Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 71

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 71
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 may successfully assert that we have not properly collected or remitted withholding taxes, and as a
result may successfully impose additional obligations, fines, penalties or other financial liability on us, any of which could adversely
affect our business, financial condition, and results of operations.

Federal
tax rules generally require payers to report payments to unrelated parties to the Internal Revenue Service. In the event of our failure
to comply with such reporting obligations, due to failure in the application of our judgment in evaluating our obligations, our effective
compliance with our internal process and its execution, or with respect to the process and manner in which we calculate and remit amounts
due and owing to taxing authorities timely or at all, could subject us to brand and reputational damage, fines, penalties, and other
financial liability, any of which could harm our business, financial condition, and results of operations and could cause the value of
our securities to decline or become worthless.

In
certain instances, we have collected and remitted applicable withholding taxes in the claims and redemption process. Regulatory and tax
authorities may raise questions about, or challenge or disagree with, this practice, or in the application of our judgment in evaluating
our obligations, our effective compliance with our internal process and its execution, or with respect to the process and the manner
in which taxes are calculated, remitted and withheld as a result. A successful assertion by one or more regulatory or tax authorities
requiring us to alter our practice could result in brand and reputational damage, fines, penalties and other financial liability, or
discourage our users and commercial partners from using our Platform, any of which could harm our business, financial condition, and
results of operations and could cause the value of our securities to decline or become worthless.

Human
Capital Risks

Our
success will depend on our ability to hire employees in the future. Recruitment and retention of these individuals is vital to growing
our business and our executing our business plans. The loss of any of our key executives or other key employees could harm our business.

Except for those
employed in our foreign subsidiaries (e. g. Aganar and JuegaLotto), we currently have nine employees who manage and operate our
business, including our Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, other employees as well as
thirteen key outside contractors. While we have experienced significant turnover of our executive officers in past years, we expect
that the leadership of our current key executives and employees