Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 102

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 102
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).
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
may have to sell significant assets or have a portion of our assets foreclosed upon which could have a material adverse effect on our
business, financial condition and results of operations and could cause any investment in the Company to decline in value or become worthless.

General
Risk Factors

Our
insurance coverage is not adequate to cover all possible losses that we could suffer, and our insurance costs may increase.

We
currently do not have effective director and officer liability insurance and may not have the financial resources or otherwise
be able to obtain director and officer liability insurance at reasonable cost or terms in the future. In the event of a substantial loss,
the insurance coverage we carry may not be sufficient to pay the full market value or replacement cost of our lost investment or could
result in certain losses being totally uninsured. Market forces beyond our control may limit the scope of the insurance coverage we can
obtain in the future or our ability to obtain coverage at reasonable rates. Certain catastrophic losses may be uninsurable or too expensive
to justify obtaining insurance. As a result, if we suffer such a catastrophic loss, we may not be successful in obtaining future insurance
without increases in cost or decreases in coverage levels.