Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 403

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 8
Chunk 403
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2024, fair value adjustments for the loan receivable from W.S. Badcock Corporation was $0.9 million and $(6.0) million, respectively. During the three and nine months ended September 30, 2023, fair value adjustments for the loan receivable from W.S. Badcock Corporation was $(5.2) million. The fair value adjustment of $(6.0) million during the nine months ended September 30, 2024, was primarily due to fair value adjustments recorded in the second quarter of 2024 related to higher projected charge offs of receivables on the consumer receivable portfolio resulting from Conn’s, Inc. bankruptcy and estimated costs and losses from the projected liquidation of the consumer receivable portfolio.

During the nine months ended September 30, 2024, fair value adjustments for the loan receivable from Core Scientific, Inc. was $8.5 million. In the prior year nine months ended September 30, 2023, fair value adjustments for the loans receivable from Core Scientific, Inc. was $34.8 million. Core Scientific, Inc. provides digital infrastructure for bitcoin mining and high-performance computing. Core Scientific, Inc. filed Chapter 11 bankruptcy in 2022, leading to a significant mark down of the loan receivable in the fourth quarter of 2022. Subsequent to the Chapter 11 restructuring, and during the first quarter of 2023, there was a significant rebound in bitcoin prices resulting in significant growth and value assumptions. As a result, the Core Scientific, Inc. loan receivable had a fair value adjustment of $34.8 million for the nine months ended September 30, 2023.

Wealth Management – We provide retail brokerage, investment management, and insurance, and tax preparation services to individuals and families, small businesses, non-profits, trusts, foundations, endowments, and qualified retirement plans through a boutique private wealth and investment management firm to meet the individual financial needs and goals of our customers. Our experienced financial advisors provide investment management, retirement planning, education planning, wealth transfer and trust coordination, and lending and liquidity solutions. Our investment strategists provide strategies and real-time market views and commentary to help our clients make important and informed financial and investment decisions. Wealth management revenues are comprised of the following:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2024202320242023Brokerage revenues$23,120 $25,018 $69,613 $68,