Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 98

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 98
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 Loan Agreement Amendment is disputed by the Company.

Despite
requests from the Company, Woodford has repeatedly amongst other things: failed to prove the amounts 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 those verified amounts;
failed to provide an anti-money laundering acceptable account to which payment could be made by the Company and failed to explain 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 to respond to allegations of money laundering and
conspiracy to defraud the Company and others.

Given
the uncertainty of continued financing under the Woodford Loan Agreement, on July 26, 2023, the Company secured and formalized alternative
funding by entering into a Loan Agreement with UCIL which was further amended and restated on August 18, 2023. The UCIL agreement was
approved by the shareholders on or about November 17, 2023 and attached to this 10-K/A as an exhibit.

The
UCIL loan agreement provides for a credit facility (the “ Credit Facility”) consisting of (a) funding in the principal
amount of up to $1,000,000 to be paid in tranches over time and as requested by the Company (the “ Initial Loan”),
wherein in return for the Initial Loan the Company shall issue to UCIL a number of warrants (the “ Warrants”) to purchase
shares of the Company’s common stock (“common stock”) in an amount representing at least 4.5% but not exceeding
15% of the Company’s issued and outstanding common stock on the date of such issuance; and (b) an additional credit facility,
at the Company’s written request and at UCIL’s sole discretion for an amount up to a total of $49,000,000 in additional
financing (the “ Accordion”) in subsequent funding tranches. The interest rate on the Initial Loan and the Accordion is
10% per annum. The Credit Facility provides that UCIL may elect, in its sole discretion, to convert an amount of the Initial Loan
and the Accordion, together with accrued interest, into shares of common stock at a conversion price calculated in accordance with
the terms of the Loan Agreement. In addition, the Credit Facility includes certain customary representations, warranties and events
of default subject to customary notice