Company: LTRYW
Filing Date: 2025-04-21
Form Type: 10-K
Source: 0001641172-25-005487
Chunk: 136

Company: Lottery.com Inc.
Filing Date: 2025-04-21
Form: 10-K
Item: Item 8
Chunk 136
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, 2020, provided for loans to qualifying businesses for
amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest were forgivable
after eight weeks as long as the borrower utilized the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities
(“ Qualified Expenses”), and maintained its payroll levels. On August 24, 2021, the PPP loan and accrued interest was forgiven
by the U. S. Small Business Administration (“ SBA”) in full. The Company recorded the full amount related to the forgiveness
of the PPP loan as a gain on extinguishment of debt during the third quarter of fiscal year 2021.

Short
term loans

On
June 29, 2020, the Company entered into a Promissory Note with the U. S. Small Business Administration (“ SBA”) for $150,000.
The loan has a thirty-year 30

In
August 2020, the Company entered into three separate note payable agreements with three individuals for an aggregate amount of $37,199.
The notes bear interest at a variable rate, are unsecured, and the parties have verbally agreed the notes will be due upon a qualifying
financing event. As of December 30, 2024 and 2023, the balance of the loans totaled $13,000, respectively.

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 December 30, 2024 and December 31, 2023, the balance of the notes was $2,601,370. Accrued interest on these notes was $350,434
on December 31, 2024 and $242,831 on December 31, 2023, respectively.

Note
10. Stockholders