Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 86

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 1A
Chunk 86
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 Material amounts of liquidated damages could be imposed on us in the future, which could, if imposed, have a material adverse
effect on our results of operations, business or financial condition.

We
may not recover amounts owed to us from J. Streicher Financial, LLC.

On
July 29, 2022, the Company filed an original Verified Complaint for Breach of Contract and Specific Performance Complaint Streicher Chancery
Court Granting with Modifications Company’s Motion for Partial Summary Judgment Judgment Fee Order

In
an effort to avoid post-judgment discovery, Streicher indicated a willingness to pay the judgment over time with interest and is attempting
to negotiate a settlement and forbearance agreement with the Company. Streicher’s original deadline to produce documents and respond
to the post-judgment discovery was January 16, 2023, and the Deposition was scheduled to take place on January 19, 2023. On January 20,
2023, faced with post-judgment discovery and depositions, Streicher remitted a partial payment towards the Judgment in the amount of
$75,000. On February 13, 2023, Streicher made another payment towards the Judgment in the amount of $50,000 and agreed to make another
payment in the amount of $75,000 on February 28, 2023. Streicher failed to remit the payment on February 28, 2023, and as a result, the
Company is proceeding with the post-judgment discovery and depositions, which was scheduled for March 16, 2023, however Streicher did
not appear at such hearing. The Company intends to fully collect on the Judgment and intends to pursue all legal and equitable means
to enforce the Judgment against Streicher until the Judgment is fully satisfied.

We
may never collect the full amount of the judgment, the costs of collecting the judgment, including additional legal fees may be material,
and Streicher may not have funds to pay us amounts due or make seek bankruptcy protection.

More
details are available in Item 3. Legal Proceedings

Public
Company Operating Risks

Our
projections are subject to significant risks, assumptions, estimates and uncertainties, including assumptions regarding future legislation
and changes in regulations, both inside and outside of the U. S. As a result, our projected revenues, market share, expenses and profitability
may differ materially from our expectations.

The
gaming and lottery industry is subject to rapid change, significant competition