Published: July 31, 2022 to Furlough Workers as Funds Dwindle and CEO resigns Inc. is furloughing certain employees and warning that it may not have the funds to continue operating, according to a regulatory filing.

The lottery-ticket-management service said Friday that it doesn't have enough money to fund operations or pay roughly $425,000 it owes in payroll obligations, which could lead to an exodus of, and potential legal actions from, its employees.

The company said a material loss of its employees, particularly its developers and engineers, could significantly disrupt operations, doom its customer relationships and open the company up to potential contract violation claims. also said Friday that it doesn't have the capital resources to fund operations for a 12-month period, raising "substantial doubt about the company's ability to continue as a going concern."

If it can't secure more capital soon, said it would be forced to wind down some or all of its operations and pursue liquidation.

Shares fell 39%, to 50 cents, in early trading Friday.

Additional reporting stock sinks to record low on inability to fund operations, going concern risk

-------------------------- has announced that Lawrence (Tony) DiMatteo has resigned from his role as chief executive, marking the latest executive-level departure at the US lottery broker and information portal.

The broker said that it accepted DiMatteo’s notice of resignation on July 21 and he stepped down as CEO the following day. DiMatteo will now serve as senior advisor to the board.

DiMatteo is a co-founder of and had served as its CEO since May 2015. He also co-founded WinTogether, which operates as part of the wider business.

Prior to joining, DiMatteo co-founded and was CEO of photo mobile application Glimpsable between March 2013 and February 2015.

DiMatteo becomes the latest high-profile exit from in recent weeks, with the broker last week having also announced that chief revenue officer Matthew Clemenson had resigned.

This came as revealed it “overstated” its cash holdings by $30m, soon after sacking president and CFO Ryan Dickinson after discovering questions about its compliance and accounting practices.

The broker 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, its board “terminated the employment” of 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”.


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