# EDGAR Filing Document

**Accession Number:** 0001464790
**File Stem:** 0001213900-23-013670
**Filing Date:** 2023-2
**Character Count:** 48135
**Document Hash:** d0825d481ad77b6925c0367d9b20e48f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-013670.hdr.sgml**: 20230222

**ACCESSION NUMBER**: 0001213900-23-013670

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 28

**CONFORMED PERIOD OF REPORT**: 20230222

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230222

**DATE AS OF CHANGE**: 20230222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** B. Riley Financial, Inc.
- **CENTRAL INDEX KEY:** 0001464790
- **STANDARD INDUSTRIAL CLASSIFICATION:** INVESTMENT ADVICE [6282]
- **IRS NUMBER:** 270223495
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37503
- **FILM NUMBER:** 23653201

**BUSINESS ADDRESS:**
- **STREET 1:** 11100 SANTA MONICA BLVD
- **STREET 2:** SUITE 800
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90025
- **BUSINESS PHONE:** 818-884-3737

**MAIL ADDRESS:**
- **STREET 1:** 11100 SANTA MONICA BLVD
- **STREET 2:** SUITE 800
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90025

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Great American Group, Inc.
- **DATE OF NAME CHANGE:** 20090522

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 22, 2023**

**B. RILEY FINANCIAL, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-37503** | **27-0223495** |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number) | (IRS Employer<br> Identification No.) |

---

**11100 Santa Monica Blvd., Suite 800**

**Los Angeles, CA 90025**

**<u>310 - 966-1444</u>**

(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.0001 per share | RILY | Nasdaq Global Market |
| Depositary Shares, each representing a 1/1000th fractional interest in a 6.875% share of Series A Cumulative Perpetual Preferred Stock | RILYP | Nasdaq Global Market |
| Depositary Shares, each representing a 1/1000th fractional interest in a 7.375% share of Series B Cumulative Perpetual Preferred Stock | RILYL | Nasdaq Global Market |
| 6.50% Senior Notes due 2026 | RILYN | Nasdaq Global Market |
| 6.375% Senior Notes due 2025 | RILYM | Nasdaq Global Market |
| 6.75% Senior Notes due 2024 | RILYO | Nasdaq Global Market |
| 6.00% Senior Notes due 2028 | RILYT | Nasdaq Global Market |
| 5.50% Senior Notes due 2026 | RILYK | Nasdaq Global Market |
| 5.25% Senior Notes due 2028 | RILYZ | Nasdaq Global Market |
| 5.00% Senior Notes due 2026 | RILYG | Nasdaq Global Market |

---

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On February 22, 2023, B. Riley Financial, Inc. (the "Company") issued a press release reporting its financial results for the fiscal quarter and year ended December 31, 2022. A copy of the press release is attached hereto as Exhibit 99.1.

**Item 7.01. Regulation FD Disclosure.**

Additionally, on February 22, 2023, in conjunction with the press release described above, the Company posted to its website at https://ir.brileyfin.com/events-and-presentations, certain supplemental financial information for the fiscal quarter ended December 31, 2022 and certain prior periods. A copy of the information is attached hereto as Exhibit 99.2.

The information set forth in this Current Report, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section. The information in this Current Report, including Exhibits 99.1 and 99.2 attached hereto, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing to this Current Report.

**Item 9.01. Financial Statements and Exhibits.**

**(d) Exhibits**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Earnings Release dated February 22, 2023](ea174066ex99-1_briley.htm) |
| 99.2 | [Fourth Quarter 2022 Supplemental Financial Data dated February 22, 2023](ea174066ex99-2_briley.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| February 22, 2023 | **B. RILEY FINANCIAL, INC.** | **B. RILEY FINANCIAL, INC.** | **B. RILEY FINANCIAL, INC.** |
|  | By: | /s/ Phillip J. Ahn | /s/ Phillip J. Ahn |
|  |  | Name: | Phillip J. Ahn |
|  |  | Title: | Chief Financial Officer and <br> Chief Operating Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**B. Riley Financial Reports Fourth Quarter and Full Year 2022 Results;<br> Declares $1.00 Dividend**

 

*Q4 2022 GAAP Net Loss of ($59.4 million)*

*Q4 2022 Total Revenues of $326.8 million*

*Q4 2022 Operating Revenues of $450.4 million*

*Q4 2022 Operating Adjusted EBITDA of $101.8 million, had guided to $90-100 million*

*Q4 2022 Investment loss of ($123.5 million), had guided to ($125-$150 million)*

*Declares Quarterly Dividend of $1.00 per common share*

 

**LOS ANGELES, February 22, 2023** – B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified financial services platform, today released results for the three and twelve month periods ending December 31, 2022.

**Q4 and FY 2022 Summary and Highlights**

▪ Total revenues were $326.8 million for the quarter
and $915.5 million for the year.

▪ Operating revenues increased to $450.4 million
for the quarter and $1.3 billion for the year.

▪ Net losses of ($59.4 million) for the quarter and ($167.8 million) for the
year were primarily driven by softness in small-cap markets throughout 2022 and related impact on investments.

▪ Operating adjusted EBITDA was $101.8 million
for the quarter and $366.5 million for the year.

▪ Investment losses of ($123.5 million) for the
quarter and ($403.7 million) for the year primarily reflected mark-to-market losses in the Company's equities portfolio.

▪ Completed multiple acquisitions during 2022,
which are expected to enhance uncorrelated revenues and cash flow in 2023 and beyond.

**Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial**, commented: "Despite a challenging Capital Markets environment, we are proud to have delivered the second-best year of Operating Adjusted EBITDA in our firm's history. This achievement is a testament to the resiliency and diversification our platform. Capital Markets began to improve late in Q4 and this momentum has continued into Q1, which has us optimistic as our clients resume opportunistically accessing capital. We are also beginning to see increased activity in our Liquidation and Real Estate practices that are benefitting from pockets of distress."

Riley continued: "While our investments marks are not immune to broader market fluctuations, we believe the portfolio is well-positioned heading into 2023. Further, we continue to find attractive opportunities to deploy our excess liquidity in ways that competitively advantage our clients. We appreciate the trust our clients and colleagues place with us, and we look forward to continuing to execute our strategy to create value for all B. Riley stakeholders."

**Tom Kelleher, Co-Chief Executive Officer of B. Riley Financial**, added: "Over the past year, we have focused on supporting our clients by helping them deliver on their strategic business initiatives while navigating a liquidity restrained environment. At the same time, we onboarded and integrated several new businesses, and we expect we will continue to grow our platform both organically and through acquisitions. We look forward to expanding operational efficiencies through 2023 and making further enhancements to strengthen our position long term."

**Declaration of Common Dividend**

The Company has declared a regular quarterly cash dividend of $1.00 per common share payable on or about March 23 to common stockholders of record as of March 10. Upon this payment, the Company will have returned $4.00 per share in cash dividends, totaling approximately $113 million, to common shareholders in fiscal year 2022.

www.brileyfin.com \| NASDAQ: RILY 1

![](ex99-1_002.jpg)

**Financial Summary**

The financial results included in this press release are preliminary and pending final review. Financial results will not be final until B. Riley Financial files its Annual Report on Form 10-K for the period. Information about B. Riley Financial's use of non-GAAP financial measures is provided below under "Use of Non-GAAP Financial Measures."

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br> December 31,** | **Three Months Ended<br> December 31,** | **Twelve Months Ended<br> December 31,** | **Twelve Months Ended<br> December 31,** |
| <br>*(Dollars in thousands, except for share data)* | **2022** | **2021** | **2022** | **2021** |
| Net (loss) income available to common shareholders | $(59447) | $62182 | $(167837) | $437597 |
| &nbsp;&nbsp;&nbsp;Basic (loss) income per common share | $(2.08) | $2.26 | $(5.95) | $15.99 |
| &nbsp;&nbsp;&nbsp;Diluted (loss) income per common share | $(2.08) | $2.08 | $(5.95) | $15.09 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br> December 31,** | **Three Months Ended<br> December 31,** | **Twelve Months Ended<br> December 31,** | **Twelve Months Ended<br> December 31,** |
| <br>*(Dollars in thousands)* | **2022** | **2021** | **2022** | **2021** |
| Operating Revenues <sup>(2)</sup> | $450357 | $353252 | $1319172 | $1353885 |
| Investment (Loss) Gains <sup>(4)</sup> | (123544) | 68858 | (403707) | 386676 |
| &nbsp;&nbsp;&nbsp;**Total Revenues** | $**326813** | $**422110** | $**915465** | $**1740561** |
| Operating Adjusted EBITDA <sup>(3)</sup> | $101807 | $106097 | $366458 | $422029 |
| Investment Adjusted EBITDA <sup>(5)</sup> | (115847) | 31928 | (334176) | 340465 |
| &nbsp;&nbsp;&nbsp;**Total Adjusted EBITDA <sup>(1)</sup>** | $**(14040)** | $**138025** | $**32282** | $**762494** |

---

*For the fourth quarter ended December 31, 2022:*

 

▪ Total revenues were $326.8 million compared to
$422.1 million for the fourth quarter ended December 31, 2021.

▪ Net loss available to common shareholders was
($59.4 million), or ($2.08) diluted loss per share, compared to net income of $62.2 million, or $2.08 diluted earnings per share (EPS),
for the prior year period.

▪ Investment loss<sup>(4)</sup> of ($123.5 million)
primarily reflected mark-to-market declines in the Company's equities portfolio.

▪ Operating revenues <sup>(2)</sup> increased to
$450.4 million for the quarter, up from $353.3 million for the prior year period.

▪ Operating Adjusted EBITDA <sup>(3)</sup> of $101.8
million compared to $106.1 million for the prior year period.

*For the full year ended December 31, 2022:*

 

▪ Total revenues were $915.5 million compared to
$1.7 billion for the full year ended December 31, 2021.

▪ Net loss applicable to common shareholders was
($167.8 million), or ($5.95) diluted loss per share, compared to net income of $437.6 million, or $15.09 diluted earnings per share.

▪ Operating revenues<sup>(2)</sup> remained relatively
flat at $1.3 billion compared to the prior year period despite softness in small-cap markets throughout 2022 and a decrease in investment
banking and underwriting fees.

▪ Operating adjusted EBITDA<sup>(3)</sup> of $366.5
million compared to $422.0 million for the prior year period.

▪ Investment loss<sup>(4)</sup> of ($403.7 million)
was primarily due to broad market declines during 2022 which resulted in trading losses of ($349.4 million) related to the valuation of
public and private securities in our investment portfolio.

www.brileyfin.com \| NASDAQ: RILY 2

![](ex99-1_002.jpg)

**Balance Sheet Highlights**

As of December 31, 2022, the Company had $268.6 million of cash and cash equivalents, $1.1 billion in net securities and other investments owned, and $701.7 million in loans receivable. Of this total, non-accrual loans receivable accounted for approximately $7 million of loans receivable, at fair value. Total cash and investments <sup>(6)</sup> was approximately $2.15 billion at year-end.

Total debt was approximately $2.45 billion at December 31, 2022 including $1.7 billion of senior notes due at various dates ranging from May 31, 2024 to August 31, 2028 with interest rates ranging from 5.00% to 6.75%; and approximately $700 million from term loans and credit facilities. The Company is in compliance with all of its debt covenants.

**Segment Reclassification**

During the fourth quarter of 2022, the Company realigned its segment reporting structure to reflect organizational changes. The *Consumer* segment includes the previously reported *Brands* segment and Targus, which the Company acquired in the fourth quarter of 2022. The *Consumer* segment also includes revenues from equity investments in the Hurley and Justice brands, which were previously reported in the *Capital Markets* segment. The Company has also realigned its previously reported *Principal Investments - Communications and Other* segment into two separate segments: *Communications segment* and *All Other segment*. The Company has recast its segment presentation in the corresponding unaudited Segment Financial Information tables for all periods presented.

**Segment Financial Summary**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Operating <br> Revenues <sup>(2)</sup>** | **Operating <br> Revenues <sup>(2)</sup>** | **Investment <br> Gains (Loss) <sup>(4)</sup>** | **Investment <br> Gains (Loss) <sup>(4)</sup>** | **Total <br> Segment Revenue** | **Total <br> Segment Revenue** |
| | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** |
| <br>*(Dollars in thousands)* | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| Capital Markets | $133351 | $171645 | $(154455) | $24623 | $(21104) | $196268 |
| Wealth Management | 45772 | 103803 | 445 | 1140 | 46217 | 104943 |
| Auction and Liquidation | 59778 | 5718 |  |  | 59778 | 5718 |
| Financial Consulting | 25427 | 27877 |  |  | 25427 | 27877 |
| Communications | 87944 | 33872 |  |  | 87944 | 33872 |
| Consumer | 89670 | 10337 | 30466 | 43095 | 120136 | 53432 |
| All Other | 8415 |  |  |  | 8415 |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Segment Operating <br> Income (Loss) <sup>(7)</sup>** | **Segment Operating <br> Income (Loss) <sup>(7)</sup>** | **Investment <br> Income (Loss) <sup>(5)</sup>** | **Investment <br> Income (Loss) <sup>(5)</sup>** | **Total Segment <br> Income (Loss)** | **Total Segment <br> Income (Loss)** |
| | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** | **Three Months Ended <br> December 31,** |
| <br>*(Dollars in thousands)* | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| Capital Markets | $50525 | $81913 | $(151940) | $(12307) | $(101415) | $69606 |
| Wealth Management | (7859) | 4916 | 445 | 1140 | (7414) | 6056 |
| Auction and Liquidation | 12372 | (2706) |  |  | 12372 | (2706) |
| Financial Consulting | 4412 | 6628 |  |  | 4412 | 6628 |
| Communications | 11205 | 5846 |  |  | 11205 | 5846 |
| Consumer | 18935 | 8895 | 30466 | 43095 | 49401 | 51990 |
| All Other | (1931) |  |  |  | (1931) |  |

---

www.brileyfin.com \| NASDAQ: RILY 3

![](ex99-1_002.jpg)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Operating <br> Revenues <sup>(2)</sup>** | **Operating <br> Revenues <sup>(2)</sup>** | **Investment <br> Gains (Loss) <sup>(4)</sup>** | **Investment <br> Gains (Loss) <sup>(4)</sup>** | **Total <br> Segment Revenue** | **Total <br> Segment Revenue** |
| | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** |
| <br>*(Dollars in thousands)* | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| Capital Markets | $541597 | $682190 | $(453690) | $318274 | $87907 | $1000464 |
| Wealth Management | 230735 | 374361 | 3522 | 7623 | 234257 | 381984 |
| Auction and Liquidation | 74096 | 73517 |  |  | 74096 | 73517 |
| Financial Consulting | 98508 | 94312 |  |  | 98508 | 94312 |
| Communications | 235655 | 93347 |  |  | 235655 | 93347 |
| Consumer | 124784 | 36158 | 46461 | 60779 | 171245 | 96937 |
| All Other | 13797 |  |  |  | 13797 |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Segment Operating <br> Income (Loss) <sup>(7)</sup>** | **Segment Operating <br> Income (Loss) <sup>(7)</sup>** | **Investment <br> Income (Loss) <sup>(5)</sup>** | **Investment <br> Income (Loss) <sup>(5)</sup>** | **Total Segment <br> Income (Loss)** | **Total Segment <br> Income (Loss)** |
| | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** | **Twelve Months Ended <br> December 31,** |
| <br>*(Dollars in thousands)* | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| Capital Markets | $232083 | $328179 | $(390170) | $272063 | $(158087) | $600242 |
| Wealth Management | (37842) | 8311 | 3522 | 7623 | (34320) | 15934 |
| Auction and Liquidation | 12600 | 8054 |  |  | 12600 | 8054 |
| Financial Consulting | 16312 | 16894 |  |  | 16312 | 16894 |
| Communications | 30320 | 27158 |  |  | 30320 | 27158 |
| Consumer | 49885 | 30235 | 46461 | 60779 | 96346 | 91014 |
| All Other | (2649) |  |  |  | (2649) |  |

---

▪  ***Capital Markets*** *:* Segment
revenues were $87.9 million for the year. Excluding investment loss<sup>(4)</sup> of ($453.7 million), *Capital Markets* segment
operating revenues<sup>(2)</sup> were $541.6 million. Lower levels of investment banking and underwriting activity were partially offset
by increases in revenues from asset management.

Interest income from loans and securities lending increased to $61.9 million for the quarter and $240.8 million for the year. Interest income from securities lending increased to $27.5 million for the quarter and $83.1 million for the year. Interest income from loans increased to $157.7 million.

▪  ***Wealth Management:*** Segment revenues
were $234.3 million for the year. The decrease in revenues related to the strategic exit of several brokers and certain businesses previously
affiliated with National Securities, which the Company acquired in the first quarter of 2021, in addition to challenging market conditions
that resulted in reduced client activity throughout 2022. Wealth management assets under management were over $23 billion as of December
31, 2022.

▪  ***Auction and Liquidation:*** Segment
revenues increased to $74.1 million for the year driven by an increase in retail liquidation assignments during the fourth quarter of
2022. Segment income was $12.6 million for the year. Results for this segment vary from quarter-to-quarter and year-to-year due to the
episodic impact of large retail liquidation engagements.

▪  ***Financial Consulting:*** Segment revenues
were $98.5 million for the year related to fees earned from providing bankruptcy, financial advisory, forensic accounting, real estate,
valuation and appraisal services. Segment income was $16.3 million for the year. These businesses have continued to generate stable revenues
and profits to our platform.

www.brileyfin.com \| NASDAQ: RILY 4

![](ex99-1_002.jpg)

▪  ***Communications:*** Segment revenues
increased 152% to $235.7 million with segment income of $30.3 million for the year. The significant increase was primarily driven by the
Company's acquisition of Marconi Wireless in the fourth quarter of 2021 the Lingo acquisition in the second quarter of 2022, and
Lingo's acquisition of BullsEye Telecom in the third quarter of 2022. This segment also includes the Company's United Online
and magicJack businesses.

▪  ***Consumer:*** Segment revenues increased
77% to $171.2 million with segment income of $96.3 million for the year. The significant increase in revenues was primarily due to the
acquisition of Targus in the fourth quarter of 2022, which also contributed to the increase in segment income of $5.3 million to $96.3
million from $91.0 million in the prior year. Segment revenues also includes revenue related to the fair value of our investment in the
Hurley and Justice brands and dividend income received from these investments, which totaled $28.0 million for the year. This segment
also includes revenues related to the licensing of trademarks for our six brands portfolio.

**Supplemental Financial Data**

Additional details related to operating results and investment performance can be found in the Fourth Quarter 2022 Financial Supplement on B. Riley Financial's investor relations website.

**Conference Call Details**

Management will host an investor call to discuss its fourth quarter results today, Wednesday, February 22, 2023 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). Investors may access the live broadcast and archived recording via ir.brileyfin.com.

**About B. Riley Financial**

B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end, collaborative financial services across investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. B. Riley opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. For more information, please visit www.brileyfin.com.

**Footnotes**

(See "Note Regarding Use of Non-GAAP Financial Measures" for further discussion of these non-GAAP terms. For a reconciliation of adjusted EBITDA, operating revenue, operating adjusted EBITDA, investment adjusted EBITDA, and total cash and investments, to the comparable GAAP financial measures, please see the Appendix hereto.)

(1) Adjusted EBITDA includes earnings before interest, taxes,
depreciation, amortization, restructuring charge, share-based payments, gain on extinguishment of loans, impairment of tradenames, and
transaction related and other costs.

(2) Operating revenue is defined as the sum of revenues from
services and fees, interest income - loans and securities lending, and sale of goods.

(3) Operating adjusted EBITDA is defined as adjusted EBITDA excluding
trading income (losses) and fair value adjustments on loans and other investment related expenses.

(4) Investment gains (loss) is defined as trading income (losses)
and fair value adjustments on loans.

(5) Investment adjusted EBITDA and investment income (loss) are
defined as trading income (losses) and fair value adjustments on loans, less other investment related expenses.

(6) Total cash and investments is defined as the sum of cash
and cash equivalents, restricted cash, due from clearing brokers net of due to clearing brokers, securities and other investments owned,
at fair value net of (i) securities sold not yet purchased and (ii) noncontrolling interest related to investments, advances against
customer contracts, loans receivable, at fair value net of loan participations sold, and other investments reported in prepaid and other
assets.

(7) Segment operating income (loss) is defined as segment income
(loss) excluding trading income (losses) and fair value adjustments on loans and other investment related operating expenses.

www.brileyfin.com \| NASDAQ: RILY 5

**Note Regarding Use of Non-GAAP Financial Measures**

Certain of the information set forth herein, including operating revenues, adjusted EBITDA, operating adjusted EBITDA, and investment adjusted EBITDA, may be considered non-GAAP financial measures. B. Riley Financial believes this information is useful to investors because it provides a basis for measuring the Company's available capital resources, the operating performance of its business and its revenues and cash flow, (i) excluding in the case of operating revenues, trading income (losses) and fair value adjustments on loans, (ii) excluding in the case of adjusted EBITDA, net interest expense, provisions for or benefit from income taxes, depreciation, amortization, fair value adjustment, restructuring charge, gain on extinguishment of loans, impairment of trade names, stock-based compensation and transaction and other expenses, (iii) excluding in the case of operating adjusted EBITDA, the aforementioned adjustments for adjusted EBITDA as well as trading income (losses) and fair value adjustments on loans, and other investment related expenses, (iv) including in the case of investment adjusted EBITDA, trading income (losses) and fair value adjustments on loans, net of other investment related expenses, and (v) including in the case of total cash and investments, cash and cash equivalents, restricted cash, due from clearing brokers net of due to clearing brokers, securities and other investments owned, at fair value net of (a) securities sold not yet purchased and (b) noncontrolling interest related to investments, advances against customer contracts, loans receivable, at fair value net of loan participations sold, and other investments reported in prepaid and other assets, that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles ("GAAP"). In addition, the Company's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company's operating performance, management compensation, capital resources, and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies.

**Forward-Looking Statements**

Statements in this press release that are not descriptions of historical facts are forward-looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward-looking statements include, but are not limited to, statements regarding our excitement and the expected growth of our business segments. Factors that could cause such actual results to differ materially from those contemplated or implied by such forward-looking statements include, without limitation, the risks described from time to time in B. Riley Financial, Inc.'s periodic filings with the SEC, including, without limitation, the risks described in B. Riley Financial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2021 and in our Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30, and September 30, 2022 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). Additional information will be set forth in our Annual Report on Form 10-K for the year ended December 31, 2022. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and B. Riley Financial undertakes no duty to update this information.

www.brileyfin.com \| NASDAQ: RILY 6

**B. RILEY FINANCIAL, INC.**

**Consolidated Balance Sheets**

**(Dollars in thousands, except par value)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  | **(Unaudited)** | |
| &nbsp;&nbsp;&nbsp;**Assets** |  |  |
| Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $268618 | $278933 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 2308 | 927 |
| &nbsp;&nbsp;&nbsp;Due from clearing brokers | 48737 | 29657 |
| &nbsp;&nbsp;&nbsp;Securities and other investments owned, at fair value | 1129268 | 1532095 |
| &nbsp;&nbsp;&nbsp;Securities borrowed | 2343327 | 2090966 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 149110 | 49673 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 1081 | 2074 |
| &nbsp;&nbsp;&nbsp;Loans receivable, at fair value (includes $98,729 and $167,744 from related parties as of December 31, 2022 and December 31, 2021, respectively) | 701652 | 873186 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 460696 | 463502 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 88593 | 56969 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 27141 | 12870 |
| &nbsp;&nbsp;&nbsp;Goodwill | 512595 | 250568 |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | 374098 | 207651 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 3978 | 2848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $6111202 | $5851919 |
| &nbsp;&nbsp;&nbsp;**Liabilities and Equity** |  |  |
| Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $81384 | $6326 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 322974 | 343750 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 85441 | 69507 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 29548 | 93055 |
| &nbsp;&nbsp;&nbsp;Due to related parties and partners | 2210 |  |
| &nbsp;&nbsp;&nbsp;Due to clearing brokers | 19307 | 69398 |
| &nbsp;&nbsp;&nbsp;Securities sold not yet purchased | 5897 | 28623 |
| &nbsp;&nbsp;&nbsp;Securities loaned | 2334031 | 2088685 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 99124 | 69072 |
| &nbsp;&nbsp;&nbsp;Notes payable | 25263 | 357 |
| &nbsp;&nbsp;&nbsp;Revolving credit facility | 127678 | 80000 |
| &nbsp;&nbsp;&nbsp;Term loans, net | 572079 | 346385 |
| &nbsp;&nbsp;&nbsp;Senior notes payable, net | 1721751 | 1606560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5426687 | 4801718 |
| Commitments and contingencies |  |  |
| Redeemable noncontrolling interests in equity of subsidiaries | 178622 | 345000 |
| B. Riley Financial, Inc. equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,545 and 4,512 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively; liquidation preference of $113,615 and $112,790 as of December 31, 2022 and December 31, 2021, respectively. |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,523,764 and 27,591,028 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively. | 3 | 3 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 494201 | 413486 |
| &nbsp;&nbsp;&nbsp;(Accumulated deficit) Retained earnings | (45220) | 248862 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (2470) | (1080) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total B. Riley Financial, Inc. stockholders' equity | 446514 | 661271 |
| Noncontrolling interests | 59379 | 43930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 505893 | 705201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $6111202 | $5851919 |

---

www.brileyfin.com \| NASDAQ: RILY 7

**B. RILEY FINANCIAL, INC.**

**Consolidated Statements of Operations**

**(Dollars in thousands, except share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Services and fees | $253432 | $315848 | $931497 | $1172957 |
| &nbsp;&nbsp;&nbsp;Trading (losses) income and fair value adjustments on loans | (123544) | 68858 | (403707) | 386676 |
| &nbsp;&nbsp;&nbsp;Interest income - Loans and securities lending | 62545 | 33443 | 245400 | 122723 |
| &nbsp;&nbsp;&nbsp;Sale of goods | 134380 | 3961 | 142275 | 58205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 326813 | 422110 | 915465 | 1740561 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Direct cost of services | 68496 | 12955 | 142455 | 54390 |
| &nbsp;&nbsp;&nbsp;Cost of goods sold | 71313 | 5559 | 78647 | 26953 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 208552 | 270712 | 714614 | 906196 |
| &nbsp;&nbsp;&nbsp;Restructuring charge | 995 |  | 9011 |  |
| &nbsp;&nbsp;&nbsp;Interest expense - Securities lending and loan participations sold | 22738 | 12362 | 66495 | 52631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 372094 | 301588 | 1011222 | 1040170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating (loss) income | (45281) | 120522 | (95757) | 700391 |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 1482 | 54 | 2735 | 229 |
| &nbsp;&nbsp;&nbsp;Change in fair value of financial instruments and other | 460 | (4471) | 10188 | 3796 |
| &nbsp;&nbsp;&nbsp;Income from equity investments | 285 | 1629 | 3570 | 2801 |
| &nbsp;&nbsp;&nbsp;Interest expense | (44399) | (26441) | (141186) | (92455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income before income taxes | (87453) | 91293 | (220450) | 614762 |
| Benefit from (provision for) income taxes | 23998 | (23847) | 63856 | (163960) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income | (63455) | 67446 | (156594) | 450802 |
| Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (6010) | 3274 | 3235 | 5748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income attributable to B. Riley Financial, Inc. | (57445) | 64172 | (159829) | 445054 |
| Preferred stock dividends | 2002 | 1990 | 8008 | 7457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income available to common shareholders | $(59447) | $62182 | $(167837) | $437597 |
| Basic (loss) income per common share | $(2.08) | $2.26 | $(5.95) | $15.99 |
| Diluted (loss) income per common share | $(2.08) | $2.08 | $(5.95) | $15.09 |
| Weighted average basic common shares outstanding | 28545714 | 27569188 | 28188530 | 27366292 |
| Weighted average diluted common shares outstanding | 28545714 | 29840704 | 28188530 | 29005602 |

---

www.brileyfin.com \| NASDAQ: RILY 8

**B. RILEY FINANCIAL, INC.**

**Segment Financial Information**

**(Unaudited)**

**(Dollars in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Capital Markets segment:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues - Services and fees | $71417 | $138202 | $300784 | $559467 |
| &nbsp;&nbsp;&nbsp;Trading (loss) income and fair value adjustments on loans | (154455) | 24623 | (453690) | 318274 |
| &nbsp;&nbsp;&nbsp;Interest income - Loans and securities lending | 61934 | 33443 | 240813 | 122723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | (21104) | 196268 | 87907 | 1000464 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (55351) | (113690) | (171006) | (345455) |
| &nbsp;&nbsp;&nbsp;Interest expense - Securities lending and loan participations sold | (22738) | (12362) | (66495) | (52631) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (2222) | (610) | (8493) | (2136) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment (loss) income | (101415) | 69606 | (158087) | 600242 |
| **Wealth Management segment:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues - Services and fees | 45772 | 103803 | 230735 | 374361 |
| &nbsp;&nbsp;&nbsp;Trading income and fair value adjustments on loans | 445 | 1140 | 3522 | 7623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 46217 | 104943 | 234257 | 381984 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (51696) | (96799) | (258134) | (357130) |
| &nbsp;&nbsp;&nbsp;Restructuring charge | (849) |  | (4955) |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (1086) | (2088) | (5488) | (8920) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment (loss) income | (7414) | 6056 | (34320) | 15934 |
| **Auction and Liquidation segment:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues - Services and fees | 4789 | 4532 | 12581 | 20169 |
| &nbsp;&nbsp;&nbsp;Revenues - Sale of goods | 54378 | 1186 | 56928 | 53348 |
| &nbsp;&nbsp;&nbsp;Interest income - Loans and securities lending | 611 |  | 4587 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 59778 | 5718 | 74096 | 73517 |
| &nbsp;&nbsp;&nbsp;Direct cost of services | (17290) | (2977) | (23920) | (30719) |
| &nbsp;&nbsp;&nbsp;Cost of goods sold | (16658) | (1097) | (17893) | (20675) |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (13458) | (4350) | (19683) | (14069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment income (loss) | 12372 | (2706) | 12600 | 8054 |
| **Financial Consulting segment:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues - Services and fees | 25427 | 27877 | 98508 | 94312 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (20944) | (21166) | (81891) | (77062) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (71) | (83) | (305) | (356) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment income | 4412 | 6628 | 16312 | 16894 |
| **Communications segment** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues - Services and fees | 85763 | 31096 | 228129 | 88490 |
| &nbsp;&nbsp;&nbsp;Revenues - Sale of goods | 2181 | 2776 | 7526 | 4857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 87944 | 33872 | 235655 | 93347 |
| &nbsp;&nbsp;&nbsp;Direct cost of services | (44366) | (9978) | (108686) | (23671) |
| &nbsp;&nbsp;&nbsp;Cost of goods sold | (2493) | (4462) | (8592) | (6278) |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (23368) | (10397) | (64836) | (25493) |
| &nbsp;&nbsp;&nbsp;Restructuring charge | (146) |  | (4056) |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (6366) | (3189) | (19165) | (10747) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment income | 11205 | 5846 | 30320 | 27158 |
| **Consumer segment** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues - Services and fees | 11849 | 10337 | 46963 | 36158 |
| &nbsp;&nbsp;&nbsp;Trading income and fair value adjustments on loans | 30466 | 43095 | 46461 | 60779 |
| &nbsp;&nbsp;&nbsp;Revenues - Sale of goods | 77821 |  | 77821 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 120136 | 53432 | 171245 | 96937 |
| &nbsp;&nbsp;&nbsp;Cost of goods sold | (52162) |  | (52162) |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (16039) | (840) | (18458) | (3178) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (2534) | (602) | (4279) | (2745) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment income | 49401 | 51990 | 96346 | 91014 |
| **All Other segment** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenues - Services and fees | 8415 |  | 13797 |  |
| &nbsp;&nbsp;&nbsp;Direct cost of services | (6840) |  | (9849) |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | (2524) |  | (5159) |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (982) |  | (1438) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment loss | (1931) |  | (2649) |  |
| **Consolidated operating (loss) income from reportable segments** | **(33370)** | **137420** | **(39478)** | **759296** |
| Corporate and other expenses | (11911) | (16898) | (56279) | (58905) |
| Interest income | 1482 | 54 | 2735 | 229 |
| Change in fair value of financial instruments and other | 460 | (4471) | 10188 | 3796 |
| Income on equity investments | 285 | 1629 | 3570 | 2801 |
| Interest expense | (44399) | (26441) | (141186) | (92455) |
| &nbsp;&nbsp;&nbsp;(Loss) income before income taxes | (87453) | 91293 | (220450) | 614762 |
| Benefit from (provision for) income taxes | 23998 | (23847) | 63856 | (163960) |
| &nbsp;&nbsp;&nbsp;Net (loss) income | (63455) | 67446 | (156594) | 450802 |
| Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (6010) | 3274 | 3235 | 5748 |
| &nbsp;&nbsp;&nbsp;Net (loss) income attributable to B. Riley Financial, Inc. | (57445) | 64172 | (159829) | 445054 |
| Preferred stock dividends | 2002 | 1990 | 8008 | 7457 |
| &nbsp;&nbsp;&nbsp;Net (loss) income available to common shareholders | $(59447) | $62182 | $(167837) | $437597 |

---

www.brileyfin.com \| NASDAQ: RILY 9

![](ex99-1_002.jpg)

**B. RILEY FINANCIAL, INC.**

**Adjusted EBITDA and Operating Adjusted EBITDA Reconciliation**

**(Unaudited)**

**(Dollars in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net (loss) income attributable to B. Riley Financial, Inc. | $(57445) | $64172 | $(159829) | $445054 |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;(Benefit from) provision for income taxes | (23998) | 23847 | (63856) | 163960 |
| &nbsp;&nbsp;&nbsp;Interest expense | 44399 | 26441 | 141186 | 92455 |
| &nbsp;&nbsp;&nbsp;Interest income | (1482) | (54) | (2735) | (229) |
| &nbsp;&nbsp;&nbsp;Share based payments | 15312 | 12503 | 61140 | 36011 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 13443 | 6805 | 39969 | 25871 |
| &nbsp;&nbsp;&nbsp;Restructuring charge | 995 |  | 9011 |  |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of loans |  |  | (1102) | (6509) |
| &nbsp;&nbsp;&nbsp;Transactions related costs and other | (5264) | 4311 | 8498 | 5881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total EBITDA Adjustments | 43405 | 73853 | 192111 | 317440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $(14040) | $138025 | $32282 | $762494 |
| Operating EBITDA Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trading losses (income) and fair value adjustments on loans | 123544 | (68858) | 403707 | (386676) |
| &nbsp;&nbsp;&nbsp;Other investment related expenses | (7697) | 36930 | (69531) | 46211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Operating EBITDA Adjustments | 115847 | (31928) | 334176 | (340465) |
| Operating Adjusted EBITDA | $101807 | $106097 | $366458 | $422029 |

---

www.brileyfin.com \| NASDAQ: RILY 10

**B. RILEY FINANCIAL, INC.**

**Adjusted Net Income Reconciliation**

**(Unaudited)**

**(Dollars in thousands, except share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net (loss) income attributable to B. Riley Financial, Inc. | $(57445) | $64172 | $(159829) | $445054 |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share based payments | 15312 | 12503 | 61140 | 36011 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 11146 | 5830 | 34292 | 22006 |
| &nbsp;&nbsp;&nbsp;Restructuring charge | 995 |  | 9011 |  |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of loans |  |  | (1102) | (6509) |
| &nbsp;&nbsp;&nbsp;Transactions related costs and other | (5264) | 4311 | 8498 | 5881 |
| &nbsp;&nbsp;&nbsp;Income tax effect of adjusting entries | (6538) | (6135) | (30131) | (15722) |
| Adjusted net (loss) income attributable to B. Riley Financial, Inc. | $(41794) | $80681 | $(78121) | $486721 |
| Adjusted (loss) income per common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted basic (loss) income per share | $(1.46) | $2.93 | $(2.77) | $17.79 |
| &nbsp;&nbsp;&nbsp;Adjusted diluted (loss) income per share | $(1.46) | $2.70 | $(2.77) | $16.78 |
| Shares used to calculate adjusted basic net income per share | 28545714 | 27569188 | 28188530 | 27366292 |
| Shares used to calculate adjusted diluted net income per share | 28545714 | 29840704 | 28188530 | 29005602 |

---

**# # #**

---

| | |
|:---|:---|
| **Contacts** |  |
| |  |
| *Investors* | *Media* |
| Mike Frank | Jo Anne McCusker |
| ir@brileyfin.com | press@brileyfin.com |
| (212) 409-2424 | (646) 885-5425 |
|  | Source: B. Riley Financial, Inc. |

---

www.brileyfin.com \| NASDAQ: RILY 11

## Exhibit 99.2

**Exhibit 99.2**

![](ex99-2_001.jpg)

![](ex99-2_002.jpg)

![](ex99-2_003.jpg)

![](ex99-2_004.jpg)

![](ex99-2_005.jpg)

![](ex99-2_006.jpg)

![](ex99-2_007.jpg)

![](ex99-2_008.jpg)

![](ex99-2_009.jpg)

![](ex99-2_010.jpg)

![](ex99-2_011.jpg)