Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 428

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 8
Chunk 428
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 stock— 3,495 Applied Digital Corporation - common stock5,383 — Other public equities(1,011)(2,258)Subtotal(7,775)18,311 Private Equity Securities:Freedom VCM Holdings, LLC— (172,009)Kanaci Technologies, LLC— (16,913)BJES Holdings, LLC— (27,452)Other private equities(1,205)7,908 Subtotal(1,205)(208,466)Corporate bonds4,696 1,025 Partnership interest and other— (1,035)Total$(4,284)$(190,165)

The favorable variance of $185.9 million was primarily due to unfavorable fair value adjustments recorded in the prior year six months of $172.0 million for Freedom VCM, $27.5 million for BJES Holdings, LLC, and $16.9 million for Kanaci Technologies, LLC, partially offset by a favorable fair value adjustments recorded in the prior year six months of $21.8 million for Double Down Interactive Co., Ltd. 

Other income (expense) also includes change in fair value of financial instruments and other was a gain of $12.8 million during the six months ended June 30, 2025. Gain on the exchange of existing senior notes for New Notes was $55.0 million during the six months ended June 30, 2025. Income from equity investments was $25.1 million during the six months ended June 30, 2025. Loss on extinguishment of debt was $20.7 million during the six months ended June 30, 2025 compared to a gain of $0.1 million during the six months ended June 30, 2024. Interest expense was $53.9 million during the six months ended June 30, 2025 compared to $69.2 million during the six months ended June 30, 2024. The decrease in 

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interest expense was due to lower debt balances during the six months ended June 30, 2025. The decreases in interest expense primarily consisted of $10.2 million from the Nomura Term Loan, $8.5 million from the issuance of New Notes, $2.8 million from the Lingo Term Loan, $1.0 million from the Nomura Revolver, $1.0 million and $0.5 million from the Targus Term Loan