Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 97

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 97
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Related to Our Loan Agreements and Loan Agreement Warrants

United
Capital Investments London Limited, (“ UCIL”) may not loan us the amounts they agreed to under their amended and restated
loan agreements, and Univest Securities, LLC (“ Univest” or our “ Placement Agent”) may not be successful in whole
or in part in placing our Offering. If UCIL fails to provide us with funding, and the Placement Agent is less than fully successful,
we may be forced to curtail or even abandon our plan to recommence our operations and we may need to permanently cease our operations.

As
previously noted, we need to raise capital to, among other things, support and restart our operations, re-hire employees and pay our
expenses. The amended and restated loan agreements with Woodford and UCIL are potential sources of this needed additional capital that
is presently available to us. Univest funding was available on Dec 31 also.

Pursuant to the Woodford Amended
and Restated Loan Agreement, Woodford agreed to fund up to $52.5 million, subject to certain conditions and requirements, of which, per
our books and records, $798,351 was received by us through December 31, 2024.

As
reported on form 8-K on August 1, 2023, the Company reported that it had not received the requisite funding on a timely basis that it
expected from Woodford, despite making several requests to Woodford for said funding under the Woodford Amended and Restated Loan Agreement.
Moreover, the Board of Directors determined that it was in the best interest of the Company and its stockholders to enter into a new
loan agreement with UCIL, as an alternative lender to Woodford, upon receiving an event of default notice on July 21, 2023 (the “ Default
Notice”) and an event of default and crystallization notice on July 25, 2023 (the “ Crystallization Notice”) from Woodford
under the Woodford Amended and Restated Loan Agreement. On July 24, 2023, the Company responded to the Default Notice disputing that
an event of default had occurred. Further, on July 27, 2023, the Company replied to the Crystallization Notice denying that an event
of default occurred or continued, and further asserted that Woodford’s attempt for crystallization was inappropriate and unlawful
under its loan agreement. The validity and application of the Woodford