Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 201

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 2
Chunk 201
---
2025.

Critical Accounting Estimates

The preparation of our condensed consolidated financial statements in accordance with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities, and reported amounts of revenue and expense during the reporting period. The estimates and assumptions are based on historical experience and on other factors that management 

77

believes to be reasonable. Actual results may differ from those estimates. Critical accounting estimates represent the areas where more significant judgments and estimates are used in the preparation of our condensed consolidated financial statements. A discussion of such critical accounting estimates, which include fair value measurements, goodwill and other intangible assets, and accounting for income tax valuation allowances can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Results of Operations

The following period to period comparisons of our financial results and our interim results are not necessarily indicative of future results.

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Condensed Consolidated Statements of Operations

(Dollars in thousands)

78

Three Months Ended September 30,Change20242023Amount%Revenues:Services and fees$198,514 $244,096 $(45,582)(18.7)%Trading loss(1,238)(9,727)8,489 (87.3)%Fair value adjustments on loans(71,477)(860)(70,617)n/mInterest income - loans11,251 27,397 (16,146)(58.9)%Interest income - securities lending7,007 42,333 (35,326)(83.4)%Sale of goods55,248 60,029 (4,781)(8.0)%Total revenues199,305 363,268 (163,963)(45.1)%Operating expenses:Direct cost of services49,659 52,616 (2,957)(5.6)%Cost of goods sold40,312 42,217 (1,905)(4.5)%Selling, general and administrative expenses184,605 202,321 (17,716)(8.8)%Restructuring charge116 228 (112)(49.1)%Impairment of goodwill and tradenames— 35,500 (35,500)(100.0)%Interest expense - Securities lending and loan participations sold6,