Lottery.com has received notice from NASDAQ that its shares could be delisted by the end of August, should the firm again fail to submit its financial report for the second quarter.
The online lottery provider has been mired in money issues recently after overstating its available unrestricted cash balance by approximately $30m this year and, in the prior fiscal year, improperly recognising revenue in the same amount.
This led to the departure of Tony DiMatteo as CEO and caused Lottery.com to fall $425,000 behind on its payroll and furlough its employees last month.
Last week, meanwhile, it was revealed that Lottery.com had failed to file its quarterly report for the period ended June 30, 2022, by the prescribed date of August 15.
The future of the firm has now been plunged into further uncertainty after NASDAQ issued a notice over its shares, warning Lottery.com that it has until August 31 to become compliant and submit its Form 10-Q with the SEC for the second quarter of the year.
Usually, NASDAQ allows a company 60 calendar days to submit a plan to regain compliance, but that deadline has been shortened in the case of Lottery.com, pursuant to the staff’s discretionary authority set forth in NASDAQ Listing Rule 5101.
However, Lottery.com may submit a plan to regain compliance with the Listing Rule prior to August 31 and, following evidence of this plan, NASDAQ may grant, at its ‘sole discretion’, an extension of 180 calendar days from the Form 10-Q due date or February 13, 2023.
Lottery.com has reiterated last week’s stance that it is working as fast ‘as practically possible’ to file the Form 10-Q and regain NASDAQ compliance.
The company added that it has ‘received, and intends to cooperate with, two letters from NASDAQ, requesting certain information relating to matters disclosed in our Current Reports on Form 8-K filed with the SEC on July 6, 2022, July 15, 2022, July 22, 2022 and July 29, 2022’.
