SEGG to restate 2021-2022 reports after finding 2020 revenue was circular
SEGG, formerly Lottery.com, says a 2020 customer-data sale was booked as revenue and cash it never held, so its 2021 and 2022 reports can no longer be relied on.
In brief
- What happened
- SEGG said on 8 October 2026 that its 2021 and 2022 financial reports can no longer be relied on, because a 2020 transaction was wrongly booked as revenue and cash.
- Why it matters
- Reported revenue, deferred revenue and cash at the end of 2020 and revenue in the first half of 2021 will fall, goodwill and total assets will fall in later periods, and reported losses for 2022 to 2025 will shrink.
- Who it affects
- Investors in SEGG: they should no longer rely on the 2021 and 2022 annual reports or the first three 2022 quarterly reports.
SEGG, the gaming company formerly called Lottery.com, says $9 million of revenue and cash it booked in December 2020 was never available to it, and that its 2021 and 2022 financial reports can no longer be relied on. The company disclosed the finding in a Form 8-KForm 8-KThe report a company listed in the United States files with the Securities and Exchange Commission to announce a significant event between its regular quarterly and annual reports.Full entry in the glossary dated 8 October 2026, under Items 8.01 (other events) and 4.02 (non-reliance on earlier statements).
The details
The company says a deposition-based review showed that former executives, at the direction of Vadim Komissarov, then chief executive of the SPAC Trident Acquisition Corp., recorded a $9,000,000 sale of customer data to Datassure as revenue and cash. The money sat in a restricted escrow account at a Massachusetts law firm, Boston Law Group, and belonged to an acquaintance of Komissarov, according to the filing.
The same sum was then used, with other consideration, to buy Global Gaming from Pan European Associates, a Czech company the filing says Komissarov created. In the filing's account the money went back to its source. The reported acquisition cost was overstated at $10,572,674.
Komissarov was sentenced to three years in prison on 24 June 2026, the filing says. Matthew Clemenson and Dickinson pleaded guilty on 22 May 2025 and await sentencing. The company says no current officer or director was involved.
By the numbers
- Total assets, end of 2020: $41,782,099 restated, from $50,732,099 reported, a cut of $8,950,000.
- Net loss, 2023: $22,885,825 restated, from $25,797,384.
- Net loss, 2024: $25,237,301 restated, from $28,709,075.
- Net loss, 2025: $20,279,114 restated, from $20,805,067.
Why it matters
The restatement cuts in two directions. Revenue, cash, goodwill and assets fall, and losses for 2020 and 2021 grow. Amortisation and impairment charges for 2022 to 2025 shrink, so those years' losses are lower. Management says the biggest effect is on 2020 and 2021 and that the 2023 to 2025 reports should not be called unreliable.
What's next
The company intends to restate the 2021 and 2022 annual reports and the first three 2022 quarterly reports by amendment, and to correct the 2023 to 2025 reports. The filing gives no date for the amendments.
Drafted with AI assistance from the company's official announcement or filing and reviewed by our editors before publication. How we work