Company: LTRYW
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001641172-25-005663
Chunk: 101

Company: Lottery.com Inc.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 101
---
 convert the amount owed into shares of common stock, the exercise price of the warrants may be offset by amounts owed, and in such case, the exercise price of the warrants will be subject to a further discount.

If sequential conversions of amounts owed under either loan agreement or warrants are exercised, and sales of such resulting shares of common stock take place, the price of our common stock may decline, and as a result, the lender will be entitled to receive an increasing number of shares of common stock, which shares could then be sold in the market, triggering further price declines and conversions or exercises for even larger numbers of shares, to the detriment of our investors. The shares of common stock issued may, under certain conditions, be sold without restriction pursuant to Rule 144. As a result, the sale of these shares may adversely affect the market price, if any, of our common stock.

Additionally, the issuance of common stock upon conversion of the amounts owed under either loan agreement or the exercise of warrants will result in immediate and substantial dilution to the interests of other stockholders.

On June 12, 2023, the Company entered into an amendment of its Loan Agreement with Woodford (the “Loan Agreement Amendment”). The Loan Agreement Amendment 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.

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 Report
per our books and records, we owe approximately: $798,351 under the Amended and Restated Woodford Loan Agreement; $697,642 under
the UCIL Amendment; and $1,210,000 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