Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 67

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 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
Nexus.

Current
Plan of Operations

As
of the date of this Report, the Company’s primary revenue drivers are its data business and lottery ticket sales in Mexico and describe the revenue from S&MI.
It is anticipated that operational costs for the next 12 months through August 31, 2026 will be greater than revenues. It is
anticipated that the liquidity gap will be satisfied by equity investment or debt incurred, of which there is no assurance.

Within
the next 12 months, the Company plans to continue to resume domestic lottery operations and expand international operations.
Moreover, the Company plans to enhance its mobile application