Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 378

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 8
Chunk 378
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 that it had temporarily suspended dividends on its Series B Preferred Stock. Unpaid dividends will accrue until paid in full. 

NOTE 20 — NET CAPITAL REQUIREMENTS

BRS and B. Riley Wealth Management (“BRWM”), the Company’s broker-dealer subsidiaries, are registered with the SEC as broker-dealers and members of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Company’s broker-dealer subsidiaries are subject to SEC Uniform Net Capital Rule (Rule 15c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As such, they are subject to the minimum net capital requirements promulgated by the SEC. As of June 30, 2025, BRS had net capital of $55,529, which was $52,028 in excess of required minimum net capital of $3,501; and BRWM had net capital of $6,763, which was $5,045 in excess of required minimum net capital of $1,718.

As of December 31, 2024, BRS had net capital of $69,197, which was $65,420 in excess of its required minimum net capital of $3,777; and BRWM had net capital of $16,384, which was $14,832 in excess of its required minimum net capital of $1,552. 

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NOTE 21 — RELATED PARTY TRANSACTIONS

The Company provides asset management and placement agent services to unconsolidated funds affiliated with the Company (the “Funds”). In connection with these services, the Funds may bear certain operating costs and expenses which are initially paid by the Company and subsequently reimbursed by the Funds. Management fees from the Funds during the three and six months ended June 30, 2024 totaled $28 and $143, respectively. There were no management fees from the Funds during 2025.As of June 30, 2025 and December 31, 2024, amounts due from related parties were $185 and $189, respectively, of which $41, was due from the Funds for management fees and other operating expenses at December 31, 2024. As of June 30, 2025 and December 31, 2024, amounts due to related parties were $1,198 and $3,404, respectively, of which $1,198 and $2,764