Inspired Entertainment Announces Nasdaq Acceptance of Plan of Compliance
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The acceptance of Inspired Entertainment Inc.'s plan of compliance by Nasdaq is a critical development for the company and its investors. The ability to maintain listing standards and provide timely financial reporting is essential for investor confidence and the efficient functioning of capital markets. The commitment to file restated financial statements suggests there may have been previously identified inaccuracies or errors which could have material implications on the company's financial health. Investors will be closely monitoring the restated results to reassess the company's performance and valuation.
From a financial analysis standpoint, the restatement of financials could lead to volatility in the company's stock price as the market reacts to the new information. It is also indicative of potential internal control issues that the company may need to address. The market will likely look for assurances that these issues have been fully resolved to prevent future discrepancies.
The gaming content and technology sector is highly competitive and sensitive to shifts in regulatory and compliance standards. For a B2B provider like Inspired, maintaining credibility with partners and customers is paramount. The delay in filing and the need to restate financial statements can impact customer and partner trust, potentially affecting future contracts and revenue streams. The market will be interested in understanding the nature of the restatements and whether they reflect on the company's operational performance or are merely accounting adjustments.
Moreover, the industry is keen on innovation and financial stability, which means that any perceived weakness in Inspired's financial reporting could influence its competitive position. It is essential for the company to not only rectify its reporting issues but also to communicate effectively with stakeholders about the steps taken to ensure accurate financial reporting going forward.
Compliance with Nasdaq's listing requirements is a legal obligation for publicly traded companies. Inspired's proactive approach in submitting a plan and gaining acceptance from Nasdaq demonstrates an awareness of the seriousness of these requirements. The legal implications of not meeting these obligations could include delisting, which would significantly affect the company's ability to raise capital and provide liquidity for shareholders.
The requirement to file restated financial statements indicates that there may have been significant non-compliance with financial reporting standards. This can lead to increased scrutiny from regulators and could carry legal risks, including potential penalties and shareholder lawsuits if the restatements significantly affect shareholder value. The company's legal team will need to ensure that all regulatory concerns are thoroughly addressed and that the restated filings are in full compliance with applicable securities laws.
NEW YORK, Feb. 05, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today announced that it has received notification from the Nasdaq Stock Market LLC (“Nasdaq”) stating that Nasdaq has accepted the Company’s plan of compliance (the “Plan”) to file a Form 10-Q for the quarter ended September 30, 2023 by no later than February 28, 2024.
In addition to working to file the September 30, 2023 Form 10-Q on or before February 28, 2024, the Company is working diligently to complete the 10-K/A for the year ended December 31, 2022 with restated financial statements, as well as Forms 10-Q/A for the quarters ended March 31, 2023 and June 30, 2023, and aims to file such reports as soon as practicable, on or before February 28, 2024.
About Inspired Entertainment, Inc.
Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, social and leisure operators across retail and mobile channels around the world. The Company’s gaming, virtual sports, interactive and leisure products appeal to a wide variety of players, creating new opportunities for operators to grow their revenue. The Company operates in approximately 35 jurisdictions worldwide, supplying gaming systems with associated terminals and content for approximately 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 32,000 retail venues and various online websites; interactive games for 170+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 16,000 terminals. Additional information can be found at www.inseinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "expects," "believes," "estimates," "projects," "intends," "plans," "seeks," "may," "will," "should" or "anticipates" or the negative or other variations of these or similar words. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of the Company's knowledge of its business, there can be no assurance that actual results, including the impact of the restatement, will not differ materially from its expectations. Meaningful factors that could cause actual results to differ from expectations include, but are not limited to, risks relating to the final impact of the restatement on the Company's financial statements; the impact of the restatement on the Company's evaluation of the effectiveness of its internal control over financial reporting and disclosure controls and procedures; delays in the preparation of the financial statements; the risk that additional information will come to light during the course of the Company's financial statement and accounting policy review that alters the scope or magnitude of the restatement; and the risk that the Company will be unable to obtain, if needed, any required waivers under its debt indenture with respect to a significant delay in filing its periodic reports with the SEC, which could affect its liquidity; and the risk that the Company may not be able to satisfy the terms of the Plan of Compliance it has submitted to Nasdaq, or that Nasdaq will provide any other accommodations to the Company. The Company does not intend to update publicly any forward-looking statements, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this news release may not occur.
Contact:
For Investors
IR@inseinc.com
+1 (646) 277-1285
For Press and Sales
inspiredsales@inseinc.com
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