Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 74

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 74
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    |     |                            | (64,571  | ) |     |      |  52,676 |     |          | (117,247 | ) |     |          | -223 | % |
| Total other expenses, net |     |                            | (189,112 | ) |     |      | 154,893 |     |          | (344,005 | ) |     |          | -222 | % |

Interest Expense (Income). During the three months ended March 31, 2025, the Company recorded an accrual for interest income on the $2 million note receivable which was offset by interest expense on notes payable and convertible notes. As a result, there was net interest income of $125,000 for the three months ended March 31, 2025 as compared with interest expense of $ 102,000 for the three months ended March 31, 2024, a decrease of $227,000 or 222%

Other (Income) Expense. During the three months ended March 31, 2025 , there was other income of $65,000 whereas during the three months
ended March 31, 2024, there was other expense of $53,000 resulting in a year over year decrease of 117,000 or (-223%).

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 and 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