Company: RILYN
Filing Date: 2025-05-01
Form Type: CORRESP
Source: 0001213900-25-038023
Chunk: 5

Company: B. Riley Financial, Inc.
Filing Date: 2025-05-01
Form: CORRESP
Chunk 5
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 equity method investments accounted for under the fair value option
and which are related to the loss on disposal from the Six Brands that were an operating business of the Company.

| B. Riley Financial, Inc.|  www.brileyfin.com | NASDAQ: RILY | 3 |

Fifth Bullet: After the disposal of the
three equity investments – HRLY Brand Management LLC, Justice Brand Management LLC, and S&S Brand Management LLC – and
the Company’s majority owned subsidiary BR Brand Holdings, LLC (collectively, the “Brand Securitized Assets”), B. Riley
retains a non-controlling equity investment in the ownership of BR Funding Holdings 2024-1, LLC, which is the ultimate parent company
of the Brand Securitized Assets. The retained non-controlling equity investment in the ownership of BR Funding Holdings 2024-1, LLC represents
a common interest that has only nominal value, if any, and is not expected to have any value in the future since there is no expectation
of any future distributions or participation in future cash flows by the common interest holders. B. Riley does not have any significant
continuing involvement after the disposal date since B. Riley does not have any representation on the Board, voting rights, protective
rights, policy making decisions or management of BR Funding Holdings 2024-1, LLC. In future filings, including the Company’s Annual
Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), we will provide additional disclosure about
our retained interest and continuing involvement.

Sixth Bullet: bebe is a majority-owned
subsidiary of the Company and was not deconsolidated at September 30, 2024. At September 30, 2024, the bebe subsidiary continued to hold
the two equity investments – the equity investments in BB Brand Holdings, LLC and BKST Brand Management, LLC – which are included
in assets of discontinued operations in the consolidated balance sheet of B. Riley at September 30, 2024 and December 31, 2023 and the
remaining operating business of bebe outside of the assets of discontinued operations is comprised of the rent-to-own stores which is
still reported in the continuing operations of the Company within All Other in the segment reporting. More specifically, the two equity
investments are included in Note 4 – Discontinued operations in the class of assets labelled Securities and other investments owned,