Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 86

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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30,499,931 29,961,068 30,281,324 28,933,546     Basic net (loss) income per common share:Continuing operations$(4.97)$(3.30)$(21.50)$(1.61)Discontinued operations(4.42)0.77 (4.03)1.05 Basic (loss) income per common share$(9.39)$(2.53)$(25.53)$(0.56)Diluted net (loss) income per common share:Continuing operations$(4.97)$(3.30)$(21.50)$(1.61)Discontinued operations(4.42)0.77 (4.03)1.05 Diluted (loss) income per common share$(9.39)$(2.53)$(25.53)$(0.56)

54

NOTE 17 — COMMITMENTS AND CONTINGENCIES

(a) Legal MattersThe Company is subject to certain legal and other claims that arise in the ordinary course of its business. In particular, the Company and its subsidiaries are named in and subject to various proceedings and claims arising primarily from the Company’s securities business activities, including lawsuits, arbitration claims, class actions, and regulatory matters. Some of these claims seek substantial compensatory, punitive, or indeterminate damages. The Company and its subsidiaries are also involved in other reviews, investigations, and proceedings by governmental and self-regulatory organizations regarding the Company’s business, which may result in adverse judgments, settlements, fines, penalties, injunctions, and other relief. In addition to such legal and other claims, reviews, investigations, and proceedings, the Company and its subsidiaries are subject to the risk of unasserted claims, including, among others, as it relates to matters related to Mr. Kahn and our investment in Freedom VCM. For example, in light of Mr. Kahn’s alleged involvement with the alleged misconduct concerning Prophecy Asset Management LP, the Company can provide no assurances that it will not be subject to claims asserting an interest in the Freedom VCM equity interests owned by Mr. Kahn, including those that collateralize the Amended and Restated Note. If a claim were successful, it would diminish the value of the collateral which could impact the carrying value of the loan. If such claims are made, however, the Company believes it has valid defenses from any such claim and any such claim would be without merit.On February 14