Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 135

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 135
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, the parties entered into amendments in
February 2021 to extend the maturity of the notes to December 21, 2021. The Company cannot 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 cannot 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 mapped 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 20:1 reverse stock split that took place on August 9, 2023. As of December 31, 2023, the remaining notes comprising
the outstanding balance of $185,095 are no longer convertible and have been reclassified to notes payable. See Note 11. Accrued interest
on this note payable as of December 31, 2023 and 2022 was $79,647 and $64,799, respectively.

  F-21  

PPP
Loan

On
May 1, 2020, the Company entered into a Promissory Note with Cross River Bank, which provided for a loan in the aggregate amount of $493,225,
pursuant to the Paycheck Protection Program, (“ PPP”). The PPP, established under Division A, Title I of the Coronavirus Aid,
Relief and Economic Security Act (“ CARES Act”) enacted on March 27