Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 36

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 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 could not 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 could not 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 extinguishment of $71,812 as a result of the amendment which was reported 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 48,823
shares of Lottery.com common stock after accounting for the 1:20
reverse stock split that took place on August 9, 2023. December 31, 2021, the remaining notes comprising the outstanding
balance of $185,095 were no longer
convertible and were reclassified to notes payable See Note 9. Accrued interest on this note payable as of September 30, 2025
was $90,723.

     F-18 

Short
term loans

On
June 29, 2020, the Company entered into