Nasdaq:LTRY

Lottery.com Announces Strong First Quarter Results

Published

3 years ago

May 16, 2022

GlobeNewswire

First quarter 2022 revenue of $21.2 million, up $15.7 million from the prior-year period

First quarter 2022 gross profit of $18.0 million, up $15.5 million from the prior-year period

First quarter 2022 net loss of $15.8 million, Adjusted EBITDA of $7.7 million¹

AUSTIN, Texas, May 16, 2022 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company that is transforming how, where and when the lottery is played, reported financial results for the first quarter ended March 31, 2022.

Tony DiMatteo, Lottery.com Co-Founder and CEO, commented, “I’m pleased with our first quarter results and the team’s continued focus on our core business and generating strong Adjusted EBITDA. Once again, LotteryLink has demonstrated its ability to contribute to our top and bottom line growth and expand our user base with limited advertising spend. In our B2C business, our focus on market testing and securing permission to advertise on large digital media platforms has solidified our foundation to launch accretive user acquisition campaigns over the balance of the year.”

European Gaming Congress 2024 (Warsaw, Poland)

Mr. DiMatteo continued, “So far in the second quarter, our B2C campaigns have been positive with solid increases in app downloads versus the prior year period while achieving relatively low customer acquisition costs. LotteryLink’s promotional programs have generated new users and created interest from additional national consumer brands looking to utilize LotteryLink for their marketing campaigns. Additionally, we have launched Phase 1 of Project Nexus. We believe that these positive developments, combined with our strong balance sheet, position us well for future growth.”

First Quarter 2022 Financial Highlights

Q1 2022 Financial Highlights	Three Months Ended
Q1 2022 Financial Highlights	March 31,
	2022			2021				Change
(in millions)
Revenues	$	21.2		$	5.5		$	15.7
Gross profit	$	18.0		$	2.5		$	15.5
Net Loss	$	(15.8	)	$	(5.5	)	$	(10.3	)
Adjusted EBITDA	$	7.7		$	(2.6	)	$	10.3
Cash	$	50.8		$	18.3		$	32.5
Debt	$	3.5		$	41.5		$	(38.0	)

1 – Adjusted EBITDA is a financial measure that is not calculated in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). See “Non-GAAP Financial Measures” below for a discussion of the definition of Adjusted EBITDA and “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of this measure to net loss.

First quarter 2022 revenue was $21.2 million, an increase of $15.7 million, or 287%, from the first quarter of 2021. The growth was primarily driven by the sale of LotteryLink credits to a LotteryLink affiliate, primarily to acquire pre-paid promotional rewards that may be issued by such affiliate to consumers for their purchase of lottery games and services from Lottery.com upon activation of an account.

First quarter 2022 gross profit was $18.0 million, an increase of $15.5 million from the first quarter of 2021. The increase was primarily driven by the sale of LotteryLink credits to the above referenced LotteryLink affiliate. As a result of the delayed launch of such affiliate’s promotional program, most of the pre-paid promotional rewards expired without being issued to consumers. As a result, the Company did not incur costs associated with redemption of most of such LotteryLink credits.

First quarter 2022 net loss was $15.8 million compared to a net loss of $5.5 million in the first quarter of 2021. The increase was primarily driven by the incurrence of $22.2 million of non-cash stock compensation expense and other increased personnel costs, which were offset by the strong gross profit described above.

First quarter 2022 Adjusted EBITDA was $7.7 million, an increase of $10.3 million from the first quarter of 2021. The increase was driven by the strong gross profit described above, partially offset by increased public company expenses and higher expenses associated with the execution of growth initiatives.

Cash as of March 31, 2022, was $50.8 million, an increase of $32.5 million from March 31, 2021, driven primarily by proceeds from the business combination with Trident Acquisition Corp. in October 2021, and strong operating results, partially offset by an increase in working capital.

Debt as of March 31, 2022, was $3.5 million, a decrease of $38.0 million from March 31, 2021, driven primarily by the conversion of the Company’s convertible debt into equity, in conjunction with the business combination.

Update on Key Initiatives

B2C User Growth
- Expanded B2C marketing campaigns have launched in Q2 2022 and resulted in solid increases in app downloads versus the prior year period
- Achieved customer acquisition costs in-line with expectations to date in Q2 2022
LotteryLink and B2B
- Added new LotteryLink affiliates since the beginning of the year, including the conversion of data service customers
- Continued to develop pipeline of new LotteryLink master affiliates and their sub-affiliates, including national consumer brands
Project Nexus
- Launched Phase 1 in Q2 2022, which is expected to improve scalability, security and ability to implement product improvements
New Markets
- Remain on track for approval to enter into five new domestic jurisdictions by the end of 2022

Upcoming Conference Participation

Representatives from the Company plan to attend the following upcoming investor conferences:

B Riley FBR 22nd Annual Institutional Investor Conference on May 26, 2022, in Beverly Hills, CA
Cowen’s 50th Annual Technology, Media & Telecom Conference on June 1, 2022, in New York City

Conference Call

This morning at 8:30 AM ET, the Company will host a conference call to discuss its first quarter 2022 results. A live webcast of the conference call will be available on the Investor Relations section of the Lottery.com website at https://ir.lottery.com. For those who cannot listen to the live webcast, a replay of the conference call will be available on the Lottery.com Investor Relations website.

To join by telephone, please dial 877-313-2495 or 929-517-0906 if calling from outside the U.S. The conference code is 9189693. Please dial in a minimum of 15 minutes prior to the start time to ensure a timely connection to the call. An operator will register your name and organization.

About Lottery.com

Lottery.com is a leading technology company that is transforming how, where and when lottery is played. Its engaging mobile and online platforms enable players located in the United States and internationally to remotely purchase legally sanctioned lottery games. Fans and subscribers look to Lottery.com for compelling, real-time results on more than 800 lottery games from more than 40 countries. Additionally, commercial partners and affiliates can utilize LotteryLink to provide Lottery.com products to their customers. Through WinTogether.org, Lottery.com is fundamentally changing how non-profit donors are incentivized to action by gamifying charitable giving. In all that it does, Lottery.com’s mission remains the same: an uncompromising passion to innovate, grow a new demographic of enthusiasts, deliver responsible and trusted solutions, and promote community and philanthropic initiatives. For more information, visit http://www.lottery.com.

Non-GAAP Financial Measures

This press release includes EBITDA and Adjusted EBITDA, which are non-GAAP performance measures that we use to supplement our results presented in accordance with U.S. GAAP. We believe EBITDA and Adjusted EBITDA are useful in evaluating our operating performance, similar to measures reported by our peers, and regularly used by analysts, investors and other interested parties in analyzing operating performance and prospects. EBITDA and Adjusted EBITDA are not intended to be substitutes for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

We define and calculate EBITDA as net income or loss before the impact of interest income or expense, income tax expense or benefit, depreciation and amortization, and Adjusted EBITDA as EBITDA, as further adjusted for stock-based compensation and certain other non-recurring, non-cash or non-core items.

We include these non-GAAP financial measures because they are used by management to evaluate our core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. The financial statement tables that accompany this press release include a reconciliation of EBITDA and Adjusted EBITDA to their most comparable U.S. GAAP financial measures.

Forward Looking Statements

This press release contains statements that constitute “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”). All statements, other than statements of present or historical fact included in this press release, regarding Lottery.com’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. Except as otherwise required by applicable law, Lottery.com disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Lottery.com cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Lottery.com. In addition, Lottery.com cautions you that the forward-looking statements contained in this press release are subject to the following risks and uncertainties: 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 the lottery, lottery games or online gaming or betting; our inability to attract and retain users, including as a result of failing to appear in Internet search engine results; our continued ability to use domain names to promote and increase the value of our brand; adverse impacts relating to the spread of, and governmental responses taken with respect to, health epidemics such as the COVID-19; scrutiny by stakeholders with respect to responsible gaming and ethical conduct; our ability to achieve profitability and growth in the newly-developed market for online lottery games; our inability to profitably expand into new markets or capitalize on new gaming and lottery industry trends and changes, such as by developing successful new product offerings; the effectiveness of our marketing efforts in developing and maintaining our brand and reputation; failure to offer high-quality user support; adverse impacts to user relationships resulting from disruptions to our information technology; the vulnerability of our information systems to 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 or updates in the Internet, mobile or personal devices, or new technology platforms or network infrastructures; the exposure of our online infrastructure to risks relating to new and untested distributed ledger technology; our inability to comply with complex, ever-changing and multi-jurisdictional regulatory regimes and other legal requirements applicable to the gaming and lottery 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 software component products for our gaming platforms, product offerings and the processing of user payments and withdrawals; our inability to maintain successful relationships and/or agreements with lottery organizations and other third-party marketing or service provider affiliates; 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 effectiveness of our transition and compliance with the regulatory and other requirements of being a public company; operational risks including those arising from factors impacting the international supply chain; limited liquidity and trading of our securities; and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K filed by Lottery.com with the SEC on April 1, 2022, and the other documents filed, or to be filed, by Lottery.com with the SEC. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that Lottery.com has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov.

Lottery.com Inc.
Condensed Consolidated Statements of Operations
Three Months Ended March 31, 2022 and 2021

	Three Months Ended March 31,
	2022			2021

Revenue	$	21,150,892		$	5,461,539
Cost of revenue		3,165,469			2,946,981
Gross profit		17,985,423			2,514,558

Operating expenses:
Personnel costs		25,975,863			1,095,793
Professional fees		3,055,039			2,415,198
General and administrative		3,399,896			1,388,574
Depreciation and amortization		1,373,925			367,259
Total operating expenses		33,804,723			5,266,824
Loss from operations		(15,819,300	)	$	(2,752,266	)

Other expenses
Interest (income) expense		(953	)		2,472,048
Other (income) expense		(2,436	)		231,720
Total other expenses, net		(3,389	)		2,703,768

Net loss before income tax	$	(15,815,911	)	$	(5,456,034	)
Income tax expense (benefit)		–
Net loss		(15,815,911	)		(5,456,034	)

Other comprehensive loss
Foreign currency translation adjustment, net		(1,064	)		–
Comprehensive loss		(15,816,975	)		(5,456,034	)

Net income attributable to noncontrolling interest		129,222			–
Net loss attributable to Lottery.com Inc.		(15,687,753	)		(5,456,034	)


Net loss per common share
Basic and diluted	$	(0.33	)	$	(0.24	)

Weighted average common shares outstanding
Basic and diluted		46,832,919			22,888,700

Lottery.com Inc
Condensed Consolidated Balance Sheet
Unaudited
	March 31,			December 31,
ASSETS		2022			2021
	(Unaudited)
Current assets:
Cash	$	50,795,889		$	62,638,970
Accounts receivable		35,796,548			21,696,653
Prepaid expenses		12,843,029			13,896,638
Other current assets		246,599			226,200
Total current assets		99,682,065			98,458,461

Notes receivable		6,500,000			–
Investments		250,000			250,000
Goodwill		19,590,758			19,590,758
Intangible assets, net		28,500,219			28,710,980
Property and equipment, net		121,293			141,279
Total assets	$	154,644,335		$	147,151,478

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Trade payables	$	2,559,846		$	1,006,535
Deferred revenue		544,643			662,335
Notes payable – current		3,477,339			3,771,340
Accrued interest		180,281			176,260
Accrued and other expenses		4,081,672			4,528,815
Total current liabilities		10,843,781			10,145,285

Long-term liabilities:
Other long term liabilities		1,522			1,169
Total long-term liabilities		1,522			1,169

Total liabilities		10,845,303			10,146,454

Commitments and contingencies

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, 46,928,367 and 46,808,251 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		46,928			46,808
Additional paid-in capital		263,022,161			240,411,298
Accumulated other comprehensive loss		(1,719	)		(655	)
Accumulated deficit		(121,919,207	)		(106,232,518	)
Total Lottery.com Inc. stockholders’ equity		141,148,163			134,224,933
Noncontrolling interest		2,650,869			2,780,091
Total Equity		143,799,032			137,005,024

Total liabilities and stockholders’ equity	$	154,644,335		$	147,151,478

Lottery.com Inc.
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2022 and 2021


	For the three months ended
	March 31,
		2022			2021

Cash flow from operating activities
Net loss attributable to Lottery.com Inc.	$	(15,686,689	)	$	(5,456,034	)
Adjustments to reconcile net loss to net cash used in operating activities:
Net income attributable to noncontrolling interest		(129,222	)		–
Depreciation and amortization		1,373,925			367,259
Non-cash interest expense		–			1,841,807
Stock-based compensation expense		22,174,488			2,160

Changes in assets & liabilities:
Accounts receivable		(14,099,895	)		–
Prepaid expenses		1,053,609			894,872
Other current assets		(20,399	)		(54,853	)
Trade payables		1,553,311			(354,736	)
Deferred revenue		(117,692	)		(2,039,113	)
Accrued interest		4,021			(605,961	)
Accrued and other expenses		(10,648	)		1,512,125
Other long term liabilities		353			–
Net cash provided by operating activities		(3,904,838	)		(3,892,474	)

Cash flow from investing activities
Purchases of property and equipment		(18,305	)		(57,452	)
Purchases of intangible assets		(1,124,873	)		(3,050,000	)
Net cash used in investing activities		(1,143,178	)		(3,107,452	)

Cash flow from financing activities
Issuance of digital securities		–			108,332
Proceeds from exercise of options and warrants		–			895
Proceeds from issuance of convertible debt		–			19,282,619
Issuance of notes receivable		(6,500,000	)		–
Principal payments on debt		(294,001	)		(4,856,250	)
Net cash provided by financing activities		(6,794,001	)		14,535,596
Effect of exchange rate changes on cash		(1,064	)		–
Net change in net cash and restricted cash		(11,843,081	)		7,535,670
Cash and restricted cash at beginning of period		62,638,970			10,775,511
Cash and restricted cash at end of period		50,795,889			18,311,181

SUPPLEMENTAL DISCLOSURES:
Interest paid in cash	$	–		$	24,280
Taxes paid in cash	$	–		$	–
Non cash investing and financing activities
Stock-based compensation expense	$	194,695		$	–
Issuance of warrants	$	241,800		$	–
Conversion of convertible debt into common stock	$	–		$	935,000
Purchase of intangible assets through the issuance of convertible debt	$	–		$	15,450,000


Lottery.com Inc.
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

	Three Months Ended
	March 31,
	2022			2021				Change
(in millions)
Net income (loss)	$	(15.8	)	$	(5.5	)	$	(10.4	)
Interest (income) expense		(0.0	)		2.5			(2.5	)
Income tax expense (benefit)		–			–			–
Depreciation and amortization expenses		1.4			0.4			1.0
EBITDA (non-GAAP)		(14.5	)		(2.6	)		(11.8	)

Non-cash stock compensation expense		22.2			0.0			22.2
Adjusted EBITDA (non-GAAP)	$	7.7		$	(2.6	)	$	10.3

Lottery.com Contact:

Matthew Schlarb

VP, Investor Relations

(512) 585-7789

[email protected]

Jody Burfening/Harriet Fried

LHA Investor Relations

(212) 838-3777

[email protected]

Nasdaq:LTRY

Lottery.com Inc. Chairman Addresses Effective Form S-1 Registration Statement

Published

1 month ago

October 18, 2024

GlobeNewswire

lotterycom-inc.-chairman-addresses-effective-form-s-1-registration-statement

FORT WORTH, Texas, Oct. 18, 2024 (GLOBE NEWSWIRE) — Lottery.com Inc. (NASDAQ: LTRY; LTRYW) (“Lottery.com” or the “Company”), a leading technology company in digital lottery and sports entertainment, is pleased to announce that the U.S. Securities and Exchange Commission (“SEC”) has declared the Company’s Form S-1 Registration Statement effective on October 16, 2024 (“Registration Statement”) (File Number: 333-281925). Following the declaration, Matthew McGahan, Lottery.com Chairman and CEO, wrote an open letter to the Company’s shareholders to address the Company’s future and address accusations made again the Company and its directors and executives.

McGahan wrote:

Dear Shareholders,

In October 2022, when I joined the Board of Lottery.com Inc. I was primarily tasked with leading a turnaround after years of mismanagement and turmoil, largely stemming from issues tied to the SPAC and business combination. At that time, the Company was on the verge of collapse, with stories of its challenges circulating widely across the internet and rampant rumors being made by detractors wishing to destabilize the business to suit their own ulterior motives. Among the many hurdles were regulatory investigations, listings issues with Nasdaq (including being delisted in May 2023 before being subsequently relisted), significant loss of staff, the breakdown of operations, and a critical shortage of working capital—each posing severe and critical threats to the Company’s future.

Within the first few weeks, it became evident that a comprehensive overhaul and restart was needed. We assembled a top-tier legal team and a new management group to draft and implement a viable and realistic turnaround strategy. The plan included developing a fresh strategic vision, regaining full compliance with Nasdaq listing and SEC reporting requirements, and it laid the foundation for the future monetization of the Company’s two key assets: Lottery.com and Sports.com.

Since then, we have restructured the entire leadership, installed a globally experienced Board with a proven track record in turnaround situations, and have introduced a new executive management team, supported by funding partners. Alongside this, we have brought in seasoned business consultants, revamped our investor relations team, and aligned with a new investment banking partner. This ambitious agenda was essential to stabilizing the Company and facilitated achieving a major milestone of submitting our Form S-1 in early September.

I would be remiss if I fail to address the unprecedented attacks the Company, its directors, and management have faced and continue to endure during the turn around. Many of the difficulties faced by our new team reflect the history of the Company which led to a complete turnover of the board and management. We have never underestimated the genuineness of some of the concerns felt by shareholders but there are also actors out there with bad or indeed, criminal intent. The visceral nature of these attacks suggests more sinister motives. These attacks have forced the Company to divert resources to supporting our top tier legal team. We have been assaulted in the Courts and in the (often pay for news) press and internet sites and we have reported to the authorities our suspicions of major stock tampering by named individuals, some of those with criminal records. We have reported these activities to the appropriate regulatory agencies and are cooperating fully with any investigations. The Board and Management have equally faced threats to their lives and welfare. We stand by the decisions we have made and will vigorously defend all attacks against the Company and against members of the Board and Management (who have proved their commitment to the Company repeatedly with little or no cash payment). That they have accepted shares in lieu of salaries is proof of their belief in the Company and their commitment to restoring shareholder value.

I am proud to announce another key step in Lottery.com’s turnaround. The SEC has released a Declaration of Effectiveness for our Form S-1 Registration Statement. This milestone marks a significant step forward, but we remain acutely aware that this is not the time to relax. We must continue to focus intensely on our strategic and operational goals, as we embark on the next phase of growth.

Almost all of the difficulties that the current management and Board of Directors of Lottery.com Inc. have faced principally reflect events that occurred prior to our current management’s and Board’s attempts to revitalize the Company. As a result, we have had to defend ourselves in the press, against various websites (that poorly or don’t verify the facts behind their allegations), and indeed, on occasion, in the courts. In fact, several of our management have had to endure at times physical threats to their wellbeing. We are sorry to say that we can only conclude that, for various reasons, our Company and our people have become the target of bad actors with totally self-serving interests.

We recognize the legitimate concern of our stakeholders who have put faith and trust into the Company, and today we remain committed to moving this Company past its prior difficulties. We will vigorously defend against any Company, management or Board attacks. In fact, today, many members of our management and Board have been willing to accept shares in lieu of cash salary as a demonstration of their belief in the Company and its future.

We are grateful to our shareholders, business partners, and investors for their steadfast support during this pivotal period. Now, we are prepared to execute on a 24-month plan—equally robust and ambitious, which will be rolled out in stages.

Our Focus for the Future

Lottery.com Expansion
Our primary objective is to have Lottery.com fully operational in the U.S. and expand the Lottery.com brand globally. As we move into 2025, we also plan to increase our international presence, introducing a new model that intertwines sports, lottery, and sweepstakes which we believe will revolutionize lottery play worldwide.
Sports.com Evolution
Earlier this year, we launched the new Sports.com platform and subsequently completed the acquisition of S&MI Ltd, the innovative technology company behind the Sportlocker brand, which we have rebranded and relaunched as Sports.com. Within the next six months, the platform will be available in the U.S. market as well as in several European countries and the Middle East. Sports.com will focus on delivering high-quality, live sports content directly to consumers, utilizing immersive 3D technology that is unmatched in the industry. An effective Form S-1 is one key component of our partnership strategy, which, when implemented, will cement Sports.com’s position as a major player in global media and entertainment. Additionally, in 2025, Sports.com will unveil a dedicated social media platform centered around the world of sports.

Financial Outlook
We have identified new funding partners to complement our existing partner, United Capital Investments London Limited. These new partners will play a key role in supporting the Company’s focus on developing its own proprietary technology and pursuing a “buy and build” strategy which leverages our common stock as the primary component of consideration for acquisitions.

Looking forward, we are excited about the next chapter for both Lottery.com and Sports.com. With a clear roadmap, Lottery.com is entering this next phase with confidence, backed by a highly experienced leadership team and committed funding and business partners.

Closing Thoughts
As we move ahead with renewed focus and determination, I would like to extend my deepest gratitude to our dedicated team, our forward-thinking Board, and our loyal shareholders for their continued support and trust. Together, we are not just building a business—we are shaping the future of digital gaming and sports media.

The transformational journey over the last two years has been nothing less than intense, but today, I am more confident than ever in the potential of Lottery.com and Sports.com to achieve greatness. I look forward to keeping you updated on our progress as we push forward into an exciting future.

Thank you for your continued commitment.

Sincerely,
Matthew McGahan
Chairman of the Board, Lottery.com

For more information, please visit www.lottery.com or contact our media relations team at [email protected].

Important Notice Regarding Forward-Looking Statements

This press release contains statements that constitute “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”). All statements, other than statements of present or historical fact included in this press release, regarding the company’s future financial performance, as well as the company’s strategy, future operations, revenue guidance, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Lottery.com disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Lottery.com cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Lottery.com. In addition, Lottery.com cautions you that the forward-looking statements contained in this press release are subject to the following factors: (i) the outcome of any legal proceedings that may be instituted against Lottery.com; (ii) Lottery.com’s ability to maintain effective internal controls over financial reporting, including the remediation of identified material weaknesses in internal control over financial reporting relating to segregation of duties with respect to, and access controls to, its financial record keeping system, and Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its effect directly on Lottery.com and the economy generally; (vii) risks relating to privacy and data protection laws, privacy or data breaches, or the loss of data; (viii) the possibility that Lottery.com may be adversely affected by other economic, business, and/or competitive factors; (ix) the ability of Lottery.com to achieve its strategic and growth objectives as stated or at all; and (x) those factors discussed in the proxy statement/prospectus filed by Lottery.com with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com with the SEC. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. This press release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that Lottery.com has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov.

Nasdaq:LTRY

Lottery.com Inc. Outlines Future Growth Plans Following Registration Statement on Form S-1 Effectiveness

Published

1 month ago

October 17, 2024

GlobeNewswire

lotterycom-inc.-outlines-future-growth-plans-following-registration-statement-on-form-s-1-effectiveness

FORT WORTH, Texas, Oct. 17, 2024 (GLOBE NEWSWIRE) — Lottery.com Inc. (NASDAQ: LTRY; LTRYW) (“Lottery.com” or the “Company”), a leading technology company in digital lottery and sports entertainment, is pleased to announce that the U.S. Securities and Exchange Commission (“SEC”) has declared the Company’s Form S-1 Registration Statement effective on October 16, 2024 (“Registration Statement”) (File Number: 333-281925). The Company’s turnaround efforts which began in late 2022, were designed to address numerous operational and financial challenges, which included regulatory inquiries; regaining full compliance with Nasdaq listing and SEC reporting requirements; staff restructuring; as well as overall capital shortages. With the successful registration of the Company’s registration statement, Lottery.com is now poised to enter a new phase of strategic growth and market expansion.

The Registration Statement, while effective, allows the covered selling securityholders to publicly resell the securities covered by the Registration Statement, subject to the satisfaction by selling securityholders of certain SEC requirements in connection with any such resale. The Registration Statement also provides for an offering by the Company of up to 50 million shares of Common Stock at $3.00 per share. Copies of the prospectus that is included in the Registration Statement may be obtained from Lottery.com by email at [email protected] or by visiting https://ir.lottery.com or at the SEC’s website www.sec.gov.

Key milestones and strategic initiatives include:

1. Lottery.com Expansion:

The Company is now poised to work to operationalize its US operations across multiple states anticipated by the end of 2025. International expansion is also planned, with the intent to introduce a new gaming model in 2025 aimed at revolutionizing the global lottery market.

2. Sports.com Growth:

Earlier this year, the Company launched the new Sports.com platform in partnership with S&MI Ltd, the innovative technology company behind the Sportlocker brand, which has been rebranded as the Sports.com site and app. The Company completed its acquisition of S&MI on September 1, 2024. The platform is designed to deliver immersive live sports content enhanced by cutting-edge 3D technology, with rollouts planned in the U.S., Europe, and the Middle East by mid-2025. The Registration Statement is one key component of the Company’s partnership strategy, which, when financing through sales of stock, will help to springboard Sports.com’s position to becoming a major player in global sports media and entertainment.

Financial Outlook

Lottery.com is focused on developing proprietary technology and pursuing a “buy and build” growth strategy with its common stock as the primary consideration for acquisitions.

With a clear roadmap, Lottery.com is working to enter this next phase with confidence, backed by a highly experienced leadership team and committed funding and business partners.

Matthew McGahan, Chairman of Lottery.com, commented:

“We are extremely proud to have completed this critical phase in the Company’s journey. With the SEC’s declaration of effectiveness of our Registration Statement, we are now fully focused on our next stage of growth, which includes ambitious plans for both Lottery.com and Sports.com. Our team has worked tirelessly to rebuild the foundation, and we are confident that our future plans will create significant value for shareholders and stakeholders alike.”

For more information, please visit www.lottery.com or contact our media relations team at [email protected].

Lottery.com Contact: [email protected]

Important Notice Regarding Forward-Looking Statements

This press release contains statements that constitute “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”). All statements, other than statements of present or historical fact included in this press release, regarding the company’s future financial performance, as well as the company’s strategy, future operations, revenue guidance, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Lottery.com disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Lottery.com cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Lottery.com. In addition, Lottery.com cautions you that the forward-looking statements contained in this press release are subject to the following factors: (i) the outcome of any legal proceedings that may be instituted against Lottery.com; (ii) Lottery.com’s ability to maintain effective internal controls over financial reporting, including the remediation of identified material weaknesses in internal control over financial reporting relating to segregation of duties with respect to, and access controls to, its financial record keeping system, and Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its effect directly on Lottery.com and the economy generally; (vii) risks relating to privacy and data protection laws, privacy or data breaches, or the loss of data; (viii) the possibility that Lottery.com may be adversely affected by other economic, business, and/or competitive factors; (ix) the ability of Lottery.com to achieve its strategic and growth objectives as stated or at all; and (x) those factors discussed in the proxy statement/prospectus filed by Lottery.com with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com with the SEC. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. This press release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that Lottery.com has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov.

This press release was published by a CLEAR® Verified individual.

Nasdaq:LTRY

Sports.com Accelerates Global Expansion Through Key Partnerships and Unveils an Expanded Sports Content Platform

Published

2 months ago

September 30, 2024

GlobeNewswire

sports.com-accelerates-global-expansion-through-key-partnerships-and-unveils-an-expanded-sports-content-platform

Coverage of Over 40 Sports with Live Event Content Across Multiple Regions

LONDON, Sept. 30, 2024 (GLOBE NEWSWIRE) — Sports.com, a global leader in digital sports entertainment and a key brand of Lottery.com Inc. (Nasdaq: LTRY, LTRYW), has made substantial progress in expanding its platform’s reach and content offerings achieving a major milestone in its global expansion. Sports.com now offers coverage of over 40 Sports and live event content across multiple regions strengthening its presence in the US, Europe, Africa, the Middle East, and Asia.

Sports.com’s commitment to providing users with some of the most compelling sports content has been further developed with the recent announcement of the acquisition of CMF Media – a dynamic programming and original content creation agency. The hybrid approach of global sports coverage and curated bespoke content creation delivers viewers an extensive selection of engaging pre-recorded and live event content.

In addition, by securing partnerships with mobile operators, content platform providers, and industry leaders, the Company is well on its way to becoming a dominant player in the global sports media landscape, delivering localized sports content services directly to consumers’ mobile devices and providing a seamless and engaging sports entertainment experience globally.

Sports.com’s platform now boasts a comprehensive sports content library, covering a broad spectrum of sports events across football, motorsports, basketball, rugby, cricket, golf, tennis, and more. Here is a detailed look at the breadth of sports content now available on Sports.com:

Football (Soccer)

Europe

English Premier League (Pre-match, Post-match, Stats & News)
Bundesliga (News & Highlights)
Portuguese League (News & Highlights)
Dutch Eredivisie (News & Highlights)
Spanish La Liga (Pre-match, Post-match, Stats & News)
French Ligue 1 (Pre-match, Post-match, Stats & News)
DFB Pokal (News & Highlights)
FA Cup (Selected News & Highlights)
Carabao Cup (Selected News & Highlights)
UEFA Champions League (Pre-match, Post-match, Stats & News)
UEFA Women’s Champion League (Pre-match, Post-match, Stats & News)
UEFA Europa League (Pre-match, Post-match, Stats & News)

LATAM, North America & Australasia

Argentinian League (News & Highlights)
Brazilian League (News & Highlights)
Copa Libertadores (Pre-match, Post-match, Stats & News)
MLS (Pre-match, Post-match, Stats & News)
Australian A League (News & Highlights)
National Women’s Soccer League (News & Highlights)

Africa, Middle East & Asia

Saudi Pro League (News & Highlights)
CAF World Cup Qualifiers (Highlights)
CAF Champions League (Highlights)
Qatar Star League (Highlights)
UAE Pro League (News & Highlights)
Japanese J.League (Highlights)
AFC Champions League (News & Highlights)
AFC Asian Cup (Highlights)
Asian World Cup Qualifiers (News & Highlights)

Motorsports

Formula 1 | (Pre-match, Post-match, Stats & News)
Formula 1 Testing | (Pre-match, Post-match, Stats & News)
MotoGP | (News & Highlights)
MXGP | (News & Highlights)
Extreme E | (News & Highlights)
Indy Car | (News & Highlights)
24 Hours of Le Mans | (News & Highlights)
Dakar Rally | (News & Highlights)
FIA World Rally Championship | (News & Highlights)
FIA Formula E | (News & Highlights)
FIA World Endurance Championship | (News & Highlights)
GT World Challenge Europe | (News & Highlights)
FIM Superbike World Championship | (News & Highlights)

Basketball, Baseball & (American) Football

NBA (News & Highlights)
MLB (News & Highlights)
MLB World Tour (News & Highlights)
NFL (Pre-game, Post-game, Stats & News)
Super Bowl (Pre-game, Post-game, Stats & News)

Ice-Hockey, Golf & Tennis

NHL (News & Highlights)
The Masters (Pre-match, Post-match, Stats & News)
US PGA Championship (Highlights)
Men’s US Open (Pre-match, Post-match, Stats & News)
The Open (Pre-match, Post-match, Stats & News)
Women’s US Open (Highlights)
Australian Open (News & Highlights)
French Open (News & Highlights)
Wimbledon (News & Highlights)
US Open (News & Highlights)

Cycling, Rugby, Cricket & Winter Sports

Tour de France (News & Highlights)
La Vuelta (News & Highlights)
Giro d’Italia (News & Highlights)
World Cup Rugby (News & Highlights)
Six Nations (Pre-match, Post-match, Stats & News)
ICC Men’s Cricket World Cup (News & Highlights)
ICC Women’s T20 World Cup (News & Highlights)
FIS Freestyle Ski World Cup (News & Highlights)
FIS Snowboarding World Cup (News & Highlights)

Matthew McGahan, Chairman and CEO of Sports.com, commented:
“Our rapid growth and extensive geographic reach are a direct result of our strategic partnerships and relentless pursuit of providing exceptional fan experiences. We’re focused on building a platform that delivers premium sports content to every corner of the world, making us the go-to destination for fans who want to engage with their favorite sports like never before.”

Tim Scoffham, Director of Sports.com Media, added:
“We are thrilled to offer a comprehensive and diverse catalogue of sports content, which now includes some of the world’s most sought-after events and leagues. From live match coverage to exclusive insights, we are committed to delivering the very best of sports to our users wherever they are.”

“In the coming months, Sports.com plans to further expand its live event offerings and introduce new content partnerships to enhance our platform’s value and reach. With a focus on continued innovation and fan engagement, we are aiming to set new standards in sports entertainment and redefine how fans around the world experience their favorite sports.”

For more information, visit www.sports.com or contact [email protected].

About Sports.com

Sports.com is fast becoming the premier destination for sports entertainment, offering an unparalleled array of interactive and engaging sports content. For more information, visit www.sports.com.

About Lottery.com:
Lottery.com is a technology company that transforms how players engage with lotteries and sports entertainment through its digital platforms. As the parent company of Sports.com, Lottery.com aims to create a global hub for sports content, delivering innovative programming and immersive experiences to fans around the world.

Important Notice Regarding Forward-Looking Statements

This press release was published by a CLEAR® Verified individual.

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