# EDGAR Filing Document

**Accession Number:** 0001673481
**File Stem:** 0001493152-25-024384
**Filing Date:** 2025-11
**Character Count:** 305938
**Document Hash:** 07854d759bd5358211fc5c70b950b6e8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-024384.hdr.sgml**: 20251120

**ACCESSION NUMBER**: 0001493152-25-024384

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 244

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251120

**DATE AS OF CHANGE**: 20251120

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Lottery.com Inc.
- **CENTRAL INDEX KEY:** 0001673481
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 811996183
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38508
- **FILM NUMBER:** 251500930

**BUSINESS ADDRESS:**
- **STREET 1:** 5049 EDWARDS RAND RD.
- **STREET 2:** 4TH FLOOR
- **CITY:** FT. WORTH
- **STATE:** TX
- **ZIP:** 76109
- **BUSINESS PHONE:** (833) 356-8837

**MAIL ADDRESS:**
- **STREET 1:** 5049 EDWARDS RAND RD.
- **STREET 2:** 4TH FLOOR
- **CITY:** FT. WORTH
- **STATE:** TX
- **ZIP:** 76109

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Trident Acquisitions Corp.
- **DATE OF NAME CHANGE:** 20160429

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

☒ **For the quarterly period ended September 30, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _______________ to _________________**

Commission File Number: **001-38508**

**Lottery.com Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **81-1996183** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |
| **5049 Edwards Ranch** **, 4<sup>th</sup> Floor, Fort Worth, Texas** | **76109** |
| (Address of principal executive offices) | (zip code) |

---

**(737) 787-3798**

**(**Registrant's telephone number, including area code)

**N/A**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, $0.001 par value | SEGG | The Nasdaq Stock Market LLC |
| Warrants to purchase one share of common stock, each at an exercise price equivalent to $2,300.00 | LTRYW | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of November 14, 2025, 5,139,652 shares of common stock, par value $0.001 per share were issued and outstanding.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | Page |
| [Part I. Financial Information](#ar_001) |  |
| [Item 1. Consolidated Financial Statements](#ar_002) | 1 |
| [Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024](#ar_003) | F-1 |
| [Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 (unaudited)](#ar_004) | F-2 |
| [Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2025 and 2024 (unaudited)](#ar_005) | F-3 |
| [Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited)](#ar_006) | F-4 |
| [Notes to Condensed Consolidated Financial Statements (unaudited)](#ar_007) | F-5 |
| [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#ar_008) | 2 |
| [Item 3. Quantitative and Qualitative Disclosures about Market Risk](#ar_009) | 16 |
| [Item 4. Controls and Procedures](#ar_010) | 16 |
| [Part II. Other Information](#ar_011) |  |
| [Item 1. Legal Proceedings](#ar_012) | 18 |
| [Item 1A. Risk Factors](#ar_013) | 22 |
| [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#ar_014) | 23 |
| [Item 3. Defaults Upon Senior Securities](#ar_015) | 23 |
| [Item 4. Mine Safety Disclosures](#ar_016) | 23 |
| [Item 5. Other Information](#ar_017) | 23 |
| [Item 6. Exhibits](#ar_018) | 23 |

---

i

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10Q (this "Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements about the financial condition, results of operations, earnings outlook and prospects of Lottery.com Inc. ("Lottery.com", the "Company", "we" or "us"). Forward-looking statements appear in a number of places in this Report, including, without limitation, under the heading in Part I, "*Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.*" In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are based on the current expectations of the management of Lottery.com and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors discussed and identified in the section entitled "Risk Factors" in our Annual Report on Form 10-K/A for the year ended December 31, 2024 (the Amended "Annual Report") which was filed on April 22, 2025 and in this Report, as such factors may be updated in our periodic reports filed with the Securities and Exchange Commission (the "SEC"), as well as the following:

● The findings of the previously disclosed internal investigations and other matters have exposed us to legal proceedings, regulatory investigations and inquiries, and have resulted in significant legal and other expenses, and significant time and attention from our senior management, as well as causing other adverse impacts.

● We and certain of our former officers are, and in the future, we or our officers and directors may become, the subject of legal proceedings, investigations and inquiries by governmental agencies with respect to the findings of the above matters, which could have a material adverse effect on our reputation, business, financial condition, and results of operations, which could result in additional claims and material liabilities.

● We have been named as a defendant in a number of lawsuits filed by purchasers of our securities, including class action lawsuits that could have a material adverse impact on our business, financial condition, results of operation and cash flows, and our reputation.

● Matters relating to or arising from our previous restatement and the internal investigations, including adverse publicity and potential concerns from our users, customers or others with whom we do business, have had and could continue to have an adverse effect on our business and financial condition.

● We need additional capital to, among other things, support and restart our operations, complete acquisitions and pay expenses. Such capital may not be available on commercially acceptable terms, if at all. If we do not receive the additional capital, we may be forced to curtail or abandon our plans to recommence our operations and we may need to permanently cease our operations.

ii

● If we fail to implement and maintain an effective system of internal controls, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the trading price of our common stock and warrants may be materially and adversely affected.

● Our inability to compete with other forms of entertainment for consumers' discretionary time and income.

● Economic downturns, inflation, geopolitical and political and market conditions beyond our control.

● Negative events or media coverage relating to our business, our management and directors.

● Our inability to attract and retain users, including our ineffectiveness to appear in Internet search engine listings.

● Our continued ability to successfully use domain names to promote and increase the value of our brand.

● Scrutiny by stakeholders with respect to responsible gaming conduct.

● Our ability to achieve profitability and growth in our primary markets: sports, gaming, and entertainment.

● The effectiveness of our marketing efforts in developing and maintaining our brand and reputation.

● The vulnerability of our information systems to disruptions in communications, cyberattacks and disruptions caused with respect thereto, including an inability to securely maintain personal and other proprietary user information.

● Our inability to adapt to changes in the Internet, mobile or personal devices, or new technology platforms or network infrastructures, including AI.

● The exposure of our online infrastructure to risks relating to distributed ledger technology.

● Our inability to comply with complex, ever-changing and multi-jurisdictional regulatory regimes and other legal requirements applicable to the gaming industries.

● Geopolitical shifts and changes in applicable laws or regulations or the manner in which they are interpreted.

● Our inability to successfully expand geographically and acquire and integrate new operations.

● Our dependence on third-party service providers to timely perform services or provide software component products for our product offerings and the processing of user payments and withdrawals.

● Our inability to maintain successful relationships and/or agreements with third-party service provider affiliates.

iii

● Failure of third-party service providers to protect, enforce, or defend intellectual property rights required to fulfill contractual obligations required for the operation of our business.

● The ongoing responsibility of maintaining compliance with the regulatory and other requirements of being a public company.

● We have had periods of non-compliance with Nasdaq listing standards in the past and we may not be able to maintain compliance with Nasdaq's continued listing standards in the future.

● Limited liquidity and trading of our securities.

● Lenders may not loan us the amounts they agreed to under existing loan agreements.

● Our obligations under certain loan agreements are secured by a first priority security interest in substantially all of our assets and if we were to default, we could be required to curtail or abandon our business plans and operations.

● The issuance and sale of common stock upon conversion of the amounts owed or upon exercise of the warrants issued to Woodford, UCIL, Univest, or Generating Alpha Ltd (as defined herein) under their loan agreements may depress the market price of our common stock and cause substantial dilution.

● We currently owe a significant amount of money under our loan agreements, which we may not be able to repay on the terms provided therein.

The risks described herein or in the "Risk Factors" sections of our other public filings referenced above are not exhaustive. Other sections of this Report describe additional factors that could adversely affect our business, financial condition or results of operations. New risk factors emerge from time to time and it is not possible to predict all such risk factors, nor can we assess the impact of all such risk factors on our business, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements, which speak only as of the date hereof. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

iv

**PART I – FINANCIAL INFORMATION**

**Item 1. Financial Statements**

---

| | |
|:---|:---|
|  | Page |
| [Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024](#ar_003) | F-1 |
| [Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 (unaudited)](#ar_004) | F-2 |
| [Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2025 and 2024 (unaudited)](#ar_005) | F-3 |
| [Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited)](#ar_006) | F-4 |
| [Notes to Condensed Consolidated Financial Statements (unaudited)](#ar_007) | F-5 |

---

**LOTTERY.COM INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
|  | (UNAUDITED) | (AUDITED) |
| ASSETS |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $320636 | $68035 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 762122 | 494129 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 14419893 | 14449333 |
| &nbsp;&nbsp;&nbsp;Other current assets | 3226390 | 880961 |
| Total current assets | 18729041 | 15892458 |
| Notes receivable | 2000000 | 2250000 |
| Investments | 250000 | 250000 |
| Goodwill | 9061675 | 9061675 |
| Intangible assets, net | 30505537 | 12569165 |
| Property and equipment, net | 1831 | 12124 |
| Other long-term assets | 12884686 | 12906849 |
| &nbsp;&nbsp;&nbsp;Total assets | $73432770 | $52942271 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trade payables | $8688802 | $8241311 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 169643 | 250000 |
| &nbsp;&nbsp;&nbsp;Notes payable - current | 5740882 | 6110777 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 1294998 | 1218864 |
| &nbsp;&nbsp;&nbsp;Accrued and other expenses | 11984856 | 12161311 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 2069132 | 2415179 |
| Total current liabilities | 29948313 | 30397442 |
| Long-term liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Convertible debt, net - non current |  |  |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | - | - |
| Total long-term liabilities | - | - |
| Commitments and contingencies (Note 13) | - | - |
| Total liabilities | 29948313 | 30397442 |
| Equity |  |  |
| Controlling Interest |  |  |
| Preferred Stock, par value $0.001, 1,000,000 shares authorized, none issued and outstanding |  |  |
| Common stock, par value $0.001, 500,000,000 shares authorized, 4,391,123 and 1,832,685 issued and outstanding September 30, 2025 and December 31, 2024, respectively | 4391 | 18327 |
| Additional paid-in capital | 308338601 | 283913433 |
| Accumulated other comprehensive loss | (21601) | 16880 |
| Accumulated deficit | (275435350) | (263468728) |
| Total Lottery.com Inc. stockholders' equity | 32886041 | 20479912 |
| Noncontrolling interest | 10598416 | 2064917 |
| Total Equity | 43484457 | 22544829 |
| Total liabilities and stockholders' equity | $73432770 | $52942271 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**LOTTERY.COM INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue | $137679 | $200653 | $553290 | $716970 |
| Cost of revenue | 204868 | 86315 | 530069 | 215672 |
| Gross profit | (67189) | 114338 | 23221 | 501298 |
| Operating expenses: |  |  |  |  |
| Personnel costs | 360135 | 679346 | 1485738 | 3454011 |
| Professional fees | 1449749 | 1205900 | 3878826 | 4769938 |
| General and administrative | 1498490 | 681345 | 3361031 | 3598397 |
| Depreciation and amortization | 1180132 | 1207913 | 3281090 | 3823641 |
| Total operating expenses | 4488506 | 3774504 | 12006685 | 15645987 |
| Income (loss) from operations | (4555695) | $(3660166) | (11983464) | $(15144689) |
| Other expenses |  |  |  |  |
| Interest (income) expense | 67845 | 126753 | 7726 | 350784 |
| Other (income) expense | (19343) | (20431) | (107948) | (11747) |
| Loss on impairment of intangibles & goodwill | - | 4298002 |  | 4298002 |
| Total other expenses (income), net | 48502 | 4404324 | (100222) | 4637039 |
| Net loss before income tax | $(4604197) | $(8064490) | $(11883242) | $(19781728) |
| Income tax expense (benefit) | 4365 | 12814 | 12665 | 21114 |
| Net loss | (4608562) | (8077304) | (11895907) | (19802842) |
| Other comprehensive loss |  |  |  |  |
| Foreign currency translation adjustment, net | 59205 | 102704 | 109247 | 251889 |
| Comprehensive loss | (4549357) | (7974600) | (11786660) | (19550953) |
| Net income attributable to noncontrolling interest | (107597) | (40824) | (55063) | (142770) |
| Net loss attributable to Lottery.com Inc. | (4441760) | (7933776) | (11731597) | (19408183) |
| Net loss per common share |  |  |  |  |
| Basic and diluted | $(1.19) | $(7.86) | $(3.86) | $(29.47) |
| Weighted average common shares outstanding |  |  |  |  |
| Basic and diluted | 3728546 | 1009986 | 3042671 | 658597 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**LOTTERY.COM, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)**

**For the Three and Nine Months Ended September 30, 2025 and 2024**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | | |
|  | **Shares** | **Amount** | **Additional**<br> **Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated**<br> **Other**<br> **Comprehensive**<br>**Income** | **Total**<br> **AutoLotto Inc.**<br> **Stockholders'**<br>**Equity** | **Noncontrolling**<br>**Interest** | **Total**<br> **Stockholders'**<br>**Equity** |
| Balance as of December 31, 2023 | 287705 | 2887 | 269693158 | (235132590) | (91667) | 34469189 | 2120176 | 36589618 |
| Stock based compensation | 185128 | 185 | 3653939 |  |  | 358349 |  | 358349 |
| Other comprehensive loss |  |  |  |  | 16673 | 16673 |  | 16673 |
| Net loss |  |  |  | (5708979) |  | (5708979) | (67640) | (5328077) |
| Balance as of March 31, 2024 | 472832 | $473 | $273347097 | $(240841569) | (74994) | $32431007 | $2052789 | $34483796 |
| Stock based compensation | 261321 | 261 | 4011894 |  |  | (4012156) |  | 358349 |
| Conversion of debt to equity | 10544 | 11 | 137585 |  |  | 137596 |  | 137596 |
| Other comprehensive loss |  |  |  |  | (51595) | (51595) |  | (51595) |
| Net loss |  |  |  | (5969320) |  | (5969320) | (44624) | (6013944) |
| Balance as of June 30, 2024 | 744697 | 745 | 277496576 | (246810889) | (126589) | 30559843 | 2008165 | 32568008 |
| Stock based compensation | 203051 | 203 | 2261727 |  |  | 2261930 |  | 2261930 |
| Stock issued for acquisition of subsidiary | 5000 | 5 | 149995 |  |  | 150000 |  | 150000 |
| Conversion of debt to equity | 52377 | 52 | 558448 |  |  | 558500 |  | 558500 |
| Other comprehensive loss |  |  |  |  | 243980 | 243980 |  | 243980 |
| Net Loss |  |  |  | (7944050) |  | (7944050) | (40824) | (7984874) |
| Balance as of September 30, 2024 | 1005125 | 1005 | 280466746 | (254754939) | 117391 | 25479912 | $1967341 | 27797544 |
| Balance as of December 31, 2024 | 1832686 | $1833 | $283929927 | $(263468728) | 16880 | $20479912 | $2064916 | $22544829 |
| Stock based compensation | 61257 | 61 | 210959 |  |  | 211020 |  | 211020 |
| Stock issued in lieu of cash | 776064 | 776 | 2672632 |  |  | 2673408 |  | 2673408 |
| Other comprehensive loss |  |  |  |  | (199163) | (199163) |  | (199163) |
| Net loss |  |  |  | (3306468) |  | (3306468) | (17272) | (3323740) |
| Balance as of March 31, 2025 | 2670006 | 2670 | 286813518 | (266775196) | (182283) | 19858709 | 2047644 | 21906353 |
| Stock based compensation | 245449 | 246 | 1646567 |  |  | 1646812 |  | 1646812 |
| Conversion of debt to equity | 256479 | 256 | 1720567 |  |  | 1720823 |  | 1720823 |
| Stock issued in lieu of cash | 71004 | 71 | 476326 |  |  | 476397 |  | 476397 |
| Other comprehensive loss |  |  |  |  | 229718 | 229718 |  | 229718 |
| Prior period adjustment to correct balance in noncontrolling interest |  |  |  | (340367) |  | (340367) | (1166154) | (1506521) |
| Net loss |  |  |  | (3878027) |  | (3878027) | (35262) | (3913289) |
| Balance as of June 30, 2025 | 3242938 | 3243 | 290656977 | (270993590) | 47435 | 19714065 | 846228 | 20560293 |
| Stock issued in lieu of cash | 379377 | 397 | 1156072 |  |  | 1156072 |  | 1156072 |
| Stock issued for acquisitions | 340000 | 340 | 10200007 |  |  | 10200007 |  | 10200007 |
| Conversion of Debt to Equity | 219581 | 219 | 3376220 |  |  | 3376220 |  | 3376220 |
| Stock issued under stock purchase agreement | 191581 | 192 | 2950281 |  |  | 2950473 |  | 2950473 |
| Noncontrolling interest in acquired subsidiaries |  |  |  |  |  | 0 | 9859785 | 9859785 |
| Other comprehensive loss |  |  |  |  | (69036) | (69036) |  | (69036) |
| Net Loss |  |  |  | (4441760) |  | (4441760) | (107597) | (4549357) |
| Balance as of September 30, 2025 | 4391123 | 4391 | 308338601 | (275435350) | (21601) | 32886041 | 10598416 | 43484457 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**LOTTERY.COM INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

**For the Nine Months Ended September 30, 2025 and 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss attributable to Lottery.com Inc. | $(11731597) | $(19408183) |
| Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| Loss Attributable to noncontrolling interest | 107597 | 129183 |
| Depreciation and amortization | 3287893 | 3823642 |
| Common stock granted for compensation and as payment in lieu of cash payments for accrued liabilities | 4300810 | 10621823 |
| Loss on impairment of intangibles & goodwill |  | 4298002 |
| Changes in assets and liabilities: |  |  |
| Accounts receivable | (267993) | (410216) |
| Prepaid expenses | 29440 | (228198) |
| Other current assets |  | 136966 |
| Other long term assets | 22163 |  |
| Trade payables | 447491 | 116057 |
| Accrued and other expenses | (176455) | 1231465 |
| Deferred revenue | (80357) | (80357) |
| Other liabilities | (2406674) |  |
| Accrued interest | 76134 | 850000 |
| Other long-term liabilities | - | 237226 |
| Net cash (used in) provided by operating activities | (6391548) | 952753 |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| Proceeds from collection of note receivable | 250000 |  |
| Payments made as deposits for acquisitions | (2345429) |  |
| Investment in subsidiaries, net |  | (884906) |
| Net cash used in investing activities | (2095429) | (884906) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| Proceeds from sale of common stock under put arrangement | 4480805 |  |
| Proceeds/ (Payments) from exercise of options and warrants | (177096) |  |
| Proceeds (Payments) related to convertible notes | 4502644 | (31560) |
| Net cash provided by financing activities | 8806353 | (31560) |
| Net effect of exchange rate changes on Cash | (59205) | (335647) |
| NET CHANGE IN NET CASH AND RESTRICTED CASH | 260171 | (299360) |
| CASH AND RESTRICTED CASH - BEGINNING OF YEAR | 60465 | 359826 |
| CASH AND RESTRICTED CASH - END OF PERIOD | $320636 | $60465 |
| Supplemental Disclosure of Cash Flow Information: |  |  |
| Interest paid in cash | $- | $- |
| Taxes paid in cash | $381842 | $- |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**LOTTERY.COM INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**Nine MONTHS ENDED SEPTEMBER 30, 2025**

**Note 1. Nature of Operations**

Description of Business

Lottery.com Inc. (formerly Trident Acquisitions Corp) ("TDAC", "Lottery.com". "SEGG Media" or "the Company"), was formed as a Delaware corporation on March 17, 2016. On October 29, 2021, we consummated a business combination (the "Business Combination") with AutoLotto, Inc. ("AutoLotto"). Following the closing of the Business Combination (the "Closing") we changed our name from "Trident Acquisitions Corp." to "Lottery.com Inc." and the business of AutoLotto became our business. In connection with the Business Combination the Company moved its headquarters from New York, New York to Texas. In July 2025, the Company began doing business as Sports Entertainment Gaming Global Media Corporation ("SEGG Media"). The name change is reflective of the Company's shift to focusing on providing products, content and services in three verticles: sports, entertainment, and gaming.

The Company owns and operates three premium domain brands: Sports.com, Concerts.com, and Lottery.com representing the Company's three operating focuses:

Sports, Entertainment, and Gaming.

Sports

Sports.com is a next-generation global sports streaming and content platform designed to meet the evolving demands of digital audiences. Focused on delivering premium short-form video, curated articles, and eventually live event coverage, the platform combines mobile-first accessibility, AI-driven personalization, and community engagement to create a unified experience for fans worldwide.

The business launched with an ad-supported freemium model and scale toward subscription and pay-per-view offerings upon achieving key user milestones. Initial target markets include the United States, Latin America (LATAM), India, and the Gulf Cooperation Council (GCC) regions with fast-growing streaming adoption and underserved sports segments. The platform will also build strategic partnerships with regional sports leagues, influencers, and brands to accelerate content acquisition and market penetration.

Additionally, the Company will develop, produce and distribute compelling sports-focused films, docuseries, and premium digital content. This new arm of the business will serve as the cornerstone of the Company's global expansion into entertainment media and immersive storytelling.

The Company has two wholly-owned subsidiaries to support the operations of the Sports-related activities: Sports.com Media Group Ltd and Sports.com Studios Ltd.

Entertainment

The Company is pursuing multiple revenue models in the entertainment vertical. Through TicketStub.com, the Company has a platform which allows it to generate revenue via direct-to-consumer ticket sales and through affiliate commissions with both first and second tier ticketing services. Concerts.com will focus on delivering free and subscription-based content related to the music industry. Features will include live and recorded concert streaming, music instruction, a licensed and fan-produced merchandise marketplace, and entertainment news.

The Company's majority owned subsidiary, DotCom Ventures, Inc., operates two brands to support the operations of entertainment related activities:

TicketStub.com and Concerts.com.

Gaming

The Company has an independent third-party lottery game service. It offers multiple gaming platforms to enable the remote purchase of legally sanctioned lottery and sweepstakes games in the U.S. and abroad (the "Platforms"). The Company's revenue generating activities are focused on (i) offering the Platforms via apps and websites to users located in the U.S. and international jurisdictions where the sale of lottery and sweepstakes games is legal and our services are enabled for the remote purchase of legally sanctioned games (our "B2C Platform*"*); (ii) delivering global lottery data, such as winning numbers and results, and sports data, such as scores and statistics, to commercial digital subscribers and providing access to other proprietary, anonymized transaction data pursuant to multi-year contracts ("Data Service"); and (iii) transitioning Lottery.com into a high-authority, content-rich website that provides comprehensive information about lotteries, including results, analysis, comparisons, tools, and regulatory context and driving revenue through a Cost-per-Acquisition (CPA) or Revenue-Share model with third-party partners.

As a provider of lottery products and services, the Company is required to comply with, and its business is subject to, regulation in each jurisdiction in which the Company offers the B2C Platform. In addition, it must also comply with the requirements of federal and other domestic and foreign regulatory bodies and governmental authorities in jurisdictions in which the Company operates or with authority over its business. The Company's business is additionally subject to multiple other domestic and international laws, including those relating to the transmission of information, privacy, security, data retention, and other consumer focused laws, and, as such, may be impacted by changes in the interpretation of such laws.

**Note 2. Significant Accounting Policies**

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("*GAAP*") and include the accounts of the Company and its majority owned and wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification ("*ASC*") and Accounting Standards Update ("*ASU*") of the Financial Accounting Standards Board ("*FASB*"). All intercompany accounts and transactions have been eliminated in consolidation.

Going Concern

The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern.

Pursuant to the requirements of the Financial Accounting Standards Board's ASC Topic 205-40, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year from the date these financial statements are issued. This evaluation does not take into consideration the potential mitigating effect of management's plans that have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about 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 $275.5 million and working capital of approximately negative $11.4 million on September 30, 2025. For the quarter ended September 30, 2025, the Company sustained a loss of $4.6 million. For the year ending December 31, 2024 the Company sustained a net loss of $28.7 million. The Company sustained a loss from operations of $25.5 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 borrowing or from sale of its securities to provide the additional cash needed to meet the Company's obligations as they become due, from the loan agreement the Company entered into with United Capital Investments London Limited. ("UCIL") on July 21, 2023 and the Amended Stock Purchase Agreement it entered into with Generating Alpha on June 16, 2025, the Plans for Recommencement of Company Operations 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, launch additional international lottery operations, and expand operations in Mexico and offerings of sweepstakes, as well as successful monetization of Sports.com, and keeping expenditures in line with available operating capital. Such conditions raise substantial doubt about the Company's ability to continue as a going concern.

Impact of Trident Acquisition Corp. Business Combination

We accounted for the October 29, 2021 Business Combination as a reverse recapitalization whereby AutoLotto was determined as the accounting acquirer and

Trident Acquisition Corp. ("TDAC") as the accounting acquiree. This determination was primarily based on:

● former AutoLotto stockholders having the largest voting interest in Lottery.com Inc. ("Lottery.com");

● the board of directors of Lottery.com having 7 members, and AutoLotto's former stockholders having the ability to nominate the majority of the members of the board of directors;

● AutoLotto management continuing to hold executive management roles for the post-combination company and being responsible for the day-to-day operations;

● the post-combination company assuming the Lottery.com name;

● Lottery.com maintaining the pre-existing AutoLotto headquarters; and the intended strategy of Lottery.com being a continuation of AutoLotto's strategy.

Accordingly, the Business Combination was treated as the equivalent of AutoLotto issuing stock for the net assets of TDAC, accompanied by a recapitalization.

The net assets of TDAC are stated at historical cost, with no goodwill or other intangible assets recorded.

While TDAC was the legal acquirer in the Business Combination, because AutoLotto was determined as the accounting acquirer, the historical financial statements of AutoLotto became the historical financial statements of the combined company, upon the consummation of the Business Combination. As a result, the financial statements included in the accompanying consolidated financial statements reflect (i) the historical operating results of AutoLotto prior to the Business Combination; (ii) the combined results of the Company and AutoLotto following the closing of the Business Combination; (iii) the assets and liabilities of AutoLotto at their historical cost; and (iv) the Company's equity structure for all periods presented.

In connection with the Business Combination transaction, we have converted the equity structure for the periods prior to the Business Combination to reflect the number of shares of the Company's common stock issued to AutoLotto's stockholders in connection with the recapitalization transaction. As such, the shares, corresponding capital amounts and earnings per share, as applicable, related to AutoLotto convertible preferred stock and common stock prior to the Business Combination have been retroactively converted by applying the exchange ratio established in the Business Combination.

Non-controlling Interest

Non-controlling interest represents the proportionate ownership of Aganar and JuegaLotto, and DotCom Ventures, Inc. held by minority members and reflects their capital investments as well as their proportionate interest in subsidiary losses and other changes in members' equity, including translation adjustments.

Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. Under the provisions of ASC 280, Segment Reporting, the Company is not organized around specific services or geographic regions. The Company is evaluating the impact of ASC 280 as it relates its expansion from operating exclusively as a gaming company to also offering products and services in sports and entertainment and may provide Segment Reporting in future filings.

We determined that our Chief Financial Officer is the Chief Operating Decision Maker, and he uses financial information, business prospects, competitive factors, operating results and other non-U.S. GAAP financial ratios to evaluate our performance, which is the same basis on which our results and performance are communicated to our Board of Directors. Based on the information described above and in accordance with the applicable literature, management has concluded that we are organized and operated as one operating and reportable segment on a consolidated basis for each of the periods presented.

Concentration of Credit Risks

Financial instruments that are potentially subject to concentrations of credit risk are primarily cash. Cash holdings are placed with major financial institutions deemed to be of high-credit-quality in order to limit credit exposure. The Company maintains deposits and certificates of deposit with banks which may exceed the Federal Deposit Insurance Corporation ("FDIC") insured limit and money market accounts which are not FDIC insured. In addition, deposits aggregating approximately $12,970 on September 30, 2025 were held in foreign banks. Management believes the risk of loss in connection with these accounts is minimal.

Use of Estimates

The preparation of the financial statements requires management to make estimates and assumptions to determine the reported amounts of assets, liabilities, revenue and expenses. Although management believes these estimates are reasonable, actual results could differ from these estimates. The Company evaluates its estimates on an ongoing basis and prepares its estimates on historical experience and other assumptions the Company believes to be reasonable under the circumstances.

Reclassifications

Certain balances have been reclassified in the accompanying consolidated financial statements to conform to the current year presentation. These reclassifications had no effect on the balances of current or total assets and prior year's net loss or accumulated deficit.

Foreign currency translation

Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. Dollars are translated into U.S. Dollars using period-end exchange rates. Global Gaming operates in Mexican Pesos and the base currency for Sports.com Media Group Ltd. (formerly S&MI Ltd.) is British Pounds. Assets and liabilities are translated using period-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the reporting period. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss).

Cash and Restricted Cash

As of September 30, 2025 and December 31, 2024, cash was comprised of cash deposits. From time-to-time cash deposits with some banks may exceed federally insured limits with the majority of cash held in one financial institution. Management believes all financial institutions holding its cash are of high credit quality and does not believe the Company is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

The Company had no marketable securities as of September 30, 2025 and December 31, 2024.

Accounts Receivable

The Company through its various merchant providers pre-authorizes forms of payment prior to the sale of digital representation of lottery games to minimize exposure to losses related to uncollected payments and does not extend credit to the user of the B2C Platform or the commercial partner of the B2B API, which are its customers, in the normal course of business. The Company estimates its bad debt exposure each period and records a bad debt provision for accounts receivable it believes it may not collect in full. In the fall of 2024, the Company completed a project whereby certain older items in accounts receivable for the TinBu subsidiary were offset against the allowance for uncollectible receivables, resulting in a reduction in the number of individual items in accounts receivable which were aged greater than 90 days and the total amount for them. At the completion of this project, the balance in the allowance for uncollectible receivables was $22,016. At the end of 2024 the Company increased the allowance for uncollectible receivables by $10,984. At December 31, 2024 the allowance for uncollectible receivables was $33,000 whereas, before the project described above, it was $94,270 at December 31, 2023. The Company did not change its allowance for uncollectible receivables as of September 30, 2025. At September 30, 2025 the allowance for uncollectible receivables remained $33,000. The Company has not incurred bad debt expense historically.

Prepaid Expenses for Advertising Credits

Prepaid expenses consist of payments made on contractual obligations for services to be consumed in future periods. The Company entered into an agreement with two third parties to provide advertising services and issued equity instruments as compensation for the advertising services ("Prepaid advertising credits"). The Company expenses the service as it is performed by the third parties. The value of the services provided were used to value these contracts, except for the year ended December 31, 2021 the Company reserved for potential inability to realize $2,000,000 of prepaid advertising credits in future periods. Similarly, for the period ending December 31, 2024, the Company determined that approximately an additional $4,745,000 of prepaid advertising credits purchased during 2017 and 2018 may not be able to be fully utilized. As a result, the Company decreased prepaid expenses by $4,745,000 and increased its reserve for loss of prepaid advertising credits by $4,745,000 on December 31, 2024. Prepaid expenses are included in current assets on the consolidated balance sheets. The Company has remaining prepaid expenses of $14,419,893 and $14,449,333 on September 30, 2025 and December 31, 2024, respectively.

Investments

On August 2, 2018, AutoLotto purchased 186,666 shares of Class A-1 common stock of a third-party business development partner representing 4% of the total outstanding shares of the Company. As this investment resulted in less than 20% ownership, it was accounted for using the cost basis method.

Property and equipment, net

Property and equipment are stated at cost. Depreciation and amortization are generally computed using the straight-line method over estimated useful lives ranging from three to five years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the asset. Routine maintenance and repair costs are expensed as incurred. The costs of major additions, replacements and improvements are capitalized. Gains and losses realized on the sale or disposal of property and equipment are recognized or charged to other expense in the consolidated statement of operations.

Depreciation of property and equipment is computed using the straight-line method over the following estimated useful lives:

Computers and equipment 3 years <br> Furniture and fixtures 5 years <br> Software 3 years

Leases

Right-of-use assets ("ROU assets") represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. As most of the leases do not provide an implicit rate, the Company would use its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Otherwise, the implicit rate would be used when readily determinable. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Under the available practical expedient, the Company accounts for the lease and non-lease components as a single lease component for all classes of underlying assets as both a lessee and lessor. Further, management has elected a short-term lease exception policy on all classes of underlying assets, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less).

Internal Use Software Development

Software development costs incurred internally to develop software programs to be used solely to meet our internal needs and applications are capitalized once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the intended function. Additionally, we capitalize qualifying costs incurred for upgrades and enhancements to existing software that result in additional functionality. Costs related to preliminary project planning activities, post-implementation activities, maintenance and minor modifications are expensed as incurred. Internal-use software development costs are amortized on a straight-line basis over the estimated useful life of the software.

Goodwill and Other Intangible Assets

Goodwill represents the excess of the cost of assets acquired over the fair value of the net assets at the date of acquisition. Intangible assets represent the fair value of separately recognizable intangible assets acquired in connection with the Company's business combinations. The Company evaluates its goodwill and other intangibles for impairment on an annual basis or whenever events or circumstances indicate that an impairment may have occurred in accordance with the provisions of ASC 350, "*Goodwill and Other Intangible Assets*".

Revenue Recognition

Under the new standard, Accounting Standards Update ("ASU") 2014-09, "*Revenue from Contracts with Customers (Topic 606)*", the Company recognizes revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists; (ii) identifiable performance obligations under the contract exist; (iii) the transaction price is determinable for each performance obligation; (iv) the transaction price is allocated to each performance obligation; and (v) when the performance obligations are satisfied. Revenues are recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration expected to be entitled to in exchange for those goods or services.

Lottery game revenue

Items that fall under this revenue classification include:

*Lottery game sales*

The Company's performance obligations of delivering lottery games are satisfied at the time in which the digital representation of the lottery game is delivered to the user of the Platforms and therefore are recognized at a point in time. The Company receives consideration for lottery game sales at the time of delivery to the customer, which may be the user or commercial partner, as applicable. There is no variable consideration related to lottery game sales. As each individual lottery game delivered represents a distinct performance obligation and consideration for each game sale is fixed, representing the standalone selling price, there is no allocation of consideration necessary.

In accordance with Accounting Standards Codification ("ASC") 606, the Company evaluates the presentation of revenue on a gross versus net basis dependent on whether the Company is a principal or agent. In making this evaluation, some of the factors that are considered include whether the Company has control over the specified good or services before they are transferred to the customer. The Company also assesses whether it is primarily responsible for fulfilling the promise to provide the goods or services, has inventory risk, and has discretion in establishing the price. For all of the Company's transactions, management concluded that gross presentation is appropriate, as the Company is primarily responsible for providing the performance obligation directly to the customers and assumes fulfillment risk of all lottery game sales as it retains physical possession of lottery game sales tickets from time of sale until the point of redemption. The Company also retains inventory risk on all lottery game sales tickets as they would be responsible for any potential winnings related to lost or unredeemable tickets at the time of redemption. Finally, while states have the authority to establish lottery game sales prices, the Company can add service fees to ticket prices evidencing its ability to establish the ultimate price of the lottery tickets being sold.

*Other associated revenue*

The Company's performance obligations in agreements with certain customers are to provide a license of intellectual property related to the use of the Company's tradename for marketing purposes by partners of the Company. Partners pay a license fee up front. The transaction price is deemed to be the license issue fee stated in the contract. The license offered by the Company represents a symbolic license which provides the customer with the right to use the Company's intellectual property on an ongoing basis with continued support throughout the term of the contract in the form of ongoing maintenance of the underlying intellectual property. There is no variable consideration related to these performance obligations.

*Arrangements with multiple performance obligations*

The Company's contracts with customers may include multiple performance obligations. For such arrangements, management allocates revenue to each performance obligation based on its relative standalone selling price. Management generally determines standalone selling prices based on the prices charged to customers.

*Deferred Revenue*

The Company records deferred revenue when cash payments are received or due in advance of any performance, including amounts which are refundable.

Payment terms vary by the type and location of the customer and the products or services offered. The period between invoicing and when payment is due is not significant. For certain products or services and customer types, management requires payment before the products or services are delivered to the customer.

*Contract Assets*

Given the nature of the Company's services and contracts, it has no contract assets.

*Taxes*

Taxes assessed by a governmental authority that are both imposed on and concurrent with specific revenue-producing transactions, that are collected by us from a customer, are excluded from revenue.

Cost of Revenue

Lottery Specific Operations. Cost of revenue consists primarily of variable costs, comprising (i) the cost of procurement of lottery games, minus winnings to users, additional expenses related to the sale of lottery games, including, commissions, affiliate fees and revenue shares; and (ii) payment processing fees on user fees, including chargebacks imposed on the Company. Other non-variable costs included in cost of revenue include affiliate marketing credits acquired on a per-contract basis.

For Non-Lottery Operations. Cost of revenue consists of (i) fixed direct costs and/or variable costs incurred for content or services provided by third parties in connection with generating revenue; and (ii) payment processing fees on user fees, including chargebacks imposed on the Company. Other variable costs include underlying costs of tickets for events and sweepstakes prizes.

Stock-based Compensation

Effective October 1, 2019, the Company adopted ASU 2018-07, *Compensation - "Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting"* ("ASC 718"), which addresses aspects of the accounting for nonemployee share-based payment transactions and accounts for share-based awards to employees in accordance with ASC 718, *Stock Compensation*. Under this guidance, stock compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the estimated service period (generally the vesting period) on the straight-line attribute method.

Income Taxes

For both financial accounting and tax reporting purposes, the Company reports income and expenses based on the accrual method of accounting.

For federal and state income tax purposes, the Company reports income or loss from their investments in limited liability companies on the consolidated income tax returns. As such, all taxable income and available tax credits are passed from the limited liability companies to the individual members. It is the responsibility of the individual members to report the taxable income and tax credits, and to pay any resulting income taxes. Therefore, the income and losses incurred by the limited liability companies have been consolidated in the Company's tax return and provision based upon its relative ownership.

Income taxes are accounted for in accordance with ASC 740, "*Income Taxes*" ("ASC 740"), using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related benefit will not be realized.

The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (i) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company's policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits.

Generally, the taxing authorities can audit the previous three years of tax returns and in certain situations audit additional years. For federal tax purposes, the Company's 2021 through 2024 tax years generally remain open for examination by the tax authorities under the normal three-year statute of limitations. For state tax purposes, the Company's 2020 through 2024 tax years remain open for examination by the tax authorities under the normal four-year statute of limitations.

Fair Value of Financial Instruments

The Company determines the fair value of its financial instruments in accordance with the provisions of ASC 820, *Fair Value Measurements and Disclosures* ("ASC 820")*,* which establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities

● Level 2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability

● Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability.

Determination of fair value and the resulting hierarchy requires the use of observable market data whenever available.

The classification of an asset or liability in the hierarchy is based upon the lowest level of input that is significant to the measurement of fair value.

Fair value of stock options and warrants

Management uses the Black-Scholes option-pricing model to calculate the fair value of stock options and warrants. Use of this method requires management to make assumptions and estimates about the expected life of options and warrants, anticipated forfeitures, the risk-free rate, and the volatility of the Company's share price. In making these assumptions and estimates, management relies on historical market data.

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU No. 2017-04, *Intangibles - Goodwill and other (Topic 350)* ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairment and removes Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value limited to the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. The amendments in this ASU are effective for goodwill impairment tests in fiscal years beginning after December 15, 2021, and early adoption is permitted. The Company is currently evaluating this new standard and management does not currently believe it will have a material impact on its consolidated financial statements, depending on the outcome of future goodwill impairment tests.

In June 2016, the FASB issued ASU No. 2016-13, *Financial Instruments - Credit Losses (Topic 326)*: *Measurement of Credit Losses on Financial Instruments* ("ASU 2016-13"). ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Adoption of ASU 2016-13 will require the Company to use forward-looking information to formulate its credit loss estimates. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, and early adoption is permitted.

In December 2019, the FASB issued ASU No 2019-12, *Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (*"ASU2019-12"*)*. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2021, and early adoption is permitted.

In October 2020, the FASB issued *ASU No. 2020-09, Debt (Topic 470) ("ASU 2020-09"). ASU 2020-09* amendments to SEC paragraphs pursuant to SEC release NO. 33-10762 amends terms related to Debt Guarantors and Issuers of Guaranteed Securities Registered or to be Registered with the SEC.

In November 2023, the FASB issued *ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures* to enhance the reportable segment disclosures. The guidance will require additional disclosures about significant segment expenses. The guidance is effective for the public companies with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of this standard.

**Note 3. Business Combination and Acquisitions**

TDAC Combination

On October 29, 2021, the Company and AutoLotto consummated the transactions contemplated by the Merger Agreement. At the Closing, each share of common stock and preferred stock of AutoLotto that was issued and outstanding immediately prior to the effective time of the Merger (other than excluded shares as contemplated by the Merger Agreement) was cancelled and converted into the right to receive approximately 3.0058 shares (the "Exchange Ratio") of Lottery.com. common stock.

The Merger closing was a triggering event for the Series B convertible notes, of which $63.8 million was converted into 164,426 shares of AutoLotto that were then converted into 488,225 shares of Lottery.com common stock using the Exchange Ratio.

At the Closing, each option to purchase AutoLotto's common stock, whether vested or unvested, was assumed and converted into an option to purchase a number of shares of Lottery.com common stock in the manner set forth in the Merger Agreement.

The Company accounted for the Business Combination as a reverse recapitalization whereby AutoLotto was determined as the accounting acquirer and TDAC as the accounting acquiree. Refer to *Note 2, Summary of Significant Accounting Policies*, for further details. Accordingly, the Business Combination was treated as the equivalent of AutoLotto issuing stock for the net assets of TDAC, accompanied by a recapitalization. The net assets of TDAC are stated at historical cost, with no goodwill or other intangible assets recorded.

The accompanying consolidated financial statements and related notes reflect the historical results of AutoLotto prior to the merger and do not include the historical results of TDAC prior to the consummation of Business Combination.

Upon the closing of the transaction, AutoLotto received total gross proceeds of approximately $42,794,000, from TDAC's trust and operating accounts. Total transaction costs were approximately $9,460,000, which principally consisted of advisory, legal and other professional fees and were recorded in additional paid in capital. Cumulative debt repayments of approximately $11,068,000, inclusive of accrued but unpaid interest, were paid in conjunction with the close, which included approximately $5,475,000 repayment of notes payable to related parties, and approximately $5,593,000 payment of accrued underwriter fees.

Pursuant to the terms of the Business Combination Agreement, the holders of issued and outstanding shares of AutoLotto immediately prior to the Closing (the "Sellers") were entitled to receive up to 300,000 additional shares of Common Stock (the "Seller Earnout Shares") and Vadim Komissarov, Ilya Ponomarev and Marat Rosenberg (collectively the "TDAC Founders") were also entitled to receive up to 200,000 additional shares of Common Stock (the "TDAC Founder Earnout Shares" together with the Seller Earnout Shares, the "Earnout Shares"). One of the earnout criteria had not been met by the December 31, 2021 deadline thus no earnout shares were granted specific to that criteria. 150,000 of the Seller Earnout Shares and 100,000 TDAC Founder Earnout Shares were still eligible Earnout Shares until December 31, 2022. The criteria were not met by December 31, 2022 and those earnout shares were not granted. All of the potential earnout shares were forfeited as of December 31, 2022.

Global Gaming Acquisition

On June 30, 2021, the Company completed its acquisition of 100 percent of equity of Global Gaming Enterprises, Inc., a Delaware corporation ("Global Gaming"), which holds 80% of the equity of each of Medios Electronicos y de Comunicacion, S.A.P.I de C.V. ("Aganar") and JuegaLotto, S.A. de C.V. ("JuegaLotto"). JuegaLotto is federally licensed by the Mexico regulatory authorities with jurisdiction over the ability to sell international lottery games in Mexico through an authorized federal gaming portal and is licensed for games of chance in other countries throughout Latin America. Aganar has been operating in the licensed Lottery market in Mexico since 2007 and is licensed to sell Mexican National Lottery draw games, instant win tickets, and other games of chance online with access to a federally approved online casino and sportsbook gaming license and additionally issues a proprietary scratch lottery game in Mexico under the brand name Capalli. The opening balance of the acquirees has been included in our consolidated balance sheet since the date of the acquisition. Since the acquirees' financial statements were denominated in Mexican pesos, the exchange rate of 22.0848 pesos per dollar was used to translate the balances.

The net purchase price was allocated to the assets and liabilities acquired as per the table below. Goodwill represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The fair values of the acquired intangible assets were determined using Level 3 inputs which were not observable in the market.

The total purchase price of $10,989,691, consisting of cash of $10,530,000 and 687,439 shares of common stock of AutoLotto at $0.67 per share. The total consideration transferred was approximately $10,055,214, reflecting the purchase price, net of cash on hand at Global Gaming and the principal amount of certain loans acquired. The purchase price is for an 80% ownership interest and is therefore grossed up to $13,215,843 to reflect the 20% minority interest in the acquirees. The purchase price was allocated to the identified tangible and intangible assets acquired based on their estimated fair values at the acquisition date as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Cash | $517460 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 34134 |
| &nbsp;&nbsp;&nbsp;Prepaids | 5024 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 2440 |
| &nbsp;&nbsp;&nbsp;Other assets, net | 65350 |
| &nbsp;&nbsp;&nbsp;Intangible assets | 8590000 |
| &nbsp;&nbsp;&nbsp;Goodwill | 4940643 |
| **Total assets** | $14155051 |
| &nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | $(387484) |
| &nbsp;&nbsp;&nbsp;Customer deposits | (134707) |
| &nbsp;&nbsp;&nbsp;Related party loan | (417017) |
| **Total liabilities** | $(939208) |
| **Total net assets of Acquirees** | $13215843 |

---

Goodwill recognized in connection with the acquisition - is primarily attributed to an anticipated growing lottery market in Mexico that is expected to be achieved from the integration of these Mexican entities. None of the goodwill is expected to be deductible for income tax purposes.

Following are details of the purchase price allocated to the intangible assets acquired.

---

| | |
|:---|:---|
| **Category** | **Fair Value** |
| Customer relationships | $410000 |
| Gaming licensees | 4020000 |
| Trade names and trademarks | 2540000 |
| Technology | 1620000 |
| **Total Intangibles** | $**8590000** |

---

S&MI Ltd Acquisition

The legal name of S&MI Ltd. has been changed to Sports.com Media Group Ltd.

On September 1, 2024, the Company finalized an agreement for the acquisition of S&MI, Ltd. (the "Share Purchase and Sale Agreement"), wherein the Purchase Price was the total equivalent of One Million Dollars USD ($1,000,000.00) in restricted stock units of common shares in the Company (the "Payment-In-Kind") fixed at Thirty Dollars USD ($30.00) per share (the "Fixed Price").

The opening balance of S&MI Ltd has been included in our consolidated balance sheet since the date of the acquisition. Since the S&MI Ltd.'s financial statements were denominated in British Pounds, the exchange rate of 1.3141 pounds per dollar was used to translate the balances.

The net purchase price was allocated to the assets and liabilities acquired as per the table below. Goodwill represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The fair values of the acquired intangible assets were determined using the valuation analysis performed by a third-party valuation firm.

The total purchase price of $1,000,000 consists of 33,333 shares of common stock at $30.00 per share. The total consideration transferred after net assets and assumption of long-term debt was approximately $440,000, reflecting the purchase price, net of cash on hand at S&MI Ltd and the principal amount of certain loans assumed by the Company. The purchase price is for a 100% ownership interest. The purchase price was allocated to the identified tangible and intangible assets acquired based on their estimated fair values at the acquisition date as follows:

Schedule of Identified Tangible and Intangible Asset Acquired

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 124928 |
| &nbsp;&nbsp;&nbsp;Other Receivables | 50817 |
| &nbsp;&nbsp;&nbsp;Intangible assets | 234000 |
| &nbsp;&nbsp;&nbsp;Goodwill | 1315000 |
| **Total assets** | $1724745 |
| &nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | $(175543) |
| &nbsp;&nbsp;&nbsp;Director's Loan | (558632) |
| **Total liabilities** | $(734175) |
| **Total net assets of Acquiree** | $990570 |

---

**<u>Spektrum Ltd Acquisition</u>**

The Company completed the acquisition of Spektrum Ltd from PlusEvo Ltd through a signed Share Purchase Agreement (SPA) on March 13, 2025. This <u>acquisition</u>, valued at $1.5 million in common stock at $30 per share, supports Lottery.com's strategic expansion and the development of Lottery.com International. The acquisition provides the Company with a compliant platform to support lottery, sweepstakes and social gaming operations in dozens of international jurisdictions. The platform has been recorded as an Intangible Asset in the Technology category. Amortization will begin when the platform is placed in service which is expected to be during the fourth quarter of 2025.

**DotCom Ventures Inc. Acquisition**

The Company completed the acquisition of 51% of DotCom Ventures Inc ["DVI"] from Concerts Inc. through a signed Share Purchase Agreement (SPA) on July 25, 2025. Valuation for DVI is $10 million. At closing, the Company made an in-kind payment of $5.1 million of common stock for 51,000 shares of DVI. The Agreement contains a Call Option, which provides the Company with the right to purchase up to the entire share capital of DVI as follows: (i) Ten Thousand (10,000) shares for One Million Dollars ($1,000,000.00) cash by not later than December 31, 2025; (ii) Fifteen Thousand (15,000) shares for One Million Five Hundred Thousand Dollars ($1,500,000.00) cash by not later than May 31, 2026; (iii) Five Thousand (5,000) shares for Five Hundred Thousand Dollars ($500,000.00) cash by not later than December 31, 2025; and (iv) Twenty Thousand (20,000) shares for Two Million Dollars ($2,000,000.00) in either shares or cash by not later than December 31, 2025 (the "Final Payment"). Unless extended by the parties in writing, portions of the Call Option will be revoked automatically upon the expiration of the funding deadlines set forth above without full payment of the corresponding funding obligation to DVI.

Primary assets acquired include the domain names Concerts.com and Ticketstub.com along with social media accounts and trademarks associated with each and have been recorded as Intangible Assets in the Domain Name category. Amortization began during the third quarter of 2025. There are encumbrances against the domain names and all associated and ancillary assets for Secured Promissory Notes totaling $1,500,000 that mature in December of 2025. The Company must pay the Secured Notes to remove the encumbrances.

**Galaxy Racer Holdings Limited Asset Acquisition**

The Company completed an asset acquisition from Galaxy Racer Holdings Limited [GXR] on August 1, 2025. Assets consisting of active users, software applications, integrations, modules, and specifications for transfer by GXR to a new entity. Valuation for these assets is $10 million. The Company made an in-kind payment of $5.1 million of common stock for 51% of the new entity and transferred 49% of the equity of the new entity to Galaxy Racer Holdings Limited.

Assets acquired have been recorded as Intangible Assets in the Technology category and amortization is anticipated to begin in the fourth quarter of 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **Global Gaming** | **DotCom Ventures Inc.** | **Galaxy Racer** |
| Noncontrolling Interest June 30, 2025 | (798416) |  |  |
| Noncontrolling interest – acquisitions |  | 4900000 | 4900000 |
| Income/ (Loss) attributable to noncontrolling interest | (47813) |  | (59784) |
| Noncontrolling Interest September 30, 2025 | $745882 | $4900000 | $4840216 |

---

**Note 4. Property and Equipment, net**

Property and equipment, net as of September 30, 2025 and December 31, 2024, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Computers and equipment | $115038 | $123911 |
| Furniture and fixtures | 18582 | 16900 |
| Software | 2026200 | 2026200 |
| Property and equipment | 2159820 | 2167011 |
| Accumulated depreciation | (2157989) | (2154887) |
| Property and equipment, net | $1831 | $12124 |

---

Depreciation expense for the three months ended September 30, 2025 was $830 and was $2,095 for the three months ended September 30, 2024.

**Note 5. Prepaid Expenses**

Prepaid expenses consist primarily of advertising credits from two top tier media organizations that operate in the United States. The advertising credits were obtained in return for warrants, shares of common stock and shares of preferred stock. The agreements do not specify a time period for utilizing these credits and there is no requirement to provide cash or other consideration in connection with utilizing them. The balance can be utilized at any time at the mutual consent of the parties. The Company expects to begin utilizing these credits in the second half of 2025 and anticipates fully utilizing all of them by the end of 2026. Accordingly, they are presented as current assets.

**Note 6. Notes Receivable**

On March 22, 2022, the Company entered into a three-year secured promissory note agreement with a principal amount of $2,000,000. The note bears simple interest at the rate of approximately 3.1% annually, due upon maturity of the note. The note is secured by all assets, accounts, and tangible and intangible property of the borrower and can be prepaid any time prior to its maturity date. As of September 30, 2025, the entire $2,000,000 in principle was outstanding.

This note was received in consideration for a portion of the development work that the Company performed for the borrower who had intended to use the Company's technology to launch its own online game in a jurisdiction outside the U.S., where the Company is unlikely to operate.

**Note 7. Write-Off of Goodwill and Intangibles**

As required by ASC 350 Intangibles – Goodwill and Other Impairment and ASC 360 – Impairment Testing: Long-Lived Assets, in connection with preparing the consolidated financial statements for the period ended December 31, 2024, management conducted a review as to whether there are conditions or circumstances that may indicate the impairment of its long-lived assets, goodwill and other indefinite-lived intangible assets.

The Company reviewed the goodwill and intangibles acquired in the acquisitions of TinBu, LLC and Global Gaming Enterprises, Inc., the domain names and software purchased from third parties, and software developed in-house. Each of TinBu, Global Gaming, and Lottery.com is considered a reporting unit for application of the annual review for potential impairment.

The Company performed a valuation of each of the reporting units described above, using discounted cash flow methodologies and estimates of fair market value. Given the results of the quantitative assessment, the Company determined that the goodwill for the TinBu and Global Gaming reporting units was impaired. For the year ended December 31, 2023, the Company recognized goodwill impairment charges of $5.65 million for the TinBu reporting unit and $1.06 million for the Global Gaming reporting unit. The total impairment charges related to goodwill were $6.71 million. In addition, it was determined that there was an impairment of certain intangible assets related to Global Gaming. For the year ended December 31, 2023, the Company recorded impairment charges of $488 thousand to trade names and trademarks and $312 thousand to technology acquired from Global Gaming. The total impairment charges to intangible assets were $800 thousand.

Additionally, in connection with completion of the tax provision for 2023, a transaction which had been recorded for the year ended December 31, 2021 was reevaluated and a decision was made that it should not have been recorded and should be reversed. Specifically, at the end of 2021, a decision was made to increase goodwill related to the acquisition of Global Gaming Enterprises, Inc. due to an incorrect conclusion that "an adjustment should be made to goodwill for the recording of related deferred tax liabilities as the Company released $1.6 million of valuation allowance since the additional deferred tax liabilities represent a future source of taxable income". This approach improperly accelerated the effects of future amortization of intangible assets related to Global Gaming, resulting in inappropriately releasing part of a valuation allowance for deferred taxes which is not in compliance with GAAP. At that time, the Company recorded an increase to goodwill for Global Gaming and an income tax benefit each in the amount of $1,653,067. We reversed this transaction by reducing goodwill for Global Gaming by $1,653,067 and increased accumulated deficit to remove the income tax benefit which was incorrectly recorded for year ended December 31, 2021.

Similarly, the Company performed an impairment analysis for the three months ended September 30, 2024 and as a result of that analysis it was determined that impairment charges were necessary. Impairments of goodwill for $1.6 million against Tinbu's goodwill and $1.9 million against Global Gaming's goodwill were recorded and an impairment of $817,000 against intangibles of Global Gaming was recorded. This consisted of impairments against Trade Names & Technology in the amount of $547,000, Technology in the amount of $119,000, and Customer Relationships in the amount of $150,000. There were no other impairments identified or recorded for the year ended December 31, 2024.

**Note 8. Intangible assets, net**

Gross carrying values and accumulated amortization of intangible assets:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
|  | <br>Useful<br>Life | Gross<br>Carrying<br>Amount |<br>Accumulated<br>Amortization |<br>Net | Gross<br>Carrying<br>Amount |<br>Accumulated<br>Amortization |<br>Net |
| Amortizing intangible assets |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Customer relationships | 6 years | $1352200 | $(1328283) | $23917 | $1352200 | $(1318033) | $34167 |
| &nbsp;&nbsp;&nbsp;Trade name | 6 years | 2577000 | (2411583) | 167667 | 2577000 | (2314769) | 262231 |
| &nbsp;&nbsp;&nbsp;Technology | 6 years | 14754800 | (2864444) | 11924088 | 3254800 | (2737567) | 517233 |
| &nbsp;&nbsp;&nbsp;Software agreements | 6 years | 14450000 | (13412500) | 625000 | 14450000 | (11545000) | 2905000 |
| &nbsp;&nbsp;&nbsp;Gaming license | 6 years | 4020000 | (2847500) | 1306500 | 4020000 | (2345000) | 1675000 |
| &nbsp;&nbsp;&nbsp;Internally developed software | 2 - 10<br> years | 3316923 | (1716381) | 1600542 | 3316923 | (1450754) | 2342969 |
| &nbsp;&nbsp;&nbsp;Domain name | 15 years | 16935000 | (2474278) | 14460722 | 6935000 | (2016417) | 4832565 |
|  |  | $57405923 | $(27054969) | $30108436 | $35905923 | $(23727540) | $12569165 |

---

Amortization expense with respect to intangible assets for the three months ended September 30, 2025 and 2024 totaled $1,179,302 and $1,205,819, respectively, and for the nine months ended September 30, 2025 and 2024 totaled $3,277,600 and $2,610,050, respectively, which is included in depreciation and amortization in the Statements of Operations. The Company determined that there was an impairment of long-lived assets of $412,450 during the year ended December 31, 2022, which relates to a project no longer being pursued by the Company. In connection with the annual review of goodwill and intangibles for the year ended December 31, 2023, the Company determined that it was necessary to write down goodwill by $5,650,000 for TinBu and $1,060,200 for Global Gaming. The total impairment charges related to goodwill were $6,710,200 for the year ended December 31, 2023. It was also determined that there was impairment of certain intangible assets related to Global Gaming. As a result, for the year ended December 31, 2023 the Company recorded impairment charges of $488,300 to trade names and trademarks and $311,500 to technology acquired from Global Gaming. The total impairment charges to intangible assets for the year ended December 31, 2023 were $798,800.

Similarly, the Company performed an impairment analysis for the three months ended September 30, 2024 and as a result of that analysis it was determined that impairment charges were necessary. Impairments of goodwill for $1.6 million against Tinbu's goodwill and $1.9 million against Global Gaming's goodwill were recorded and $817,000 against intangibles of Global Gaming was recorded. This consisted of impairments against Trade Names & Technology in the amount of $547,000, Technology in the amount of $119,000, and Customer Relationships in the amount of $150,000. There were no other impairments identified or recorded for the year ended December 31, 2024.

Estimated amortization expense for years of useful life remaining is as follows:

---

| | |
|:---|:---|
| **Years ending December 31,** | **Amount** |
| 2025 | $1345969 |
| 2026 | 2864430 |
| 2027 | 1665907 |
| 2028 | 1329691 |
| 2029 | 1310608 |
| Thereafter | 21591831 |
|  | $30108436 |

---

The Company had software development costs of $476,800 related to projects not placed in service as of both September 30, 2025 and December 31, 2024, which is included in intangible assets in the Company's consolidated balance sheets. There is an additional $21.5 million in Technology acquired in connection with acquisitions of subsidiaries that have not yet been placed in service and accordingly have not been amortized during the three months ended September 30, 2025. Amortization will be calculated using the straight-line method over the appropriate estimated useful life when the assets are put into service.

**Note 9. Notes Payable and Convertible Debt**

*<u>Secured Convertible Note</u>*

In connection with the Lottery.com domain purchase, the Company issued a secured convertible promissory note ("Secured Convertible Note") with a fair value of $935,000 that matured in March 2021. The Company used the fair value of the Secured Convertible Note to value the debt instrument issued. In March 2021, the Secured Convertible Note was fully converted into 6,991 shares of the Company's common stock.

*<u>Series A Notes</u>*

From August to October 2017, the Company entered into seven Convertible Promissory Note Agreements with unaffiliated investors for an aggregate amount of $821,500. The notes bear interest at 10% per year, are unsecured, and were due and payable on June 30, 2019. The parties verbally agreed to extend the maturity of the notes to December 31, 2021. As of both June 30, 2025 and December 31, 2024, the balance due on these notes was $771,500. The Company could not prepay the loan without consent from the noteholders. As of December 31, 2021, there were no Qualified Financing events, that trigger conversion, this included the TDAC combination. As of both September 30, 2025, and December 31, 2024 the remaining outstanding balance of $771,500 relates to notes that are no longer convertible which have been reclassified to Notes Payable as per the agreement. Accrued interest on the Series A notes payable was $318,909 on September 30, 2025.

*<u>Series B Notes</u>*

From November 2018 to December 2020, the Company entered into multiple Convertible Promissory Note agreements with unaffiliated investors for an aggregate amount of $8,802,828. The notes bear interest at 8% per year, are unsecured, and were due and payable on dates ranging from December 2020 to December 2021. For those notes maturing on or before December 31, 2020, the parties entered into amendments in February 2021 to extend the maturity of the notes to December 21, 2021. The Company could not prepay the loans without consent from the noteholders.

During the year ended December 31, 2021, the Company entered into multiple Convertible Promissory Note agreements with unaffiliated investors for an aggregate amount of $38,893,733. The notes bear interest at 8% per year, are unsecured, and are due and payable on dates ranging from December 2021 to December 2022. The Company could not prepay these loans without consent from the noteholders. As of December 31, 2021, the Series B Convertible Notes had a balance of $0.

During the year ended December 31, 2021, the Company entered into amendments with six of the Series B promissory noteholders to increase the principal value of the notes. The additional principal associated with the amendments totaled $3,552,114. The amendments were accounted for as a debt extinguishment, whereby the old debt was derecognized and the new debt was recorded at fair value. The Company recorded loss on extinguishment of $71,812 as a result of the amendment which was reported in "Other expenses" on the consolidated statements of operations and comprehensive loss.

As of October 29, 2021, all except $185,095 of the series B convertible notes were converted into 48,823 shares of Lottery.com common stock after accounting for the 1:20 reverse stock split that took place on August 9, 2023. December 31, 2021, the remaining notes comprising the outstanding balance of $185,095 were no longer convertible and were reclassified to notes payable *See Note 9.* Accrued interest on this note payable as of September 30, 2025 was $90,723.

*<u>Short term loans</u>*

On June 29, 2020, the Company entered into a Promissory Note with the U.S. Small Business Administration ("SBA") for $150,000. The loan has a thirty-year term and bears interest at a rate of 3.75% per annum. Monthly principal and interest payments were deferred for twelve months after the date of disbursement. The loan may be prepaid at any time prior to maturity with no prepayment penalties. The Promissory Note contains events of default and other provisions customary for a loan of this type. As of both September 30, 2025 and December 31, 2024, the balance of the loan was $150,000. As of September 30, 2025, the accrued interest on this note was $7,877.

In August 2020, the Company entered into three separate note payable agreements with three individuals for an aggregate amount of $37,199. The notes bear interest at a variable rate, are unsecured, and the parties have verbally agreed the notes would be due upon a qualifying financing event. As of both September 30, 2025 and December 31, 2024, the balance of the loans totaled $13,000.

*<u>Notes payable</u>*

On August 28, 2018, in connection with the purchase of the entire membership interest of TinBu, the Company entered into several notes payable for $12,674,635 with the sellers of the TinBu and a broker involved in the transaction. The notes had an interest rate of 0%, and original maturity date of January 25, 2022. The notes payable were modified during 2021 to extend the maturity to June 30, 2022 and change the interest rate to include simple interest of 4.1% per annum effective October 1, 2021. Each of the amendments were evaluated and determined to be loan modifications and accounted for accordingly.

As of both September 30, 2025 and December 31, 2024, the balance of the notes was $2,336,081. Accrued interest on these notes was $386,527 on September 30, 2025.

As of September 30, 2025, we had $2,199,266 of convertible debt outstanding. A portion of this debt has matured and is theoretically in default.

*<u>Convertible Note</u>*

On September 22, 2025, the Company entered into a convertible note with Generating Alpha Ltd. for $350,000. The note does not bear interest. The Note is issued pursuant to certain Securities Purchase Agreement, Warrant Agreement and Registration Rights Agreement dated as of September 22, 2025. An Original Issue Discount ("OID") of twenty (20%) percent was charged by the lender and other fees of $10,000 were incurred and expensed in September. The OID was recorded as a discount to the face amount of the note and will be amortized until maturity. Because the amortization for eight days during the three months ending September 30, 2025, is immaterial, the Company will begin recording amortization of the discount in the fourth quarter.

**Note 10. Stockholders' Equity**

*Reverse Split*

 

On August 28, 2025, the Company amended its Charter to implement, effective at 5:30 p.m., Eastern time, a 1-for-10 Reverse Stock Split. At the effective time of the Reverse Stock Split, every 10 shares of common stock either issued and outstanding or held as treasury stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share. Stockholders who would have otherwise been entitled to fractional shares of common stock as a result of the Reverse Stock Split received a cash payment in lieu of receiving fractional shares. In addition, as a result of the Reverse Stock Split, proportionate adjustments will be made to the number of shares of common stock underlying the Company's outstanding equity awards, the number of shares issuable upon the exercise of the Company's outstanding warrants and the number of shares issuable under the Company's equity incentive plans and certain existing agreements, as well as the exercise, grant and acquisition prices of such equity awards and warrants, as applicable. The Reverse Stock Split was approved by the Company's stockholders at the Company's 2024 Annual Meeting of Stockholders on February 20, 2025 and was subsequently approved by the Board of Directors on August 13, 2025.

 

Previously on August 9, 2023, the Company amended its Charter to implement, effective at 5:30 p.m., Eastern time, a 1-for-20 Reverse Stock Split. At the effective time of the Reverse Stock Split, every 20 shares of common stock either issued and outstanding or held as treasury stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share. Stockholders who would have otherwise been entitled to fractional shares of common stock as a result of the Reverse Stock Split received a cash payment in lieu of receiving fractional shares. In addition, as a result of the Reverse Stock Split, proportionate adjustments will be made to the number of shares of common stock underlying the Company's outstanding equity awards, the number of shares issuable upon the exercise of the Company's outstanding warrants and the number of shares issuable under the Company's equity incentive plans and certain existing agreements, as well as the exercise, grant and acquisition prices of such equity awards and warrants, as applicable. The Reverse Stock Split was approved by the Company's stockholders at the Company's 2023 Annual Meeting of Stockholders on August 7, 2023 and was subsequently approved by the Board of Directors on August 7, 2023.

The effects of the Reverse Stock Splits have been reflected in this Quarterly Report on Form 10Q for all periods presented.

*Preferred Stock*

Pursuant to the Company's charter, the Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.001 per share. Our board of directors has the authority without action by the stockholders, to designate and issue shares of preferred stock in one or more classes or series, and the number of shares constituting any such class or series, and to fix the voting powers, designations, preferences, limitations, restrictions and relative rights of each class or series of preferred stock, including, without limitation, dividend rights, conversion rights, redemption privileges and liquidation preferences, which rights may be greater than the rights of the holders of the common stock. As of September 30, 2025, there were no shares of preferred stock issued and outstanding.

*Common Stock*

Our Charter authorizes the issuance of an aggregate of 500,000,000 shares of Common Stock, par value $0.001 per share. The shares of Common Stock are duly authorized, validly issued, fully paid and non-assessable. Our purpose is to engage in any lawful act or activity for which corporations may now or hereafter be organized under the DGCL. Unless our Board determines otherwise, we will issue all shares of our common stock in an uncertificated form. Holders of our Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. The holders of Common Stock do not have cumulative voting rights in the election of directors. Upon our liquidation, dissolution or winding up and after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of our Common Stock will be entitled to receive pro rata our remaining assets available for distribution.

As of September 30, 2025 and December 31, 2024, 4,391,123 and 1,832,685 shares of Common Stock, respectively, were outstanding. During the three months ended September 30, 2025, the Company issued the following shares of common stock.

---

| | |
|:---|:---|
| Schedule of Common Stock |  |
| Conversion of debt to equity | 219226 |
| Stock issued in lieu of cash | 397377 |
| Stock issued for acquisitions | 340000 |
| Issuance of stock as part of stock purchase agreement | 191581 |
| **Total** | **1148184** |

---

 

*Public Warrants*

The Public Warrants became exercisable 30 days after the Closing; the Company has an effective registration statement under the Securities Act covering the shares of common stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The S-1 registration became effective November 24, 2021. The Public Warrants will expire five years after October 29, 2021, which was the completion of the TDAC Combination or earlier upon redemption or liquidation.

The Company may redeem the Public Warrants:

● in whole and not in part;

● at a price of $0.01 per warrant;

● upon a minimum of 30 days' prior written notice of redemption;

● if, and only if, the last sale price of the Company's common stock equals or exceeds $3,200.00 per share for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and

● if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying such warrants at the time of redemption and for the entire 30 -day trading period referred to above and continuing each day thereafter until the date of redemption.

If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a "cashless basis," as described in the warrant agreement. These warrants cannot be net cash settled by the Company in any event.

After giving effect to the Business Combination, as of September 30, 2025 there were Public Warrants outstanding for the issuance of 20,125,000 shares of common stock of the Company, which total includes previously issued warrants of AutoLotto, now warrants of Lottery.com Inc. In addition other warrants from 2015 and 2018 are exercisable for the purchase of an aggregate of 19,784 shares of common stock of the Company, the majority of which will expire in October of 2025.

An adjustment was made to the Company's warrants based on the 1-for-10 split ratio pursuant to the August 28, 2025 stock split. Previously an adjustment was made to the Company's warrants based on the 1-for-20 split ratio pursuant to the August 09, 2023 stock split. The adjustments to warrants were made automatically. The number of shares of common stock issued subject to stock options, warrants, or convertible securities was automatically decreased by the split ratio and the exercise price or conversion ratio was automatically proportionately increased by the same split ratio.

*Private Warrants*

Private warrants of TDAC issued before the business combination were forfeited and did not transfer to the surviving entity.

*Common Stock Warrants*

The Company did not issue any warrants during the three months ended September 30, 2025. During the year ended December 31, 2024, the Company issued 45,837 warrants to a third-party consulting firm and 199,671 warrants as part of the commitment fee pursuant to the Stock Purchase Agreement with Generating Alpha. The 24,415 outstanding warrants issued prior to January 1, 2023 are fully vested and have a weighted average remaining contractual life of 2.7 years. The 245,506 warrants issued during 2024 are fully vested and have a weighted average remaining contractual life of 3.5 years. The Company did not incur any expense for the three months ended September 30, 2025 and recorded expenses of $693,397 for the year ended December 31, 2024.

Schedule of Common Stock Warrant

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| | | | | |
|:---|:---|:---|:---|:---|
|  |<br><br>**Number of**<br>**Shares** |<br>**Weighted**<br>**Average**<br>**Exercise**<br>**Price** | **Weighted**<br>**Average**<br>**Remaining**<br>**Contractual**<br>**Life (years)** |<br>**Aggregate**<br>**Intrinsic**<br>**Value** |
| Outstanding at December 31, 2024 | 247948 | 0.29 | 3.74 | $1893794 |
| Granted |  |  |  |  |
| Exercised |  |  |  |  |
| Forfeited/cancelled | - | - | - |  |
| Outstanding at September 30, 2025 | 247988 | $0.29 | 3.23 | $2710316 |

---

 

*Earnout Shares*

As detailed in *Note 4* - as part of the TDAC Combination as of December 31, 2021 a total of 500,000 Earnout Shares were eligible for issuance until December 31, 2022. Conditions for the earnout were not met and the potential earnout shares were forfeited on December 31, 2022.

**Note 11. Stock-based Compensation**

**Expense** *2015 Stock Option Plan*

Prior to the closing of the Business Combination, AutoLotto had the AutoLotto, Inc. 2015 Stock Option/Stock Issuance Plan (the "2015 Plan") in place. Under the 2015 Plan, incentive stock options may be granted at a price not less than fair market value of the common stock (110% of fair value to holders of 10% or more of voting stock). If the Common Stock is at the time of grant listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. If the Common Stock is at the time not listed on any Stock Exchange, then the Fair Market Value shall be determined by the Board of Directors or the Committee acting in its capacity as administrator of the Plan after taking into account such factors as the Plan Administrator shall deem appropriate. The maximum number of shares of Common Stock which may be issued over the term of the Plan shall not exceed Two Thousand Two-Hundred and Fifty (2,250). Options are exercisable over periods not to exceed 10 years (five years for incentive stock options granted to holders of 10% or more of voting stock) from the date of grant. Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more installments over the Participant's period of Service or upon attainment of specified performance objectives. The Plan Administrator may not impose a vesting schedule upon any option grant or the shares of Common Stock subject to that option which is more restrictive than twenty percent (20%) per year vesting, with the initial vesting to occur not later than one (1) year after the option grant date. However, such limitation shall not be applicable to any option grants made to individuals who are officers of the Corporation, non-employee Board members or independent consultants.

*2021 Equity Incentive Plan*

In connection with the Business Combination, our board of directors adopted, and our stockholders approved, the Lottery.com 2021 Incentive Award Plan (the "2021 Plan") under which 61,652 shares of Class A common stock were initially reserved for issuance. The 2021 Plan allows for the issuance of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other stock or cash-based awards. The number of shares of the Company's Class A common stock available for issuance under the 2021 Plan increases annually on the first day of each calendar year, beginning on and including January 1, 2022 and ending on and including January 1, 2031 by a number of shares of Company common stock equal to five percent (5%) of the total outstanding shares of Company common stock on the last day of the prior calendar year. Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no such increase in the share reserve for such year or that the increase in the share reserve for such year will be a lesser number of shares of Company common stock than would otherwise occur pursuant to the preceding sentence.

*Stock Options*

The Company did not issue any new stock options during the quarter ended September 30, 2025. The following table shows stock option activity for the year ended December 31, 2024 and quarter ended September 30, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |<br>**Shares**<br>**Available**<br>**for Grant** |<br><br>**Outstanding**<br>**Stock Awards** |<br>**Average**<br>**Exercise**<br>**Price** |<br>**Weighted**<br>**Remaining**<br>**Contractual**<br>**Life (years)** | **Weighted**<br>**Average**<br>**Aggregate**<br>**Intrinsic**<br>**Value** |
| Outstanding at December 31, 2024 | 101857 | 101857 | $19.25 | 2.8 | $944544 |
| Granted |  |  |  |  |  |
| Exercised |  |  |  |  |  |
| Forfeited/cancelled | - | - | - | - |  |
| Outstanding at September 30, 2025 | 101857 | 101857 | $19.25 | 2.7 | $944544 |

---

*Restricted awards*

The Company awards restricted stock to employees, directors, and certain outside consultants from time to time which are granted with various vesting terms including immediate vesting, service-based vesting, and performance-based vesting. In accordance with ASC 718, the Company has classified the restricted stock as equity.

For such issuances, the measurement date is the date of grant, and the Company recognizes compensation expense for the grant of the restricted shares, over the service period for the restricted shares that vest over a period of time and for performance-based vesting awards, the Company recognizes the expense when management believes it is probable the performance condition will be achieved. As of September 30, 2025 and December 31, 2024, unrecognized stock-based compensation associated with the restricted stock awards is $0 and $0 respectively.

The Company had restricted stock activity summarized as follows:

---

| | | |
|:---|:---|:---|
|  |<br>**Number of**<br>**Shares** | **Weighted**<br>**Average**<br>**Grant**<br>**Fair Value** |
| Outstanding at December 31, 2024 | 310128 | 1.40 |
| &nbsp;&nbsp;&nbsp;Granted | - | - |
| &nbsp;&nbsp;&nbsp;Vested | - | - |
| &nbsp;&nbsp;&nbsp;Forfeited/cancelled | 43285 |  |
| Restricted shares unvested at September 30, 2025 | 266693 | $1.05 |

---

**Note 12. Income Taxes**

We are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. The tax returns, however, are subject to routine reviews by the various federal and state taxing authorities in the jurisdictions in which we file tax returns. As part of these reviews, a taxing authority may disagree with respect to the income tax positions taken by us ("uncertain tax positions") and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized.

**Note 13. Commitments and Contingencies**

*<u>Indemnification Agreements</u>*

The Company enters into indemnification provisions under its agreements with other entities in its ordinary course of business, typically with business partners, customers, landlords, lenders and lessors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company's activities or, in some cases, as a result of the indemnified party's activities under the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of September 30, 2025 and December 31, 2024.

*<u>Digital Securities</u>*

In 2018, the Company commenced an offering and issuance (the "LDC Offering") of 285 million revenue participation interests (the "Digital Securities") of the net raffle revenue of LDC Crypto Universal Public Company Limited ("LDC"). The Digital Securities do not have any voting rights, redemption rights, or liquidation rights, nor are they tied in any way to other equity securities of LDC or the Company nor do they otherwise hold any rights that a holder of equity securities of LDC or the Company may have or that a holder of traditional equity securities or capital stock may have. Rather, each of the holders of the Digital Securities has a pro rata right to receive 7% of the net raffle revenue. If the net raffle revenue is zero for a given period, holders of the Digital Securities are not eligible to receive any cash distributions from any raffle sweepstakes of LDC for such period. For the years ended December 31, 2024, December 31, 2023, and December 31, 2022, the Company did not incur any obligations to the holders of the outstanding Digital Securities. For the year ended December 31, 2021, the Company incurred an obligation to pay an aggregate amount of approximately $5,632 to holders of the outstanding Digital Securities. The Company did not satisfy those obligations during the three months ended September 30, 2025 or the years ended December 31, 2024, 2023, 2022, or 2021.

*<u>Leases</u>*

The Company leased office space in Spicewood, Texas which expired January 31, 2024 and had continued to utilize that facility on a month-to-month basis with monthly rent of $1,669 per month until August 31, 2024. On September 1, 2024, the Company moved its headquarters to Fort Worth, Texas under a membership agreement with monthly cost of $154. Additionally, the Company had leased retail space in Waco, Texas which expired on December 31, 2024 with monthly rent of $2,434. The space in Waco Texas was retained on a month to month basis until April 30, 2025. The Company also leases a campus in Boca Raton Florida for $25,000 per month under a 12 month lease agreement that commenced on August 1, 2024 and continues thru July 31, 2025. The campus in Boca Raton, Florida has been retained on a month to month basis. For the three months ended September 30, 2025 and 2024 rent expense was $24,426 and $12,309, respectively.

As of September 30, 2025, future minimum rent payments due under non-cancellable leases with initial are as follows:

---

| | |
|:---|:---|
| **Years ending December 31,** | **Amount** |
| 2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0 |
| Thereafter | - |
|  | $0 |

---

*Litigation and Other Loss Contingencies*

As of September 30, 2025, there were no pending proceedings that are deemed to be materially detrimental. The Company is a party to legal proceedings in the ordinary course of its business. The Company believes that the nature of these proceedings is typical for a company of its size and scope. See *Part II, Item 1* for additional information.

**Note 14. Related Party Transactions**

The Company has entered into transactions with related parties. The Company regularly reviews these transactions; however, the Company's results of operations may have been different if these transactions were conducted with nonrelated parties.

Christopher Gooding, appointed as a director of the Company on August 10, 2023, is an attorney licensed in the United Kingdom. He previously provided limited consulting services to the Company's outside general counsel on select U.K. legal matters that could potentially impact the Company. These consulting services began in February 2024, and Mr. Gooding was compensated separately from his director compensation, receiving a total of $264,000 in 2024. To maintain his independence as a director, Mr. Gooding ceased providing consulting services to the Company's outside general counsel as of June 30, 2025. Consequently, his compensation for consulting services during the three months ended September 30, 2025, was $0. Other than matters where Mr. Gooding is a named defendant alongside the Company, he provides opinions on all Board matters solely in his capacity as an independent director, without additional compensation from the Company or its outside general counsel.

During the quarter ended September 30, 2024, the Company entered into a borrowing arrangement with Robert Stubblefield, the Company's Chief Financial Officer, to provide funding for certain operating expenses of the Company. At September 30, 2024 the Loan amount was $57,682. Additional amounts were provided by Mr. Stubblefield during the quarter ended December 31, 2024. The loan amount at year end was $67,941. The Loan was issued at zero percent interest. In February of 2025, the Company granted shares of common stock which repaid the loan in full.

**Note 15. Subsequent Events**

**Super League Kerela Streaming Launch**

The Company successfully launched its first-ever live streaming event by securing exclusive streaming rights to the Super League Kerala ("SLK") in India on the Sports.com platform. SLK previously reached over 131 million viewers during its inaugural 33-match season. The streaming partnership is augmented by a linear broadcast collaboration with Sony India's TEN 2 channel, reflecting the Company's intent to build digital and traditional distribution capabilities as part of its global sports media strategy. So far this season, SLK content has garnered more than 15 million views through Sports.com and related social media interactions

This distribution initiative supports the Company's broader growth objectives in the high-growth Indian and Middle East/North Africa (MENA) sports markets; however, actual monetization and audience retention outcomes remain subject to execution risks, market adoption and the timing of sponsorships and advertising conversions.

**Letters of Intent**

On September 18, 2025, the Company signed an extension to the Letter of Intent with respect to Boca Sports Garden, LLC, also known as the David Lloyd All-Sports Arena in Boca Raton, Florida. On or about July 9, 2025, the Company previously announced the signing of an LOI for a proposed significant partnership with David Lloyd, a prominent figure in British sports and wellness, to acquire the rights of the All-Sports Arena in Boca Raton, Florida, valued at $14 million. The Company has yet not entered into a definitive purchase agreement to complete the proposed transaction.

On September 24, 2025, the Company signed a Letter of Intent to acquire a 51 % controlling stake in a newly formed entity holding the assets of Racing Women Limited ("Racing Women"), a women's motorsport platform, at a valuation of US $1 million, with options for full ownership. The proposed acquisition includes Racing Women's intellectual property and global rights and aligns with the Company's strategy to expand its motorsports portfolio and enhance the reach of its existing brands. The Company cautions that no assurance can be given as to the timing or magnitude of revenue or cost benefits associated with the transaction, and the ultimate impact on operating results and financial position is subject to customary closing conditions and risks inherent in executing strategic acquisitions. The Company has yet not entered into a definitive purchase agreement to acquire the assets of Racing Women Limited.

On November 13, 2025, the Company entered into a binding Letter of Intent to acquire Triggy.AI, a cloud-native artificial intelligence technology firm specializing in dynamic advertising formats and gamified user engagement. Subject to approval by the Company's Board, the transaction is expected to close on or before November 28, 2025, and the Company anticipates the acquisition will strengthen its technology stack by integrating Triggy's AI engine across its existing digital asset portfolio (including Sports.com, Lottery.com and Concerts.com).

The Company expects that the integration of Triggy.AI's platform will contribute toward higher levels of user engagement, increased dwell time on its platforms and more predictable recurring revenue streams through enterprise-client SaaS-style monetization. While no purchase price or financing terms were disclosed in the announcement, the acquisition remains subject to customary closing conditions and the effect on future financial results and balance sheet presentation upon completion is yet to be determined. The Company has yet not entered into a definitive purchase agreement to acquire Triggy.AI

**Nasdaq Deficiency Resolution**

On October 16, 2025, the Company achieved a material regulatory milestone by regaining full compliance with the listing requirements of Nasdaq Stock Market LLC. Specifically, on October 16, 2025, Nasdaq confirmed the resolution of a previously disclosed shareholder-approval deficiency under Listing Rule 5635(c) linked to equity grants made in 2023 and early 2024, and the matter is now formally closed.

Being removed from Nasdaq's non-compliant list provides the Company greater operational and financial flexibility to pursue its growth agenda across sports, entertainment and gaming verticals (including its core brands Sports.com, Concerts.com and Lottery.com).

**Web 3 and Digital Asset Strategy**

On October 30, 2025, the Company announced a two-year Web3 and Digital Asset Strategy involving the deployment of approximately $300 million in a Digital Asset & Tokenization Program. Under the roadmap, the Company intends to allocate roughly 80 % of the capital to a multi-asset crypto treasury (with an initial emphasis on Bitcoin and validator operations across Ethereum, Solana and ZIGChain) and the remaining 20 % toward strategic acquisitions in sports, media and gaming, as well as tokenization initiatives involving its digital brands (such as Sports.com and Concerts.com).

The Company also entered into a memorandum of understanding ("MOU") with ZIGChain (a purpose-built blockchain for real-world asset tokenization) to support its infrastructure and tokenization capabilities. The initiative is structured around a four-phase implementation timeline (ranging from 0-18 months) and will be overseen by a newly-established "Crypto Advisory Board" to guide governance, risk and execution. The Company intends to report income from validator activities through SEC-compliant filings; however, given the early stage of this program, the ultimate timing, magnitude and impact on operating results remain subject to execution risk and market conditions.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*The following discussion and analysis of our financial condition and results of operations together with the condensed consolidated financial statements and the related notes appearing elsewhere in this Report contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of events may differ materially from those expressed or implied in such forward-looking statements as a result of various factors, including those set forth in the section entitled "Cautionary Note Regarding Forward-Looking Statements" included herein and the sections entitled "Risk Factors" included in this Report and in our Annual Report on Form 10-K/A for the year ended December 31, 2024 (our "Annual Report").*

**Overview**

During FY 2024, the Company addressed legacy issues while successfully regaining full compliance with Nasdaq's continued listing rules and restarting operations on a limited basis in order to stage Lottery.com for growth in FY 2025. The cornerstone of the Company's operational progress for FY 2025 has been driven by technology, product and service/capability enhancements. This progress is driven primarily by the execution of the Company's "Buy-and-Build" strategy which identifies revenue-producing assets which have the capability to accelerate the Company's operations in the sports, entertainment, and gaming markets.

This Report is reflective of the Company's commitment to transparency, integrity, and responsible corporate governance. The investment commitments from United Capital Investments London Limited and Generating Alpha outlined in this report are evidence of investor belief in Management's capability to resume core lottery and gaming operations, launch additional international lottery operations, and expand operations in Mexico and offerings of sweepstakes, as well as successful monetization of Sports.com, entrance into the entertainment market, and expand the Company's brand across the globe.

***Nasdaq Listing***

On May 2, 2025, Lottery.com Inc. (the "Company" or "Lottery.com") received a letter from the Nasdaq Listings Qualifications Staff ("Nasdaq Staff") Indicating they had determined that the Company failed to comply with Nasdaq's shareholder approval requirements set forth in Listing Rule 5635(c) (the "Approval Rule").

The Company was notified that it was required to obtain shareholder approval under the Approval Rule prior to the establishment of a 2023 Employees' Directors' and Consultants Stock Issuance and Option Plan (the "2023 Plan") and the Ad Hoc Grants and the shares issued in connection therewith. The Company reported on a Form 8-K on July 3, 2025 that the only Incentive Award Plan for the Company is "The Lottery.com 2021 Incentive Award Plan" (the "2021 Plan") which was approved by the shareholders and registered by the Company on Form S-8 dated April 6, 2022, and that all Awards granted from October 2023 forward have been granted in accordance with the 2021 Plan.

As reported on form 8-K filed on May 9, 2025, the Company received written notice from Nasdaq indicating that its bid price for its common stock had closed at less than $1 per share over the previous 30 consecutive business days, and as a result, the Company did not comply with Nasdaq Listing Rule 8510 (c)(3)(A) (the "Bid Price Listing Rule"). However, under the Listing Rules, the Company was provided a 180-calendar day grace period to regain compliance

On June 20, 2025 Lottery.com received a letter from Nasdaq determining that as a result of the Company's common stock closing at a bid price at or above $1.00 for twenty consecutive business days, the Company had regained compliance with the Bid Price Listing Rule. Nasdaq has closed the matter.

On October 16, 2025 Lottery.com received a letter from Nasdaq determining that, as a result of the Company's retroactive action to abandon the 2023 Employees', Directors' and Consultants Stock Issuance and Option Plan and instead reflect that Ad Hoc grants were made pursuant to the 2021 Incentive Award Plan, the Company has regained compliance with Listing Rule 5635(c). Nasdaq has closed the matter.

If the Company's securities are delisted from Nasdaq due to non-compliance with listing rules, it could be more difficult to buy and sell the Company's common stock and warrants or to obtain accurate quotations, and the price of the Company's common stock and warrants could suffer a material decline. Delisting could also impair the Company's ability to raise capital and/or trigger defaults and penalties under its outstanding agreements or securities. Further, even if we lose but are able to regain compliance with Nasdaq listing requirements, there is no guarantee that we will be able to maintain our listing for any period of time.

Delisting from Nasdaq could also result in negative publicity. Further, if we are delisted, we would also incur additional costs under state blue sky laws in connection with any sales of our securities. These requirements could severely limit the market liquidity of our common stock and/or warrants and the ability of our stockholders to sell our common stock and/or warrants in the secondary market. If our common stock and/or warrants are delisted by Nasdaq, our common stock and/or warrants may be eligible to trade on an over-the-counter quotation system, such as the OTCQB Market, where an investor may find it more difficult to sell our stock or obtain accurate quotations as to the market value of our common stock and/or warrants. In the event our common stock and/or warrants are delisted from The Nasdaq Global Market, we may not be able to list our common stock and/or warrants on another national securities exchange or obtain quotation on an over-the counter quotation system.

***Loan Agreement with Woodford***

On December 7, 2022, the Company entered into a loan agreement with Woodford Eurasia Assets, Ltd. ("Woodford"), (the "Woodford Loan Agreement") pursuant to which Woodford agreed to provide the Company with up to $52.5 million, subject to certain conditions and requirements, of which, per the Company's books and records $798,351 was received by September 30, 2025 and is owed pursuant to the terms of the Woodford Loan Agreement. Amounts borrowed accrue interest at the rate of 12% per annum (or 22% per annum upon the occurrence of an event of default) and are due within 12 months of the date of each loan advance. Amounts borrowed can be repaid at any time without penalty.

Amounts borrowed pursuant to the Woodford Loan Agreement are convertible, at Woodford's option, into shares of the Company's common stock, beginning 60 days after the first loan date at the rate of 80% of the lowest publicly available price per share of common stock within 10 business days of the date of the Loan Agreement (which was equal to $56.00 per share), subject to a 4.99% beneficial ownership limitation and a separate limitation preventing Woodford from holding more than 19.99% of the issued and outstanding common stock of the Company, without the Company obtaining shareholder approval for such issuance.

Conditions to the Woodford Loan Agreement included the resignation of four prior members of the Board (Lisa Borders, Steven M. Cohen, Lawrence Anthony DiMatteo and William Thompson, all of whom resigned from the Board in September 2022), and the appointment of two new independent directors. Subsequent loans under the Woodford Loan Agreement also required the Company to comply with all listing requirements, unless waived by Woodford. The Woodford Loan Agreement also allowed Woodford to nominate another director to the Board of Directors, in the event any independent member of the Board of Directors resigned.

Proceeds of the loans could only be used by to restart the Company's operations and for general corporate purposes agreed to by Woodford.

The Woodford Loan Agreement included confidentiality obligations, representations, warranties, covenants, and events of default, which are customary for a transaction of this size and nature. Included in the Loan Agreement are covenants prohibiting us from (a) making any loan in excess of $1 million or obtaining any loan in an amount exceeding $1 million without the consent of Woodford, which consent may not be unreasonably withheld; (b) selling more than $1 million in assets; (c) maintaining less than enough assets to perform our obligations under the Loan Agreement; (d) encumbering any assets, except in the normal course of business, and not in an amount to exceed $1 million; (e) amending or restating our governing documents; (f) declaring or paying any dividend; (g) issuing any shares which negatively affects Woodford; and (h) repurchasing any shares.

The Company also agreed to grant warrants to purchase shares of common stock to Woodford (the "Woodford Warrants") in an amount equal to 15% of the Company's then issued and outstanding shares of common stock. Each Woodford Warrant has an exercise price equal to the average of the closing price of the Company's common stock for each of the ten days prior to the first amount being debited from the bank account of Woodford, which equates to an exercise price of $56.00 per share. In the event the Company fails to repay the amounts borrowed when due or Woodford fails to convert the amount owed into shares, the exercise price of the warrants may be offset by amounts owed to Woodford, and in such case, the exercise price of the warrants will be subject to a further 25% discount.

In connection with our entry into the Woodford Loan Agreement, the Company also entered into a Loan Agreement Deed, Debenture Deed and Securitization, with Woodford (the "Security Agreement"), which provides Woodford with a first floating charge security interest over all present and future assets of the Company in order to secure the repayment of amounts owed under the Loan Agreement.

On June 12, 2023, the Company entered into an amendment of the Woodford Loan Agreement (the "Woodford Loan Agreement Amendment"). The Woodford Loan Agreement Amendment provides that Woodford shall henceforth be able to convert, in whole or in part, the outstanding balance of its loan into the conversion shares at a conversion price that represents a further 25% discount to the original conversion price of 20%. The validity and application of the Woodford Loan Agreement Amendment is disputed by the Company.

Despite requests from the Company, Woodford has repeatedly amongst other things: failed to prove the amounts borrowed by the Company or claimed to have been advanced by Woodford to the Company; failed to indicate if it would accept accelerated payment of those verified amounts; failed to provide an anti-money laundering acceptable account to which payment could be made by the Company and failed to explain failure to respond to requests for other funding to be accepted in the context of the Woodford Loan Agreement; failed to respond to requests for funding under the accordion facility of the Woodford Loan Agreement; and failed to respond to allegations of money laundering and conspiracy to defraud the Company and the matter has been referred to the Company's legal counsel.

Information regarding ongoing legal proceedings with Woodford can be found in the "Legal Proceedings" section of this form.

***Loan Agreement with United Capital Investments London Limited***

The Company entered into a credit facility (the "UCIL Credit Facility"), which is represented by a loan agreement, which was initially entered into on July 26, 2023, and was amended and restated on August 8, 2023, and subsequently amended on August 18, 2023 and amended and restated on February 16, 2024, the "UCIL Loan Agreement"). The UCIL Loan Agreement is with United Capital Investments London Limited ("UCIL"), an entity in which each of Matthew McGahan, the Company's Chief Executive Officer and Chair of the Company's Board, and Barney Battles, a former member of the Board, have a direct or indirect interest. The decision by the Company to enter into the UCIL Loan Agreement followed an acknowledgment by the Company that it had not received the requisite funding that it expected from Woodford on a timely basis, despite the Company making several requests to Woodford for said funding under the Woodford Loan Agreement. Moreover, the Board of Directors determined that it was in the best interest of the Company and its stockholders to enter into the UCIL Loan Agreement with UCIL, as an alternative lender to Woodford, upon receiving an event of default notice on July 21, 2023 (the "Default Notice") and an event of default and crystallization notice on July 25, 2023 (the "Crystallization Notice") from Woodford under the Woodford Loan Agreement. Neither McGahan or Battles participated in the vote on the UCIL agreement to ensure proper independence and correct corporate governance. On July 24, 2023, the Company responded to the Default Notice disputing that an event of default had occurred given the Company's earlier announcement that UCIL had agreed to enter into a funding arrangement with the Company. On July 27, 2023, the Company replied to the Crystallization Notice denying that an event of default occurred or continued, and further asserted that Woodford's attempt for crystallization was inappropriate and unlawful under the Woodford Loan Agreement. Given the uncertainty of the continued financing under the Woodford Loan Agreement, the Board of Directors sought to secure and formalize the Company's alternative funding by entering into the UCIL Loan Agreement.

***Placement Agent Agreement with Univest Securities, LLC***

As reported on form 8-K filed with the SEC on February 6, 2024, on December 6, 2023, the Company entered into a placement agent agreement (the "Placement Agent Agreement") with Univest Securities, LLC (the "Placement Agent"), whereby the Placement Agent agreed to act as placement agent in connection with the Company's offering ("Offering") of convertible debt with warrant coverage at 50% up to $1,000,000; consisting of a convertible promissory note (each, a "Convertible Note" or collectively, the "Convertible Notes"), and a common stock purchase warrant (each, a "Warrant", or collectively, the "Warrants") to purchase shares of common stock of the Company, par value $0.001 per share (the "Common Stock") which include specific registration rights ("Registration Rights"), directly to one or more investors (each, an "Investor" and, collectively, the "Investors") through the Placement Agent.

On February 1, 2024, the parties agreed to increase the offering amount from $1,000,000 to $5,000,000. All other terms and conditions of the offering remained the same. The Securities shall be offered and sold pursuant to Section 4(a)(2) under the Securities Act of 1933, as amended (the "Securities Act").

***Business Combination***

The Business Combination Agreement, executed on February 21, 2021, facilitated the merger of Trident Merger Sub II Corp. into AutoLotto, with AutoLotto surviving as a wholly owned subsidiary of Trident Acquisitions Corp., which was subsequently renamed Lottery.com Inc. The transaction involved an aggregate consideration of approximately $440 million, comprising 200,000 shares of common stock valued at $2,200.00 per share. Additionally, the agreement provided for potential earnout shares for both Sellers and Founder Holders, subject to specific conditions. However, these conditions were not met, resulting in the forfeiture of all potential earnout shares.

***Board of Directors***

On May 13, 2025, the Board of Directors of the Company appointed Mr. Marc Bircham as a member of its Board of Directors. Mr. Bircham also serves as Executive Director of Sports.com. He is a seasoned executive, entrepreneur, and former international footballer with a dynamic career that spans professional sports, business development, and strategic leadership. In his career, Marc has spearheaded international growth, led complex acquisition projects, and forged high-value partnerships across the sports and entertainment industries.

Mr. Bircham is eligible to participate in the Company's equity compensation plans commensurate with all other Directors.

***Reverse Stock Splits***

 ****

On August 28, 2025, the Company amended its Charter to implement, effective at 5:30 p.m., Eastern time, a 1-for-10 Reverse Stock Split. At the effective time of the Reverse Stock Split, every 10 shares of common stock either issued and outstanding or held as treasury stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share. Stockholders who would have otherwise been entitled to fractional shares of common stock as a result of the Reverse Stock Split received a cash payment in lieu of receiving fractional shares. In addition, as a result of the Reverse Stock Split, proportionate adjustments will be made to the number of shares of common stock underlying the Company's outstanding equity awards, the number of shares issuable upon the exercise of the Company's outstanding warrants and the number of shares issuable under the Company's equity incentive plans and certain existing agreements, as well as the exercise, grant and acquisition prices of such equity awards and warrants, as applicable. The Reverse Stock Split was approved by the Company's stockholders at the Company's 2025 Annual Meeting of Stockholders on February 20, 2025 and was subsequently approved by the Board of Directors on August 13, 2025.

 ****

Previously, on August 9, 2023, the Company amended its Charter to implement, effective at 5:30 p.m., Eastern time, a 1-for-20 Reverse Stock Split. At the effective time of the Reverse Stock Split, every 20 shares of common stock either issued and outstanding or held as treasury stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share. Stockholders who would have otherwise been entitled to fractional shares of common stock as a result of the Reverse Stock Split received a cash payment in lieu of receiving fractional shares. In addition, as a result of the Reverse Stock Split, proportionate adjustments will be made to the number of shares of common stock underlying the Company's outstanding equity awards, the number of shares issuable upon the exercise of the Company's outstanding warrants and the number of shares issuable under the Company's equity incentive plans and certain existing agreements, as well as the exercise, grant and acquisition prices of such equity awards and warrants, as applicable. The Reverse Stock Split was approved by the Company's stockholders at the Company's 2023 Annual Meeting of Stockholders on August 7, 2023, and was subsequently approved by the Board of Directors on August 7, 2023.

The effects of the Reverse Stock Split have been reflected in this Quarterly Report on Form 10Q for all periods presented.

***International Expansion***

In June 2021, we closed the acquisition of Global Gaming, which holds 80% of the equity of each of Aganar and JuegaLotto. Aganar operates in the licensed Online Lottery market in Mexico and is licensed to sell Mexican National Lottery draw games, instant win tickets, and other games of chance online with access to a federally approved online casino and sportsbook gaming license. JuegaLotto is licensed by Mexico authorities to commercialize international lottery games in Mexico through an authorized gaming portal and to commercialize games of chance in other countries throughout Latin America. As of the date of this Report, according to Statista, the estimated size of the Latin American lottery market is $.68 billion with a compound annual growth rate projected at 6.05% through 2028. Furthermore, it is projected that there will be 3,000,000 online lottery players in the South American lottery market alone by 2028. Based on these projections, we believe these acquisitions will provide opportunities for growth of our international operations throughout Mexico and Latin America as we expand our portfolio of products and expose our existing products to new markets.

The Company completed the acquisition of Spektrum Ltd from PlusEvo Ltd through a Share Purchase Agreement (SPA) executed on March 13, 2025. This acquisition, valued at $1.5 million in common stock at $30.00 per share, supports Lottery.com's strategic expansion and the development of Lottery.com International. The acquisition provides the Company with a compliant platform to support lottery, sweepstakes and social gaming operations in dozens of international jurisdictions.

**Operations Prior to Operational Cessation**

Prior to the Operational Cessation, the Company was a provider of domestic and international lottery products and services. As an independent third-party lottery game service, we offered a platform that we developed and operated to enable the remote purchase of legally sanctioned lottery games in the U.S. and abroad (the "Platform"). Our revenue generating activities included (i) offering the Platform via our Lottery.com app and our websites to users located in the U.S. and international jurisdictions where the sale of lottery games was legal and our services were enabled for the remote purchase of legally sanctioned lottery games (our "B2C Platform"); (ii) offering an internally developed, created and operated business-to-business application programming interface ("API") of the Platform, which enabled our commercial partners, in permitted U.S. and international jurisdictions, to purchase certain legally operated lottery games from us and to resell them to users located within their respective jurisdictions ("B2B API"); and (iii) delivering global lottery data, such as winning numbers and results, and subscriptions to data sets of our proprietary, anonymized transaction data pursuant to multi-year contracts to commercial digital subscribers ("Data Service").

***Mobile Lottery Game Platform Services***

Both our B2C Platform and our B2B API provided users with the ability to purchase legally sanctioned draw lottery games via a mobile device or computer, securely maintain their acquired lottery game, automatically redeem a winning lottery game, as applicable, and receive support, if required, for the claims and redemption process. Our registration and user interfaces were designed to be easy to use, provide for the creation of an account and purchase of a lottery game with minimum friction and without the creation of a mobile wallet or requirement to pre-load minimum funds and - importantly - to provide instant confirmation of the user's lottery game numbers, whether selected at random or picked by the user. Users of our B2C Platform services paid a service fee and, in certain non-U.S. jurisdictions, a mark-up on the purchase price. Prior to the Operational Cessation, we generated revenue from this service fee and mark-up. Our B2B API Platform resumed limited operations during the month of April 2023. As of the date of this Report, our B2C Platform is not currently available in the US.

***The WinTogether Platform***

Prior to the Operational Cessation, we operated and administered all sweepstakes offered by WinTogether, a registered 501(c)(3) charitable organization ("WinTogether"), which was formed in April 2020 to support charitable, educational, and scientific causes. In consideration of our operation of the WinTogether platform and administration of the sweepstakes, we received a percentage of the gross donations to a campaign, from which we paid certain dividends and all administration costs.

On April 1, 2024, Lottery.com resumed its sweepstakes offerings through its partnership with the *WinTogether*.org foundation. In April 2025, Sports.com sponsored a sweepstakes to support the Florida International University surrounding the Formula 1 Crypto.com Miami Grand Prix 2025.

**Current Operations**

Despite the Operational Cessation, the Company's subsidiaries have continued to operate. While the operational activities of these subsidiaries vary, from the Operational Cessation through the date of this Report, each of TinBu, Aganar and JuegaLotto has decreased its expenses and has had its revenue decrease from pre-Operational Cessation levels. Additionally, Sports.com Media Group Ltd is operational and generating revenue. Both Concerts.com and TicketStub.com remain operational while the Company invests in redesign the sites to better meet the demands of today's live entertainment consumers.

***Data Services***

In 2018, we acquired TinBu, LLC ("TinBu"), a digital publisher and provider of lottery data results, jackpot results, and other data, as a wholly-owned subsidiary. Through TinBu, our Data Service delivers daily results of over 800 domestic and international lottery games from more than 40 countries, including the U.S., Canada, and the United Kingdom, to over 400 digital publishers and media organizations.

Our technology pulls real time primary source data, and, in some instances, we acquire data from dedicated data feeds from the lottery authorities. Our data is constantly monitored to ensure accuracy and timely delivery. We are not required to obtain licenses or approvals from the lottery authorities to pull this primary source data or to acquire the data from such dedicated feeds. Commercial acquirers of our Data Service pay a subscription for access to the Data Service and, for acquisition of certain large data sets, an additional per record fee.

We additionally enter into multi-year contracts pursuant to which we sell proprietary, anonymized transaction data pursuant to multi-year agreements and in accordance with our Terms of Service in consideration of a fee and in other instances provide the Data Service within a bundle of provided services.

***Lottery.com International***

On June 24, 2025, The Company appointed Tim Scoffham CEO of Lottery.com International Limited. In this role, Scoffham will oversee, the Company's iGaming and international lottery division focused on delivering secure, compliant, and entertaining lottery experiences across key global markets. His leadership will focus on aligning commercial, media, and technology platforms, bolstering permitted partnerships, and unlocking scalable, revenue-generating opportunities in high-growth jurisdictions.

***Aganar and JuegaLotto***

On June 30, 2021, we acquired 100% of the equity of Global Gaming Enterprises, Inc., a Delaware corporation ("Global Gaming"), which holds 80% of the equity of each of Medios Electronicos y de Comunicacion, S.A.P.I de C.V. ("Aganar") and JuegaLotto, S.A. de C.V. ("JuegaLotto"). JuegaLotto is federally licensed by the Mexican regulatory authorities with jurisdiction over the ability to commercialize lottery games in Mexico through an authorized federal gaming portal and to commercialize games of chance in other countries throughout Latin America. Aganar has been operating in the licensed Online Lottery market in Mexico since 2007 and has certain rights to sell Mexican National Lottery draw games, instant win tickets, and other games of chance online.

***Nook Holdings, Ltd***

On September 28, 2023, the Company entered into Stock Purchase Agreement with the shareholders of Nook Holdings Limited ("Nook"), a private limited Company incorporated and registered in the Abu Dhabi Global Market, Abu Dhabi, United Arab Emirates ("UAE"). The total purchase price is approximately $2.314 million. The Company made payments totaling $137,500 in the fourth quarter of 2023 and made additional deposits totaling $1,157,391 in the first nine months of 2025 for a cumulative total of $1,294,788 as of September 30, 2025 and anticipates the transaction closing in the fourth quarter of 2025 or as otherwise agreed by the parties. Nook is known for its innovative approach to co-working in Dubai and has procured 200 licenses for individuals and companies in the sports, health and wellness sector seeking access to Dubai and the broader Middle Eastern market. With its exclusive partnership with the Dubai Multi-Commodities Centre Free Zone (DMCC), Nook offers a wide range of services, including business setup support, insurance, VAT registration, and networking opportunities for like-minded sports entrepreneurs. As part of the acquisition, Nook will be rebranded under the Sports.com umbrella.

***Sports.com***

In December 2021, we finalized the acquisition of the domain name <u>https://sports.com</u>. On March 26, 2025, the Company registered Sports.com as a fictious name in the state of Florida under AutoLotto, Inc. Content provided by Sports.com is currently available worldwide as a website and a mobile application. The website was relaunched in August 2025.

In February 2025, the Company entered into a multi-year multi-year global partnership with Soccerex, the world's leading soccer business event organizer. The Agreement makes Sports.com the title sponsor for six global events including Soccerex 2025 for MENA, Europe and USA which were held in Cairo, Amsterdam and Miami, respectively.

This collaboration provides the Company with an influential platform to engage with key stakeholders in the football industry, further solidifying Sports.com's position at the intersection of sports, technology and entertainment. Working with the Soccerex team and its community presents an opportunity to build brand awareness internationally for the Company's gaming, content and entertainment brands.

In May 2025, the Company entered into sponsorship agreements with Louis Foster and Calum Ilott, drivers in the NTT IndyCar Series, and Sebastain Murray, a driver in the INDY NXT by Firestone series. The agreements provide the Company's brands with exposure throughout the 2025 racing seasons with vehicle and attire logo placement and social media postings by the drivers.

On June 17, 2025, the Company appointer Tamer Hassan as president of Sports.com Studios, Ltd. In this role, Hassan will lead the division's creative and strategic efforts to develop, produce and distribute compelling sports-focused films, docuseries, and premium digital content. This new arm of the business will serve as the cornerstone of Sports.com's global expansion into entertainment media and immersive storytelling.

On June 24, 2025, the Company appointed Tim Scoffham CEO of Sports.com Media Group, Ltd. In this role, Scoffham will oversee the strategic integration and international expansion of Sports.com Media, a premium digital sports content and engagement platform. His leadership will focus on aligning commercial, media, and technology platforms, bolstering regulatory partnerships, and unlocking scalable, revenue-generating opportunities in high-growth jurisdictions.

On July 17, 2025, the Company entered into its first official football league partnership in the Indian subcontinent through a five-year commercial agreement with the Super League Kerala ("SLK"), valued at more than $11.6 million. The agreement establishes SEGG Media and Sports.com as the exclusive global commercial and broadcast partner for SLK, encompassing: exclusive international streaming rights across all territories; integrated gaming and fan engagement products; global sponsorship and brand activation rights; and distribution focus across the Indian subcontinent and MENA, especially targeting the vast Keralite diaspora in the Middle East, North America, and Europe.

Sports.com Studios Ltd, entered into a revenue-driven co-production partnership with GOATS Entertainment (Greatest Of All Time) on August 7, 2025. This alliance will transform the legacies of the world's greatest athletes into cash-generative content assets, combining premium docuseries, exclusive merchandise, global fan activations, and immersive storytelling. The collaboration is designed to drive high-margin revenue streams across OTT, e-commerce, experiential and licensing platforms.

On Sept. 10, 2025, Sports.com Studios entered into a strategic global distribution partnership with the Døds Diving League ("DDL"), the official global platform for the world's fastest-growing extreme sport. The partnership will be managed by Sports.com Studios Ltd, the newly launched sports content subsidiary of SEGG Media. The partnership will bring the thrill of Døds to millions of fans worldwide. Under the agreement, Sports.com Studios became a global distribution partner for DDL events, ensuring competitions and original content will be delivered through Sports.com platforms.

**Plans for Recommencement of Company Operations**

As noted above, since the Operational Cessation, the Company has had minimal day-to-day operations and has primarily focused on restarting certain of its core businesses. The Company is executing on a multi-phase to recommence its gaming operations, which plan is outlined below The sequence is subject to change.

*Phase 1 - Resume Sweepstakes Operations.* The Company resumed its sweepstakes operations in April 2025 in conjunction with the WinTogether trust. The event was marketed under the DonateTo.Win brand. The launch was limited to Florida residents and awarded a prize for a VIP experience at the 2025 Formula 1 Crypto.com Miami Grand Prix 2025. The launch confirmed that the core sweepstakes platform is fully operational and ready to scale for nationwide events. The Company is planning additional events in the remainder of 2025 offering prizes related the Company's business' in the entertainment and sports markets.

*Phase 2 - Resume B2C Platform Operations.* The Company believes that it will be in a position to relaunch its B2C Platform by the end of 2025. As of the date of this Report, the Company expects that it will initially relaunch its B2C Platform to customers in international jurisdictions for a period of time before rolling it out to other jurisdictions. The Company plans to limit the rollout in order to give it additional time to properly vet and confirm compliance with local, state and federal rules related to ticket procurement and distribution. For more information, see "*Item 1A. Risk Factors.* The Company has also maintained various pre-paid media credits that it expects to use to launch and maintain promotional campaigns geared towards encouraging prior customers to return to the Platform and to acquire new customers.

*Phase 3 – Master Affiliate Model for Lottery.com*. The Company believes that the strength of the Lottery.com can be used to drive revenue through strategic affiliate relationships across the global lottery industry. The Company plans to offer an overarching Lottery.com loyalty and rewards program for all affiliates which allows the affiliate to concentrate on direct B2B sales while it delivers content and rewards which appeal to all lottery players. The program will be structured under a revenue-share model.

*Phase 4 - Other Business Lines and Projects.* The Company expects to continue to monetize the Sports.com brand, offer TicketStub.com services in international jurisdictions, and expand the Concerts.com platform beyond ticket reselling, and partnering with licensed providers in international jurisdictions to supply digital lottery games, and reviving other products and services that were under development when the Operational Cessation occurred.

As of the date of this Report, the current estimated cash balance of the Company and subsidiaries is approximately $320,000. The Company believes that this cash on hand, along with future borrowings, will be sufficient for the Company to resume its core operations.

Our common stock and warrants are traded on The Nasdaq Stock Market LLC ("Nasdaq") under the ticker symbols "SEGG" and "LTRYW," respectively. As of the date of this Report, we are in compliance with Nasdaq's continued listing requirements (the "Listing Rules"). Under its new management, the Company continues to work to improve its disclosure and reporting controls. Also, the Company plans to continue to strengthen and improve its systems of internal control over financial reporting and invest in additional legal, accounting, and financial resources.

If the Company's securities are delisted from Nasdaq, it could be more difficult to buy or sell the Company's common stock and warrants or to obtain accurate quotations, and the price of the Company's common stock and warrants could suffer a material decline. Delisting could also impair the Company's ability to raise additional capital needed to fund its operations and/or trigger defaults and penalties under outstanding agreements or securities of the Company.

There can be no assurance that we will have sufficient capital to support our operations and pay expenses, repay our debt, or that additional funds will be available on favorable terms, if at all. We may not be able to restart our operations or generate sufficient funding to support such operations in the future. The Company's ability to continue its current operations, prepare and refile required reports, and restart its prior operations, is dependent upon obtaining new financing. Future financing options available to the Company include equity financings, debt financings or other capital sources, including collaborations with other companies or other strategic transactions. Equity financings may include sales of common stock. Such financing may not be available on terms favorable to the Company or at all. The terms of any financing may adversely affect the holdings or rights of the Company's stockholders and may cause significant dilution to existing stockholders. There can be no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company, if at all, which would have a material adverse effect on its business, financial condition and results of operations, and it could ultimately be forced to discontinue its operations and liquidate. These matters, when considered in the aggregate, raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time, which is defined as within one year after the date that the financial statements are issued. The accompanying financial statements do not contain any adjustments to reflect the possible future effects on the classification of assets or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

**Components of Our Results of Operations**

**Our Revenue**

*Revenue from B2C Platform [when operational].* Our revenue is the retail value of the acquired lottery game and the service fee charged to the user, which we impose on each lottery game purchased from our B2C Platform. The amount of the service fee is based upon several factors, including the retail value of the lottery game purchased by a user, the number of lottery games purchased by a user, and whether such user is located within the U.S. or internationally. Currently, in the U.S, the minimum service fee is $0.50 for the purchase of a $1 lottery game and $1 for the purchase of a $2 lottery game; the service fee for additional lottery games purchased in the same transaction is 6% of the face value of all lottery games purchased. For example, the service fee for the purchase of five $2 tickets is $1.60, comprised of the $1 base service fee, plus 6% of the aggregate value of the face value of all lottery games purchased. The Company has not operated its B2C platform in the US since July 2022. The Company does operate B2C business in Mexico through our wholly-owned subsidiary, Global Gaming.

*Data Services.* Commercial acquirers of our Data Service pay a subscription for access to the Data Service and, for acquisition of certain large data sets, an additional per record fee. The Company additionally enters into multi-year contracts pursuant to which it sells proprietary, anonymized transaction data pursuant to multi-year agreements and in accordance with our Terms of Service in consideration of a fee. Our Data Services operations were not impacted by the Operational Cessation.

*Revenue-Share Arrangements* Sports.com Media Group has entered into agreements with telcos which allow them to monetize Sports.com content to their users. Both parties share in the revenue.

**Our Operating Costs and Expenses**

*Personnel Costs.* Personnel 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.

**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 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 brand penetration in U.S. and international jurisdictions by increasing direct to consumer marketing campaigns, entering into affiliate partnerships in U.S. and select foreign jurisdictions and acquiring synergistic enterprises domestically and abroad.

**Current Plan of Operations**

As of the date of this Report, the Company's primary revenue drivers are its data business, lottery ticket sales in Mexico and sponsorship and licensing deals with Sports.com Media Group. It is anticipated that operational costs for the next 12 months through September 30, 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 reintroduce the Lottery.com brand to the domestic market and expand international operations in gaming, sports, and entertainment. 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.

**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 capital through, among other things, the sale of equity or debt securities.

***Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024***

The following table summarizes our results of operations for the three months ended September 30, 2025 and September 30, 2024, respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months Ended** | **For the three months Ended** | | |
|  | **September 30,** | **September 30,** | | |
|  | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| Revenue | $137769 | $200653 | (62884) | -31% |
| Cost of revenue | 204868 | 86315 | 118553 | 137% |
| Gross profit | (67189) | 114338 | (181527) | -159% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Personnel costs | 360135 | 679346 | (319211) | -47% |
| &nbsp;&nbsp;&nbsp;Professional fees | 1613268 | 1205900 | 407368 | 34% |
| &nbsp;&nbsp;&nbsp;General and administrative | 1498490 | 681345 | 817145 | 120% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1180132 | 1207913 | (27787) | -2% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 4652025 | 3774504 | 877521 | 23% |
| Loss from operations | (4719214) | $(3660166) | (1059048) | 29% |
| Other expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 67845 | 126753 | (58908) | -46% |
| &nbsp;&nbsp;&nbsp;Other (income) expense | (19343) | (20431) | (1088) | -5% |
| &nbsp;&nbsp;&nbsp;Loss on impairment of intangibles & goodwill | - | 4298002 | (4298002) | -100% |
| &nbsp;&nbsp;&nbsp;Total other expenses, net | 48502 | 4404324 | (4355822) | -99% |
| Net loss before income tax | $(4767716) | $(8064490) | (3296774) | -41% |
| Income tax expense (benefit) | 4365 | 12814 | (8449) | -66% |
| Net loss | (4772081) | (8077304) | (3355223) | -42% |

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*<u>Revenue.</u>*

*Revenue*. Revenue for the three months ended September 30, 2025 was $138,000, a decrease of $63,000, or 31%, compared to revenue of $201,000 for the three months ended September 30, 2024. The decrease is the net effect of decreases of $38,000 for Global Gaming and $24,000 for TinBu in 2025 and 1,000 for S&MI vs 2024.

*Cost of Revenue*. Cost of revenue includes product costs, commission expense to affiliates and commercial partners, and merchant processing fees. Cost of revenue for the three months ended September 30, 2025 was $205,000 thousand, an increase of $119,000, or 137%, compared to cost of revenue of $86,000 for the three months ended September 30, 2024. For the three months ended September 30, 2025 there were increases of $63,000 in cost of revenue for the S&MI subsidiary and $59,000 for Global Gaming offset by minor decreases for the core Lottery business.

*Gross Profit*. Gross profit for the three months ended September 30, 2025 was a loss of $67,000 compared to profit of $114,000 for the three months ended September 30, 2024, a decrease of $182,000, or 159%. Gross profit for Global Gaming decreased by: $97,000, Tinbu by $23,000 and S&MI by $62,000 in the three months ended September 30, 2025.

*<u>Operating Costs and Expenses.</u>*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months Ended** | **For the three months Ended** | | |
|  | **September 30,** | **September 30,** | | |
|  | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Personnel costs | 360135 | 679346 | (319211) | -47% |
| &nbsp;&nbsp;&nbsp;Professional fees | 1613268 | 1205900 | 407368 | 34% |
| &nbsp;&nbsp;&nbsp;General and administrative | 1498490 | 681345 | 817145 | 120% |
| Depreciation and amortization | 1180132 | 1207913 | (27787) | -2% |
| Total Operating Expenses | 4652025 | 3774504 | 766410 | 23% |
| Loss from operations | (4719214) | (3660166) | (1059048) | 29% |

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Operating expenses for the three months ended September 30, 2025 were $4.7 million, an increase of $766,000, or 23%, compared to $3.8 million for the three months ended September 30, 2024. The increase was primarily driven by increases of $817,000 in General and administrative costs and $407,000 in Professional fees offset by decreases in Personnel costs of $319,000 and Depreciation and amortization of $28,000. Reasons for these decreases are described below.

*Personnel Costs*. Personnel costs were $360,000 for the three months ended September 30, 2025, a decrease of $319,000 or (47%) from $679,000 for the three months ended September 30, 2024. The decrease is primarily due to changes in the composition of the teams for the parent company and TinBu subsidiary for the three months ended September 2025 as compared with the three months ended September 30, 2024.

*Professional Fees*. Professional fees increased by $407,000 or 34%, from $1.2 million for the three months ended September 30, 2024 to $1.6 million for the three months ended September 30, 2025. The increase was due to expenses incurred for outside attorneys in the three months ended September 30, 2025. Activity levels for outside attorneys were lower for the same period in 2024.

*General and Administrative*. General and administrative expenses were $1.5 million, for the three months ended September 30, 2025, an increase of $817,000 or 120% from $681,000 for the three months ended September 30, 2024. Primary drivers of the increase for the three months ended September 30, 2025 vs the three months ended September 30, 2024 were: $140,000 for the Advisory Board, $375,000 for Sponsorships, $189,000 for Public Relations, and $70,000 business insurance premiums.

*Depreciation and Amortization.* Depreciation and amortization decreased $28,000, or 2%, from $1.21 million for the three months ended September 30, 2024 to $1.18 million for the three months ended September 30, 2025. The decrease was primarily driven by write-offs to intangible assets related to Global Gaming in 2024 resulting in a decrease for the three months ended September 30, 2025, and because Tinbu intangibles became fully amortized in the summer of 2024.

*<u>Other (Income) Expense, Net.</u>*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months Ended** | **For the three months Ended** | | |
|  | **September 30,** | **September 30,** | | |
|  | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| Other expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 67845 | 126753 | (58908) | -46% |
| &nbsp;&nbsp;&nbsp;Other (income) expense | (19343) | (20431) | (1088) | -5% |
| &nbsp;&nbsp;&nbsp;Loss on impairment of intangibles & goodwill | - | 4298002 | (4298002) | -100% |
| &nbsp;&nbsp;&nbsp;Total other expenses, net | 48502 | 4404324 | (4355822) | -99% |

---

*Interest Expense*. Interest expense for the three months ended September 30, 2025 was $68,000 vs interest expense of $127,000 for the three months ended September 30, 2024, a decrease of $59,000 or 46%. Interest expense relates to notes payable from the time of the business combination plus interest on more recent convertible notes from Woodford, UCIL, and Univest. Interest accrual for convertible debt was lower for the three months ended September 30, 2025 than for the three months ended September 30, 2024 due to lower balances for convertible debt as a result of conversions to equity.

*Other (Income) Expense*. Other (Income) was essentially flat for the three months ended September 30, 2025 compared with the three months ended September 30, 2024.

***Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024***

The following table summarizes our results of operations for the nine months ended June 30, 2025 and June 30, 2024, respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months Ended** | **For the nine months Ended** | | |
|  | **September 30,** | **September 30,** | | |
|  | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| Revenue | $553290 | $716970 | (163680) | -23% |
| Cost of revenue | 530069 | 215672 | 314397 | 146% |
| Gross profit | 23221 | 501298 | (478077) | -95% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Personnel costs | 1485738 | 3454011 | (1968273) | -57% |
| &nbsp;&nbsp;&nbsp;Professional fees | 3878826 | 4769938 | (891112) | -19% |
| &nbsp;&nbsp;&nbsp;General and administrative | 3361031 | 3598397 | (237366) | -7% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 3281090 | 3823641 | (542551) | -14% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 12006685 | 15645987 | (3639302) | -23% |
| Loss from operations | (11983464) | $(15144689) | (3161225) | -21% |
| Other expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 7726 | 350784 | (343058) | -98% |
| &nbsp;&nbsp;&nbsp;Other expense | (107948) | (11747) | (96201) | 819% |
| &nbsp;&nbsp;&nbsp;Loss on impairment of intangibles & goodwill | - | 4298002 | (4298002) | -100% |
| &nbsp;&nbsp;&nbsp;Total other expenses, net | (100222) | 4637039 | (4737261) | -102% |
| Net loss before income tax | $(11883242) | $(19781728) | (7898486) | -40% |
| Income tax expense (benefit) | 12665 | 21114 | (8449) | -40% |
| Net loss | (11895907) | (19802842) | (7906935) | -40% |

---

*Revenue*. Revenue for the nine months ended September 30, 2025 was $553,000, a decrease of $164,000, or 23%, compared to revenue of $717,000 for the nine months ended September 30, 2024. The decrease in revenue is the net effect of decreases of $141,000 for Global Gaming and $108,000 for TinBu in 2025 vs 2024 offset by an increase of $87,000 in revenue for the S&MI subsidiary which is because S&MI was present for nine months in 2025 and only for one month in 2024.

*Cost of Revenue*. Cost of revenue includes product costs, commission expense to affiliates and commercial partners, and merchant processing fees. Cost of revenue of $530,000 for the nine months ended September 30, 2025 was an increase of $314,000 or 146% compared with $216,000 for the nine months ended September 30, 2024. The primary driver of the increase is because S&MI was present for nine months in 2025 and only for one month in 2024. Cost of revenue for TinBu was essentially flat and there was a small increase for Global Gaming.

*Gross Profit*. Gross profit for the nine months ended September 30, 2025 was $23,000 compared to $501,000 for the nine months ended September 30, 2024, a decrease of $478,000, or 95%. Gross profit decreased by: $156,000, for Global Gaming, Tinbu by $108,000, and S&MI by $214,000 in the three months ended September 30, 2025.

*<u>Operating Costs and Expenses.</u>*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months Ended** | **For the nine months Ended** | | |
|  | **September 30,** | **September 30,** | | |
|  | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Personnel costs | 1485738 | 3454011 | (1968273) | -57% |
| &nbsp;&nbsp;&nbsp;Professional fees | 3878826 | 4769938 | (891112) | -19% |
| &nbsp;&nbsp;&nbsp;General and administrative | 3361031 | 3598397 | (237366) | -7% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 3281090 | 3823641 | (542551) | -14% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 12006685 | 15645987 | (3639302) | -23% |
| Loss from operations | (12983464) | $(15144689) | (3161225) | -21% |

---

Operating expenses for the nine months ended September 30, 2025 were $12.0 million, a decrease of $3.6 million, or 23%, compared to $15.6 million for the nine months ended September 30, 2024. The decrease was primarily driven by a decrease of $2.0 million in Personnel costs accompanied by decreases in: Professional fees of $891,000, General and administrative expenses of $237,000, Depreciation and amortization by $543,000. Reasons for these decreases are described below.

*Personnel Costs*. Personnel costs decreased by $2.0 million or 57% from $3.4 million for the nine months ended September 30, 2024, to $1.5 million for the nine months ended September 30, 2025. The decrease is because there were changes in the composition of the team for the parent company and Tinbu subsidiary in 2025 and also expenses recorded in the nine months ended September 30, 2024 for shares of common stock and related payroll taxes granted to officers for retention and their contributions to the turnaround did not reoccur during the nine months ended September 30, 2025.

*Professional Fees*. Professional fees decreased by $891,000, or 19%, from $4.8 million for the nine months ended September 30, 2024 to $3.9 million for the nine months ended September 30, 2025. Although there were increases in expenses for outside attorneys during the three months ended September 30, 2025, Legal fees for the first half of 2025 were lower than in the first half of 2024 and expenses for shares of common stock granted to consultants in the first half of 2024 for retention and compensation related to the turnaround did not reoccur in 2025.

*General and Administrative.* General and administrative expenses decreased $237,000, or 7%, from $3.6 million for the nine months ended September 30, 2024 to $3.4 million for the nine months ended September 30, 2025. Primary drivers of the decrease were: travel expenses lower by $72,000, consulting for technology development lower by $80,000, and software expenses lower by $60,000 in the nine months ended September 30, 2025 than the nine months ended September 30, 2024.

Depreciation and Amortization. Depreciation and amortization decreased $543,000 or 14%, from $3.8 million for the nine months ended September 30, 2024 to $3.3 million for the nine months ended September 30, 2025. The decrease was primarily driven by write-offs to intangible assets related to Global Gaming in 2024 and because Tinbu intangibles became fully amortized in the summer of 2024 and there has been no amortization on them in the nine months ending September 30, 2025.

*<u>Other (Income) Expense, Net.</u>*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months Ended** | **For the nine months Ended** | | |
|  | **September 30,** | **September 30,** | | |
|  | **2025** | **2024** |<br>**$ Change** |<br>**% Change** |
| Other expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest (Income) expense | 7726 | 350784 | (343058) | -98% |
| &nbsp;&nbsp;&nbsp;Other (Income) expense | (107948) | (11747) | (96201) | 819% |
| &nbsp;&nbsp;&nbsp;Loss on impairment of intangibles & goodwill | - | 4298002 | (4298002) | -100% |
| &nbsp;&nbsp;&nbsp;Total other expenses, net | (100222) | 4637039 | (4737261) | -102% |

---

*Interest Expense (Income)*. Interest expense for the nine months ended September 30, 2025 was $8,000 vs interest expense of $351,000 for the nine months ended September 30, 2024, a decrease of $344,000 or 98%. Interest accrual for convertible debt was lower for the nine months ended September 30, 2025 due to lower balances for convertible debt as a result of conversions to equity. Additionally, accruals for $227,000 were recorded in the nine months ended September 30, 2025 for accrued interest income on a note receivable.

*Other (Income) Expense*. Other income was $108,000 for the nine months ended September 30, 2025 vs. $12,000 for the nine months ended September 30, 2024, an increase of $96,000 or 819%.

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 capital through, among other things, the sale of equity or debt securities.

**Liquidity and Capital Resources**

Prior to the Operational Cessation, our primary need for liquidity was to fund working capital requirements of our business, growth, capital expenditures and for general corporate purposes. Our primary source of liquidity had historically been funds generated by financing activities. Upon the Closing of the business combination on October 29, 2021, we received net proceeds of approximately $42.8 million in cash.

Following the Operational Cessation, our primary need for liquidity has been to fund the restart of our business operations, re-hire employees and pay our expenses. The most likely source of such future funding presently available to us is through additional borrowings under loan agreements or through the issuance of equity or debt securities. If lenders do not advance us amounts as agreed under loan agreements or we are otherwise not able to secure the necessary capital to restart our operations, hire new employees, and obtain funding sufficient to support and restart our operations, we may be forced to permanently cease our operations, sell off our assets and operations, and/or seek bankruptcy protection, which could cause the value of our securities to become worthless.

These conditions, along with our current lack of material revenue producing activities, and significant debt, raise substantial doubt about our ability to continue as a going concern for the next 12 months. For more information, see *Note 2 - Significant Accounting Policies, Going Concern* to the consolidated financial statements included herein.

**Cash Flows**

Net cash used in operating activities was $6.4 million for the nine months ended September 30, 2025, compared to net cash provided by operating activities of $953,000 for the nine months ended September 30, 2024 which was an increase of $7,4 million year over year.

Net cash used in investing activities during the nine months ended September 30, 2025 was $2.1 million vs net cash used by investing activities of $885,000 for the nine months ended September 30, 2024, an increase of $1.2 million year over year, For both years, cash used in investing activities was related to acquisitions of subsidiaries and related intangible assets.

Net cash provided by financing activities was $8.8 million for the nine months ended September 30, 2025, compared to net cash used in financing activities of $32,000 for the nine months ended September 30, 2024. The increase was the result of funding received under the stock purchase agreement and convertible notes.

**Emerging Growth Company Accounting Election**

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable. We are an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits of this extended transition period. We expect to remain an emerging growth company through the end of the 2026 fiscal year and we expect to continue to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare the financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions for emerging growth companies because of the potential differences in accounting standards used.

**<u>Critical Accounting Policies and Estimates</u>**

Our financial statements and the related notes thereto included elsewhere in this Report are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The preparation of financial statements requires management to make estimates and assumptions that affect the reporting values of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The more significant estimates and assumptions are those used in determining the recoverability of long-lived assets. Accordingly, actual results could differ from those estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flow will be affected.

Our critical accounting policies are described under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations— Critical Accounting Policies and Estimates" in the Annual Report and the notes to the audited financial statements appearing elsewhere in the Annual Report. During the nine months ended September 30, 2025, there were no material changes to our critical accounting policies from those discussed in our Amended 2024 Annual Report.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This guidance requires recognition of most lease liabilities on the balance sheet to give investors, lenders, and other financial statement users a more comprehensive view of a company's long-term financial obligations, as well as the assets it owns versus leases. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2021, and for interim periods within annual periods after December 15, 2022. In July 2018, the FASB issued ASU 2018-11 making transition requirements less burdensome. The standard provides an option to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in the Company's financial statements. The adoption of this standard did not have a material impact on our financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments", as additional guidance on the measurement of credit losses on financial instruments. The new guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The new guidance is effective for all public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. In October 2019, the FASB approved a proposal which grants smaller reporting companies additional time to implement FASB standards on current expected credit losses (CECL) to January 2023. As a smaller reporting company, we deferred adoption of ASU No. 2016-13 until January 2023.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

As a "smaller reporting company" as defined by Rule 10(f)(1) of Regulation S-K, the Company is not required to provide this information.

**Item 4. Controls and Procedures.**

***Evaluation of Disclosure Controls and Procedures***

As previously disclosed, in connection with the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the "Original 2021 Annual Report") on April 1, 2022, our management, with the participation of our then Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2021. Based on their evaluation, our then Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2021, our disclosure controls and procedures were not effective due to material weaknesses in our internal control over financial reporting with respect to our financial statement close and reporting process.

In connection with the filing of Amendment No. 1 to the Company's Annual Report on Form 10-K/A for the year ended December 31, 2021 (the "Amended 2021 Annual Report"), our management, with the participation of our Chief Executive Officer, reevaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2021 and determined they were not effective due to the material weaknesses in our internal control over financial reporting with respect to our financial statement close and reporting process. Our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer, to allow timely decisions regarding required disclosures.

***Material Weakness in Internal Control Over Financial Reporting***

In connection with the audit of our condensed consolidated financial statements included in this Report, our management identified material weaknesses in our internal control over financial reporting as of December 31, 2024 and 2023 relating to deficiencies in the design and operation of the procedures relating to the closing of our financial statements. These include: (i) our lack of a sufficient number of personnel with an appropriate level of knowledge and experience in accounting for complex or non-routine transactions, (ii) the fact that our policies and procedures with respect to the review, supervision and monitoring of our accounting and reporting functions were either not designed and in place or not operating effectively; (iii) our inability to complete the timely closing of financial books at the quarter and fiscal year end, and (iv) incomplete segregation of duties in certain types of transactions and processes.

Specifically, management did not design and maintain sufficient procedures and controls related to revenue recognition including those related to ensuring accuracy of revenue recognized from non-routine transactions such as the sales of LotteryLink Credits. As a result, we determined that there was an overstatement of revenue in the consolidated statement of operations of approximately $52.1 million during the year ended December 31, 2021, which required a restatement of the previously issued financial statements for the year ended December 31, 2021 contained in the Amended 2021 Annual Report.

We have begun implementing remediation steps to improve our internal control over financial reporting and to remediate the identified material weaknesses, including (i) adding personnel with sufficient accounting knowledge; (ii) adopting a more rigorous period-end review process for financial reporting; (iii) adopting improved period close processes and accounting processes, and (iv) clearly defining and documenting the segregation of duties for certain transactions and processes. Management has expanded and will continue to enhance our system of identifying transactions and evaluating and implementing the accounting standards that apply to our financial statements, including through enhanced analyses by our personnel and third-party professionals with whom we consult regarding complex accounting applications. We intend to continue take steps to remediate the material weaknesses described above and further continue re-assessing the design of controls, the testing of controls and modifying processes designed to improve our internal control over financial reporting. The Company plans to continue to assess its internal controls and procedures and intends to take further action as necessary or appropriate to address any other matters it identifies or are brought to its attention. We will not be able to fully remediate these material weaknesses until these steps have been completed and have been operating effectively for a sufficient period of time. The implementation of our remediation will be ongoing and will require validation and testing of the design and operating effectiveness of internal controls over a sustained period of financial reporting cycles. We may also conclude that additional measures may be required to remediate the material weaknesses in our internal control over financial reporting.

We cannot assure you that the measures we take will be sufficient to remediate the material weaknesses we identified or avoid the identification of additional material weaknesses in the future. If the steps we take do not remediate the material weaknesses in a timely manner, there could continue to be a reasonable possibility that this control deficiency or others could result in another material misstatement of our annual or interim financial statements that would not be prevented or detected on a timely basis.

For more information, see "*Item 1A. Risk Factors - Public Company Operating Risks - If we fail to implement and maintain an effective system of internal controls, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence and the trading price of our common stock and warrants may be materially and adversely affected*."

***Changes in Internal Control Over Financial Reporting***

Except as otherwise described herein, there was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended September 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**PART II – OTHER INFORMATION**

**Item 1. Legal Proceedings**

The Company is from time to time a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. In addition, the Company is a party to several material legal proceedings, which are described below. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management's expectations, the Company's financial condition and operating results for that reporting period could be materially adversely affected.

**J. Streicher**

On July 29, 2022, the Company filed its original *Verified Complaint for Breach of Contract and Specific Performance* (the "Streicher Complaint") against J. Streicher Financial, LLC ("Streicher") in the Court of Chancery of the State of Delaware (the "Chancery Court"), styled *AutoLotto, Inc. dba Lottery.com v. J. Streicher Financial, LLC (Case No. 2022-0661-MTZ)*. In the Streicher Complaint, the Company alleged that Streicher breached the contract entered into by the parties on March 9, 2022 and demanded that Streicher return $16,500,000 it owes to the Company. On September 26, 2022, the Chancery Court entered an order in favor of the Company, *Granting with Modifications Company's Motion for Partial Summary Judgment* in the amount of $16,500,000 (the "Streicher Judgment"). On October 27, 2022, the Chancery Court further awarded the Company $397,037 in attorney's fees (the "Fee Order"). On November 15, 2022, the Company initiated efforts against Streicher to seek collections on the Judgment. On December 8, 2022, the Company's prior attorney Skadden, Arps, Slate, Meagher & Flom, LLP ("Skadden") filed its *Combined Motion to Withdraw as Counsel and For a Charging Lien* in amount of $3,024,201 for legal fees unpaid by Company ("Skadden's Motion"). On December 30, 2022, the Company filed its response to Skadden's Motion, alleging that the Chancery Court should deny Skadden's *Motion for a Charging Lien* as a matter of law or, in the alternative, limit the charging lien to the amount of the attorneys' fees awarded by the Fee Order. As of the date of this Report, the Chancery Court has not set Skadden's Motion for an oral hearing, nor has it entered an order on the motion. On January 20, 2023, faced with post-judgment discovery and depositions, Streicher remitted a partial payment towards the Judgment in the amount of $75,000. On February 13, 2023, Streicher made another payment towards the Judgment in the amount of $50,000 and had agreed to make another payment in the amount of $75,000 on February 28, 2023, which it failed to make. The Company intends to fully collect on the Judgment and shall pursue all legal and equitable means to enforce the Judgment against Streicher until the Judgment is fully satisfied.

**Preston Million Class Action**

On August 19, 2022, Preston Million filed a *Class Action Complaint* (the "Class Action Complaint") against the Company and certain former officers and directors of the Company in the United States District Court for Southern District of New York (the "SDNY"), styled *Preston Million, Individually and on Behalf of All Others Similarly Situated vs. Lottery.com, Inc. f/k/a Trident Acquisitions Corp., Anthony DiMatteo, Matthew Clemenson and Ryan Dickinson (Case No. 1:22-cv-07111-JLR)*. The Class Action Complaint alleged violations by all defendants of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") 15 U.S.C. §§ 78j(b), 78t(a), as amended by the Private Securities Litigation Reform Act of 1995 ("PSLRA"), U.S.C. § 78u-4 *et seq*. (collectively "Federal Securities Laws"). On November 18, 2022, the SNDY ordered the appointment of RTD Bros, LLC, Todd Benn, Tom Benn and Tomasz Rzedian (collectively "Lottery Investor Group") as lead plaintiff and Glancy Prongay & Murray, LLP as lead counsel for plaintiffs and for the class in the case. On December 5, 2022, the Court stipulated a *Scheduling Order* in the case. On January 12, 2023, the Company's legal counsel timely filed its *Notice of Appearance*. On January 31, 2022, plaintiffs filed their *Amended Complaint* adding Kathryn Lever, Marat Rosenberg, Vadim Komissarov, Thomas Gallagher, Gennadii Butkevych, Ilya Ponomarev as additional defendants in the case. The *Amended Complaint* alleges, among other things, that defendants made materially false and misleading statements in violation of Section 10(b),14(a) and 20(a) of the Exchange Act and plaintiffs seek compensatory damages, reasonable costs and expenses including counsel fees and expert fees. Pursuant to the *Scheduling Order*, the Company filed its motion to dismiss the Amended Complaint on April 3, 2023, under the newly consolidated caption and its proposed order to dismiss the matter. Plaintiffs were expected to file their opposition to the motion to dismiss no later than May 18, 2023, which would trigger the Company's deadline to file its reply brief in support of their motion to dismiss no later than June 20, 2023. On February 6, 2024, the SDNY granted the Company's Motion to Dismiss. On June 12, 2024, plaintiffs amended their complaint (the "Third Amended Complaint"). On July 12, 2024, the Company filed its motion to dismiss the Third Amended Complaint (the "MTD Third Amended Complaint"). On August 8, 2024, the plaintiffs filed their response in opposition to the MTD Third Amended Complaint. The Company filed its reply on August 22, 2024 to plaintiffs' response in opposition to the MTD Third Amended Complaint. On February 25, 2025, the Court granted in part and denied in part the MTD Third Amended Complaint (the "Order). As set forth in the Order, the Class Plaintiffs' Section 10(b) claim shall proceed against Defendant Dickinson and the Company based on post-merger representations regarding Lottery's financial performance and financial reporting. Class Plaintiffs' and Hoffman's Section 20(a) claim premised on Section 10(b) shall likewise proceed against Defendant Dickinson. Class Plaintiffs' Section 14(a) claim shall proceed against the Company and Defendants DiMatteo, Clemenson and Dickinson with respect to certain legal and regulatory compliance statements in the Proxy. The remainder of Plaintiffs claims were dismissed, including all claims against Komissarov. The Court also ordered that Plaintiffs shall have leave to amend within twenty-one (21) days of this opinion and order. On March 13, 2025, the Court granted Plaintiff Hoffman's motion for leave for additional time to amend his complaint. Accordingly, Hoffman's' Third Amended Complaint shall be due April 24, 2025. Defendants' motions to dismiss shall be due June 30, 2025; Plaintiff Hoffman's opposition brief will be due August 14, 2025; and Defendants' reply briefs shall be due September 17, 2025. On or about September 5, 2025, the Government filed a motion to intervene and requested the court to stay the action in its entirety. On or about September 5, 2025, the Court granted the Government's motion to intervene and its motion to stay the case.

**TinBu Complaint**

On March 13, 2023, John Brier, Bin Tu and JBBT, LLC (collectively, the "TinBu Plaintiffs") filed its original complaint against Lottery.com, Inc. f/k/a AutoLotto, Inc. and its wholly-owned subsidiary TinBu, LLC ("TinBu") in the Circuit Court of the 13<sup>th</sup> Judicial District in and for Hillsborough County, Florida (the "TinBu Complaint"). The Complaint alleges breach of contract(s) and misrepresentation with alleged damages in excess of $4.6 million. The parties agreed to extend the Company's and its subsidiary's deadline to respond until May 1, 2023. On May 2, 2023, the Company and its subsidiary retained local counsel who filed a Notice of Appearance on behalf of the Company and TinBu and filed a Motion for Enlargement requesting the Court to extend its deadline to file its initial response to the Complaint by an additional 30 days (the "Motion for Enlargement"). As of the date of this Amended Report, the Motion for Enlargement has not been set for a hearing. On May 5, 2023, Plaintiffs filed their Motion for Court Default ("Plaintiffs' Motion for Default"), despite Company's Motion for Enlargement. As of the date of this Amended Report, the Motion for Enlargement has not been set for a hearing. The Company intends to oppose Plaintiffs' Motion for Default. On May 9, 2023, Plaintiffs served Plaintiffs' First Request for Admissions (the "RFA") to the Company. On October 13, 2023, the Court granted the Defendants' Motion to Stay Litigation and Discovery pending a ruling on its Motion to Compel Arbitration. On November 16, 2023, the Court granted Defendants' Motion to Compel Arbitration in Texas. The parties await a signed written order from the Court to that effect. The TinBu Plaintiffs have appealed the Court's Order to Compel Arbitration in Texas.

On July 19, 2024, the Company received notice that the Tinbu Plaintiff's requested a voluntary dismissal of their claims. The Tinbu Complaints have been voluntarily dismissed without prejudice by the District Court of Appeal of the State of Florida Second District and the Circuit Court of the Thirteenth Judicial Circuit in and for Hillsborough County, Florida, indicating that no further action will be pursued by the plaintiffs in Florida State Court at this time. The District Court of Appeals also denied the Tinbu Plaintiff's motion for attorney's fees and costs.

**Global Gaming Data**

On November 14, 2023, the Company and its wholly owned subsidiary TinBu, LLC ("TinBu") (collectively, "Plaintiffs") filed a separate lawsuit in the United States District Court for the Middle District of Florida ("MDF") against John J. Brier, Jr. ("Brier"), Bin Tu ("Tu"), and Global Gaming Data, LLC ("GGD") (collectively, "Defendants"), which was subsequently amended on November 21, 2023, for damages and injunctive relief arising out of Defendants' various violations of the Federal Defend Trade Secrets Act ("DTSA"), the Florida Uniform Trade Secrets Act ("FUTSA") and the Florida Deceptive and Unfair Trade Practices Act ("FDUTPA"), and for breaches of contract and breaches of various fiduciary duties, including the duty of loyalty, in a case styled <u>Lottery.com</u>, Inc. f/k/a AutoLotto, Inc. and TinBu, LLC v. John J. Brier, Jr., Bin Tu, & Global Gaming Data, LLC (Case No.: 8:23-cv-2594-KKM-TGW).

In response, Defendants asserted counterclaims against Plaintiffs, essentially filing exactly the same claims they previously alleged in the Hillsborough County Circuit Court Action that had been compelled to arbitration, and they also joined JBBT to the lawsuit. The Company sought dismissal of the counterclaims, as well as a Temporary Restraining Order. The request for temporary injunctive relief was denied by the MDF in February 2024, and on June 11, 2024, the MDF also denied Plaintiffs' motion to dismiss, allowing the litigation to move forward. On June 25, 2024, Plaintiffs filed their answer and affirmative defenses to Defendants' counterclaims. On December 5, 2024, the parties participated in a court-ordered mediation; however, no resolution was reached.

On February 25, 2025, Plaintiffs' claims were dismissed without prejudice for failure to prosecute, and Defendants immediately moved for default judgment on their counterclaims. On March 14, 2025, the Court entered an order denying without prejudice Defendants' Motion for various deficiencies in the filing. On March 18, 2025, Defendants filed an Amended Motion for Default Judgment on their Counterclaims, followed by additional support for their purported damages on April 25, 2025. The Company engaged new counsel, who made an appearance on June 5, 2025, and thereafter sought and obtained additional time to respond to Defendants' filings. On August 6, 2025, Plaintiffs filed a Motion to Dismiss for Lack of Subject Matter Jurisdiction, or in the Alternative, Motion to Set Aside Default and Compel Arbitration, which was renewed on August 14, 2025. At the same time, Plaintiffs also submitted opposition briefing and supporting evidence to contradict Defendants' filings relating to damages evidence. Defendants' reply to Plaintiffs filings is due to be filed on August 29, 2025. In the interim, the MDF has stayed all deadlines in the case management order and has cancelled any pretrial proceedings, pending resolution on the parties' motions.

**Woodford Eurasia Assets, Ltd.**

Woodford Eurasia Assets, Ltd. ("Woodford") filed a complaint in the High Court of Justice in London chancery Division. October 16, 2023, The High Court of Justice in London Chancery Division ("the Court") dismissed an application for injunctive relief initiated by Woodford against the Company. (Case: FL-2023-000023. Woodford Eurasia Assets Limited v Lottery.com Inc.) The Court characterized Woodford's application as "fundamentally misconceived" and ordered Woodford to pay the Company's legal costs. Woodford subsequently, on the Judges' recommendation, withdrew the proceedings.

Woodford filed an additional action in the United States District Court for the District of Delaware on February 14, 2024 in Case No. 23-1317-GBW. Woodford subsequently filed a Notice of Voluntary Dismissal Without Prejudice, which stated that Woodford provides notice of dismissal of all claims without prejudice against Defendants Lotttery.com and its directors.

With the dismissal of this lawsuit by Woodford, no further action is required by Lottery.com or its directors at this time. The Company is determining its next course of action in resolving any further matters regarding Woodford.

The validity and application of the Woodford Loan Agreement Amendment is disputed by the Company.

Despite requests from the Company, Woodford has repeatedly amongst other things: failed to prove the amounts borrowed by the Company or claimed to have been advanced by Woodford to the Company; failed to indicate if it would accept accelerated payment of those verified amounts; failed to provide an anti-money laundering acceptable account to which payment could be made by the Company and failed to explain failure to respond to requests for other funding to be accepted in the context of the Woodford Loan Agreement; failed to respond to requests for funding under the accordion facility of the Woodford Loan Agreement; and failed to respond to allegations of money laundering and conspiracy to defraud the Company and the matter has been referred to the Company's legal counsel.

**McTurk**

On June 10, 2024, the Company and Matthew McGahan ("McGahan") (Company and McGahan collectively, "Defendants") filed their *Notice of Removal* and *No Answer Motion to Dismiss* a state court complaint filed by Sharon A. McTurk ("McTurk"), Rutherford Enterprises, LLC ("Rutherford"), SJB Solutions, LLC ("SJB") and Astra Supply Chain, LLC ("Astra") McTurk, Rutherford, SJB and Astra (collectively, "Plaintiffs" or "Appellant")) alleging fraudulent and negligent misrepresentation, aiding and abetting, and conspiracy by Defendants. On July 2, 2024, McGahan filed his *Motion to Dismiss for Lack of Personal Jurisdiction* and Defendants filed their *Motion to Dismiss for Failure to State a Claim and Supporting Memorandum of Law* ("Motions to Dismiss"). On July 19, 2024, Plaintiffs filed their response to the Motions to Dismiss. Defendants filed their reply on August 29, 2024 to Plaintiffs response to Defendants' Motions to Dismiss. On February 25, 2025, the Court entered an Order granting Defendants' Motion to Dismiss for Failure to State a Claim (the "Order"). Accordingly, Plaintiffs' complaint was dismissed with prejudice. All pending deadlines and hearings were terminated, and any other pending motions were denied as moot. Plaintiffs filed a notice of appeal as to the Order and subsequently filed Appellants' Brief. On June 16, Appellee's filed their Answer Brief with the 11th Circuit and on filed and served the Supplemental Appendix to Appellees' Answer Brief.

**Honey Tree Trading**

On September 4, 2024, Honey Tree Trading, LLC ("Honey Tree" or "Plaintiff") filed a verified original complaint (the "Complaint") against Lottery.com ("Lottery.com" or the "Company") and directors Matthew Howard McGahan ("McGahan"), Christopher Gooding ("Gooding"), Paul Jordan ("Jordan"), Tamer Hassan ("Hassan") and Warren Macal ("Macal" together with McGahan, Gooding, Jordan and Hassan, the "Individual Defendants" and, collectively Lottery.com, the "Defendants") in Delaware Chancery Court alleging, amongst other things, breach of contract by the Company with respect to certain notes and warrants and breach of fiduciary duties by the Individual Defendants. (CA. No. 2024-0921-NAC: styled Honey Tree Trading, LLC v. Lottery.com Inc., et al.). On October 10, 2024, Honey Tree amended its Complaint by filing an amended verified complaint (the "Amended Complaint") and a motion to expedite proceedings (the "Motion"). On November 6, 2024, at a hearing on Plaintiff's Motion (the "Hearing") and on the issue of breach of fiduciary duties against the Individual Defendants, Honey Tree's counsel informed the Court that, "[t]here is no question that Honey Tree is presently a shareholder and was a shareholder at the time it presented its pleading." On November 12, 2024, Plaintiff's counsel informed the Court that "Honey Tree did own shares prior to the filing of the Amended Complaint but sold them prior to that filing; and (ii) Honey Tree did not subsequently purchase shares of Lottery.com until November 7, 2024, the day after the [H]earing," (Plaintiff's Admission"). Following Plaintiff's Admission on November 13, 2024, Plaintiff dismissed without prejudice its claims against Hassan and Macal (the "Dismissal"). The Court ordered the Dismissal on November 15, 2024. On December 13, 2024, Plaintiff filed amended its Amended Complaint by filing a second amended verified complaint (the "Second Amended Complaint") and a renewed motion to expedite proceedings (the "Second Motion to Expedite") against the Company and remaining Individual Defendants. In accordance with a briefing stipulation entered by the Court on December 11, 2023, defendants shall answer the Second Amended Complaint and file its opposition to the Second Motion to Expedite by January 13, 2025. On January 13, 2025, the Company and Individual Defendants timely filed their Answer to the Second Amended Complaint, an Opposition to Motion to Expedite and a Partial Motion to Dismiss. On March 6, 2025, Plaintiff notified the Court that it withdraws its Motion to Expedite. On April 25, 2025, Plaintiff filed its Motion to Dismiss Count IV of the Second Amended Complaint as Moot. The motion was granted and Count IV of the Second Amended Complaint was dismissed by the Court.

**Manna World Ministries**

On September 8, 2023, Manna World Ministries and Summit Church (collectively, the "Plaintiffs") filed a civil lawsuit in the San Diego Superior Court, North County Division, under case number 37-2023-00039279-CU-CO-NC. The action was brought against Ryan Dickinson, Matthew Clemenson, Lawrence Dimatteo, Encircle, Inc., Paul King, LAD Holdings Group, LLC, MC Holdings Group, LLC, RD Holdings, LLC, and Jeff Sparrow (collectively, the "Defendants"). The Plaintiffs allege that the Defendants defaulted on a personal loan totaling $2,700,000, which was purportedly secured by their personal shares of stock in Lottery.com Inc. (the "Company"). On April 4, 2024, the Plaintiffs filed an amended complaint naming the Company as an additional defendant. The Company subsequently filed an answer and asserted affirmative defenses on December 6, 2024, denying all allegations of wrongdoing. The Company has stated its intent to vigorously contest the claims and to pursue all legal remedies available.

**PR Fire Limited**

On April 22, 2024, the Company, by and through its outside legal counsel, issued a cease and desist notice to PR Fire Limited, a U.K. based firm and Mr. Samuel Allcock, its CEO, for unlawful attempts to manipulate the public markets by disseminating false and misleading statements about the Company, its current officers and directors in certain articles caused to be published by PR Fire Limited. The Company's outside legal counsel reported the matter to the proper authorities.

On April 24, 2024, the Company, by and through its outside legal counsel, issued a cease-and-desist notice to certain individuals and entities in participation with a common scheme and acting in concert to financial harm to the Company by privately and publicly disseminating false and misleading statements about the Company, its current officers and directors. The Company's outside legal counsel reported the matter to the proper authorities.

**Dawn Nettles**

On February 14, 2025, Dawn Nettles, et. al ("Nettles" or "Plaintiff") filed a verified original class action (the "Complaint") against Lottery.com ("Lottery.com" or the "Company"), Rook TX LP, Gary N. Grief, IGT Solutions Corporation ("IGT") (collectively the "Defendants") in the District Court of Harris County, 333rd Judicial District (the "Court") alleging that the Defendants engaged in systematic fraud, misappropriated lottery funds, illegally sold tickets across state lines, and manipulated the outcome of lottery games, including, but not limited to the April 22, 2023 Lotto Texas drawing. On March 25, 2025, the judge issued a ruling that the claims against IGT be dismissed without prejudice. Nettles filed a notice on May 30, 2025 that she is "taking a Nonsuit Without Prejudice Against All Parties Effective Immediately." The Notice, under Texas Rule of Civil Procedure 162, terminated the case effective immediately.

**Jerry R. Reed**

On April 8, 2025, *Jerry R. Reed* ("Reed" or the "Plaintiff") commenced an action against *AL Tx Management, LLC; AutoLotto, Inc.; Matthew Clemensen; Colossus Bets Limited; Ryan Dickinson; Lawrence Anthony Dimatteo III; Lottery Now Inc.; <u>Lottery.com</u>, Inc.* ("<u>Lottery.com</u>" or the "Company"); *Bernard Marantelli; Qawi and Quddus, Inc.; Zeljeko Ranogajec; Rook GP, LLC; Rook TX LP;* and*White Swan Data Limited* (collectively, the "Defendants"). The action was filed under Case No. 25-BC03A-0007, styled *Jerry B. Reed v. Rook TX LP, Rook GP LLC, Colossus Bets Limited, <u>Lottery.com</u>, Inc., AutoLotto, Inc., Lottery Now, Inc., ALTX Management, LLC, Qawi and Quddus, Inc. d/b/a Luck Zone, Lawrence Anthony "Tony" Dimatteo III, Matthew Clemensen, Ryan Dickinson, Zeljeko Ranogajec a/k/a John Wilson, White Swan Data Limited, and Bernard Marantelli*, in the Business Court of Texas, Third Division.

The matter was subsequently removed to the 353rd Judicial District Court of Travis County, Texas and assigned Case No. D-1-GN-25-002446. Plaintiff seeks to recover funds that he contends were wrongfully excluded from the Lotto Texas jackpot he purportedly won on May 17, 2023.

**Item 1A. Risk Factors.**

As of the date of this Report, there have been no material changes to the risk factors disclosed in the Company's Annual Report, other than as set forth below. In addition, we may disclose additional changes to such factors or disclose additional factors from time to time in our future filings with the SEC. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

***Our business model and the conduct of our operations may have to vary in each U.S. jurisdiction where we do business to address the unique features of applicable law to ensure we remain in compliance with that jurisdiction's laws. Our failure to adequately do so may have an adverse impact on our business, financial condition, and results of operations.***

Lottery laws vary among U.S. jurisdictions. This means that our business model and the conduct of our operations may have to vary in each jurisdiction where we do business to ensure we remain in compliance with applicable laws. For example, some jurisdictions prohibit lottery ticket courier services, while some jurisdictions in the U.S. prohibit charging certain fees to the user, and further still, some jurisdictions require us to be licensed or registered, which will require us to incur certain costs in connection with the licensing or registration process. In each U.S. jurisdiction, we may be required to structure our business model and conduct our operations differently to address the unique features of applicable law.

Many of the U.S. jurisdictions in which we have historically done business or anticipate doing business in the future require that lottery game tickets be sold only by licensed retailers and prohibit sale or resale of lottery tickets at prices in excess of the purchase price designated by the applicable regulatory authority. Because lottery tickets are typically considered bearer instruments, we can purchase tickets on behalf of our users and customers and charge certain service fees within the limits of the applicable laws in each U.S. jurisdiction. In most cases, with Virginia being a notable exception, the laws do not specifically prohibit users from engaging our services to purchase lottery tickets on their behalf. However, certain types of fees are prohibited in certain jurisdictions. For example, Pennsylvania prohibits "any fee associated with the acquisition or transportation of lottery tickets or shares" and Illinois law prohibits service charges, handling fees or other costs added to the established price of a ticket. On June 25, 2025, Texas enacted a law to criminalize the sale of lottery tickets by couriers. In those states and other states with similar prohibitions, we need to structure our business model to comply with the relevant laws while still endeavoring to operate profitably.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

None.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

None.

**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | <br>**Description** |
| 10.1 | [Amendment and Restatement Agreement in respect of Loan Agreement (Deed), dated as of June 12, 2023, between Lottery.com and Woodford Eurasia Assets Ltd. (incorporated by reference to Exhibit 10.28 of the Annual Report on Form 10-K filed by Lottery.com with the SEC on June 15, 2023).](https://www.sec.gov/Archives/edgar/data/1673481/000149315223021506/ex10-28.htm) |
| 10.2 | [Loan Agreement, dated as of July 26, 2023, by and between Lottery.com Inc. and United Capital Investments London Limited (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by Lottery.com with the SEC on August 1, 2023).](https://www.sec.gov/Archives/edgar/data/1673481/000149315223026320/ex10-1.htm) |
| 10.3 | [Amended and Restated Loan Agreement, dated as of August 8, 2023, by and between Lottery.com Inc. and United Capital Investments London Limited (incorporated by reference to Exhibit 10.3 of the Quarterly Report on Form 10-Q filed by Lottery.com with the SEC on August 22, 2023).](https://www.sec.gov/Archives/edgar/data/1673481/000149315223029753/ex10-3.htm) |
| 10.4 | [Amendment to Amended and Restated Loan Agreement, dated as of August 18, 2023, by and between Lottery.com Inc. and United Capital Investments London Limited (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by Lottery.com with the SEC on August 24, 2023).](https://www.sec.gov/Archives/edgar/data/1673481/000149315223030096/ex10-1.htm) |
| 10.27\* | [Stock Purchase Agreement Between Lottery.com Inc. and Generating Alpha Ltd. dated November 16, 2024.](ex10-27.htm) |
| 10.35\* | [Amended - Stock Purchase Agreement Between Lottery.com Inc. and Generating Alpha Ltd. dated as of June 16, 2025.](ex10-35.htm) |
| 10.40\* | [Short-term Convertible Note Agreement Between Lottery.com Inc. and Generating Alpha Ltd. dated September 22, 2025.](ex10-40.htm) |
| 10.41\* | [Common Stock Purchase Warrant Agreement Between Lottery.com Inc. and Generating Alpha Ltd. dated September 22, 2025.](ex10-41.htm) |
| 10.42\* | [Registration Rights Agreement Between Lottery.com Inc. and Generating Alpha Ltd. dated September 22, 2025.](ex10-42.htm) |
| 10.43\* | [Securities Purchase Agreement Between Lottery.com Inc. and Generating Alpha Ltd. dated September 22, 2025.](ex10-43.htm) |
| 31.1\* | [Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act](ex31-1.htm) |
| 31.2\* | [Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act](ex31-2.htm) |
| 32.1\*\* | [Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act](ex32-1.htm) |
| 32.2\*\* | [Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act](ex32-2.htm) |
| 101.INS\* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104\* | Inline XBRL for the cover page of this Amended Quarterly Report on Form 10-Q/A included in the Exhibit 101 Inline XBRL Document Set |

---

\* Filed herewith.

\*\* Furnished herewith.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| **Lottery.com Inc.** | **Lottery.com Inc.** |
| By: | */s/ Matthew McGahan* |
| Name: | Matthew McGahan |
| Title: | Chief Executive Officer |
|  | (Principal Executive Officer) |
| **Lottery.com Inc.** | **Lottery.com Inc.** |
| By: | */s/ Robert J. Stubblefield* |
| Name: | Robert J. Stubblefield |
| Title: | Chief Financial Officer |
|  | (Principal Accounting/Financial Officer) |

---

Dated: November 19, 2025

## Exhibit 10.27

**Exhibit 10.27**

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## Exhibit 10.35

**Exhibit 10.35**

**<u>Amendment to the Stock Purchase Agreement</u>**

June 12, 2025

This Amendment amends the Stock Purchase Agreement by and between Lottery.com Inc. ("**Lottery**") and Generating Alpha Ltd. dated as of November 13, 2024 (the "**Stock Purchase Agreement**" or "**SPA**"). All capitalised terms used in this Amendment and not otherwise defined shall have the meanings attributed to them in the Stock Purchase Agreement.

Section 1.10. "<u>Commitment Amount</u>" shall mean the aggregate amount of Three Hundred Million Dollars ($300,000,000) which the Investor has agreed to provide to the Company to purchase the Company's Common Stock pursuant to the terms and conditions of this Agreement.

Section 1.15. "Safety Net Price" which defines the term "Safety Net Price" is hereby deleted in its entirety and restated as follows: "Section 1.15. The "<u>Safety Net Price</u>" for each Put Notice shall be set by Lottery and stated in the Put Notice. The Safety Net Price shall be no less than 80% of the closing sales price of the Company's Common Stock on the trading day on which the Company properly delivered the Put Notice to the Investor. In the event that the Volume Weighted Average Price ("VWAP") of the Common Stock is below the Safety Net Price during the Valuation Period, then that shall constitute a Put Adjustment. Notwithstanding the foregoing, Investor is not required to make a Put Adjustment, in the event the VWAP of the Common Stock is below the Safety Net Price during the Valuation Period, however, Investor may elect to do so one time during each Valuation Period. For the avoidance of doubt, Investor shall only be entitled to one (1) Put Adjustment during a single Valuation Period.

Section 1.35. "<u>Purchase Price</u>" shall mean ninety four percent (94%) of the Market Price.

Section 1.27. "<u>Market Price</u>" shall mean the lowest VWAP of the Common Stock during the Valuation Period.

Section 1.33. "<u>Valuation Period</u>" shall mean the trading day or trading days of all the stock from the Put Notice that was sold by the Investor and such sale of all of the stock from the Put Notice shall not exceed five (5) trading days after the Put Shares have been accepted and cleared by Investor's brokerage firm.

Section 1.53. "<u>Trading Cushion</u>", which defines the term "Trading Cushion" is hereby deleted in its entirety. For the avoidance of doubt, no trading cushion or a minimum of number of Trading Days between the expiration of any Valuation Period and the beginning of the next succeeding Valuation Period shall be applicable to the SPA or this Amendment henceforth.

Section 6.15. is hereby deleted in its entirety and restated as follows:

Section 6.15. <u>Acknowledgement of Terms</u>. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement. A Safety Net Price will be applied for any specified Put corresponding to the Put Notice. If the VWAP of the Common Stock is below the Safety Net Price during the Valuation Period then that shall constitute a Put Adjustment.

---

| | |
|:---|:---|
| 1 | ![](ex10-35_001.jpg) |

---

Section 7.1(w). Maximum Put Amount clause is deleted in its entirety and restated as follows: "(w) <u>Maximum Put Amount</u>. The amount of a Put corresponding to the Put Notice shall not exceed the Maximum Put Amount. If (i) the Company's Common Stock is suspended for any reason during trading hours on the Principal Market on any Trading Day during a Valuation Period or (ii) no trading volume in the Company's Common Stock on the Principal Market on any Trading Day during a Valuation Period then that shall constitute a Put Adjustment. In no event shall the Company be obligated to issue such additional shares if such issuance may result in non-compliance with any securities laws. If the Common Stock's bid price is less than .50, then the Purchase Price shall mean ninety percent (90%) of the Market Price. Any portion of a Put that would cause the Investor to exceed the Ownership Limitation shall automatically be withdrawn.

Section 7.1. <u>Conditions Precedent to the Obligations of the Company</u>. Section 7.1(ff)(q) is hereby deleted in its entirety. The remainder of Section 7.1(ff) shall remain unchanged.

Section 7.4. <u>Right of Investor Upon Default</u>. The following sentence from Section 7.4(b)is deleted and replaced in its entirety, "Where an Event of Default has occurred, the Investor shall have: (i) no obligation to accept a Put Notice or to consummate a closing under this Agreement; and (ii) the right to postpone the Put accordingly. A Put Adjustment shall result in the final adjusted amount of the Put corresponding to the Put Notice being reduced to thirty-three percent (33%)."

Section 12.4. <u>Commitment Fee</u>. Upon execution of this Amendment, the Company shall issue to the Investor 682,410 shares of the Company's common stock in a prefunded Common Stock Purchase Warrant in the same form as EXHIBIT E COMMON STOCK PURCHASE WARRANT. After the Company has received a total $100,000,000 of the Commitment Amount from Investor for each subsequent tranche of $50,000,000, , the Company shall issue an additional 1.5% of $50,000,000 in an amount to equal shares of the Company's common stock, in the form of a prefunded Common Stock Purchase Warrant in the same form as EXHIBIT E COMMON STOCK PURCHASE WARRANT (the "Commitment Fee"). Calculation for the number of shares to be included in the prefunded Common Stock Purchase Warrant shall be based off of the volume weighted average price of stock on the Clearing Date of the last Put Notice. Payment may be withheld from the last Put Notice until the prefunded Common Stock Purchase Warrant has been issued.

All other terms and conditions in the Agreement remain in place as originally agreed by the Parties.

This Amendment shall be deemed executed, delivered and performed in Nevis. It shall be solely and exclusively construed and enforced in accordance with Section 12.12 of the Stock Purchase Agreement.

---

| | |
|:---|:---|
| LOTTERY.COM INC. | LOTTERY.COM INC. |
| By: | ![](ex10-35_002.jpg) |
|  | Matthew McGahan, Chief Executive Officer |
| GENERATING ALPHA LTD. | GENERATING ALPHA LTD. |
| By: | ![](ex10-35_003.jpg) |
|  | Maria Cano, Director |

---

---

| | |
|:---|:---|
| 2 | ![](ex10-35_001.jpg) |

---

**Exhibit E** 

**COMMON STOCK PURCHASE WARRANT** 

**Lottery.com Inc**.

---

| | |
|:---|:---|
| **Warrant Shares: 682,410, subject to** | **Issuance Date: June 12, 2025 adjustment as set forth herein.** |

---

THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for value received, Generating Alpha Ltd., or its registered assigns (the "Holder") is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Issuance Date as set forth above and on or prior to the close of business on the fifth and half annual anniversary of the Issuance Date (the "Termination Date") but not thereafter, to subscribe for and purchase from **Lottery.com Inc**., a Delaware company with principal executive offices at 5049 Edwards Ranch Rd., 4<sup>th</sup> Floor Fort Worth, Texas 76109 (the "Company"), the number of shares of common stock, par value $0.001 per share (the "Common Stock") of the Company (as subject to adjustment hereunder, the "Warrant Shares") as set forth above. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2.

Section 1. <u>Warrant Shares</u>. This Warrant is issued and entered into pursuant to the Amendment to the Stock Purchase Agreement, dated as of June 12, 2025, by and between the Company and the Holder (the "Purchase Agreement").

Section 2. <u>Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exercise
 of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after Issuance Date
 and before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by
 notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed
 facsimile copy of the Notice of Exercise Form attached hereto. No ink-original Notice of Exercise shall be required, nor shall any
 medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything
 herein to the contrary (although the Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the
 Holder shall not be required to physically surrender this Warrant to the Company until the Warrant has been exercised in full, in
 which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the
 final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant shall have the effect of lowering the outstanding
 number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder
 and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company
 shall deliver any objection to any Notice of Exercise Form within one (1) Trading Day of delivery of such notice. **The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.** For purposes herein, the term "Trading Day" means any
 day that shares of Common Stock are listed for trading or quotation on any Trading Market.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. The aggregate exercise price of this Warrant was pre-funded to the Company prior to the Initial Exercise Date and, consequently,
 no additional consideration shall be required to be paid by the Holder to any Person to effect any exercise of this Warrant. The
 Holder shall not be entitled to the return or refund of all, or any portion, of such pre-paid aggregate exercise price under any
 circumstance or for any reason whatsoever, including in the event this Warrant shall not have been exercised prior to the Termination
 Date.

(c) <u>Mechanics of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Delivery of Certificates Upon Exercise</u>. Certificates for shares purchased hereunder shall be transmitted by the Company's then-engaged
 transfer agent (the "Transfer Agent") to the Holder by crediting the account of the Holder's broker with The Depository
 Trust Company through its Deposit or Withdrawal at Custodian system (" <u>DWAC</u> ") if the Company is then a participant
 in such system and there is an effective registration statement permitting the issuance of the Warrant Shares to, or resale of the
 Warrant Shares, by the Holder and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise
 by the date that is two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (such date, the "Warrant
 Share Delivery Date"). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated
 to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant
 has been exercised. The Company understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date
 could result in economic loss to the Holder. As compensation to the Holder for such loss, the Company agrees to pay (as liquidated
 damages and not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the amount of $500
 per Trading Day. The Company shall pay any payments incurred under this Section 2(c) in immediately available funds, or shares of
 Common Stock of the Company, in the Holder's discretion, upon demand. Notwithstanding anything contained in this provision,
 in the event the delay in the delivery of Warrant Shares is caused by delays with the transfer agent, the liquidated damages of $500
 per Trading Day shall not apply or be enforceable by Investor against the Company. Furthermore, in addition to any other remedies
 which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares
 by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a notice to
 such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately
 prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable
 through the date notice of revocation or rescission is given to the Company.

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| 4 | ![](ex10-35_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Delivery of New Warrants Upon Exercise</u>. If this Warrant shall have been exercised in part, the Company shall, at the request of Holder
 and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares,
 deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by
 this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

(iii) <u>Rescission Rights</u>. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing
 the Warrant Shares by the Warrant Share Delivery Date, then the Holder will have the right, at any time prior to issuance of such
 Warrant Shares, to rescind such exercise.

(iv) <u>Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise</u>. In addition to any other rights available to the Holder,
 if the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant
 Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its
 broker to purchase (in an open market transaction or otherwise), or the Holder's brokerage firm otherwise purchases, shares
 of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon
 such exercise (a "Buy-In"), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the
 Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds
 (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in
 connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed,
 and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which
 such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares
 of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.
 For example, if the Holder purchases Common Stock having a total purchase price of $11,000.00 to cover a Buy-In with respect to an
 attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000.00,
 under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000.00. The Holder shall
 provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the
 Company, evidence of the amount of such loss. Nothing herein shall limit Holder's right to pursue any other remedies available
 to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with
 respect to the Company's failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant
 as required pursuant to the terms hereof.

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| 5 | ![](ex10-35_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Fractional Shares or Scrip</u>. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of
 this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company
 shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
 by the Exercise Price or round up to the next whole share.

(vi) <u>Charges, Taxes and Expenses</u>. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer
 tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by
 the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder;
 provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder,
 this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder
 and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
 thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise.

(vii) <u>Closing of Books</u>. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this
 Warrant, pursuant to the terms hereof.

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| 6 | ![](ex10-35_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Holder's Exercise Limitations; Exchange Cap</u>. The Company shall not effect any exercise of this Warrant, and Holder shall not have the
 right to exercise any portion of this Warrant, to the extent that after giving effect to such issuance after exercise as set forth
 on the applicable Notice of Exercise, the Holder (together with the Holder's affiliates, and any other Persons acting as a
 group together with the Holder or any of the Holder's affiliates), would beneficially own in excess of the Beneficial Ownership
 Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by
 the Holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect
 to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i)
 exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its affiliates and (ii)
 exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation,
 any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein
 beneficially owned by the Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section
 2(c)(vii), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations
 promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation
 is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed
 in accordance therewith. To the extent that the limitation
contained in this Section 2(c)(vii) applies, the determination of whether this Warrant is exercisable (in relation to other securities
owned by the Holder together with any affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any affiliates) and of which portion of this Warrant
is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm
the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section
2(c)(vii), in determining the number of outstanding shares of Common Stock, Holder may rely on the number of outstanding shares of Common
Stock as reflected in (A) the Company's most recent periodic or annual report filed with the Commission, as the case may be, (B)
a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth
the number of shares of Common Stock outstanding. Upon the written or oral request of Holder, the Company shall within two Trading Days
confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported.
The "Beneficial Ownership Limitation" shall be 4.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder may decrease the Beneficial
Ownership Limitation at any time and the Holder, upon not less than sixty-one (61) days' prior notice to the Company, may increase
or waive the Beneficial Ownership Limitation provisions of this Section 2(c)(vii), provided that any such increase or waiver will not
be effective until the 61<sup>st</sup> day after such notice is delivered to the Company. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(c)(vii) to correct this paragraph (or
any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make
changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph
shall apply to a successor holder of this Warrant. In the event that the Company is prohibited from issuing any shares of Common Stock
pursuant to this Warrant due to the Company's failure to obtain the Shareholder Approval (such number of shares that are prohibited
from being issued are referred to herein as the "Exchange Cap Shares"), in lieu of issuing and delivering such Exchange Cap
Shares to the Holder, the Company shall pay cash to the Holder in exchange for the cancellation of such portion of this Warrant exercisable
into such Exchange Cap Shares (the "Exchange Cap Payment Amount") at a price equal to the sum of (x) the product of (A) such
number of Exchange Cap Shares and (B) the greatest Closing Sale Price of the Common Stock on any Trading Day during the period commencing
on the date the Holder delivers the applicable Exercise Notice with respect to such Exchange Cap Shares to the Company and ending on
the date of the aforementioned payment under this Warrant and (y) to the extent the Holder purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Exchange Cap Shares, any brokerage commissions
and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith. The limitations contained in this paragraph
shall apply to a successor holder of this Warrant.

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| 7 | ![](ex10-35_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Voluntary Adjustment By Company.</u> Subject to the rules and regulations of the primary Trading Market, the Company may at any time during
 the term of this Warrant, with the prior written consent of the Required Holders, reduce the then current Exercise Price to any amount
 and for any period of time deemed appropriate by the Board of Directors of the Company.

(f) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to this Warrant, the number of Warrant Shares
 that may be purchased upon exercise of this Warrant shall be increased proportionately, so that after such adjustment the aggregate
 Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect
 immediately prior to such adjustment (without regard to any limitations on exercise contained herein). For the avoidance of doubt,
 the aggregate Exercise Price payable prior to such adjustment is calculated as follows: the total number of Warrant Shares issuable
 upon exercise of this Warrant immediately prior to such adjustment (without regard to the Beneficial Ownership Limitation) multiplied
 by the Exercise Price in effect immediately prior to such adjustment. By way of example, if E is the total number of Warrant Shares
 issuable upon exercise of this Warrant immediately prior to such adjustment (without regard to the Beneficial Ownership Limitation),
 F is the Exercise Price in effect immediately prior to such adjustment, and G is the Exercise Price in effect immediately after such
 adjustment, the adjustment to the number of Warrant Shares can be expressed in the following formula: Total number of Warrant Shares
 after such adjustment = the number obtained from dividing [E x F] by G.

Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Fundamental Transaction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Transaction</u>.
 If, at any time while this Warrant is outstanding, the Company consummates any Fundamental Transaction, then, upon any subsequent
 exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such
 exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder, the number of shares of
 common stock of the successor or acquiring corporation (the "Successor Entity"), of the Company, if it is the surviving
 corporation, and any additional consideration (the "Alternate Consideration") receivable as a result of such Fundamental
 Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental
 Transaction, and any references herein to the "Company", whether standing alone or as a part of any other defined term,
 shall be deemed a reference to the successor or acquiring corporation in the Fundamental Transaction, or the Company if it is the
 surviving corporation, and this Warrant shall be so exercisable with respect to the Successor Entity or the Company, as applicable.
 For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
 Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental
 Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting
 the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as
 to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as
 to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. If so requested
 by the Company, the Successor Entity or the Holder, each of the Company, the Successor Entity and the Holder shall reasonably cooperate
 to execute and deliver such agreements and documents as required to effect the intent of the provisions of this Section 3(a) and
 the other provisions herein.

(ii) <u>Holder Election</u>. In the event that a Fundamental Transaction occurs prior to the full exercise of this Warrant, the Holder, in its sole
 discretion and as evidenced by written notice to the Company and the Successor Entity, if applicable, at any time shall have the
 right to elect to cause the Company and the Successor Entity, if applicable, to issue to Holder a new warrant of the Company or the
 Successor Entity (the "Fundamental Transaction Replacement Warrant"), which Fundamental Transaction Replacement Warrant
 shall be issued within three business days of such election by Holder, and shall reflect the terms and conditions herein following
 the effects of this Section 3(a), and the other provisions herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Terms of Replacement Warrant</u>. The Fundamental Transaction Replacement Warrant shall be substantially in the form of this Warrant (other
 than such changes as reasonably required to reflect any Successor Entity as the issuer shall be made), and shall provide for the
 acquisition of the stock of the Company and the Successor Entity, as applicable. Upon any issuance of the Fundamental Transaction
 Replacement Warrant, this Warrant shall thereafter be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Purchase at Holder's Election</u>. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company
 or any Successor Entity (as defined below) shall, at the Holder's option, exercisable at any time concurrently with, or within
 thirty (30) days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the
 applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the
 Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the date of the consummation of such
 Fundamental Transaction; provided, however, that, if the Fundamental Transaction is not within the Company's control, including
 not approved by the Board, the Holder shall only be entitled to receive from the Company or any Successor Entity the same type or
 form of consideration (and in the same proportion), at the Black Scholes Value of the unexercised portion of this Warrant, that is
 being offered and paid to the holders of Common Stock of the Company in connection with the Fundamental Transaction, whether that
 consideration be in the form of cash, stock or any combination thereof, or whether the holders of Common Stock are given the choice
 to receive from among alternative forms of consideration in connection with the Fundamental Transaction; provided, further, that
 if holders of Common Stock of the Company are not offered or paid any consideration in such Fundamental Transaction, such holders
 of Common Stock will be deemed to have received common stock of the Successor Entity (which Entity may be the Company following such
 Fundamental Transaction) in such Fundamental Transaction. "Black Scholes Value" means the value of this Warrant based
 on the Black-Scholes Option Pricing Model obtained from the "OV" function on Bloomberg determined as of the day of consummation
 of the applicable contemplated Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding
 to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental
 Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained
 from the historical volatility function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day
 immediately following the public announcement of the applicable contemplated Fundamental Transaction, (C) the underlying price per
 share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash, if any, plus the
 value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the highest VWAP during the period
 beginning on the Trading Day immediately preceding the public announcement of the applicable contemplated Fundamental Transaction
 (or the consummation of the applicable Fundamental Transaction, if earlier) and ending on the Trading Day of the Holder's request
 pursuant to this Section 3(a)(iv), (D) a remaining option time equal to the time between the date of the public announcement of the
 applicable contemplated Fundamental Transaction and the Termination Date, and (E) a zero cost of borrow. The payment of the Black
 Scholes Value will be made by wire transfer of immediately available funds (or such other consideration) within five (5) Business
 Days of the Holder's election (or, if later, on the date of consummation of the Fundamental Transaction).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stock Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes
 a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares
 of Common Stock; (ii) subdivides outstanding shares of Common Stock into a larger number of shares; (iii) combines (including by
 way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares; or (iv) issues by reclassification
 of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
 by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
 immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
 after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
 aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective
 immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution and shall
 become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

(c) <u>Subsequent Rights Offerings</u>. In addition to any adjustments herein, if after the Issuance Date of this Warrant, the Company grants, issues
 or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
 holders of any class of shares of Common Stock (the "Purchase Rights"), then the Holder will be entitled to acquire,
 upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder
 had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
 on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record
 is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record
 holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that,
 to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial
 Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership
 of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be
 held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial
 Ownership Limitation).

(d) <u>Pro Rata Distributions</u>. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other
 distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or
 otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend,
 spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"),
 at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
 to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
 upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
 Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken,
 the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
 (provided, however, that, to the extent that the Holder's right to participate in any such Distribution would result in the
 Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to
 such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the
 portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto
 would not result in the Holder exceeding the Beneficial Ownership Limitation).

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| 9 | ![](ex10-35_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Circumvention</u>.
 The Company shall not undertake any actions or fail to take any actions which would reasonably be expected to frustrate the intent
 of this Warrant, and shall take such actions as reasonably required to effect such intent.

(f) <u>Voluntary Reduction</u>. The Company may unilaterally reduce the Exercise Price at any time.

(g) <u>Calculations</u>.
 All calculations under this warrant shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For
 purposes of this Warrant, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the
 sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding. For the avoidance of doubt,
 the adjustments to the number of Warrant Shares and to the Exercise Price as set forth in each of Section 3, Section 3(a) and Section
 3(b), and any other adjustment or modification provisions herein, shall each operate independently of each other, and cumulatively.

(h) <u>Notice to Holder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustments</u>.
 Whenever the Exercise Price or the number of Warrant Shares is adjusted pursuant to any provision in this Warrant, the Company shall
 promptly email to the Holder a notice setting forth the Exercise Price and the number of Warrant Shares after such adjustment and
 setting forth a brief statement of the facts requiring such adjustment.

(ii) <u>Other Events.</u> If (A) the Company shall undertake any of the actions as set forth in Section 3(c) or Section 3(d), (B) the approval
 of any shareholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation
 or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any
 compulsory share exchange whereby the Common Stock is converted into other securities; or (C) the Company shall authorize the voluntary
 or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, to the extent that such
 information constitutes material non-public information (as determined in good faith by the Company) the Company shall deliver to
 the Holder, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
 (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or
 if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions,
 redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
 transfer, share exchange, liquidation, dissolution or winding up is expected to become effective or close, and the date as of which
 it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
 cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided
 that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate
 action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material,
 non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the
 SEC pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing
 on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth
 herein.

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| 10 | ![](ex10-35_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i)</u> <u>Other Events</u>. In the event that the Company (or any Subsidiary (as defined in the Purchase Agreement)) shall take any action to which
 the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from actual dilution
 or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions
 (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features),
 then the Company's board of directors shall in good faith determine and implement an appropriate adjustment in the number
 of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section
 2(e) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2,
 provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against
 such dilution, then the Company's board of directors and the Holder shall agree, in good faith, upon an independent investment
 bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding absent
 manifest error and whose fees and expenses shall be borne by the Company.

Section 4. <u>Transfer of Warrant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transferability</u>.
 Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including, without limitation,
 any registration rights) are transferable, in whole or in part, upon surrender of this Warrant to the Company or its designated agent
 via email together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder
 or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
 and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees,
 as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor
 a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant,
 if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a
 new Warrant issued.

---

| | |
|:---|:---|
| 11 | ![](ex10-35_001.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>New Warrants</u>. Subject to compliance with all applicable securities laws, this Warrant may be divided or combined with other Warrants
 upon presentation hereof to the Company via email, together with a written notice specifying the names and denominations in which
 new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any
 transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in
 exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or
 exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number
 of Warrant Shares issuable pursuant thereto.

---

| | |
|:---|:---|
| Section 5. | <u>Warrant Register</u>. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the "Warrant Register"), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. |
| Section 6. | <u>Miscellaneous</u>. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory
 to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and
 in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which shall not include the posting
 of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver
 a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

(b) <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or
 granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding Trading
 Day.

---

| | |
|:---|:---|
| 12 | ![](ex10-35_001.jpg) |

---

---

| | |
|:---|:---|

|  | <u>Governing Law and Jurisdiction</u>. This Warrant shall be deemed executed, delivered and performed in Saint Kitts and Nevis ("Nevis"). This Warrant shall be solely and exclusively construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed solely and exclusively by the internal laws of Nevis, without giving effect to any choice of law or conflict of law provision or rule (whether of Nevis or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than Nevis. The Company irrevocably and exclusively consents to and expressly agrees that binding arbitration in Nevis conducted by the Arbitrator Conflict Resolution Centre shall be their sole and exclusive remedy for any dispute arising out of or relating to the Warrant, Irrevocable Instructions or any other agreement between the parties, the Company's transfer agent or the relationship of the parties or their affiliates, and that the arbitration shall be conducted via telephone or teleconference. If the Arbitrator is not available, a different arbitrator in Nevis shall be chosen by the Holder and agreed upon by the Company. Company covenants and agrees to provide written notice to Holder via email prior to bringing any action or arbitration action against the Company's transfer agent or any action against any person or entity that is not a party to this Warrant that is related in any way to this Warrant or any of the Exhibits under this Warrant or any transaction contemplated herein or therein, and further agrees to timely notify Holder to any such action. Company acknowledges that the governing law and venue provisions set forth in this Warrant are material terms to induce Holder to enter into the Transaction Documents and that but for Company's agreements set forth in this section, Holder would not have entered into the Transaction Documents. In the event that the Holder needs to take action to protect their rights under the Warrant, the Holder may commence action in any jurisdiction needed with the understanding that the Warrant shall still be solely and exclusively construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed solely and exclusively by the internal laws of Nevis, without giving effect to any choice of law or conflict of law provision or rule (whether of Nevis or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the Nevis. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note or any other related transaction document by email. This section and provision of the Warrant will not apply to the Confession of Judgment. |

---

---

| | |
|:---|:---|
| 13 | ![](ex10-35_001.jpg) |

---

(d) <u>Restrictions</u>.
 The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions
 upon resale imposed by state and federal securities laws.

(e) <u>Non-waiver and Expenses</u>. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
 as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies. Without limiting any other provision
 of this Warrant or the Purchase Agreement, if the Company fails to comply with any provision of this Warrant, which results in any
 material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses
 including, but not limited to, reasonable attorneys' fees, including those of appellate proceedings, incurred by the Holder
 in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

(f) <u>Notices</u>.
 Any notice, request or other document required or permitted to be given or delivered hereunder shall be delivered in accordance with
 the notice provisions of the Purchase Agreement.

(g) <u>Limitation of Liability</u>. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
 Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
 for the purchase price of any Common Stock or as a shareholder of the Company, whether such liability is asserted by the Company
 or by creditors of the Company.

(h) <u>Remedies</u>.
 The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
 to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
 for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
 the defense in any action for specific performance that a remedy at law would be adequate.

(i) <u>Successors and Assigns</u>. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
 to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
 of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
 shall be enforceable by the Holder or holder of Warrant Shares.

---

| | |
|:---|:---|
| 14 | ![](ex10-35_001.jpg) |

---

---

| | |
|:---|:---|
| (j) | <u>Amendment</u>. Other than as specifically set forth herein, this Warrant may be modified or amended or the provisions hereof waived only with the written consent of the Company and the Holder. |
| (k) | <u>Severability</u>. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. |
| (l) | <u>Headings</u>. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. |
| (m) | <u>Execution in Counterparts, Electronic Transmission</u>. This Warrant may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. |
| (n) | <u>Definitions</u>. For purposes herein, the following terms shall have the following meanings: |
|  | "Board" means the Board of Directors of the Company. |
|  | "Common Stock Equivalents" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. |
|  | "Fundamental Transaction" means (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company or any Subsidiary, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock or 50% or more of the voting power of the common equity of the Company, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires 50% or more of the outstanding shares of Common Stock or 50% or more of the voting power of the common equity of the Company. |

---

---

| | |
|:---|:---|
| 15 | ![](ex10-35_001.jpg) |

---

---

| |
|:---|
| "Person" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. |
| "Subsidiary" means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof. |
| "Trading Market" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing). |
| "VWAP" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. |

---

*[Signatures appear on following page]* 

---

| | |
|:---|:---|
| 16 | ![](ex10-35_001.jpg) |

---

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of Issuance Date.

---

| | |
|:---|:---|
| LOTTERY.COM INC. | LOTTERY.COM INC. |
| By: | ![](ex10-35_002.jpg) |
|  | Matthew McGahan, Chief Executive Officer |
| *Agreed and accepted:* | *Agreed and accepted:* |
| GENERATING ALPHA LTD. | GENERATING ALPHA LTD. |
| By: | ![](ex10-35_003.jpg) |
| Printed Name: | Maria Cano |
| Title: | Director |

---

---

| | |
|:---|:---|
| 17 | ![](ex10-35_001.jpg) |

---

NOTICE OF EXERCISE

THE UNDERSIGNED Buyer hereby exercises the right to receive_________________ of the shares of Common Stock ("Warrant Shares") of Lottery.com Inc., a Delaware corporation (the "Company"), evidenced by the attached copy of the Common Stock Purchase Warrant (the "Warrant"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant. As this is a prefunded warrant, no additional consideration shall be paid upon exercise.

<u>Delivery of Warrant Shares</u>. The Company shall deliver to the Buyer __________________ Warrant Shares in accordance with the terms of the Warrant.

---

| | |
|:---|:---|
| Date: |  |
|  | (Print Name of Registered Buyer) |
|  | By: |
|  | Name: |
|  | Title: |

---

ASSIGNMENT FORM

LOTTERY.COM INC.

FOR VALUE RECEIVED, [ ] all of or [ ] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to _____________________________________________________________________ whose address is _______________________________________________________________________________.

Dated: ________________, 202___

Holder: [_______________________]

By:   <br> Name: <br> Title:

## Exhibit 10.40

**Exhibit 10.40**

![](ex10-40_001.jpg)

![](ex10-40_002.jpg)

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## Exhibit 10.41

**Exhibit 10.41**

![](ex10-41_001.jpg)

![](ex10-41_002.jpg)

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## Exhibit 10.42

**Exhibit 10.42**

![](ex10-42_001.jpg)

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## Exhibit 10.43

**Exhibit 10.43**

![](ex10-43_001.jpg)

![](ex10-43_002.jpg)

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Matthew McGahan, certify that:

1. I
 have reviewed this Quarterly Report on Form 10Q of Lottery.com Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange
 Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

(b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The
 registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
 financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or
 persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 19, 2025 | By: | */s/ Matthew McGahan* |
|  |  | Matthew McGahan |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Robert J. Stubblefield, certify that:

1. I
 have reviewed this Quarterly Report on Form 10Q of Lottery.com Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
 Rules 13a-15(f) and 15d-15 (f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

(b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The
 registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
 financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or
 persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 19, 2025 | By: | */s/ Robert J. Stubblefield* |
|  |  | Robert J. Stubblefield |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial/Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SS. 1350 AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with this Quarterly Report of Lottery.com Inc. (the "<u>Company</u>") on Form 10Q for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission (the "<u>Report</u>"), I, Matthew McGahan, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company at the dates and for the periods indicated.

---

| | | |
|:---|:---|:---|
| Date: November 19, 2025 | By: | */s/ Matthew McGahan* |
|  |  | Matthew McGahan |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SS. 1350 AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with this Quarterly Report of Lottery.com Inc. (the "<u>Company</u>") on Form 10Q for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission (the "<u>Report</u>"), I, Robert J. Stubblefield, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company at the dates and for the periods indicated.

---

| | | |
|:---|:---|:---|
| Date: November 19, 2025 | By: | */s/ Robert J. Stubblefield* |
|  |  | Robert J. Stubblefield |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial/Accounting Officer) |

---