Company: LTRYW
Filing Date: 2025-10-15
Form Type: 10-Q/A
Source: 0001493152-25-018121
Chunk: 33

Company: Lottery.com Inc.
Filing Date: 2025-10-15
Form: 10-Q/A
Chunk 33
---
31, 2021, there were no
Qualified Financing events, that trigger conversion, this included the TDAC combination. As of December 31, 2022, the remaining
outstanding balance of $771,500
which relates to notes that are no longer convertible was reclassified to Notes Payable as per the agreement. As of both March 31,
2025 and December 31, 2024, the balance due on these notes was $771,500. Accrued interest on the Series A notes payable was $318,909
on March 31, 2025 and on December 31, 2024.

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 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