Company: RILYN
Filing Date: 2025-05-01
Form Type: CORRESP
Source: 0001213900-25-038023
Chunk: 6

Company: B. Riley Financial, Inc.
Filing Date: 2025-05-01
Form: CORRESP
Chunk 6
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at fair value and have not been deconsolidated as of September 30, 2024. In Note 4 – Discontinued Operations, we have disclosed
the following:

“upon completion of the Secured
Financing of the Brand Interests, the Company will deconsolidate the ownership of the Brand Interests and the Company’s ownership
in the Brand Interest will be reported as a non-controlling equity method investment that is estimated to have nominal value as a result
of the liquidation preferences and notes that were issued as part of the Secured Financing ….”

Seventh Bullet: In future filings, we will
revise the disclosure above that the transaction was accounted for as a sale during the fourth quarter of 2024 per the Staff’s comment.

| 3. | Please address the following related to the disposal of the Great American Group: |

| ● | Tell us how you measured the fair value of             
 the retained Class B Preferred Units and Common Units. |

| ● | Tell us how you determined the gain on sale                     
 of $235 million which will be recognized in the fourth quarter. |

| ● | Revise to disclose the information required                                                    
 by ASC 810-10-50-1B.d and .e related to the retained Class B Preferred Units and Common Units. |

Response to Comment 3:

The Company respectfully acknowledges the Staff’s
comment, and informs the Staff that the fair value of the retained interest in the Class B Preferred Units of Great American Group was
valued using discounted cash flows expected from the Class B Preferred Units using an estimated discount rate that a market participant
would expect from a similar security with an estimated investment exit date of five years from the transaction date. The fair value of
the retained interest in the Common Units of Great American Group was valued using a market multiple approach utilizing and further supported
by the transaction price that was paid by the acquiring party pursuant to the equity purchase agreement dated November 15, 2024 for the
Class A Preferred Units and 53% of the Common Units by third party. The gain on the sale of the interests in Great American Group was
determined in accordance with ASC 840-10-40-5 and included the aggregate of (a) B. Riley’s share of the cash consideration received
for the sale of B. Riley’s interest in the Class A Preferred Units and Common Units in accordance with the equity purchase agreement,
(b) the fair value of B. Riley’s retained interests, consisting of the