Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 46

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 the Company’s investment in Joann Retail was zero as the Company had fully recovered its initial investment of $6,163 in Joann Retail. The Company’s investment in Joann Retail is adjusted for the Company’s proportionate share of equity method losses and cash distributions received during the three months ended June 30, 2025. The Company received $30,420 in excess of the Company’s investment balance and the distributions received in excess of the investment balance are recognized as other income and included in the “Income from equity investments” line item in the unaudited condensed consolidated statements of operations.The following tables contain summarized financial information with respect to Joann Retail included below for purposes of the disclosure a quarter in arrears (balance sheet amounts as of March 31, 2025 correspond to amounts as of June 30, 2025 and income statement amounts for the period from February 27, 2025 (inception) to March 31, 2025 correspond to the three months and six months ended June 30, 2025):March 31, 2025Current assets$66,054 Noncurrent assets$20,925 Current liabilities$77,594 Equity attributable to investee$9,385 February 27, 2025 to March 31, 2025Expenses$3,615 Net loss attributable to investee$(3,615)SW-B. Riley Retail Opportunity Fund (“SW-B. Retail”)The Company accounts for its investments in SW-B. Retail under the equity method of accounting in accordance with ASC 323, Investments – Equity Method and Joint Ventures, under which the Company accounts for its share of SW-B. Retail’s earnings or losses on the basis of the percentage of the equity interest the Company owns. At December 31, 2024, the Company’s ownership percentage was approximately 10.7% and increased to 22.6% with the consolidation of BRC Partners Opportunity Trust (the “BRC Trust”) as discussed below in Note 2(n) - Noncontrolling Interests. The carrying value of the Company’s equity method investments in SW-B. Retail included in the “Prepaid expenses and other assets” line item in the unaudited condensed consolidated balance sheets was $7,219 and $3,025 as of June 30, 2025 and December 31, 2024, respectively.

(n) Noncontrolling InterestsNon-redeemable noncontrolling interest represents the portion of equity