Company: RILYN
Filing Date: 2025-01-14
Form Type: 10-Q
Source: 0001628280-25-001398
Chunk: 15

Company: B. Riley Financial, Inc.
Filing Date: 2025-01-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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% and 37.7% of the total loan portfolio as of June 30, 2024 and December 31, 2023, respectively. Continued deterioration in the collateral, including in the performance of Freedom VCM or delays in the execution of its strategies, including the possible disposition of additional businesses and further de-leveraging of its balance sheet, for the loan receivable may impact the ultimate collection of principal and interest. At June 30, 2024, the maximum amount of loss that the Company is exposed to loss from loans receivable concentration is an amount equivalent to the fair value of these loans which totaled $144,815. The Company is also exposed to a concentration of risk related to Freedom VCM which totaled $121,622 as of June 30, 2024. The exposure includes the amounts directly related to Freedom VCM from the investment in Freedom VCM that had a fair value of  $63,674 and the Freedom VCM Receivables, Inc. loan receivable of $25,827 at June 30, 2024 and additional exposure from the loan receivable in the amount of $32,121 as described above where the primary security includes Freedom VCM equity interests owned by Brian Kahn.

(e) Advertising Expenses The Company expenses advertising costs, which consist primarily of costs for printed materials, as incurred. Advertising costs totaled $2,736 and $2,969 during the three months ended June 30, 2024 and 2023, respectively, and $5,146 and $5,906 during the six months ended June 30, 2024 and 2023. Advertising expense was included as a component of selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

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(f) Cash and Cash EquivalentsThe Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

(g) Restricted CashAs of June 30, 2024 and December 31, 2023, restricted cash included $1,728 and $1,875, respectively, primarily consisting of cash collateral for leases.Cash, cash equivalents and restricted cash consist of the following:June 30,2024December 31,2023Cash and cash equivalents$236,895 $231,964 Restricted cash1,728 1,875 Total cash, cash equivalents and restricted cash$238,623 $233,839 

(h) Loans ReceivableUnder Accounting Standards Codification (“