Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 22

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 extinguishment of $71,812 as a result of the amendment which was mapped in “ Other expenses” on the consolidated statements
of operations and comprehensive loss.

As
of October 29, 2021, all except $185,095 of the series B convertible notes were converted into 488,226 shares of Lottery. com common stock
[after accounting for the 20:1 reverse stock split that took place on August 9, 2023]. As of December 31, 2023, the remaining notes comprising
the outstanding balance of $185,095 were no longer convertible and were reclassified to notes payable. See Note 9

  F-19  

Short
term loans

On
June 29, 2020, the Company entered into a Promissory Note with the U. S. Small Business Administration (“ SBA”) for $150,000.
The loan has a thirty-year term and bears interest at a rate of 3.75% per annum. Monthly principal and interest payments are deferred
for twelve months after the date of disbursement. The loan may be prepaid at any time prior to maturity with no prepayment penalties.
The Promissory Note contains events of default and other provisions customary for a loan of this type. As of March 31, 2025 and December
31, 2024, the balance of the loan was $150,000. As of March 31, 2025 and December 31, 2024, the accrued interest on this note was $7,125
and $6,756 respectively.

In
August 2020, the Company entered into three separate note payable agreements with three individuals for an aggregate amount of $37,199.
The notes bear interest at a variable rate, are unsecured, and the parties have verbally agreed the notes will be due upon a qualifying
financing event. As of March 31, 2025 and December 31, 2024, the balance of the loans totaled $13,000, respectively.

Notes
payable

On
August 28, 2018, in connection with the purchase of the entire membership interest of TinBu, the Company entered into several notes payable
for $12,674,635 with the sellers of the TinBu and a broker involved in the transaction. The notes had an interest rate of 0%, and original
maturity date of January 25, 2022. The notes payable were modified during 2021 to extend