Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 436

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 8
Chunk 436
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.5 million in investment banking deal expenses, $0.8 million in depreciation and amortization expenses, $0.6 million in business development activities and $0.1 million in other expenses, partially offset by an increase of $3.5 million in change in fair value of contingent consideration. The advisory agreement was terminated in August 2023 in connection with the FRG take private transaction as more fully described in Note 2(h) to the accompanying condensed consolidated financial statements and there was no expense during the nine months ended September 30, 2024 as compared to the prior year when the expense totaled $12.9 million. For any given reporting period in 2023, the advisory agreement would result in an expense being reported in selling, general and administrative expenses when realized and unrealized gains on certain invested balances in the Company’s broker-dealer subsidiary exceeded a minimum return on the invested balances during such period; in addition, a decrease in the invested balance in value during such reporting period would result in the reporting of a credit to selling, general and administrative expense. During the nine months ended September 30, 2023, the Company recorded an advisory fee of $12.9 million in accordance with the advisory agreement due to the realized and unrealized gains earned.

89

Wealth Management

Selling, general and administrative expenses in the Wealth Management segment increased by $2.2 million to $148.6 million during the nine months ended September 30, 2024 from $146.4 million during the nine months ended September 30, 2023. The increase was primarily due to increases of $4.0 million in payroll and related expenses and $1.4 million in legal settlements, partially offset by decreases of $2.5 million in other expenses and $0.7 million in software and equipment expenses.

Financial Consulting

Selling, general and administrative expenses in the Financial Consulting segment increased by $13.4 million to $56.6 million during the nine months ended September 30, 2024 from $43.2 million during the nine months ended September 30, 2023. The increase was primarily due to increases of $9.6 million in payroll and related expenses related to a business acquired in the third quarter of 2023, an increase in headcount, and an increase in variable compensation, $1.4 million in change in fair value of contingent consideration, $0.9 million in legal settlements, $0.7 million in travel and entertainment expenses, $