Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 215

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part II, Item 8
Chunk 215
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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 September 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 September 30, 2025 and December 31, 2024, the balance of the notes was $2,336,081.
Accrued interest on these notes was $386,527
on September 30, 2025.

As
of September 30, 2025, we had $2,199,266 of convertible debt outstanding. A portion of this debt has matured and is theoretically in
default.

Convertible
Note

On September 22, 2025, the Company entered into a convertible note with Generating Alpha Ltd. for $350,000. The note does not bear interest.
The Note is issued pursuant to certain Securities Purchase Agreement, Warrant Agreement and Registration Rights Agreement dated as of
September 22, 2025. An Original Issue Discount (“OID”) of twenty (20%) percent was charged by the lender and other fees of
$10,000 were incurred and expensed in September. The OID was recorded as a discount to the face amount of the note and will be amortized
until maturity. Because the amortization for eight days during the three months ending September 30, 2025, is immaterial, the Company
will begin recording amortization of the discount in the fourth quarter.

Note
10. Stockholders’ Equity

Reverse
Split

On
August 28, 2025, the Company amended its Charter to implement, effective at 5:30 p.m