EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

Basic earnings per share is calculated by dividing net income (loss) 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. Remeasurements to the carrying value of the redeemable noncontrolling interests in equity of subsidiaries are not deemed to be a dividend (see Note 2(p)). According to ASC 480 - Distinguishing Liabilities from Equity, there is no impact on earnings per share in the computation of basic and diluted earnings per share to common shareholders for changes in the carrying value of the redeemable noncontrolling interests in equity, when such changes in carrying value which in substance approximates fair value.

Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net income per share were 1,721,132 and 1,069,184 for the three months ended September 30, 2022 and 2021, respectively, and 1,609,425 and 911,302 for the nine months ended September 30, 2022 and 2021, respectively, because to do so would have been anti-dilutive.

Basic and diluted earnings per share were calculated as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income (loss) attributable to B. Riley Financial, Inc.	$	47,837	$	50,550	$	(102,384)	$	380,882
Preferred stock dividends	(2,002)		(1,929)		(6,006)		(5,467)
Net income (loss) applicable to common shareholders	$	45,835	$	48,621	$	(108,390)	$	375,415

Weighted average common shares outstanding:
Basic	28,293,064		27,570,716		28,068,160		27,297,917
Effect of dilutive potential common shares:
Restricted stock units and warrants	1,675,353		1,223,350		—		1,428,575
Diluted	29,968,417		28,794,066		28,068,160		28,726,492

Basic income (loss) per common share	$	1.62	$	1.76	$	(3.86)	$	13.75
Diluted income (loss) per common share	$	1.53	$	1.69	$	(3.86)	$	13.07