The business said it initiated a review after discovering “instances of non-compliance with state and federal laws concerning the state in which tickets are procured”.
Following this review, the Lottery.com board “terminated the employment” of its president, treasurer and chief financial officer Ryan Dickinson earlier this month, appointing Harry Dhaliwal as interim CFO.
As part of the changeover the business reviewed its cash balances and discovered that it had “overstated its available unrestricted cash balance by approximately $30m” and that, relatedly, in the prior fiscal year, it “improperly recognised revenue in the same amount”.
“The company, in consultation with its outside advisors, is currently validating its preliminary conclusion, assessing any impact on previously issued financial reports, and has begun to institute appropriate remedial measures,” it added.
Alongside this notice, the business announced that chief revenue officer Matthew Clemenson had resigned with immediate effect.
Lottery.com’s share price has collapsed since a peak in November 2021. Once trading at $15.70 per share, shares were trading at $1.22 before the revelations about financial irregularities. Its share price has now dropped further, closing yesterday (18 July) at $0.82 per share.