Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 303

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 8
Chunk 303
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 was capitalized to the loan receivable balance annually on the loan's anniversary date. The loan receivable is secured by a first priority security interest in Freedom equity interests owned by Brian Kahn as more fully described in Note 2(h) below. The fair value of the loan receivable and collateral from the security interest in Freedom at September 30, 2024 is impacted by the Freedom VCM filing of voluntary petitions for relief under Chapter 11 of the Bankruptcy Code on November 3, 2024. The fair value of the loan receivable was $2,250 and $200,506 or 1.5% and 37.7% of the total loan portfolio as of September 30, 2024 and December 31, 2023, respectively. As a result of the bankruptcy filing on November 3, 2024, the loan receivable at September 30, 2024 is on non-accrual and there is no accrued interest receivable on the loan receivable at September 30, 2024. Interest receivable on the loan in the amount of $8,889 as of December 31, 2023 is included in prepaid expenses and other assets in the condensed consolidated balance sheets. The fair value of the underlying collateral for this loan is primarily comprised of other securities which amounted to $2,250 at September 30, 2024 and has decreased to a fair value of $2,154 at February 7, 2025.At September 30, 2024, the maximum amount of loss that the Company is exposed to loss from loans receivable concentration is an amount equivalent to the fair value of these loans which totaled $78,406. The Company is also exposed to a concentration of risk related to Freedom VCM which totaled $9,310 as of September 30, 2024 from the Freedom VCM Receivables, Inc. loan receivable and additional exposure from the loan receivable with a fair value of $2,250 as described above where the primary security includes other public equity securities owned by Brian Kahn.

(e) Advertising Expenses The Company expenses advertising costs, which consist primarily of costs for printed materials, as incurred. Advertising costs totaled $1,477 and $5,911 during the three months ended September 30, 2024 and 2023, respectively, and $6,155 and $16,462 during the nine months ended September 30, 2024 and 2023. Advertising expense was included as