Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 309

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 8
Chunk 309
---
 at fair value$10,213 $— $5,675 $4,538 As of June 30, 2025 and December 31, 2024, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $77,735 and $130,619, respectively, or 5.0% and 7.3%, respectively, of the Company’s total assets. In determining the fair value for these Level 3 financial assets, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity. The fair value for individual Level 3 financial assets and liabilities have various financial inputs which include multiple of sales, the market price of related securities, annualized volatility, discount rates, recovery rates and expected term inputs that may change at each reporting period and result in an increase or decrease in the valuation of Level 3 financial assets and liabilities.The following table summarizes the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of June 30, 2025 and December 31, 2024:

25

Fair value at June 30,2025ValuationTechniqueUnobservableInputRangeWeighted Average(1)Assets:Equity securities$22,897 Market approachMultiple of EBITDA(2)4.5x - 5.5x5.5xMultiple of sales0.8x - 7.3x2.2xMarket price of related security$10.57 - $11.62$11.044,829 Option pricing modelAnnualized volatility48.0% - 178.0%62.0%Loans receivable at fair value36,512 Discounted cash flowDiscount rate19.9% - 22.9%22.7%11,000 Liquidation approachCash recovery rate12.4%12.4%1,468 Market approachMarket price of related security$6.85$6.85Other assets1,029 Market approachMarket price of related security$1.47$1.47Options pricing modelAnnualized volatility90.4%90.4%Total level 3 assets measured at fair value$77,735 Liabilities:Contingent consideration$4,608 Discounted cash flowRevenue volatility5.0% - 7.5%5.0%Liability