months from the issuance of these financial statements depends
on its ability to execute the business plan for the relaunch of its core business, the successful monetization of Sports. com, and keeping
expenditures in line with available operating capital. Such conditions raise substantial doubt