Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 297

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 297
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 expand have been subject to increasing foreign currency fluctuations against the U.S. dollar, inflationary pressures
and political and economic instability. We expect these trends to continue during fiscal 2025 and believe they are likely to affect consumer
spending, which could have a material impact on our revenues. As a result, it may take longer to achieve projected revenue gains or generate
cash in any such regions affected or any new foreign jurisdiction into which we expand.

Introduction
of a new gaming platform. We developed a proprietary, blockchain-enabled gaming platform, which we named Project Nexus. Project Nexus
is designed to handle high levels of user traffic and transaction volume, while maintaining expediency, security, and reliability in
(i) the processing of lottery game sales, (ii) fulfillment of retail requirements of the B2C Platform, (iii) the administrative and back-office
functionality required by our B2B API, and (iv) the requirements of our claims and redemption process. We expect to utilize this platform
to launch new products, including any proprietary products we may introduce. The introduction of new technology like Project Nexus is
subject to risks including, among other things, implementation delays, issues successfully integrating the technology into our solutions,
or the possibility that the technology does not produce the expected benefits.

Our
growth plans and the competitive landscape. Our direct competitors operate in the global entertainment and gaming industries and,
like us, seek to expand their product and service offerings with integrated products and solutions. Our short-to-medium term focus is
on increasing our penetration in our existing U.S. jurisdictions by increasing direct to consumer marketing campaigns, introducing our
B2C Platform into new U.S. and select foreign jurisdictions and acquiring synergistic regulated and sports betting enterprises domestically
and abroad.

Competition
in the sale of online lottery games has significantly increased in recent years, is currently characterized by intense price-based competition,
and is subject to changing technology, shifting needs and frequent introductions of new games, development platforms and services. To
maintain our competitive edge alongside other established industry players (many of which have more resources, or capital), we expect
to incur greater operating expenses, such as increased marketing expenses, increased compliance expenses, increased personnel and advisory
expenses associated with being a public company, additional operational expenses and salaries for personnel to support expected growth,
additional expenses associated with our ability to execute on our strategic initiatives including our aim to undertake merger and acquisition
activities, as well as additional capital expenditures associated with the ongoing development and further implementation of Project