Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 373

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 8
Chunk 373
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centive PlansUnder the 2021 B. Riley Stock Incentive Plan (the “2021 Plan”), share-based compensation expense for restricted stock units under the Company’s 2021 Plan was:Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Share-based compensation expense for restricted stock units for continuing operations$2,649 $5,318 $5,658 $12,859 Share-based compensation expense for restricted stock units for discontinued operations822 724 1,038 1,557 Total share-based compensation expense for restricted stock units$3,471 $6,042 $6,696 $14,416 During the six months ended June 30, 2025, in connection with employee stock incentive plans, the Company did not grant any restricted stock units. Share based compensation expense is recorded in the “Selling, general and administrative expenses” line item in the unaudited condensed consolidated statement of operations. The Company began settling equity-classified restricted stock units in cash and as a result of the past practice, the restricted stock units were reclassified to a liability in January of 2025. The change in classification was accounted for as a modification under ASC 718, Compensation - Stock Compensation. The grant date fair value of the original equity award exceeded the fair value of the modified liability award; therefore, the Company continues to recognize compensation expense based on the grant date fair value of the original award and no additional compensation expense was recognized. Further, the changes in fair value of the liability at the end of the reporting period do not impact earnings. The modification was recognized by a reclassification of $2,138 of additional paid-in capital to a liability. The liability represents the fair value of the restricted stock units that have not been settled through the balance sheet date for which the requisite services have been provided by the employees. The fair value of the liability at each balance sheet date is determined based on the Company’s stock price. As of the six months ended June 30, 2025, the Company settled $2,287 of restricted stock units in cash and as of June 30, 2025, the liability was $396, which is recorded in the “Accrued expenses and other liabilities” line item in the unaudited condensed consolidated balance sheet.During the six months ended June 30, 2024, in connection with employee stock incentive plans, the Company granted 1,223,263 restricted stock units