Lottery.com Inc. reported a significant decline in financial performance for the third quarter of 2024, with revenues of $200,655, down 30% from $285,523 in the same period last year. For the nine months ending September 30, 2024, total revenue was $716,972, a decrease of 54% compared to $1,561,096 for the same period in 2023. The company recorded a net loss of $8,046,754 for the quarter, compared to a loss of $3,400,617 in the prior year, and a cumulative net loss of $19,772,292 for the nine months, up from $10,870,658 in 2023. The increase in losses is attributed to higher operating expenses, which rose to $3,746,442 for the quarter, compared to $3,367,440 in the previous year.
The company has undergone significant operational changes, including the acquisition of S&MI Ltd. on September 30, 2024, which is expected to enhance its multimedia capabilities. This acquisition follows a period of operational cessation that began in July 2022, when Lottery.com furloughed most of its employees due to insufficient financial resources. The company has since resumed limited ticket sales operations and is focused on restarting its core business activities. As of September 30, 2024, Lottery.com had a total of 10,123,682 shares outstanding, a substantial increase from 2,877,045 shares at the end of 2023, reflecting efforts to raise capital.
Key operational metrics indicate a challenging environment for Lottery.com. The company reported an accumulated deficit of approximately $254.9 million and working capital of negative $10.2 million as of September 30, 2024. The company’s cash reserves have dwindled to $60,466, down from $359,826 at the end of 2023. Additionally, the company has faced impairments of goodwill and intangible assets, totaling $4.3 million for the quarter, which has further impacted its financial standing.
Looking ahead, Lottery.com faces substantial uncertainty regarding its ability to continue as a going concern. The company has indicated that it requires additional capital to support its operations and plans for recommencement. Management's strategy includes financing activities such as private placements and debt issuances, but there is no assurance that these efforts will be successful. The company anticipates continued operating losses in the near term, raising concerns about its long-term viability in the competitive online lottery market.
About Lottery.com Inc.
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