Item
3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
As
previously disclosed, on August 24, 2022, the Listing Qualifications department of The Nasdaq Stock Market LLC (the “Staff”)
notified Lottery.com, Inc. (the “Company”, “we” and “us”) that the bid price
of its common stock had closed at less than $1 per share over the previous 30 consecutive business days, and, as a result, did not comply
with Listing Rule 5550(a)(2) (the “Rule”). In accordance with Listing Rule 5810(c)(3)(A), the Company was provided
180 calendar days, or until February 20, 2023, to regain compliance with the Rule.
On
February 23, 2023, the Company received a determination letter from the Staff advising the Company that the Staff had determined that
the Company had not regained compliance with the Rule and that the Company was not eligible for a second 180 day period as the Company
has not filed its periodic reports with the Securities and Exchange Commission (the “SEC”) and Nasdaq, for the quarters
ended June 30, 2022 and September 30, 2022, and that it no longer complies with Nasdaq’s Listing Rules for continued listing. The
Staff also confirmed to the Company in its February 23, 2023 letter that the failure to timely file those periodic reports each serve
as separate and an individual basis for delisting. As such, unless the Company appealed Nasdaq’s determination to delist the Company’s
common stock and warrants, the common stock and warrants were to be delisted from the Nasdaq Global Market and trading of the Company’s
securities were to be suspended, and a Form 25-NSE was to be filed with the SEC which would remove the Company’s securities from
listing and registration on The Nasdaq Stock Market.
The
Company had until 4:00 p.m. Eastern Time on March 2, 2023 to appeal Nasdaq’s delisting determination to a hearings panel, and the
Company timely requested such appeal. The Company also requested that Nasdaq stay the suspension of the Company’s securities pending
the hearings panel appeal.
On
March 16, 2023, Nasdaq provided the Company notice that the Nasdaq hearings panel (the “Panel”) had granted the request
of the Company extend the automatic 15-day stay of suspension from Nasdaq, pending the appeal hearing scheduled for April 13, 2023, and
a final determination regarding the Company’s listing status.
At
the panel hearing, the Company intends to present a plan to regain compliance with the Rule and to file the Company’s deficient
quarterly reports for the quarters ended June 30, 2022 and September 30, 2022. In this regard, the Company is continuing to work to become
compliant as quickly as possible and has made progress in completing its amended 2021 Annual Report on Form 10-K for filing with the
SEC. Additionally, under its new management, the Company continues to work to improve its disclosure and reporting controls, and plans
to overhaul its systems of internal control and invest in legal, accounting, and financial resources.
There
can be no assurance that the Company’s plan will be accepted by the hearings panel or that, if it is, the Company will be able
to regain compliance with the applicable Nasdaq listing requirements, or that a hearings panel will stay the suspension of the Company’s
securities. If the Company’s securities are delisted from Nasdaq, it could be more difficult to buy or 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
outstanding agreements or securities of the Company.