Nasdaq:LTRY
Lottery.com Announces Strong First Quarter Results
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.”
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 | |||||||||||||
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
or
Jody Burfening/Harriet Fried
LHA Investor Relations
(212) 838-3777
Nasdaq:LTRY
Lottery.com Inc. Relaunches Sweepstakes Operations
AUSTIN, Texas, April 25, 2024 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company in the lottery and gaming sector, announces the restart of its sweepstakes operations in conjunction with the WinTogether Trust (“WinTogether”), a registered 501(c)3 charitable organization. The proceeds from the sweepstakes will benefit Street Child United. The sweepstakes had a soft launch on April 3, 2024, and is available at http://donateto.win, the successor to Lottery.com’s WinTogether.org platform.
Street Child United is a global organization dedicated to improving the lives of street-connected children. The organization focuses on four key pillars: Ensuring every child has birth registration which provides access to healthcare and education; protecting children against abuse, exploitation, and trafficking; securing access to education; and setting a foundation for gender equality.
Donors are incentivized to give by receiving entries to win an Apple Vision Pro mixed reality headset. More information and donation options can be found at https://donateto.win. The sweepstakes to support Street Child United will continue until 11:59PT on August 31, 2024. The winner will be announced on or around September 20, 2024.
Matthew McGahan, CEO of Lottery.com, commented:
“This is a significant milestone for Lottery.com. The Company, through its partnership with the WinTogether Trust, is resuming its commitment to supporting philanthropic initiatives that focus on responsible gaming along with local, regional, and global charitable initiatives. Street Child United is a wonderful organization. We believe their mission will resonate with the Sports.com’s growing global user base.”
Bart Myers, Director of the WinTogether Trust added:
“The WinTogether Trust board is excited for our organization to play a role in the resurgence of Lottery.com. Being able to leverage their powerful brands, Lottery.com and Sports.com, will allow us to exponentially expand the number of organizations we support and the financial impact our sweepstakes make for them.”
About Donate to Win and WinTogether
DonateTo.Win is a charitable sweepstakes platform operated by WinTogether, a non-profit centered around building the future of philanthropy. Donate To Win gamifies charitable giving to fundamentally change how causes engage with their donors and raise funds. Through their global platform, they offer charitable donation sweepstakes to incentivize donors to act by offering once in a lifetime experiences, large cash prizes, and luxury prizes. DonateTo.Win works with some of the largest nonprofits, media partners and corporate brands in the world to provide a new channel to raise awareness, raise funds, and reach new donors around the world. For more information, visit https://donateto.win.
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 and commercial partners 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, 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.
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. 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 Contact:
Nasdaq:LTRY
Lottery.com, Inc. Nominates Warren Macal to Its Board of Directors
AUSTIN, Texas, April 22, 2024 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company in the lottery and gaming sector, is pleased to announce the nomination of Warren Macal to its Board of Directors. Macal will be seated as a director at the Company’s next Board of Directors meeting following the successful completion of required background checks. Macal’s nomination follows the December 2023 $18 million investment commitment from Prosperity Investment Management (“PIM”), subject to due diligence. The investment commitment by PIM is aimed at accelerating Lottery.com’s strategic acquisitions and market development initiatives.
Warren Macal, currently the Managing Director at PIM and the head of its PIM Motorsport Investment Division, brings more than 15 years of extensive experience in wealth management and strategic financial planning. Specializing in the financial needs of high-net-worth individuals and professional athletes, particularly in the motorsports arena, Macal’s expertise will be invaluable as Lottery.com continues to expand its global reach and product offerings and develops its Sports.com brand, which aims to become the premier destination for sports entertainment, offering an unparalleled array of interactive and engaging sports content.
Matthew McGahan, CEO of Lottery.com, commented:
“Warren’s profound knowledge in wealth management and his strategic insight into the sports sector will provide a significant advantage to our board. His leadership at Prosperity Investment Management, particularly in maximizing sports-related opportunities, aligns perfectly with our vision for growth and innovation. This is particularly relevant as we roll out our Sports.com platform, which is designed to connect fans, athletes, and sports influencers in a unique digital ecosystem, making Sports.com the go-to destination for sports enthusiasts across the globe.”
“Warren’s nomination is part of a broader strategic synergy between Prosperity Investment Management and Lottery.com, which includes leveraging high-profile sports partnerships and expanding into new markets, particularly in the digital sports and gaming sectors.”
Warren Macal said:
“I am excited to accept the nomination to join the Board of Directors at Lottery.com and look forward to contributing to the Company’s vision. This partnership represents a unique opportunity to blend my skills in the worlds of investment and sports management, with digital gaming and content creation, delivering value for all stakeholders involved.”
Lottery.com Contact: [email protected]
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 and commercial partners 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, 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.
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. 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 Regains Full Nasdaq Compliance
AUSTIN, Texas, April 11, 2024 (GLOBE NEWSWIRE) — Lottery.com, Inc. (the “Company”) has received written notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company has maintained a minimum market value of publicly held shares (“MVPHS”) of $5,000,000 or greater for the last ten consecutive business days. Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5450(b)(1)(C) and the matter is now closed. Regaining full compliance with Nasdaq paves the way for future growth.
Lottery.com CEO, Mr. Matthew McGahan commented:
“Regaining full compliance with Nasdaq is a pivotal milestone for Lottery.com and its shareholders. This underscores the success of our decision to focus on good corporate governance, operational integrity, and financial transparency. Our status as a Nasdaq-listed entity is essential to our business framework. It fosters a democratic approach to decision-making, empowering a broad spectrum of stakeholders to actively shape the trajectory of innovative ventures and opportunities at both Lottery.com and Sports.com. We are here to serve the interests of all our shareholders and won’t be swayed by a small minority represented by discredited individuals with vested self-interests.”
“The current management team has worked diligently on the business turnaround in the face of many headwinds and the Company is now well positioned to push the boundaries in the gaming and sports sectors, taking advantage of revenue generating opportunities in order to maximize shareholder value. I would like to thank our shareholders for their ongoing trust and support in the management team. Additionally, I would like to personally express my appreciation to our entire team for their continued dedication and support.”
Lottery.com Contact: [email protected]
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 and commercial partners 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, 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.
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. 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.
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