Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 159

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 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 to include pool plays, ticket subscriptions, loyalty programs and
various gamification modules.

The Company is moving forward
with its previously announced plans to monetize the Sports.com brand. Those plans include introducing an advertising-supported subscription
model; the creation and licensing of original content through Sports.com Studios; and completing the acquisition of Nook and marketing
business licenses to companies in the sports, health and wellness markets seeking access to Dubai and the broader Middle Eastern market.

The acquisition of DotCom Ventures Inc. introduces additional revenue streams
for us including concert and sporting events ticket sales, an entertainment focused marketplace of concert memorabilia, live streaming
of concert events, and ticket sales in international jurisdictions.

10

Results
of Operations

Our
consolidated financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include
adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should
we be unable to continue in operation. We will require additional capital to meet our long-term operating requirements. We expect to
raise additional