Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 156

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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 costs include salaries, payroll taxes, health insurance, worker’s compensation and other benefits for management
and office personnel.

Professional
Fees. Professional fees include fees paid for legal and financial services, accountants and other professionals.

General
and Administrative. General and administrative expenses include marketing and advertising expenses, office and facilities lease payments,
travel expenses, bank fees, software dues and subscriptions, expensed research and development (“R&D”) costs and other
fees and expenses.

Depreciation
and Amortization. Depreciation and amortization expenses include depreciation and amortization expenses on real property and other
assets.

 9 

Key
Trends and Factors Affecting Our Results

The
following describes the trends associated with our business prior to the Operational Cessation that have impacted, and which we expect
will continue to impact, our business and results of operations in a material way:

International
operations. We face challenges related to expanding our footprint globally and the related process of obtaining the licenses and
regulatory approvals necessary to provide services and products within new and emerging markets. The international jurisdictions where
we operate and seek to 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