Company: LTRYW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024882
Chunk: 78

Company: Lottery.com Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 78
---
olders executed amendments in February 2021 to extend the maturity date to December 21, 2021.

From
November 2019 through October 28, 2021, we issued approximately $48.2 million in aggregate principal amount of Series B convertible promissory
notes. The notes bore interest at 8% per year, were unsecured, and were due and payable on dates ranging from December 2020 to December
2022. For those promissory notes that would have matured on or before December 31, 2020, the parties extended the maturity date to December
21, 2021 through amendments executed in February 2021. The amendments also allowed for automatic conversion to equity as a result of
the Business Combination. Nearly all of the aforementioned promissory notes automatically converted into shares of Common Stock or were
terminated pursuant to their terms, as applicable, in connection with the Closing. Those that remain outstanding do not have conversion
terms that were triggered by the Closing.

Immediately
prior to the Closing, approximately $60.0 million of convertible debt was converted into equity of AutoLotto.

As
of June 30, 2025, we had $1,925,242 of convertible debt outstanding. A portion of this debt has matured and is theoretically in default.

See
“-Recent Developments- Loan Agreement with Woodford” and “Loan Agreement with United Capital Investments
London Limited” above for additional information.

Cash
Flows

Net
cash used in operating activities was $1.4 million for the three months ended June 30, 2025, compared to net cash used in operating activities
of $1.4 million for the three months ended June 30, 2024.

Net
cash used in investing activities during the three months ended June 30, 2025 was $0, which was the same as for the prior year.

Net
cash provided by financing activities was $965,000 for the three months ended June 30, 2025, compared to net cash provided of
$965,000 for the three months ended June 30, 2024, which was $320 thousand lower year over year.

15

Emerging
Growth Company Accounting Election

Section
102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards
until private companies are required to comply with the new or revised financial accounting standards. The JOBS