Motivated Entertainment, Inc. has revealed that it will unveil its complete fiscal year 2023 financial outcomes by April 15th. This follows a cautionary notice from Nasdaq regarding the company’s overdue filing.
Motivated Entertainment has not yet released its annual 10-K report for the period concluding on December 31st, 2023. Nasdaq declared that this breaches their listing regulations and issued a warning to Motivated Entertainment.
However, the notification will not immediately impact the listing of Motivated Entertainment’s ordinary shares on Nasdaq. Motivated Entertainment has a 60-day window, until June 3rd, to submit the report or present a plan to restore compliance.
If Motivated Entertainment submits a plan, Nasdaq may grant an exemption of 180 days from the filing deadline. This would provide Motivated Entertainment until September 11th to regain compliance.
Nevertheless, if Motivated Entertainment fails to restore compliance in a timely manner, its ordinary shares will be removed from Nasdaq.
Motivated Entertainment has promised to disclose its financial outcomes by April 15th.
In response, Motivated Entertainment indicated that it intends to file its 10-K report no later than April 15th. The company also intends to conduct a conference call on the same day to discuss the results and general business trends.
This filing will be later than Motivated Entertainment’s initial anticipated date for announcing its fourth-quarter outcomes.
In the preceding month, Inspired furnished its shareholders with a forecast of its fiscal performance for the concluding quarter. The enterprise anticipated reporting earnings and modified earnings before interest, taxes, depreciation, and amortization in alignment with its fourth-quarter guidance.
A thorough examination of Inspired’s financial records resulted in the company’s postponement of its filing. Inspired stated that it had allocated substantial resources to the review, which was carried out during the final quarter.
The examination revealed discrepancies in the financial records for the period commencing on January 1, 2021. Consequently, the company declared that these records were no longer dependable and required revision.
Based on these discoveries, Inspired asserted that there was at least one significant weakness in its internal controls. As a consequence, the company committed to implementing modifications to rectify these shortcomings, including revising the financial records for the pertinent periods.
Nasdaq contacted Inspired in the midst of the fourth quarter, cautioning that the delayed filing contravened its regulations. Nasdaq granted Inspired until January 22 to submit a strategy to restore compliance or face the possibility of delisting its stock.
Inspired submitted its strategy in January, which was subsequently approved by Nasdaq. As a result, Inspired evaded any further action on the matter.
What transpired during the third quarter?
The postponed release of the third-quarter results indicated that Inspired had a varied performance in the three months concluding on September 30, 2023.
Income climbed by 30.9% to reach $97.5 million (£76.9 million/€89.9 million).
Nonetheless, due to elevated expenditures, Inspired’s net gain in the third quarter was $7.2 million, a decrease of 58.6% compared to the same period last year. Furthermore, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 2.2% to $26.7 million.
Income for the nine months ending September 30 rose by 18.0% to $241.8 million.
However, costs increased across the board in the nine-month period. Consequently, the period witnessed a net deficit of $1 million, in contrast to a profit of $20.4 million during the same period in the previous year. Adjusted EBITDA grew by 1.1% to $74 million.
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