Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 47

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 assets acquired and assumed4,993 Goodwill56,028 Noncontrolling interest(4,651)Total$56,370 

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During the nine months ended September 30, 2024, goodwill for Nogin increased by $1,636 related to certain purchase price accounting adjustments.The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:CategoryUseful lifeFair ValueCustomer relationships9 Years$10,300 Internally developed software and other intangibles8 Years3,950 Trademarks10 Years3,100 Total$17,350 As described in Note 2(h), the Company had entered into a Chapter 11 RSA with Nogin prior to the acquisition date. As part of Nogin's Chapter 11 restructuring activities, it ceased the sale of brand apparel merchandise and elimination of warehousing and other costs associated with the inventory, among other things. The Company has determined that the preparation of pro forma financial information would be impracticable due to the significant estimates of amounts needed to reflect Nogin's historical financial information with its operations emerging from bankruptcy.2023 AcquisitionsFreedom VCM Equity Investment Acquisition - Pro Forma Financial InformationOn August 21, 2023, the Company acquired approximately 31% equity interest in Freedom VCM for total consideration of $281,144. The equity interest was acquired in connection with Freedom VCM's acquisition of FRG by a buyer group that included members of senior management of FRG, led by Brian Kahn, FRG’s then Chief Executive Officer as part of the FRG take-private transaction. The unaudited pro-forma financial information for the three and nine months ended September 30, 2023 in the table below summarizes the results of operations of the Company and the equity investment in Freedom VCM as though the acquisition of the approximately 31% equity investment on August 21, 2023 had occurred as of the beginning of the year on January 1, 2023. The pro-forma financial information presented includes the effects of the common stock offering in July 2023 and adjustments related to additional interest expense from borrowings that the Company used to finance the acquisition of the equity interest. The Company has elected to account for the acquisition of the equity investment under the fair value option and any changes in fair value of the equity investment during future periods will be recorded in the condensed consolidated statements of operations.The pro forma financial information as presented below is for