Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 21

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 Loans ReceivableUnder the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 825, Financial Instruments, the Company elected the fair value option for all outstanding loans receivable. Management evaluates the performance of the loan portfolio on a fair value basis. Under the fair value option, loans receivable are measured at each reporting period based upon their exit value in an orderly transaction, and unrealized gains or losses are included in the “Fair value adjustments on loans” line item in the unaudited condensed consolidated statements of 

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operations. At the time of origination, the Company’s loans receivable are collateralized by the assets of borrowers and other pledged collateral and may have guarantees to provide for protection of the payments due on loans receivable. The fair value of loans receivable was $48,980 and $90,103 as of June 30, 2025 and December 31, 2024, respectively. The Conn’s Term Loan described below represents 22.5% and 43.1% of total loans receivable, at fair value at June 30, 2025 and December 31, 2024, respectively. The Company also has loans receivable from Exela Technologies, Inc. that represents 60.5% and 35.7% of total loans receivable at fair value at June 30, 2025 and December 31, 2024, respectively. The loans have various maturities through February 2029. As of June 30, 2025 and December 31, 2024, the principal balances net of discounts of loans receivable accounted for under the fair value option was $373,224 and $446,004, respectively. The net principal balances of loans receivable exceeded the fair value of loans by $324,243 and $355,901 as of June 30, 2025 and December 31, 2024, respectively. The Company recorded net realized and unrealized gains of $800 and losses of $7,296 during the three and six months ended June 30, 2025, respectively, and net realized and unrealized losses of $175,582 and $187,783 during three and six months ended June 30, 2024, respectively, on loans receivable. Net realized and unrealized gains and losses on loans receivable are reflected in the “Fair value adjustments on loans” line item on the accompanying unaudited condensed consolidated statements of operations.Loans rece