The US Securities and Exchange Commission (SEC) said Lottery.com is yet to submit the final reviews of its financial statements for the period ended 30 June, and therefore has been unable to file its quarterly report via form 10-Q for the period.
While the SEC said the platform is working towards the report, the failure to complete the submission in time breaches Nasdaq Listing Rule 5250(c)(1).
Nasdaq rules state a company that does not meet the listing standards set forth in the Rule 5000 Series are subject to delisting from, or denial of initial listing, on the Nasdaq Stock Market.
On 17 August, Nasdaq issued a notice Lottery.com about the issue, stating standard Nasdaq Listing Rules normally permit a company to submit a plan to regain compliance within 60 calendar days of the notice. However, Nasdaq said that this deadline will be shortened to 31 August.
Lottery.com can regain compliance any time prior to this deadline by completing Form 10-Q. If this is not possible, the business can submit a plan to regain compliance, after which Nasdaq may grant an extension of 180 calendar days from the Form 10-Q due date, or 13 February next year, to comply with Nasdaq’s rules.
The SEC noted that while Lottery.com was not able to provide any assurances as to timing, the business said it does plan to file form 10-Q “as soon as practicably possible” to regain compliance.
The warning comes as a further blow to Lottery.com, which has suffered a series of setbacks in recent months.
In July, it was revealed that Lottery.com owed $425,000 in outstanding payroll obligations, just days after Lawrence (Tony) DiMatteo resigned from his role as chief executive of the business.
DiMatteo’s exit followed that of chief revenue officer Matthew Clemenson, who resigned a week earlier.
This came as Lottery.com revealed it “overstated” its cash holdings by $30m, soon after sacking president and CFO Ryan Dickinson after discovering questions about its compliance and accounting practices.
The broker said it initiated a review after discovering “instances of non-compliance with state and federal laws concerning the state in which tickets are procured”.
Original article: https://igamingbusiness.com/strategy/management/lottery-com-faces-nasdaq-delisting-over-late-filing/
