Inspired Entertainment, Inc. Receives Expected Nasdaq Notification Regarding Delayed Form 10-K
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Insights
The notice received by Inspired Entertainment from Nasdaq regarding non-compliance with filing requirements raises concerns about the company's internal controls and financial reporting processes. Investors often view such notices as red flags, potentially indicating deeper issues within a company. It is essential to monitor how the market reacts to this news, as it can affect investor confidence and, consequently, the stock's performance.
While the company has expressed intent to file the overdue 10-K by mid-April, the delay introduces uncertainty. The risk of delisting, should the company fail to meet the extended deadlines, could lead to increased volatility in the stock price. Investors should assess the company's historical timeliness in addressing compliance issues and consider the impact of potential delisting on liquidity and marketability of the stock.
Non-compliance with Nasdaq Listing Rule 5250(c)(1) is a procedural issue that companies must take seriously. The rule mandates timely financial reporting, which is a cornerstone of transparency and accountability in the market. Inspired Entertainment's delay in filing its Form 10-K could invite scrutiny from the SEC, as it may hinder investors' ability to make informed decisions.
It's important to note that the company has a 60-day period to submit a plan to regain compliance or to file the report, with a possible extension of up to 180 days. The legal ramifications of failing to regain compliance include delisting, which can have significant legal and financial consequences for the company and its shareholders.
Market perception of Inspired Entertainment will likely be influenced by the company's ability to address the filing delay. The gaming and technology sector is competitive and investor confidence is crucial. The announcement of non-compliance may lead to a reevaluation of the company's market position by analysts and investors.
Long-term implications for the business could include a decreased trust from partners and customers, potentially impacting future contracts and revenue streams. It's also possible that competitors might leverage this situation to their advantage. The market will be watching closely to see if this is an isolated incident or part of a pattern of governance issues.
NEW YORK, April 09, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (NASDAQ: INSE) (“Inspired” or the “Company”), a leading B2B provider of gaming content, technology, hardware and services, today announced that it received a standard notification letter from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) stating the Company was not in compliance with the requirements of Nasdaq Listing Rule 5250(c)(1) as a result of not having timely filed its Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”) with the Securities and Exchange Commission.
This notification has no immediate effect on the listing of the Company’s common stock on Nasdaq. Under the Nasdaq rules, the Company has 60 calendar days, or until June 3, 2024 to file the 2023 Form 10-K or to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule. If the Company submits a plan to Nasdaq, which Nasdaq accepts, Nasdaq can grant an exception of up to 180 calendar days from the filing’s due date, or until September 11, 2024, to regain compliance. However, if the Company fails to timely regain compliance with Nasdaq Listing Rule 5250(c)(1), the Company’s common stock will be subject to delisting from Nasdaq.
The Company currently intends to file the 2023 Form 10-K by no later than April 15, 2024.
This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency.
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 may 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 and other similar expressions that indicate future events or trends or are not statements of historical matters. 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 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 on the Company of the restatement of certain of the Company’s financial statements; the risk that the Company may not be able to satisfy the terms of any Plan of Compliance it submits to Nasdaq, or that Nasdaq will accept the Plan of Compliance or provide any other accommodations to the Company; those risks set forth in the “Risk Factors” section of the Company’s annual report on Form 10-K/A for the fiscal year ended December 31, 2022, and in subsequent quarterly reports on Form 10-Q, which are available, free of charge, on the U.S. Securities and Exchange Commission’s website at www.sec.gov and on the Company’s website at www.inseinc.com. 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
FAQ
What notification did Inspired Entertainment, Inc. receive from Nasdaq?
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