Company: LTRYW
Filing Date: 2025-04-09
Form Type: 10-K/A
Source: 0001641172-25-003412
Chunk: 97

Company: Lottery.com Inc.
Filing Date: 2025-04-09
Form: 10-K/A
Chunk 97
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 of the Woodford Loan Agreement Amendment is disputed by the Company.

We currently owe a significant amount of money under our Loan Agreements which we may not be able to repay.

As of the date of this Amended Report per our books and records, we owe approximately: $798,351 under the Amended and Restated Woodford Loan Agreement; $697,642 under the Amended and Restated UCIL Loan Agreement; and $1,075,000 under the Univest Placement Agent Agreement. Currently, we do not have sufficient funds to repay such amounts. A high level of indebtedness increases the risk
that we may default on our debt obligations. If the amounts owed under any undisputed loan agreements are not
converted into common stock pursuant to the terms and conditions, we may not be able to pay the
principal or interest on the loan, and future working capital, borrowings or equity financing may not be available to pay or
refinance such debt. If we do not have sufficient funds and are otherwise unable to arrange financing or raise additional funds, we
may have to sell significant assets or have a portion of our assets foreclosed upon which could have a material adverse effect on
our business, financial condition and results of operations and could cause any investment in the Company to decline in value or
become worthless.

General Risk Factors

Our insurance coverage is not adequate to cover all possible losses that we could suffer, and our insurance costs may increase.

We currently do not have effective director and officer liability insurance and may not have the financial resources or otherwise be able to obtain director and officer liability insurance at reasonable cost or terms in the future. However, we have other insurance policies with coverage features and insured limits that we believe are customary in their breadth and scope. Nevertheless, in the event of a substantial loss, the insurance coverage we carry may not be sufficient to pay the full market value or replacement cost of our lost investment or could result in certain losses being totally uninsured. Market forces beyond our control may limit the scope of the insurance coverage we can obtain in the future or our ability to obtain coverage at reasonable rates. Certain catastrophic losses may be uninsurable or too expensive to justify obtaining insurance. As a result, if we suffer such a catastrophic loss, we may not be successful in obtaining future insurance without increases in cost or decreases in coverage levels.

Our cash and cash equivalents may be exposed to failure of our banking institutions.

Since we seek to minimize our exposure to third-party losses of our cash and cash equivalents, we hold our cash