Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 23

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 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 March 31, 2025 and December 31, 2024, the balance of the notes was $2,336,081. Accrued interest on these notes was $341,984 on
March 31, 2025 and $350,434 on December 31, 2024, respectively.

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 awards, the number of shares issuable upon the
exercise of the Company’s outstanding warrants and the number of shares issuable under the Company’s equity incentive plans
and certain existing agreements, as well as the exercise, grant and acquisition prices of such equity awards and warrants, as applicable.
The Reverse Stock Split was approved by the Company’s stockholders at the Company’s 2023 Annual Meeting of Stockholders on
August 7, 2023 and was subsequently approved by the Board of Directors on August 7, 2023.

An
adjustment was made to the Company’s warrants based on the 1-for-20 split ratio. The adjustment was made automatically. The number
of shares of common stock issued subject to stock options, warrants, or convertible securities was automatically decreased by the split
ratio and the exercise price or conversion ratio will automatically be proportionately increased by the same split ratio.

The
effects of the Reverse Stock Split were reflected in the Quarterly Report on Form 10-Q for the period ended September 30, 202