## Lottery.com’s Nasdaq Listing in Jeopardy Due to Filing Delay
The online lottery sales platform, Lottery.com, faces potential removal from the Nasdaq stock exchange in the United States by the end of August. The company missed the deadline for submitting its most recent quarterly financial report.
The US Securities and Exchange Commission (SEC) stated that Lottery.com has not completed its financial statements for the period ending on June 30th. This prevents them from filing their quarterly report using Form 10-Q.
The SEC indicated that Lottery.com is actively working to finalize the report, but failing to meet the deadline violates Nasdaq Listing Rule 5250(c)(1).
Nasdaq regulations stipulate that companies failing to adhere to listing standards will be delisted from the stock market.
On August 17th, Nasdaq issued a notice to Lottery.com regarding the issue. Typically, companies have a 60-day grace period to rectify the problem after receiving the notification. However, Nasdaq reduced the deadline to August 31st.
Lottery.com can prevent delisting by completing Form 10-Q before the deadline.
Should the organization be unable to submit its quarterly report by the designated date, it can present a proposal to restore adherence to regulations. Nasdaq may grant a six-month extension, commencing from the due date of the report, which falls on February 13th of the following year, to align with Nasdaq’s regulations.
The Securities and Exchange Commission stated that while Lottery.com cannot provide a definitive timeframe, the organization has indicated its intention to file the report “as soon as feasible” to regain compliance.
This notification represents an additional setback for Lottery.com, which has encountered a succession of challenges in recent months.
In July, it was disclosed that Lottery.com owed a substantial sum in unpaid wages, just a few days after Lawrence (Tony) DiMatteo resigned from his position as the company’s chief executive officer.
DiMatteo’s departure followed the resignation of Matthew Klemensen, the company’s Chief Revenue Officer, who stepped down a week prior.
Previously, Lottery.com revealed that it had “exaggerated” its cash reserves by a significant amount, shortly after dismissing Ryan Dickinson, the company’s President and Chief Financial Officer, following the discovery of issues with its compliance and accounting procedures.
The brokerage firm stated that it initiated the review after identifying “instances of violations of state and federal laws, involving the jurisdictions where tickets are purchased.”
