Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 82

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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 $1,180 related to capitalized costs to fulfill a contract, respectively. For the nine months ended September 30, 2024 and 2023, the Company recognized expenses of $3,820 and $3,453 related to capitalized costs to fulfill a contract, respectively. There were no significant impairment charges recognized in relation to these capitalized costs during the three and nine months ended September 30, 2024 and 2023.Remaining Performance Obligations and Revenue Recognized from Past PerformanceThe Company does not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material as of September 30, 2024. Corporate finance and investment banking fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price as of September 30, 2024.

NOTE 15 — INCOME TAXES 

The Company’s effective income tax rate was a provision of 10.8% for the three months ended September 30, 2024 as compared to a benefit of 19.1% for the three months ended September 30, 2023. The Company’s effective income tax rate was a provision of 2.9% for the nine months ended September 30, 2024, as compared to a provision of 6.7% for the nine months ended September 30, 2023. During the three months ended September 30, 2024, the Company had a provision for income taxes of $14,508 resulting primarily from the impact of recording a valuation allowance on deferred tax assets as of September 30, 2024. The change in the effective tax rate compared to the prior year is primarily due to the impact of the valuation allowance recorded on deferred tax assets as of September 30, 2024. During the nine months ended September 30, 2024, the Company had a provision for income taxes of $17,915 resulting primarily from the impact of a valuation allowance on deferred tax assets. As of September 30, 2024, the Company had federal net operating loss carryforwards of $46,384 and state net operating loss carryforwards of $64,247, respectively. In addition one of the Company’s majority-owned subsidiaries that is not included in the Company’s consolidated federal income