Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 216

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part II, Item 8
Chunk 216
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5 and December 31, 2024, the balance
of the loan was $150,000. As of June 30, 2025, the accrued interest on this note was $7,499.

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 would be due upon a qualifying
financing event. As of both June 30, 2025 and December 31, 2024, the balance of the loans totaled $13,000.

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 the maturity to June 30, 2022 and change the
interest rate to include simple interest of 4.1% per annum effective October 1, 2021. Each of the amendments were evaluated and determined
to be loan modifications and accounted for accordingly.

As
of both June 30, 2025 and December 31, 2024, the balance of the notes was $2,336,081.
Accrued interest on these notes was $362,910
on June 30, 2025.

Note
10. Stockholders’ Equity

Reverse
Split

On
August 9, 2023, the Company amended its Charter to implement, effective at 5:30 p.m., Eastern time, a 1-for-20 Reverse Stock Split. At
the effective time of the Reverse Stock Split, every 20 shares of common stock either issued and outstanding or held as treasury stock
were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share. Stockholders
who would have otherwise been entitled to fractional shares of common stock as a result of the Reverse Stock Split received a cash payment
in lieu of receiving fractional shares. In addition, as a result of the Reverse Stock Split, proportionate adjustments will be made to
the number of shares of common stock underlying the Company’s outstanding equity