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

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 extend the maturity of the notes to December 31, 2021. The Company cannot prepay the loan without consent from the noteholders.
As of December 31, 2021, there were no Qualified Financing events, that trigger conversion, this included the TDAC combination. As of
December 31, 2022, the remaining outstanding balance of $771,500 which relates to notes that are no longer convertible was reclassified
to Notes Payable as per the agreement. As of both March 31, 2025 and December 31, 2024, the balance due on these notes was $771,500.
Accrued interest on the Series A notes payable was $318,909 on March 31, 2025 and on December 31, 2024.

Series
B Notes

From
November 2018 to December 2020, the Company entered into multiple Convertible Promissory Note agreements with unaffiliated investors
for an aggregate amount of $8,802,828. The notes bear interest at 8% per year, are unsecured, and were due and payable on dates ranging
from December 2020 to December 2021. For those notes maturing on or before December 31, 2020, the parties entered into amendments in
February 2021 to extend the maturity of the notes to December 21, 2021. The Company cannot prepay the loans without consent from the
noteholders.

During
the year ended December 31, 2021, the Company entered into multiple Convertible Promissory Note agreements with unaffiliated investors
for an aggregate amount of $38,893,733. The notes bear interest at 8% per year, are unsecured, and are due and payable on dates ranging
from December 2021 to December 2022. The Company cannot prepay these loans without consent from the noteholders. As of December 31, 2021,
the Series B Convertible Notes had a balance of $0.

During
the year ended December 31, 2021, the Company entered into amendments with six of the Series B promissory noteholders to increase the
principal value of the notes. The additional principal associated with the amendments totaled $3,552,114. The amendments were accounted
for as a debt extinguishment, whereby the old debt was derecognized and the new debt was recorded at fair value. The Company recorded
loss on