Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 125

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 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 a Promissory Note with the U.S. Small Business Administration (“SBA”) for $150,000.
The loan has a 30
thirty-year term and bears interest at a rate of 3.75% per
annum. Monthly principal and interest payments were 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 both September 30, 2025 and December 31, 2024, the balance of the loan was $150,000. As of September 30,
2025, the accrued interest on this note was $7,877.

In
August 2020, the Company entered into three separate note payable agreements with three individuals for an aggregate amount of $37,199