Lottery.com remains out of compliance with Nasdaq after failing to submit its financial statement for the latest quarter.
The company first came under pressure from Nasdaq in August after being warned that its shares could be delisted by the end of the month.
Lottery.com was told that it had until August 31 to become compliant and submit its Form 10-Q with the SEC for the second quarter of the year.
The admonishment from Nasdaq came amid a turbulent time for the company which had, in July, admitted serious solvency issues after overstating its available unrestricted cash balance by $30m and ‘improperly recognising revenue in the same amount’ during the prior fiscal year.
A slew of high-profile departures followed, including the resignation of CEO Tony DiMatteo, as Lottery.com expressed ‘substantial’ doubts over its future.
However, on November 28, the embattled firm received a notice from the Nasdaq Stock Market indicating that its failure to file its Form 10-Q for the period ended September 30, in addition to its previous failure to file its Form 10-Q for the period ended June 30, had left Lottery.com out of compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the SEC.
Publicly addressing the notice from Nasdaq, Lottery.com stated: “The company is working toward filing the Form 10-Q’s as soon as practicable, but was unable to file them by the prescribed due date.
“As a result of the delinquencies, the company must submit an update to its original plan to regain compliance with the Listing Rule.”
Under Nasdaq Listing Rules, a company normally has 60 calendar days to submit a plan to regain compliance.
However, on this occasion, Nasdaq has shortened the deadline to December 1, “pursuant to the staff’s discretionary authority set forth in Nasdaq Listing Rule 5101”.
Lottery.com added: “While the company can provide no assurances as to timing, the company plans to file the Form 10-Q’s as soon as practicably possible to regain compliance with the Listing Rule.”