Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 279

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 2
Chunk 279
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 the Board (Lisa Borders, Steven M. Cohen, Lawrence Anthony
DiMatteo and William Thompson, all of whom resigned from the Board in September 2022), and the appointment of two new independent directors.
Subsequent loans under the Woodford Loan Agreement also required the Company to comply with all listing requirements, unless waived by
Woodford. The Woodford Loan Agreement also allowed Woodford to nominate another director to the Board of Directors, in the event any
independent member of the Board of Directors resigned.

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

The
Woodford Loan Agreement included confidentiality obligations, representations, warranties, covenants, and events of default, which
are customary for a transaction of this size and nature. Included in the Loan Agreement are covenants prohibiting us from (a) making
any loan in excess of $1 million or obtaining any loan in an amount exceeding $1 million without the consent of Woodford, which
consent may not be unreasonably withheld; (b) selling more than $1 million in assets;
(c) maintaining less than enough assets to perform our obligations under the Loan
Agreement; (d) encumbering any assets, except in the normal course of business, and not in an amount to exceed $1 million; (e)
amending or restating our governing documents; (f) declaring or paying any dividend; (g) issuing any shares which negatively affects
Woodford; and (h) repurchasing any shares.

The
Company also agreed to grant warrants to purchase shares of common stock to Woodford (the “Woodford Warrants”) in an amount
equal to 15% of the Company’s then issued and outstanding shares of common stock. 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 $56.00 per share. 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.

In
connection with our entry into the Woodford Loan