EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 10— EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income by the weighted-average number of shares outstanding during the period. Diluted earnings per share is calculated by dividing net income 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 as a result of the failure to achieve certain performance targets specified in connection with the transaction with Alternative Asset Management Acquisition Corp. in 2009 (the “Acquisition”). The 66,000 common shares issued to the former members of Great American Group, LLC are subject to forfeiture 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 was satisfied at the end of the respective periods.

Basic and diluted earnings per share was calculated as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
Net income (loss) attributable to B. Riley Financial, Inc.	$	3,280	$	(101	)	$	17,301	$	147
Weighted average shares outstanding:
Basic		21,216,829		17,935,254			20,311,231		17,212,716
Effect of dilutive potential common shares:
Restricted stock units and non-vested shares		857,459		—			628,759		289,705
Contingently issuable shares		44,767		—			44,767		44,652
Diluted		22,119,055		17,935,254			20,984,757		17,547,073
Basic income (loss) per share	$	0.15	$	(0.01	)	$	0.85	$	0.01
Diluted income (loss) per share	$	0.15	$	(0.01	)	$	0.82	$	0.01