Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 310

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 8
Chunk 310
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-classified warrants4,160 Monte Carlo simulation and Black-Scholes option pricing modelAnnualized volatility77.5%77.5%Discount for lack of marketability6.9%6.9%Total level 3 liabilities measured at fair value$8,768 (1) Unobservable inputs were weighted by the relative fair value of the financial instruments.(2) Multiple of earnings before interest, taxes, depreciation, and amortization (“EBITDA”).

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Fair value at December 31,2024Valuation TechniqueUnobservable InputRangeWeighted Average(1)Assets:Equity securities$34,654 Market approachMultiple of EBITDA6.3x6.3xMultiple of Sales2.1x - 8.0x3.1xMarket price of related security$9.97 - $11.10$10.765,862 Option pricing modelAnnualized volatility47.0% - 171.0%87.0%Loans receivable at fair value86,150 Discounted cash flowDiscount rate7.3% - 69.1%19.7%3,953 Market approachMarket price of related security$9.60 - $16.48$12.90Total level 3 assets measured at fair value$130,619 Liabilities:Contingent consideration4,538 Discounted cash flowDiscount rate5.0% - 7.5%5.1%Total level 3 liabilities measured at fair value$4,538 (1) Unobservable inputs were weighted by the relative fair value of the financial instruments.The changes in Level 3 fair value hierarchy during the three months ended June 30, 2025 and 2024 were as follows:Level 3Balance atBeginning ofPeriodLevel 3 Changes During the PeriodLevel 3Balance atEnd ofPeriodChange in unrealized gains (losses) (2)Fair Value Adjustments (1)Relating to Undistributed EarningsPurchases/ OriginationsSalesSettlements/ RepaymentsTransfer in and/or out of Level 3Three Months Ended June 30, 2025Equity securities$27,530 $197 $— $24,998 $— $(24,999)$— $27,726 $197 Loans receivable at fair value98,596 799 — 624 (3,575)(47,464)— 48,980