Lottery.com Inc. (NASDAQ:LTRY), a prepackaged software services provider, has announced the engagement of a new independent registered public accounting firm, Boladale Lawal & Company, effective immediately. This decision was made by the Audit Committee of the Board of Directors on December 10, 2024, and disclosed in a recent SEC filing.
The Texas-based company, formerly known as Trident (LON:TRR) (NS:TRIE) Acquisitions Corp., stated that Boladale will review the company's Form 10-Q for the period ended September 30, 2024. The change comes after the resignation of the previous accounting firm, Yusufali & Associates, LLC, effective November 15, 2024.
Lottery.com has clarified that during the fiscal years of 2022 and 2023, and up to September 30, 2024, there were no consultations with Boladale that involved either the application of accounting principles to any transaction or any disagreement or reportable event as defined by SEC regulations.
The company's filing also contains forward-looking statements, cautioning that these are subject to numerous risks and uncertainties, including the company's ongoing review of internal accounting controls, securing additional capital, and maintaining compliance with NASDAQ listing rules.
InvestingPro analysis reveals concerning metrics, including a weak financial health score and negative EBITDA of -$16.26 million in the last twelve months. Subscribers to InvestingPro can access 14 additional key insights about LTRY's financial position.
In other recent news, Lottery.com has inked a $100M stock purchase agreement with Generating Alpha Ltd. This strategic move aims to secure additional capital resources and fortify its financial position. The company has also gained approval from the U.S. Securities and Exchange Commission for its Form S-1 Registration Statement, a significant step towards overcoming past financial and operational challenges. This approval allows Lottery.com to offer up to 50 million shares of common stock, potentially driving future growth and market expansion.
Furthermore, Lottery.com has been actively enhancing its presence in the digital sports entertainment sector through strategic acquisitions. The company recently acquired S&MI Ltd, the technology firm behind the Sports.com brand and app, and CMF Media, a sports content production house. These acquisitions are expected to boost Lottery.com's presence in this sector.
However, Lottery.com is facing potential delisting from Nasdaq due to not meeting the required minimum bid price. The company has been given a 180-day grace period to regain compliance. In addition, Mark Bernard Battles, a board member, has recently resigned.
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