Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 32

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 Financing events, that trigger conversion, this included the TDAC combination. As of both June 30, 2025, and December
31, 2024 the remaining outstanding balance of $771,500 relates to notes that are no longer convertible which have been reclassified to
Notes Payable as per the agreement. Accrued interest on the Series A notes payable was $318,909 on June 30, 2025.

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 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 488,226 shares of Lottery.com common stock
after accounting for the