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Inspired Entertainment is set to file its 2023 financial report with the Securities and Exchance Commission (SEC) no later than 15 April.

That will see the business regain compliance with the Nasdaq’s listing rules after failing to submit the Form 10-K by its original March deadline.

Nasdaq rules

Under Nasdaq rules, after failing to submit a Form 10-K on time, companies are granted a period of 60 days to file the form or submit a plan to regain compliance.

In this case, Inspired would have until 3 June to do so.

Companies submitting a plan to regain compliance with the stock exchange’s listing rules can then be granted 180 days to implement the plan.

If a company does not regain compliance with the listing rules during that period, its common stock will be subject to delisting from Nasdaq.

Inspired behind on reporting

In November, Inspired first received notification from the stock exchange that it was not in compliance with Nasdaq Listing Rule 5250(c)(1), after failing to submit its Form 10-Q for Q3 2023.

The delay was caused by “certain accounting errors” identified by the firm prior to the original Q3 results deadline.

Specifically, the errors related to the company’s accounting policies for capitalising software development costs, including the timing of capitalisation and the nature of costs eligible for capitalisation.

Capitalisation allows companies to amortise or depreciate certain costs over an extended period of time, rather than accounting for them as a single, one-off expense.

On identifying the capitalisation-related errors, Inspired found the same errors may have stretched back as far as Q1 2021.

Plan underway

In January, the business submitted a plan to regain compliance with Nasdaq rules, involving submitting its completed Form 10-Q for Q3 2023 no later than 28 February.

At the time, Inspired also said it intended to submit the Form 10-K for full-year 2023 before its original March deadline.

While the company did release its Q3 results on 27 February, it failed to submit its Q4 and full-year results by their original deadline.

The business now intends to release the results and hold a conference call with shareholders and analysts on 15 April.

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