The US Securities and Exchange Commission (SEC) has notified that Lottery.com has yet to submit its final reviews of financial statements for the period ending on June 30th. As a result, the company has been unable to file its quarterly report via Form 10-Q for that period. This failure to submit on time breaches the Nasdaq Listing Rule 5250(c)(1), which states that companies not meeting the listing standards are subject to delisting from or denial of initial listing on the Nasdaq Stock Market.
Nasdaq has issued a notice to Lottery.com regarding this issue. Under normal circumstances, companies are allowed to submit a plan to regain compliance within 60 days of receiving the notice. However, Nasdaq has shortened the deadline to August 31st. To regain compliance, Lottery.com must complete Form 10-Q before this deadline. If that is not possible, the company can submit a plan to regain compliance, and Nasdaq may grant an extension of 180 calendar days from the Form 10-Q due date (until February 13th of next year) to comply with Nasdaq’s rules.
While Lottery.com cannot provide a specific timeline, the company intends to file Form 10-Q as soon as practicably possible to regain compliance. This warning adds to the series of setbacks Lottery.com has faced in recent months. In July, it was revealed that the company owed $425,000 in outstanding payroll obligations. Shortly after, the chief executive, Lawrence (Tony) DiMatteo, resigned, and the chief revenue officer, Matthew Clemenson, resigned a week prior. Furthermore, Lottery.com disclosed an overstatement of its cash holdings by $30 million, leading to the dismissal of its president and CFO, Ryan Dickinson. The company initiated a review due to concerns about compliance and accounting practices, specifically regarding the procurement of tickets in certain states.
