On 28 November, Lottery.com acknowledged that it had been handed a notice from the Nasdaq stock market for being ‘out of compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires timely filing of all required periodic financial reports with the SEC.’
The operator said it has ‘not yet finalised its review of its financial statements or its assessment of the impact of the findings of the ongoing review of the Company’s internal accounting controls on its historical financial statements or for the financial statements for the quarters ended 30 June 2022, or 30 September 2022.
‘It is therefore unable to file its Quarterly Reports on Form 10-Q for the periods ended June 30 2022, or September 30 2022.’
Lottery.com has faced significant challenges in recent months; after firing its President and CFO in June, the share price crumbled – which was made worse when Chief Revenue Officer Matthew Clemenson resigned a month later.
The former’s departure was pre-empted by an internal investigation that revealed “instances of non-compliance with state and federal laws,” as well as “issues pertaining to the company’s internal accounting controls.”
Following that, its investors threatened to file a class action lawsuit against it over “false and misleading statements,” among other complaints.
In addition, because Lottery.com lacked sufficient resources to fund its operations for a 12-month period, there existed “substantial doubt about the company’s ability to continue as a going concern.”