Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 100

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 100
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 to exceed $1 million;
(e) amending or restating our governing documents; (f) declaring or paying any dividend; (g) issuing any shares of common stock which
negatively affects the lender and (h) repurchasing any shares of common stock. Such covenants in either loan agreement may restrict our
ability to raise capital, pay consultants, officers and directors, and may ultimately result in material adverse effects to the Company.
The result of that may be a decrease in the value of our securities or our need to seek bankruptcy protection. The validity and application
of the Woodford Loan Agreement Amendment is disputed by the Company.

Our
obligations under the loan agreements are secured by a first priority security interest in substantially all of our assets and if we
were to default, they could force us to curtail or abandon our business plans and operations.

Although,
the amounts borrowed pursuant to the terms of the Woodford Loan Agreement are secured by substantially all of the present and subsequently
acquired assets of the Company and its subsidiaries, the validity and application of the Woodford Loan Agreement Amendment is disputed
by the Company. Under the Agreement, Woodford as a creditor, in the event of the occurrence of a default might have been able to enforce
security interests over our assets or our subsidiaries which secure obligations, take control of such assets and operations, force
us to seek bankruptcy protection, or force us to curtail or abandon our current business plans and operations. If that were to happen,
any investment in the Company (including, but not limited to, any investment in our common stock) could become worthless. The validity
and application of the Woodford 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.

The
issuance and sale of common stock upon conversion of the amounts owed or upon exercise of the warrants issued to either Woodford or