Company: LTRYW
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001493152-25-024384
Chunk: 38

Company: Lottery.com Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 note with Generating Alpha Ltd. for $350,000. The note does not bear interest.
The Note is issued pursuant to certain Securities Purchase Agreement, Warrant Agreement and Registration Rights Agreement dated as of
September 22, 2025. An Original Issue Discount (“OID”) of twenty (20%) percent was charged by the lender and other fees of
$10,000 were incurred and expensed in September. The OID was recorded as a discount to the face amount of the note and will be amortized
until maturity. Because the amortization for eight days during the three months ending September 30, 2025, is immaterial, the Company
will begin recording amortization of the discount in the fourth quarter.

Note
10. Stockholders’ Equity

Reverse
Split

On
August 28, 2025, the Company amended its Charter to implement, effective at 5:30 p.m., Eastern time, a 1-for-10 Reverse Stock Split.
At the effective time of the Reverse Stock Split, every 10 shares of common stock either issued and outstanding or held as treasury stock
were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share. Stockholders
who would have otherwise been entitled to fractional shares of common stock as a result of the Reverse Stock Split received a cash payment
in lieu of receiving fractional shares. In addition, as a result of the Reverse Stock Split, proportionate adjustments will be made to
the number of shares of common stock underlying the Company’s outstanding equity awards, the number of shares issuable upon the
exercise of the Company’s outstanding warrants and the number of shares issuable under the Company’s equity incentive plans
and certain existing agreements, as well as the exercise, grant and acquisition prices of such equity awards and warrants, as applicable.
The Reverse Stock Split was approved by the Company’s stockholders at the Company’s 2024 Annual Meeting of Stockholders on
February 20, 2025 and was subsequently approved by the Board of Directors on August 13, 2025.

Previously
on August 9, 2023, the Company amended its Charter to implement, effective at 5:30 p.m., Eastern time, a 1-for-20 Reverse Stock Split.
At the effective time of the Reverse Stock Split, every 20 shares of common stock either issued and outstanding or held as treasury stock
were automatically combined into one issued and outstanding share of common stock, without any change in