Company: RILY
Filing Date: 2025-12-15
Form Type: 10-Q
Source: 0001464790-25-000029
Chunk: 91

Company: B. Riley Financial, Inc.
Filing Date: 2025-12-15
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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5 and 2024. The Company also has $3,144 and $3,387 of unbilled receivables included in prepaid expenses and other assets as of June 30, 2025 and December 31, 2024, respectively. The Company’s deferred revenue primarily relates to retainer and milestone fees received from corporate finance and investment banking advisory engagements, asset management agreements, and subscription services where the performance obligation has not yet been satisfied. Deferred revenue as of June 30, 2025 and December 31, 2024 was $53,499 and $58,148, respectively. The Company expects to recognize the deferred revenue of $53,499 as of June 30, 2025 as service and fee revenues when the performance obligation is met during the years ended December 31, 2025 (remaining six months), 2026, 2027, 2028 and 2029 in the amount of $35,160, $8,597, $4,357, $1,879, and $1,103, respectively. The Company expects to recognize the deferred revenue of $2,403 after December 31, 2029.During the three months ended June 30, 2025 and 2024, the Company recognized revenue of $7,792 and $9,183, respectively, that was recorded as deferred revenue at the beginning of the respective year. During the six months ended June 30, 2025 and 2024, the Company recognized revenue of $25,033 and $29,725, respectively, that was recorded as deferred revenue at the beginning of the respective year. 

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Contract CostsContract costs include: (1) costs to fulfill contracts associated with corporate finance and investment banking engagements are capitalized where the revenue is recognized at a point in time and the costs are determined to be recoverable and; (2) commissions paid to obtain magicJack contracts which are recognized ratably over the contract term and third party support costs for magicJack and related equipment purchased by customers which are recognized ratably over the service period.The capitalized costs to fulfill a contract were $5,170 and $5,694 as of June 30, 2025 and December 31, 2024, respectively, and are recorded in the “Prepaid expenses and other assets” line item in the unaudited condensed consolidated balance sheets. For the three months ended June 30, 2025 and 2024, the Company recognized expenses