Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 284

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 284
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 Agreement Amendment”).
The Woodford 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.

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 the matter has been referred to the Company’s legal counsel.

Information
regarding ongoing legal proceedings with Woodford can be found in the “Legal Proceedings” section of this form.

3

Loan
Agreement with United Capital Investments London Limited

The
Company entered into a credit facility (the “UCIL Credit Facility”), which is represented by a loan agreement, which was
initially entered into on July 26, 2023, and was amended and restated on August 8, 2023, and subsequently amended on August 18, 2023
and amended and restated on February 16, 2024, the “UCIL Loan Agreement”). The UCIL Loan Agreement is with United Capital
Investments London Limited (“UCIL”), an entity in which each of Matthew McGahan, the Company’s Chief Executive Officer
and Chair of the Company’s Board, and Barney Battles, a former member of the Board, have a direct or indirect interest. The decision
by the Company to enter into the UCIL Loan Agreement followed an acknowledgment by the Company that it had not received the requisite
funding on a timely basis that it expected from Woodford, despite the Company making several requests to Woodford for said funding under
the Woodford Loan Agreement. Moreover, the Board of Directors determined that it was in the best interest of the Company and its stockholders
to enter into the UCIL Loan Agreement with UCIL, as an alternative lender to Woodford