Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 57

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 2
Chunk 57
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 through the issuance of convertible promissory notes.

From
August to October 2017, the Company entered into seven Convertible Promissory Note Agreements with unaffiliated investors for an aggregate
amount of $821,500. The notes bore interest at 10% per year, were unsecured, and were due and payable on June 30, 2019. The Company and
the noteholders 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.

  13  

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

As
of March 31, 2025, we had $2, 591,860

See
“- Recent Developments- Loan Agreement with Woodford “ Loan Agreement with United Capital Investments
London Limited”

Cash
Flows

Net
cash used in operating activities was $925,000 for the three months ended March 31, 2025, compared to net cash used in operating activities
of $1.1 million for the three months ended March 31, 2024.

Net
cash used in investing activities during the three months ended March 31, 2025 was $1,500,000, compared to $0 for the prior year. The
company acquired Spektrum during the three months ended March 31, 2025.

Net
cash provided by financing activities was $697,000 for the three months ended March 31 2025, compared to net cash provided of $700