Company: LTRYW
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001641172-25-005663
Chunk: 14

Company: Lottery.com Inc.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 14
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 temporary restraining order, preliminary injunction and expedited discovery against Lottery.com and its directors. The Court entered an order the next day denying the relief sought by Woodford. On February 14, 2024, Woodford filed a Notice of Voluntary Dismissal Without Prejudice, which stated that Woodford provides notice of dismissal of all claims without prejudice against Defendants Lotttery.com and its directors.

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

Amounts advanced under the Woodford
Loan Agreement are convertible, at Woodford’s option, into shares of the Company’s common stock, par value $0.001 per share
(the “common stock”), beginning 60 days after the first loan date at the rate of 80% of the lowest publicly available price
per share of common stock within 10 business days of the date of the Loan Agreement (which was equal to $5.60 per share after the 1:20
reverse split which occurred on August 9, 2023), subject to a 4.99% beneficial ownership limitation which can be waived on 60 day’s notice
and a separate limitation preventing Woodford from holding more than 19.99% of the issued and outstanding common stock of the Company,
without the Company obtaining shareholder approval for such issuance above this amount.

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

The Woodford Loan Agreement includes
confidentiality obligations, representations, warranties, covenants, and events of default, all of which are customary for a transaction
of this size and nature.

The Company also agreed to grant
Woodford common stock purchase warrants (the “Woodford Warrants”) in an amount equal to 15% of the Company’s 50,925,271
then issued and outstanding shares of common stock (the quantity of stock then issued and outstanding prior to the 1:20 reverse stock
split of August 9, 2023). Each Woodford Warrant has an exercise price equal to the average of the closing price of the Company’s
common stock for each of the ten days prior to the first amount being debited from the bank account of Woodford, which equates to an exercise
price of $5.60 per share after the 1: