Company: RILYN
Filing Date: 2025-01-14
Form Type: 10-Q
Source: 0001628280-25-001398
Chunk: 329

Company: B. Riley Financial, Inc.
Filing Date: 2025-01-14
Form: 10-Q
Item: Part I, Item 8
Chunk 329
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 and results of operations.

NOTE 3 — ACQUISITIONS

2024 AcquisitionsOn May 3, 2024, one of the Company’s wholly owned subsidiaries completed the acquisition of Nogin for a total purchase consideration of approximately $56,370, which consisted of $37,700 in DIP financing (see Note 2(h)) and an additional $18,670 in cash consideration. To fund the $18,670 in cash consideration, contemporaneous with the closing, the acquired company issued $15,000 of convertible debt. In accordance with ASC 805, the Company used the acquisition method of accounting for this acquisition. Goodwill of $56,028 and other intangible assets of $17,350 were recorded as a result of the acquisition. The acquisition complements the Company's principal investments strategy and offers potential growth to the Company's portfolio of principal investments. The assets and liabilities of Nogin, both tangible and intangible, were recorded at their estimated fair values as of the May 3, 2024 acquisition date. Acquisition related costs, such as legal, accounting, valuation and other professional fees related to the acquisition of Nogin, were charged against earnings in the amount of $2,276 and included in selling, general and administrative expenses in the condensed consolidated statements of operations for the three and six months ended June 30, 2024. Nogin goodwill recognized subsequent to the acquisition will be non-deductible for tax purposes.The fair value of acquisition consideration and preliminary purchase price allocation was as follows:

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Consideration paid:Cash$18,670 Credit bid - Settlement of DIP Facility37,700 Total Consideration$56,370 Assets acquired and liabilities assumed:Cash and cash equivalents$604 Accounts receivable421 Prepaid and other assets6,826 Operating lease right-of-use assets740 Property and equipment400 Other intangible assets17,350 Deferred income taxes 227 Accounts payable(9,731)Accrued expenses and other liabilities(10,309)Deferred revenue(95)Operating lease liabilities(740)Note payable(700)Net tangible assets acquired and assumed4,993 Goodwill56,028 Noncontrolling interest(4,651)Total$56,370 The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:CategoryUseful lifeFair ValueCustomer relationships9 Years$10,300 Internally developed software and other