Company: RILYN
Filing Date: 2025-04-04
Form Type: 8-K
Source: 0001213900-25-029055
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Company: B. Riley Financial, Inc.
Filing Date: 2025-04-04
Form: 8-K
Item: Item 2.06
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Item 2.06 Material Impairments.

B. Riley Financial, Inc. (the “ Company”)
previously disclosed in its Form 12b-25 (the “12b-25”) filed with the Securities and Exchange Commission on March 18, 2025
that the Company estimated at that time impairment charges to goodwill and other intangibles of $73 million to $79 million for the quarter
ended December 31, 2024. These estimated impairment charges primarily related to Nogin Commerce, LLC (“ Nogin”), an
indirect subsidiary of the Company. Nogin has experienced challenges in executing its growth plans which has impacted current and
projected operating results. In performing the annual impairment testing for the year ended December 31, 2024, these factors resulted
in the conclusion that goodwill and other intangible assets of Nogin are impaired.

In connection with the preparation of its annual
financial statements to be included in its Annual Report on Form 10-K for the year ended December 31, 2024, the Company based on the factors
noted above concluded that goodwill and other intangible assets of Nogin were impaired and the charges are estimated to be approximately
$68 million to $74 million.

On March 31, 2025, Nogin signed a Deed of Assignment for the Benefit of Creditors, pursuant to which (i) Nogin transferred its assets
to an assignee for the benefit of Nogin’s creditors, and (ii) assignee may, among other things, sell or dispose of such assets and
settle all claims against Nogin. The Company will no longer control or own the assets of Nogin which were approximately $9 million
at December 31, 2024 and its results of operations will no longer be reported in the Company’s financial statements after March
31, 2025.

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued
Listing Rule or Standard; Transfer of Listing.

On April 3, 2025, the Company received a notice
(the “ Notice”) from the Nasdaq Stock Market LLC (“ Nasdaq”), which indicated that, as a result of the Company’s
delay in filing its Annual Report on Form 10-K for the year ended December 31, 2024 (the “ Annual Report”), the Company was
not in compliance with Nasdaq Listing Rule 5250(c)(1) (the