EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 10— EARNINGS PER SHARE

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding, after giving effect to all dilutive potential common shares outstanding during the period. Basic common shares outstanding exclude 66,000 common shares that are held in escrow and subject to forfeiture that were issued to the former Great American members upon the final settlement of claims for goods held for sale in connection with the Acquisition. Dilutive common shares outstanding includes contingently issuable shares that are currently in escrow and subject to release if the conditions for the final settlement of claims for goods held for sale in connection with the Acquisition were satisfied at the end of the respective periods. Weighted average diluted shares outstanding during the three and nine months ended September 30, 2014 exclude 58,212 shares from the computation of net loss per diluted share because the impact would have been anti-dilutive.

Basic and diluted earnings (loss) per share was calculated as follows (in thousands, except per share amounts):

	Three Months Ended  September 30,					Nine Months Ended  September 30,
	2015		2014			2015		2014
Net income (loss) attributable to B. Riley Financial, Inc.	$	1,463	$	(868	)	$	12,809	$	(2,979	)
Weighted average shares outstanding:
Basic		16,243,425		15,911,482			16,199,931		7,492,295
Effect of dilutive potential common shares:
Restricted stock units		56,349		—			28,147		—
Contingently issuable shares		44,875		—			44,875		—
Diluted		16,344,649		15,911,482			16,272,953		7,492,295
Basic income (loss) per share	$	0.09	$	(0.05	)	$	0.79	$	(0.40	)
Diluted income (loss) per share	$	0.09	$	(0.05	)	$	0.79	$	(0.40	)