Company: RILYN
Filing Date: 2025-01-14
Form Type: 10-Q
Source: 0001628280-25-001398
Chunk: 244

Company: B. Riley Financial, Inc.
Filing Date: 2025-01-14
Form: 10-Q
Item: Part I, Item 2
Chunk 244
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 maximizing the income that we receive from investments without significantly increasing risk. To achieve these objectives, our investments allow us to maintain a portfolio of cash equivalents, short-term investments through a variety of securities owned that primarily includes common stocks, loans receivable, and investments in partnership interests. 

Our cash and cash equivalents through June 30, 2024 included amounts in bank checking and liquid money market accounts. We may also be exposed to interest rate risk through trading activities in convertible and fixed income securities as well as U.S. Treasury securities, however, based on our daily monitoring of this risk, we believe we currently have limited exposure to interest rate risk in these activities.

Foreign Currency Risk 

The majority of our operating activities are conducted in U.S. dollars. Revenues generated from our foreign subsidiaries totaled $80.5 million and $86.9 million during the six months ended June 30, 2024 and 2023, respectively, or 16.4%  and 10.4% of our total revenues of $491.4 million and $838.4 million. The financial statements of our foreign subsidiaries are translated into U.S. dollars at period-end rates, with the exception of revenues, costs, and expenses, which are translated at average rates during the reporting period. We include gains and losses resulting from foreign currency transactions in income, while we exclude those resulting from translation of financial statements from income and include them as a component of accumulated other comprehensive income (loss). Transaction gains (losses), which were included in our condensed consolidated statements of operations, amounted to a gain of $3.0 million and loss of $0.6 million during the six months ended June 30, 2024 and 2023, respectively. We may be exposed to foreign currency risk; however, our operating results during the six months ended June 30, 2024 and 2023, included $80.5 million and $86.9 million of revenues, respectively, and $11.9 million and $17.2 million of operating expenses from our foreign subsidiaries, respectively, and a 10% appreciation or depreciation of the U.S. dollar relative to the local currency exchange rates would result in an approximately $1.1 million and $0.1 million change in our operating income during the six months ended June 30, 2024 and 2023, respectively.

Item 4. Controls and Procedures. 

Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure