Online lottery ticket vendor, Lottery.com, faces potential expulsion from the Nasdaq Stock Market. The company’s failure to submit its financial report by the deadline has triggered a regulatory violation. The Securities and Exchange Commission (SEC), the governing body overseeing such enterprises, confirms Lottery.com is actively working to finalize the report. However, the missed deadline contravenes Nasdaq regulations.
Nasdaq maintains strict criteria for companies seeking listing on its exchange. Non-compliance with these rules can result in delisting. Lottery.com has been granted a reprieve to rectify the situation, with a deadline set for the end of August. Should the report remain outstanding by then, the company will be removed from the Nasdaq.
Should the enterprise be incapable of fulfilling the stipulations, it can present a proposal to restore adherence. Subsequently, Nasdaq might provide a 180-day extension from the 10-Q filing due date (February 13th of the following year) to conform to Nasdaq’s regulations.
The U.S. Securities and Exchange Commission remarked that while Lottery.com cannot assure the timeframe, the organization stated it intends to submit the 10-Q form “as soon as practicable” to regain compliance.
This notification represents another obstacle for Lottery.com, which has encountered a string of challenges in recent months.
In July, it was reported that Lottery.com was indebted $425,000 in unpaid salaries, just days after Lawrence (Tony) DiMatteo stepped down as the company’s chief executive officer.
DiMatteo’s departure followed the resignation of Chief Revenue Officer Matthew Clemenson, who left his position a week prior.
Previously, Lottery.com disclosed that its cash reserves were “exaggerated” by $30 million, just after it dismissed President and Chief Financial Officer Ryan Dickinson, following the detection of issues with its compliance and accounting procedures.
Brokerage firms indicated that the company initiated a review after discovering “instances of infringement of state and federal law concerning the acquisition of tickets in states.”
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