Inspired Entertainment Inc. has laid out a strategic plan to address compliance concerns raised by the Nasdaq Stock Market. The company disclosed its intention to file a Form 10-K/A for the year ended December 31, 2022, along with restated financial statements. Additionally, it plans to submit Forms 10-Q/A for the quarters ended March 31, 2023, and June 30, 2023, and a Form 10-Q for the quarter ended September 30, 2023, by no later than February 28, 2024. Inspired reassured stakeholders that it would file its Form 10-K for the year ended December 31, 2023, within the March 2024 deadline.
The Nasdaq issued a warning to Inspired in November 2023 for the late filing of its Form 10-Q for the quarter ended September 30, 2023. Despite missing the deadline, Inspired submitted its comprehensive plan on January 23, 2024.
Inspired’s late filing was a result of concerns related to accounting errors linked to compliance with US Generally Accepted Accounting Principles (GAAP) for capitalizing software development costs. The company acknowledged the need to restate its financial statements and initiated measures to address the identified material weaknesses in internal control over financial reporting.
Despite the challenges, Inspired expressed confidence that the planned changes would not adversely affect its cash position or overall business plan. The company has undertaken a thorough review and is implementing changes to enhance its reporting processes. Following the submission of the compliance plan, shares in Inspired Entertainment experienced a 6% increase, boosting investor confidence in the company’s ability to overcome the challenges.
In late 2023, Marilyn Jentzen assumed the role of interim CFO to manage the company’s finances after the departure of the longstanding CFO Stuart Baker. Inspired stated during that period that Baker would remain involved in the business throughout 2024, ensuring a seamless transition of responsibilities. Additionally, Inspired Entertainment appointed Ian Freeman as its new chief commercial officer, succeeding long-time employee Steve Rogers. Freeman, with a robust background in the gambling industry, is expected to leverage his expertise to enhance Inspired Entertainment’s virtual sports business.