Company: RILYN
Filing Date: 2025-02-21
Form Type: 10-Q
Source: 0001628280-25-007082
Chunk: 18

Company: B. Riley Financial, Inc.
Filing Date: 2025-02-21
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 2024 and December 31, 2023, respectively. At the time of origination, the Company's loans are collateralized by the assets of borrowers and other pledged collateral and may have guarantees to provide for protection of the payments due on loans receivable. During the three months ended September 30, 2024 and 2023, the Company recorded net unrealized losses of $73,360 and $859, respectively, and net unrealized losses of $267,713 and net unrealized gains of $51,807 during the nine months ended September 30, 2024 and 2023, respectively, on loans receivable, at fair value, which is included in fair value adjustments on loans on the condensed consolidated statements of operations. Loans receivable, at fair value on non-accrual and 90 days or greater past due was $67,274 and $41,236 as of September 30, 2024 and December 31, 2023, respectively, which represented approximately 44.3% and 7.7% of total loans receivable, at fair value as of September 30, 2024 and December 31, 2023, respectively. The principal balance of loans receivable on non-accrual and 90 days or greater past due was $322,792 and $43,326 as of September 30, 2024 and December 31, 2023. Interest income for loans on non-accrual and/or 90 days or greater past due is recognized separately from changes in fair value adjustments on loans on the condensed consolidated statements of operations. The amount of gains or (losses) included in earnings attributable to changes in instrument – specific credit risk was $(71,746) and $(759) during the three months ended September 30, 2024 and 2023, respectively, and $(259,163) and $45,350 during the nine months ended September 30, 2024 and 2023, respectively. The gains or losses attributable to changes in instrument – specific risk was determined by management based on an estimate of the fair value change during the period specific to each loan receivable.The Company may periodically provide limited guarantees to third parties for loans that are made to investment banking and lending clients. As of September 30, 2024, the Company has outstanding limited guarantee arrangements with respect to Babcock & Wilcox Enterprises, Inc. (“B&W”) as further described in Note 17(b