Lottery.com Inc. (NASDAQ:LTRY), a provider of prepackaged software services, has been notified of non-compliance with Nasdaq's listing rules. The notice, issued on Monday, January 10, 2025, indicated that the company failed to hold an annual meeting of shareholders for the fiscal year 2023 within the required timeframe, violating Nasdaq Listing Rule 5620(a).
The company's stock, currently trading at $0.37, has experienced significant volatility, with InvestingPro data showing an 85% decline over the past year.
The Fort Worth, Texas-based company, which operates under the organization name 06 Technology, is slated to conduct its overdue 2024 Annual Meeting of Stockholders on February 17, 2025, at 10:00 am Central Time. This announcement comes as an effort to rectify the compliance issue with the annual meeting requirement.
According to InvestingPro analysis, the company's financial health score is rated as WEAK, with concerning metrics including a current ratio of 0.67, indicating potential liquidity challenges.
Lottery.com, previously known as Trident (NS:TRIE) Acquisitions Corp., underwent a name change on April 29, 2016, and is incorporated in Delaware. The company's common stock and warrants are both traded on The Nasdaq Stock Market under the symbols LTRY and LTRYW, respectively. The warrants allow holders to purchase a share of common stock at an exercise price of $230.00.
This development could lead to the delisting of Lottery.com's securities from the Nasdaq if the company does not fulfill the necessary requirements to regain compliance. The company's CEO, Matthew McGahan, signed off on the SEC filing on Friday, January 17, 2025, formalizing the disclosure of the company's current standing with Nasdaq.
The information in this article is based on the latest SEC filing by Lottery.com.
In other recent news, Lottery.com has regained compliance with Nasdaq listing standards, a significant development for the company and its stakeholders.
The company has also appointed a new independent registered public accounting firm, Boladale Lawal & Company, following the resignation of the previous accounting firm, Yusufali & Associates, LLC. Furthermore, Lottery.com has entered into a $100M stock purchase agreement with Generating Alpha Ltd., a move expected to secure additional capital resources.
Also, the company has expanded its footprint in the digital sports entertainment sector with the acquisitions of S&MI Ltd, the technology firm behind the Sports.com brand and app, and CMF Media, a sports content production house. However, InvestingPro data highlights potential liquidity challenges, with a weak gross profit margin of 7.6% and a current ratio of 0.67. The U.S. Securities and Exchange Commission has approved Lottery.com's Form S-1 Registration Statement, allowing the company to offer up to 50 million shares of common stock.
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