Inspired Entertainment has confirmed that its Chief Financial Officer, Stewart Baker, has resigned from his post after the firm failed to publish its Q3 results in a timely manner.
Baker has resigned from his role but will continue to serve the company, supporting the transition phase between now and securing a permanent replacement.
Inspired’s board of directors have already initiated the process to search for Baker’s permanent successor, while also appointing Marilyn Jentzen as CFO on an interim basis.
Jentzen brings over three decades of financial and accounting experience to Inspired and will be responsible for the company’s financial policies, overseeing the finance and accounting functions, and ensuring compliance with financial and accounting regulations.
Brooks Pierce, President and Chief Executive Officer of Inspired, explained: “We are pleased and fortunate to have a leader of Marilyn’s caliber step into the role of Interim CFO. Marilyn is a strategic, results-oriented executive with proven success leading, developing and improving multi-national finance operations at publicly listed companies.
“She is well-positioned to support the continued execution of our financial priorities while the Board conducts its search for our new CFO. I’d like to thank Stewart for his many years of service and contributions to Inspired Entertainment.”
Baker’s departure comes under a cloud that has mired Inspired in the last few months regarding the timing and accuracy of its accounting and publication of its financial results.
The firm failed 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 post 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.
Furthermore, KPMG had identified irregularities within its audit of Inspired’s results which the firm failed to report in compliance with US GAAP.
Consequently, the firm told shareholders that its financial results for the end of 2021 and 2022 can no longer be relied upon accurately.
