Company: RILYN
Filing Date: 2025-09-12
Form Type: 8-K
Source: 0001213900-25-087284
Chunk: 1

Company: B. Riley Financial, Inc.
Filing Date: 2025-09-12
Form: 8-K
Item: Item 4.01
Chunk 1
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 management’s                                      

  The Company identified a material weakness related to the design and operating effectiveness of controls                                

  The Company identified material weaknesses in controls related to ITGCs at Bebe Stores Inc. in the areas                               

  The Company identified a material weakness in controls due to its inability to rely on the SOC 1 Type                                        

The reportable events disclosed
above were discussed among the Committee and Marcum.

The Company has provided Marcum
with a copy of the disclosures contained herein and has requested that Marcum furnish the Company with a letter addressed to the SEC stating
whether it agrees with the statements made herein and, if not, stating the respects in which it does not agree. A copy of Marcum’s
letter, dated September 12, 2025, is filed as Exhibit 16.1 to this Form 8-K.

(b) Appointment of New Independent Registered
Public Accounting Firm

On September 8, 2025, the
Committee approved the appointment of BDO USA, P. C. (“ BDO”) as the Company’s independent registered public accounting
firm to perform independent audit services for the fiscal year ending December 31, 2025, subject to completion of BDO’s standard
client acceptance procedures and execution of an engagement letter. In considering the appointment of a new auditor, the Company identified
firms that it believed were qualified to serve as auditor for a company with the size and complexity of the Company. In each case the
Company identified issues that might impact the independence of the qualified firm. The Committee considered these issues carefully in
choosing a new auditor. The Company is providing this disclosure to explain the facts and circumstances, as well as BDO’s and the
Committee’s conclusions, concerning BDO’s objectivity and impartiality.

Prior to its appointment as
auditor, BDO informed the Company that it would not be independent with respect to the performance of the audit of the financial statements
of the Company for the year ending December 31, 2025, due to certain non-audit services (payroll, corporate secretarial, treasury/accounts
payable and third-party licensed software) that were performed by BDO member firms during the period under audit for affiliates of the
Company. All services performed by BDO member firms that would be considered an impairment of BDO’s independence were terminated
in April 2025.

For the following reasons,
the Committee of the Company and BDO have each concluded, and are of the view that