Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 39

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 2
Chunk 39
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 Global Market,
we may not be able to list our common stock and/or warrants on another national securities exchange or obtain quotation on an over-the
counter quotation system.

   3  

AutoLotto
$30,000,000 Business Loan

On
January 4, 2022, AutoLotto entered into a Business Loan Agreement (the “ Business Loan”) with bank prov, pursuant to which
the Company borrowed $30,000,000 from bank prov, which was evidenced by a $30,000,000 Promissory Note. The Promissory Note accrued interest
at the rate of 2.750% per annum (7.750% upon the occurrence of an event of default) and had a maturity date of January 4, 2024. Monthly
interest payments were due under the Promissory Note beginning February 4, 2022. The Promissory Note could be repaid at any time without
penalty. The Promissory Note included customary events of default for a debt obligation of the size of the Promissory Note. The Business
Loan included representations and warranties of AutoLotto and covenants (both positive and negative) which were customary for a transaction
of this nature and size, including rights to set off. Upon the occurrence of an event of default, Provident could declare the entire
amount owed immediately due and payable. We were required to pay a 1% commitment fee at the time of our entry into the Business Loan,
and another 1% annual loan fee would have been due on the first anniversary thereof.

In
accordance with the terms of the Business Loan, upon entering into the agreement, $30,000,000 in a separate account with bank prov was
pledged as security for the amount outstanding under the loan (“ Collateral Security”). The $30,000,000 Collateral Security
became restricted and remained restricted until October 12, 2022, when AutoLotto defaulted on its obligations under the Business Loan
and bank prov foreclosed on the $30,000,000 of Collateral Security. The Collateral Security, which was in the form of restricted cash,
was presented as a contingent liability on the Company’s balance sheet from March 31, 2022 until the obligation was satisfied in
October of 2022. See our consolidated financial statements for additional information.

Loan Agreement
with Woodford Eurasia

On
December 7, 2022, the Company entered into a