Inspired Entertainment still hasn’t published the results from the third quarter of 2023, which can lead to serious consequences – the company might even be delisted from the NASDAQ exchange.
This renowned provider of various advanced solutions, including gaming, sports betting, and lottery, didn’t submit the required Form 10-Q to the Security and Exchange Commission, so the company is currently in non-compliance with the regulations.
The company has a deadline of 60 calendar days to publish the Q3 results under the current plan. However, that period can be extended if the company requests it. For now, the deadline is set to January 22. However, if Inspired submits a plan that is acceptable for the stock exchange, that period can be extended until May 7 in order to meet the requirements completely.
If the company doesn’t publish the results in that period, it’s at risk of being delisted from the stock exchange.
At the beginning of November, Inspired submitted the request for additional time to prepare and submit its results. As the main reason the company listed the accounting errors, the auditing company KPMG noticed US GAAP in the papers they were required to submit.
Back then, the company issued a statement: “The errors relate primarily to the application of the relevant accounting standards to projects, including the timing of capitalization with respect to software development projects and the nature of costs eligible for capitalization. The Company is currently undertaking a review of other financial statement line items and related accounting policies to ensure U.S. GAAP compliance. The Company is currently unable to determine whether this review will result in further required adjustments.
“The Company does not believe that the foregoing changes will have any impact on the Company’s cash position or overall business plan. Although the Company cannot at this time estimate when it will file the amended reports, it is diligently pursuing completion of the restatement and intends to make such filings as soon as reasonably practicable.”
But these errors aren’t related only to the Q3 of 2023 results. The company warned its shareholders that the results from 2022 and 2021 might not be accurate as well.
The investigation is conducted by the stockholder rights law company Bragar Eagel & Squire, P.C. upon the request of Inspired stockholders, who are worried that the company possibly violated the federal securities laws and was a part of other practices that haven’t complied with the law.
The company allegedly failed to comply with the Generally Accepted Accounting Principles related to its software’s capitalization, on top of being late with the Q3 results.
According to the sourcew, on November 2 this year, the Audit Committee noticed errors in the company’s financial statements, beginning in January 2021.