Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 3

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
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 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 Operational Cessation, the Company has experienced recurring net losses and negative cash flows from
operations and has an accumulated deficit of approximately $266.8 million and working capital of approximately negative $15.0 million
on March 31, 2025. For the quarter ended March 31, 2025, the company sustained a loss of $3.3 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 $25.6 million 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 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