On November 8, 2023, Inspired Entertainment announced it would require additional time to complete financial statements for their third quarter of 2023 and restate certain previously issued financial statements. The press release stated, “[i]n connection with the preparation of the financial statements of the Company for the quarterly period ended September 30, 2023, the Company, in consultation with its current independent registered public accounting firm, KPMG LLP, identified certain accounting errors relating to the compliance with U.S. GAAP in connection with the Company’s accounting policies for capitalizing software development costs. The errors relate primarily to the application of the relevant accounting standards to projects, including the timing of capitalization with respect to software development projects and the nature of costs eligible for capitalization. The Company is currently undertaking a review of other financial statement line items and related accounting policies to ensure U.S. GAAP compliance. The Company is currently unable to determine whether this review will result in further adjustments being required.”
On this news, Inspired Entertainment’s stock price fell $3.07 per share, or 29.52%, to close at $7.33 on November 9, 2023.