Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 10

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1
Chunk 10
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 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 1:20 reverse split that occurred on August 9, 2023. In the event the Company fails to repay the amounts
borrowed when due or Woodford fails to convert the amount owed into shares, the exercise price of the warrants may be offset by amounts
owed to Woodford, and in such case, the exercise price of the warrants will be subject to a further 25% discount (i. e., will equal $4.20
per share).

In connection with our entry
into the Woodford Loan Agreement, the Company also entered into a Loan Agreement Deed, Debenture Deed and Securitization, with Woodford
(the “ Security Agreement”), which provides Woodford with a first floating charge security interest over all present and future
assets of the Company in order to secure the repayment of amounts owed under the Woodford Loan Agreement.

On June 12, 2023, the Company
entered into an amendment of the Woodford Loan Agreement with Woodford (the “ Woodford Loan Agreement Amendment”), which provides
that Woodford shall henceforth be able to convert, in whole or in part, the outstanding balance of its loan into the conversion shares
at a conversion price that represents a further 25% discount to the original conversion price of 20%. The validity and application of
the Woodford Loan Agreement Amendment is disputed by the Company.

Despite
requests from the Company, Woodford has repeatedly failed: to substantiate the amounts it claims were borrowed by the Company or claimed
to have been advanced by Woodford to the Company; failed to indicate if it would accept accelerated payment of Company-verified amounts;
failed to provide an anti-money laundering acceptable bank account to which payment could be made by the Company, to explain its failure
to respond to requests for other funding to be accepted in the context of the Woodford Loan Agreement; failed to respond to requests for
funding under the accordion facility of the Woodford Loan Agreement; and failed