Company: RILYN
Filing Date: 2025-05-01
Form Type: CORRESP
Source: 0001213900-25-038023
Chunk: 4

Company: B. Riley Financial, Inc.
Filing Date: 2025-05-01
Form: CORRESP
Chunk 4
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continued Operations of the Brand Transaction under the caption realized and unrealized gains (losses) on investments.            |

| (b) | B. Riley through its majority-owned subsidiary BR Brand Holdings, LLC owned three equity method investments                            
 that were accounted for under the fair value option which were comprised of HRLY Brand Management LLC (“Hurley”), Justice              
 Brand Management LLC (“Justice”), and S&S Brand Management LLC (“S&S”) and during the quarter ended September                          
 30, 2024, the Company recorded fair value adjustments that resulted in a $93 million loss that was reported in the income statement in 
 discontinued operations in Note 4 – Discontinued Operations of the Brand Transaction under the caption realized and unrealized gains   
 (losses) on investments.                                                                                                               |

The total of these losses on equity method investments
in the amount of approximately $113 million comprises the $113.2 million loss that is included in Note 4 – Discontinued Operations
within the income statement of the Brands Transaction under the caption realized and unrealized gains (losses) on investments.

| (c) | In addition to the equity method investments mentioned above, B. Riley’s results of operations historically                                    
 included operating revenues and expenses generated from its majority owned subsidiary that licensed the trademarks and intellectual properties 
 of six other brands: Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too and Nanette Lepore (collectively, the          
 “Six Brands”). As a result of the secured financing transaction accounted for as a sale in the fourth quarter, the net assets                  
 sold were written down to their fair value less estimated costs of disposal at quarter ended September 30, 2024 which resulted in a loss       
 of $39.5 million that is included in Note 4 – Discontinued Operations within the income statement of the Brands Transaction under              
 the caption loss on disposal for the quarter ended September 30, 2024.                                                                         |

The combined total of the loss recorded from secured
financing transaction in the amount of $133 million on page 76 accounted for as a sale in the fourth quarter of 2024 is comprised of the
loss on the sale of the three equity method investments noted above (Hurley, Justice and S&S) in the amount of $93 million and the
loss on disposal of $39.5 million related to the Six Brands noted above. In future filings, the Company will modify the disclosure to
make clear which losses are related to the fair value adjustments for