Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 152

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 1
Chunk 152
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 to a decrease in the valuation of our investment in Freedom VCM Holdings, LLC of $221.0 million, partially offset by increases of $35.3 million in Babcock & Wilcox Enterprises, Inc., $34.9 million in Double Down Interactive Co., Ltd and $21.3 million in The Arena Group, Inc. Change in fair value of financial instruments and other was a gain of $0.6 million during the nine months ended September 30, 2024 and a loss of $4.0 million during the nine months ended September 30, 2023. Interest expense was $102.2 million during the nine months ended September 30, 2024 compared to $118.6 million during the nine months ended September 30, 2023. The decrease in interest expense was due to lower debt balances during the nine months ended September 30, 2024. The decreases in interest expense primarily consisted of $14.4 million from the Pathlight term loan, $8.1 million from the issuance of senior notes, $7.5 million from the Nomura term loan, $4.0 million from the Nomura revolving credit facility, $0.4 million and $1.7 million from the Targus term loan and revolver, respectively, and $1.2 million from the BRPAC term loan, partially offset by increases in interest expense of $2.1 million from the bebe term loan, and $0.6 million from the Nogin secured convertible promissory note. 

Loss from Continuing Operations Before Income Taxes. Loss from continuing operations before income taxes was $627.6 million during the nine months ended September 30, 2024 compared to loss before income taxes of $45.5 million during the nine months ended September 30, 2023. The change was due to a decrease in revenue of $514.7 million, a change in realized and unrealized losses on investments of $135.3 million, a decrease in operating expenses of $52.6 million, a decrease of $0.5 million in interest income, and a decrease of $5.4 million in dividend income, partially offset by a decrease in interest expense of $16.4 million.

Provision for Income Taxes. Provision for income taxes was $17.9 million during the nine months ended September 30, 2024 compared to a provision for income taxes of $3.0 million during the nine months ended September 30, 202