Company: LTRYW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001641172-25-011865
Chunk: 38

Company: Lottery.com Inc.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 2
Chunk 38
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 7, 2023, on November 29, 2023, the Company received a letter from Nasdaq stating that based upon
its review of the Company’s Market Value of Publicly Held Shares (“ MVPHS”) for the last 30 consecutive business days,
the Company no longer met the minimum requirement of $5,000,000 set forth in Nasdaq Listing Rule 5450(b)(1)(C). However, under the Listing
Rules, the Company was provided a 180-calendar day grace period to regain compliance, through May 28, 2024.

If
at any time during the compliance period the Company’s MVPHS closed at $5,000,000 or more for a minimum of ten consecutive business
days, Nasdaq would provide written confirmation of compliance and the matter would be closed. The company received such notification
from Nasdaq on April 10, 2024 and the matter was closed.

Furthermore,
the requirement that we maintain a majority of independent directors and at least three members on our audit committee are Nasdaq requirements
that we currently meet but have not met from time to time.

If
the Company’s securities are delisted from Nasdaq, it could be more difficult to buy and sell the Company’s common stock
and warrants or to obtain accurate quotations, and the price of the Company’s common stock and warrants could suffer a material
decline. Delisting could also impair the Company’s ability to raise capital and/or trigger defaults and penalties under its outstanding
agreements or securities. Further, even if we regain compliance with Nasdaq listing requirements, there is no guarantee that we will
be able to maintain our listing for any period of time.

Delisting
from Nasdaq could also result in negative publicity. Further, if we are delisted, we would also incur additional costs under state blue
sky laws in connection with any sales of our securities. These requirements could severely limit the market liquidity of our common stock
and/or warrants and the ability of our stockholders to sell our common stock and/or warrants in the secondary market. If our common stock
and/or warrants are delisted by Nasdaq, our common stock and/or warrants may be eligible to trade on an over-the-counter quotation system,
such as the OTCQB Market, where an investor may find it more difficult to sell our stock or obtain accurate quotations as to the market
value of our common stock and/or warrants. In the event our common stock and/or warrants are delisted from The Nasdaq