Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 99

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 99
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 and cure rights. As reported on form 8-K filed with the SEC on February 22, 2024, on February 16, 2024, the Company and UCIL entered into an “ Amendment
and Restatement Agreement No. 2” to the UCIL Loan Agreement to increase the amount of the UCIL Credit Facility from $49,000,0000
to $149,000,000 (the “ UCIL Amendment”).

The
Univest placement agent agreement pertains to the Company’s offering (“ Offering”) of units (“ Units”) up
to $5,000,000 to be offered to their investors; each Unit consisting of a convertible promissory note (each, a “ Convertible Note”
or collectively, the “ Convertible Notes”), and a common stock purchase warrant (each, a “ Warrant”, or collectively,
the “ Warrants”) to purchase shares of common stock of the Company, par value $0.001 per share (the “ Common Stock”)
which include specific registration rights (“ Registration Rights”), for their investors.

If
neither Woodford nor UCIL, nor any other potential lenders or investors (including those placed through Univest) are able or willing
over time to advance us amounts owed under either of their amended and restated loan agreements or we are unable to raise additional
funds from other third parties, we may not be able to raise enough capital to recommence our operations and run our business. Consequently,
we may be forced to curtail or even abandon our plan to recommence our operations, and we may need to permanently cease our operations.

  54  

We
are subject to certain covenants while amounts are outstanding under the loan agreements which may restrict our ability to undertake
future activities, including issuing additional shares of common stock.

Each
loan agreement includes confidentiality obligations, representations, warranties, covenants, and events of default, which are customary
for transactions of this size and nature. For example, included in the Woodford Loan Agreement are covenants prohibiting us from (a)
making any loan in excess of $1 million or obtaining any loan in amount exceeding $1 million without the consent of Woodford, which may
not be unreasonably withheld; (b) selling more than $1 million in assets; (c) maintaining less than enough assets to perform our obligations
under the Loan Agreement; (d) encumbering any assets, except in the normal course of business, and not in an amount