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- Restatement (new) — The company is correcting previously filed financial statements for 2023-2025 due to fraud in earlier periods.
- Should No Longer Be Relied Upon (new) — The company is formally withdrawing reliance on multiple prior financial reports and will restate them.
SEGG discloses 2020-21 fraud, restates 2020-2025 financials to correct inflated revenue and acquisition cost
Filed October 8, 2026 · Period ending September 25, 2026 · ~1 min read
Key Changes
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high
Former executives recorded a $9M Datassure transaction as revenue and cash in Dec 2020 despite funds being restricted in escrow, inflating revenue and the Global Gaming acquisition price.
Item 8.01 verify on EDGAR → -
high
SEGG says 2021 and 2022 annual reports and three 2022 quarterly reports can no longer be relied upon and will be restated due to the same accounting errors.
Item 4.02 verify on EDGAR → -
high
Restatement reduces 2020 revenue by $2M to $5.46M and 2021 revenue by $7M to $9.41M, with net losses increasing by $2M and $8.14M respectively.
Item 4.02 verify on EDGAR → -
medium
2023-2025 financials will also be corrected: goodwill reduced by $3.88M and total assets by $6.76M as of Dec 31, 2023, with net losses reduced by $2.91M in 2023 and $3.47M in 2024.
Item 8.01 verify on EDGAR → -
medium
The company states the corrections reduce amortization and impairment expenses, thereby reducing previously reported losses for the correction periods.
Item 8.01 verify on EDGAR →
Summary
SEGG disclosed that former executives recorded a $9 million transaction with Datassure as revenue and cash in December 2020, even though the funds were held in a restricted escrow account and not accessible to the company. This inflated revenue in 2020 and 2021 and overstated the acquisition price of Global Gaming.
As a result, the company will restate its financial statements for 2020 through 2025, including annual and quarterly reports. The company says the corrections will reduce amortization and impairment expenses, thereby reducing previously reported losses for the correction periods.
For investors, the restatement raises concerns about the reliability of past financial reporting and the effectiveness of internal controls during the periods in question. The company attributes the errors to actions by former executives and states that current management learned of the issues through depositions and an internal inquiry. The restatement reduces previously reported revenue and increases net losses for 2020 and 2021, while reducing net losses for 2023 and 2024 due to lower amortization and impairment charges. The company has not yet filed the restated financial statements, and the full impact on previously reported results and any potential regulatory or legal consequences remain to be seen.
Section-by-Section Diff
Event · Item 8.01 — Other Events
SEGG discloses historical fraud in 2020-21 Legacy Transactions and restates 2023-25 financials to correct inflated revenue and acquisition cost.
Added in current filing · verify on EDGAR →
the Company believes that, in December 2020, Komissarov instructed DiMatteo, Clemenson, and Dickinson to record a $9,000,000 transaction with Datassure as revenue and cash, despite AutoLotto’s inability to possess, access or transfer the funds because the cash was held in a restricted escrow account at Boston Law Group P.C., a Massachusetts law firm.
The filing discloses that former executives recorded a $9 million revenue transaction that was not legitimate because the funds were restricted and not accessible to the company. This revenue was then used to inflate the acquisition cost of Global Gaming. The disclosure is based on new information from depositions and an internal inquiry.
Added in current filing · verify on EDGAR →
the Company’s previously filed annual financial statements for the years ended December 31, 2023, December 31, 2024, and December 31, 2025, along with the quarterly financial statements for those periods (collectively, the “Correction Periods”) shall be corrected to reflect the New Information gained and subsequent determination made by the Company that the Legacy Transactions overstated revenue in 2020 and 2021 and created an inflated acquisition price for Global Gaming in 2021.
The company will restate its 2023, 2024, and 2025 annual and quarterly financial statements. The restatement corrects the inflated revenue and acquisition price from the Legacy Transactions. The company states the corrections will reduce amortization and impairment expenses, thereby reducing previously reported losses.
Added in current filing · view on EDGAR →
Goodwill | $ 11,227,491 | $ (3,880,443 ) | $ 7,347,048
As of December 31, 2023, goodwill is reduced by $3,880,443 from $11,227,491 to $7,347,048. Intangible assets are reduced by $2,880,657, and total assets decrease by $6,761,100. Accumulated deficit increases by $6,761,100.
Added in current filing · verify on EDGAR →
Net Income/ (Loss) attributable to SEGG | $ (25,563,699 ) | $ 2,911,559 | $ (22,652,139 )
For the year ended December 31, 2023, the restatement reduces the net loss attributable to SEGG by $2,911,559, from a loss of $25,563,699 to a loss of $22,652,139. Amortization expense is reduced by $1,051,559 and impairment loss is reduced by $1,860,000.
Added in current filing · verify on EDGAR →
Net Income/ (Loss) attributable to SEGG | $ (28,221,605 ) | $ 3,471,774 | $ (24,749,831 )
For 2024, the restatement reduces the net loss attributable to SEGG by $3,471,774. For 2025, the net loss attributable to SEGG is reduced by $616,246. The company notes that the impact is more consequential for 2020-2022 but does not believe the corrections alter a reasonable investor's assessment for the Correction Periods.
Event · Item 4.02 — Non-Reliance on Previously Issued Financial Statements
Item 4.02 — Non-Reliance on Previously Issued Financial Statements filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The Company has determined that its previously filed annual financial statements for the years ended December 31, 2021, and December 31, 2022, along with the financial statements for the quarters ended March 31, 2022, June 30, 2022, and September 30, 2022, (collectively, the “Affected Reports”) should no longer be relied upon and must be restated.
SEGG is restating its 2021 and 2022 annual reports and three 2022 quarterly reports. The errors stem from two related accounting issues originating in 2020 and 2021, before the company's October 2021 business combination with Trident Acquisitions Corp.
Added in current filing · verify on EDGAR →
Based on the New Information obtained by the Company, Company’s current management believes that the initial recording of $9,000,000 transaction with Datassure as deferred revenue and cash resulted in an overstatement of revenue and cash in the fourth quarter of 2020 and an overstatement of revenue recognized in the first and second quarters of 2021 and also led to overstatement of the amount reportedly paid for the Global Gaming acquisition.
A $9 million transaction with Datassure was incorrectly recorded as deferred revenue and cash, inflating revenue and cash in late 2020 and early 2021, and also overstating the purchase price of the Global Gaming acquisition.
Added in current filing · view on EDGAR →
Revenue | $ 7,459,514 | $ (2,000,000 ) | $ 5,459,514
For 2020, revenue is reduced by $2 million from $7.46 million to $5.46 million, and net loss increases by $2 million to $7.81 million. Cash is reduced by $2 million and restricted cash by $6.95 million.
Added in current filing · view on EDGAR →
Revenue | $ 16,409,922 | $ (7,000,000 ) | $ 9,409,922
For 2021, revenue is reduced by $7 million from $16.41 million to $9.41 million, and net loss increases by $8.14 million to $61.19 million. Goodwill is reduced by $6.59 million and intangible assets by $5.78 million.
Added in current filing · view on EDGAR →
Net income/ (loss) | $ (60,383,265 ) | $ 1,051,559 | $ (59,331,706 )
For 2022, the restatement improves net loss by $1.05 million to $59.33 million, mainly due to lower amortization expense. Goodwill is reduced by $6.59 million and intangible assets by $4.73 million.
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Figures/quotes linked to EDGAR · Narrative written by AI · Oct 8, 2026 · How we verify