Inspired Entertainment, a gaming technology company, has announced its plan to regain compliance with the US stock exchange Nasdaq after receiving a warning for the late filing of its third-quarter results in November. Nasdaq stated that Inspired could face delisting if it did not publish the figures by an agreed deadline. Inspired cited the need for more time to complete financial statements for the three months ending on September 30, 2023, as well as restating certain previously issued financial statements.

The late filing was deemed a breach of Nasdaq Listing Rule 5250(c)(1), and Inspired was given until January 22, 2024, to either file the form or submit a plan to regain compliance with Nasdaq Listing Rules. After the deadline passed, Inspired outlined a plan on January 23, indicating that it will file the required documents no later than February 28. These filings include restated financial statements and Forms 10-K/A and 10-Q/A for different periods.

Inspired also plans to file its Form 10-K for the year ended December 31, 2023, by the March 2024 due date to regain compliance with Nasdaq rules. The provider emphasized that the update has no immediate effect on the listing of the Company’s securities on Nasdaq.

The delay in filing the results is attributed to accounting errors relating to compliance with US GAAP in connection with accounting policies for capitalizing software development costs. Inspired has also identified “material weaknesses” in internal control over financial reporting and is implementing changes to address these issues.

Despite the situation, Inspired reassured investors that it does not believe the planned changes will impact its cash position or overall business plan. The company’s most recent results, covering the second quarter and first half of 2023, showed growth in revenue but a decrease in net profit due to higher costs. The restated results and new figures are expected to be published next month after implementing the necessary changes.

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