Inspired Entertainment faces de-listing from the NASDAQ exchange after it failed to publish its third-quarter results in a timely manner.
The North American provider of gaming, sports betting and lottery technology is yet to produce its Form 10-Q to the Security and Exchange Commission before it was due, therefore is in non-compliance with the exchange’s regulations.
NASDAQ authorities have given Inspired 60 calendar days to submit its results under the current plan, however, the firm can request additional time for submission.
Currently, the firm has until Jan. 22 to publish its results but, if it publishes a plan acceptable to the stock exchange, it will have an additional 180 days, given until May. 7 to comply with the regulations.
However, if these conditions are not met, Inspired faces the threat of being struck off from the exchange altogether.
Earlier this month, Inspired noted that it required additional time to publish its results for the period after auditing firm KPMG identified accounting errors with US GAAP within the documentation.
In November, an Inspired statement read: “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 adjustments being required.
“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.”
The company also told shareholders that, due to the accounting errors identified, its financial results for the end of 2022 can no longer be relied upon accurately. Further, its consolidated financial statement for 2021 should no longer be trusted as it contains similar inaccuracies.