Last month, Inspired announced its plan to regain Nasdaq compliance by filing a 10-Q form for Q3 2023 by 28 February. Additionally, Inspired aims to complete a 10-K/A for the year ended 31 December 2022 and 10-Q/A forms for Q1 and Q2 of 2023 by the same date.
In November, Nasdaq contacted Inspired regarding the late filing of its Q3 2023 results. Inspired cited the need for more time to complete the results and to restate certain previously issued statements. Nasdaq deemed the late filing a breach of its rules and gave Inspired until 22 January to submit a compliance plan. Inspired filed its proposed plan on 23 January, missing the deadline by one day.
Accounting errors relating to compliance with US GAAP, specifically accounting policies for capitalizing software development costs, caused the filing to be delayed. These errors were identified in financial statements for periods starting from 1 January 2021, rendering them unreliable and in need of restatement. Inspired also stated that any financial statements containing information after that date should not be relied upon.
Inspired is actively working to address the identified “material weaknesses” in internal control over financial reporting. Its plan aims to make Q3 figures available before the end of the month. The company reassures investors that these changes will not impact its cash position or business plan.
Since August 2023, Inspired has not released any financial results, except for its Q2 and H1 figures. The Q2 results demonstrated a 12.3% increase in revenue to $80.1m amid growth across all business areas. Higher spending resulted in an 85.4% decrease in net profit to $2.3m, but adjusted EBITDA rose to $26.2m. For H1, revenue was 11.0% higher at $146.4m, although net profit declined by 53.6% to $3.9m over the six-month period.
