Home Finance Inspiration calms fears about Nasdaq’s compliance warning

Inspiration calms fears about Nasdaq’s compliance warning

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Inspired Entertainment has announced that it will release its 2023 full-year financial results no later than April 15th, after Nasdaq warned the company about late filing.

It has not yet made public the Form 10-K of its fiscal year ending 31 December 2023. Nasdaq has warned Inspired for violating Nasdaq Listing Rule 5251(c)(1).

However, the notification has no immediate impact on Inspired’s listing on Nasdaq. Inspired has until the 3rd of June to submit the form, or to present a plan for regaining compliance.

If Inspired files a plan with Nasdaq, Nasdaq may grant an exemption of 180 days calendar from the due date. The company would have until the 11th of September to become compliant.

If Inspired does not regain its compliance within a reasonable time, it may be delisted from Nasdaq.

Inspired confirms publication on 15 April

Inspired responded that they intend to submit the Form 10-K no later than April 15. On this date, the provider plans to hold a conference call to discuss its results and general business trends.

The first time Inspired is expected to file its Q4 numbers was in the year 2000.

Inspired provided investors with insight last month on what to expect in its Q4 results. According to its guidance, the company will report Q4 revenue and adjusted EBITDA.

This is due to a review of all accounting policies that took place in Q4. Inspired stated that it had devoted “considerable resources” to the review.

The review flagged issues relating to financial statements beginning on 1 January 2021. It said that these financial statements could no longer be trusted and needed to be re-stated.

Inspired stated that based on its findings there were one or more “material” weaknesses in the internal control of financial reporting. It then committed to make changes in order to remedy these weaknesses, including restating the financial statements of those periods that were of concern.

A warning about Inspired

The latest communication from Nasdaq comes after a warning similar to that issued by the company about a possible delay in the Q3 results.

Nasdaq warned Inspired that the late filing put it in violation of their rules. Stock exchanges gave Inspired until the 22nd of January to come up with a compliance plan or face having their shares removed.

Nasdaq accepted Inspired’s plan, which it submitted in January. Inspired has avoided further legal action in the case.

What has happened during Q3?

Inspired’s delayed Q3 performance showed mixed results for the period ending 30 September 2023. The revenue grew 30.9%, to $97.5m.

Despite this, the higher costs meant that Inspired’s Q3 net profit was $7.2m down by 58.6%. The adjusted EBITDA fell 2.2%, to $26.7m.

The revenue for the first nine months of the current year has grown 18.0%, to $241.8m.

Nevertheless, the spending in nearly all categories increased in this nine-month time period. The net loss was $1.0m for the nine-month period, as opposed to the $20.4m profit the year before. The adjusted EBITDA increased by 1.1%, to $74.0m.

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