US online platform for lottery tickets and lottery news Lottery.com is very close to being delisted from the US Nasdaq Stock Exchange as it has not submitted its financial report for the second quarter of 2022 ending on June 30.
A Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard has been issued regarding Lottery.com. The US Securities and Exchange Commission (SEC) has reported that the company has not been able to file on time its financial statement for the second quarter of 2022, ending on June 30, through the compulsory Form 10-Q.
Lottery.com is still reviewing its financial reports and its internal accounting procedures and their effect on the company’s financial results. That is why it failed to submit the 10-Q form before the due date.
Lottery.com has elaborated that it is working towards submitting the necessary Form 10-Q as soon as possible.
Lottery.com’s delay to submit Form 10-Q, however, is in breach of Nasdaq rule number 5250(c) and the company has been notified by the Nasdaq Stock Market LLC on August 17, 2022, that, as it has not submitted its financial statement for Q22022 to the SEC by the required deadline, the company is in non-compliance with listing rule5250(c).
In addition, Nasdaq informed Lottery.com that any breach of the rules in the 5000 range gives a company 60 days to present a plan leading to compliance. However, Nasdaq decided it is going to allow Lottery.com to do that in a shorter period and has given the company a deadline until August 31. According to Nasdaq listing rule 5101, the stock market is allowed to change the length of the 60-day period if it assesses it is necessary.
In case Lottery.com submits the quarterly financial statement through Form 10-Q by August 31, 2022, it will become compliant with Nasdaq rules.
If Lottery.com fails to send in its financial results for Q22022, the company will be obliged to submit a plan for achieving compliance by the same deadline – August 31.
Provided that Lottery.com submits the necessary compliance plan, Nasdaq, according to its own judgment, may allow the company an additional period of 180 days in order for the company to become compliant with Nasdaq listing rules. In this case, that would mean Lottery.com will have until February 13, 2023, to sort out its financial statements and submit them to the SEC.