Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 30

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 December 31, 2024, the carrying value of 

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equity securities measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes:June 30,2025December 31,2024Securities and other investments owned, carrying value$70,217 $67,100 Upward carrying value changes1,732 1,848 Downward carrying value changes/impairment(592)(2)The following table presents information on equity securities valued under the measurement alternative on a nonrecurring basis by level within the fair value hierarchy which were measured due to an observable price change or impairment during the periods below. Fair Value Measurement UsingTotalQuoted prices in active marketsfor identical assets (Level 1)Other observable inputs (Level 2)Significant unobservable inputs (Level 3)As of June 30, 2025Equity securities valued under the measurement alternative$24,462 $— $23,204 $1,258 As of December 31, 2024Equity securities valued under the measurement alternative$7,294 $— $7,294 $— Securities sold, but not yet purchased represent obligations of the Company to deliver the specified security at the contracted price and thereby create a liability to purchase the security in the market at prevailing prices. Changes in the value of these securities are reflected currently in the results of operations.As of June 30, 2025 and December 31, 2024, equity securities includes $17,853 and $29,562 respectively, of investments in public and private companies that are accounted for under the fair value option where the Company would otherwise use the equity method of accounting as follows:Freedom VCM Holdings, LLC Equity Interest and Take-Private TransactionOn August 21, 2023, the Company acquired an equity interest in Freedom VCM for $216,500 in cash in connection with the FRG take-private transaction. In connection with the closing of the FRG take-private transaction, the Company terminated an investment advisory agreement (the “Advisory Agreement”) with Mr. Kahn. Pursuant to the Advisory Agreement, Mr. Kahn, as financial advisor, had the sole power to vote or dispose of $64,644 of shares of FRG common stock (based on the value of FRG shares as of the closing date of the FRG take-private transaction) held of record by B. Riley Securities, Inc. (“B