Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 101

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 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 Operational Cessation, the Company has experienced recurring net losses and negative cash flows from
operations and has an accumulated deficit of approximately $270.9
million and working capital of approximately negative $15.3
million on June 30, 2025. For the quarter ended June 30, 2025,
the Company sustained a loss of $3.9
million. For the year ending December 31, 2024 the Company
sustained a net loss of $28.2 million.
The Company sustained a loss from operations of $25.5 and $60.0
million for the years ending December 31, 2023, and 2022, respectively.
Subsequently, the Company sustained additional operating losses and anticipates additional operating losses for the next twelve months.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

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 London Limited. (“UCIL”) on July
21, 2023, the Plans for Recommencement of Company Operations 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, launch additional international lottery operations, and expand operations
in Mexico and offerings of sweepstake, as well as successful monetization of Sports.com, and keeping
expenditures in line with available operating capital. Such conditions raise substantial doubt about the Company’s ability to continue
as a going concern.

     F-6 

Impact
of Trident Acquisition Corp