Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 57

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 receipt of a certain third party consent, resulting in cash proceeds of $68,638 to the Company after adjustments for amounts allocated to non-controlling interests, repayment of contingent consideration, transaction costs and other items directly attributable to the closing of the transaction. Of the $68,638 of cash proceeds received by the Company, approximately $22,610 was used to pay interest, fees, and principal on the Credit Facility entered into with Oaktree on February 26, 2025 as further discussed in Note 11 - Term Loans and Revolving Credit Facility. A gain of $52,430 was recognized during the six months ended June 30, 2025 from this sale, which is included in “Gain on sale and deconsolidation of businesses” line item on the accompanying unaudited condensed consolidated statements of operations.The Company determined that the assets and liabilities associated with the Wealth Management Transaction and Atlantic Coast Recycling transactions met the criteria under ASC 360, Impairment and Disposal of Long-Lived Assets to be classified as held for sale as of December 31, 2024. The assets and liabilities for both transactions were properly presented in the unaudited condensed consolidated balance sheets. Operating results from the disposal groups comprising the Wealth Management business and Atlantic Coast Recycling contributed to the operating incomes of the Wealth Management and All Other segment categories, respectively, for the six months ended June 30, 2025.Assets and liabilities held for sale consist of the following:As of December 31, 2024AtlanticWealthCoastManagementRecyclingTotalAssets Held for SaleCash and cash equivalents$— $1,324 $1,324 Accounts receivable, net of allowance of $18— 3,698 3,698 Prepaid expenses and other assets3,704 2,427 6,131 Operating lease right-of-use assets512 21,127 21,639 Property and equipment, net71 22,799 22,870 Goodwill13,861 3,280 17,141 Other intangible assets, net2,678 9,242 11,920 Total assets held for sale$20,826 $63,897 $84,723 Liabilities Held for SaleAccounts payable$— $1,410 $1,410 Accrued expenses and other liabilities— 13,290 13,290 Operating lease liabilities525 24,371 24,896 Notes payable— 1