Lottery.com is $425,000 behind on the payroll, casting doubt on his future. [Image: Shutterstock.com]
fatal chain of events
Lottery.com faces many financial hurdles including debt and the inability to pay its workers.
It is expected that a large part of its workers will be furloughed
The lottery technology company said Friday that it does not have the $425,000 needed to pay its employees. As a result, the company is expected to furlough a significant portion of its workers.
Lottery.com also warns of future setbacks, should they be forced to release their developers and engineers. Loss of a client, contract violations, and a breakdown in the business chain can all follow these dismissals.
Lottery.com is dropping fast
Founded in 2015, lottery.com is a service that allows gamblers to purchase and monitor lotteries from their phones.
The company’s stock was fairly flat from 2018-2020 before rocking in 2021, then fell to its current trading price of $0.33, about $10.50 less than it was in the previous year (Updated Friday, July 29) .
The stock’s drop reflects many of the issues facing the company, which are detailed in a filing with the US Securities and Exchange Commission (SEC).
It does not currently have sufficient financial resources to fund its operations.”
“[Lottery.com] It does not currently have sufficient financial resources to fund its operations or pay certain outstanding liabilities, including payroll and related liabilities. “The inability of the company to pay this amount may result in employees terminating their relationship with the company and/or seeking statutory damages.”
The speech also cast doubt on the company’s ability to fund operations for the next 12 months. As a result, there is “significant doubt about the company’s ability to continue as a going concern”.
No instant decisions
The filing was signed by Lottery.com’s chief legal and operating officer and the only remaining C-level employee, Kathryn Lever.
The development comes shortly after the company “overestimated” its holdings by $30 million two weeks after the dismissal of its former president and chief financial officer, Ryan Dickinson. CEO Tony DiMatio also left the company last week.
Non-compliance with state and federal laws
The news also follows a review that showed “cases of non-compliance with state and federal laws relating to the state in which tickets are purchased.”
The struggle of Lottery.com is especially devastating with the huge multi-state lottery going on. The MegaMillions Prize has reached a total of $1.28 billion, making it the fourth company ever to exceed $1 billion. Usually, this would lead the lottery companies’ business to the surface.
The company is already preparing to shut down most, if not all, of its services if it can’t find more funding quickly.