Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 85

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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2025April 7, 2025May 21, 2025June 30, 20255.00% Senior Notes due 2026$36,745 $7,000 $75,000 $8,021 $126,766 5.50% Senior Notes due 202686,309 — 29,535 — 115,844 5.25% Senior Notes due 2028— 5,000 — 18,096 23,096 6.00% Senior Notes due 2028— 10,000 34,537 1,892 46,429 Total exchanged Senior Notes principal$123,054 $22,000 $139,072 28,009 $312,135 8.00% New Notes principal due in 2028$87,753 $9,992 $93,067 $13,000 203,812 Warrants issued with the exchange (Note 19)351,012 39,968 372,268 52,000 815,248 

53

The total principal amount of New Notes issued for the four exchanges above totaled $203,812. The carrying amount of the New Notes in the amount of $247,468 at June 30, 2025 also includes the future undiscounted cash payments representing interest in the amount of $43,656. Each of the exchanges above represented a troubled debt restructuring. As the carrying amount of the debt for each exchange exceeded the future undiscounted cash payments under the terms of the New Notes on the date of each exchange, the Company recorded a gain on the debt restructuring of $44,784 and $55,316 during the three and six months ended June 30, 2025. The New Notes were recognized at a carrying value of $107,156 for the exchange dated March 26, 2025 and $140,312 for the three exchanges dated April 7, 2025, May 21, 2025, and June 30, 2025 that is equal to the future undiscounted cash payments of the New Notes and no future interest expense is recognized since the effective interest rate was set to zero upon the restructuring. The New Notes were issued pursuant to an indenture, dated as of March 26, 2025 (the “New Notes Indenture”), governing the issuance of New Notes dated March 26, 2025