Company: LTRYW
Filing Date: 2025-05-07
Form Type: S-1/A
Source: 0001641172-25-009053
Chunk: 133

Company: Lottery.com Inc.
Filing Date: 2025-05-07
Form: S-1/A
Chunk 133
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1, which required a restatement of the previously issued financial statements for the year ended December 31, 2021 contained in
the Amended 2021 Annual Report.

We have begun implementing
remediation steps to improve our internal control over financial reporting and to remediate the identified material weaknesses, including
(i) adding personnel with sufficient accounting knowledge; (ii) adopting a more rigorous period-end review process for financial reporting;
(iii) adopting improved period close processes and accounting processes, and (iv) clearly defining and documenting the segregation of
duties for certain transactions and processes. Management has expanded and will continue to enhance our system of identifying transactions
and evaluating and implementing the accounting standards that apply to our financial statements, including through enhanced analyses
by our personnel and third-party professionals with whom we consult regarding complex accounting applications. We intend to continue
to take steps to remediate the material weaknesses described above and further continue re-assessing the design of controls, the testing
of controls and modifying processes designed to improve our internal control over financial reporting. The Company plans to continue
to assess its internal controls and procedures and intends to take further action as necessary or appropriate to address any other matters
it identifies or are brought to its attention. We will not be able to fully remediate these material weaknesses until these steps have
been completed and have been operating effectively for a sufficient period of time. The implementation of our remediation will be ongoing
and will require validation and testing of the design and operating effectiveness of internal controls over a sustained period of financial
reporting cycles. We may also conclude that additional measures may be required to remediate the material weaknesses in our internal
control over financial reporting.

We cannot assure you that
the measures we take will be sufficient to remediate the material weaknesses we identified or avoid the identification of additional
material weaknesses in the future. If the steps we take do not remediate the material weaknesses in a timely manner, there could continue
to be a reasonable possibility that this control deficiency or others could result in another material misstatement of our annual or
interim financial statements that would not be prevented or detected on a timely basis.

For more information, see “Item 1A. Risk Factors - Public Company Operating Risks - If we fail to implement and maintain an effective system of internal controls, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the trading price of our common stock and warrants may be materially and adversely