Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 61

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 discontinued operations in the accompanying unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024.Continuing InvolvementIn addition to retaining an equity interest accounted for under the equity method of accounting, at the closing of the transaction, the Company entered into a Transition Services Agreement, pursuant to which the Company will provide certain transition services to Great American NewCo relating to the Great American Group for a period of up to one year from the closing. Additionally, the Company entered into a credit agreement, pursuant to which an affiliate of the Company, as lender, will provide to Great American NewCo, as borrower, a first lien secured revolving credit facility of up to $40,000 for general corporate purposes, subject to the terms and conditions set forth therein, which had an outstanding balance of $1,698 at closing. The Company also entered into promissory notes which totaled $15,332 related to capital requirements for certain retail liquidation engagements that were ongoing as of closing. GlassRatner and FarberOn June 27, 2025, the Company signed an equity purchase agreement to sell all of the membership interests of GlassRatner and Farber. The aggregate cash consideration paid by the buyers for the interests of GlassRatner and shares of Farber was $117,800, which is based on a target closing working capital amount that is subject to adjustment within 180-days following the sale date. In connection with the sale, the Company entered into a transition services agreement with the buyer to provide certain services. The major classes of assets and liabilities included in discontinued operations were as follows:

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GlassRatner & FarberJune 30, 2025December 31, 2024Assets:Cash and cash equivalents$— $8,025 Accounts receivable, net— 19,704 Prepaid expenses and other assets2,221 9,222 Operating lease right-of-use assets— 2,258 Property and equipment, net— 275 Goodwill— 30,450 Other intangible assets, net— 439 Total assets$2,221 $70,373 Liabilities:Accounts payable$— $1,326 Accrued expenses and other liabilities830 14,359 Deferred revenue— 5 Contingent consideration— 3,092 Operating lease liabilities— 2,539 Total liabilities$830 $21,321 Revenues and income (loss)