Company: LTRYW
Filing Date: 2025-05-07
Form Type: S-1/A
Source: 0001641172-25-009053
Chunk: 67

Company: Lottery.com Inc.
Filing Date: 2025-05-07
Form: S-1/A
Chunk 67
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3. Legal Proceedings for additional information.

Failure to perform under agreements regarding our Platform or our Data Services, affiliate agreements, or other contracts that we are party to may result in litigation, substantial monetary liquidated damages and contract termination, which would materially and adversely affect our business, financial condition and results of operations.

Our business may
subject us to contractual penalties and risks of litigation, including due to potential allegations that we have not fully performed
under contracts. Agreements with lottery authorities under which lottery tickets are sold as a retail vendor typically permit a lottery
authority to terminate the contract at any time for material failure to perform, other specified reasons and, in many cases, for no reason
at all. These contracts also frequently contain exacting implementation schedules and performance requirements and the failure to meet
these schedules and requirements may result in monetary liquidated damages, as well as possible contract termination. Additionally, we
are party to agreements that may include monetary liquidated damages provisions in the event of our material default thereunder. 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 (the “Complaint”)
against J. Streicher Financial, LLC (“Streicher”) in the Court of Chancery of the State of Delaware (the “Chancery Court”). In its Complaint, the Company alleged that Streicher breached a contract entered into by the parties on March 9, 2022,
and demanded that Streicher return $16,500,000 it owes to the Company. On September 26, 2022, the Chancery Court entered an order in
favor of the Company, Granting with Modifications Company’s Motion for Partial Summary Judgmentin the amount of $16,500,000
(the “Judgment”). On October 27, 2022, the Chancery Court further awarded the Company $397,036.94 in attorney’s
fees (the “Fee Order”). On November 15, 2022, the Company initiated efforts against Streicher to seek collections
on the Judgment and Fee Order. The Company subsequently engaged a collection firm to pursue Streicher as a judgment debtor on behalf
of Company. Since being engaged, the collection firm