Lottery.com Inc. Receives Expected Notice from The NASDAQ Stock Market LLC Pertaining to its Form 10-Q of September 30, 2024

Rhea-AI Summary

Lottery.com received a notice from Nasdaq on November 20, 2024, regarding non-compliance with Nasdaq Listing Rule 5250(c)(1) due to failing to file its Form 10-Q for the period ended September 30, 2024, on time. The company has 60 days to submit a compliance plan to Nasdaq, which may grant an extension until May 19, 2025, to regain compliance. Lottery.com intends to file the Form 10-Q as soon as possible, though no specific timing is assured.

Positive

• None.

Negative

• Failed to file Q3 2024 Form 10-Q on time
• Non-compliance with Nasdaq listing requirements
• Risk of potential delisting if compliance is not achieved

Insights

Financial Analyst

This delinquent SEC filing situation signals serious operational and governance concerns at Lottery.com. The failure to file a quarterly report on time often indicates internal control issues, accounting problems, or resource constraints. With a micro-cap valuation of just $3.2M, this compliance failure puts the company at risk of potential delisting if they cannot resolve the issue within the extension period.

The granted 60-day window to submit a compliance plan, followed by a possible 180-day extension, provides some breathing room. However, the company's vague statement about timing and lack of concrete explanation for the delay are red flags. Historical patterns show that companies failing to meet filing deadlines often face increased scrutiny from investors and regulators, leading to potential share price volatility and reduced market confidence.

FORT WORTH, Texas, Nov. 26, 2024 (GLOBE NEWSWIRE) -- On November 20, 2024, Lottery.com Inc. (NASDAQ: LTRY; LTRYW) (“Lottery.com” or “the Company”) received a notice (the “Notice”) from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, as a result of not having timely filed the Form 10-Q for the period ended September 30, 2024 with the SEC, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires timely filing of all required periodic financial reports with the SEC.

Additionally, the Notice indicated that under the Nasdaq Listing Rules, the Company may submit a plan to regain compliance with the Listing Rule within 60 days and, following receipt of such plan, Nasdaq may grant, at its sole discretion, an extension of 180 calendar days from the Form 10-Q due date or May 19, 2025, for the Company to regain compliance.

While the Company can provide no assurances as to timing, the Company plans to file the Form 10-Q as soon as practicably possible to regain compliance with the Listing Rule.

About Lottery.com

Lottery.com is a technology company that transforms how players engage with lotteries and sports entertainment through its digital platforms. As the parent company of Sports.com, Lottery.com aims to create a global hub for sports content, delivering innovative programming and immersive experiences to fans around the world.

Important Notice Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of present or historical fact included in this press release, regarding the company’s future financial performance, as well as the company’s strategy, future operations, revenue guidance, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Lottery.com disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Lottery.com cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Lottery.com. In addition, Lottery.com cautions you that the forward-looking statements contained in this press release are subject to the following factors: (i) the outcome of any legal proceedings that may be instituted against Lottery.com; (ii) Lottery.com’s ability to maintain effective internal controls over financial reporting, including the remediation of identified material weaknesses in internal control over financial reporting relating to segregation of duties with respect to, and access controls to, its financial record keeping system, and Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its effect directly on Lottery.com and the economy generally; (vii) risks relating to privacy and data protection laws, privacy or data breaches, or the loss of data; (viii) the possibility that Lottery.com may be adversely affected by other economic, business, and/or competitive factors; (ix) the ability of Lottery.com to achieve its strategic and growth objectives as stated or at all; and (x) those factors discussed in the proxy statement/prospectus filed by Lottery.com with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com with the SEC. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that Lottery.com has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov.

Lottery.com Contact:

ir@lottery.com

This press release was published by a CLEAR® Verified individual.

FAQ

Why did Lottery.com (LTRY) receive a Nasdaq notice on November 20, 2024?

Lottery.com received a Nasdaq notice for failing to timely file its Form 10-Q for the period ended September 30, 2024, violating Nasdaq Listing Rule 5250(c)(1).

What is the deadline for Lottery.com (LTRY) to submit its compliance plan to Nasdaq?

Lottery.com has 60 days from the notice date of November 20, 2024, to submit a plan to regain compliance with Nasdaq listing requirements.

What is the maximum extension period Nasdaq may grant LTRY to regain compliance?

Nasdaq may grant Lottery.com an extension of up to 180 calendar days from the Form 10-Q due date, or until May 19, 2025, to regain compliance.