10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-37503

B. RILEY FINANCIAL, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	27-0223495
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer  Identification No.)
11100 Santa Monica Blvd., Suite 800 Los Angeles, CA	90025
(Address of Principal Executive Offices)	(Zip Code)

(310) 966-1444

(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
Emerging growth company	o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 2, 2023, there were 28,135,636 shares of the registrant’s common stock, par value $0.0001 per share, outstanding.

B. Riley Financial, Inc.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended March 31, 2023

Table of Contents

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022	1
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022	3
	Condensed Consolidated Statements of Equity for the three months ended March 31, 2023 and 2022	4
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022	6
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	47
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
Item 4.	Controls and Procedures	62
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	64
Item 1A.	Risk Factors	64
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Defaults Upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	65
Item 6.	Exhibits	65
SIGNATURES		67

Explanatory Note

As previously disclosed in the Explanatory Note of the 2022 Annual Report on Form 10-K, we restated our audited consolidated financial statements as of and for the years ended December 31, 2020 and 2021 and each of our unaudited condensed consolidated financial statements for the quarterly and year-to-date periods during 2021 and for the first three quarters of the year ending 2022. The restatement of these periods was effective with the filing of our Annual Report on Form 10-K for the year ended December 31, 2022. See Note 2 to the consolidated financial statements in our 2022 Annual Report on Form 10-K for additional information related to the restatement.

Additionally, as previously disclosed in our 2022 Annual Report on Form 10-K, we restated the relevant unaudited financial information for the three months ended March 31, 2022, three and six months ended June 30, 2022, and three and nine months ended September 30, 2022. Accordingly, the condensed consolidated financial statements as of and for the three months ended March 31, 2022 included in this Quarterly Report on Form 10-Q have been restated to reflect the restatement adjustments as described in the 2022 Form 10-K. See also Note 2 to our condensed consolidated financial

statements for further information on the impact of the restatement adjustments on the condensed consolidated financial statements as of and for the quarterly period ended March 31, 2022.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Dollars in thousands, except par value)

	March 31, 2023		December 31, 2022
	(Unaudited)
ASSETS
Assets:
Cash and cash equivalents	$	209,971	$	268,618
Restricted cash	2,351		2,308
Due from clearing brokers	19,145		48,737
Securities and other investments owned, at fair value	1,049,230		1,129,268
Securities borrowed	2,942,843		2,343,327
Accounts receivable, net	120,853		149,110
Due from related parties	372		1,081
Loans receivable, at fair value (includes $97,062 and $98,729 from related parties as of March 31, 2023 and December 31, 2022, respectively)	772,085		701,652
Prepaid expenses and other assets	491,872		460,696
Operating lease right-of-use assets	88,989		88,593
Property and equipment, net	27,577		27,141
Goodwill	523,997		512,595
Other intangible assets, net	366,060		374,098
Deferred income taxes	2,845		3,978
Total assets	$	6,618,190	$	6,111,202
LIABILITIES AND EQUITY
Liabilities:
Accounts payable	$	59,969	$	81,384
Accrued expenses and other liabilities	263,335		322,974
Deferred revenue	84,019		85,441
Deferred income taxes	34,274		29,548
Due to related parties and partners	431		2,210
Due to clearing brokers	6,033		19,307
Securities sold not yet purchased	7,806		5,897
Securities loaned	2,937,982		2,334,031
Operating lease liabilities	100,075		99,124
Notes payable	19,882		25,263
Revolving credit facility	139,463		127,678
Term loans, net	626,613		572,079
Senior notes payable, net	1,722,977		1,721,751
Total liabilities	6,002,859		5,426,687
Commitments and contingencies (Note 17)
Redeemable noncontrolling interests in equity of subsidiaries	174,967		178,622
B. Riley Financial, Inc. equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,563 and 4,545 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively; and liquidation preference of $114,082 and $113,615 as of March 31, 2023 and December 31, 2022, respectively	—		—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,135,636 and 28,523,764 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	3		3
Additional paid-in capital	445,352		494,201
Accumulated deficit	(62,566)		(45,220)
Accumulated other comprehensive loss	(1,604)		(2,470)
Total B. Riley Financial, Inc. stockholders’ equity	381,185		446,514
Noncontrolling interests	59,179		59,379
Total equity	440,364		505,893
Total liabilities and equity	$	6,618,190	$	6,111,202

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share data)

	Three Months Ended March 31,
	2023		2022
Revenues:			As Restated
Services and fees	$	235,559	$	202,814
Trading income (loss) and fair value adjustments on loans	51,568		(19,278)
Interest income - Loans and securities lending	77,186		61,426
Sale of goods	67,777		1,878
Total revenues	432,090		246,840
Operating expenses:
Direct cost of services	54,397		11,651
Cost of goods sold	47,626		2,251
Selling, general and administrative expenses	212,627		175,199
Restructuring charge	93		—
Interest expense - Securities lending and loan participations sold	32,424		11,766
Total operating expenses	347,167		200,867
Operating income	84,923		45,973
Other income (expense):
Interest income	2,574		67
Dividend income	13,204		7,861
Realized and unrealized losses on investments	(28,442)		(49,112)
Change in fair value of financial instruments and other	(209)		5,981
(Loss) income from equity investments	(10)		6,775
Interest expense	(47,561)		(30,436)
Income (loss) before income taxes	24,479		(12,891)
(Provision for) benefit from income taxes	(7,919)		3,695
Net income (loss)	16,560		(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)		866
Net income (loss) attributable to B. Riley Financial, Inc.	17,155		(10,062)
Preferred stock dividends	2,012		2,002
Net income (loss) available to common shareholders	$	15,143	$	(12,064)
Basic income (loss) per common share	$	0.53	$	(0.43)
Diluted income (loss) per common share	$	0.51	$	(0.43)
Weighted average basic common shares outstanding	28,585,337		27,855,033
Weighted average diluted common shares outstanding	29,513,435		27,855,033

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(Dollars in thousands)

	Three Months Ended March 31,
	2023		2022
Net income (loss)	$	16,560	$	(9,196)
Other comprehensive income (loss):
Change in cumulative translation adjustment	866		(488)
Other comprehensive income (loss), net of tax	866		(488)
Total comprehensive income (loss)	17,426		(9,684)
Comprehensive (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(449)		866
Comprehensive income (loss) attributable to B. Riley Financial, Inc.	$	17,875	$	(10,550)

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Equity

(Unaudited)

(Dollars in thousands, except share data)

For the Three Months Ended March 31, 2023 and 2022

4

	Preferred Stock			Common Stock			Additional Paid-in Capital		(Accumulated Deficit) Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Equity
	Shares	Amount		Shares	Amount
Balance, January 1, 2023	4,545	$	—	28,523,764	$	3	$	494,201	$	(45,220)	$	(2,470)	$	59,379	$	505,893
Preferred stock issued	18	—		—	—		467		—		—		—		467
Vesting of restricted stock and other, net of shares withheld for employer taxes	—	—		1,012,751	—		(4,819)		—		—		—		(4,819)
Common stock repurchased and retired	—	—		(1,452,831)	—		(53,803)		—		—		—		(53,803)
Shares issued for the acquisition of a business	—	—		51,952	—		2,111		—		—		—		2,111
Remeasurement of Lingo redeemable minority interest	—	—		—	—		(6,483)		—		—		—		(6,483)
Share based payments	—	—		—	—		13,678		—		—		—		13,678
Dividends on common stock ($1.00 per share)	—	—		—	—		—		(31,291)		—		—		(31,291)
Dividends on preferred stock	—	—		—	—		—		(2,012)		—		—		(2,012)
Net income	—	—		—	—		—		17,155		—		(449)		16,706
Distributions to noncontrolling interests	—	—		—	—		—		—		—		(720)		(720)
Contributions from noncontrolling interests	—	—		—	—		—		—		—		431		431
Remeasurement of B. Riley Principal 250 Merger Corporation subsidiary temporary equity	—	—		—	—		—		(1,198)		—		—		(1,198)
Acquisition of noncontrolling interest	—	—		—	—		—		—		—		538		538
Other comprehensive income	—	—		—	—		—		—		866		—		866
Balance, March 31, 2023	4,563	$	—	28,135,636	$	3	$	445,352	$	(62,566)	$	(1,604)	$	59,179	$	440,364
Balance, January 1, 2022	4,512	$	—	27,591,028	$	3	$	413,486	$	248,862	$	(1,080)	$	43,930	$	705,201
Preferred stock issued	23	—		—	—		639		—		—		—		639
Vesting of restricted stock and other, net of shares withheld for employer taxes	—	—		32,328	—		(1,294)		—		—		—		(1,294)
Shares issued for the acquisition of FocalPoint	—	—		304,878	—		20,320		—		—		—		20,320
Share based payments	—	—		—	—		17,013		—		—		—		17,013
Dividends on common stock ($1.00 per share)	—	—		—	—		—		(31,033)		—		—		(31,033)
Dividends on preferred stock	—	—		—	—		—		(2,002)		—		—		(2,002)
Net loss	—	—		—	—		—		(10,062)		—		866		(9,196)
Distributions to noncontrolling interests	—	—		—	—		—		—		—		(935)		(935)
Contributions from noncontrolling interests	—	—		—	—		—		—		—		1,770		1,770
Acquisition of noncontrolling interests	—	—		—	—		—		—		—		182		182
Other comprehensive loss	—	—		—	—		—		—		(488)		—		(488)
Balance, March 31, 2022	4,535	$	—	27,928,234	$	3	$	450,164	$	205,765	$	(1,568)	$	45,813	$	700,177

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

	Three Months Ended March 31,
	2023		2022
Cash flows from operating activities:
Net income (loss)	$	16,560	$	(9,196)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	13,077		7,848
Provision for doubtful accounts	3,173		405
Share-based compensation	13,746		17,013
Fair value adjustments, non-cash	(46,050)		(15,816)
Non-cash interest and other	(1,141)		(3,596)
Effect of foreign currency on operations	271		(34)
Loss (income) from equity investments	10		(6,775)
Dividends from equity investments	129		774
Deferred income taxes	5,807		(41,900)
Loss on loans receivable and disposal of fixed assets	5		257
Gain on extinguishment of loan	—		(1,102)
Income allocated and fair value adjustment for mandatorily redeemable noncontrolling interests	308		215
Change in operating assets and liabilities:
Amounts due to/from clearing brokers	16,318		(80,091)
Securities and other investments owned	95,037		215,973
Securities borrowed	(599,516)		461,193
Accounts receivable	25,083		6,355
Prepaid expenses and other assets	(25,705)		1,701
Accounts payable, accrued payroll and related expenses, accrued expenses and other liabilities	(67,536)		(82,962)
Amounts due to/from related parties and partners	(1,070)		594
Securities sold, not yet purchased	1,909		(21,125)
Deferred revenue	(1,749)		4,924
Securities loaned	603,951		(469,553)
Net cash provided by (used in) operating activities	52,617		(14,898)
Cash flows from investing activities:
Purchases of loans receivable	(311,970)		(93,853)
Repayments of loans receivable	260,587		101,000
Sale of loan receivable	7,500		—
Acquisition of businesses and minority interest, net of $234 and $26,076 cash acquired for 2023 and 2022, respectively	(12,287)		(40,047)
Purchases of property, equipment and intangible assets	(1,696)		(176)
Proceeds from sale of property, equipment, intangible assets, and other	1,364		2
Purchase of equity and other investments	(662)		(2,439)
Net cash used in investing activities	(57,164)		(35,513)
Cash flows from financing activities:

6

Proceeds from revolving line of credit	29,021		—
Repayment of revolving line of credit	(17,237)		—
Repayment of notes payable	(11,510)		(357)
Repayment of term loan	(72,924)		(4,116)
Proceeds from term loan	128,187		—
Proceeds from issuance of senior notes	—		20,037
Payment of debt issuance and offering costs	(1,957)		—
Payment of contingent consideration	(1,302)		(181)
Payment of employment taxes on vesting of restricted stock	(4,819)		(1,294)
Common dividends paid	(46,856)		(27,886)
Preferred dividends paid	(2,012)		(2,002)
Repurchase of common stock	(53,803)		—
Distribution to noncontrolling interests	(1,023)		(1,051)
Contribution from noncontrolling interests	431		1,770
Proceeds from issuance of preferred stock	467		639
Net cash used in financing activities	(55,337)		(14,441)
Decrease in cash, cash equivalents and restricted cash	(59,884)		(64,852)
Effect of foreign currency on cash, cash equivalents and restricted cash	1,280		(496)
Net decrease in cash, cash equivalents and restricted cash	(58,604)		(65,348)
Cash, cash equivalents and restricted cash, beginning of period	270,926		279,860
Cash, cash equivalents and restricted cash, end of period	$	212,322	$	214,512
Supplemental disclosures:
Interest paid	$	81,423	$	38,272
Taxes paid	$	2,932	$	73

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

B. RILEY FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share data)

NOTE 1 — ORGANIZATION AND NATURE OF BUSINESS OPERATIONS

B. Riley Financial, Inc. and its subsidiaries (collectively, the “Company”) provide investment banking, brokerage, wealth management, asset management, direct lending, business advisory, valuation, and asset disposition services to a broad client base spanning public and private companies, financial sponsors, investors, financial institutions, legal and professional services firms, and individuals. The Company also has a portfolio of communication related businesses that provide consumer Internet access and cloud communication services and consumer related businesses that consist of a brands portfolio, which provides licensing of trademarks and brand investments, and Targus Cayman Holdco Limited (“Targus”), which designs and sells laptop and computer accessories.

The Company operates in six reportable operating segments: (i) Capital Markets, through which the Company provides investment banking, corporate finance, securities lending, restructuring, research, sales and trading services to corporate and institutional clients; (ii) Wealth Management, through which the Company provides wealth management and tax services to corporate and high-net-worth clients; (iii) Auction and Liquidation, through which the Company provides auction and liquidation services to help clients dispose of assets that include multi-location retail inventory, wholesale inventory, trade fixtures, machinery and equipment, intellectual property and real property; (iv) Financial Consulting, through which the Company provides bankruptcy, financial advisory, forensic accounting, real estate consulting and valuation and appraisal services; (v) Communications, through which the Company provides consumer Internet access and related subscription services, cloud communication services, and mobile phone voice, text, and data services and devices; and (vi) Consumer, including brands, which generates revenue through the licensing of trademarks, and Targus, which generates revenue through sales of laptop and computer accessories.

During the fourth quarter of 2022, the Company realigned its segment reporting structure to reflect organizational changes from recent acquisitions and the manner in which capital is allocated. The Consumer segment includes the previously reported Brands segment and Targus, which the Company acquired in the fourth quarter of 2022. The Company has also re-aligned its previously reported Principal Investments - Communications and Other segment into the Communications segment and the All Other category that is reported with Corporate and Other.

NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

In connection with the preparation of the consolidated financial statements for the year ended December 31, 2022, the Company identified a classification error of dividend income and realized and unrealized gains (losses) on certain investments within revenue. The following tables summarize the effects of the correction of the classification error on the Company’s restated condensed consolidated statements of operations for the three months ended March 31, 2022. The classification error had no impact on the Company's condensed consolidated balance sheet, condensed consolidated statements of equity, cash flows, net income, or earnings per share.

The following tables present the corrections by financial statement line item within the condensed consolidated statement of operations for all periods presented:

8

	Three Months Ended March 31, 2022
	As Previously Reported		Restatement Adjustments		Restatement Reference	As Restated
Statement of Operations
Revenues:
Services and fees	$	210,675	$	(7,861)	(a)	$	202,814
Trading (loss) income and fair value adjustments on loans	(68,390)		49,112		(b)	(19,278)
Interest income - Loans and securities lending	61,426		—			61,426
Sale of goods	1,878		—			1,878
Total revenues	205,589		41,251			246,840
Operating expenses:
Direct cost of services	11,651		—			11,651
Cost of goods sold	2,251		—			2,251
Selling, general and administrative expenses	175,199		—			175,199
Interest expense - Securities lending and loan participations sold	11,766		—			11,766
Total operating expenses	200,867		—			200,867
Operating income	4,722		41,251			45,973
Other income (expense):
Interest income	67		—			67
Dividend income	—		7,861		(a)	7,861
Realized and unrealized gains (losses) on investments	—		(49,112)		(b)	(49,112)
Change in fair value of financial instruments and other	5,981		—			5,981
Income from equity method investments	6,775		—			6,775
Interest expense	(30,436)		—			(30,436)
Loss before income taxes	(12,891)		—			(12,891)
Provision for income taxes	3,695		—			3,695
Net loss	(9,196)		—			(9,196)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests	866		—			866
Net loss attributable to B. Riley Financial, Inc.	(10,062)		—			(10,062)
Preferred stock dividends	2,002		—			2,002
Net loss available to common shareholders	$	(12,064)	$	—		$	(12,064)
Basic loss per common share	$	(0.43)				$	(0.43)
Diluted loss per common share	$	(0.43)				$	(0.43)
Weighted average basic common shares outstanding	27,855,033					27,855,033
Weighted average diluted common shares outstanding	27,855,033					27,855,033

9

(a) To reclassify dividends received from investments from Services and fees to Dividend income.

(b) To reclassify realized and unrealized gains (losses) on investments from Trading income (loss) and fair value on loans to Realized and unrealized gains (losses) on investments.

NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements include the accounts of B. Riley Financial, Inc. and its wholly owned and majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated upon consolidation.

The Company consolidates all entities that it controls through a majority voting interest. In addition, the Company performs an analysis to determine whether its variable interest or interests give it a controlling financial interest in a variable interest entity (“VIE”) including ongoing reassessments of whether it is the primary beneficiary of a VIE. See Note 3(o) for further discussion.

The condensed consolidated financial statements have been prepared by the Company, without audit, pursuant to interim financial reporting guidelines and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company’s management, all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included. These condensed consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 16, 2023. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods.

(b) Use of Estimates

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expense during the reporting period. Estimates are used when accounting for certain items such as valuation of securities, allowance for doubtful accounts, the fair value of loans receivables, intangible assets and goodwill, share based arrangements, contingent consideration, and accounting for income tax valuation allowances, recovery of contract assets and sales returns and allowances. Estimates are based on historical experience, where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.

(c) Interest Expense — Securities Lending Activities

Interest expense from securities lending activities is included in operating expenses related to operations in the Capital Markets segment. Interest expense from securities lending activities is incurred from equity and fixed income securities that are loaned to the Company and totaled $32,424 and $11,766 during the three months ended March 31, 2023 and 2022, respectively.

(d) Concentration of Risk

Revenues in the Capital Markets, Financial Consulting, Wealth Management, and Communications segments are primarily generated in the United States. Revenues in the Auction and Liquidation segment and Consumer segment are primarily generated in the United States, Australia, Canada, and Europe.

The Company maintains cash in various federally insured banking institutions. The account balances at each institution periodically exceed the Federal Deposit Insurance Corporation’s (“FDIC”) insurance coverage, and as a result, there is a concentration of credit risk related to amounts in excess of FDIC insurance coverage. The Company has not experienced any losses in such accounts. The Company also has substantial cash balances from proceeds received from auctions and liquidation engagements that are distributed to parties in accordance with the collaborative arrangements.

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The Company’s activities in the Auction and Liquidation segment are executed frequently with, and on behalf of, distressed customers and secured creditors. Concentrations of credit risk can be affected by changes in economic, industry, or geographical factors. The Company seeks to control its credit risk and potential risk concentration through risk management activities that limit the Company’s exposure to losses on any one specific liquidation services contract or concentration within any one specific industry. To mitigate the exposure to losses on any one specific liquidations services contract, the Company sometimes conducts operations with third parties through collaborative arrangements.

(e) Advertising Expenses

The Company expenses advertising costs, which consist primarily of costs for printed materials, as incurred. Advertising costs totaled $5,121 and $1,763 during the three months ended March 31, 2023 and 2022, respectively. Advertising expense was included as a component of selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

(f) Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

(g) Restricted Cash

As of March 31, 2023 and December 31, 2022, restricted cash included $2,351 and $2,308 of cash collateral for leases, respectively.

Cash, cash equivalents and restricted cash consist of the following:

	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	209,971	$	268,618
Restricted cash	2,351		2,308
Total cash, cash equivalents and restricted cash	$	212,322	$	270,926

(h) Loans Receivable

Under ASC 326 - Financial Instruments – Credit Losses, the Company elected the irrevocable fair value option for all outstanding loans receivable that were previously measured at amortized cost. Under the fair value option, loans receivables are measured at each reporting period based upon their exit value in an orderly transaction and unrealized gains or losses from changes in fair value are recorded in the condensed consolidated statements of operations. These loans are no longer subject to evaluation for impairment through an allowance for loan loss as such losses will be captured through fair value changes.

Loans receivable, at fair value totaled $772,085 and $701,652 as of March 31, 2023 and December 31, 2022, respectively. The loans have various maturities through March 2027. As of March 31, 2023 and December 31, 2022, the historical cost of loans receivable accounted for under the fair value option was $795,996 and $769,022, respectively, which included principal balances of $799,616 and $772,873 respectively, and unamortized costs, origination fees, premiums and discounts, totaling $3,620 and $3,851, respectively. During the three months ended March 31, 2023 and 2022, the Company recorded net unrealized gains of $43,459 and $10,937, respectively, on the loans receivable at fair value, which was included in trading income (losses) and fair value adjustments on loans on the condensed consolidated statements of operations. Loans receivable, at fair value on non-accrual was $39,552 and $7,153 as of March 31, 2023 and December 31, 2022, respectively, which represented approximately 5.1% and 1.0% of total loans receivable, at fair value as of March 31, 2023 and December 31, 2022, respectively.

The Company may periodically provide limited guarantees to third parties for loans that are made to investment banking and lending clients. As of March 31, 2023, the Company has outstanding limited guarantee arrangements with respect to Babcock & Wilcox Enterprises, Inc. (“B&W”) as further described in Note 17. In accordance with the new credit loss standard, the Company evaluates the need to record an allowance for credit losses for these loan guarantees since they have off-balance sheet credit exposures. As of March 31, 2023, the Company has not recorded any provision for credit

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losses on the B&W guarantees since the Company believes that there is sufficient collateral to protect the Company from any credit loss exposure.

Interest income on loans receivable is recognized based on the stated interest rate of the loan on the unpaid principal balance plus the amortization of any costs, origination fees, premiums and discounts and is included in interest income - loans and securities lending on the condensed consolidated statements of operations. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. Unearned income, discounts and premiums are amortized to interest income using a level yield methodology.

Badcock Loan Receivable

On December 20, 2021, the Company entered into a Master Receivables Purchase Agreement with W.S. Badcock Corporation, a Florida corporation (“WSBC”), an indirect wholly owned subsidiary of Franchise Group, Inc., a Delaware corporation (“FRG”). The Company paid $400,000 in cash to WSBC for the purchase of certain consumer credit receivables of WSBC. On September 23, 2022, the Company's subsidiary, B Riley Receivables II, LLC (“BRRII”), a Delaware limited liability company, entered into a Master Receivables Purchase Agreement (“2022 Badcock Receivable”) with WSBC. This purchase of $168,363 consumer credit receivables of WSBC was partially financed by a $148,200 term loan discussed in Note 11. During the three months ended March 31, 2023, BRRII entered into Amendment No. 2 and No. 3 to the 2022 Badcock Receivable with WSBC for a total of $145,278 in additional consumer credit receivables. The accounting for these transactions resulted in the Company recording a loan receivable from WSBC with the recognition of interest income at an imputed rate based on the cash flows expected to be received from the collection of the consumer receivables that serve as collateral for the loan. The loan receivable was measured at fair value on the condensed consolidated balance sheets.

In connection with these loans, the Company entered into a Servicing Agreement with WSBC pursuant to which WSBC will provide to the Company certain customary servicing and account management services in respect of the receivables purchased by the Company under the Receivables Purchase Agreement. In addition, subject to certain terms and conditions, FRG has agreed to guarantee the performance by WSBC of its obligations under the Master Receivables Purchase Agreements and the Servicing Agreement.

As of March 31, 2023 and December 31, 2022, loans receivable to WSBC in the Company's condensed consolidated balance sheets included loans measured at fair value in the amount of $324,328 and $318,109, respectively.

(i) Securities and Other Investments Owned and Securities Sold Not Yet Purchased

Securities and other investments owned consist of marketable securities and investments in partnership interests and other securities recorded at fair value. Securities sold, but not yet purchased represents obligations of the Company to deliver the specified security at the contracted price and thereby create a liability to purchase the security in the market at prevailing prices. Changes in the value of these securities are reflected currently in the results of operations.

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As of March 31, 2023 and December 31, 2022, the Company’s securities and other investments owned and securities sold not yet purchased at fair value consisted of the following securities:

	March 31, 2023		December 31, 2022
Securities and other investments owned:
Equity securities	$	929,582	$	1,046,710
Corporate bonds	65,470		8,539
Other fixed income securities	5,248		3,956
Partnership interests and other	48,930		70,063
	$	1,049,230	$	1,129,268
Securities sold not yet purchased:
Equity securities	$	6,122	$	4,466
Corporate bonds	480		1,162
Other fixed income securities	1,204		269
	$	7,806	$	5,897

The Company owns certain equity securities that are accounted for under the fair value option where the Company would otherwise use the equity method of accounting. Investments become subject to the equity method of accounting when the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the Company possesses more than 20% of the voting interests of the investee. However, the Company may have the ability to exercise significant influence over the investee when the Company owns less than 20% of the voting interests of the investee depending on the facts and circumstances that demonstrate that the ability to exercise influence is present, such as when the Company has representation on the board of directors of such investee.

The following tables contain summarized financial information with respect to two of the Company's individually greater than 20% investments, where the Company has a voting interest in each investee of 41% and 43%, respectively, which has been aggregated and included below for purposes of the disclosure a quarter in arrears (for balance sheet information the period ended December 31, 2022 and September 30, 2022 correspond to the period ended March 31, 2023 and December 31, 2022, respectively, of the Company and for income statement information the three months ended December 31, 2022 and 2021 correspond to the three months ended March 31, 2023 and 2022, respectively, of the Company), which is the period in which the most recent financial information is available:

	December 31, 2022		September 30, 2022
Total assets	$	197,101	$	202,520
Total liabilities	$	6,789	$	5,737
Equity attributable to investee	$	190,312	$	196,783

	For the three months ended December 31,
	2022		2021
Revenues	$	27,971	$	27,209
Net income (loss) attributable to investees	$	11,808	$	12,882

The following tables contain summarized financial information with respect to B&W, where the Company owns a 31% voting interest, included below for purposes of the disclosure a quarter in arrears (for balance sheet information the period ended December 31, 2022 and September 30, 2022 correspond to the period ended March 31, 2023 and December 31, 2022, respectively, of the Company and for income statement information the three months ended December 31, 2022 and 2021 correspond to the three months ended March 31, 2023 and 2022, respectively, of the Company), which is the period in which the most recent financial information is available:

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	December 31, 2022		September 30, 2022
Total assets	$	942,655	$	881,567
Total liabilities	$	944,744	$	898,695
Equity attributable to investee	$	(2,089)	$	(17,128)

	For the three months ended December 31,
	2022		2021
Revenues	$	249,877	$	192,295
Net income attributable to investees	$	2,021	$	25,874

As of March 31, 2023 and December 31, 2022, the fair value of these equity securities totaled $370,502 and $371,948, respectively, and are included in securities and other investments owned, at fair value in the condensed consolidated balance sheets.

(j) Fair Value Measurements

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) for identical instruments that are highly liquid, observable, and actively traded in over-the-counter markets. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable and can be corroborated by market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The Company’s securities and other investments owned and securities sold and not yet purchased are comprised of common and preferred stocks and warrants, corporate bonds, and investments in partnerships. Investments in common stocks that are based on quoted prices in active markets are included in Level 1 of the fair value hierarchy. The Company also holds loans receivable valued at fair value, nonpublic common and preferred stocks and warrants for which there is little or no public market and fair value is determined by management on a consistent basis. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks. These investments are included in Level 3 of the fair value hierarchy. Investments in partnership interests include investments in private equity partnerships that primarily invest in equity securities, bonds, and direct lending funds. The Company also invests in priority investment funds and the underlying securities held by these funds are primarily corporate and asset-backed fixed income securities and restrictions exist on the redemption of amounts invested by the Company. The Company’s partnership and investment fund interests are valued based on the Company’s proportionate share of the net assets of the partnerships and funds; the value for these investments is derived from the most recent statements received from the general partner or fund administrator. These partnership and investment fund interests are valued at net asset value (“NAV”) in accordance with ASC 820 - Fair Value Measurements. As of March 31, 2023 and December 31, 2022, partnership and investment fund interests valued at NAV of $48,930 and $70,063, respectively, are included in securities and other investments owned in the accompanying condensed consolidated balance sheets.

Securities and other investments owned also include investments in nonpublic entities that do not have a readily determinable fair value and do not report NAV per share. These investments are accounted for using a measurement alternative under which they are measured at cost and adjusted for observable price changes and impairments. Observable

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price changes result from, among other things, equity transactions for the same issuer executed during the reporting period, including subsequent equity offerings or other reported equity transactions related to the same issuer. For these transactions to be considered observable price changes of the same issuer, we evaluate whether these transactions have similar rights and obligations, including voting rights, distribution preferences, conversion rights, and other factors, to the investments we hold. Any investments adjusted to their fair value by applying the measurement alternative are disclosed as nonrecurring fair value measurements, including the level in the fair value hierarchy that was used. As of March 31, 2023 and December 31, 2022, investments in nonpublic entities valued using a measurement alternative of $86,920 and $94,109, respectively, are included in securities and other investments owned in the accompanying condensed consolidated balance sheets.

The Company measures certain assets at fair value on a nonrecurring basis. These assets include equity method investments when they are deemed to be other-than-temporarily impaired, investments adjusted to their fair value by applying the measurement alternative, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. The Company did not have any material assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition as of March 31, 2023 and December 31, 2022.

As of March 31, 2023 and December 31, 2022, funds held in trust represents amounts invested in a mutual fund that invests in U.S. Treasury securities that were purchased with funds raised through the initial public offering of B. Riley Principal 250 Merger Corporation (“BRPM 250”), which is a consolidated special purpose acquisition corporation (“SPAC”). As of March 31, 2023 and December 31, 2022, the Company had $176,182 and $174,437, respectively, of funds held in trust related to the SPAC. The funds raised are held in a trust account that is restricted for use and may only be used for purposes of completing an initial business combination or redemption of the class A public common shares of the SPAC as set forth in the trust agreement. The funds held in trust are included within Level 1 of the fair value hierarchy and included in prepaid expenses and other assets in the accompanying condensed consolidated balance sheets.

The Company has warrant liabilities related to warrants of the SPAC that are held by investors in BRPM 250. The warrants are accounted for as liabilities in accordance with ASC 815 - Derivatives and Hedging and are measured at fair value at inception and on a recurring basis using quoted prices in over-the-counter markets. Warrant liabilities are included in Level 1 of the fair value hierarchy and included in accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets in the amount of $381 and $173 for BRPM 250 as of March 31, 2023 and December 31, 2022, respectively. Changes in fair value of warrants are included within change in fair value of financial instruments and other as part of other income (expense) in the consolidated statements of operations. The fair value of mandatorily redeemable noncontrolling interests is determined based on the issuance of similar interests for cash, references to industry comparables, and relied, in part, on information obtained from appraisal reports and internal valuation models.

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The following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.

	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2023 Using
	Fair value as of March 31, 2023		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	176,182	$	176,182	$	—	$	—
Securities and other investments owned:
Equity securities	842,662		483,621		—		359,041
Corporate bonds	65,470		53,716		11,754		—
Other fixed income securities	5,248		—		5,248		—
Total securities and other investments owned	913,380		537,337		17,002		359,041
Loans receivable, at fair value	772,085		—		—		772,085
Total assets measured at fair value	$	1,861,647	$	713,519	$	17,002	$	1,131,126
Liabilities:
Securities sold not yet purchased:
Equity securities	$	6,122	$	6,122	$	—	$	—
Corporate bonds	480		—		480		—
Other fixed income securities	1,204		—		1,204		—
Total securities sold not yet purchased	7,806		6,122		1,684		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654		—		—		4,654
Warrant liabilities	381		381		—		—
Contingent consideration	28,884		—		—		28,884
Total liabilities measured at fair value	$	41,725	$	6,503	$	1,684	$	33,538

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	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2022 Using
	Fair value at December 31, 2022		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	174,437	$	174,437	$	—	$	—
Securities and other investments owned:
Equity securities	952,601		584,136		—		368,465
Corporate bonds	8,539		—		8,539		—
Other fixed income securities	3,956		—		3,956		—
Total securities and other investments owned	965,096		584,136		12,495		368,465
Loans receivable, at fair value	701,652		—		—		701,652
Total assets measured at fair value	$	1,841,185	$	758,573	$	12,495	$	1,070,117
Liabilities:
Securities sold not yet purchased:
Equity securities	$	4,466	$	4,466	$	—	$	—
Corporate bonds	1,162		—		1,162		—
Other fixed income securities	269		—		269		—
Total securities sold not yet purchased	5,897		4,466		1,431		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		—		4,648
Warrant liabilities	173		173		—		—
Contingent consideration	31,046		—		—		31,046
Total liabilities measured at fair value	$	41,764	$	4,639	$	1,431	$	35,694

As of March 31, 2023 and December 31, 2022, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $1,131,126 and $1,070,117, respectively, or 17.1% and 17.5%, respectively, of the Company’s total assets. In determining the fair value for these Level 3 financial assets, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity.

The following table summarizes the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of March 31, 2023 and December 31, 2022:

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	Fair value at March 31, 2023		Valuation Technique	Unobservable Input	Range	Weighted Average
Assets:
Equity securities	$	297,136	Market approach	Multiple of EBITDA	1.5x - 16.0x	6.3x
				Multiple of Sales	3.8x	3.8x
				Market price of related security	$0.01 - $14.05	$7.33
	57,974		Discounted cash flow	Market interest rate	23.8%	23.8%
	3,931		Option pricing model	Annualized volatility	30.0% - 510.0%	80.0%
Loans receivable at fair value	744,018		Discounted cash flow	Market interest rate	9.7% - 35.6%	18.1%
	28,067		Market approach	Market price of related security	$13.25	$13.25
Total level 3 assets measured at fair value	$	1,131,126
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,654	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	28,884		Discounted cash flow	EBITDA volatility	75%	75%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
				Revenue volatility	5.1%	5.1%
Total level 3 liabilities measured at fair value	$	33,538

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	Fair value at December 31, 2022		Valuation Technique	Unobservable Input	Range	Weighted  Average
Assets:
Equity securities	$	304,172	Market approach	Multiple of EBITDA	1.5x - 10.5x	6.0x
				Multiple of Sales	3.0x	3.0x
				Market price of related security	$10.01 - $18.88	$16.91
	57,267		Discounted cash flow	Market interest rate	23.8%	23.8%
	7,026		Option pricing model	Annualized volatility	0.3% - 26.1%	70.0%
Loans receivable at fair value	694,499		Discounted cash flow	Market interest rate	6.0% - 83.5%	23.9%
	7,153		Market approach	Multiple of EBITDA	4.5x	4.5x
Total level 3 assets measured at fair value	$	1,070,117
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,648	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	31,046		Discounted cash flow	EBITDA volatility	80.0%	80.0%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
Total level 3 liabilities measured at fair value	$	35,694

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The changes in Level 3 fair value hierarchy during the three months ended March 31, 2023 and 2022 were as follows:

	Level 3 Balance at Beginning of Year		Level 3 Changes During the Period								Level 3 Balance at End of Period
			Fair Value Adjustments		Relating to Undistributed Earnings		Purchases, Sales and Settlements		Transfer in and/or out of Level 3
Three Months Ended March 31, 2023
Equity securities	$	368,465	$	(9,016)	$	—	$	6,487	$	(6,895)	$	359,041
Loans receivable at fair value	701,652		43,459		231		26,743		—		772,085
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		308		(302)		—		4,654
Contingent consideration	31,046		(3,447)		—		1,285		—		28,884
Three Months Ended March 31, 2022
Equity securities	$	377,549	$	(4,543)	$	—	$	19,912	$	(4,254)	$	388,664
Loans receivable at fair value	873,186		10,937		3,238		(4,970)		—		882,391
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,506		—		247		(251)		—		4,502
Contingent consideration	—		—		—		22,464		—		22,464

The amount reported in the table above as of March 31, 2023 and December 31, 2022 included the amount of undistributed earnings attributable to the noncontrolling interests that is distributed on a quarterly basis. The carrying amounts reported in the condensed consolidated financial statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value based on the short-term maturity of these instruments.

As of March 31, 2023 and December 31, 2022, the senior notes payable had a carrying amount of $1,722,977 and $1,721,751, respectively, and fair value of $1,258,532 and $1,431,787, respectively. The carrying amount of the term loans approximates fair value because the effective yield of such instruments are consistent with current market rates of interest for instruments of comparable credit risk.

The investments in nonpublic entities that do not report NAV are measured at cost, adjusted for observable price changes and impairments, with changes recognized in trading income (losses) and fair value adjustments on loans on the condensed consolidated statements of operations. These investments are evaluated on a nonrecurring basis based on the observable price changes in orderly transactions for the identical or similar investment of the same issuer. Further adjustments are not made until another observable transaction occurs. Therefore, the determination of fair values of these investments in nonpublic entities that do not report NAV does not involve significant estimates and assumptions or subjective and complex judgments. Investments in nonpublic entities that do not report NAV are subject to a qualitative assessment for indicators of impairment. If indicators of impairment are present, the Company is required to estimate the investment’s fair value and immediately recognize an impairment charge in an amount equal to the investment’s carrying value in excess of its estimated fair value.

The following table presents information on the assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2023 and December 31, 2022. These investments were measured due to an observable price change or impairment during the periods below.

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	Fair Value Measurement Using
	Total		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
As of March 31, 2023
Investments in nonpublic entities that do not report NAV	$	4,271	$	—	$	—	$	4,271
As of December 31, 2022
Investments in nonpublic entities that do not report NAV	$	20,251	$	—	$	18,659	$	1,592

(k) Derivative and Foreign Currency Translation

The Company periodically uses derivative instruments, which primarily consist of the purchase of forward exchange contracts, for certain loans receivable and Auction and Liquidation engagements with operations outside the United States. As of March 31, 2023 and December 31, 2022, there were no forward exchange contracts outstanding.

The forward exchange contracts were entered into to improve the predictability of cash flows related to a retail store liquidation engagement and a loan receivable. The net gain from forward exchange contracts was zero and $68 during the three months ended March 31, 2023 and 2022, respectively. This amount was reported as a component of selling, general and administrative expenses in the condensed consolidated statements of operations.

The Company transacts business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country’s currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using period-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets. Transaction losses were $234 and gains were $296 during the three months ended March 31, 2023 and 2022, respectively. These amounts were included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.

As disclosed in Note 3(o) below, the Company has consolidated a VIE, BRPM 250, which has outstanding warrants that were issued in its initial public offerings. The warrants have been recorded as a liability since the warrants contain a provision to be settled in cash in the event of a qualifying cash tender offer for BRPM 250, which is outside the control of the Company. The outstanding warrants are considered derivative instruments with the warrant liability measured at fair value at each reporting date until exercised or upon expiration, with changes in fair value reported in other income in the condensed consolidated statements of operations. As of March 31, 2023 and December 31, 2022, the warrant liability for BRPM 250 totaled $381 and $173, respectively, which was included in accrued expenses and other liabilities in the condensed consolidated balance sheet.

(l) Redeemable Noncontrolling Interests in Equity of Subsidiaries

The Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the class A ordinary shareholders in the BRPM 250 sponsored SPAC and the 20% noncontrolling interest of Lingo Management, LLC (“Lingo”), which on February 24, 2023, the Company acquired, increasing its ownership interest in Lingo to 100%. These interests are presented as redeemable noncontrolling interests in equity of subsidiaries within the condensed consolidated balance sheet, outside of the permanent equity section. The class A ordinary shareholders of BRPM 250 have redemption rights that are considered to be outside of the Company’s control. Remeasurements to the redemption value of the redeemable noncontrolling interest in equity of subsidiaries are recorded within retained earnings (accumulated deficit). The operating agreement with Lingo has provisions which result in the noncontrolling interest being accounted for as temporary equity. Net income (losses) are reflected in net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in the condensed consolidated statement of operations.

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Changes to redeemable noncontrolling interest consist of the following:

	Three Months Ended March 31, 2023
Balance, December 31, 2022	$	178,622
Net loss	(146)
Purchase of Lingo minority interest	(11,190)
Remeasurement adjustments for Lingo and BRPM 250	7,681
Balance, March 31, 2023	$	174,967

(m) Equity Investment

As of March 31, 2023 and December 31, 2022, equity investments of $41,816 and $41,298, respectively, were included in prepaid expenses and other assets in the accompanying condensed consolidated balance sheets. The Company’s share of earnings or losses from equity method investees was included in income from equity investments in the accompanying condensed consolidated statements of operations.

bebe stores, inc.

As of March 31, 2023 and December 31, 2022, the Company had a 41.3% and 40.1% ownership interest in bebe stores, inc. (“bebe”), respectively. The equity ownership in bebe was accounted for under the equity method of accounting and was included in prepaid expenses and other assets in the condensed consolidated balance sheets. The common stock of bebe is publicly traded. The fair value of bebe as of March 31, 2023 and December 31, 2022 was $22,573 and $25,423, respectively. The carrying value of the investment in bebe as of March 31, 2023 and December 31, 2022 was $40,937 and $40,383, respectively.

As of March 31, 2023, the carrying value of the Company’s equity method investment in bebe exceeded the fair value based on the quoted market prices. In consideration of these facts, the Company evaluated its investment for other than temporary impairment under ASC 323. The Company did not utilize bright-line tests in the evaluation. Based on the available facts and information regarding the operating results of bebe, the Company’s ability and intent to hold the investments until recovery, the relative amount of the declines, and the length of time that the fair values were less than the carrying values, the Company concluded that recognition of impairment losses in earnings was not required. However, the Company will continue to monitor the investment and it is possible that impairment losses will be recorded in earnings in future periods based on changes in facts and circumstances or intentions.

Other Equity Investments

The Company had other equity method investments over which the Company exercises significant influence but that did not meet the requirements for consolidation, the largest ownership interest being a 40% ownership interest in Lingo, which was acquired in November 2020. On May 31, 2022, the Company's ownership increased to 80% and Lingo's operating results were consolidated with the Company. On February 24, 2023, the Company acquired the remaining 20% ownership in Lingo, increasing the Company's ownership interest from 80% to 100%. The equity ownership in these other investments was accounted for at the applicable times under the equity method of accounting and was included in prepaid expenses and other assets in the condensed consolidated balance sheets.

(n) Supplemental Non-cash Disclosures

During the three months ended March 31, 2023, non-cash investing activities included $15,000 of a convertible note receivable which was included in loans receivable, at fair value, that converted into an equity security, $1,190 of loans receivable, at fair value, was credited to the consideration paid for the purchase of the Lingo noncontrolling interest, and $2,111 of common stock issued as part of the purchase price consideration for a business acquisition. During the three months ended March 31, 2023, non-cash financing activities included $7,000 in seller financing related to the purchase of the Lingo noncontrolling interest. During the three months ended March 31, 2022, non-cash investing activities included $20,320 in issuance of the Company's common stock as part of the purchase price consideration from the FocalPoint acquisition and $22,661 in seller financing for deferred cash consideration.

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(o) Variable Interest Entities

The Company holds interests in various entities that meet the characteristics of a VIE but are not consolidated as the Company is not the primary beneficiary. Interests in these entities are generally in the form of equity interests, loans receivable, or fee arrangements.

The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed.

The Company, has entered into agreements to provide investment banking and advisory services to numerous investment funds (the “Funds”) that are considered variable interest entities under the accounting guidance.

The Company earns fees from the Funds in the form of placement agent fees and carried interest. For placement agent fees, the Company receives a cash fee of generally 7% to 10% of the amount of raised capital for the Funds and the fee is recognized at the time the placement services occurred. The Company receives carried interest as a percentage allocation (8% to 15%) of the profits of the Funds as compensation for asset management services provided to the Funds and it is recognized under the ownership model of ASC 323 - Investments – Equity Method and Joint Ventures as an equity method investment with changes in allocation recorded currently in the results of operations. As the fee arrangements under such agreements are arm’s length and contain customary terms and conditions and represent compensation that is considered fair value for the services provided, the fee arrangements are not considered variable interests and accordingly, the Company does not consolidate such VIEs.

Placement agent fees attributable to such arrangements during the three months ended March 31, 2023 and 2022 were zero and $12,051, respectively, and were included in services and fees in the condensed consolidated statements of operations.

The carrying value of the Company’s investments in the VIEs that were not consolidated is shown below.

	March 31, 2023		December 31, 2022
Securities and other investments owned, at fair value	$	35,383	$	33,743
Loans receivable, at fair value	58,611		46,700
Other assets	2,570		3,755
Maximum exposure to loss	$	96,564	$	84,198

B. Riley Principal 150 and 250 Merger Corporations

In 2021, the Company along with BRPM 150 and BRPM 250, both newly formed special purpose acquisition companies incorporated as Delaware corporations, consummated the initial public offerings of 17,250,000 units of BRPM 150 and 17,250,000 units of BRPM 250. Each Unit of BRPM 150 and BRPM 250 consisted of one share of class A common stock and one-third of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one share of BRPM 150 or BRPM 250 class A common stock at an exercise price of $11.50 per share. The BRPM 150 and BRPM 250 Units were each sold at a price of $10.00 per unit, generating gross proceeds to BRPM 150 of $172,500 and BRPM 250 of $172,500. These proceeds which totaled $345,000 were deposited in a trust account established for the benefit of the BRPM 150 and BRPM 250 class A public shareholders and was included in prepaid expenses and other assets in the condensed balance sheet. These proceeds are invested only in U.S. treasury securities in accordance with the governing documents of BRPM 150 and BRPM 250. Under the terms of the BRPM 150 and BRPM 250 initial public offerings, BRPM 150 and BRPM 250 are required to consummate a business combination transaction within 24 months (or 27 months under certain circumstances) of the completion of their respective initial public offerings.

In connection with the completion of the initial public offerings of BRPM 150 and BRPM 250, the Company invested in the private placement units of BRPM 150 and BRPM 250. Both BRPM 150 and BRPM 250 are determined to be VIE’s because each of the entities do not have enough equity at risk to finance their activities without additional subordinated financial support. The Company has determined that the class A shareholders of BRPM 150 and BRPM 250 do not have

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substantive rights as shareholders of BRPM 150 and BRPM 250 since these equity interests are determined to be temporary equity. As such, the Company has determined that it is the primary beneficiary of BRPM 150 and BRPM 250 as it has the right to receive benefits or the obligation to absorb losses of each of the entities, as well as the power to direct a majority of the activities that significantly impact BRPM 150 and BRPM 250’s economic performance. Since the Company is determined to be the primary beneficiary, BRPM 150 and BRPM 250 are consolidated into the Company’s financial statements.

On July 19, 2022, BRPM 150 completed a business combination with FaZeClan Holdings, Inc. (“Faze Holdings”) in a reverse merger transaction resulting in BRPM 150 no longer being a VIE of the Company and no longer being included in the consolidated group of the Company. In connection with the de-consolidation of BRPM 150, among other items, prepaid expenses and other assets decreased by $172,584 related to funds held in a trust account and redeemable noncontrolling interests in equity of subsidiaries decreased by $172,500. During the year ended December 31, 2022, the Company recognized incentive fees of $41,885, which was included in services and fees in the consolidated statement of operations.

On April 21, 2023, the Board of Directors of BRPM 250 approved a plan to redeem all of the outstanding shares of Class A common stock of BRPM 250, effective as of May 4, 2023. On May 4, 2023, the funds held in trust in the amount of $176,182 which is included in prepaid expenses and other assets will be distributed to pay income taxes and redeem the $174,967 of the redeemable noncontrolling interest in equity of subsidiaries that is included in the condensed consolidated balance sheet as of March 31, 2023.

(p) Recent Accounting Standards

Not yet adopted

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820). This update clarifies that a contractual restriction on the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security’s unit of account. Therefore, a contractual sale restriction should not be considered when measuring an equity security’s fair value. The update also prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. Specific disclosures related to equity securities subject to contractual sale restrictions are required and include the fair value of such equity securities on the balance sheet, the nature and remaining duration of the corresponding restrictions, and any circumstances that could cause a lapse in the restrictions. The amendments in this update are effective for the Company for fiscal periods beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. Investment companies as defined by Topic 946 should apply the amendments in this update to an equity security with a contract containing a sale restriction that was executed or modified on or after the date of adoption. For an equity security with a contract containing a sale restriction that was executed before the date of adoption, investment companies should continue to account for the equity security under their historical accounting policy for measuring such securities until the contractual restrictions expire or are modified. The Company has not yet adopted this update and is currently evaluating the effect, if any, this new standard will have on its financial position and results of operations.

Recently adopted

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations to enhance transparency about an entity’s use of supplier finance programs. Under the ASU, the buyer in a supplier finance program is required to disclose information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. An entity should also consider whether the existence of a supplier finance program changes the appropriate presentation of the payables in the program from trade payables to borrowings. The Company adopted the ASU effective January 1, 2023. The ASU had no impact on the consolidated results of operations, cash flows, and financial position and was immaterial to the financial statement disclosures.

NOTE 4 — ACQUISITIONS

2022 Acquisitions

Acquisition of Targus

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On October 18, 2022, the Company acquired all of the issued and outstanding shares of Targus in a transaction pursuant to a purchase agreement among Targus, the sellers identified therein, and the other parties thereto. The purchase price consideration totaled $247,546, which consisted of cash in the amount of $112,686, seller financing of $54,000, the issuance of $59,016 in 6.75% senior notes due 2024, the issuance of $15,328 of the Company’s common stock and stock options, and deferred payments of $6,515. In accordance with ASC 805, the Company used the acquisition method of accounting for this acquisition. Goodwill of $78,519 and other intangible assets of $89,000 were recorded as a result of the acquisition. The acquisition complements the Company’s existing investments and offers potential growth to the Company’s operations in the Consumer segment.

The assets and liabilities of Targus, both tangible and intangible, were recorded at their estimated fair values as of the October 18, 2022 acquisition date. Acquisition related costs, such as legal, accounting, valuation and other professional fees related to the acquisition of Targus, were charged against earnings in the amount of $1,921 and included in selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2022. Targus goodwill recognized subsequent to the acquisition will be non-deductible for tax purposes.

The fair value of acquisition consideration and preliminary purchase price allocation was as follows:

Consideration paid:
Cash	$	112,686
Fair value of seller financing	54,000
Fair value of 2,400,000 RILYO shares issued in senior notes at $24.59 per share	59,016
Fair value of 227,491 B. Riley common shares issued at $42.11 per share	9,580
Fair value of 215,876 stock options attributable to service period prior to acquisition	5,749
Fair value of deferred payments	6,515
Total consideration	$	247,546
Assets acquired and liabilities assumed:
Cash and cash equivalents	$	18,810
Accounts receivable	91,039
Prepaid and other assets	90,289
Right-of-use assets	7,665
Property and equipment	8,320
Other intangible assets	89,000
Accounts payable	(54,553)
Accrued expenses and other liabilities	(61,677)
Deferred income taxes	(9,989)
Contingent consideration	(2,212)
Lease liability	(7,665)
Net tangible assets acquired and liabilities assumed	169,027
Goodwill	78,519
Total	$	247,546

During the three months ended March 31, 2023, goodwill for Targus changed by $2,766 related to certain purchase price accounting adjustments.

The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:

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Category	Useful life	Fair Value
Customer relationships	9 years	$	50,000
Internally developed software and other intangibles	1 to 3 years	4,000
Tradenames	N/A	35,000
Total		$	89,000

Unaudited Pro Forma Information

Acquisition of Targus

The following unaudited pro forma financial information is presented to illustrate the estimated effects of the acquisition of Targus as if it had occurred on January 1, 2021. The pro forma amounts include the historical operating results of the Targus prior to the acquisition, with adjustments directly attributable to the acquisition. The pro forma results include adjustments and consequential tax effects to reflect incremental depreciation and amortization expense to be incurred based on preliminary fair values of the identifiable intangible assets acquired, the incremental interest expense associated with the issuance of debt to finance the acquisition, and the adjustments to exclude acquisition related costs incurred during the year ended December 31, 2022 and to recognize these costs during the year ended December 31, 2021 as if incurred on January 1, 2021. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations of the combined company were, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition.

	Pro Forma (unaudited)
	Three Months Ended March 31, 2022
Revenues	$	341,287
Net loss	$	(7,313)
Net loss attributable to B. Riley Financial, Inc.	$	(8,179)
Net loss attributable to common shareholders	$	(10,181)

These pro forma results do not necessarily represent the results of operations that would have been achieved if the acquisition had taken place on January 1, 2021, nor are they indicative of the results of operations for future periods.

Other Acquisitions

During the year ended December 31, 2022, the Company converted $17,500 of a loan receivable with Lingo into equity and the Company's ownership interest in Lingo increased from 40% to 80%. This resulted in the consolidation of Lingo and the pre-existing equity method investment was remeasured at fair value resulting in the recognition of a gain of $6,790, which is included in trading (losses) income and fair value adjustments on loans in the consolidated statements of operations. Upon the consolidation of Lingo on May 31, 2022, the total fair value of the assets of Lingo was $116,500 and the fair value of the 20% noncontrolling interest was $8,021. As part of the acquisition, the Company assumed liabilities in the amount of $32,172 and recorded goodwill of $34,412 and other intangible assets of $63,000 were recorded in the accompanying consolidated balance sheet.

The Company also completed the acquisitions of BullsEye Telecom (“BullsEye”), FocalPoint Securities, LLC (“FocalPoint”), and Atlantic Coast Fibers, LLC (“ACR”) (and related businesses), and other immaterial business. In accordance with ASC 805, the Company used the acquisition method of accounting for these acquisitions, which were not material to our consolidated financial statements. The aggregate purchase price consideration consisted of $145,987 in cash, $20,320 in issuance of common stock of the Company, $52,969 in assumed debt and other consideration payable. The purchase price allocation consisted of $151,925 in goodwill, $52,860 in intangible assets, and $2,522 in net assets acquired. The results of operations of the acquisitions which were not material have been included in our consolidated financial statements from the date of purchase. In February 2023, certain working capital holdback provisions in the

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BullsEye purchase agreement were finalized resulting in the Company receiving $1,101 of cash which reduced goodwill from $151,925 to $150,824.

Valuation Assumptions for Purchase Price Allocation

Our valuation assumptions used to value the acquired assets and assumed liabilities require significant estimates, especially with respect to intangible assets, inventories, property and equipment, and deferred income taxes. In determining the fair value of intangible assets acquired, the Company must make assumptions about the future performance of the acquired businesses, including among other things, the forecasted revenue growth attributable to the asset groups and projected operating expenses inclusive of expected synergies, future cost savings, and other benefits expected to be achieved by combining the businesses acquired with the Company. The intangible assets acquired are primarily comprised of customer relationships, trade names and trademarks, developed technology, and backlog. The Company utilized widely accepted income-based, market-based, and cost-based valuation approaches to perform the preliminary purchase price allocations. The estimated fair value of the customer relationships and backlog are determined using the multi-period excess earnings method and the estimated fair value of the trade names and trademarks and developed technology are determined using the relief from royalty method. Both methods require forward looking estimates that are discounted to determine the fair value of the intangible asset using a risk-adjusted discount rate that is reflective of the level of risk associated with future estimates associated with the asset group that could be affected by future economic and market conditions.

NOTE 5 — RESTRUCTURING CHARGE

The Company had $93 and no restructuring charges during the three months ended March 31, 2023 and 2022, respectively. The restructuring charges during the three months ended March 31, 2023 were primarily related to reorganization and consolidation activities in the Wealth Management segment and the Communications segment. Reorganization and consolidation activities consisted of reductions in workforce and facility closures.

The following tables summarize the changes in accrued restructuring charge during the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
Balance, beginning of period	$	2,335	$	624
Restructuring charge	93		—
Cash paid	(438)		(27)
Non-cash items	6		2
Balance, end of period	$	1,996	$	599

The following table summarizes the restructuring activities by reportable segment during the three months ended March 31, 2023. There were no restructuring charges during the three months ended March 31, 2022.

	Wealth Management		Communications		Total
Restructuring charges for the three months ended March 31, 2023:
Employee termination	$	—	$	60	$	60
Facility closure and consolidation	33		—		33
Total restructuring charge	$	33	$	60	$	93

NOTE 6 — SECURITIES LENDING

The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of March 31, 2023 and December 31, 2022:

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	Gross amounts recognized		Gross amounts offset in the consolidated balance sheets (1)		Net amounts included in the consolidated balance sheets		Amounts not offset in the consolidated balance sheets but eligible for offsetting upon counterparty default(2)		Net amounts
As of March 31, 2023
Securities borrowed	$	2,942,843	$	—	$	2,942,843	$	2,942,843	$	—
Securities loaned	$	2,937,982	$	—	$	2,937,982	$	2,937,982	$	—
As of December 31, 2022
Securities borrowed	$	2,343,327	$	—	$	2,343,327	$	2,343,327	$	—
Securities loaned	$	2,334,031	$	—	$	2,334,031	$	2,334,031	$	—

_________________________

(1)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

(2)Includes the amount of cash collateral held/posted.

NOTE 7 — ACCOUNTS RECEIVABLE

The components of accounts receivable, net, include the following:

	March 31, 2023		December 31, 2022
Accounts receivable	$	116,411	$	144,120
Investment banking fees, commissions and other receivables	10,766		8,654
Total accounts receivable	127,177		152,774
Allowance for doubtful accounts	(6,324)		(3,664)
Accounts receivable, net	$	120,853	$	149,110

Additions and changes to the allowance for doubtful accounts consist of the following:

	Three Months Ended March 31,
	2023		2022
Balance, beginning of period	$	3,664	$	3,658
Add: Additions to reserve	3,173		405
Less: Write-offs	(488)		(960)
Less: Recovery	(25)		—
Balance, end of period	$	6,324	$	3,103

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NOTE 8 — PREPAID EXPENSES AND OTHER ASSETS

Prepaid expenses and other assets consist of the following:

	March 31, 2023		December 31, 2022
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	$	176,182	$	174,437
Inventory	113,107		101,675
Equity method investments	41,816		41,298
Prepaid expenses	23,699		17,623
Unbilled receivables	14,857		14,144
Other receivables	67,902		66,403
Other assets	54,309		45,116
Prepaid expenses and other assets	$	491,872	$	460,696

Unbilled receivables represent the amount of contractual reimbursable costs and fees for services performed in connection with fee and service based contracts in the Auction and Liquidation segment, mobile handsets in the Communications segment, and consulting related engagements in the Financial Consulting segment.

NOTE 9 — GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill was $523,997 and $512,595 as of March 31, 2023 and December 31, 2022, respectively.

The changes in the carrying amount of goodwill for the three months ended March 31, 2023 were as follows:

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Balance as of December 31, 2022	$	162,018	$	51,195	$	1,975	$	23,680	$	193,195	$	75,753	$	4,779	$	512,595
Acquisition of other business	—		—		—		7,273		—		—		2,428		9,701
Other	—		—		—		36		(1,101)		2,766		—		1,701
Balance as of March 31, 2023	$	162,018	$	51,195	$	1,975	$	30,989	$	192,094	$	78,519	$	7,207	$	523,997

During the three months ended March 31, 2023, the changes in goodwill included $36 of foreign currency translation amounts, $(1,101) of working capital settlements as described in Note 4, and $2,766 related to certain purchase price accounting adjustments.

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Intangible assets consisted of the following:

		As of March 31, 2023						As of December 31, 2022
	Useful Life	Gross Carrying Value		Accumulated Amortization		Intangibles Net		Gross Carrying Value		Accumulated Amortization		Intangibles Net
Amortizable assets:
Customer relationships	1.0 to 16 Years	$	270,511	$	(94,872)	$	175,639	$	268,253	$	(87,049)	$	181,204
Domain names	7 years	185		(176)		9		185		(169)		16
Advertising relationships	8 years	100		(84)		16		100		(81)		19
Internally developed software and other intangibles	0.5 to 5 Years	28,295		(14,522)		13,773		28,295		(12,714)		15,581
Trademarks	3 to 10 Years	21,532		(5,185)		16,347		23,309		(6,307)		17,002
Total		320,623		(114,839)		205,784		320,142		(106,320)		213,822
Non-amortizable assets:
Tradenames		160,276		—		160,276		160,276		—		160,276
Total intangible assets		$	480,899	$	(114,839)	$	366,060	$	480,418	$	(106,320)	$	374,098

Amortization expense was $10,473 and $6,816 during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, estimated future amortization expense was $23,998, $26,786, $22,198, $18,897, and $26,132 for the three months ended March 31, 2023 (remaining nine months), 2024, 2025, 2026 and 2027, respectively. The estimated future amortization expense after December 31, 2027 was $87,773.

NOTE 10 — NOTES PAYABLE

Asset Based Credit Facility

The Company is party to a credit agreement (as amended, the “Credit Agreement”) governing its asset based credit facility with Wells Fargo Bank, National Association (“Wells Fargo Bank”) with a maximum borrowing limit of $200,000 and a maturity date of April 20, 2027. Cash advances and the issuance of letters of credit under the credit facility are made at the lender’s discretion. The letters of credit issued under this facility are furnished by the lender to third parties for the principal purpose of securing minimum guarantees under liquidation services contracts. All outstanding loans, letters of credit, and interest are due on the expiration date which is generally within 180 days of funding. The credit facility is secured by the proceeds received for services rendered in connection with liquidation service contracts pursuant to which any outstanding loan or letters of credit are issued and the assets that are sold at liquidation related to such contract. The interest rate for each revolving credit advance under the Credit Agreement is subject to certain terms and conditions, equal to the Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.25% to 3.25% depending on the type of advance and the percentage such advance represents of the related transaction for which such advance is provided. The credit facility provides for success fees in the amount of 1.0% to 10.0% of the net profits, if any, earned on the liquidation engagements funded under the Credit Agreement as set forth therein. The credit facility also provides for funding fees in the amount of 0.05% to 0.20% of the aggregate principal amount of all credit advances and letters of credit issued in connection with a liquidation sale. Interest expense totaled $18 and $108 during the three months ended March 31, 2023 and 2022, respectively. There was no outstanding balance on this credit facility as of March 31, 2023 and December 31, 2022. As of March 31, 2023, there were no open letters of credit outstanding.

The Company is in compliance with all financial covenants in the asset based credit facility as of March 31, 2023.

Other Notes Payable

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As of March 31, 2023 and December 31, 2022, the outstanding balance for the other notes payable was $19,882 and $25,263, respectively. Interest expense was $174 and $232 during the three months ended March 31, 2023 and 2022, respectively. Notes payable primarily consisted of additional deferred cash consideration owed to the sellers of FocalPoint and a promissory note related to the Lingo minority interest purchase as of March 31, 2023. Notes payable to a clearing organization for one of the Company’s broker dealers, which accrued interest at the prime rate plus 2.0%, matured on January 31, 2022 and was repaid during December 31, 2022.

NOTE 11 — TERM LOANS AND REVOLVING CREDIT FACILITY

Targus Credit Agreement

On October 18, 2022, the Company's subsidiary, Tiger US Holdings, Inc. (the “Borrower”), a Delaware corporation, among others, entered into a credit agreement (“Targus Credit Agreement”) with PNC Bank, National Association (“PNC”), as agent and security trustee for a five-year $28,000 term loan and a five-year $85,000 revolver loan, which was used to finance part of the acquisition of Targus.

The Targus Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. The Targus Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts outstanding under the Targus Credit Agreement. The Company is in compliance with all financial covenants in the Targus Credit Agreement as of March 31, 2023.

The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus an applicable margin of 3.75%. The revolver loan consists of base rate loans that bear interest on the outstanding principal amount equal to the base rate plus an applicable margin of 1.00% to 1.75% and term rate loans that bear interest on the outstanding principal amount equal to the revolver SOFR rate plus an applicable margin of 2.00% to 2.75%.

Principal outstanding is due in quarterly installments starting on December 31, 2022. Quarterly installments from June 30, 2023 to September 30, 2027 are in the amount of $1,400 per quarter and the remaining principal balance is due at final maturity on October 18, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $24,678 (net of unamortized debt issuance costs of $522) and $26,021 (net of unamortized debt issuance costs of $580), respectively, and the outstanding balance on the revolver loan was $62,463 and $52,978, respectively. Interest expense on these loans during the three months ended March 31, 2023 was $1,689 (including amortization of deferred debt issuance costs and unused commitment fees of $173). The interest rate on the term loan was 8.66% and 8.43% and the interest rate on the revolver loan ranged between 6.66% and 9.75% and between 6.03% to 9.25% as of March 31, 2023 and December 31, 2022, respectively.

Pathlight Credit Agreement

On September 23, 2022, the Company's subsidiary, B. Riley Receivables II, LLC, a Delaware limited liability company (the “Borrower”), entered into a credit agreement (the “Pathlight Credit Agreement”) by and among PLC Agent, LLC in the capacity as administrative agent and Pathlight Capital Fund I LP, Pathlight Capital Fund II LP, and Pathlight Capital Fund III LP as the lenders (collectively, “Pathlight”) for a five-year $148,200 term loan. On January 12, 2023, Amendment No. 2 to the Pathlight Credit Agreement increased the term loan by an additional $78,296. On March 31, 2023, Amendment No. 3 to the Pathlight Credit Agreement increased the term loan by an additional $49,890. The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus an applicable margin of 6.50%. As of March 31, 2023 and December 31, 2022, the interest rate on the Pathlight Credit Agreement was 11.40% and 11.01%, respectively.

The Pathlight Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. The Pathlight Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults, and cross defaults. If an event of default occurs, the agent would be

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entitled to take various actions, including the acceleration of amounts due under the outstanding Pathlight Credit Agreement. The Company is in compliance with all financial covenants in the Pathlight Credit Agreement as of March 31, 2023.

Principal outstanding under the Pathlight Credit Agreement is repaid based on collections of the 2022 Badcock Receivable less other application of payments as defined in the Pathlight Credit Agreement and the remaining principal balance is due at final maturity on September 23, 2027. As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $184,358 (net of unamortized debt issuance costs of $3,837) and $118,437 (net of unamortized debt issuance costs of $2,377), respectively. Interest expense on the term loan during the three months ended March 31, 2023 was $6,430 (including amortization of deferred debt issuance costs of $1,744).

Lingo Credit Agreement

On August 16, 2022, the Company's subsidiary, Lingo (the “Borrower”), entered into a credit agreement (the “Lingo Credit Agreement”) by and among the Borrower, the Company as the secured guarantor, and Banc of California, N.A. in its capacity as administrative agent and lender, for a five-year $45,000 term loan. This loan was used to finance part of the purchase of Bullseye by Lingo. On September 9, 2022, Lingo entered into the First Amendment to the Lingo Credit Agreement with Grasshopper Bank (the “New Lender”) for an incremental term loan of $7,500, increasing the principal balance of the term loan to $52,500. On November 10, 2022, Lingo entered into the Second Amendment to the Lingo Credit Agreement with KeyBank National Association for an incremental term loan of $20,500, increasing the principal balance of the term loan to $73,000.

The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus a margin of 3.00% to 3.75% per annum, depending on the consolidated total funded debt ratio as defined in the Lingo Credit Agreement, plus applicable spread adjustment. As of March 31, 2023 and December 31, 2022, the interest rate on the Lingo Credit Agreement was 8.48% and 7.89%, respectively.

The Lingo Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of its businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Lingo Credit Agreement requires the Borrower to maintain certain financial ratios. The Lingo Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts due under the Lingo Credit Agreement. The Company is in compliance with all financial covenants in the Lingo Credit Agreement as of March 31, 2023.

Principal outstanding is due in quarterly installments. Quarterly installments from June 30, 2023 to December 31, 2023 are in the amount of $2,281 per quarter, from March 31, 2024 to December 31, 2024 are in the amount of $2,738 per quarter, from March 31, 2025 to June 30, 2027 are in the amount of $3,650, and the remaining principal balance is due at final maturity on August 16, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $69,778 (net of unamortized debt issuance costs of $940) and $71,985 (net of unamortized debt issuance costs of $1,016), respectively. Interest expense on the term loan during the three months ended March 31, 2023 was $1,561 (including amortization of deferred debt issuance costs of $75).

Nomura Credit Agreement

On June 23, 2021, the Company, and its wholly owned subsidiaries, BR Financial Holdings, LLC (the “Primary Guarantor”), and BR Advisory & Investments, LLC (the “Borrower”) entered into a credit agreement (as amended, the “Credit Agreement”) with Nomura Corporate Funding Americas, LLC, as administrative agent (the “Administrative Agent”), and Wells Fargo Bank, N.A., as collateral agent (the “Collateral Agent”), for a four-year $200,000 secured term loan credit facility (the “Term Loan Facility”) and a four-year $80,000 secured revolving loan credit facility (the “Revolving Credit Facility”).

On December 17, 2021 (the “Amendment Date”), the Company, the Primary Guarantor, and the Borrower entered into a Second Incremental Amendment to Credit Agreement, pursuant to which the Borrower established an incremental facility in an aggregate principal amount of $100,000 (the “Incremental Facility” and the incremental term loans made thereunder,

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the “Incremental Term Loans”) of secured term loans under the Credit Agreement on terms identical to those applicable to the Term Loan Facility. The Borrower borrowed the full amount of the Incremental Term Loans on the Amendment Date. The Term Loan Facility, Revolving Credit Facility, and Incremental Facility (together, the “Credit Facilities”), mature on June 23, 2025, subject to acceleration or prepayment.

SOFR rate loans under the Credit Facilities accrue interest at the term SOFR rate plus a term SOFR adjustment determined by the selected interest period and an applicable margin of 4.50%. Base rate loans accrue interest at the Base Rate plus an applicable margin of 3.50%. In addition to paying interest on outstanding borrowings under the Revolving Credit Facility, the Company is required to pay a quarterly commitment fee based on the unused portion of the Revolving Credit Facility, which is determined by the average utilization of the facility for the immediately preceding fiscal quarter.

Subject to certain eligibility requirements, the assets of certain subsidiaries of the Company that hold credit assets, private equity assets, and public equity assets are placed into a borrowing base, which serves to limit the borrowings under the Credit Facilities. If borrowings under the facilities exceed the borrowing base, the Company is obligated to prepay the loans in an aggregate amount equal to such excess. The Credit Agreement contains certain representations and warranties (subject to certain agreed qualifications) that are customary for financings of this kind.

The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit the Company’s, the Primary Guarantor’s, the Borrower’s, and the Borrower’s subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to enter into restrictive agreements, to make certain investments, loans, advances, guarantees and acquisitions, to prepay certain indebtedness and to pay dividends or to make other distributions or redemptions/repurchases in respect of their respective equity interests. In addition, the Credit Agreement contains a financial covenant that requires the Company to maintain operating earnings before interest, taxes, depreciation, and amortization (EBITDA) of at least $135,000 and the Primary Guarantor to maintain net asset value of at least $1,100,000. The Credit Agreement contains customary events of default, including with respect to a failure to make payments under the credit facilities, cross-default, certain bankruptcy and insolvency events and customary change of control events. The Company is in compliance with all financial covenants in the Credit Agreement as of March 31, 2023.

Commencing on September 30, 2022, the Term Loan Facility and Incremental Facility began to amortize in equal quarterly installments of 1.25% of the aggregate principal amount of the term loan as of the closing date with the remaining balance due at final maturity on June 23, 2025. Quarterly installments from June 30, 2023 to March 31, 2025 are in the amount of $3,750 per quarter.

As of March 31, 2023 and December 31, 2022, the outstanding balances on the Term Loan Facility and Incremental Facility were $283,739 (net of unamortized debt issuance costs of $5,011) and $286,962 (net of unamortized debt issuance costs of $5,538), respectively. Interest on the term loan during the three months ended March 31, 2023 and 2022 was $7,300 (including amortization of deferred debt issuance costs of $527) and $4,102 (including amortization of deferred debt issuance costs of $509, respectively. The interest rate on the term loan as of March 31, 2023 and December 31, 2022 was 9.59% and 9.23%, respectively.

The Company had an outstanding balance of $77,000 and $74,700 under the Revolving Credit Facility as of March 31, 2023 and December 31, 2022, respectively. Interest on the revolving facility during the three months ended March 31, 2023 and 2022 was $1,956 (including amortization of deferred financing costs of $150) and $1,100 (including amortization of deferred financing costs of $143). The interest rate on the revolving facility as of March 31, 2023 and December 31, 2022 was 9.69% and 9.23%, respectively.

BRPAC Credit Agreement

On December 19, 2018, BRPI Acquisition Co LLC (“BRPAC”), a Delaware limited liability company, UOL, and YMAX Corporation, Delaware corporations (collectively, the “Borrowers”), indirect wholly owned subsidiaries of the Company, in the capacity as borrowers, entered into a credit agreement (the “BRPAC Credit Agreement”) with the Banc of California, N.A. in the capacity as agent (the “Agent”) and lender and with the other lenders party thereto (the “Closing Date Lenders”). Certain of the Borrowers’ U.S. subsidiaries are guarantors of all obligations under the BRPAC Credit Agreement and are parties to the BRPAC Credit Agreement in such capacity (collectively, the “Secured Guarantors”; and together with the Borrowers, the “Credit Parties”). In addition, the Company and B. Riley Principal Investments, LLC, the parent corporation of BRPAC and a subsidiary of the Company, are guarantors of the obligations under the BRPAC Credit

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Agreement pursuant to standalone guaranty agreements pursuant to which the shares outstanding membership interests of BRPAC are pledged as collateral.

The obligations under the BRPAC Credit Agreement are secured by first-priority liens on, and first priority security interest in, substantially all of the assets of the Credit Parties, including a pledge of (a) 100% of the equity interests of the Credit Parties; (b) 65% of the equity interests in United Online Software Development (India) Private Limited, a private limited company organized under the laws of India; and (c) 65% of the equity interests in magicJack VocalTec LTD., a limited company organized under the laws of Israel. Such security interests are evidenced by pledge, security, and other related agreements.

The BRPAC Credit Agreement contains certain covenants, including those limiting the Credit Parties’, and their subsidiaries’, ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the BRPAC Credit Agreement requires the Credit Parties to maintain certain financial ratios. The BRPAC Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts due under the BRPAC Credit Agreement. The Company is in compliance with all financial covenants in the BRPAC Credit Agreement as of March 31, 2023.

Through a series of amendments, including the most recent Fourth Amendment to the BRPAC Credit Agreement (the “Fourth Amendment”) on June 21, 2022, the Borrowers, the Secured Guarantors, the Agent and the Closing Date Lenders agreed to the following, among other things: (i) the Lenders agreed to make a new $75,000 term loan to the Borrowers, the proceeds of which the Borrowers’ used to repay the outstanding principal amount of the existing terms loans and optional loans and will use for other general corporate purposes, (ii) a new applicable margin level of 3.50% was established as set forth from the date of the Fourth Amendment, (iii) Marconi Wireless Holdings, LLC (“Marconi Wireless”) was added to the Borrowers, (iv) the maturity date of the term loan was set to June 30, 2027, and (v) the Borrowers were permitted to make certain distributions to the parent company of the Borrowers.

The borrowings under the amended BRPAC Credit Agreement bear interest equal to the term SOFR rate plus a margin of 2.75% to 3.50% per annum, depending on the Borrowers’ consolidated total funded debt ratio as defined in the BRPAC Credit Agreement. As of March 31, 2023 and December 31, 2022, the interest rate on the BRPAC Credit Agreement was 8.23% and 7.65%, respectively.

Principal outstanding under the Amended BRPAC Credit Agreement is due in quarterly installments. Quarterly installments from June 30, 2023 to December 31, 2023 are in the amount of $4,688 per quarter, from March 31, 2024 to December 31, 2026 are in the amount of $3,750 per quarter, on March 31, 2027 is in the amount of $2,813, and the remaining principal balance is due at final maturity on June 30, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $64,061 (net of unamortized debt issuance costs of $627) and $68,674 (net of unamortized debt issuance costs of $701), respectively. Interest expense on the term loan during the three months ended March 31, 2023 and 2022 was $1,443 (including amortization of deferred debt issuance costs of $74) and $502 (including amortization of deferred debt issuance costs of $72), respectively.

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NOTE 12 — SENIOR NOTES PAYABLE

Senior notes payable, net, are comprised of the following:

	March 31, 2023		December 31, 2022
6.750% Senior notes due May 31, 2024	$	199,232	$	199,232
6.500% Senior notes due September 30, 2026	180,532		180,532
6.375% Senior notes due February 28, 2025	146,432		146,432
6.000% Senior notes due January 31, 2028	266,058		266,058
5.500% Senior notes due March 31, 2026	217,440		217,440
5.250% Senior notes due August 31, 2028	405,483		405,483
5.000% Senior notes due December 31, 2026	324,714		324,714
	1,739,891		1,739,891
Less: Unamortized debt issuance costs	(16,914)		(18,140)
	$	1,722,977	$	1,721,751

During the three months ended March 31, 2023 and 2022, the Company issued zero and $20,073, respectively, of senior notes with maturity dates ranging from May 2024 to August 2028 pursuant to At the Market Issuance Sales Agreements with B. Riley Securities, Inc. which governs the program of at-the-market sales of the Company’s senior notes. A series of prospectus supplements were filed by the Company with the SEC in respect of the Company’s offerings of these senior notes.

As of March 31, 2023 and December 31, 2022, the total senior notes outstanding was $1,722,977 (net of unamortized debt issue costs of $16,914) and $1,721,751 (net of unamortized debt issue costs of $18,140) with a weighted average interest rate of 5.75% and 5.75%, respectively. Interest on senior notes is payable on a quarterly basis. Interest expense on senior notes totaled $26,227 and $24,409 during the three months ended March 31, 2023 and 2022, respectively.

Sales Agreement Prospectus to Issue Up to $250,000 of Senior Notes

The most recent sales agreement prospectus was filed by the Company with the SEC on January 5, 2022 (the “Sales Agreement Prospectus”). This program provides for the sale by the Company of up to $250,000 of certain of the Company’s senior notes. As of March 31, 2023 and December 31, 2022, the Company had $70 remaining availability under the Sales Agreement Prospectus.

NOTE 13 — ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following:

	March 31, 2023		December 31, 2022
Accrued payroll and related expenses	$	60,141	$	86,798
Dividends payable	18,360		33,923
Income taxes payable	12,100		14,760
Other tax liabilities	19,617		23,426
Contingent consideration	28,884		31,046
Accrued expenses	79,520		68,180
Other liabilities	44,713		64,841
Accrued expenses and other liabilities	$	263,335	$	322,974

Other tax liabilities primarily consist of uncertain tax positions, sales and VAT taxes payable, and other non-income tax liabilities. Accrued expenses primarily consist of accrued trade payables, investment banking payables and legal settlements. Other liabilities primarily consist of interest payables, customer deposits, and accrued legal fees.

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NOTE 14 — REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue from contracts with customers by the Company's six reportable operating segments and the All Other category during the three months ended March 31, 2023 and 2022 was as follows:

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Revenues for the three months ended March 31, 2023
Corporate finance, consulting and investment banking fees	$	39,149	$	—	$	—	$	14,515	$	—	$	—	$	—	$	53,664
Wealth and asset management fees	664		43,310		—		—		—		—		—		43,974
Commissions, fees and reimbursed expenses	9,218		3,928		5,444		10,495		—		—		—		29,085
Subscription services	—		—		—		—		83,008		—		—		83,008
Sale of goods	—		—		216		—		1,867		65,694		—		67,777
Advertising, licensing and other	—		—		—		—		2,044		4,309		9,273		15,626
Total revenues from contracts with customers	49,031		47,238		5,660		25,010		86,919		70,003		9,273		293,134
Interest income - Loans and securities lending	77,186		—		—		—		—		—		—		77,186
Trading (loss) gain on investments	7,020		1,272		—		—		—		—		—		8,292
Fair value adjustment on loans	43,276		—		—		—		—		—		—		43,276
Other	8,898		1,304		—		—		—		—		—		10,202
Total revenues	$	185,411	$	49,814	$	5,660	$	25,010	$	86,919	$	70,003	$	9,273	$	432,090

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	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Revenues for the three months ended March 31, 2022
Corporate finance, consulting and investment banking fees	$	41,673	$	—	$	—	$	16,970	$	—	$	—	$	—	$	58,643
Wealth and asset management fees	2,400		64,222		—		—		—		—		—		66,622
Commissions, fees and reimbursed expenses	12,045		12,849		3,355		8,966		—		—		—		37,215
Subscription services	—		—		—		—		27,813		—		—		27,813
Sale of goods	—		—		—		—		1,878		—		—		1,878
Advertising, licensing and other	—		—		—		—		2,274		4,557		699		7,530
Total revenues from contracts with customers	56,118		77,071		3,355		25,936		31,965		4,557		699		199,701
Interest income - Loans and securities lending	61,426		—		—		—		—		—		—		61,426
Trading (loss) gain on investments	(30,738)		522		—		—		—		—		—		(30,216)
Fair value adjustment on loans	10,938		—		—		—		—		—		—		10,938
Other	5,105		(114)		—				—		—		—		4,991
Total revenues	$	102,849	$	77,479	$	3,355	$	25,936	$	31,965	$	4,557	$	699	$	246,840

Contract Balances

The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligation(s) are satisfied. Receivables related to revenues from contracts with customers totaled $120,853 and $149,110 as of March 31, 2023 and December 31, 2022, respectively. The Company had no significant impairments related to these receivables during the three months ended March 31, 2023 and 2022. The Company also has $14,857 and $14,144 of unbilled receivables included in prepaid expenses and other assets as of March 31, 2023 and December 31, 2022, respectively. The Company’s deferred revenue primarily relates to retainer and milestone fees received from corporate finance and investment banking advisory engagements, asset management agreements, financial consulting engagements, subscription services where the performance obligation has not yet been satisfied and license agreements with guaranteed minimum royalty payments and advertising/marketing fees with

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additional royalty revenue based on a percentage of defined sales. Deferred revenue as of March 31, 2023 and December 31, 2022 was $84,019 and $85,441, respectively. The Company expects to recognize the deferred revenue of $84,019 as of March 31, 2023 as service and fee revenues when the performance obligation is met during the years ended December 31, 2023 (remaining nine months), 2024, 2025, 2026 and 2027 in the amount of $54,839, $13,350, $7,449, $3,552, and $1,780, respectively. The Company expects to recognize the deferred revenue of $3,049 after December 31, 2027.

During the three months ended March 31, 2023 and 2022, the Company recognized revenue of $22,502 and $14,939 that was recorded as deferred revenue at the beginning of the respective year.

Contract Costs

Contract costs include: (1) costs to fulfill contracts associated with corporate finance and investment banking engagements are capitalized where the revenue is recognized at a point in time and the costs are determined to be recoverable; (2) costs to fulfill Auction and Liquidation services contracts where the Company guarantees a minimum recovery value for goods being sold at auction or liquidation where the revenue is recognized over time when the performance obligation is satisfied; and (3) commissions paid to obtain magicJack contracts which are recognized ratably over the contract term and third party support costs for magicJack and related equipment purchased by customers which are recognized ratably over the service period.

The capitalized costs to fulfill a contract were $7,190 and $5,990 as of March 31, 2023 and December 31, 2022, respectively, and are recorded in prepaid expenses and other assets in the condensed consolidated balance sheets. For the three months ended March 31, 2023 and 2022, the Company recognized expenses of $1,015 and $915 related to capitalized costs to fulfill a contract, respectively. There were no significant impairment charges recognized in relation to these capitalized costs during the three months ended March 31, 2023 and 2022.

Remaining Performance Obligations and Revenue Recognized from Past Performance

The Company does not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material as of March 31, 2023. Corporate finance and investment banking fees and retail liquidation engagement fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price as of March 31, 2023.

NOTE 15 — INCOME TAXES

The Company’s effective income tax rate was a provision of 32.4% during the three months ended March 31, 2023 and a benefit of 28.7% during the three months ended March 31, 2022.

As of March 31, 2023, the Company had federal net operating loss carryforwards of $55,349 and state net operating loss carryforwards of $46,981, respectively. The Company’s federal net operating loss carryforwards will expire in the tax years commencing in December 31, 2033 through December 31, 2038. The state net operating loss carryforwards will expire in the tax years commencing in December 31, 2030.

The Company establishes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits of operating loss, capital loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. The Company’s net operating losses are subject to annual limitations in accordance with Internal Revenue Code Section 382. Accordingly, the Company is limited to the amount of net operating loss that may be utilized in future taxable years depending on the Company’s actual taxable income. As of March 31, 2023, the Company believes that the existing net operating loss carryforwards will be utilized in future tax periods before the loss carryforwards expire and it is more-likely-than-not that future taxable earnings will be sufficient to realize its deferred tax assets and has not provided a valuation allowance. The Company does not believe that it is more likely than not that the Company will be able to utilize the benefits related to capital loss carryforwards and has provided a valuation allowance in the amount of $66,308 against these deferred tax assets.

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The Company files income tax returns in the U.S., various state and local jurisdictions, and certain other foreign jurisdictions. The Company is currently under audit by certain federal, state and local, and foreign tax authorities. The audits are in varying stages of completion. The Company evaluates its tax positions and establishes liabilities for uncertain tax positions that may be challenged by tax authorities. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, case law developments and closing of statutes of limitations. Such adjustments are reflected in the provision for income taxes, as appropriate. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the calendar years ended December 31, 2019 to 2022.

Inflation Reduction Act of 2022

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into law. The IR Act provides for, among other things, a new U.S. federal excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of public traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of Treasury has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. The Company does not expect the IR Act to have a material impact on its financial position and result of operations.

NOTE 16 — EARNINGS PER SHARE

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 3(l)). 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 1,999,273 and 1,350,062 for the three months ended March 31, 2023 and 2022, respectively, because to do so would have been anti-dilutive.

Basic and diluted earnings per share were calculated as follows:

	Three Months Ended March 31,
	2023		2022
Net income (loss) attributable to B. Riley Financial, Inc.	$	17,155	$	(10,062)
Preferred stock dividends	(2,012)		(2,002)
Net income (loss) applicable to common shareholders	$	15,143	$	(12,064)
Weighted average common shares outstanding:
Basic	28,585,337		27,855,033
Effect of dilutive potential common shares:
Restricted stock units and warrants	928,098		—
Diluted	29,513,435		27,855,033
Basic income (loss) per common share	$	0.53	$	(0.43)
Diluted income (loss) per common share	$	0.51	$	(0.43)

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NOTE 17 — COMMITMENTS AND CONTINGENCIES

(a) Legal Matters

The Company is subject to certain legal and other claims that arise in the ordinary course of its business. In particular, the Company and its subsidiaries are named in and subject to various proceedings and claims arising primarily from the Company’s securities business activities, including lawsuits, arbitration claims, class actions, and regulatory matters. Some of these claims seek substantial compensatory, punitive, or indeterminate damages. The Company and its subsidiaries are also involved in other reviews, investigations, and proceedings by governmental and self-regulatory organizations regarding the Company’s business, which may result in adverse judgments, settlements, fines, penalties, injunctions, and other relief. In view of the number and diversity of claims against the Company, the number of jurisdictions in which litigation is pending, and the inherent difficulty of predicting the outcome of litigation and other claims, the Company cannot state with certainty what the eventual outcome of pending litigation or other claims will be. Notwithstanding this uncertainty, the Company does not believe that the results of these claims are likely to have a material effect on its financial position or results of operations.

(b) Babcock & Wilcox Commitments and Guarantees

On June 30, 2021, the Company agreed to guaranty (the “B. Riley Guaranty”) up to $110,000 of obligations that B&W may owe to providers of cash collateral pledged in connection with B&W’s debt financing. The B. Riley Guaranty is enforceable in certain circumstances, including, among others, certain events of default and the acceleration of B&W’s obligations under a reimbursement agreement with respect to such cash collateral. B&W will pay the Company $935 per annum in connection with the B. Riley Guaranty. B&W has agreed to reimburse the Company to the extent the B. Riley Guaranty is called upon. The B. Riley Guaranty was in respect of up to $100,000 of B&W obligations after B&W made paydowns of $10,000 during the year ended December 31, 2022.

On August 10, 2020, the Company entered into a project specific indemnity rider to a general agreement of indemnity made by B&W in favor of one of its sureties. Pursuant to the indemnity rider, the Company agreed to indemnify the surety in connection with a default by B&W under the underlying indemnity agreement relating to a $29,970 payment and performance bond issued by the surety in connection with a construction project undertaken by B&W. In consideration for providing the indemnity rider, B&W paid the Company fees in the amount of $600 on August 26, 2020.

On December 22, 2021, the Company entered into a general agreement of indemnity in favor of one of B&W’s sureties. Pursuant to this indemnity agreement, the Company agreed to indemnify the surety in connection with a default by B&W under a 30,000€ payment and performance bond issued by the surety in connection with a construction project undertaken by B&W. In consideration for providing the indemnity, B&W paid the Company fees in the amount of $1,694 on January 20, 2022.

(c) Other Commitments

In the normal course of business, the Company enters into commitments to its clients in connection with capital raising transactions, such as firm commitment underwritings, equity lines of credit, or other commitments to provide financing on specified terms and conditions. These commitments require the Company to purchase securities at a specified price or otherwise provide debt or equity financing on specified terms. Securities underwriting exposes the Company to market and credit risk, primarily in the event that, for any reason, securities purchased by the Company cannot be distributed at the anticipated price and to balance sheet risk in the event that debt or equity financing commitments cannot be syndicated.

NOTE 18 — SHARE-BASED PAYMENTS

(a) Employee Stock Incentive Plans

Under the 2021 Stock Incentive Plan (the “2021 Plan”), share-based compensation expense for restricted stock units under the Company’s 2021 Plan was $13,312 and $16,860 during the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, in connection with employee stock incentive plans, the Company granted 502,824 restricted stock units with a grant date fair value of $19,338. During the three months ended March 31, 2022, in connection with employee stock incentive plans, the Company granted 161,559 restricted stock units with a grant date fair value of $11,863 and 65,000 performance based restricted stock units with a grant date fair value of $2,329. The restricted stock units generally vest over a period of one to five years based on continued service. Performance

40

based restricted stock units generally vest based on both the employee’s continued service and the achievement of a set threshold of the Company’s common stock price, as defined in the grant, during the two to three-year period following the grant. In determining the fair value of restricted stock units on the grant date, the fair value is adjusted for (a) estimated forfeitures, (b) expected dividends based on historical patterns and the Company’s anticipated dividend payments over the expected holding period and (c) the risk-free interest rate based on U.S. Treasuries for a maturity matching the expected holding period.

(b) Employee Stock Purchase Plan

In connection with the Company’s Employee Stock Purchase Plan ("Purchase Plan"), share based compensation was $298 and $153 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, there were 362,986 shares reserved for issuance under the Purchase Plan.

(c) Common Stock

Since October 30, 2018, the Company’s Board of Directors has authorized annual share repurchase programs of up to $50,000 of its outstanding common shares. All share repurchases were effected on the open market at prevailing market prices or in privately negotiated transactions. During the three months ended March 31, 2023 and 2022, the Company repurchased 1,452,831 shares of its common stock for $53,688, which represents an average price of $36.95 per common share and zero shares of its common stock, respectively. The shares repurchased under the program are retired. On October 31, 2022, the share repurchase program was reauthorized by the Board of Directors for share repurchases up to $50,000 of the Company's outstanding common shares and the reauthorized program expires in October 2023.

(d) Preferred Stock

During the three months ended March 31, 2023 and 2022, the Company issued zero and 19 depository shares of the Series A Preferred Stock, respectively. There were 2,834 shares issued and outstanding as of March 31, 2023 and December 31, 2022. Total liquidation preference for the Series A Preferred Stock as of March 31, 2023 and December 31, 2022 was $70,854. Dividends on the Series A preferred paid during the three months ended March 31, 2023 and 2022 were $0.4296875 per depository share, respectively.

During the three months ended March 31, 2023 and 2022, the Company issued 18 and 4 depository shares of the Series B Preferred Stock. There were 1,729 and 1,710 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively. Total liquidation preference for the Series B Preferred Stock as of March 31, 2023 and December 31, 2022 was $43,228 and $42,761, respectively. Dividends on the Series B preferred paid during the three months ended March 31, 2023 and 2022 were $0.4609375 per depository share, respectively.

NOTE 19 — NET CAPITAL REQUIREMENTS

B. Riley Securities (“BRS”) and B. Riley Wealth Management (“BRWM”), the Company’s broker-dealer subsidiaries, are registered with the SEC as broker-dealers and members of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Company’s broker-dealer subsidiaries are subject to SEC Uniform Net Capital Rule (Rule 15c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As such, they are subject to the minimum net capital requirements promulgated by the SEC. As of March 31, 2023, BRS had net capital of $146,827, which was $142,696 in excess of required minimum net capital of $4,131; and BRWM had net capital of $11,105, which was $8,780 in excess of required minimum net capital of $2,325.

As of December 31, 2022, BRS had net capital of $175,503, which was $169,458 in excess of its required minimum net capital of $6,045; and BRWM had net capital of $11,144, which was $8,615 in excess of its required minimum net capital of $2,529.

NOTE 20 — RELATED PARTY TRANSACTIONS

The Company provides asset management and placement agent services to unconsolidated funds affiliated with the Company (the “Funds”). In connection with these services, the Funds may bear certain operating costs and expenses which are initially paid by the Company and subsequently reimbursed by the Funds.

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As of March 31, 2023 and December 31, 2022, amounts due from related parties of $372 and $1,081, respectively, were due from the Funds for management fees and other operating expenses.

In June 2020, the Company entered into an investment advisory services agreement with Whitehawk Capital Partners, L.P. (“Whitehawk”), a limited partnership controlled by Mr. J. Ahn, who is the brother of Phil Ahn, the Company’s Chief Financial Officer and Chief Operating Officer. Whitehawk has agreed to provide investment advisory services for two of the funds, GACP I, L.P. and GACP II, L.P. During the three months ended March 31, 2023 and 2022, management fees paid for investment advisory services by Whitehawk was $1,142 and $1,079, respectively.

The Company periodically participates in loans and financing arrangements for which the Company has an equity ownership and representation on the board of directors (or similar governing body). The Company may also provide consulting services or investment banking services to raise capital for these companies. These transactions can be summarized as follows:

Babcock and Wilcox

During the three months ended March 31, 2023 and 2022, the Company earned zero and $53, respectively, of underwriting and financial advisory and other fees from B&W in connection with B&W’s capital raising activities.

One of the Company’s wholly owned subsidiaries entered into a services agreement with B&W that provided for the President of the Company to serve as the Chief Executive Officer of B&W until November 30, 2020 (the “Executive Consulting Agreement”), unless terminated by either party with thirty days written notice. The agreement was extended through December 31, 2023. Under this agreement, fees for services provided are $750 per annum, paid monthly. In addition, subject to the achievement of certain performance objectives as determined by B&W’s compensation committee of the board, a bonus or bonuses may also be earned and payable to the Company. In March 2022, a $1,000 performance fee was approved in accordance with the Executive Consulting Agreement.

The Company is also a party to indemnification agreements for the benefit of B&W, and the B. Riley Guaranty, each as disclosed above in Note 17 – Commitments and Contingencies.

The Arena Group Holdings, Inc. (fka the Maven, Inc.)

The Company has loans receivable due from the Arena Group Holdings, Inc. (fka the Maven, Inc.) ("Arena") included in loans receivable, at fair value of $97,062 and $98,729 as of March 31, 2023 and December 31, 2022, respectively. Interest on these loans is payable at 10% per annum with maturity dates through December 2023. During the three months ended March 31, 2023 and 2022, the Company earned zero and $2,021 underwriting and financial advisory and other fees from Arena in connection with Arena's capital raising activities, respectively.

California Natural Resources Group, LLC

On November 1, 2021, the Company extended a $34,393 bridge promissory note bearing interest at up to 10.0% per annum to California Natural Resources Group, LLC (“CalNRG”). On January 3, 2022, CalNRG repaid the promissory note using proceeds from a new credit facility with a third party bank (the “CalNRG Credit Facility”). The Company has guaranteed CalNRG’s obligations, up to $10,375, under the CalNRG Credit Facility.

Faze Clan

On March 9, 2022, the Company loaned $10,000 to Faze Clan, Inc. (“Faze”) pursuant to a bridge credit agreement (the “Bridge Agreement”). On April 25, 2022, the Company loaned an additional $10,000 pursuant to the Bridge Agreement. All principal and accrued interest pursuant to the Bridge Agreement was repaid upon closing of Faze’s business combination (the “Business Combination”) with BRPM 150, which following the Business Combination changed its name to Faze Holdings. As a result of the Business Combination, BRPM 150 is no longer a VIE of the Company. On July 19, 2022, in connection with the Business Combination, the Company purchased 5,342,500 shares of Faze Holdings Class A common stock for $10.00 per share. During the year ended December 31, 2022, the Company earned $41,885 of incentive fees for the de-consolidation of BRPM 150 and $9,632 of underwriting and financial advisory fees from Faze and BRPM 150 in connection with the Business Combination and capital raising activities.

Lingo

42

On May 31, 2022, the Company converted $17,500 of a loan receivable with Lingo into equity and the Company's ownership interest in Lingo increased from 40% to 80%. On February 24, 2023, the Company acquired the remaining 20% ownership in Lingo, increasing the Company's ownership interest to 100%.

Targus

On October 18, 2022, the Company acquired all of the issued and outstanding shares of Targus for total purchase consideration of $247,546 as more fully discussed in Note 4. At the time of the acquisition, the chief executive officer of Targus was also a member of the Company’s board of directors. Upon closing the acquisition, the individual resigned from the Company’s board of directors and continues to serve as the chief executive officer of Targus.

Other

During the three months ended March 31, 2023, the Company sold a loan receivable including accrued interest in the amount of $7,600 to two related parties. BRC Partners Opportunity Fund, LP (“BRCPOF”) purchased $3,519 of the loan receivable including accrued interest and 272 Capital L.P. (“272LP”) purchased $4,081 of the loan receivable including accrued interest, both of the partnerships are private equity funds managed by one of the Company’s subsidiaries. Our executive officers and members of our board of directors have 70.4% financial interest, which includes a financial interest of Bryant Riley, our Co-Chief Executive Officer, of 41.0% in the BRCPOF as of March 31, 2023. Our executive officers and members of our board of directors have a 13.6% financial interest in the 272LP as of March 31, 2023.

The Company often provides consulting or investment banking services to raise capital for companies in which the Company has significant influence through equity ownership, representation on the board of directors (or similar governing body), or both. During the three months ended March 31, 2023 and 2022, the Company earned $784 and $1,880 of fees related to these services, respectively.

NOTE 21 — BUSINESS SEGMENTS

The Company’s business is classified into six reportable operating segments: the Capital Markets segment, Wealth Management segment, Auction and Liquidation segment, Financial Consulting segment, Communications segment, and Consumer segment. These reportable segments are all distinct businesses, each with a different marketing strategy and management structure. During the fourth quarter of 2022, the Company realigned its segment reporting structure to reflect organizational changes from recent acquisitions and the manner in which capital is allocated. The Consumer segment includes the previously reported Brands segment and Targus, which the Company acquired in the fourth quarter of 2022. The Company has also re-aligned its previously reported Principal Investments - Communications and Other segment into the Communications segment and the All Other category that is reported with Corporate and Other below.

The following is a summary of certain financial data for each of the Company’s reportable segments:

	Three Months Ended March 31,
	2023		2022
Capital Markets segment:			(As Restated)
Revenues - Services and fees	$	57,929	$	61,223
Trading income (loss) and fair value adjustments on loans	50,296		(19,800)
Interest income - Loans and securities lending	77,186		61,426
Total revenues	185,411		102,849
Selling, general and administrative expenses	(65,711)		(34,117)
Interest expense - Securities lending and loan participations sold	(32,424)		(11,766)
Depreciation and amortization	(1,256)		(1,893)
Segment income	86,020		55,073
Wealth Management segment:
Revenues - Services and fees	48,542		76,957
Trading income and fair value adjustments on loans	1,272		522
Total revenues	49,814		77,479

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Selling, general and administrative expenses	(47,322)	(85,742)
Restructuring charge	(33)	—
Depreciation and amortization	(1,086)	(1,833)
Segment income (loss)	1,373	(10,096)
Auction and Liquidation segment:
Revenues - Services and fees	5,444	3,355
Revenues - Sale of goods	216	—
Total revenues	5,660	3,355
Direct cost of services	(3,128)	(2,335)
Cost of goods sold	(52)	—
Selling, general and administrative expenses	(2,280)	(1,820)
Segment income (loss)	200	(800)
Financial Consulting segment:
Revenues - Services and fees	25,010	25,936
Selling, general and administrative expenses	(21,149)	(20,943)
Depreciation and amortization	(78)	(81)
Segment income	3,783	4,912
Communications segment:
Revenues - Services and fees	85,052	30,087
Revenues - Sale of goods	1,867	1,878
Total revenues	86,919	31,965
Direct cost of services	(44,733)	(9,316)
Cost of goods sold	(2,168)	(2,251)
Selling, general and administrative expenses	(22,544)	(8,245)
Restructuring charge	(60)	—
Depreciation and amortization	(6,631)	(3,184)
Segment income	10,783	8,969
Consumer segment:
Revenues - Services and fees	4,309	4,557
Revenues - Sale of goods	65,694	—
Total revenues	70,003	4,557
Cost of goods sold	(45,406)	—
Selling, general and administrative expenses	(20,112)	(756)
Depreciation and amortization	(2,839)	(583)
Segment income	1,646	3,218
Consolidated operating income from reportable segments	103,805	61,276
All Other:
Revenues - Services and fees	9,273	699
Direct cost of services	(6,536)	—
Corporate and other expenses	(21,619)	(16,002)
Interest income	2,574	67
Dividend income	13,204	7,861
Realized and unrealized losses on investments	(28,442)	(49,112)
Change in fair value of financial instruments and other	(209)	5,981
(Loss) income on equity investments	(10)	6,775
Interest expense	(47,561)	(30,436)

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Income (loss) before income taxes	24,479		(12,891)
(Provision for) benefit from income taxes	(7,919)		3,695
Net income (loss)	16,560		(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)		866
Net income (loss) attributable to B. Riley Financial, Inc.	17,155		(10,062)
Preferred stock dividends	2,012		2,002
Net income (loss) available to common shareholders	$	15,143	$	(12,064)

The following table presents revenues by geographical area:

	Three Months Ended March 31,
	2023		2022
			(As Restated)
Revenues:
Revenues - Services and fees:
North America	$	234,930	$	200,861
Europe	629		1,953
Total Revenues - Services and fees	235,559		202,814
Trading income (loss) and fair value adjustments on loans
North America	51,568		(19,278)
Revenues - Sale of goods
North America	37,947		1,878
Australia	3,459		—
Europe, Middle East, and Africa	17,428		—
Asia	6,224		—
Latin America	2,719		—
Total Revenues - Sale of goods	67,777		1,878
Revenues - Interest income - Loans and securities lending:
North America	77,186		61,426
Total Revenues:
North America	401,631		244,887
Australia	3,459		—
Europe, Middle East, and Africa	18,057		1,953
Asia	6,224		—
Latin America	2,719		—
Total Revenues	$	432,090	$	246,840

The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:

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	March 31, 2023		December 31, 2022
Long-lived Assets - Property and Equipment, net:
North America	$	26,770	$	26,276
Europe	532		577
Asia Pacific	165		162
Australia	110		126
Total	$	27,577	$	27,141

Segment assets are not reported to, or used by, the Company’s Chief Operating Decision Maker to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “future,” “intend,” “seek,” “likely,” “potential” or “continue,” the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we, nor any other person, assume responsibility for the accuracy and completeness of the forward-looking statements. We are under no obligation to update any of the forward-looking statements after the filing of this Quarterly Report to conform such statements to actual results or to changes in our expectations.

The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes and other financial information appearing elsewhere in this Quarterly Report. Readers are also urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business, including without limitation the disclosures made in Item 1A of Part II of this Quarterly Report under the caption “Risk Factors.”

Risk factors that could cause actual results to differ from those contained in the forward-looking statements include but are not limited to risks related to: volatility in our revenues and results of operations; changing conditions in the financial markets; our ability to generate sufficient revenues to achieve and maintain profitability; our exposure to credit risk; the short term nature of our engagements; the accuracy of our estimates and valuations of inventory or assets in “guarantee” based engagements; failure to successfully compete in any of our businesses; potential losses related to our auction or liquidation engagements; our dependence on communications, information and other systems and third parties; potential losses related to purchase transactions in our auction and liquidations business; the potential loss of financial institution clients; potential losses from or illiquidity of our proprietary investments; changing economic and market conditions, including increasing inflation and actions by the Federal Reserve to address inflation and the possibility of recession or an economic downturn; the continuing effects of the COVID-19 pandemic, or other pandemics or severe public health crises, and other related impacts including supply chain disruptions, labor shortages and increased labor costs; potential liability and harm to our reputation if we were to provide an inaccurate appraisal or valuation; potential mark-downs in inventory in connection with purchase transactions; loss of key personnel; our ability to borrow under our credit facilities or at-the-market offering as necessary; failure to comply with the terms of our credit agreements or senior notes; our ability to meet future capital requirements; our ability to realize the benefits of our completed acquisitions, including our ability to achieve anticipated opportunities and cost savings, and accretion to reported earnings estimated to result from completed and proposed acquisitions in the time frame expected by management or at all; the diversion of management time on acquisition-related issues; the failure of our brand investment portfolio licensees to pay us royalties; and the effect of geopolitical instability, including wars, conflicts and terrorist attacks, including the impacts of Russia’s invasion of Ukraine. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Except as otherwise required by the context, references in this Quarterly Report to the “Company,” “B. Riley,” “B. Riley Financial,” “we,” “us” or “our” refer to the combined business of B. Riley Financial, Inc. and all of its subsidiaries.

Overview

Restatement of Previously Issued Consolidated Financial Statements

We have restated certain previously reported financial information for the years ended March 31, 2022 and 2021 in this Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, including but not limited to information within the Results of Operations and Revenue sections. See the Explanatory Note preceding Part I, Financial Information, for background on the restatement, the fiscal periods impacted, and other information.

Description of the Company

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B. Riley Financial, Inc. (Nasdaq: RILY) (the “Company”) is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. We operate through several consolidated subsidiaries (collectively, “B. Riley”) that provide investment banking, brokerage, wealth management, asset management, direct lending, business advisory, valuation, and asset disposition services to a broad client base spanning public and private companies, financial sponsors, investors, financial institutions, legal and professional services firms, and individuals.

The Company opportunistically invests in and acquires companies or assets with attractive risk-adjusted return profiles to benefit our shareholders. We own and operate several uncorrelated consumer businesses and invest in brands on a principal basis. Our approach is focused on high quality companies and assets in industries in which we have extensive knowledge and can benefit from our experience to make operational improvements and maximize free cash flow. Our principal investments often leverage the financial, restructuring, and operational expertise of our professionals who work collaboratively across disciplines.

We refer to B. Riley as a “platform” because of the unique composition of our business. Our platform has grown considerably and become more diversified over the past several years. We have increased our market share and expanded the depth and breadth of our businesses both organically and through opportunistic acquisitions. Our increasingly diversified platform enables us to invest opportunistically and to deliver strong long-term investment performance throughout a range of economic cycles.

We are headquartered in Los Angeles, California and maintain offices throughout the U.S. including in New York, Chicago, Metro District of Columbia, Atlanta, Boston, Dallas, Metro Detroit, Houston, Memphis, Miami, San Francisco, Boca Raton, and West Palm Beach.

We report our activities in six reportable business segments: Capital Markets, Wealth Management, Financial Consulting, Auction and Liquidation, Communications, and Consumer segment. During the fourth quarter of 2022, we realigned our segment reporting structure to reflect organizational changes from recent acquisitions and the manner in which capital is allocated. The Consumer segment includes the previously reported Brands segment and Targus, which we acquired in the fourth quarter of 2022. We have also re-aligned our previously reported Principal Investments - Communications and Other segment into the Communications segment and the All Other category that is reported with Corporate and Other.

Recent Developments

Our diversified financial platform is affected by a variety of factors including the continuing high inflation, the actions by the Federal Reserve to address inflation, the possibility of recession or an economic downturn, Russia's invasion of Ukraine, and rising energy prices. These factors create uncertainty about the future economic environment which will continue to evolve and may impact our business in future periods. These developments and the impact on the financial markets and the overall economy continue to be highly uncertain and cannot be predicted. If the financial markets and/or the overall economy continue to be impacted, our results of operations, financial position, and cash flows may be materially adversely affected.

Results of Operations

The following period to period comparisons of our financial results and our interim results are not necessarily indicative of future results.

Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022

Condensed Consolidated Statements of Operations

(Dollars in thousands)

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	Three Months Ended March 31,				Change
	2023		2022		Amount		%
Revenues:			(As Restated)
Services and fees	$	235,559	$	202,814	$	32,745	16.1	%
Trading income (loss) and fair value adjustments on loans	51,568		(19,278)		70,846		n/m
Interest income - Loans and securities lending	77,186		61,426		15,760		25.7	%
Sale of goods	67,777		1,878		65,899		n/m
Total revenues	432,090		246,840		185,250		75.0	%
Operating expenses:
Direct cost of services	54,397		11,651		42,746		n/m
Cost of goods sold	47,626		2,251		45,375		n/m
Selling, general and administrative expenses	212,627		175,199		37,428		21.4	%
Restructuring charge	93		—		93		100.0	%
Interest expense - Securities lending and loan participations sold	32,424		11,766		20,658		175.6	%
Total operating expenses	347,167		200,867		146,300		72.8	%
Operating income	84,923		45,973		38,950		84.7	%
Other income (expense):
Interest income	2,574		67		2,507		n/m
Dividend income	13,204		7,861		5,343		68.0	%
Realized and unrealized losses on investments	(28,442)		(49,112)		20,670		(42.1)	%
Change in fair value of financial instruments and other	(209)		5,981		(6,190)		100.0	%
(Loss) income from equity investments	(10)		6,775		(6,785)		(100.1)	%
Interest expense	(47,561)		(30,436)		(17,125)		56.3	%
Income (loss) before income taxes	24,479		(12,891)		37,370		n/m
(Provision for) benefit from income taxes	(7,919)		3,695		(11,614)		n/m
Net income (loss)	16,560		(9,196)		25,756		n/m
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)		866		(1,461)		(168.7)	%
Net income (loss) attributable to B. Riley Financial, Inc.	17,155		(10,062)		27,217		n/m
Preferred stock dividends	2,012		2,002		10		0.5	%
Net income (loss) available to common shareholders	$	15,143	$	(12,064)	$	27,207	n/m
n/m - Not applicable or not meaningful.

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Revenues

The table below and the discussion that follows are based on how we analyze our business.

	Three Months Ended March 31,				Change
	2023		2022		Amount		%
Revenues - Services and fees:			(As Restated)
Capital Markets segment	$	57,929	$	61,223	$	(3,294)	(5.4)	%
Wealth Management segment	48,542		76,957		(28,415)		(36.9)	%
Auction and Liquidation segment	5,444		3,355		2,089		62.3	%
Financial Consulting segment	25,010		25,936		(926)		(3.6)	%
Communications segment	85,052		30,087		54,965		182.7	%
Consumer segment	4,309		4,557		(248)		(5.4)	%
All Other	9,273		699		8,574		n/m
Subtotal	235,559		202,814		32,745		16.1	%
Revenues - Sale of goods:
Auction and Liquidation segment	216		—		216		100.0	%
Communications segment	1,867		1,878		(11)		(0.6)	%
Consumer segment	65,694		—		65,694		100.0	%
Subtotal	67,777		1,878		65,899		n/m
Trading income (loss) and fair value adjustments on loans
Capital Markets segment	50,296		(19,800)		70,096		n/m
Wealth Management segment	1,272		522		750		143.7	%
Subtotal	51,568		(19,278)		70,846		n/m
Interest income - Loans and securities lending:
Capital Markets segment	77,186		61,426		15,760		25.7	%
Total revenues	$	432,090	$	246,840	$	185,250	75.0	%

_______________________________________________

n/m - Not applicable or not meaningful.

Total revenues increased approximately $185.3 million to $432.1 million during the three months ended March 31, 2023 from $246.8 million during the three months ended March 31, 2022. The increase in revenues during the three months ended March 31, 2023 was primarily due to an increase in revenue from trading (loss) income and fair value adjustments on loans of $70.8 million, sale of goods of $65.9 million, services and fees of $32.7 million, and an increase in revenue interest income from loans and securities lending of $15.8 million. The increase in revenue from services and fees in the three months ended March 31, 2023 consisted of increases in revenue of $55.0 million in the Communications segment, $8.6 million in All Other, and $2.1 million in the Auction and Liquidation segment, partially offset by decreases in revenues of $28.4 million in the Wealth Management segment, $3.3 million in the Capital Markets segment, $0.9 million in the Financial Consulting segment, and $0.2 million in the Consumer segment.

Revenues from services and fees in the Capital Markets segment decreased $3.3 million to $57.9 million during the three months ended March 31, 2023 from $61.2 million during the three months ended March 31, 2022. The decrease in revenues was primarily due to decreases of $2.8 million of commission fees, $2.5 million of corporate finance, consulting, and investment banking fees, and $1.7 million of asset management fees, partially offset by an increase of $3.8 million in other income.

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Revenues from services and fees in the Wealth Management segment decreased $28.4 million to $48.5 million during the three months ended March 31, 2023 from $77.0 million during the three months ended March 31, 2022. The decrease in revenues was primarily due to a decrease in revenue of $20.9 million from wealth and asset management fees and $8.9 million of commission fees, partially offset by an increase of $1.4 million in other income.

Revenues from services and fees in the Auction and Liquidation segment increased $2.1 million to $5.4 million during the three months ended March 31, 2023 from $3.4 million during the three months ended March 31, 2022. The increase in revenues was primarily due to an increase in retail fee liquidation engagements.

Revenues from services and fees in the Financial Consulting segment decreased $0.9 million to $25.0 million during the three months ended March 31, 2023 from $25.9 million during the three months ended March 31, 2022. The decrease in revenues was primarily due to a decrease of $2.2 million within our Real Estate division, partially offset by an increase of $1.3 million within our Advisory Services division.

Revenues from services and fees in the Communications segment increased $55.0 million to $85.1 million during the three months ended March 31, 2023 from $30.1 million during the three months ended March 31, 2022. The increase in revenues was primarily due to an increase of $29.4 million in subscription services from the acquisition of BullsEye Telecom (“BullsEye”) in the third quarter of 2022, $28.4 million in subscription services from the acquisition of the remaining non-controlling interests in Lingo Management, LLC (“Lingo”) in the second quarter of 2022, partially offset by decreases in subscription revenue of $2.6 million for United Online, Inc. (“UOL”), magicJack VocalTec Ltd. (“magicJack”), and Marconi Wireless Holdings, LLC (“Marconi”). We expect the subscription revenue to continue to decline year over year.

Revenues from services and fees in the Consumer segment decreased $0.2 million to $4.3 million during the three months ended March 31, 2023 from $4.6 million during the three months ended March 31, 2022. The primary source of revenue from services and fees included in this segment is the licensing of trademarks.

Revenues from services and fees in All Other, which includes the operations of a regional environmental services business and a landscaping business that we acquired in 2022, increased $8.6 million to $9.3 million during the three months ended March 31, 2023 from $0.7 million during the three months ended March 31, 2022.

Trading income (loss) and fair value adjustments on loans increased $70.8 million to income of $51.6 million during the three months ended March 31, 2023 compared to a loss of $19.3 million during the three months ended March 31, 2022. This increase was primarily due to increases of $70.1 million in the Capital Markets segment and $0.8 million in the Wealth Management segment. The income of $51.6 million during the three months ended March 31, 2023 was primarily due to an unrealized gain on our loans receivable, at fair value of $43.3 million and realized and unrealized gain on investments made in our proprietary trading accounts of $8.3 million.

Interest income – loans and securities lending increased $15.8 million to $77.2 million during the three months ended March 31, 2023 from $61.4 million during the three months ended March 31, 2022. Interest income from securities lending was $37.2 million and $15.0 million during the three months ended March 31, 2023 and 2022, respectively. Interest income from loans was $40.0 million and $46.4 million during the three months ended March 31, 2023 and 2022, respectively.

Revenues – Sale of Goods

Revenues from the sale of goods increased $65.9 million to $67.8 million during the three months ended March 31, 2023 from $1.9 million during the three months ended March 31, 2022. Revenues from sale of goods were attributable to an increase of $65.7 million from the Consumer segment due to the acquisition of Targus in the fourth quarter of 2022 and an increase of $0.2 million from the Auction and Liquidation segment. Cost of goods sold for three months ended March 31, 2023 was $47.6 million, resulting in gross margin of 29.7%. Cost of goods sold for three months ended March 31, 2022 was $2.3 million, resulting in negative gross margin of 19.9%. The change in gross margin was primarily due to the acquisition of Targus in the fourth quarter of 2022.

Operating Expenses

Direct Cost of Services

Direct cost of services increased $42.7 million to $54.4 million during the three months ended March 31, 2023 from $11.7 million during the three months ended March 31, 2022. The increase in direct cost of services was primarily

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attributable to increases of $35.4 million from the Communications segment from the acquisitions of Lingo in the second quarter of 2022 and BullsEye in the third quarter of 2022, $6.5 million from All Other due to other acquisitions made during 2022, and $0.8 million from the Auction and Liquidation segment.

Selling, General and Administrative Expenses

Selling, general and administrative expenses during the three months ended March 31, 2023 and 2022 were comprised of the following:

	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022				Change
	Amount		%		Amount		%		Amount		%
Capital Markets segment	$	66,967	31.4	%	$	36,010	20.6	%	$	30,957	86.0	%
Wealth Management segment	48,408		22.8	%	87,575		50.0	%	(39,167)		(44.7)	%
Auction and Liquidation segment	2,280		1.1	%	1,820		1.0	%	460		25.3	%
Financial Consulting segment	21,227		10.0	%	21,024		12.0	%	203		1.0	%
Communications segment	29,175		13.7	%	11,429		6.5	%	17,746		155.3	%
Consumer segment	22,951		10.8	%	1,339		0.8	%	21,612		n/m
Corporate and All Other	21,619		10.2	%	16,002		9.1	%	5,617		35.1	%
Total selling, general & administrative expenses	$	212,627	100.0	%	$	175,199	100.0	%	$	37,428	21.4	%

____________________________________

n/m - Not applicable or not meaningful.

Total selling, general and administrative expenses increased approximately $37.4 million to $212.6 million during the three months ended March 31, 2023 from $175.2 million during the three months ended March 31, 2022. The increase was primarily due to an increase of $31.0 million in the Capital Markets segment, $21.6 million in the Consumer segment, $17.7 million in the Communications segment, $5.6 million in Corporate and All Other, $0.5 million in the Auction and Liquidation segment and $0.2 million in the Financial Consulting segment, partially offset by a decrease of $39.2 million in the Wealth Management segment.

Capital Markets

Selling, general and administrative expenses in the Capital Markets segment increased by $31.0 million to $67.0 million during the three months ended March 31, 2023 from $36.0 million during the three months ended March 31, 2022. The increase was primarily due to increases of $32.8 million in consulting expenses and $1.4 million in investment and banking deal expenses, partially offset by decreases of $2.8 million in payroll and related expenses.

Wealth Management

Selling, general and administrative expenses in the Wealth Management segment decreased by $39.2 million to $48.4 million during the three months ended March 31, 2023 from $87.6 million during the three months ended March 31, 2022. The decrease was primarily due to decreases of $25.8 million in payroll and related expenses, $6.8 million in legal settlements made in the prior year, $4.5 million in other expenses, $1.4 million in clearing charges, and $0.9 million in software and equipment expenses.

Auction and Liquidation

Selling, general and administrative expenses in the Auction and Liquidation segment increased $0.5 million to $2.3 million during the three months ended March 31, 2023 from $1.8 million during the three months ended March 31, 2022.

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Financial Consulting

Selling, general and administrative expenses in the Financial Consulting segment increased by $0.2 million to $21.2 million during the three months ended March 31, 2023 from $21.0 million during the three months ended March 31, 2022.

Communications

Selling, general and administrative expenses in the Communications segment increased $17.7 million to $29.2 million for the three months ended March 31, 2023 from $11.4 million for the three months ended March 31, 2022. The increase was primarily due to increases of $10.7 million from the acquisition of the remaining non-controlling interests in Lingo in the first quarter of 2023 and $9.1 million from the acquisition of Bullseye in the third quarter of 2022, partially offset by a decrease of $1.3 million in payroll and related expenses and $0.8 million in other expenses.

Consumer

Selling, general and administrative expenses in the Consumer segment increased $21.6 million to $23.0 million for the three months ended March 31, 2023 from $1.3 million during the three months ended March 31, 2022. The increase was primarily due to an increase of $21.9 million from the acquisition of Targus in the fourth quarter of 2022.

Corporate and All Other

Selling, general and administrative expenses for Corporate and All Other increased approximately $5.6 million to $21.6 million during the three months ended March 31, 2023 from $16.0 million for the three months ended March 31, 2022. The increase was primarily due to increases of $2.4 million from the acquisition of other businesses in 2022, $1.9 million in accounting expenses, and $1.2 million in other expenses.

Other Income (Expense). Other income included interest income of $2.6 million and $0.1 million during the three months ended March 31, 2023 and 2022, respectively. Dividend income was $13.2 million during the three months ended March 31, 2023 compared to $7.9 million during the three months ended March 31, 2022. Realized and unrealized losses on investments was $28.4 million during the three months ended March 31, 2023 compared to $49.1 million during the three months ended March 31, 2022. The change was primarily due to an increase in overall values of our investments. Change in fair value of financial instruments and other was $0.2 million during the three months ended March 31, 2023 and $6.0 million during the three months ended March 31, 2022. The change was primarily due to the change in fair value of warrant liabilities and the forgiveness of a Paycheck Protection Program loan in 2022. Interest expense was $47.6 million during the three months ended March 31, 2023 compared to $30.4 million during the three months ended March 31, 2022. The increase in interest expense was due to additional debt incurred during the three months ended March 31, 2023 and higher interest rates due to variable rates on certain of our outstanding debt. The increases in interest expense primarily consisted of $6.4 million from the Pathlight term loan, $1.8 million from the issuance of senior notes, $1.6 million from the Lingo term loan, $0.6 million and $1.2 million from the Targus term loan and revolving credit facility, respectively, $0.9 million from the BRPAC term loan and $3.2 million and $0.9 million from the Nomura term loan and revolving credit facility, respectively. During the three months ended March 31, 2023, loss from equity investments was $0.01 million compared to income from equity investments of $6.8 million during the three months ended March 31, 2022. The decrease was primarily due to $6.7 million in earnings related to the bebe equity method investment in the prior year.

Income (Loss) Before Income Taxes. Income before income taxes was $24.5 million during the three months ended March 31, 2023 compared to loss of $12.9 million during the three months ended March 31, 2022. The change was primarily due to an increase in revenue of $185.3 million, a decrease in realized and unrealized losses on investments of $20.7 million, an increase of $5.3 million in dividend income, and an increase of $2.5 million in interest income, partially offset by an increase in operating expenses of approximately $146.3 million, increase in interest expense of $17.1 million, decrease in income from equity investments of $6.8 million, and a decrease in change in fair value of financial instruments and other of $6.2 million.

(Provision for) Benefit from Income Taxes. Provision for income taxes was $7.9 million during the three months ended March 31, 2023 compared to a benefit of $3.7 million during the three months ended March 31, 2022. The effective income tax rate was 32.4% for the three months ended March 31, 2023 as compared to 28.7% for the three months ended March 31, 2022.

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Net (Loss) Income Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests. Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests represents the proportionate share of net income generated by membership interests of partnerships that we do not own. The net loss attributable to noncontrolling interests was $0.6 million during the three months ended March 31, 2023 compared to net income of $0.9 million during the three months ended March 31, 2022.

Net Income (Loss) Attributable to the Company. Net income attributable to the Company was $17.2 million during the three months ended March 31, 2023 compared to net loss attributable to the Company of $10.1 million for the three months ended March 31, 2022. The change was primarily due to an increase in operating income of $39.0 million, a decrease in realized and unrealized loss on investments of $20.7 million, an increase of $5.3 million in dividend income, an increase of $2.5 million in interest income, and a decrease in net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests of $1.5 million, partially offset by an increase in interest expense of $17.1 million, a change from benefit from to provision for income taxes of $11.6 million, a decrease in income (loss) from equity investments of $6.8 million, and a decrease in change in fair value of financial instruments and other of $6.2 million.

Preferred Stock Dividends. Holders of Series A Preferred Stock, when and as authorized by the board of directors of the Company, are entitled to cumulative cash dividends at the rate of 6.875% per annum of the $0.03 million liquidation preference ($25.00 per Depositary Share) per year (equivalent to $1,718.75 or $1.71875 per Depositary Share). Dividends are payable quarterly in arrears. On January 9, 2023, the Company declared a cash dividend of $0.4296875 per Depositary Share, which was paid on January 31, 2023 to holders of record as of the close of business on January 20, 2023.

Holders of Series B Preferred Stock, when and as authorized by the board of directors of the Company, are entitled to cumulative cash dividends at the rate of 7.375% per annum of the $0.03 million liquidation preference ($25.00 per Depositary Share) per year (equivalent to $1,843.75 or $1.84375 per Depositary Share). Dividends are payable quarterly in arrears. On January 9, 2023, the Company declared a cash dividend of $0.4609375 per Depositary Share, which was paid on January 31, 2023 to holders of record as of the close of business on January 20, 2023.

Net Income (Loss) Available to Common Shareholders. Net income available to common shareholders was $15.1 million during the three months ended March 31, 2023 compared to net loss available to common shareholders of $12.1 million during the three months ended March 31, 2022. The change was primarily due to an increase in operating income of $39.0 million, a decrease in realized and unrealized loss on investments of $20.7 million, an increase of $5.3 million in dividend income, an increase of $2.5 million in interest income, and a decrease in net income attributable to noncontrolling interests and redeemable noncontrolling interests of $1.5 million, partially offset by an increase in interest expense of $17.1 million, a change from benefit from to provision for income taxes of $11.6 million, a decrease in income (loss) from equity investments of $6.8 million, and a decrease in change in fair value of financial instruments and other of $6.2 million.

Liquidity and Capital Resources

Our operations are funded through a combination of existing cash on hand, cash generated from operations, borrowings under our senior notes payable, term loans and credit facilities, and special purposes financing arrangements. During the three months ended March 31, 2023 and 2022, we generated net income of $16.6 million and net loss of $9.2 million, respectively. Our cash flows and profitability are impacted by capital market engagements performed on a quarterly and annual basis and amounts realized from the sale of our investments in marketable securities.

As of March 31, 2023, we had $210.0 million of unrestricted cash and cash equivalents, $2.4 million of restricted cash, $1,049.2 million of securities and other investments, at fair value, $772.1 million of loans receivable, at fair value, and $2,508.9 million of borrowings outstanding. The borrowings outstanding of $2,508.9 million as of March 31, 2023 included $1,723.0 million of borrowings from the issuance of the series of senior notes that are due at various dates ranging from May 31, 2024 to August 31, 2028 with interest rates ranging from 5.00% to 6.75%, $626.6 million in term loans borrowed pursuant to the Targus, Pathlight, Lingo, BRPI Acquisition Co LLC (“BRPAC”), and Nomura credit agreements discussed below, $139.5 million of revolving credit facility under the Targus and Nomura credit facilities discussed below, and $19.9 million of notes payable.

We believe that our current cash and cash equivalents, securities and other investments owned, funds available under our asset based credit facility, funds available under the Targus, Pathlight, Lingo, BRPAC, and Nomura term loans, funds available under the Targus and Nomura revolving credit facilities, and cash expected to be generated from operating activities will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months from issuance date of the accompanying financial statements. We continue to monitor our financial performance to ensure sufficient liquidity to fund operations and execute on our business plan.

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From time to time, we may decide to pay dividends which will be dependent upon our financial condition and results of operations. On May 4, 2023, we declared a regular dividend of $1.00 per share that will be paid on or about May 23, 2023 to stockholders of record as of May 16, 2023. On February 22, 2023, the Company declared a regular quarterly dividend of $1.00 per share, which was paid on March 23, 2023 to stockholders of record as of March 10, 2023. During the year ended December 31, 2022, we paid cash dividends on our common stock of $119.5 million. While it is the Board’s current intention to make regular dividend payments of $1.00 per share each quarter and special dividend payments dependent upon exceptional circumstances from time to time, our Board of Directors may reduce or discontinue the payment of dividends at any time for any reason it deems relevant. The declaration and payment of any future dividends or repurchases of our common stock will be made at the discretion of our Board of Directors and will be dependent upon our financial condition, results of operations, cash flows, capital expenditures, and other factors that may be deemed relevant by our Board of Directors.

A summary of common stock dividend activity for the three months ended March 31, 2023 and the year ended December 31, 2022 was as follows:

Date Declared	Date Paid	Stockholder Record Date	Regular Dividend Amount		Special Dividend Amount		Total Dividend Amount
February 22, 2023	March 23, 2023	March 10, 2023	$	1.000	$	—	$	1.000
November 3, 2022	November 29, 2022	November 15, 2022	1.000		—		1.000
July 28, 2022	August 23, 2022	August 11, 2022	1.000		—		1.000
April 28, 2022	May 20, 2022	May 11, 2022	1.000		—		1.000
February 23, 2022	March 23, 2022	March 9, 2022	1.000		—		1.000

Holders of Series A Preferred Stock, when and as authorized by the board of directors of the Company, are entitled to cumulative cash dividends at the rate of 6.875% per annum of the $0.03 million liquidation preference ($25.00 per Depositary Share) per year (equivalent to $1,718.75 or $1.71875 per Depositary Share). Dividends are payable quarterly in arrears, on or about the last day of January, April, July, and October. As of March 31, 2023, dividends in arrears in respect of the Depositary Shares were $0.8 million. On April 10, 2023, the Company declared a cash dividend $0.4296875 per Depositary Share, which was paid on May 1, 2023 to holders of record as of the close of business on April 21, 2023.

Holders of Series B Preferred Stock, when and as authorized by the board of directors of the Company, are entitled to cumulative cash dividends at the rate of 7.375% per annum of the $0.03 million liquidation preference ($25.00 per Depositary Share) per year (equivalent to $1,843.75 or $1.84375 per Depositary Share). Dividends are payable quarterly in arrears, on or about the last day of January, April, July, and October. As of March 31, 2023, dividends in arrears in respect of the Depositary Shares were $0.5 million. On April 10, 2023, the Company declared a cash dividend $0.4609375 per Depositary Share, which was paid on May 1, 2023 to holders of record as of the close of business on April 21, 2023.

A summary of preferred stock dividend activity for the three months ended March 31, 2023 and the year ended December 31, 2022 was as follows:

		Stockholder	Preferred Dividend per Depositary Share
Date Declared	Date Paid	Record Date	Series A		Series B
January 9, 2023	January 31, 2023	January 20, 2023	$	0.4296875	$	0.4609375
October 10, 2022	October 31, 2022	October 21, 2022	0.4296875		0.4609375
July 7, 2022	July 29, 2022	July 19, 2022	0.4296875		0.4609375
April 7, 2022	April 29, 2022	April 19, 2022	0.4296875		0.4609375
January 10, 2022	January 31, 2022	January 21, 2022	0.4296875		0.4609375

Our principal sources of liquidity to finance our business is our existing cash on hand, cash flows generated from operating activities, funds available under revolving credit facilities and special purpose financing arrangements.

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Cash Flow Summary

	Three Months Ended March 31,
	2023		2022
	(Dollars in thousands)
Net cash provided by (used in):
Operating activities	$	52,617	$	(14,898)
Investing activities	(57,164)		(35,513)
Financing activities	(55,337)		(14,441)
Effect of foreign currency on cash	1,280		(496)
Net decrease in cash, cash equivalents and restricted cash	$	(58,604)	$	(65,348)

Cash provided by operating activities was $52.6 million during the three months ended March 31, 2023 compared to cash used in operating activities of $14.9 million during the three months ended March 31, 2022. Cash provided by operating activities for the three months ended March 31, 2023 consisted of the impact of net income of $16.6 million, noncash items of $10.7 million, and changes in operating assets and liabilities of $46.7 million. The negative cash flow impact from noncash items of $10.7 million included fair value adjustments of $46.1 million and non-cash interest and other of $1.1 million, partially offset by share-based compensation of $13.7 million, depreciation and amortization of $13.1 million, deferred income taxes of $5.8 million, provision for doubtful accounts of $3.2 million, effect of foreign currency of $0.3 million, income allocated for mandatorily redeemable noncontrolling interests of $0.3 million and dividends from equity investments of $0.1 million. Cash used in operating activities for the three months ended March 31, 2022 consisted of the negative impact of net loss of $9.2 million and noncash items of $42.7 million, partially offset by the negative impact of changes in operating assets and liabilities of $37.0 million. The negative cash flow impact from noncash items of $42.7 million included deferred income taxes of $41.9 million, fair value adjustments of $15.8 million, income from equity investments of $6.8 million, noncash interest and other of $3.6 million, and gain on extinguishment of loan of $1.1 million, partially offset by share-based compensation of $17.0 million, depreciation and amortization of $7.8 million, dividends from equity investments of $0.8 million, provision for doubtful accounts of $0.4 million, loss on disposal of fixed assets and other of $0.3 million, and income allocated for mandatorily redeemable noncontrolling interests of $0.2 million.

Cash used in investing activities was $57.2 million during the three months ended March 31, 2023 compared to cash used in investing activities of $35.5 million for the three months ended March 31, 2022. During the three months ended March 31, 2023, cash used in investing activities consisted of cash used for purchases of loans receivable of $312.0 million, acquisition of businesses and minority interest of $12.3 million, purchases of property and equipment of $1.7 million, and purchase of equity and other investments of $0.7 million, partially offset by cash received from loans receivable repayment of $260.6 million, sale of loan receivable of $7.5 million, and proceeds from sale of property, equipment, intangible assets, and other of $1.4 million. During the three months ended March 31, 2022, cash used in investing activities consisted of cash used for purchases of loans receivable of $93.9 million, acquisition of businesses of $40.0 million, purchases of equity and other investments of $2.4 million, and purchases of property and equipment of $0.2 million partially offset by cash received from loans receivable repayment of $101.0 million.

Cash used in financing activities was $55.3 million during the three months ended March 31, 2023 compared to cash used in financing activities of $14.4 million during the three months ended March 31, 2022. During the three months ended March 31, 2023, cash used in financing activities primarily consisted of $72.9 million used in the repayment of term loan, $53.8 million used to repurchase our common shares, $46.9 million used to pay dividends on our common shares, $17.2 million used in payment of revolving lines of credit, $11.5 million used to repay our notes payable, $4.8 million used in payment of employment taxes on vesting of restricted stock, $2.0 million used to pay debt issuance and offering costs, $2.0 million used to pay dividends on our preferred shares, $1.3 million used to pay contingent consideration, and $1.0 million in distributions to noncontrolling interests, partially offset by cash provided by $128.2 million proceeds from term loans, $29.0 million proceeds from revolving line of credit, $0.5 million proceeds from issuance of preferred stock, and $0.4 million contributions from noncontrolling interests. During the three months ended March 31, 2022, cash used in financing activities primarily consisted of $27.9 million used to pay dividends on our common shares, $4.1 million used in the repayment of term loan, $2.0 million used to pay dividends on our preferred shares, $1.3 million used in payment of employment taxes on vesting of restricted stock, $1.1 million in distributions to noncontrolling interests, and $0.4 million used to repay our notes payable, partially offset by cash provided by $20.0 million in proceeds from issuance of senior notes, $1.8 million in contributions from noncontrolling interests, and $0.6 million in proceeds from issuance of preferred stock.

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Credit Agreements

Targus Credit Agreement

On October 18, 2022, our subsidiary, Tiger US Holdings, Inc. (the “Borrower”), a Delaware corporation, among others, entered into a credit agreement (“Targus Credit Agreement”) with PNC Bank, National Association (“PNC”), as agent and security trustee for a five-year $28.0 million term loan and a five-year $85.0 million revolver loan, which was used to finance part of the acquisition of Targus.

The Targus Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. The Targus Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts outstanding under the Targus Credit Agreement. We are in compliance with all financial covenants in the Targus Credit Agreement as of March 31, 2023.

The term loan bears interest on the outstanding principal amount equal to the Term Secured Overnight Financing Rate (“SOFR”) rate plus an applicable margin of 3.75%. The revolver loan consists of base rate loans that bear interest on the outstanding principal amount equal to the base rate plus an applicable margin of 1.00% to 1.75% and term rate loans that bear interest on the outstanding principal amount equal to the revolver SOFR rate plus an applicable margin of 2.00% to 2.75%.

Principal outstanding is due in quarterly installments starting on December 31, 2022. Quarterly installments from December 31, 2022 to September 30, 2027 are in the amount of $1.4 million per quarter and the remaining principal balance is due at final maturity on October 18, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $24.7 million (net of unamortized debt issuance costs of $0.5 million) and $26.0 million (net of unamortized debt issuance costs of $0.6 million) and the outstanding balance on the revolver loan was $62.5 million and $53.0 million, respectively. Interest expense on these loans during the three months ended March 31, 2023 was $1.7 million (including amortization of deferred debt issuance costs and unused commitment fees of $0.2 million). The interest rate on the term loan was 8.66% and 8.43% and the interest rate on the revolver loan ranged between 6.66% to 9.75% and 6.03% to 9.25% as of March 31, 2023 and December 31, 2022, respectively.

Pathlight Credit Agreement

On September 23, 2022, our subsidiary, B. Riley Receivables II, LLC, a Delaware limited liability company (the “Borrower”), entered into a credit agreement (the “Pathlight Credit Agreement”) by and among PLC Agent, LLC in the capacity as administrative agent and Pathlight Capital Fund I LP, Pathlight Capital Fund II LP, and Pathlight Capital Fund III LP as the lenders (collectively, “Pathlight”) for a five-year $148.2 million term loan. On January 12, 2023, Amendment No. 2 to the Pathlight Credit Agreement increased the term loan by an additional $78.3 million. On March 31, 2023, Amendment No. 3 to the Pathlight Credit Agreement increased the term loan by an additional $49.9 million.

The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus an applicable margin of 6.5%. As of March 31, 2023 and December 31, 2022, the interest rate on the Pathlight Credit Agreement was 11.4% and 11.0%, respectively.

The Pathlight Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. The Pathlight Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts due under the outstanding Pathlight Credit Agreement. We are in compliance with all financial covenants in the Pathlight Credit Agreement as of March 31, 2023.

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Principal outstanding under the Pathlight Credit Agreement is repaid based on collections of the 2022 Badcock Receivable less other application of payments as defined in the Pathlight Credit Agreement and the remaining principal balance is due at final maturity on September 23, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $184.4 million (net of unamortized debt issuance costs of $3.8 million) and $118.4 million (net of unamortized debt issuance costs of $2.4 million). Interest expense on the term loan during the three months ended March 31, 2023 was $6.4 million (including amortization of deferred debt issuance costs of $1.7 million).

Lingo Credit Agreement

On August 16, 2022, our subsidiary, Lingo (the “Borrower”), entered into a credit agreement (the “Lingo Credit Agreement”) by and among the Borrower, the Company as the secured guarantor, and Banc of California, N.A. in its capacity as administrative agent and lender, for a five-year $45.0 million term loan. This loan was used to finance part of the purchase of BullsEye by Lingo. On September 9, 2022, Lingo entered into the First Amendment to the Lingo Credit Agreement with Grasshopper Bank (the “New Lender”) for an incremental term loan of $7.5 million, increasing the principal balance of the term loan to $52.5 million. On November 10, 2022, Lingo entered into the Second Amendment to the Lingo Credit Agreement with KeyBank National Association for an incremental term loan of $20.5 million, increasing the principal balance of the term loan to $73.0 million.

The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus a margin of 3.00% to 3.75% per annum, depending on the consolidated total funded debt ratio as defined in the Lingo Credit Agreement, plus applicable spread adjustment. As of March 31, 2023 and December 31, 2022, the interest rate on the Lingo Credit Agreement was 8.48% and 7.89%, respectively.

The Lingo Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of its businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Lingo Credit Agreement requires the Borrower to maintain certain financial ratios. The Lingo Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts due under the Lingo Credit Agreement. We are in compliance with all financial covenants in the Lingo Credit Agreement as of March 31, 2023.

Principal outstanding is due in quarterly installments. Quarterly installments from June 30, 2023 to December 31, 2023 are in the amount of $2.3 million per quarter, from March 31, 2024 to December 31, 2024 are in the amount of $2.7 million per quarter, from March 31, 2025 to June 30, 2027 are in the amount of $3.7 million, and the remaining principal balance is due at final maturity on August 16, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $69.8 million (net of unamortized debt issuance costs of $0.9 million) and $72.0 million (net of unamortized debt issuance costs of $1.0 million), respectively. Interest expense on the term loan during the three months ended March 31, 2023 was $1.6 million (including amortization of deferred debt issuance costs of $0.1 million).

Nomura Credit Agreement

On June 23, 2021, we and our wholly owned subsidiaries, BR Financial Holdings, LLC (the “Primary Guarantor”), and BR Advisory & Investments, LLC (the “Borrower”) entered into a credit agreement (as amended, the “Credit Agreement”) with Nomura Corporate Funding Americas, LLC, as administrative agent (the “Administrative Agent”), and Wells Fargo Bank, N.A., as collateral agent (the “Collateral Agent”), for a four-year $200.0 million secured term loan credit facility (the “Term Loan Facility”) and a four-year $80.0 million revolving loan credit facility (the “Revolving Credit Facility”).

On December 17, 2021 (the “Amendment Date”), we, the Primary Guarantor, and the Borrower entered into a Second Incremental Amendment to Credit Agreement (the “Second Amendment”), by and among the Company, the Primary Guarantor, the Borrower, each of the subsidiary guarantors signatory thereto, each of the lenders party thereto, the Administrative Agent and the Collateral Agent, pursuant to which the Borrower established an incremental facility in an aggregate principal amount of $100.0 million (the “Incremental Facility” and the incremental term loans made thereunder, the “Incremental Term Loans”) of secured term loans under the Credit Agreement on terms identical to those applicable to

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the Term Loan Facility. The Borrower borrowed the full amount of the Incremental Term Loans on the Amendment Date. The Term Loan Facility, Revolving Credit Facility, and Incremental Facility, together, (“Credit Facilities”), mature on June 23, 2025, subject to acceleration or prepayment.

SOFR rate loans under the Credit Facilities accrue interest at the term SOFR rate plus a term SOFR adjustment determined by the selected interest period and an applicable margin of 4.50%. Base rate loans accrue interest at the Base Rate plus an applicable margin of 3.50%. In addition to paying interest on outstanding borrowings under the Revolving Credit Facility, we are required to pay a quarterly commitment fee based on the unused portion of the Revolving Credit Facility, which is determined by the average utilization of the Revolving Credit Facility for the immediately preceding fiscal quarter.

Subject to certain eligibility requirements, the assets of certain subsidiaries of ours that hold credit assets, private equity assets, and public equity assets are placed into a borrowing base, which serves to limit the borrowings under the Credit Facilities. If borrowings under the Credit Facilities exceed the borrowing base, we are obligated to prepay the loans in an aggregate amount equal to such excess. The Credit Agreement contains certain representations and warranties (subject to certain agreed qualifications) that are customary for financings of this kind.

The Credit Agreement and the Second Amendment contain certain affirmative and negative covenants customary for financings of this type that, among other things, limit our, the Primary Guarantor’s, the Borrower’s, and the Borrower’s subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to enter into restrictive agreements, to make certain investments, loans, advances, guarantees and acquisitions, to prepay certain indebtedness and to pay dividends or to make other distributions or redemptions/repurchases in respect of their respective equity interests. In addition, the Credit Agreement and the Second Amendment contain a financial covenant that requires us to maintain Operating EBITDA of at least $135.0 million and the Primary Guarantor to maintain net asset value of at least $1,100.0 million. The Credit Agreement and the Second Amendment contain customary events of default, including with respect to a failure to make payments under the credit facilities, cross-default, certain bankruptcy and insolvency events and customary change of control events. We are in compliance with all financial covenants in the Nomura Credit Agreement as of March 31, 2023.

Commencing on September 30, 2022, the Term Loan Facility and Incremental Facility began to amortize in equal quarterly installments of 1.25% of the aggregate principal amount of the term loan as of the closing date with the remaining balance due at final maturity on June 23, 2025. Quarterly installments from June 30, 2023 to March 31, 2025 are in the amount of $3.8 million per quarter.

As of March 31, 2023 and December 31, 2022, the outstanding balances on the Term Loan Facility and Incremental Facility were $283.7 million (net of unamortized debt issuance costs of $5.0 million) and $287.0 million (net of unamortized debt issuance costs of $5.5 million), respectively. Interest on the term loan during the three months ended March 31, 2023 and 2022 was $7.3 million (including amortization of deferred debt issuance costs of $0.5 million) and $4.1 million (including amortization of deferred debt issuance costs of $0.5 million), respectively. The interest rate on the term loan as of March 31, 2023 and December 31, 2022 was 9.59% and 9.23%, respectively.

We had an outstanding balance of $77.0 million and $74.7 million under the Revolving Credit Facility as of March 31, 2023 and December 31, 2022, respectively. Interest on the revolving facility during the three months ended March 31, 2023 and 2022 was $2.0 million (including amortization of deferred financing costs of $0.2 million) and $1.1 million (including amortization of deferred financing costs of $0.1 million), respectively. The interest rate on the Revolving Credit Facility as of March 31, 2023 and December 31, 2022 was 9.69% and 9.23%, respectively.

Wells Fargo Credit Agreement

We are party to a credit agreement (as amended, the “Credit Agreement”) governing our asset based credit facility with Wells Fargo Bank, National Association (“Wells Fargo Bank”) with a maximum borrowing limit of $200.0 million and a maturity date of April 20, 2027. Cash advances and the issuance of letters of credit under the credit facility are made at the lender’s discretion. The letters of credit issued under this facility are furnished by the lender to third parties for the principal purpose of securing minimum guarantees under liquidation services contracts. All outstanding loans, letters of credit, and interest are due on the expiration date which is generally within 180 days of funding. The credit facility is secured by the proceeds received for services rendered in connection with liquidation service contracts pursuant to which any outstanding loan or letters of credit are issued and the assets that are sold at liquidation related to such contract. The interest rate for each revolving credit advance under the related credit agreement is, subject to certain terms and conditions,

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equal to the SOFR plus a margin of 2.25% to 3.25% depending on the type of advance and the percentage such advance represents of the related transaction for which such advance is provided. The credit facility provides for success fees in the amount of 1.0% to 10.0% of the net profits, if any, earned on liquidation engagements that are financed under the credit facility as set forth in the related Credit Agreement. The credit facility also provides for funding fees in the amount of 0.05% to 0.20% of the aggregate principal amount of all credit advances and letters of credit issued in connection with a liquidation sale. Interest expense totaled $0.02 million and $0.1 million during the three months ended March 31, 2023 and 2022, respectively. There was no outstanding balance on this credit facility as of March 31, 2023 and December 31, 2022. As of March 31, 2023 and December 31, 2022, there were no open letters of credit outstanding.

We are in compliance with all financial covenants in the asset based credit facility as of March 31, 2023.

BRPAC Credit Agreement

On December 19, 2018, BRPI Acquisition Co LLC (“BRPAC”), a Delaware limited liability company, UOL, and YMAX Corporation, Delaware corporations (collectively, the “Borrowers”), indirect wholly owned subsidiaries of ours, in the capacity as borrowers, entered into a credit agreement (the “BRPAC Credit Agreement”) with the Banc of California, N.A. in the capacity as agent (the “Agent”) and lender and with the other lenders party thereto (the “Closing Date Lenders”). Certain of the Borrowers’ U.S. subsidiaries are guarantors of all obligations under the BRPAC Credit Agreement and are parties to the BRPAC Credit Agreement in such capacity (collectively, the “Secured Guarantors”; and together with the Borrowers, the “Credit Parties”). In addition, the Company and B. Riley Principal Investments, LLC, the parent corporation of BRPAC and a subsidiary of ours, are guarantors of the obligations under the BRPAC Credit Agreement pursuant to standalone guaranty agreements pursuant to which the shares outstanding membership interests of BRPAC are pledged as collateral.

The obligations under the BRPAC Credit Agreement are secured by first-priority liens on, and first priority security interest in, substantially all of the assets of the Credit Parties, including a pledge of (a) 100% of the equity interests of the Credit Parties; (b) 65% of the equity interests in United Online Software Development (India) Private Limited, a private limited company organized under the laws of India; and (c) 65% of the equity interests in magicJack VocalTec LTD., a limited company organized under the laws of Israel. Such security interests are evidenced by pledge, security, and other related agreements.

The BRPAC Credit Agreement contains certain covenants, including those limiting the Credit Parties’, and their subsidiaries’, ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the BRPAC Credit Agreement requires the Credit Parties to maintain certain financial ratios. The BRPAC Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts due under the BRPAC Credit Agreement. We are in compliance with all financial covenants in the BRPAC Credit Agreement as of March 31, 2023.

Through a series of amendments, including the most recent Fourth Amendment to the BRPAC Credit Agreement (the “Fourth Amendment”) on June 21, 2022, the Borrowers, the Secured Guarantors, the Agent and the Closing Date Lenders agreed to the following, among other things: (i) the Lenders agreed to make a new $75.0 million term loan to the Borrowers, the proceeds of which the Borrowers’ used to repay the outstanding principal amount of the existing terms loans and optional loans and will use for other general corporate purposes, (ii) a new applicable margin level of 3.50% was established as set forth from the date of the Fourth Amendment, (iii) Marconi Wireless Holdings, LLC (“Marconi Wireless”) was added to the Borrowers, (iv) the maturity date of the term loan was set to June 30, 2027, and (v) the Borrowers were permitted to make certain distributions to the parent company of the Borrowers.

The borrowings under the amended BRPAC Credit Agreement bear interest equal to the term SOFR rate plus a margin of 2.75% to 3.50% per annum, depending on the Borrowers’ consolidated total funded debt ratio as defined in the BRPAC Credit Agreement. As of March 31, 2023 and December 31, 2022, the interest rate on the BRPAC Credit Agreement was 8.23% and 7.65%, respectively.

Principal outstanding under the Amended BRPAC Credit Agreement is due in quarterly installments. Quarterly installments from June 30, 2023 to December 31, 2023 are in the amount of $4.7 million per quarter, from March 31, 2024 to December 31, 2026 are in the amount of $3.8 million per quarter, on March 31, 2027 is in the amount of $2.8 million, and the remaining principal balance is due at final maturity on June 30, 2027.

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As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $64.1 million (net of unamortized debt issuance costs of $0.6 million) and $68.7 million (net of unamortized debt issuance costs of $0.7 million), respectively. Interest expense on the term loan during the three months ended March 31, 2023 and 2022 was $1.4 million (including amortization of deferred debt issuance costs of $0.1 million) and $0.5 million (including amortization of deferred debt issuance costs of $0.1 million), respectively.

Senior Note Offerings

During the three months ended March 31, 2023 and 2022, we issued zero and $20.1 million, respectively, of senior notes due with maturities dates ranging from May 2024 to August 2028 pursuant to At the Market Issuance Sales Agreements with B. Riley Securities, Inc. which governs the program of at-the-market sales of the Company’s senior notes. We filed a series of prospectus supplements with the SEC in respect of our offerings of these senior notes.

As of March 31, 2023 and December 31, 2022, the total senior notes outstanding was $1,723.0 million (net of unamortized debt issue costs of $16.9 million) and $1,721.8 million (net of unamortized debt issue costs of $18.1 million) with a weighted average interest rate of 5.75% and 5.75%, respectively. Interest on senior notes is payable on a quarterly basis. Interest expense on senior notes totaled $26.2 million and $24.4 million during the three months ended March 31, 2023 and 2022, respectively.

The most recent sales agreement prospectus was filed by us with the SEC on January 5, 2022 (the “January 2022 Sales Agreement Prospectus”). This program provides for the sale by the Company of up to $250.0 million of certain of the Company’s senior notes. As of March 31, 2023 and December 31, 2022, the Company had $0.1 million remaining availability under the January 2022 Sales Agreement.

Recent Accounting Standards

See Note 3(p) to the accompanying financial statements for recent accounting standards we have recently adopted.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We periodically use derivative instruments, which primarily consist of the purchase of forward exchange contracts, for certain loans receivable and Auction and Liquidation engagements with operations outside the United States. As of March 31, 2023 and December 31, 2022, there were no forward exchange contracts outstanding.

The forward exchange contracts were entered into to improve the predictability of cash flows related to a retail store liquidation engagement and a loan receivable. The net gain from forward exchange contracts was zero and $0.1 million during the three months ended March 31, 2023 and 2022, respectively. This amount is reported as a component of selling, general and administrative expenses in the condensed consolidated statements of operations.

We transact business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country’s currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using period-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income in the accompanying condensed consolidated balance sheets. Transaction gains (losses) are included in selling, general and administrative expenses in our condensed consolidated statements of operations.

Interest Rate Risk

Our primary exposure to market risk consists of risk related to changes in interest rates. We utilize borrowings under our senior notes payable and credit facilities to fund costs and expenses incurred in connection with our acquisitions and operations. Borrowings under our senior notes payable are at fixed interest rates and borrowings under our credit facilities bear interest at a floating rate of interest. In our portfolio of securities owned, we invest in loans receivable that primarily bear interest at a floating rate of interest. If floating rates of interest had increased by 1% during the three months ended March 31, 2023, the rate increase would have resulted in an increase in interest expense of $1.9 million.

The primary objective of our investment activities is to preserve capital for the purpose of funding operations while at the same time maximizing the income that we receive from investments without significantly increasing risk. To achieve these objectives, our investments allow us to maintain a portfolio of cash equivalents, short-term investments through a

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variety of securities owned that primarily includes common stocks, loans receivable, and investments in partnership interests. Our cash and cash equivalents through March 31, 2023 included amounts in bank checking and liquid money market accounts. We may be exposed to interest rate risk through trading activities in convertible and fixed income securities as well as U.S. Treasury securities, however, based on our daily monitoring of this risk, we believe we currently have limited exposure to interest rate risk in these activities.

Foreign Currency Risk

The majority of our operating activities are conducted in U.S. dollars. Revenues generated from our foreign subsidiaries totaled $30.5 million and $2.0 million during the three months ended March 31, 2023 and 2022, respectively or 7.0% and 0.8% of our total revenues of $432.1 million and $246.8 million during the three months ended March 31, 2023 and 2022, respectively. The financial statements of our foreign subsidiaries are translated into U.S. dollars at period-end rates, with the exception of revenues, costs, and expenses, which are translated at average rates during the reporting period. We include gains and losses resulting from foreign currency transactions in income, while we exclude those resulting from translation of financial statements from income and include them as a component of accumulated other comprehensive income (loss). Transaction gains (losses), which were included in our condensed consolidated statements of operations, amounted to a loss of $0.2 million and gain of $0.3 million during the three months ended March 31, 2023 and 2022, respectively. We may be exposed to foreign currency risk; however, our operating results during the three months ended March 31, 2023 and 2022, included $30.5 million and $2.0 million of revenues and $8.4 million and $1.7 million of operating expenses from our foreign subsidiaries, respectively and a 10% appreciation or depreciation of the U.S. dollar relative to the local currency exchange rates would result in an approximately $0.7 million and $0.2 million change in our operating income during the three months ended March 31, 2023 and 2022, respectively.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures (as defined in the Rules 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that is designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Co-Chief Executive Officers and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Under the supervision and with the participation of our management, including our Co-Chief Executive Officers and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act. Based upon the foregoing evaluation, our Co-Chief Executive Officers and our Chief Financial Officer concluded that as of March 31, 2023 our disclosure controls and procedures were not effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes to our internal control over financial reporting during the fiscal quarter covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Remediation

The Company’s material weaknesses relating to the operating effectiveness of management's review controls over key assumptions that are utilized to determine the fair value of intangible assets for new acquisitions and the fair value of reporting units and management’s review controls over the income tax provision described above did not result in a material adjustment to the Company’s consolidated financial statements. The Company’s material weakness for presentation and classification of dividend income and realized and unrealized gains (losses) on certain equity securities resulted in the correction to reclassify certain revenue amounts to other income in the consolidated statement of operations and did not result in changes to the balance sheet, statement of equity, statement of cash flows, net income (loss) or earnings per share as previously reported.

Management continues to implement measures designed to ensure that the control deficiency contributing to the material weakness is remediated, such that the controls are designed, implemented, and operating effectively. The remediation actions include the enhancement of control activity evidence, improvement of the precision level of

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management review controls, and reclassification of dividend income and realized and unrealized gains (losses) on certain equity securities.

While we believe that these actions will be sufficient to remediate the material weakness, it will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We expect that the remediation of this material weakness will be completed prior to the end of fiscal 2023.

Inherent Limitation on Effectiveness of Controls

Our management, including our Co-Chief Executive Officers and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well- designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is subject to certain legal and other claims that arise in the ordinary course of its business. In particular, the Company and its subsidiaries are named in and subject to various proceedings and claims arising primarily from the Company’s securities business activities, including lawsuits, arbitration claims, class actions, and regulatory matters. Some of these claims seek substantial compensatory, punitive, or indeterminate damages. The Company and its subsidiaries are also involved in other reviews, investigations, and proceedings by governmental and self-regulatory organizations regarding the Company’s business, which may result in adverse judgments, settlements, fines, penalties, injunctions, and other relief. In view of the number and diversity of claims against the Company, the number of jurisdictions in which litigation is pending, and the inherent difficulty of predicting the outcome of litigation and other claims, the Company cannot state with certainty what the eventual outcome of pending litigation or other claims will be. Notwithstanding this uncertainty, the Company does not believe that the results of these claims are likely to have a material effect on its financial position or results of operations.

Item 1A. Risk Factors.

There are certain risks and uncertainties in our business that could cause our actual results to differ materially from those anticipated. A detailed discussion of our risk factors was included in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 16, 2023. These risk factors should be read carefully in connection with evaluating our business and in connection with the forward-looking statements and other information contained in this Quarterly Report on Form 10-Q. Any of the risks described in the Annual Report on Form 10-K for the year ended December 31, 2022, could materially affect our business, financial condition or future results and the actual outcome of matters as to which forward-looking statements are made. There have been no material changes to the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the three months ended March 31, 2023, we made the following purchases of our equity securities that are registered pursuant to Section 12(b) of the Exchange Act.

Period	Total Number of Shares Purchased(1)(2)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program
January 1 through January 31, 2023	80,142	$	36.51	70,939	$	41,021,994
February 1 through February 28, 2023	550,863	$	40.69	548,712	$	18,695,396
March 1 through March 31, 2023	833,393	$	34.66	833,180	$	30,978,861
Total	1,464,398	$	37.03	1,452,831

______________________________

(1) Includes purchases of 11,567 shares made to satisfy the income tax withholding obligations of certain employees upon the vesting and delivery of restricted stock units issued under our 2021 Stock Incentive Plan.

(2) Includes purchases of 1,452,831 shares under the Company's annual share repurchase programs. On March 3, 2023, the share repurchase program was reauthorized by the Board of Directors for share repurchases of up to $50,000 of the Company's outstanding common shares and the reauthorized program expires in October 2023.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

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Item 5. Other Information.

None.

Item 6. Exhibits.

The exhibits filed as part of this Quarterly Report are listed in the index to exhibits immediately preceding such exhibits, which index to exhibits is incorporated herein by reference.

Exhibit Index

		Incorporated by Reference
Exhibit No.	Description	Form	Exhibit	Filing Date
10.1#	Amended and Restated Employment Agreement, dated April 11, 2023 by and between the registrant and Bryant R. Riley	8-K	10.1	4/14/2023
10.2#	Amended and Restated Employment Agreement, dated April 11, 2023 by and between the registrant and Thomas J. Keller	8-K	10.2	4/14/2023
10.3#	Amended and Restated Employment Agreement, dated April 11, 2023 by and between the registrant and Phillip J. Ahn	8-K	10.3	4/14/2023
10.4#	Amended and Restated Employment Agreement, dated April 11, 2023 by and between the registrant and Alan N. Forman	8-K	10.4	4/14/2023
10.5#	Amended and Restated Employment Agreement, dated April 11, 2023 by and between the registrant and Andrew Moore	8-K	10.5	4/14/2023
10.6#	Amended and Restated Employment Agreement, dated April 11, 2023 by and between the registrant and Kenneth M. Young	8-K	10.6	4/14/2023
31.1*	Certification of Co-Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934
31.2*	Certification of Co-Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934
31.3*	Certification of Chief Financial Officer and Chief Operating Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934
32.1**	Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

65

32.3**	Certification of Chief Financial Officer and Chief Operating Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	Inline XBRL Instance Document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

_______________________________________________

*    Filed herewith.

**    Furnished herewith.

#    Management contract or compensatory plan or arrangement

66

SIGNATURES

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 thereunto duly authorized.

	B. Riley Financial, Inc.
Date: May 8, 2023	By:	/s/ PHILLIP J. AHN
	Name:	Phillip J. Ahn
	Title:	Chief Financial Officer and Chief Operating Officer
		(Principal Financial Officer)

67

EX-31.1

Exhibit 31.1

CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Bryant R. Riley, certify that:

1.I have reviewed this quarterly report on Form 10-Q of B. Riley Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2023
	/s/ BRYANT R. RILEY
	Bryant R. Riley
	Co-Chief Executive Officer
	Chairman of the Board
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas J. Kelleher, certify that:

1.I have reviewed this quarterly report on Form 10-Q of B. Riley Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2023
	/s/ THOMAS J. KELLEHER
	Thomas J. Kelleher
	Co-Chief Executive Officer
	(Director)

EX-31.3

Exhibit 31.3

CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Phillip J. Ahn, certify that:

1.I have reviewed this quarterly report on Form 10-Q of B. Riley Financial, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2023
	/s/ PHILLIP J. AHN
	Phillip J. Ahn
	Chief Financial Officer and Chief Operating Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of B. Riley Financial, Inc. (the “Company”) for the quarter ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bryant R. Riley, Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ BRYANT R. RILEY

Bryant R. Riley

Co-Chief Executive Officer

Chairman of the Board

May 8, 2023

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of B. Riley Financial, Inc. (the “Company”) for the quarter ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas J. Kelleher, Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ THOMAS J. KELLEHER

Thomas J. Kelleher

Co-Chief Executive Officer

Director

May 8, 2023

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of B. Riley Financial, Inc. (the “Company”) for the quarter ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Phillip J. Ahn, Chief Financial Officer and Chief Operating Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ PHILLIP J. AHN

Phillip J. Ahn

Chief Financial Officer and Chief Operating Officer

May 8, 2023

XML

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 02, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-37503
Entity Registrant Name	B. RILEY FINANCIAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0223495
Entity Address, Address Line One	11100 Santa Monica Blvd
Entity Address, Address Line Two	Suite 800
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90025
City Area Code	(310)
Local Phone Number	966-1444
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,135,636
Entity Central Index Key	0001464790
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock, par value $0.0001 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	RILY
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/1000th fractional interest in a 6.875% share of Series A Cumulative Perpetual Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1000th  fractional interest in a 6.875% share of Series A  Cumulative Perpetual Preferred Stock
Trading Symbol	RILYP
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/1000th fractional interest in a 7.375% share of Series B Cumulative Perpetual Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1000th  fractional interest in a 7.375% share of Series B  Cumulative Perpetual Preferred Stock
Trading Symbol	RILYL
Security Exchange Name	NASDAQ
6.50% Senior Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	6.50% Senior Notes due 2026
Trading Symbol	RILYN
Security Exchange Name	NASDAQ
6.375% Senior Notes due 2025
Document Information [Line Items]
Title of 12(b) Security	6.375% Senior Notes due 2025
Trading Symbol	RILYM
Security Exchange Name	NASDAQ
6.75% Senior Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	6.75% Senior Notes due 2024
Trading Symbol	RILYO
Security Exchange Name	NASDAQ
6.00% Senior Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	6.00% Senior Notes due 2028
Trading Symbol	RILYT
Security Exchange Name	NASDAQ
5.50% Senior Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	5.50% Senior Notes due 2026
Trading Symbol	RILYK
Security Exchange Name	NASDAQ
5.25% Senior Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	5.25% Senior Notes due 2028
Trading Symbol	RILYZ
Security Exchange Name	NASDAQ
5.00% Senior Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	5.00% Senior Notes due 2026
Trading Symbol	RILYG
Security Exchange Name	NASDAQ

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets:
Cash and cash equivalents	$ 209,971	$ 268,618
Restricted cash	2,351	2,308
Due from clearing brokers	19,145	48,737
Securities and other investments owned, at fair value	1,049,230	1,129,268
Securities borrowed	2,942,843	2,343,327
Accounts receivable, net	120,853	149,110
Due from related parties	372	1,081
Loans receivable, at fair value (includes $97,062 and $98,729 from related parties as of March 31, 2023 and December 31, 2022, respectively)	772,085	701,652
Prepaid expenses and other assets	491,872	460,696
Operating lease right-of-use assets	88,989	88,593
Property and equipment, net	27,577	27,141
Goodwill	523,997	512,595
Other intangible assets, net	366,060	374,098
Deferred income taxes	2,845	3,978
Total assets	6,618,190	6,111,202
Liabilities:
Accounts payable	59,969	81,384
Accrued expenses and other liabilities	263,335	322,974
Deferred revenue	84,019	85,441
Deferred income taxes	34,274	29,548
Due to related parties and partners	431	2,210
Due to clearing brokers	6,033	19,307
Securities sold not yet purchased	7,806	5,897
Securities loaned	2,937,982	2,334,031
Operating lease liabilities	100,075	99,124
Notes payable	19,882	25,263
Revolving credit facility	139,463	127,678
Term loans, net	626,613	572,079
Senior notes payable, net	1,722,977	1,721,751
Total liabilities	6,002,859	5,426,687
Commitments and contingencies (Note 17)
Redeemable noncontrolling interests in equity of subsidiaries	174,967	178,622
B. Riley Financial, Inc. equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,563 and 4,545 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively; and liquidation preference of $114,082 and $113,615 as of March 31, 2023 and December 31, 2022, respectively	0	0
Common stock, $0.0001 par value; 100,000,000 shares authorized; 28,135,636 and 28,523,764 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	3	3
Additional paid-in capital	445,352	494,201
Accumulated deficit	(62,566)	(45,220)
Accumulated other comprehensive loss	(1,604)	(2,470)
Total B. Riley Financial, Inc. stockholders’ equity	381,185	446,514
Noncontrolling interests	59,179	59,379
Total equity	440,364	505,893
Total liabilities and equity	$ 6,618,190	$ 6,111,202

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Loans receivable, at fair value	$ 97,062	$ 98,729
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	4,563	4,545
Preferred stock, shares outstanding (in shares)	4,563	4,545
Preferred stock, liquidation preference	$ 114,082	$ 113,615
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	28,135,636	28,523,764
Common stock, shares outstanding (in shares)	28,135,636	28,523,764

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Services and fees	$ 235,559	$ 202,814
Trading income (loss) and fair value adjustments on loans	51,568	(19,278)
Interest income - Loans and securities lending	77,186	61,426
Sale of goods	67,777	1,878
Total revenues	432,090	246,840
Operating expenses:
Direct cost of services	54,397	11,651
Cost of goods sold	47,626	2,251
Selling, general and administrative expenses	212,627	175,199
Restructuring charge	93	0
Interest expense - Securities lending and loan participations sold	32,424	11,766
Total operating expenses	347,167	200,867
Operating income	84,923	45,973
Other income (expense):
Interest income	2,574	67
Dividend income	13,204	7,861
Realized and unrealized gains (losses) on investments	(28,442)	(49,112)
Change in fair value of financial instruments and other	(209)	5,981
(Loss) income from equity investments	(10)	6,775
Interest expense	(47,561)	(30,436)
Income (loss) before income taxes	24,479	(12,891)
(Provision for) benefit from income taxes	(7,919)	3,695
Net income (loss)	16,560	(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)	866
Net income (loss) attributable to B. Riley Financial, Inc.	17,155	(10,062)
Preferred stock dividends	2,012	2,002
Net income (loss) available to common shareholders	15,143	(12,064)
Net income (loss) available to common shareholders	$ 15,143	$ (12,064)
Basic (loss) income per common share (in dollars per share)	$ 0.53	$ (0.43)
Diluted (loss) income per common share (in dollars per share)	$ 0.51	$ (0.43)
Weighted average basic common shares outstanding (in shares)	28,585,337	27,855,033
Weighted average diluted common shares outstanding (in shares)	29,513,435	27,855,033

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 16,560	$ (9,196)
Other comprehensive income (loss):
Change in cumulative translation adjustment	866	(488)
Other comprehensive income (loss), net of tax	866	(488)
Total comprehensive income (loss)	17,426	(9,684)
Comprehensive (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(449)	866
Comprehensive income (loss) attributable to B. Riley Financial, Inc.	$ 17,875	$ (10,550)

XML

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	FocalPoint Securities, LLC ("FocalPoint")	Preferred Stock	Common Stock	Common Stock Farber	Common Stock FocalPoint Securities, LLC ("FocalPoint")	Additional Paid-in Capital	Additional Paid-in Capital FocalPoint Securities, LLC ("FocalPoint")	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, shares outstanding (in shares)				27,591,028
Balance (in shares) at Dec. 31, 2021			4,512
Balance at Dec. 31, 2021	$ 705,201		$ 0	$ 3			$ 413,486		$ 248,862	$ (1,080)	$ 43,930
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock issued (in shares)			23
Preferred stock issued	639						639
Vesting of restricted stock and other, net of shares withheld for employer taxes (in shares)				32,328
Vesting of restricted stock and other, net of shares withheld for employer taxes	(1,294)						(1,294)
Shares issued for the acquisition of a business (in shares)						304,878
Shares issued for the acquisition of a business		$ 20,320						$ 20,320
Share based payments	17,013						17,013
Dividends on common stock	(31,033)								(31,033)
Dividends on preferred stock	(2,002)								(2,002)
Net income	(9,196)								(10,062)		866
Distributions to noncontrolling interests	(935)										(935)
Contributions from noncontrolling interests	1,770										1,770
Acquisition of noncontrolling interests	182										182
Other comprehensive income	(488)									(488)
Balance (in shares) at Mar. 31, 2022			4,535
Balance at Mar. 31, 2022	$ 700,177		$ 0	$ 3			450,164		205,765	(1,568)	45,813
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, shares outstanding (in shares)				27,928,234
Common stock, shares outstanding (in shares)	28,523,764			28,523,764
Balance (in shares) at Dec. 31, 2022			4,545
Balance at Dec. 31, 2022	$ 505,893		$ 0	$ 3			494,201		(45,220)	(2,470)	59,379
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock issued (in shares)			18
Preferred stock issued	467						467
Vesting of restricted stock and other, net of shares withheld for employer taxes (in shares)				1,012,751
Vesting of restricted stock and other, net of shares withheld for employer taxes	(4,819)						(4,819)
Common stock repurchased and retired (in shares)				(1,452,831)
Common stock repurchased and retired	(53,803)						(53,803)
Shares issued for the acquisition of a business (in shares)					51,952
Shares issued for the acquisition of a business	2,111						2,111
Remeasurement of Lingo redeemable minority interest	(6,483)						(6,483)
Share based payments	13,678						13,678
Dividends on common stock	(31,291)								(31,291)
Dividends on preferred stock	(2,012)								(2,012)
Net income	16,706								17,155		(449)
Distributions to noncontrolling interests	(720)										(720)
Contributions from noncontrolling interests	431										431
Remeasurement of B. Riley Principal 250 Merger Corporation subsidiary temporary equity	(1,198)								(1,198)
Acquisition of noncontrolling interest	538										538
Other comprehensive income	866									866
Balance (in shares) at Mar. 31, 2023			4,563
Balance at Mar. 31, 2023	$ 440,364		$ 0	$ 3			$ 445,352		$ (62,566)	$ (1,604)	$ 59,179
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, shares outstanding (in shares)	28,135,636			28,135,636

XML

Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends on common stock per share (in dollars per share)	$ 1.00	$ 1.00

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 16,560	$ (9,196)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	13,077	7,848
Provision for doubtful accounts	3,173	405
Share-based compensation	13,746	17,013
Fair value adjustments, non-cash	(46,050)	(15,816)
Non-cash interest and other	(1,141)	(3,596)
Effect of foreign currency on operations	271	(34)
Loss (income) from equity investments	10	(6,775)
Dividends from equity investments	129	774
Deferred income taxes	5,807	(41,900)
Loss on loans receivable and disposal of fixed assets	5	257
Gain on extinguishment of loan	0	(1,102)
Income allocated and fair value adjustment for mandatorily redeemable noncontrolling interests	308	215
Change in operating assets and liabilities:
Amounts due to/from clearing brokers	16,318	(80,091)
Securities and other investments owned	95,037	215,973
Securities borrowed	(599,516)	461,193
Accounts receivable	25,083	6,355
Prepaid expenses and other assets	(25,705)	1,701
Accounts payable, accrued payroll and related expenses, accrued expenses and other liabilities	(67,536)	(82,962)
Amounts due to/from related parties and partners	(1,070)	594
Securities sold, not yet purchased	1,909	(21,125)
Deferred revenue	(1,749)	4,924
Securities loaned	603,951	(469,553)
Net cash provided by (used in) operating activities	52,617	(14,898)
Cash flows from investing activities:
Purchases of loans receivable	(311,970)	(93,853)
Repayments of loans receivable	260,587	101,000
Sale of loan receivable	7,500	0
Acquisition of businesses and minority interest, net of $234 and $26,076 cash acquired for 2023 and 2022, respectively	(12,287)	(40,047)
Purchases of property, equipment and intangible assets	(1,696)	(176)
Proceeds from sale of property, equipment, intangible assets, and other	1,364	2
Purchase of equity and other investments	(662)	(2,439)
Net cash used in investing activities	(57,164)	(35,513)
Cash flows from financing activities:
Proceeds from revolving line of credit	29,021	0
Repayment of revolving line of credit	(17,237)	0
Repayment of notes payable	(11,510)	(357)
Repayment of term loan	(72,924)	(4,116)
Proceeds from term loan	128,187	0
Proceeds from issuance of senior notes	0	20,037
Payment of debt issuance and offering costs	(1,957)	0
Payment of contingent consideration	(1,302)	(181)
Payment of employment taxes on vesting of restricted stock	(4,819)	(1,294)
Common dividends paid	(46,856)	(27,886)
Preferred dividends paid	(2,012)	(2,002)
Repurchase of common stock	(53,803)	0
Distribution to noncontrolling interests	(1,023)	(1,051)
Contribution from noncontrolling interests	431	1,770
Proceeds from issuance of preferred stock	467	639
Net cash used in financing activities	(55,337)	(14,441)
Decrease in cash, cash equivalents and restricted cash	(59,884)	(64,852)
Effect of foreign currency on cash, cash equivalents and restricted cash	1,280	(496)
Net decrease in cash, cash equivalents and restricted cash	(58,604)	(65,348)
Cash, cash equivalents and restricted cash, beginning of period	270,926	279,860
Cash, cash equivalents and restricted cash, end of period	212,322	214,512
Supplemental disclosures:
Interest paid	81,423	38,272
Taxes paid	$ 2,932	$ 73

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Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Cash Flows [Abstract]
Net of cash acquired	$ 234	$ 26,076

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ORGANIZATION AND NATURE OF BUSINESS OPERATIONS

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

ORGANIZATION AND NATURE OF BUSINESS OPERATIONS

ORGANIZATION AND NATURE OF BUSINESS OPERATIONS

B. Riley Financial, Inc. and its subsidiaries (collectively, the “Company”) provide investment banking, brokerage, wealth management, asset management, direct lending, business advisory, valuation, and asset disposition services to a broad client base spanning public and private companies, financial sponsors, investors, financial institutions, legal and professional services firms, and individuals. The Company also has a portfolio of communication related businesses that provide consumer Internet access and cloud communication services and consumer related businesses that consist of a brands portfolio, which provides licensing of trademarks and brand investments, and Targus Cayman Holdco Limited (“Targus”), which designs and sells laptop and computer accessories.

The Company operates in six reportable operating segments: (i) Capital Markets, through which the Company provides investment banking, corporate finance, securities lending, restructuring, research, sales and trading services to corporate and institutional clients; (ii) Wealth Management, through which the Company provides wealth management and tax services to corporate and high-net-worth clients; (iii) Auction and Liquidation, through which the Company provides auction and liquidation services to help clients dispose of assets that include multi-location retail inventory, wholesale inventory, trade fixtures, machinery and equipment, intellectual property and real property; (iv) Financial Consulting, through which the Company provides bankruptcy, financial advisory, forensic accounting, real estate consulting and valuation and appraisal services; (v) Communications, through which the Company provides consumer Internet access and related subscription services, cloud communication services, and mobile phone voice, text, and data services and devices; and (vi) Consumer, including brands, which generates revenue through the licensing of trademarks, and Targus, which generates revenue through sales of laptop and computer accessories.

During the fourth quarter of 2022, the Company realigned its segment reporting structure to reflect organizational changes from recent acquisitions and the manner in which capital is allocated. The Consumer segment includes the previously reported Brands segment and Targus, which the Company acquired in the fourth quarter of 2022. The Company has also re-aligned its previously reported Principal Investments - Communications and Other segment into the Communications segment and the All Other category that is reported with Corporate and Other.

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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

In connection with the preparation of the consolidated financial statements for the year ended December 31, 2022, the Company identified a classification error of dividend income and realized and unrealized gains (losses) on certain investments within revenue. The following tables summarize the effects of the correction of the classification error on the Company’s restated condensed consolidated statements of operations for the three months ended March 31, 2022. The classification error had no impact on the Company's condensed consolidated balance sheet, condensed consolidated statements of equity, cash flows, net income, or earnings per share.

The following tables present the corrections by financial statement line item within the condensed consolidated statement of operations for all periods presented:

	Three Months Ended March 31, 2022
	As Previously Reported		Restatement Adjustments		Restatement Reference	As Restated
Statement of Operations
Revenues:
Services and fees	$	210,675	$	(7,861)	(a)	$	202,814
Trading (loss) income and fair value adjustments on loans	(68,390)		49,112		(b)	(19,278)
Interest income - Loans and securities lending	61,426		—			61,426
Sale of goods	1,878		—			1,878
Total revenues	205,589		41,251			246,840
Operating expenses:
Direct cost of services	11,651		—			11,651
Cost of goods sold	2,251		—			2,251
Selling, general and administrative expenses	175,199		—			175,199
Interest expense - Securities lending and loan participations sold	11,766		—			11,766
Total operating expenses	200,867		—			200,867
Operating income	4,722		41,251			45,973
Other income (expense):
Interest income	67		—			67
Dividend income	—		7,861		(a)	7,861
Realized and unrealized gains (losses) on investments	—		(49,112)		(b)	(49,112)
Change in fair value of financial instruments and other	5,981		—			5,981
Income from equity method investments	6,775		—			6,775
Interest expense	(30,436)		—			(30,436)
Loss before income taxes	(12,891)		—			(12,891)
Provision for income taxes	3,695		—			3,695
Net loss	(9,196)		—			(9,196)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests	866		—			866
Net loss attributable to B. Riley Financial, Inc.	(10,062)		—			(10,062)
Preferred stock dividends	2,002		—			2,002
Net loss available to common shareholders	$	(12,064)	$	—		$	(12,064)
Basic loss per common share	$	(0.43)				$	(0.43)
Diluted loss per common share	$	(0.43)				$	(0.43)
Weighted average basic common shares outstanding	27,855,033					27,855,033
Weighted average diluted common shares outstanding	27,855,033					27,855,033

(a) To reclassify dividends received from investments from Services and fees to Dividend income.

(b) To reclassify realized and unrealized gains (losses) on investments from Trading income (loss) and fair value on loans to Realized and unrealized gains (losses) on investments.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements include the accounts of B. Riley Financial, Inc. and its wholly owned and majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated upon consolidation.

The Company consolidates all entities that it controls through a majority voting interest. In addition, the Company performs an analysis to determine whether its variable interest or interests give it a controlling financial interest in a variable interest entity (“VIE”) including ongoing reassessments of whether it is the primary beneficiary of a VIE. See Note 3(o) for further discussion.

The condensed consolidated financial statements have been prepared by the Company, without audit, pursuant to interim financial reporting guidelines and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company’s management, all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included. These condensed consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 16, 2023. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods.

(b) Use of Estimates

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expense during the reporting period. Estimates are used when accounting for certain items such as valuation of securities, allowance for doubtful accounts, the fair value of loans receivables, intangible assets and goodwill, share based arrangements, contingent consideration, and accounting for income tax valuation allowances, recovery of contract assets and sales returns and allowances. Estimates are based on historical experience, where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.

(c) Interest Expense — Securities Lending Activities

Interest expense from securities lending activities is included in operating expenses related to operations in the Capital Markets segment. Interest expense from securities lending activities is incurred from equity and fixed income securities that are loaned to the Company and totaled $32,424 and $11,766 during the three months ended March 31, 2023 and 2022, respectively.

(d) Concentration of Risk

Revenues in the Capital Markets, Financial Consulting, Wealth Management, and Communications segments are primarily generated in the United States. Revenues in the Auction and Liquidation segment and Consumer segment are primarily generated in the United States, Australia, Canada, and Europe.

The Company maintains cash in various federally insured banking institutions. The account balances at each institution periodically exceed the Federal Deposit Insurance Corporation’s (“FDIC”) insurance coverage, and as a result, there is a concentration of credit risk related to amounts in excess of FDIC insurance coverage. The Company has not experienced any losses in such accounts. The Company also has substantial cash balances from proceeds received from auctions and liquidation engagements that are distributed to parties in accordance with the collaborative arrangements.

The Company’s activities in the Auction and Liquidation segment are executed frequently with, and on behalf of, distressed customers and secured creditors. Concentrations of credit risk can be affected by changes in economic, industry, or geographical factors. The Company seeks to control its credit risk and potential risk concentration through risk management activities that limit the Company’s exposure to losses on any one specific liquidation services contract or concentration within any one specific industry. To mitigate the exposure to losses on any one specific liquidations services contract, the Company sometimes conducts operations with third parties through collaborative arrangements.

(e) Advertising Expenses

The Company expenses advertising costs, which consist primarily of costs for printed materials, as incurred. Advertising costs totaled $5,121 and $1,763 during the three months ended March 31, 2023 and 2022, respectively. Advertising expense was included as a component of selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

(f) Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

(g) Restricted Cash

As of March 31, 2023 and December 31, 2022, restricted cash included $2,351 and $2,308 of cash collateral for leases, respectively.

Cash, cash equivalents and restricted cash consist of the following:

	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	209,971	$	268,618
Restricted cash	2,351		2,308
Total cash, cash equivalents and restricted cash	$	212,322	$	270,926

(h) Loans Receivable

Under ASC 326 - Financial Instruments – Credit Losses, the Company elected the irrevocable fair value option for all outstanding loans receivable that were previously measured at amortized cost. Under the fair value option, loans receivables are measured at each reporting period based upon their exit value in an orderly transaction and unrealized gains or losses from changes in fair value are recorded in the condensed consolidated statements of operations. These loans are no longer subject to evaluation for impairment through an allowance for loan loss as such losses will be captured through fair value changes.

Loans receivable, at fair value totaled $772,085 and $701,652 as of March 31, 2023 and December 31, 2022, respectively. The loans have various maturities through March 2027. As of March 31, 2023 and December 31, 2022, the historical cost of loans receivable accounted for under the fair value option was $795,996 and $769,022, respectively, which included principal balances of $799,616 and $772,873 respectively, and unamortized costs, origination fees, premiums and discounts, totaling $3,620 and $3,851, respectively. During the three months ended March 31, 2023 and 2022, the Company recorded net unrealized gains of $43,459 and $10,937, respectively, on the loans receivable at fair value, which was included in trading income (losses) and fair value adjustments on loans on the condensed consolidated statements of operations. Loans receivable, at fair value on non-accrual was $39,552 and $7,153 as of March 31, 2023 and December 31, 2022, respectively, which represented approximately 5.1% and 1.0% of total loans receivable, at fair value as of March 31, 2023 and December 31, 2022, respectively.

The Company may periodically provide limited guarantees to third parties for loans that are made to investment banking and lending clients. As of March 31, 2023, the Company has outstanding limited guarantee arrangements with respect to Babcock & Wilcox Enterprises, Inc. (“B&W”) as further described in Note 17. In accordance with the new credit loss standard, the Company evaluates the need to record an allowance for credit losses for these loan guarantees since they have off-balance sheet credit exposures. As of March 31, 2023, the Company has not recorded any provision for credit

losses on the B&W guarantees since the Company believes that there is sufficient collateral to protect the Company from any credit loss exposure.

Interest income on loans receivable is recognized based on the stated interest rate of the loan on the unpaid principal balance plus the amortization of any costs, origination fees, premiums and discounts and is included in interest income - loans and securities lending on the condensed consolidated statements of operations. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. Unearned income, discounts and premiums are amortized to interest income using a level yield methodology.

Badcock Loan Receivable

On December 20, 2021, the Company entered into a Master Receivables Purchase Agreement with W.S. Badcock Corporation, a Florida corporation (“WSBC”), an indirect wholly owned subsidiary of Franchise Group, Inc., a Delaware corporation (“FRG”). The Company paid $400,000 in cash to WSBC for the purchase of certain consumer credit receivables of WSBC. On September 23, 2022, the Company's subsidiary, B Riley Receivables II, LLC (“BRRII”), a Delaware limited liability company, entered into a Master Receivables Purchase Agreement (“2022 Badcock Receivable”) with WSBC. This purchase of $168,363 consumer credit receivables of WSBC was partially financed by a $148,200 term loan discussed in Note 11. During the three months ended March 31, 2023, BRRII entered into Amendment No. 2 and No. 3 to the 2022 Badcock Receivable with WSBC for a total of $145,278 in additional consumer credit receivables. The accounting for these transactions resulted in the Company recording a loan receivable from WSBC with the recognition of interest income at an imputed rate based on the cash flows expected to be received from the collection of the consumer receivables that serve as collateral for the loan. The loan receivable was measured at fair value on the condensed consolidated balance sheets.

In connection with these loans, the Company entered into a Servicing Agreement with WSBC pursuant to which WSBC will provide to the Company certain customary servicing and account management services in respect of the receivables purchased by the Company under the Receivables Purchase Agreement. In addition, subject to certain terms and conditions, FRG has agreed to guarantee the performance by WSBC of its obligations under the Master Receivables Purchase Agreements and the Servicing Agreement.

As of March 31, 2023 and December 31, 2022, loans receivable to WSBC in the Company's condensed consolidated balance sheets included loans measured at fair value in the amount of $324,328 and $318,109, respectively.

(i) Securities and Other Investments Owned and Securities Sold Not Yet Purchased

Securities and other investments owned consist of marketable securities and investments in partnership interests and other securities recorded at fair value. Securities sold, but not yet purchased represents obligations of the Company to deliver the specified security at the contracted price and thereby create a liability to purchase the security in the market at prevailing prices. Changes in the value of these securities are reflected currently in the results of operations.

As of March 31, 2023 and December 31, 2022, the Company’s securities and other investments owned and securities sold not yet purchased at fair value consisted of the following securities:

	March 31, 2023		December 31, 2022
Securities and other investments owned:
Equity securities	$	929,582	$	1,046,710
Corporate bonds	65,470		8,539
Other fixed income securities	5,248		3,956
Partnership interests and other	48,930		70,063
	$	1,049,230	$	1,129,268
Securities sold not yet purchased:
Equity securities	$	6,122	$	4,466
Corporate bonds	480		1,162
Other fixed income securities	1,204		269
	$	7,806	$	5,897

The Company owns certain equity securities that are accounted for under the fair value option where the Company would otherwise use the equity method of accounting. Investments become subject to the equity method of accounting when the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the Company possesses more than 20% of the voting interests of the investee. However, the Company may have the ability to exercise significant influence over the investee when the Company owns less than 20% of the voting interests of the investee depending on the facts and circumstances that demonstrate that the ability to exercise influence is present, such as when the Company has representation on the board of directors of such investee.

The following tables contain summarized financial information with respect to two of the Company's individually greater than 20% investments, where the Company has a voting interest in each investee of 41% and 43%, respectively, which has been aggregated and included below for purposes of the disclosure a quarter in arrears (for balance sheet information the period ended December 31, 2022 and September 30, 2022 correspond to the period ended March 31, 2023 and December 31, 2022, respectively, of the Company and for income statement information the three months ended December 31, 2022 and 2021 correspond to the three months ended March 31, 2023 and 2022, respectively, of the Company), which is the period in which the most recent financial information is available:

	December 31, 2022		September 30, 2022
Total assets	$	197,101	$	202,520
Total liabilities	$	6,789	$	5,737
Equity attributable to investee	$	190,312	$	196,783

	For the three months ended December 31,
	2022		2021
Revenues	$	27,971	$	27,209
Net income (loss) attributable to investees	$	11,808	$	12,882

The following tables contain summarized financial information with respect to B&W, where the Company owns a 31% voting interest, included below for purposes of the disclosure a quarter in arrears (for balance sheet information the period ended December 31, 2022 and September 30, 2022 correspond to the period ended March 31, 2023 and December 31, 2022, respectively, of the Company and for income statement information the three months ended December 31, 2022 and 2021 correspond to the three months ended March 31, 2023 and 2022, respectively, of the Company), which is the period in which the most recent financial information is available:

	December 31, 2022		September 30, 2022
Total assets	$	942,655	$	881,567
Total liabilities	$	944,744	$	898,695
Equity attributable to investee	$	(2,089)	$	(17,128)

	For the three months ended December 31,
	2022		2021
Revenues	$	249,877	$	192,295
Net income attributable to investees	$	2,021	$	25,874

As of March 31, 2023 and December 31, 2022, the fair value of these equity securities totaled $370,502 and $371,948, respectively, and are included in securities and other investments owned, at fair value in the condensed consolidated balance sheets.

(j) Fair Value Measurements

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) for identical instruments that are highly liquid, observable, and actively traded in over-the-counter markets. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable and can be corroborated by market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The Company’s securities and other investments owned and securities sold and not yet purchased are comprised of common and preferred stocks and warrants, corporate bonds, and investments in partnerships. Investments in common stocks that are based on quoted prices in active markets are included in Level 1 of the fair value hierarchy. The Company also holds loans receivable valued at fair value, nonpublic common and preferred stocks and warrants for which there is little or no public market and fair value is determined by management on a consistent basis. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks. These investments are included in Level 3 of the fair value hierarchy. Investments in partnership interests include investments in private equity partnerships that primarily invest in equity securities, bonds, and direct lending funds. The Company also invests in priority investment funds and the underlying securities held by these funds are primarily corporate and asset-backed fixed income securities and restrictions exist on the redemption of amounts invested by the Company. The Company’s partnership and investment fund interests are valued based on the Company’s proportionate share of the net assets of the partnerships and funds; the value for these investments is derived from the most recent statements received from the general partner or fund administrator. These partnership and investment fund interests are valued at net asset value (“NAV”) in accordance with ASC 820 - Fair Value Measurements. As of March 31, 2023 and December 31, 2022, partnership and investment fund interests valued at NAV of $48,930 and $70,063, respectively, are included in securities and other investments owned in the accompanying condensed consolidated balance sheets.

Securities and other investments owned also include investments in nonpublic entities that do not have a readily determinable fair value and do not report NAV per share. These investments are accounted for using a measurement alternative under which they are measured at cost and adjusted for observable price changes and impairments. Observable

price changes result from, among other things, equity transactions for the same issuer executed during the reporting period, including subsequent equity offerings or other reported equity transactions related to the same issuer. For these transactions to be considered observable price changes of the same issuer, we evaluate whether these transactions have similar rights and obligations, including voting rights, distribution preferences, conversion rights, and other factors, to the investments we hold. Any investments adjusted to their fair value by applying the measurement alternative are disclosed as nonrecurring fair value measurements, including the level in the fair value hierarchy that was used. As of March 31, 2023 and December 31, 2022, investments in nonpublic entities valued using a measurement alternative of $86,920 and $94,109, respectively, are included in securities and other investments owned in the accompanying condensed consolidated balance sheets.

The Company measures certain assets at fair value on a nonrecurring basis. These assets include equity method investments when they are deemed to be other-than-temporarily impaired, investments adjusted to their fair value by applying the measurement alternative, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. The Company did not have any material assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition as of March 31, 2023 and December 31, 2022.

As of March 31, 2023 and December 31, 2022, funds held in trust represents amounts invested in a mutual fund that invests in U.S. Treasury securities that were purchased with funds raised through the initial public offering of B. Riley Principal 250 Merger Corporation (“BRPM 250”), which is a consolidated special purpose acquisition corporation (“SPAC”). As of March 31, 2023 and December 31, 2022, the Company had $176,182 and $174,437, respectively, of funds held in trust related to the SPAC. The funds raised are held in a trust account that is restricted for use and may only be used for purposes of completing an initial business combination or redemption of the class A public common shares of the SPAC as set forth in the trust agreement. The funds held in trust are included within Level 1 of the fair value hierarchy and included in prepaid expenses and other assets in the accompanying condensed consolidated balance sheets.

The Company has warrant liabilities related to warrants of the SPAC that are held by investors in BRPM 250. The warrants are accounted for as liabilities in accordance with ASC 815 - Derivatives and Hedging and are measured at fair value at inception and on a recurring basis using quoted prices in over-the-counter markets. Warrant liabilities are included in Level 1 of the fair value hierarchy and included in accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets in the amount of $381 and $173 for BRPM 250 as of March 31, 2023 and December 31, 2022, respectively. Changes in fair value of warrants are included within change in fair value of financial instruments and other as part of other income (expense) in the consolidated statements of operations. The fair value of mandatorily redeemable noncontrolling interests is determined based on the issuance of similar interests for cash, references to industry comparables, and relied, in part, on information obtained from appraisal reports and internal valuation models.

The following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.

	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2023 Using
	Fair value as of March 31, 2023		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	176,182	$	176,182	$	—	$	—
Securities and other investments owned:
Equity securities	842,662		483,621		—		359,041
Corporate bonds	65,470		53,716		11,754		—
Other fixed income securities	5,248		—		5,248		—
Total securities and other investments owned	913,380		537,337		17,002		359,041
Loans receivable, at fair value	772,085		—		—		772,085
Total assets measured at fair value	$	1,861,647	$	713,519	$	17,002	$	1,131,126
Liabilities:
Securities sold not yet purchased:
Equity securities	$	6,122	$	6,122	$	—	$	—
Corporate bonds	480		—		480		—
Other fixed income securities	1,204		—		1,204		—
Total securities sold not yet purchased	7,806		6,122		1,684		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654		—		—		4,654
Warrant liabilities	381		381		—		—
Contingent consideration	28,884		—		—		28,884
Total liabilities measured at fair value	$	41,725	$	6,503	$	1,684	$	33,538

	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2022 Using
	Fair value at December 31, 2022		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	174,437	$	174,437	$	—	$	—
Securities and other investments owned:
Equity securities	952,601		584,136		—		368,465
Corporate bonds	8,539		—		8,539		—
Other fixed income securities	3,956		—		3,956		—
Total securities and other investments owned	965,096		584,136		12,495		368,465
Loans receivable, at fair value	701,652		—		—		701,652
Total assets measured at fair value	$	1,841,185	$	758,573	$	12,495	$	1,070,117
Liabilities:
Securities sold not yet purchased:
Equity securities	$	4,466	$	4,466	$	—	$	—
Corporate bonds	1,162		—		1,162		—
Other fixed income securities	269		—		269		—
Total securities sold not yet purchased	5,897		4,466		1,431		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		—		4,648
Warrant liabilities	173		173		—		—
Contingent consideration	31,046		—		—		31,046
Total liabilities measured at fair value	$	41,764	$	4,639	$	1,431	$	35,694

As of March 31, 2023 and December 31, 2022, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $1,131,126 and $1,070,117, respectively, or 17.1% and 17.5%, respectively, of the Company’s total assets. In determining the fair value for these Level 3 financial assets, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity.

The following table summarizes the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of March 31, 2023 and December 31, 2022:

	Fair value at March 31, 2023		Valuation Technique	Unobservable Input	Range	Weighted Average
Assets:
Equity securities	$	297,136	Market approach	Multiple of EBITDA	1.5x - 16.0x	6.3x
				Multiple of Sales	3.8x	3.8x
				Market price of related security	$0.01 - $14.05	$7.33
	57,974		Discounted cash flow	Market interest rate	23.8%	23.8%
	3,931		Option pricing model	Annualized volatility	30.0% - 510.0%	80.0%
Loans receivable at fair value	744,018		Discounted cash flow	Market interest rate	9.7% - 35.6%	18.1%
	28,067		Market approach	Market price of related security	$13.25	$13.25
Total level 3 assets measured at fair value	$	1,131,126
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,654	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	28,884		Discounted cash flow	EBITDA volatility	75%	75%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
				Revenue volatility	5.1%	5.1%
Total level 3 liabilities measured at fair value	$	33,538

	Fair value at December 31, 2022		Valuation Technique	Unobservable Input	Range	Weighted  Average
Assets:
Equity securities	$	304,172	Market approach	Multiple of EBITDA	1.5x - 10.5x	6.0x
				Multiple of Sales	3.0x	3.0x
				Market price of related security	$10.01 - $18.88	$16.91
	57,267		Discounted cash flow	Market interest rate	23.8%	23.8%
	7,026		Option pricing model	Annualized volatility	0.3% - 26.1%	70.0%
Loans receivable at fair value	694,499		Discounted cash flow	Market interest rate	6.0% - 83.5%	23.9%
	7,153		Market approach	Multiple of EBITDA	4.5x	4.5x
Total level 3 assets measured at fair value	$	1,070,117
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,648	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	31,046		Discounted cash flow	EBITDA volatility	80.0%	80.0%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
Total level 3 liabilities measured at fair value	$	35,694

The changes in Level 3 fair value hierarchy during the three months ended March 31, 2023 and 2022 were as follows:

	Level 3 Balance at Beginning of Year		Level 3 Changes During the Period								Level 3 Balance at End of Period
			Fair Value Adjustments		Relating to Undistributed Earnings		Purchases, Sales and Settlements		Transfer in and/or out of Level 3
Three Months Ended March 31, 2023
Equity securities	$	368,465	$	(9,016)	$	—	$	6,487	$	(6,895)	$	359,041
Loans receivable at fair value	701,652		43,459		231		26,743		—		772,085
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		308		(302)		—		4,654
Contingent consideration	31,046		(3,447)		—		1,285		—		28,884
Three Months Ended March 31, 2022
Equity securities	$	377,549	$	(4,543)	$	—	$	19,912	$	(4,254)	$	388,664
Loans receivable at fair value	873,186		10,937		3,238		(4,970)		—		882,391
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,506		—		247		(251)		—		4,502
Contingent consideration	—		—		—		22,464		—		22,464

The amount reported in the table above as of March 31, 2023 and December 31, 2022 included the amount of undistributed earnings attributable to the noncontrolling interests that is distributed on a quarterly basis. The carrying amounts reported in the condensed consolidated financial statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value based on the short-term maturity of these instruments.

As of March 31, 2023 and December 31, 2022, the senior notes payable had a carrying amount of $1,722,977 and $1,721,751, respectively, and fair value of $1,258,532 and $1,431,787, respectively. The carrying amount of the term loans approximates fair value because the effective yield of such instruments are consistent with current market rates of interest for instruments of comparable credit risk.

The investments in nonpublic entities that do not report NAV are measured at cost, adjusted for observable price changes and impairments, with changes recognized in trading income (losses) and fair value adjustments on loans on the condensed consolidated statements of operations. These investments are evaluated on a nonrecurring basis based on the observable price changes in orderly transactions for the identical or similar investment of the same issuer. Further adjustments are not made until another observable transaction occurs. Therefore, the determination of fair values of these investments in nonpublic entities that do not report NAV does not involve significant estimates and assumptions or subjective and complex judgments. Investments in nonpublic entities that do not report NAV are subject to a qualitative assessment for indicators of impairment. If indicators of impairment are present, the Company is required to estimate the investment’s fair value and immediately recognize an impairment charge in an amount equal to the investment’s carrying value in excess of its estimated fair value.

The following table presents information on the assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2023 and December 31, 2022. These investments were measured due to an observable price change or impairment during the periods below.

	Fair Value Measurement Using
	Total		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
As of March 31, 2023
Investments in nonpublic entities that do not report NAV	$	4,271	$	—	$	—	$	4,271
As of December 31, 2022
Investments in nonpublic entities that do not report NAV	$	20,251	$	—	$	18,659	$	1,592

(k) Derivative and Foreign Currency Translation

The Company periodically uses derivative instruments, which primarily consist of the purchase of forward exchange contracts, for certain loans receivable and Auction and Liquidation engagements with operations outside the United States. As of March 31, 2023 and December 31, 2022, there were no forward exchange contracts outstanding.

The forward exchange contracts were entered into to improve the predictability of cash flows related to a retail store liquidation engagement and a loan receivable. The net gain from forward exchange contracts was zero and $68 during the three months ended March 31, 2023 and 2022, respectively. This amount was reported as a component of selling, general and administrative expenses in the condensed consolidated statements of operations.

The Company transacts business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country’s currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using period-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets. Transaction losses were $234 and gains were $296 during the three months ended March 31, 2023 and 2022, respectively. These amounts were included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.

As disclosed in Note 3(o) below, the Company has consolidated a VIE, BRPM 250, which has outstanding warrants that were issued in its initial public offerings. The warrants have been recorded as a liability since the warrants contain a provision to be settled in cash in the event of a qualifying cash tender offer for BRPM 250, which is outside the control of the Company. The outstanding warrants are considered derivative instruments with the warrant liability measured at fair value at each reporting date until exercised or upon expiration, with changes in fair value reported in other income in the condensed consolidated statements of operations. As of March 31, 2023 and December 31, 2022, the warrant liability for BRPM 250 totaled $381 and $173, respectively, which was included in accrued expenses and other liabilities in the condensed consolidated balance sheet.

(l) Redeemable Noncontrolling Interests in Equity of Subsidiaries

The Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the class A ordinary shareholders in the BRPM 250 sponsored SPAC and the 20% noncontrolling interest of Lingo Management, LLC (“Lingo”), which on February 24, 2023, the Company acquired, increasing its ownership interest in Lingo to 100%. These interests are presented as redeemable noncontrolling interests in equity of subsidiaries within the condensed consolidated balance sheet, outside of the permanent equity section. The class A ordinary shareholders of BRPM 250 have redemption rights that are considered to be outside of the Company’s control. Remeasurements to the redemption value of the redeemable noncontrolling interest in equity of subsidiaries are recorded within retained earnings (accumulated deficit). The operating agreement with Lingo has provisions which result in the noncontrolling interest being accounted for as temporary equity. Net income (losses) are reflected in net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in the condensed consolidated statement of operations.

Changes to redeemable noncontrolling interest consist of the following:

	Three Months Ended March 31, 2023
Balance, December 31, 2022	$	178,622
Net loss	(146)
Purchase of Lingo minority interest	(11,190)
Remeasurement adjustments for Lingo and BRPM 250	7,681
Balance, March 31, 2023	$	174,967

(m) Equity Investment

As of March 31, 2023 and December 31, 2022, equity investments of $41,816 and $41,298, respectively, were included in prepaid expenses and other assets in the accompanying condensed consolidated balance sheets. The Company’s share of earnings or losses from equity method investees was included in income from equity investments in the accompanying condensed consolidated statements of operations.

bebe stores, inc.

As of March 31, 2023 and December 31, 2022, the Company had a 41.3% and 40.1% ownership interest in bebe stores, inc. (“bebe”), respectively. The equity ownership in bebe was accounted for under the equity method of accounting and was included in prepaid expenses and other assets in the condensed consolidated balance sheets. The common stock of bebe is publicly traded. The fair value of bebe as of March 31, 2023 and December 31, 2022 was $22,573 and $25,423, respectively. The carrying value of the investment in bebe as of March 31, 2023 and December 31, 2022 was $40,937 and $40,383, respectively.

As of March 31, 2023, the carrying value of the Company’s equity method investment in bebe exceeded the fair value based on the quoted market prices. In consideration of these facts, the Company evaluated its investment for other than temporary impairment under ASC 323. The Company did not utilize bright-line tests in the evaluation. Based on the available facts and information regarding the operating results of bebe, the Company’s ability and intent to hold the investments until recovery, the relative amount of the declines, and the length of time that the fair values were less than the carrying values, the Company concluded that recognition of impairment losses in earnings was not required. However, the Company will continue to monitor the investment and it is possible that impairment losses will be recorded in earnings in future periods based on changes in facts and circumstances or intentions.

Other Equity Investments

The Company had other equity method investments over which the Company exercises significant influence but that did not meet the requirements for consolidation, the largest ownership interest being a 40% ownership interest in Lingo, which was acquired in November 2020. On May 31, 2022, the Company's ownership increased to 80% and Lingo's operating results were consolidated with the Company. On February 24, 2023, the Company acquired the remaining 20% ownership in Lingo, increasing the Company's ownership interest from 80% to 100%. The equity ownership in these other investments was accounted for at the applicable times under the equity method of accounting and was included in prepaid expenses and other assets in the condensed consolidated balance sheets.

(n) Supplemental Non-cash Disclosures

During the three months ended March 31, 2023, non-cash investing activities included $15,000 of a convertible note receivable which was included in loans receivable, at fair value, that converted into an equity security, $1,190 of loans receivable, at fair value, was credited to the consideration paid for the purchase of the Lingo noncontrolling interest, and $2,111 of common stock issued as part of the purchase price consideration for a business acquisition. During the three months ended March 31, 2023, non-cash financing activities included $7,000 in seller financing related to the purchase of the Lingo noncontrolling interest. During the three months ended March 31, 2022, non-cash investing activities included $20,320 in issuance of the Company's common stock as part of the purchase price consideration from the FocalPoint acquisition and $22,661 in seller financing for deferred cash consideration.

(o) Variable Interest Entities

The Company holds interests in various entities that meet the characteristics of a VIE but are not consolidated as the Company is not the primary beneficiary. Interests in these entities are generally in the form of equity interests, loans receivable, or fee arrangements.

The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed.

The Company, has entered into agreements to provide investment banking and advisory services to numerous investment funds (the “Funds”) that are considered variable interest entities under the accounting guidance.

The Company earns fees from the Funds in the form of placement agent fees and carried interest. For placement agent fees, the Company receives a cash fee of generally 7% to 10% of the amount of raised capital for the Funds and the fee is recognized at the time the placement services occurred. The Company receives carried interest as a percentage allocation (8% to 15%) of the profits of the Funds as compensation for asset management services provided to the Funds and it is recognized under the ownership model of ASC 323 - Investments – Equity Method and Joint Ventures as an equity method investment with changes in allocation recorded currently in the results of operations. As the fee arrangements under such agreements are arm’s length and contain customary terms and conditions and represent compensation that is considered fair value for the services provided, the fee arrangements are not considered variable interests and accordingly, the Company does not consolidate such VIEs.

Placement agent fees attributable to such arrangements during the three months ended March 31, 2023 and 2022 were zero and $12,051, respectively, and were included in services and fees in the condensed consolidated statements of operations.

The carrying value of the Company’s investments in the VIEs that were not consolidated is shown below.

	March 31, 2023		December 31, 2022
Securities and other investments owned, at fair value	$	35,383	$	33,743
Loans receivable, at fair value	58,611		46,700
Other assets	2,570		3,755
Maximum exposure to loss	$	96,564	$	84,198

B. Riley Principal 150 and 250 Merger Corporations

In 2021, the Company along with BRPM 150 and BRPM 250, both newly formed special purpose acquisition companies incorporated as Delaware corporations, consummated the initial public offerings of 17,250,000 units of BRPM 150 and 17,250,000 units of BRPM 250. Each Unit of BRPM 150 and BRPM 250 consisted of one share of class A common stock and one-third of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one share of BRPM 150 or BRPM 250 class A common stock at an exercise price of $11.50 per share. The BRPM 150 and BRPM 250 Units were each sold at a price of $10.00 per unit, generating gross proceeds to BRPM 150 of $172,500 and BRPM 250 of $172,500. These proceeds which totaled $345,000 were deposited in a trust account established for the benefit of the BRPM 150 and BRPM 250 class A public shareholders and was included in prepaid expenses and other assets in the condensed balance sheet. These proceeds are invested only in U.S. treasury securities in accordance with the governing documents of BRPM 150 and BRPM 250. Under the terms of the BRPM 150 and BRPM 250 initial public offerings, BRPM 150 and BRPM 250 are required to consummate a business combination transaction within 24 months (or 27 months under certain circumstances) of the completion of their respective initial public offerings.

In connection with the completion of the initial public offerings of BRPM 150 and BRPM 250, the Company invested in the private placement units of BRPM 150 and BRPM 250. Both BRPM 150 and BRPM 250 are determined to be VIE’s because each of the entities do not have enough equity at risk to finance their activities without additional subordinated financial support. The Company has determined that the class A shareholders of BRPM 150 and BRPM 250 do not have

substantive rights as shareholders of BRPM 150 and BRPM 250 since these equity interests are determined to be temporary equity. As such, the Company has determined that it is the primary beneficiary of BRPM 150 and BRPM 250 as it has the right to receive benefits or the obligation to absorb losses of each of the entities, as well as the power to direct a majority of the activities that significantly impact BRPM 150 and BRPM 250’s economic performance. Since the Company is determined to be the primary beneficiary, BRPM 150 and BRPM 250 are consolidated into the Company’s financial statements.

On July 19, 2022, BRPM 150 completed a business combination with FaZeClan Holdings, Inc. (“Faze Holdings”) in a reverse merger transaction resulting in BRPM 150 no longer being a VIE of the Company and no longer being included in the consolidated group of the Company. In connection with the de-consolidation of BRPM 150, among other items, prepaid expenses and other assets decreased by $172,584 related to funds held in a trust account and redeemable noncontrolling interests in equity of subsidiaries decreased by $172,500. During the year ended December 31, 2022, the Company recognized incentive fees of $41,885, which was included in services and fees in the consolidated statement of operations.

On April 21, 2023, the Board of Directors of BRPM 250 approved a plan to redeem all of the outstanding shares of Class A common stock of BRPM 250, effective as of May 4, 2023. On May 4, 2023, the funds held in trust in the amount of $176,182 which is included in prepaid expenses and other assets will be distributed to pay income taxes and redeem the $174,967 of the redeemable noncontrolling interest in equity of subsidiaries that is included in the condensed consolidated balance sheet as of March 31, 2023.

(p) Recent Accounting Standards

Not yet adopted

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820). This update clarifies that a contractual restriction on the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security’s unit of account. Therefore, a contractual sale restriction should not be considered when measuring an equity security’s fair value. The update also prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. Specific disclosures related to equity securities subject to contractual sale restrictions are required and include the fair value of such equity securities on the balance sheet, the nature and remaining duration of the corresponding restrictions, and any circumstances that could cause a lapse in the restrictions. The amendments in this update are effective for the Company for fiscal periods beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. Investment companies as defined by Topic 946 should apply the amendments in this update to an equity security with a contract containing a sale restriction that was executed or modified on or after the date of adoption. For an equity security with a contract containing a sale restriction that was executed before the date of adoption, investment companies should continue to account for the equity security under their historical accounting policy for measuring such securities until the contractual restrictions expire or are modified. The Company has not yet adopted this update and is currently evaluating the effect, if any, this new standard will have on its financial position and results of operations.

Recently adopted

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations to enhance transparency about an entity’s use of supplier finance programs. Under the ASU, the buyer in a supplier finance program is required to disclose information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. An entity should also consider whether the existence of a supplier finance program changes the appropriate presentation of the payables in the program from trade payables to borrowings. The Company adopted the ASU effective January 1, 2023. The ASU had no impact on the consolidated results of operations, cash flows, and financial position and was immaterial to the financial statement disclosures.

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ACQUISITIONS

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

2022 Acquisitions

Acquisition of Targus

On October 18, 2022, the Company acquired all of the issued and outstanding shares of Targus in a transaction pursuant to a purchase agreement among Targus, the sellers identified therein, and the other parties thereto. The purchase price consideration totaled $247,546, which consisted of cash in the amount of $112,686, seller financing of $54,000, the issuance of $59,016 in 6.75% senior notes due 2024, the issuance of $15,328 of the Company’s common stock and stock options, and deferred payments of $6,515. In accordance with ASC 805, the Company used the acquisition method of accounting for this acquisition. Goodwill of $78,519 and other intangible assets of $89,000 were recorded as a result of the acquisition. The acquisition complements the Company’s existing investments and offers potential growth to the Company’s operations in the Consumer segment.

The assets and liabilities of Targus, both tangible and intangible, were recorded at their estimated fair values as of the October 18, 2022 acquisition date. Acquisition related costs, such as legal, accounting, valuation and other professional fees related to the acquisition of Targus, were charged against earnings in the amount of $1,921 and included in selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2022. Targus goodwill recognized subsequent to the acquisition will be non-deductible for tax purposes.

The fair value of acquisition consideration and preliminary purchase price allocation was as follows:

Consideration paid:
Cash	$	112,686
Fair value of seller financing	54,000
Fair value of 2,400,000 RILYO shares issued in senior notes at $24.59 per share	59,016
Fair value of 227,491 B. Riley common shares issued at $42.11 per share	9,580
Fair value of 215,876 stock options attributable to service period prior to acquisition	5,749
Fair value of deferred payments	6,515
Total consideration	$	247,546
Assets acquired and liabilities assumed:
Cash and cash equivalents	$	18,810
Accounts receivable	91,039
Prepaid and other assets	90,289
Right-of-use assets	7,665
Property and equipment	8,320
Other intangible assets	89,000
Accounts payable	(54,553)
Accrued expenses and other liabilities	(61,677)
Deferred income taxes	(9,989)
Contingent consideration	(2,212)
Lease liability	(7,665)
Net tangible assets acquired and liabilities assumed	169,027
Goodwill	78,519
Total	$	247,546

During the three months ended March 31, 2023, goodwill for Targus changed by $2,766 related to certain purchase price accounting adjustments.

The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:

Category	Useful life	Fair Value
Customer relationships	9 years	$	50,000
Internally developed software and other intangibles	1 to 3 years	4,000
Tradenames	N/A	35,000
Total		$	89,000

Unaudited Pro Forma Information

Acquisition of Targus

The following unaudited pro forma financial information is presented to illustrate the estimated effects of the acquisition of Targus as if it had occurred on January 1, 2021. The pro forma amounts include the historical operating results of the Targus prior to the acquisition, with adjustments directly attributable to the acquisition. The pro forma results include adjustments and consequential tax effects to reflect incremental depreciation and amortization expense to be incurred based on preliminary fair values of the identifiable intangible assets acquired, the incremental interest expense associated with the issuance of debt to finance the acquisition, and the adjustments to exclude acquisition related costs incurred during the year ended December 31, 2022 and to recognize these costs during the year ended December 31, 2021 as if incurred on January 1, 2021. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations of the combined company were, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition.

	Pro Forma (unaudited)
	Three Months Ended March 31, 2022
Revenues	$	341,287
Net loss	$	(7,313)
Net loss attributable to B. Riley Financial, Inc.	$	(8,179)
Net loss attributable to common shareholders	$	(10,181)

These pro forma results do not necessarily represent the results of operations that would have been achieved if the acquisition had taken place on January 1, 2021, nor are they indicative of the results of operations for future periods.

Other Acquisitions

During the year ended December 31, 2022, the Company converted $17,500 of a loan receivable with Lingo into equity and the Company's ownership interest in Lingo increased from 40% to 80%. This resulted in the consolidation of Lingo and the pre-existing equity method investment was remeasured at fair value resulting in the recognition of a gain of $6,790, which is included in trading (losses) income and fair value adjustments on loans in the consolidated statements of operations. Upon the consolidation of Lingo on May 31, 2022, the total fair value of the assets of Lingo was $116,500 and the fair value of the 20% noncontrolling interest was $8,021. As part of the acquisition, the Company assumed liabilities in the amount of $32,172 and recorded goodwill of $34,412 and other intangible assets of $63,000 were recorded in the accompanying consolidated balance sheet.

The Company also completed the acquisitions of BullsEye Telecom (“BullsEye”), FocalPoint Securities, LLC (“FocalPoint”), and Atlantic Coast Fibers, LLC (“ACR”) (and related businesses), and other immaterial business. In accordance with ASC 805, the Company used the acquisition method of accounting for these acquisitions, which were not material to our consolidated financial statements. The aggregate purchase price consideration consisted of $145,987 in cash, $20,320 in issuance of common stock of the Company, $52,969 in assumed debt and other consideration payable. The purchase price allocation consisted of $151,925 in goodwill, $52,860 in intangible assets, and $2,522 in net assets acquired. The results of operations of the acquisitions which were not material have been included in our consolidated financial statements from the date of purchase. In February 2023, certain working capital holdback provisions in the

BullsEye purchase agreement were finalized resulting in the Company receiving $1,101 of cash which reduced goodwill from $151,925 to $150,824.

Valuation Assumptions for Purchase Price Allocation

Our valuation assumptions used to value the acquired assets and assumed liabilities require significant estimates, especially with respect to intangible assets, inventories, property and equipment, and deferred income taxes. In determining the fair value of intangible assets acquired, the Company must make assumptions about the future performance of the acquired businesses, including among other things, the forecasted revenue growth attributable to the asset groups and projected operating expenses inclusive of expected synergies, future cost savings, and other benefits expected to be achieved by combining the businesses acquired with the Company. The intangible assets acquired are primarily comprised of customer relationships, trade names and trademarks, developed technology, and backlog. The Company utilized widely accepted income-based, market-based, and cost-based valuation approaches to perform the preliminary purchase price allocations. The estimated fair value of the customer relationships and backlog are determined using the multi-period excess earnings method and the estimated fair value of the trade names and trademarks and developed technology are determined using the relief from royalty method. Both methods require forward looking estimates that are discounted to determine the fair value of the intangible asset using a risk-adjusted discount rate that is reflective of the level of risk associated with future estimates associated with the asset group that could be affected by future economic and market conditions.

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RESTRUCTURING CHARGE

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGE

RESTRUCTURING CHARGE

The Company had $93 and no restructuring charges during the three months ended March 31, 2023 and 2022, respectively. The restructuring charges during the three months ended March 31, 2023 were primarily related to reorganization and consolidation activities in the Wealth Management segment and the Communications segment. Reorganization and consolidation activities consisted of reductions in workforce and facility closures.

The following tables summarize the changes in accrued restructuring charge during the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
Balance, beginning of period	$	2,335	$	624
Restructuring charge	93		—
Cash paid	(438)		(27)
Non-cash items	6		2
Balance, end of period	$	1,996	$	599

The following table summarizes the restructuring activities by reportable segment during the three months ended March 31, 2023. There were no restructuring charges during the three months ended March 31, 2022.

	Wealth Management		Communications		Total
Restructuring charges for the three months ended March 31, 2023:
Employee termination	$	—	$	60	$	60
Facility closure and consolidation	33		—		33
Total restructuring charge	$	33	$	60	$	93

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SECURITIES LENDING

3 Months Ended

Mar. 31, 2023

Securities Lending [Abstract]

SECURITIES LENDING

SECURITIES LENDING The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of March 31, 2023 and December 31, 2022:

	Gross amounts recognized		Gross amounts offset in the consolidated balance sheets (1)		Net amounts included in the consolidated balance sheets		Amounts not offset in the consolidated balance sheets but eligible for offsetting upon counterparty default(2)		Net amounts
As of March 31, 2023
Securities borrowed	$	2,942,843	$	—	$	2,942,843	$	2,942,843	$	—
Securities loaned	$	2,937,982	$	—	$	2,937,982	$	2,937,982	$	—
As of December 31, 2022
Securities borrowed	$	2,343,327	$	—	$	2,343,327	$	2,343,327	$	—
Securities loaned	$	2,334,031	$	—	$	2,334,031	$	2,334,031	$	—

_________________________

(1)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

(2)Includes the amount of cash collateral held/posted.

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ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

The components of accounts receivable, net, include the following:

	March 31, 2023		December 31, 2022
Accounts receivable	$	116,411	$	144,120
Investment banking fees, commissions and other receivables	10,766		8,654
Total accounts receivable	127,177		152,774
Allowance for doubtful accounts	(6,324)		(3,664)
Accounts receivable, net	$	120,853	$	149,110

Additions and changes to the allowance for doubtful accounts consist of the following:

	Three Months Ended March 31,
	2023		2022
Balance, beginning of period	$	3,664	$	3,658
Add: Additions to reserve	3,173		405
Less: Write-offs	(488)		(960)
Less: Recovery	(25)		—
Balance, end of period	$	6,324	$	3,103

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PREPAID EXPENSES AND OTHER ASSETS

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER ASSETS

PREPAID EXPENSES AND OTHER ASSETS

Prepaid expenses and other assets consist of the following:

	March 31, 2023		December 31, 2022
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	$	176,182	$	174,437
Inventory	113,107		101,675
Equity method investments	41,816		41,298
Prepaid expenses	23,699		17,623
Unbilled receivables	14,857		14,144
Other receivables	67,902		66,403
Other assets	54,309		45,116
Prepaid expenses and other assets	$	491,872	$	460,696

Unbilled receivables represent the amount of contractual reimbursable costs and fees for services performed in connection with fee and service based contracts in the Auction and Liquidation segment, mobile handsets in the Communications segment, and consulting related engagements in the Financial Consulting segment.

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GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill was $523,997 and $512,595 as of March 31, 2023 and December 31, 2022, respectively.

The changes in the carrying amount of goodwill for the three months ended March 31, 2023 were as follows:

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Balance as of December 31, 2022	$	162,018	$	51,195	$	1,975	$	23,680	$	193,195	$	75,753	$	4,779	$	512,595
Acquisition of other business	—		—		—		7,273		—		—		2,428		9,701
Other	—		—		—		36		(1,101)		2,766		—		1,701
Balance as of March 31, 2023	$	162,018	$	51,195	$	1,975	$	30,989	$	192,094	$	78,519	$	7,207	$	523,997

During the three months ended March 31, 2023, the changes in goodwill included $36 of foreign currency translation amounts, $(1,101) of working capital settlements as described in Note 4, and $2,766 related to certain purchase price accounting adjustments.

Intangible assets consisted of the following:

		As of March 31, 2023						As of December 31, 2022
	Useful Life	Gross Carrying Value		Accumulated Amortization		Intangibles Net		Gross Carrying Value		Accumulated Amortization		Intangibles Net
Amortizable assets:
Customer relationships	1.0 to 16 Years	$	270,511	$	(94,872)	$	175,639	$	268,253	$	(87,049)	$	181,204
Domain names	7 years	185		(176)		9		185		(169)		16
Advertising relationships	8 years	100		(84)		16		100		(81)		19
Internally developed software and other intangibles	0.5 to 5 Years	28,295		(14,522)		13,773		28,295		(12,714)		15,581
Trademarks	3 to 10 Years	21,532		(5,185)		16,347		23,309		(6,307)		17,002
Total		320,623		(114,839)		205,784		320,142		(106,320)		213,822
Non-amortizable assets:
Tradenames		160,276		—		160,276		160,276		—		160,276
Total intangible assets		$	480,899	$	(114,839)	$	366,060	$	480,418	$	(106,320)	$	374,098

Amortization expense was $10,473 and $6,816 during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, estimated future amortization expense was $23,998, $26,786, $22,198, $18,897, and $26,132 for the three months ended March 31, 2023 (remaining nine months), 2024, 2025, 2026 and 2027, respectively. The estimated future amortization expense after December 31, 2027 was $87,773.

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NOTES PAYABLE

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTES PAYABLE

Asset Based Credit Facility

The Company is party to a credit agreement (as amended, the “Credit Agreement”) governing its asset based credit facility with Wells Fargo Bank, National Association (“Wells Fargo Bank”) with a maximum borrowing limit of $200,000 and a maturity date of April 20, 2027. Cash advances and the issuance of letters of credit under the credit facility are made at the lender’s discretion. The letters of credit issued under this facility are furnished by the lender to third parties for the principal purpose of securing minimum guarantees under liquidation services contracts. All outstanding loans, letters of credit, and interest are due on the expiration date which is generally within 180 days of funding. The credit facility is secured by the proceeds received for services rendered in connection with liquidation service contracts pursuant to which any outstanding loan or letters of credit are issued and the assets that are sold at liquidation related to such contract. The interest rate for each revolving credit advance under the Credit Agreement is subject to certain terms and conditions, equal to the Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.25% to 3.25% depending on the type of advance and the percentage such advance represents of the related transaction for which such advance is provided. The credit facility provides for success fees in the amount of 1.0% to 10.0% of the net profits, if any, earned on the liquidation engagements funded under the Credit Agreement as set forth therein. The credit facility also provides for funding fees in the amount of 0.05% to 0.20% of the aggregate principal amount of all credit advances and letters of credit issued in connection with a liquidation sale. Interest expense totaled $18 and $108 during the three months ended March 31, 2023 and 2022, respectively. There was no outstanding balance on this credit facility as of March 31, 2023 and December 31, 2022. As of March 31, 2023, there were no open letters of credit outstanding.

The Company is in compliance with all financial covenants in the asset based credit facility as of March 31, 2023.

Other Notes Payable

As of March 31, 2023 and December 31, 2022, the outstanding balance for the other notes payable was $19,882 and $25,263, respectively. Interest expense was $174 and $232 during the three months ended March 31, 2023 and 2022, respectively. Notes payable primarily consisted of additional deferred cash consideration owed to the sellers of FocalPoint and a promissory note related to the Lingo minority interest purchase as of March 31, 2023. Notes payable to a clearing organization for one of the Company’s broker dealers, which accrued interest at the prime rate plus 2.0%, matured on January 31, 2022 and was repaid during December 31, 2022.

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TERM LOANS AND REVOLVING CREDIT FACILITY

3 Months Ended

Mar. 31, 2023

Term Loans And Revolving Credit Facility [Abstract]

TERM LOANS AND REVOLVING CREDIT FACILITY

TERM LOANS AND REVOLVING CREDIT FACILITY

Targus Credit Agreement

On October 18, 2022, the Company's subsidiary, Tiger US Holdings, Inc. (the “Borrower”), a Delaware corporation, among others, entered into a credit agreement (“Targus Credit Agreement”) with PNC Bank, National Association (“PNC”), as agent and security trustee for a five-year $28,000 term loan and a five-year $85,000 revolver loan, which was used to finance part of the acquisition of Targus.

The Targus Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. The Targus Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts outstanding under the Targus Credit Agreement. The Company is in compliance with all financial covenants in the Targus Credit Agreement as of March 31, 2023.

The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus an applicable margin of 3.75%. The revolver loan consists of base rate loans that bear interest on the outstanding principal amount equal to the base rate plus an applicable margin of 1.00% to 1.75% and term rate loans that bear interest on the outstanding principal amount equal to the revolver SOFR rate plus an applicable margin of 2.00% to 2.75%.

Principal outstanding is due in quarterly installments starting on December 31, 2022. Quarterly installments from June 30, 2023 to September 30, 2027 are in the amount of $1,400 per quarter and the remaining principal balance is due at final maturity on October 18, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $24,678 (net of unamortized debt issuance costs of $522) and $26,021 (net of unamortized debt issuance costs of $580), respectively, and the outstanding balance on the revolver loan was $62,463 and $52,978, respectively. Interest expense on these loans during the three months ended March 31, 2023 was $1,689 (including amortization of deferred debt issuance costs and unused commitment fees of $173). The interest rate on the term loan was 8.66% and 8.43% and the interest rate on the revolver loan ranged between 6.66% and 9.75% and between 6.03% to 9.25% as of March 31, 2023 and December 31, 2022, respectively.

Pathlight Credit Agreement

On September 23, 2022, the Company's subsidiary, B. Riley Receivables II, LLC, a Delaware limited liability company (the “Borrower”), entered into a credit agreement (the “Pathlight Credit Agreement”) by and among PLC Agent, LLC in the capacity as administrative agent and Pathlight Capital Fund I LP, Pathlight Capital Fund II LP, and Pathlight Capital Fund III LP as the lenders (collectively, “Pathlight”) for a five-year $148,200 term loan. On January 12, 2023, Amendment No. 2 to the Pathlight Credit Agreement increased the term loan by an additional $78,296. On March 31, 2023, Amendment No. 3 to the Pathlight Credit Agreement increased the term loan by an additional $49,890. The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus an applicable margin of 6.50%. As of March 31, 2023 and December 31, 2022, the interest rate on the Pathlight Credit Agreement was 11.40% and 11.01%, respectively.

The Pathlight Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. The Pathlight Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults, and cross defaults. If an event of default occurs, the agent would be

entitled to take various actions, including the acceleration of amounts due under the outstanding Pathlight Credit Agreement. The Company is in compliance with all financial covenants in the Pathlight Credit Agreement as of March 31, 2023.

Principal outstanding under the Pathlight Credit Agreement is repaid based on collections of the 2022 Badcock Receivable less other application of payments as defined in the Pathlight Credit Agreement and the remaining principal balance is due at final maturity on September 23, 2027. As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $184,358 (net of unamortized debt issuance costs of $3,837) and $118,437 (net of unamortized debt issuance costs of $2,377), respectively. Interest expense on the term loan during the three months ended March 31, 2023 was $6,430 (including amortization of deferred debt issuance costs of $1,744).

Lingo Credit Agreement

On August 16, 2022, the Company's subsidiary, Lingo (the “Borrower”), entered into a credit agreement (the “Lingo Credit Agreement”) by and among the Borrower, the Company as the secured guarantor, and Banc of California, N.A. in its capacity as administrative agent and lender, for a five-year $45,000 term loan. This loan was used to finance part of the purchase of Bullseye by Lingo. On September 9, 2022, Lingo entered into the First Amendment to the Lingo Credit Agreement with Grasshopper Bank (the “New Lender”) for an incremental term loan of $7,500, increasing the principal balance of the term loan to $52,500. On November 10, 2022, Lingo entered into the Second Amendment to the Lingo Credit Agreement with KeyBank National Association for an incremental term loan of $20,500, increasing the principal balance of the term loan to $73,000.

The term loan bears interest on the outstanding principal amount equal to the term SOFR rate plus a margin of 3.00% to 3.75% per annum, depending on the consolidated total funded debt ratio as defined in the Lingo Credit Agreement, plus applicable spread adjustment. As of March 31, 2023 and December 31, 2022, the interest rate on the Lingo Credit Agreement was 8.48% and 7.89%, respectively.

The Lingo Credit Agreement contains certain covenants, including those limiting the Borrower’s ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of its businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Lingo Credit Agreement requires the Borrower to maintain certain financial ratios. The Lingo Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts due under the Lingo Credit Agreement. The Company is in compliance with all financial covenants in the Lingo Credit Agreement as of March 31, 2023.

Principal outstanding is due in quarterly installments. Quarterly installments from June 30, 2023 to December 31, 2023 are in the amount of $2,281 per quarter, from March 31, 2024 to December 31, 2024 are in the amount of $2,738 per quarter, from March 31, 2025 to June 30, 2027 are in the amount of $3,650, and the remaining principal balance is due at final maturity on August 16, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $69,778 (net of unamortized debt issuance costs of $940) and $71,985 (net of unamortized debt issuance costs of $1,016), respectively. Interest expense on the term loan during the three months ended March 31, 2023 was $1,561 (including amortization of deferred debt issuance costs of $75).

Nomura Credit Agreement

On June 23, 2021, the Company, and its wholly owned subsidiaries, BR Financial Holdings, LLC (the “Primary Guarantor”), and BR Advisory & Investments, LLC (the “Borrower”) entered into a credit agreement (as amended, the “Credit Agreement”) with Nomura Corporate Funding Americas, LLC, as administrative agent (the “Administrative Agent”), and Wells Fargo Bank, N.A., as collateral agent (the “Collateral Agent”), for a four-year $200,000 secured term loan credit facility (the “Term Loan Facility”) and a four-year $80,000 secured revolving loan credit facility (the “Revolving Credit Facility”).

On December 17, 2021 (the “Amendment Date”), the Company, the Primary Guarantor, and the Borrower entered into a Second Incremental Amendment to Credit Agreement, pursuant to which the Borrower established an incremental facility in an aggregate principal amount of $100,000 (the “Incremental Facility” and the incremental term loans made thereunder,

the “Incremental Term Loans”) of secured term loans under the Credit Agreement on terms identical to those applicable to the Term Loan Facility. The Borrower borrowed the full amount of the Incremental Term Loans on the Amendment Date. The Term Loan Facility, Revolving Credit Facility, and Incremental Facility (together, the “Credit Facilities”), mature on June 23, 2025, subject to acceleration or prepayment.

SOFR rate loans under the Credit Facilities accrue interest at the term SOFR rate plus a term SOFR adjustment determined by the selected interest period and an applicable margin of 4.50%. Base rate loans accrue interest at the Base Rate plus an applicable margin of 3.50%. In addition to paying interest on outstanding borrowings under the Revolving Credit Facility, the Company is required to pay a quarterly commitment fee based on the unused portion of the Revolving Credit Facility, which is determined by the average utilization of the facility for the immediately preceding fiscal quarter.

Subject to certain eligibility requirements, the assets of certain subsidiaries of the Company that hold credit assets, private equity assets, and public equity assets are placed into a borrowing base, which serves to limit the borrowings under the Credit Facilities. If borrowings under the facilities exceed the borrowing base, the Company is obligated to prepay the loans in an aggregate amount equal to such excess. The Credit Agreement contains certain representations and warranties (subject to certain agreed qualifications) that are customary for financings of this kind.

The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit the Company’s, the Primary Guarantor’s, the Borrower’s, and the Borrower’s subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to enter into restrictive agreements, to make certain investments, loans, advances, guarantees and acquisitions, to prepay certain indebtedness and to pay dividends or to make other distributions or redemptions/repurchases in respect of their respective equity interests. In addition, the Credit Agreement contains a financial covenant that requires the Company to maintain operating earnings before interest, taxes, depreciation, and amortization (EBITDA) of at least $135,000 and the Primary Guarantor to maintain net asset value of at least $1,100,000. The Credit Agreement contains customary events of default, including with respect to a failure to make payments under the credit facilities, cross-default, certain bankruptcy and insolvency events and customary change of control events. The Company is in compliance with all financial covenants in the Credit Agreement as of March 31, 2023.

Commencing on September 30, 2022, the Term Loan Facility and Incremental Facility began to amortize in equal quarterly installments of 1.25% of the aggregate principal amount of the term loan as of the closing date with the remaining balance due at final maturity on June 23, 2025. Quarterly installments from June 30, 2023 to March 31, 2025 are in the amount of $3,750 per quarter.

As of March 31, 2023 and December 31, 2022, the outstanding balances on the Term Loan Facility and Incremental Facility were $283,739 (net of unamortized debt issuance costs of $5,011) and $286,962 (net of unamortized debt issuance costs of $5,538), respectively. Interest on the term loan during the three months ended March 31, 2023 and 2022 was $7,300 (including amortization of deferred debt issuance costs of $527) and $4,102 (including amortization of deferred debt issuance costs of $509, respectively. The interest rate on the term loan as of March 31, 2023 and December 31, 2022 was 9.59% and 9.23%, respectively.

The Company had an outstanding balance of $77,000 and $74,700 under the Revolving Credit Facility as of March 31, 2023 and December 31, 2022, respectively. Interest on the revolving facility during the three months ended March 31, 2023 and 2022 was $1,956 (including amortization of deferred financing costs of $150) and $1,100 (including amortization of deferred financing costs of $143). The interest rate on the revolving facility as of March 31, 2023 and December 31, 2022 was 9.69% and 9.23%, respectively.

BRPAC Credit Agreement

On December 19, 2018, BRPI Acquisition Co LLC (“BRPAC”), a Delaware limited liability company, UOL, and YMAX Corporation, Delaware corporations (collectively, the “Borrowers”), indirect wholly owned subsidiaries of the Company, in the capacity as borrowers, entered into a credit agreement (the “BRPAC Credit Agreement”) with the Banc of California, N.A. in the capacity as agent (the “Agent”) and lender and with the other lenders party thereto (the “Closing Date Lenders”). Certain of the Borrowers’ U.S. subsidiaries are guarantors of all obligations under the BRPAC Credit Agreement and are parties to the BRPAC Credit Agreement in such capacity (collectively, the “Secured Guarantors”; and together with the Borrowers, the “Credit Parties”). In addition, the Company and B. Riley Principal Investments, LLC, the parent corporation of BRPAC and a subsidiary of the Company, are guarantors of the obligations under the BRPAC Credit

Agreement pursuant to standalone guaranty agreements pursuant to which the shares outstanding membership interests of BRPAC are pledged as collateral.

The obligations under the BRPAC Credit Agreement are secured by first-priority liens on, and first priority security interest in, substantially all of the assets of the Credit Parties, including a pledge of (a) 100% of the equity interests of the Credit Parties; (b) 65% of the equity interests in United Online Software Development (India) Private Limited, a private limited company organized under the laws of India; and (c) 65% of the equity interests in magicJack VocalTec LTD., a limited company organized under the laws of Israel. Such security interests are evidenced by pledge, security, and other related agreements.

The BRPAC Credit Agreement contains certain covenants, including those limiting the Credit Parties’, and their subsidiaries’, ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the BRPAC Credit Agreement requires the Credit Parties to maintain certain financial ratios. The BRPAC Credit Agreement also contains customary representations and warranties, affirmative covenants, and events of default, including payment defaults, breach of representations and warranties, covenant defaults and cross defaults. If an event of default occurs, the agent would be entitled to take various actions, including the acceleration of amounts due under the BRPAC Credit Agreement. The Company is in compliance with all financial covenants in the BRPAC Credit Agreement as of March 31, 2023.

Through a series of amendments, including the most recent Fourth Amendment to the BRPAC Credit Agreement (the “Fourth Amendment”) on June 21, 2022, the Borrowers, the Secured Guarantors, the Agent and the Closing Date Lenders agreed to the following, among other things: (i) the Lenders agreed to make a new $75,000 term loan to the Borrowers, the proceeds of which the Borrowers’ used to repay the outstanding principal amount of the existing terms loans and optional loans and will use for other general corporate purposes, (ii) a new applicable margin level of 3.50% was established as set forth from the date of the Fourth Amendment, (iii) Marconi Wireless Holdings, LLC (“Marconi Wireless”) was added to the Borrowers, (iv) the maturity date of the term loan was set to June 30, 2027, and (v) the Borrowers were permitted to make certain distributions to the parent company of the Borrowers.

The borrowings under the amended BRPAC Credit Agreement bear interest equal to the term SOFR rate plus a margin of 2.75% to 3.50% per annum, depending on the Borrowers’ consolidated total funded debt ratio as defined in the BRPAC Credit Agreement. As of March 31, 2023 and December 31, 2022, the interest rate on the BRPAC Credit Agreement was 8.23% and 7.65%, respectively.

Principal outstanding under the Amended BRPAC Credit Agreement is due in quarterly installments. Quarterly installments from June 30, 2023 to December 31, 2023 are in the amount of $4,688 per quarter, from March 31, 2024 to December 31, 2026 are in the amount of $3,750 per quarter, on March 31, 2027 is in the amount of $2,813, and the remaining principal balance is due at final maturity on June 30, 2027.

As of March 31, 2023 and December 31, 2022, the outstanding balance on the term loan was $64,061 (net of unamortized debt issuance costs of $627) and $68,674 (net of unamortized debt issuance costs of $701), respectively. Interest expense on the term loan during the three months ended March 31, 2023 and 2022 was $1,443 (including amortization of deferred debt issuance costs of $74) and $502 (including amortization of deferred debt issuance costs of $72), respectively.

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SENIOR NOTES PAYABLE

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

SENIOR NOTES PAYABLE

SENIOR NOTES PAYABLE

Senior notes payable, net, are comprised of the following:

	March 31, 2023		December 31, 2022
6.750% Senior notes due May 31, 2024	$	199,232	$	199,232
6.500% Senior notes due September 30, 2026	180,532		180,532
6.375% Senior notes due February 28, 2025	146,432		146,432
6.000% Senior notes due January 31, 2028	266,058		266,058
5.500% Senior notes due March 31, 2026	217,440		217,440
5.250% Senior notes due August 31, 2028	405,483		405,483
5.000% Senior notes due December 31, 2026	324,714		324,714
	1,739,891		1,739,891
Less: Unamortized debt issuance costs	(16,914)		(18,140)
	$	1,722,977	$	1,721,751

During the three months ended March 31, 2023 and 2022, the Company issued zero and $20,073, respectively, of senior notes with maturity dates ranging from May 2024 to August 2028 pursuant to At the Market Issuance Sales Agreements with B. Riley Securities, Inc. which governs the program of at-the-market sales of the Company’s senior notes. A series of prospectus supplements were filed by the Company with the SEC in respect of the Company’s offerings of these senior notes.

As of March 31, 2023 and December 31, 2022, the total senior notes outstanding was $1,722,977 (net of unamortized debt issue costs of $16,914) and $1,721,751 (net of unamortized debt issue costs of $18,140) with a weighted average interest rate of 5.75% and 5.75%, respectively. Interest on senior notes is payable on a quarterly basis. Interest expense on senior notes totaled $26,227 and $24,409 during the three months ended March 31, 2023 and 2022, respectively.

Sales Agreement Prospectus to Issue Up to $250,000 of Senior Notes

The most recent sales agreement prospectus was filed by the Company with the SEC on January 5, 2022 (the “Sales Agreement Prospectus”). This program provides for the sale by the Company of up to $250,000 of certain of the Company’s senior notes. As of March 31, 2023 and December 31, 2022, the Company had $70 remaining availability under the Sales Agreement Prospectus.

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ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER LIABILITIES

ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following:

	March 31, 2023		December 31, 2022
Accrued payroll and related expenses	$	60,141	$	86,798
Dividends payable	18,360		33,923
Income taxes payable	12,100		14,760
Other tax liabilities	19,617		23,426
Contingent consideration	28,884		31,046
Accrued expenses	79,520		68,180
Other liabilities	44,713		64,841
Accrued expenses and other liabilities	$	263,335	$	322,974

Other tax liabilities primarily consist of uncertain tax positions, sales and VAT taxes payable, and other non-income tax liabilities. Accrued expenses primarily consist of accrued trade payables, investment banking payables and legal settlements. Other liabilities primarily consist of interest payables, customer deposits, and accrued legal fees.

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REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue from contracts with customers by the Company's six reportable operating segments and the All Other category during the three months ended March 31, 2023 and 2022 was as follows:

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Revenues for the three months ended March 31, 2023
Corporate finance, consulting and investment banking fees	$	39,149	$	—	$	—	$	14,515	$	—	$	—	$	—	$	53,664
Wealth and asset management fees	664		43,310		—		—		—		—		—		43,974
Commissions, fees and reimbursed expenses	9,218		3,928		5,444		10,495		—		—		—		29,085
Subscription services	—		—		—		—		83,008		—		—		83,008
Sale of goods	—		—		216		—		1,867		65,694		—		67,777
Advertising, licensing and other	—		—		—		—		2,044		4,309		9,273		15,626
Total revenues from contracts with customers	49,031		47,238		5,660		25,010		86,919		70,003		9,273		293,134
Interest income - Loans and securities lending	77,186		—		—		—		—		—		—		77,186
Trading (loss) gain on investments	7,020		1,272		—		—		—		—		—		8,292
Fair value adjustment on loans	43,276		—		—		—		—		—		—		43,276
Other	8,898		1,304		—		—		—		—		—		10,202
Total revenues	$	185,411	$	49,814	$	5,660	$	25,010	$	86,919	$	70,003	$	9,273	$	432,090

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Revenues for the three months ended March 31, 2022
Corporate finance, consulting and investment banking fees	$	41,673	$	—	$	—	$	16,970	$	—	$	—	$	—	$	58,643
Wealth and asset management fees	2,400		64,222		—		—		—		—		—		66,622
Commissions, fees and reimbursed expenses	12,045		12,849		3,355		8,966		—		—		—		37,215
Subscription services	—		—		—		—		27,813		—		—		27,813
Sale of goods	—		—		—		—		1,878		—		—		1,878
Advertising, licensing and other	—		—		—		—		2,274		4,557		699		7,530
Total revenues from contracts with customers	56,118		77,071		3,355		25,936		31,965		4,557		699		199,701
Interest income - Loans and securities lending	61,426		—		—		—		—		—		—		61,426
Trading (loss) gain on investments	(30,738)		522		—		—		—		—		—		(30,216)
Fair value adjustment on loans	10,938		—		—		—		—		—		—		10,938
Other	5,105		(114)		—				—		—		—		4,991
Total revenues	$	102,849	$	77,479	$	3,355	$	25,936	$	31,965	$	4,557	$	699	$	246,840

Contract Balances

The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligation(s) are satisfied. Receivables related to revenues from contracts with customers totaled $120,853 and $149,110 as of March 31, 2023 and December 31, 2022, respectively. The Company had no significant impairments related to these receivables during the three months ended March 31, 2023 and 2022. The Company also has $14,857 and $14,144 of unbilled receivables included in prepaid expenses and other assets as of March 31, 2023 and December 31, 2022, respectively. The Company’s deferred revenue primarily relates to retainer and milestone fees received from corporate finance and investment banking advisory engagements, asset management agreements, financial consulting engagements, subscription services where the performance obligation has not yet been satisfied and license agreements with guaranteed minimum royalty payments and advertising/marketing fees with

additional royalty revenue based on a percentage of defined sales. Deferred revenue as of March 31, 2023 and December 31, 2022 was $84,019 and $85,441, respectively. The Company expects to recognize the deferred revenue of $84,019 as of March 31, 2023 as service and fee revenues when the performance obligation is met during the years ended December 31, 2023 (remaining nine months), 2024, 2025, 2026 and 2027 in the amount of $54,839, $13,350, $7,449, $3,552, and $1,780, respectively. The Company expects to recognize the deferred revenue of $3,049 after December 31, 2027.

During the three months ended March 31, 2023 and 2022, the Company recognized revenue of $22,502 and $14,939 that was recorded as deferred revenue at the beginning of the respective year.

Contract Costs

Contract costs include: (1) costs to fulfill contracts associated with corporate finance and investment banking engagements are capitalized where the revenue is recognized at a point in time and the costs are determined to be recoverable; (2) costs to fulfill Auction and Liquidation services contracts where the Company guarantees a minimum recovery value for goods being sold at auction or liquidation where the revenue is recognized over time when the performance obligation is satisfied; and (3) commissions paid to obtain magicJack contracts which are recognized ratably over the contract term and third party support costs for magicJack and related equipment purchased by customers which are recognized ratably over the service period.

The capitalized costs to fulfill a contract were $7,190 and $5,990 as of March 31, 2023 and December 31, 2022, respectively, and are recorded in prepaid expenses and other assets in the condensed consolidated balance sheets. For the three months ended March 31, 2023 and 2022, the Company recognized expenses of $1,015 and $915 related to capitalized costs to fulfill a contract, respectively. There were no significant impairment charges recognized in relation to these capitalized costs during the three months ended March 31, 2023 and 2022.

Remaining Performance Obligations and Revenue Recognized from Past Performance

The Company does not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material as of March 31, 2023. Corporate finance and investment banking fees and retail liquidation engagement fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price as of March 31, 2023.

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INCOME TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company’s effective income tax rate was a provision of 32.4% during the three months ended March 31, 2023 and a benefit of 28.7% during the three months ended March 31, 2022.

As of March 31, 2023, the Company had federal net operating loss carryforwards of $55,349 and state net operating loss carryforwards of $46,981, respectively. The Company’s federal net operating loss carryforwards will expire in the tax years commencing in December 31, 2033 through December 31, 2038. The state net operating loss carryforwards will expire in the tax years commencing in December 31, 2030.

The Company establishes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits of operating loss, capital loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. The Company’s net operating losses are subject to annual limitations in accordance with Internal Revenue Code Section 382. Accordingly, the Company is limited to the amount of net operating loss that may be utilized in future taxable years depending on the Company’s actual taxable income. As of March 31, 2023, the Company believes that the existing net operating loss carryforwards will be utilized in future tax periods before the loss carryforwards expire and it is more-likely-than-not that future taxable earnings will be sufficient to realize its deferred tax assets and has not provided a valuation allowance. The Company does not believe that it is more likely than not that the Company will be able to utilize the benefits related to capital loss carryforwards and has provided a valuation allowance in the amount of $66,308 against these deferred tax assets.

The Company files income tax returns in the U.S., various state and local jurisdictions, and certain other foreign jurisdictions. The Company is currently under audit by certain federal, state and local, and foreign tax authorities. The audits are in varying stages of completion. The Company evaluates its tax positions and establishes liabilities for uncertain tax positions that may be challenged by tax authorities. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, case law developments and closing of statutes of limitations. Such adjustments are reflected in the provision for income taxes, as appropriate. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the calendar years ended December 31, 2019 to 2022.

Inflation Reduction Act of 2022

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into law. The IR Act provides for, among other things, a new U.S. federal excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of public traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of Treasury has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. The Company does not expect the IR Act to have a material impact on its financial position and result of operations.

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

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 3(l)). 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 1,999,273 and 1,350,062 for the three months ended March 31, 2023 and 2022, respectively, because to do so would have been anti-dilutive.

Basic and diluted earnings per share were calculated as follows:

	Three Months Ended March 31,
	2023		2022
Net income (loss) attributable to B. Riley Financial, Inc.	$	17,155	$	(10,062)
Preferred stock dividends	(2,012)		(2,002)
Net income (loss) applicable to common shareholders	$	15,143	$	(12,064)
Weighted average common shares outstanding:
Basic	28,585,337		27,855,033
Effect of dilutive potential common shares:
Restricted stock units and warrants	928,098		—
Diluted	29,513,435		27,855,033
Basic income (loss) per common share	$	0.53	$	(0.43)
Diluted income (loss) per common share	$	0.51	$	(0.43)

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

(a) Legal Matters

The Company is subject to certain legal and other claims that arise in the ordinary course of its business. In particular, the Company and its subsidiaries are named in and subject to various proceedings and claims arising primarily from the Company’s securities business activities, including lawsuits, arbitration claims, class actions, and regulatory matters. Some of these claims seek substantial compensatory, punitive, or indeterminate damages. The Company and its subsidiaries are also involved in other reviews, investigations, and proceedings by governmental and self-regulatory organizations regarding the Company’s business, which may result in adverse judgments, settlements, fines, penalties, injunctions, and other relief. In view of the number and diversity of claims against the Company, the number of jurisdictions in which litigation is pending, and the inherent difficulty of predicting the outcome of litigation and other claims, the Company cannot state with certainty what the eventual outcome of pending litigation or other claims will be. Notwithstanding this uncertainty, the Company does not believe that the results of these claims are likely to have a material effect on its financial position or results of operations.

(b) Babcock & Wilcox Commitments and Guarantees

On June 30, 2021, the Company agreed to guaranty (the “B. Riley Guaranty”) up to $110,000 of obligations that B&W may owe to providers of cash collateral pledged in connection with B&W’s debt financing. The B. Riley Guaranty is enforceable in certain circumstances, including, among others, certain events of default and the acceleration of B&W’s obligations under a reimbursement agreement with respect to such cash collateral. B&W will pay the Company $935 per annum in connection with the B. Riley Guaranty. B&W has agreed to reimburse the Company to the extent the B. Riley Guaranty is called upon. The B. Riley Guaranty was in respect of up to $100,000 of B&W obligations after B&W made paydowns of $10,000 during the year ended December 31, 2022.

On August 10, 2020, the Company entered into a project specific indemnity rider to a general agreement of indemnity made by B&W in favor of one of its sureties. Pursuant to the indemnity rider, the Company agreed to indemnify the surety in connection with a default by B&W under the underlying indemnity agreement relating to a $29,970 payment and performance bond issued by the surety in connection with a construction project undertaken by B&W. In consideration for providing the indemnity rider, B&W paid the Company fees in the amount of $600 on August 26, 2020.

On December 22, 2021, the Company entered into a general agreement of indemnity in favor of one of B&W’s sureties. Pursuant to this indemnity agreement, the Company agreed to indemnify the surety in connection with a default by B&W under a 30,000€ payment and performance bond issued by the surety in connection with a construction project undertaken by B&W. In consideration for providing the indemnity, B&W paid the Company fees in the amount of $1,694 on January 20, 2022.

(c) Other Commitments

In the normal course of business, the Company enters into commitments to its clients in connection with capital raising transactions, such as firm commitment underwritings, equity lines of credit, or other commitments to provide financing on specified terms and conditions. These commitments require the Company to purchase securities at a specified price or otherwise provide debt or equity financing on specified terms. Securities underwriting exposes the Company to market and credit risk, primarily in the event that, for any reason, securities purchased by the Company cannot be distributed at the anticipated price and to balance sheet risk in the event that debt or equity financing commitments cannot be syndicated.

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SHARE-BASED PAYMENTS

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

SHARE-BASED PAYMENTS

SHARE-BASED PAYMENTS

(a) Employee Stock Incentive Plans

Under the 2021 Stock Incentive Plan (the “2021 Plan”), share-based compensation expense for restricted stock units under the Company’s 2021 Plan was $13,312 and $16,860 during the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, in connection with employee stock incentive plans, the Company granted 502,824 restricted stock units with a grant date fair value of $19,338. During the three months ended March 31, 2022, in connection with employee stock incentive plans, the Company granted 161,559 restricted stock units with a grant date fair value of $11,863 and 65,000 performance based restricted stock units with a grant date fair value of $2,329. The restricted stock units generally vest over a period of one to five years based on continued service. Performance

based restricted stock units generally vest based on both the employee’s continued service and the achievement of a set threshold of the Company’s common stock price, as defined in the grant, during the two to three-year period following the grant. In determining the fair value of restricted stock units on the grant date, the fair value is adjusted for (a) estimated forfeitures, (b) expected dividends based on historical patterns and the Company’s anticipated dividend payments over the expected holding period and (c) the risk-free interest rate based on U.S. Treasuries for a maturity matching the expected holding period.

(b) Employee Stock Purchase Plan

In connection with the Company’s Employee Stock Purchase Plan ("Purchase Plan"), share based compensation was $298 and $153 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, there were 362,986 shares reserved for issuance under the Purchase Plan.

(c) Common Stock

Since October 30, 2018, the Company’s Board of Directors has authorized annual share repurchase programs of up to $50,000 of its outstanding common shares. All share repurchases were effected on the open market at prevailing market prices or in privately negotiated transactions. During the three months ended March 31, 2023 and 2022, the Company repurchased 1,452,831 shares of its common stock for $53,688, which represents an average price of $36.95 per common share and zero shares of its common stock, respectively. The shares repurchased under the program are retired. On October 31, 2022, the share repurchase program was reauthorized by the Board of Directors for share repurchases up to $50,000 of the Company's outstanding common shares and the reauthorized program expires in October 2023.

(d) Preferred Stock

During the three months ended March 31, 2023 and 2022, the Company issued zero and 19 depository shares of the Series A Preferred Stock, respectively. There were 2,834 shares issued and outstanding as of March 31, 2023 and December 31, 2022. Total liquidation preference for the Series A Preferred Stock as of March 31, 2023 and December 31, 2022 was $70,854. Dividends on the Series A preferred paid during the three months ended March 31, 2023 and 2022 were $0.4296875 per depository share, respectively.

During the three months ended March 31, 2023 and 2022, the Company issued 18 and 4 depository shares of the Series B Preferred Stock. There were 1,729 and 1,710 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively. Total liquidation preference for the Series B Preferred Stock as of March 31, 2023 and December 31, 2022 was $43,228 and $42,761, respectively. Dividends on the Series B preferred paid during the three months ended March 31, 2023 and 2022 were $0.4609375 per depository share, respectively.

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NET CAPITAL REQUIREMENTS	3 Months Ended
	Mar. 31, 2023
Broker-Dealer [Abstract]
NET CAPITAL REQUIREMENTS	NET CAPITAL REQUIREMENTSB. Riley Securities (“BRS”) and B. Riley Wealth Management (“BRWM”), the Company’s broker-dealer subsidiaries, are registered with the SEC as broker-dealers and members of the Financial Industry Regulatory Authority, Inc. (“FINRA”). The Company’s broker-dealer subsidiaries are subject to SEC Uniform Net Capital Rule (Rule 15c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As such, they are subject to the minimum net capital requirements promulgated by the SEC. As of March 31, 2023, BRS had net capital of $146,827, which was $142,696 in excess of required minimum net capital of $4,131; and BRWM had net capital of $11,105, which was $8,780 in excess of required minimum net capital of $2,325.As of December 31, 2022, BRS had net capital of $175,503, which was $169,458 in excess of its required minimum net capital of $6,045; and BRWM had net capital of $11,144, which was $8,615 in excess of its required minimum net capital of $2,529.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONSThe Company provides asset management and placement agent services to unconsolidated funds affiliated with the Company (the “Funds”). In connection with these services, the Funds may bear certain operating costs and expenses which are initially paid by the Company and subsequently reimbursed by the Funds.

As of March 31, 2023 and December 31, 2022, amounts due from related parties of $372 and $1,081, respectively, were due from the Funds for management fees and other operating expenses.

In June 2020, the Company entered into an investment advisory services agreement with Whitehawk Capital Partners, L.P. (“Whitehawk”), a limited partnership controlled by Mr. J. Ahn, who is the brother of Phil Ahn, the Company’s Chief Financial Officer and Chief Operating Officer. Whitehawk has agreed to provide investment advisory services for two of the funds, GACP I, L.P. and GACP II, L.P. During the three months ended March 31, 2023 and 2022, management fees paid for investment advisory services by Whitehawk was $1,142 and $1,079, respectively.

The Company periodically participates in loans and financing arrangements for which the Company has an equity ownership and representation on the board of directors (or similar governing body). The Company may also provide consulting services or investment banking services to raise capital for these companies. These transactions can be summarized as follows:

Babcock and Wilcox

During the three months ended March 31, 2023 and 2022, the Company earned zero and $53, respectively, of underwriting and financial advisory and other fees from B&W in connection with B&W’s capital raising activities.

One of the Company’s wholly owned subsidiaries entered into a services agreement with B&W that provided for the President of the Company to serve as the Chief Executive Officer of B&W until November 30, 2020 (the “Executive Consulting Agreement”), unless terminated by either party with thirty days written notice. The agreement was extended through December 31, 2023. Under this agreement, fees for services provided are $750 per annum, paid monthly. In addition, subject to the achievement of certain performance objectives as determined by B&W’s compensation committee of the board, a bonus or bonuses may also be earned and payable to the Company. In March 2022, a $1,000 performance fee was approved in accordance with the Executive Consulting Agreement.

The Company is also a party to indemnification agreements for the benefit of B&W, and the B. Riley Guaranty, each as disclosed above in Note 17 – Commitments and Contingencies.

The Arena Group Holdings, Inc. (fka the Maven, Inc.)

The Company has loans receivable due from the Arena Group Holdings, Inc. (fka the Maven, Inc.) ("Arena") included in loans receivable, at fair value of $97,062 and $98,729 as of March 31, 2023 and December 31, 2022, respectively. Interest on these loans is payable at 10% per annum with maturity dates through December 2023. During the three months ended March 31, 2023 and 2022, the Company earned zero and $2,021 underwriting and financial advisory and other fees from Arena in connection with Arena's capital raising activities, respectively.

California Natural Resources Group, LLC

On November 1, 2021, the Company extended a $34,393 bridge promissory note bearing interest at up to 10.0% per annum to California Natural Resources Group, LLC (“CalNRG”). On January 3, 2022, CalNRG repaid the promissory note using proceeds from a new credit facility with a third party bank (the “CalNRG Credit Facility”). The Company has guaranteed CalNRG’s obligations, up to $10,375, under the CalNRG Credit Facility.

Faze Clan

On March 9, 2022, the Company loaned $10,000 to Faze Clan, Inc. (“Faze”) pursuant to a bridge credit agreement (the “Bridge Agreement”). On April 25, 2022, the Company loaned an additional $10,000 pursuant to the Bridge Agreement. All principal and accrued interest pursuant to the Bridge Agreement was repaid upon closing of Faze’s business combination (the “Business Combination”) with BRPM 150, which following the Business Combination changed its name to Faze Holdings. As a result of the Business Combination, BRPM 150 is no longer a VIE of the Company. On July 19, 2022, in connection with the Business Combination, the Company purchased 5,342,500 shares of Faze Holdings Class A common stock for $10.00 per share. During the year ended December 31, 2022, the Company earned $41,885 of incentive fees for the de-consolidation of BRPM 150 and $9,632 of underwriting and financial advisory fees from Faze and BRPM 150 in connection with the Business Combination and capital raising activities.

Lingo

On May 31, 2022, the Company converted $17,500 of a loan receivable with Lingo into equity and the Company's ownership interest in Lingo increased from 40% to 80%. On February 24, 2023, the Company acquired the remaining 20% ownership in Lingo, increasing the Company's ownership interest to 100%.

Targus

On October 18, 2022, the Company acquired all of the issued and outstanding shares of Targus for total purchase consideration of $247,546 as more fully discussed in Note 4. At the time of the acquisition, the chief executive officer of Targus was also a member of the Company’s board of directors. Upon closing the acquisition, the individual resigned from the Company’s board of directors and continues to serve as the chief executive officer of Targus.

Other

During the three months ended March 31, 2023, the Company sold a loan receivable including accrued interest in the amount of $7,600 to two related parties. BRC Partners Opportunity Fund, LP (“BRCPOF”) purchased $3,519 of the loan receivable including accrued interest and 272 Capital L.P. (“272LP”) purchased $4,081 of the loan receivable including accrued interest, both of the partnerships are private equity funds managed by one of the Company’s subsidiaries. Our executive officers and members of our board of directors have 70.4% financial interest, which includes a financial interest of Bryant Riley, our Co-Chief Executive Officer, of 41.0% in the BRCPOF as of March 31, 2023. Our executive officers and members of our board of directors have a 13.6% financial interest in the 272LP as of March 31, 2023.

The Company often provides consulting or investment banking services to raise capital for companies in which the Company has significant influence through equity ownership, representation on the board of directors (or similar governing body), or both. During the three months ended March 31, 2023 and 2022, the Company earned $784 and $1,880 of fees related to these services, respectively.

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BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

The Company’s business is classified into six reportable operating segments: the Capital Markets segment, Wealth Management segment, Auction and Liquidation segment, Financial Consulting segment, Communications segment, and Consumer segment. These reportable segments are all distinct businesses, each with a different marketing strategy and management structure. During the fourth quarter of 2022, the Company realigned its segment reporting structure to reflect organizational changes from recent acquisitions and the manner in which capital is allocated. The Consumer segment includes the previously reported Brands segment and Targus, which the Company acquired in the fourth quarter of 2022. The Company has also re-aligned its previously reported Principal Investments - Communications and Other segment into the Communications segment and the All Other category that is reported with Corporate and Other below.

The following is a summary of certain financial data for each of the Company’s reportable segments:

	Three Months Ended March 31,
	2023		2022
Capital Markets segment:			(As Restated)
Revenues - Services and fees	$	57,929	$	61,223
Trading income (loss) and fair value adjustments on loans	50,296		(19,800)
Interest income - Loans and securities lending	77,186		61,426
Total revenues	185,411		102,849
Selling, general and administrative expenses	(65,711)		(34,117)
Interest expense - Securities lending and loan participations sold	(32,424)		(11,766)
Depreciation and amortization	(1,256)		(1,893)
Segment income	86,020		55,073
Wealth Management segment:
Revenues - Services and fees	48,542		76,957
Trading income and fair value adjustments on loans	1,272		522
Total revenues	49,814		77,479

Selling, general and administrative expenses	(47,322)	(85,742)
Restructuring charge	(33)	—
Depreciation and amortization	(1,086)	(1,833)
Segment income (loss)	1,373	(10,096)
Auction and Liquidation segment:
Revenues - Services and fees	5,444	3,355
Revenues - Sale of goods	216	—
Total revenues	5,660	3,355
Direct cost of services	(3,128)	(2,335)
Cost of goods sold	(52)	—
Selling, general and administrative expenses	(2,280)	(1,820)
Segment income (loss)	200	(800)
Financial Consulting segment:
Revenues - Services and fees	25,010	25,936
Selling, general and administrative expenses	(21,149)	(20,943)
Depreciation and amortization	(78)	(81)
Segment income	3,783	4,912
Communications segment:
Revenues - Services and fees	85,052	30,087
Revenues - Sale of goods	1,867	1,878
Total revenues	86,919	31,965
Direct cost of services	(44,733)	(9,316)
Cost of goods sold	(2,168)	(2,251)
Selling, general and administrative expenses	(22,544)	(8,245)
Restructuring charge	(60)	—
Depreciation and amortization	(6,631)	(3,184)
Segment income	10,783	8,969
Consumer segment:
Revenues - Services and fees	4,309	4,557
Revenues - Sale of goods	65,694	—
Total revenues	70,003	4,557
Cost of goods sold	(45,406)	—
Selling, general and administrative expenses	(20,112)	(756)
Depreciation and amortization	(2,839)	(583)
Segment income	1,646	3,218
Consolidated operating income from reportable segments	103,805	61,276
All Other:
Revenues - Services and fees	9,273	699
Direct cost of services	(6,536)	—
Corporate and other expenses	(21,619)	(16,002)
Interest income	2,574	67
Dividend income	13,204	7,861
Realized and unrealized losses on investments	(28,442)	(49,112)
Change in fair value of financial instruments and other	(209)	5,981
(Loss) income on equity investments	(10)	6,775
Interest expense	(47,561)	(30,436)

Income (loss) before income taxes	24,479		(12,891)
(Provision for) benefit from income taxes	(7,919)		3,695
Net income (loss)	16,560		(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)		866
Net income (loss) attributable to B. Riley Financial, Inc.	17,155		(10,062)
Preferred stock dividends	2,012		2,002
Net income (loss) available to common shareholders	$	15,143	$	(12,064)

The following table presents revenues by geographical area:

	Three Months Ended March 31,
	2023		2022
			(As Restated)
Revenues:
Revenues - Services and fees:
North America	$	234,930	$	200,861
Europe	629		1,953
Total Revenues - Services and fees	235,559		202,814
Trading income (loss) and fair value adjustments on loans
North America	51,568		(19,278)
Revenues - Sale of goods
North America	37,947		1,878
Australia	3,459		—
Europe, Middle East, and Africa	17,428		—
Asia	6,224		—
Latin America	2,719		—
Total Revenues - Sale of goods	67,777		1,878
Revenues - Interest income - Loans and securities lending:
North America	77,186		61,426
Total Revenues:
North America	401,631		244,887
Australia	3,459		—
Europe, Middle East, and Africa	18,057		1,953
Asia	6,224		—
Latin America	2,719		—
Total Revenues	$	432,090	$	246,840

The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:

	March 31, 2023		December 31, 2022
Long-lived Assets - Property and Equipment, net:
North America	$	26,770	$	26,276
Europe	532		577
Asia Pacific	165		162
Australia	110		126
Total	$	27,577	$	27,141

Segment assets are not reported to, or used by, the Company’s Chief Operating Decision Maker to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements include the accounts of B. Riley Financial, Inc. and its wholly owned and majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated upon consolidation.

The Company consolidates all entities that it controls through a majority voting interest. In addition, the Company performs an analysis to determine whether its variable interest or interests give it a controlling financial interest in a variable interest entity (“VIE”) including ongoing reassessments of whether it is the primary beneficiary of a VIE. See Note 3(o) for further discussion.

The condensed consolidated financial statements have been prepared by the Company, without audit, pursuant to interim financial reporting guidelines and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company’s management, all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included. These condensed consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 16, 2023. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods.

Use of Estimates

Use of Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expense during the reporting period. Estimates are used when accounting for certain items such as valuation of securities, allowance for doubtful accounts, the fair value of loans receivables, intangible assets and goodwill, share based arrangements, contingent consideration, and accounting for income tax valuation allowances, recovery of contract assets and sales returns and allowances. Estimates are based on historical experience, where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.

Interest Expense — Securities Lending Activities

Interest Expense — Securities Lending Activities Interest expense from securities lending activities is included in operating expenses related to operations in the Capital Markets segment. Interest expense from securities lending activities is incurred from equity and fixed income securities that are loaned to the Company and totaled $32,424 and $11,766 during the three months ended March 31, 2023 and 2022, respectively.

Concentration of Risk

Concentration of Risk

Revenues in the Capital Markets, Financial Consulting, Wealth Management, and Communications segments are primarily generated in the United States. Revenues in the Auction and Liquidation segment and Consumer segment are primarily generated in the United States, Australia, Canada, and Europe.

The Company maintains cash in various federally insured banking institutions. The account balances at each institution periodically exceed the Federal Deposit Insurance Corporation’s (“FDIC”) insurance coverage, and as a result, there is a concentration of credit risk related to amounts in excess of FDIC insurance coverage. The Company has not experienced any losses in such accounts. The Company also has substantial cash balances from proceeds received from auctions and liquidation engagements that are distributed to parties in accordance with the collaborative arrangements.

The Company’s activities in the Auction and Liquidation segment are executed frequently with, and on behalf of, distressed customers and secured creditors. Concentrations of credit risk can be affected by changes in economic, industry, or geographical factors. The Company seeks to control its credit risk and potential risk concentration through risk management activities that limit the Company’s exposure to losses on any one specific liquidation services contract or concentration within any one specific industry. To mitigate the exposure to losses on any one specific liquidations services contract, the Company sometimes conducts operations with third parties through collaborative arrangements.

Advertising Expenses

Advertising Expenses The Company expenses advertising costs, which consist primarily of costs for printed materials, as incurred. Advertising costs totaled $5,121 and $1,763 during the three months ended March 31, 2023 and 2022, respectively. Advertising expense was included as a component of selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

Cash and Cash Equivalents

Cash and Cash EquivalentsThe Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

Restricted Cash

As of March 31, 2023 and December 31, 2022, restricted cash included $2,351 and $2,308 of cash collateral for leases, respectively.

Cash, cash equivalents and restricted cash consist of the following:

	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	209,971	$	268,618
Restricted cash	2,351		2,308
Total cash, cash equivalents and restricted cash	$	212,322	$	270,926

Loans Receivable

Under ASC 326 - Financial Instruments – Credit Losses, the Company elected the irrevocable fair value option for all outstanding loans receivable that were previously measured at amortized cost. Under the fair value option, loans receivables are measured at each reporting period based upon their exit value in an orderly transaction and unrealized gains or losses from changes in fair value are recorded in the condensed consolidated statements of operations. These loans are no longer subject to evaluation for impairment through an allowance for loan loss as such losses will be captured through fair value changes.

Loans receivable, at fair value totaled $772,085 and $701,652 as of March 31, 2023 and December 31, 2022, respectively. The loans have various maturities through March 2027. As of March 31, 2023 and December 31, 2022, the historical cost of loans receivable accounted for under the fair value option was $795,996 and $769,022, respectively, which included principal balances of $799,616 and $772,873 respectively, and unamortized costs, origination fees, premiums and discounts, totaling $3,620 and $3,851, respectively. During the three months ended March 31, 2023 and 2022, the Company recorded net unrealized gains of $43,459 and $10,937, respectively, on the loans receivable at fair value, which was included in trading income (losses) and fair value adjustments on loans on the condensed consolidated statements of operations. Loans receivable, at fair value on non-accrual was $39,552 and $7,153 as of March 31, 2023 and December 31, 2022, respectively, which represented approximately 5.1% and 1.0% of total loans receivable, at fair value as of March 31, 2023 and December 31, 2022, respectively.

The Company may periodically provide limited guarantees to third parties for loans that are made to investment banking and lending clients. As of March 31, 2023, the Company has outstanding limited guarantee arrangements with respect to Babcock & Wilcox Enterprises, Inc. (“B&W”) as further described in Note 17. In accordance with the new credit loss standard, the Company evaluates the need to record an allowance for credit losses for these loan guarantees since they have off-balance sheet credit exposures. As of March 31, 2023, the Company has not recorded any provision for credit

losses on the B&W guarantees since the Company believes that there is sufficient collateral to protect the Company from any credit loss exposure.

Interest income on loans receivable is recognized based on the stated interest rate of the loan on the unpaid principal balance plus the amortization of any costs, origination fees, premiums and discounts and is included in interest income - loans and securities lending on the condensed consolidated statements of operations. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. Unearned income, discounts and premiums are amortized to interest income using a level yield methodology.

Badcock Loan Receivable

On December 20, 2021, the Company entered into a Master Receivables Purchase Agreement with W.S. Badcock Corporation, a Florida corporation (“WSBC”), an indirect wholly owned subsidiary of Franchise Group, Inc., a Delaware corporation (“FRG”). The Company paid $400,000 in cash to WSBC for the purchase of certain consumer credit receivables of WSBC. On September 23, 2022, the Company's subsidiary, B Riley Receivables II, LLC (“BRRII”), a Delaware limited liability company, entered into a Master Receivables Purchase Agreement (“2022 Badcock Receivable”) with WSBC. This purchase of $168,363 consumer credit receivables of WSBC was partially financed by a $148,200 term loan discussed in Note 11. During the three months ended March 31, 2023, BRRII entered into Amendment No. 2 and No. 3 to the 2022 Badcock Receivable with WSBC for a total of $145,278 in additional consumer credit receivables. The accounting for these transactions resulted in the Company recording a loan receivable from WSBC with the recognition of interest income at an imputed rate based on the cash flows expected to be received from the collection of the consumer receivables that serve as collateral for the loan. The loan receivable was measured at fair value on the condensed consolidated balance sheets.

In connection with these loans, the Company entered into a Servicing Agreement with WSBC pursuant to which WSBC will provide to the Company certain customary servicing and account management services in respect of the receivables purchased by the Company under the Receivables Purchase Agreement. In addition, subject to certain terms and conditions, FRG has agreed to guarantee the performance by WSBC of its obligations under the Master Receivables Purchase Agreements and the Servicing Agreement.

Securities and Other Investments Owned and Securities Sold Not Yet Purchased

Securities and Other Investments Owned and Securities Sold Not Yet PurchasedSecurities and other investments owned consist of marketable securities and investments in partnership interests and other securities recorded at fair value. Securities sold, but not yet purchased represents obligations of the Company to deliver the specified security at the contracted price and thereby create a liability to purchase the security in the market at prevailing prices. Changes in the value of these securities are reflected currently in the results of operations.

As of March 31, 2023 and December 31, 2022, the Company’s securities and other investments owned and securities sold not yet purchased at fair value consisted of the following securities:

	March 31, 2023		December 31, 2022
Securities and other investments owned:
Equity securities	$	929,582	$	1,046,710
Corporate bonds	65,470		8,539
Other fixed income securities	5,248		3,956
Partnership interests and other	48,930		70,063
	$	1,049,230	$	1,129,268
Securities sold not yet purchased:
Equity securities	$	6,122	$	4,466
Corporate bonds	480		1,162
Other fixed income securities	1,204		269
	$	7,806	$	5,897

The Company owns certain equity securities that are accounted for under the fair value option where the Company would otherwise use the equity method of accounting. Investments become subject to the equity method of accounting when the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the Company possesses more than 20% of the voting interests of the investee. However, the Company may have the ability to exercise significant influence over the investee when the Company owns less than 20% of the voting interests of the investee depending on the facts and circumstances that demonstrate that the ability to exercise influence is present, such as when the Company has representation on the board of directors of such investee.

The following tables contain summarized financial information with respect to two of the Company's individually greater than 20% investments, where the Company has a voting interest in each investee of 41% and 43%, respectively, which has been aggregated and included below for purposes of the disclosure a quarter in arrears (for balance sheet information the period ended December 31, 2022 and September 30, 2022 correspond to the period ended March 31, 2023 and December 31, 2022, respectively, of the Company and for income statement information the three months ended December 31, 2022 and 2021 correspond to the three months ended March 31, 2023 and 2022, respectively, of the Company), which is the period in which the most recent financial information is available:

	December 31, 2022		September 30, 2022
Total assets	$	197,101	$	202,520
Total liabilities	$	6,789	$	5,737
Equity attributable to investee	$	190,312	$	196,783

	For the three months ended December 31,
	2022		2021
Revenues	$	27,971	$	27,209
Net income (loss) attributable to investees	$	11,808	$	12,882

The following tables contain summarized financial information with respect to B&W, where the Company owns a 31% voting interest, included below for purposes of the disclosure a quarter in arrears (for balance sheet information the period ended December 31, 2022 and September 30, 2022 correspond to the period ended March 31, 2023 and December 31, 2022, respectively, of the Company and for income statement information the three months ended December 31, 2022 and 2021 correspond to the three months ended March 31, 2023 and 2022, respectively, of the Company), which is the period in which the most recent financial information is available:

	December 31, 2022		September 30, 2022
Total assets	$	942,655	$	881,567
Total liabilities	$	944,744	$	898,695
Equity attributable to investee	$	(2,089)	$	(17,128)

	For the three months ended December 31,
	2022		2021
Revenues	$	249,877	$	192,295
Net income attributable to investees	$	2,021	$	25,874

As of March 31, 2023 and December 31, 2022, the fair value of these equity securities totaled $370,502 and $371,948, respectively, and are included in securities and other investments owned, at fair value in the condensed consolidated balance sheets.

Fair Value Measurements

Fair Value Measurements

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) for identical instruments that are highly liquid, observable, and actively traded in over-the-counter markets. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable and can be corroborated by market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The Company’s securities and other investments owned and securities sold and not yet purchased are comprised of common and preferred stocks and warrants, corporate bonds, and investments in partnerships. Investments in common stocks that are based on quoted prices in active markets are included in Level 1 of the fair value hierarchy. The Company also holds loans receivable valued at fair value, nonpublic common and preferred stocks and warrants for which there is little or no public market and fair value is determined by management on a consistent basis. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks. These investments are included in Level 3 of the fair value hierarchy. Investments in partnership interests include investments in private equity partnerships that primarily invest in equity securities, bonds, and direct lending funds. The Company also invests in priority investment funds and the underlying securities held by these funds are primarily corporate and asset-backed fixed income securities and restrictions exist on the redemption of amounts invested by the Company. The Company’s partnership and investment fund interests are valued based on the Company’s proportionate share of the net assets of the partnerships and funds; the value for these investments is derived from the most recent statements received from the general partner or fund administrator. These partnership and investment fund interests are valued at net asset value (“NAV”) in accordance with ASC 820 - Fair Value Measurements. As of March 31, 2023 and December 31, 2022, partnership and investment fund interests valued at NAV of $48,930 and $70,063, respectively, are included in securities and other investments owned in the accompanying condensed consolidated balance sheets.

Securities and other investments owned also include investments in nonpublic entities that do not have a readily determinable fair value and do not report NAV per share. These investments are accounted for using a measurement alternative under which they are measured at cost and adjusted for observable price changes and impairments. Observable

price changes result from, among other things, equity transactions for the same issuer executed during the reporting period, including subsequent equity offerings or other reported equity transactions related to the same issuer. For these transactions to be considered observable price changes of the same issuer, we evaluate whether these transactions have similar rights and obligations, including voting rights, distribution preferences, conversion rights, and other factors, to the investments we hold. Any investments adjusted to their fair value by applying the measurement alternative are disclosed as nonrecurring fair value measurements, including the level in the fair value hierarchy that was used. As of March 31, 2023 and December 31, 2022, investments in nonpublic entities valued using a measurement alternative of $86,920 and $94,109, respectively, are included in securities and other investments owned in the accompanying condensed consolidated balance sheets.

The Company measures certain assets at fair value on a nonrecurring basis. These assets include equity method investments when they are deemed to be other-than-temporarily impaired, investments adjusted to their fair value by applying the measurement alternative, assets acquired and liabilities assumed in an acquisition or in a nonmonetary exchange, and property, plant and equipment and intangible assets that are written down to fair value when they are held for sale or determined to be impaired. The Company did not have any material assets or liabilities that were measured at fair value on a nonrecurring basis in periods subsequent to initial recognition as of March 31, 2023 and December 31, 2022.

As of March 31, 2023 and December 31, 2022, funds held in trust represents amounts invested in a mutual fund that invests in U.S. Treasury securities that were purchased with funds raised through the initial public offering of B. Riley Principal 250 Merger Corporation (“BRPM 250”), which is a consolidated special purpose acquisition corporation (“SPAC”). As of March 31, 2023 and December 31, 2022, the Company had $176,182 and $174,437, respectively, of funds held in trust related to the SPAC. The funds raised are held in a trust account that is restricted for use and may only be used for purposes of completing an initial business combination or redemption of the class A public common shares of the SPAC as set forth in the trust agreement. The funds held in trust are included within Level 1 of the fair value hierarchy and included in prepaid expenses and other assets in the accompanying condensed consolidated balance sheets.

The Company has warrant liabilities related to warrants of the SPAC that are held by investors in BRPM 250. The warrants are accounted for as liabilities in accordance with ASC 815 - Derivatives and Hedging and are measured at fair value at inception and on a recurring basis using quoted prices in over-the-counter markets. Warrant liabilities are included in Level 1 of the fair value hierarchy and included in accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets in the amount of $381 and $173 for BRPM 250 as of March 31, 2023 and December 31, 2022, respectively. Changes in fair value of warrants are included within change in fair value of financial instruments and other as part of other income (expense) in the consolidated statements of operations. The fair value of mandatorily redeemable noncontrolling interests is determined based on the issuance of similar interests for cash, references to industry comparables, and relied, in part, on information obtained from appraisal reports and internal valuation models.

The following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.

	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2023 Using
	Fair value as of March 31, 2023		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	176,182	$	176,182	$	—	$	—
Securities and other investments owned:
Equity securities	842,662		483,621		—		359,041
Corporate bonds	65,470		53,716		11,754		—
Other fixed income securities	5,248		—		5,248		—
Total securities and other investments owned	913,380		537,337		17,002		359,041
Loans receivable, at fair value	772,085		—		—		772,085
Total assets measured at fair value	$	1,861,647	$	713,519	$	17,002	$	1,131,126
Liabilities:
Securities sold not yet purchased:
Equity securities	$	6,122	$	6,122	$	—	$	—
Corporate bonds	480		—		480		—
Other fixed income securities	1,204		—		1,204		—
Total securities sold not yet purchased	7,806		6,122		1,684		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654		—		—		4,654
Warrant liabilities	381		381		—		—
Contingent consideration	28,884		—		—		28,884
Total liabilities measured at fair value	$	41,725	$	6,503	$	1,684	$	33,538

	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2022 Using
	Fair value at December 31, 2022		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	174,437	$	174,437	$	—	$	—
Securities and other investments owned:
Equity securities	952,601		584,136		—		368,465
Corporate bonds	8,539		—		8,539		—
Other fixed income securities	3,956		—		3,956		—
Total securities and other investments owned	965,096		584,136		12,495		368,465
Loans receivable, at fair value	701,652		—		—		701,652
Total assets measured at fair value	$	1,841,185	$	758,573	$	12,495	$	1,070,117
Liabilities:
Securities sold not yet purchased:
Equity securities	$	4,466	$	4,466	$	—	$	—
Corporate bonds	1,162		—		1,162		—
Other fixed income securities	269		—		269		—
Total securities sold not yet purchased	5,897		4,466		1,431		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		—		4,648
Warrant liabilities	173		173		—		—
Contingent consideration	31,046		—		—		31,046
Total liabilities measured at fair value	$	41,764	$	4,639	$	1,431	$	35,694

As of March 31, 2023 and December 31, 2022, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $1,131,126 and $1,070,117, respectively, or 17.1% and 17.5%, respectively, of the Company’s total assets. In determining the fair value for these Level 3 financial assets, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity.

The following table summarizes the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of March 31, 2023 and December 31, 2022:

	Fair value at March 31, 2023		Valuation Technique	Unobservable Input	Range	Weighted Average
Assets:
Equity securities	$	297,136	Market approach	Multiple of EBITDA	1.5x - 16.0x	6.3x
				Multiple of Sales	3.8x	3.8x
				Market price of related security	$0.01 - $14.05	$7.33
	57,974		Discounted cash flow	Market interest rate	23.8%	23.8%
	3,931		Option pricing model	Annualized volatility	30.0% - 510.0%	80.0%
Loans receivable at fair value	744,018		Discounted cash flow	Market interest rate	9.7% - 35.6%	18.1%
	28,067		Market approach	Market price of related security	$13.25	$13.25
Total level 3 assets measured at fair value	$	1,131,126
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,654	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	28,884		Discounted cash flow	EBITDA volatility	75%	75%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
				Revenue volatility	5.1%	5.1%
Total level 3 liabilities measured at fair value	$	33,538

	Fair value at December 31, 2022		Valuation Technique	Unobservable Input	Range	Weighted  Average
Assets:
Equity securities	$	304,172	Market approach	Multiple of EBITDA	1.5x - 10.5x	6.0x
				Multiple of Sales	3.0x	3.0x
				Market price of related security	$10.01 - $18.88	$16.91
	57,267		Discounted cash flow	Market interest rate	23.8%	23.8%
	7,026		Option pricing model	Annualized volatility	0.3% - 26.1%	70.0%
Loans receivable at fair value	694,499		Discounted cash flow	Market interest rate	6.0% - 83.5%	23.9%
	7,153		Market approach	Multiple of EBITDA	4.5x	4.5x
Total level 3 assets measured at fair value	$	1,070,117
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,648	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	31,046		Discounted cash flow	EBITDA volatility	80.0%	80.0%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
Total level 3 liabilities measured at fair value	$	35,694

The changes in Level 3 fair value hierarchy during the three months ended March 31, 2023 and 2022 were as follows:

	Level 3 Balance at Beginning of Year		Level 3 Changes During the Period								Level 3 Balance at End of Period
			Fair Value Adjustments		Relating to Undistributed Earnings		Purchases, Sales and Settlements		Transfer in and/or out of Level 3
Three Months Ended March 31, 2023
Equity securities	$	368,465	$	(9,016)	$	—	$	6,487	$	(6,895)	$	359,041
Loans receivable at fair value	701,652		43,459		231		26,743		—		772,085
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		308		(302)		—		4,654
Contingent consideration	31,046		(3,447)		—		1,285		—		28,884
Three Months Ended March 31, 2022
Equity securities	$	377,549	$	(4,543)	$	—	$	19,912	$	(4,254)	$	388,664
Loans receivable at fair value	873,186		10,937		3,238		(4,970)		—		882,391
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,506		—		247		(251)		—		4,502
Contingent consideration	—		—		—		22,464		—		22,464

The amount reported in the table above as of March 31, 2023 and December 31, 2022 included the amount of undistributed earnings attributable to the noncontrolling interests that is distributed on a quarterly basis. The carrying amounts reported in the condensed consolidated financial statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value based on the short-term maturity of these instruments.

As of March 31, 2023 and December 31, 2022, the senior notes payable had a carrying amount of $1,722,977 and $1,721,751, respectively, and fair value of $1,258,532 and $1,431,787, respectively. The carrying amount of the term loans approximates fair value because the effective yield of such instruments are consistent with current market rates of interest for instruments of comparable credit risk.

The investments in nonpublic entities that do not report NAV are measured at cost, adjusted for observable price changes and impairments, with changes recognized in trading income (losses) and fair value adjustments on loans on the condensed consolidated statements of operations. These investments are evaluated on a nonrecurring basis based on the observable price changes in orderly transactions for the identical or similar investment of the same issuer. Further adjustments are not made until another observable transaction occurs. Therefore, the determination of fair values of these investments in nonpublic entities that do not report NAV does not involve significant estimates and assumptions or subjective and complex judgments. Investments in nonpublic entities that do not report NAV are subject to a qualitative assessment for indicators of impairment. If indicators of impairment are present, the Company is required to estimate the investment’s fair value and immediately recognize an impairment charge in an amount equal to the investment’s carrying value in excess of its estimated fair value.

The following table presents information on the assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2023 and December 31, 2022. These investments were measured due to an observable price change or impairment during the periods below.

	Fair Value Measurement Using
	Total		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
As of March 31, 2023
Investments in nonpublic entities that do not report NAV	$	4,271	$	—	$	—	$	4,271
As of December 31, 2022
Investments in nonpublic entities that do not report NAV	$	20,251	$	—	$	18,659	$	1,592

Derivative and Foreign Currency Translation

Derivative and Foreign Currency Translation

The Company periodically uses derivative instruments, which primarily consist of the purchase of forward exchange contracts, for certain loans receivable and Auction and Liquidation engagements with operations outside the United States. As of March 31, 2023 and December 31, 2022, there were no forward exchange contracts outstanding.

The forward exchange contracts were entered into to improve the predictability of cash flows related to a retail store liquidation engagement and a loan receivable. The net gain from forward exchange contracts was zero and $68 during the three months ended March 31, 2023 and 2022, respectively. This amount was reported as a component of selling, general and administrative expenses in the condensed consolidated statements of operations.

The Company transacts business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country’s currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using period-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets. Transaction losses were $234 and gains were $296 during the three months ended March 31, 2023 and 2022, respectively. These amounts were included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.

As disclosed in Note 3(o) below, the Company has consolidated a VIE, BRPM 250, which has outstanding warrants that were issued in its initial public offerings. The warrants have been recorded as a liability since the warrants contain a provision to be settled in cash in the event of a qualifying cash tender offer for BRPM 250, which is outside the control of the Company. The outstanding warrants are considered derivative instruments with the warrant liability measured at fair value at each reporting date until exercised or upon expiration, with changes in fair value reported in other income in the condensed consolidated statements of operations. As of March 31, 2023 and December 31, 2022, the warrant liability for BRPM 250 totaled $381 and $173, respectively, which was included in accrued expenses and other liabilities in the condensed consolidated balance sheet.

Redeemable Noncontrolling Interests in Equity of Subsidiaries

Redeemable Noncontrolling Interests in Equity of SubsidiariesThe Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the class A ordinary shareholders in the BRPM 250 sponsored SPAC and the 20% noncontrolling interest of Lingo Management, LLC (“Lingo”), which on February 24, 2023, the Company acquired, increasing its ownership interest in Lingo to 100%. These interests are presented as redeemable noncontrolling interests in equity of subsidiaries within the condensed consolidated balance sheet, outside of the permanent equity section. The class A ordinary shareholders of BRPM 250 have redemption rights that are considered to be outside of the Company’s control. Remeasurements to the redemption value of the redeemable noncontrolling interest in equity of subsidiaries are recorded within retained earnings (accumulated deficit). The operating agreement with Lingo has provisions which result in the noncontrolling interest being accounted for as temporary equity. Net income (losses) are reflected in net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in the condensed consolidated statement of operations.

Changes to redeemable noncontrolling interest consist of the following:

	Three Months Ended March 31, 2023
Balance, December 31, 2022	$	178,622
Net loss	(146)
Purchase of Lingo minority interest	(11,190)
Remeasurement adjustments for Lingo and BRPM 250	7,681
Balance, March 31, 2023	$	174,967

Equity Investments

Equity Investment

As of March 31, 2023 and December 31, 2022, equity investments of $41,816 and $41,298, respectively, were included in prepaid expenses and other assets in the accompanying condensed consolidated balance sheets. The Company’s share of earnings or losses from equity method investees was included in income from equity investments in the accompanying condensed consolidated statements of operations.

bebe stores, inc.

As of March 31, 2023 and December 31, 2022, the Company had a 41.3% and 40.1% ownership interest in bebe stores, inc. (“bebe”), respectively. The equity ownership in bebe was accounted for under the equity method of accounting and was included in prepaid expenses and other assets in the condensed consolidated balance sheets. The common stock of bebe is publicly traded. The fair value of bebe as of March 31, 2023 and December 31, 2022 was $22,573 and $25,423, respectively. The carrying value of the investment in bebe as of March 31, 2023 and December 31, 2022 was $40,937 and $40,383, respectively.

As of March 31, 2023, the carrying value of the Company’s equity method investment in bebe exceeded the fair value based on the quoted market prices. In consideration of these facts, the Company evaluated its investment for other than temporary impairment under ASC 323. The Company did not utilize bright-line tests in the evaluation. Based on the available facts and information regarding the operating results of bebe, the Company’s ability and intent to hold the investments until recovery, the relative amount of the declines, and the length of time that the fair values were less than the carrying values, the Company concluded that recognition of impairment losses in earnings was not required. However, the Company will continue to monitor the investment and it is possible that impairment losses will be recorded in earnings in future periods based on changes in facts and circumstances or intentions.

Other Equity Investments

The Company had other equity method investments over which the Company exercises significant influence but that did not meet the requirements for consolidation, the largest ownership interest being a 40% ownership interest in Lingo, which was acquired in November 2020. On May 31, 2022, the Company's ownership increased to 80% and Lingo's operating results were consolidated with the Company. On February 24, 2023, the Company acquired the remaining 20% ownership in Lingo, increasing the Company's ownership interest from 80% to 100%. The equity ownership in these other investments was accounted for at the applicable times under the equity method of accounting and was included in prepaid expenses and other assets in the condensed consolidated balance sheets.

Supplemental Non-cash Disclosures

Supplemental Non-cash DisclosuresDuring the three months ended March 31, 2023, non-cash investing activities included $15,000 of a convertible note receivable which was included in loans receivable, at fair value, that converted into an equity security, $1,190 of loans receivable, at fair value, was credited to the consideration paid for the purchase of the Lingo noncontrolling interest, and $2,111 of common stock issued as part of the purchase price consideration for a business acquisition. During the three months ended March 31, 2023, non-cash financing activities included $7,000 in seller financing related to the purchase of the Lingo noncontrolling interest. During the three months ended March 31, 2022, non-cash investing activities included $20,320 in issuance of the Company's common stock as part of the purchase price consideration from the FocalPoint acquisition and $22,661 in seller financing for deferred cash consideration.

Variable Interest Entities

Variable Interest Entities

The Company holds interests in various entities that meet the characteristics of a VIE but are not consolidated as the Company is not the primary beneficiary. Interests in these entities are generally in the form of equity interests, loans receivable, or fee arrangements.

The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed.

The Company, has entered into agreements to provide investment banking and advisory services to numerous investment funds (the “Funds”) that are considered variable interest entities under the accounting guidance.

The Company earns fees from the Funds in the form of placement agent fees and carried interest. For placement agent fees, the Company receives a cash fee of generally 7% to 10% of the amount of raised capital for the Funds and the fee is recognized at the time the placement services occurred. The Company receives carried interest as a percentage allocation (8% to 15%) of the profits of the Funds as compensation for asset management services provided to the Funds and it is recognized under the ownership model of ASC 323 - Investments – Equity Method and Joint Ventures as an equity method investment with changes in allocation recorded currently in the results of operations. As the fee arrangements under such agreements are arm’s length and contain customary terms and conditions and represent compensation that is considered fair value for the services provided, the fee arrangements are not considered variable interests and accordingly, the Company does not consolidate such VIEs.

Placement agent fees attributable to such arrangements during the three months ended March 31, 2023 and 2022 were zero and $12,051, respectively, and were included in services and fees in the condensed consolidated statements of operations.

The carrying value of the Company’s investments in the VIEs that were not consolidated is shown below.

	March 31, 2023		December 31, 2022
Securities and other investments owned, at fair value	$	35,383	$	33,743
Loans receivable, at fair value	58,611		46,700
Other assets	2,570		3,755
Maximum exposure to loss	$	96,564	$	84,198

B. Riley Principal 150 and 250 Merger Corporations

In 2021, the Company along with BRPM 150 and BRPM 250, both newly formed special purpose acquisition companies incorporated as Delaware corporations, consummated the initial public offerings of 17,250,000 units of BRPM 150 and 17,250,000 units of BRPM 250. Each Unit of BRPM 150 and BRPM 250 consisted of one share of class A common stock and one-third of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one share of BRPM 150 or BRPM 250 class A common stock at an exercise price of $11.50 per share. The BRPM 150 and BRPM 250 Units were each sold at a price of $10.00 per unit, generating gross proceeds to BRPM 150 of $172,500 and BRPM 250 of $172,500. These proceeds which totaled $345,000 were deposited in a trust account established for the benefit of the BRPM 150 and BRPM 250 class A public shareholders and was included in prepaid expenses and other assets in the condensed balance sheet. These proceeds are invested only in U.S. treasury securities in accordance with the governing documents of BRPM 150 and BRPM 250. Under the terms of the BRPM 150 and BRPM 250 initial public offerings, BRPM 150 and BRPM 250 are required to consummate a business combination transaction within 24 months (or 27 months under certain circumstances) of the completion of their respective initial public offerings.

In connection with the completion of the initial public offerings of BRPM 150 and BRPM 250, the Company invested in the private placement units of BRPM 150 and BRPM 250. Both BRPM 150 and BRPM 250 are determined to be VIE’s because each of the entities do not have enough equity at risk to finance their activities without additional subordinated financial support. The Company has determined that the class A shareholders of BRPM 150 and BRPM 250 do not have

substantive rights as shareholders of BRPM 150 and BRPM 250 since these equity interests are determined to be temporary equity. As such, the Company has determined that it is the primary beneficiary of BRPM 150 and BRPM 250 as it has the right to receive benefits or the obligation to absorb losses of each of the entities, as well as the power to direct a majority of the activities that significantly impact BRPM 150 and BRPM 250’s economic performance. Since the Company is determined to be the primary beneficiary, BRPM 150 and BRPM 250 are consolidated into the Company’s financial statements.

Recent Accounting Standards

Recent Accounting Standards

Not yet adopted

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820). This update clarifies that a contractual restriction on the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security’s unit of account. Therefore, a contractual sale restriction should not be considered when measuring an equity security’s fair value. The update also prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. Specific disclosures related to equity securities subject to contractual sale restrictions are required and include the fair value of such equity securities on the balance sheet, the nature and remaining duration of the corresponding restrictions, and any circumstances that could cause a lapse in the restrictions. The amendments in this update are effective for the Company for fiscal periods beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. Investment companies as defined by Topic 946 should apply the amendments in this update to an equity security with a contract containing a sale restriction that was executed or modified on or after the date of adoption. For an equity security with a contract containing a sale restriction that was executed before the date of adoption, investment companies should continue to account for the equity security under their historical accounting policy for measuring such securities until the contractual restrictions expire or are modified. The Company has not yet adopted this update and is currently evaluating the effect, if any, this new standard will have on its financial position and results of operations.

Recently adopted

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations to enhance transparency about an entity’s use of supplier finance programs. Under the ASU, the buyer in a supplier finance program is required to disclose information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. An entity should also consider whether the existence of a supplier finance program changes the appropriate presentation of the payables in the program from trade payables to borrowings. The Company adopted the ASU effective January 1, 2023. The ASU had no impact on the consolidated results of operations, cash flows, and financial position and was immaterial to the financial statement disclosures.

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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of condensed consolidated statement of cash flows

The following tables present the corrections by financial statement line item within the condensed consolidated statement of operations for all periods presented:

	Three Months Ended March 31, 2022
	As Previously Reported		Restatement Adjustments		Restatement Reference	As Restated
Statement of Operations
Revenues:
Services and fees	$	210,675	$	(7,861)	(a)	$	202,814
Trading (loss) income and fair value adjustments on loans	(68,390)		49,112		(b)	(19,278)
Interest income - Loans and securities lending	61,426		—			61,426
Sale of goods	1,878		—			1,878
Total revenues	205,589		41,251			246,840
Operating expenses:
Direct cost of services	11,651		—			11,651
Cost of goods sold	2,251		—			2,251
Selling, general and administrative expenses	175,199		—			175,199
Interest expense - Securities lending and loan participations sold	11,766		—			11,766
Total operating expenses	200,867		—			200,867
Operating income	4,722		41,251			45,973
Other income (expense):
Interest income	67		—			67
Dividend income	—		7,861		(a)	7,861
Realized and unrealized gains (losses) on investments	—		(49,112)		(b)	(49,112)
Change in fair value of financial instruments and other	5,981		—			5,981
Income from equity method investments	6,775		—			6,775
Interest expense	(30,436)		—			(30,436)
Loss before income taxes	(12,891)		—			(12,891)
Provision for income taxes	3,695		—			3,695
Net loss	(9,196)		—			(9,196)
Net income attributable to noncontrolling interests and redeemable noncontrolling interests	866		—			866
Net loss attributable to B. Riley Financial, Inc.	(10,062)		—			(10,062)
Preferred stock dividends	2,002		—			2,002
Net loss available to common shareholders	$	(12,064)	$	—		$	(12,064)
Basic loss per common share	$	(0.43)				$	(0.43)
Diluted loss per common share	$	(0.43)				$	(0.43)
Weighted average basic common shares outstanding	27,855,033					27,855,033
Weighted average diluted common shares outstanding	27,855,033					27,855,033

(a) To reclassify dividends received from investments from Services and fees to Dividend income.

(b) To reclassify realized and unrealized gains (losses) on investments from Trading income (loss) and fair value on loans to Realized and unrealized gains (losses) on investments.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of cash and cash equivalents

Cash, cash equivalents and restricted cash consist of the following:

	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	209,971	$	268,618
Restricted cash	2,351		2,308
Total cash, cash equivalents and restricted cash	$	212,322	$	270,926

Restrictions on cash and cash equivalents

Cash, cash equivalents and restricted cash consist of the following:

	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	209,971	$	268,618
Restricted cash	2,351		2,308
Total cash, cash equivalents and restricted cash	$	212,322	$	270,926

Schedule of securities and other investments owned and securities sold not yet purchased at fair value

As of March 31, 2023 and December 31, 2022, the Company’s securities and other investments owned and securities sold not yet purchased at fair value consisted of the following securities:

	March 31, 2023		December 31, 2022
Securities and other investments owned:
Equity securities	$	929,582	$	1,046,710
Corporate bonds	65,470		8,539
Other fixed income securities	5,248		3,956
Partnership interests and other	48,930		70,063
	$	1,049,230	$	1,129,268
Securities sold not yet purchased:
Equity securities	$	6,122	$	4,466
Corporate bonds	480		1,162
Other fixed income securities	1,204		269
	$	7,806	$	5,897

Equity Method Investments

	December 31, 2022		September 30, 2022
Total assets	$	197,101	$	202,520
Total liabilities	$	6,789	$	5,737
Equity attributable to investee	$	190,312	$	196,783

	For the three months ended December 31,
	2022		2021
Revenues	$	27,971	$	27,209
Net income (loss) attributable to investees	$	11,808	$	12,882

	December 31, 2022		September 30, 2022
Total assets	$	942,655	$	881,567
Total liabilities	$	944,744	$	898,695
Equity attributable to investee	$	(2,089)	$	(17,128)

	For the three months ended December 31,
	2022		2021
Revenues	$	249,877	$	192,295
Net income attributable to investees	$	2,021	$	25,874

Schedule of financial assets and liabilities measured on recurring basis

The following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.

	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2023 Using
	Fair value as of March 31, 2023		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	176,182	$	176,182	$	—	$	—
Securities and other investments owned:
Equity securities	842,662		483,621		—		359,041
Corporate bonds	65,470		53,716		11,754		—
Other fixed income securities	5,248		—		5,248		—
Total securities and other investments owned	913,380		537,337		17,002		359,041
Loans receivable, at fair value	772,085		—		—		772,085
Total assets measured at fair value	$	1,861,647	$	713,519	$	17,002	$	1,131,126
Liabilities:
Securities sold not yet purchased:
Equity securities	$	6,122	$	6,122	$	—	$	—
Corporate bonds	480		—		480		—
Other fixed income securities	1,204		—		1,204		—
Total securities sold not yet purchased	7,806		6,122		1,684		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654		—		—		4,654
Warrant liabilities	381		381		—		—
Contingent consideration	28,884		—		—		28,884
Total liabilities measured at fair value	$	41,725	$	6,503	$	1,684	$	33,538

	Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31, 2022 Using
	Fair value at December 31, 2022		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
Assets:
Funds held in trust account	$	174,437	$	174,437	$	—	$	—
Securities and other investments owned:
Equity securities	952,601		584,136		—		368,465
Corporate bonds	8,539		—		8,539		—
Other fixed income securities	3,956		—		3,956		—
Total securities and other investments owned	965,096		584,136		12,495		368,465
Loans receivable, at fair value	701,652		—		—		701,652
Total assets measured at fair value	$	1,841,185	$	758,573	$	12,495	$	1,070,117
Liabilities:
Securities sold not yet purchased:
Equity securities	$	4,466	$	4,466	$	—	$	—
Corporate bonds	1,162		—		1,162		—
Other fixed income securities	269		—		269		—
Total securities sold not yet purchased	5,897		4,466		1,431		—
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		—		4,648
Warrant liabilities	173		173		—		—
Contingent consideration	31,046		—		—		31,046
Total liabilities measured at fair value	$	41,764	$	4,639	$	1,431	$	35,694

Schedule of fair value measurement inputs and valuation techniques

The following table summarizes the significant unobservable inputs in the fair value measurement of Level 3 financial assets and liabilities by category of investment and valuation technique as of March 31, 2023 and December 31, 2022:

	Fair value at March 31, 2023		Valuation Technique	Unobservable Input	Range	Weighted Average
Assets:
Equity securities	$	297,136	Market approach	Multiple of EBITDA	1.5x - 16.0x	6.3x
				Multiple of Sales	3.8x	3.8x
				Market price of related security	$0.01 - $14.05	$7.33
	57,974		Discounted cash flow	Market interest rate	23.8%	23.8%
	3,931		Option pricing model	Annualized volatility	30.0% - 510.0%	80.0%
Loans receivable at fair value	744,018		Discounted cash flow	Market interest rate	9.7% - 35.6%	18.1%
	28,067		Market approach	Market price of related security	$13.25	$13.25
Total level 3 assets measured at fair value	$	1,131,126
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,654	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	28,884		Discounted cash flow	EBITDA volatility	75%	75%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
				Revenue volatility	5.1%	5.1%
Total level 3 liabilities measured at fair value	$	33,538

	Fair value at December 31, 2022		Valuation Technique	Unobservable Input	Range	Weighted  Average
Assets:
Equity securities	$	304,172	Market approach	Multiple of EBITDA	1.5x - 10.5x	6.0x
				Multiple of Sales	3.0x	3.0x
				Market price of related security	$10.01 - $18.88	$16.91
	57,267		Discounted cash flow	Market interest rate	23.8%	23.8%
	7,026		Option pricing model	Annualized volatility	0.3% - 26.1%	70.0%
Loans receivable at fair value	694,499		Discounted cash flow	Market interest rate	6.0% - 83.5%	23.9%
	7,153		Market approach	Multiple of EBITDA	4.5x	4.5x
Total level 3 assets measured at fair value	$	1,070,117
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$	4,648	Market approach	Operating income multiple	6.0x	6.0x
Contingent consideration	31,046		Discounted cash flow	EBITDA volatility	80.0%	80.0%
				Asset volatility	69.0%	69.0%
				Market interest rate	8.5%	8.5%
Total level 3 liabilities measured at fair value	$	35,694

Schedule of fair value measurement of level 3 financial assets and liabilities

The changes in Level 3 fair value hierarchy during the three months ended March 31, 2023 and 2022 were as follows:

	Level 3 Balance at Beginning of Year		Level 3 Changes During the Period								Level 3 Balance at End of Period
			Fair Value Adjustments		Relating to Undistributed Earnings		Purchases, Sales and Settlements		Transfer in and/or out of Level 3
Three Months Ended March 31, 2023
Equity securities	$	368,465	$	(9,016)	$	—	$	6,487	$	(6,895)	$	359,041
Loans receivable at fair value	701,652		43,459		231		26,743		—		772,085
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,648		—		308		(302)		—		4,654
Contingent consideration	31,046		(3,447)		—		1,285		—		28,884
Three Months Ended March 31, 2022
Equity securities	$	377,549	$	(4,543)	$	—	$	19,912	$	(4,254)	$	388,664
Loans receivable at fair value	873,186		10,937		3,238		(4,970)		—		882,391
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,506		—		247		(251)		—		4,502
Contingent consideration	—		—		—		22,464		—		22,464

Schedule of financial assets measured on nonrecurring basis

The following table presents information on the assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2023 and December 31, 2022. These investments were measured due to an observable price change or impairment during the periods below.

	Fair Value Measurement Using
	Total		Quoted prices in active markets for identical assets  (Level 1)		Other observable inputs  (Level 2)		Significant unobservable inputs  (Level 3)
As of March 31, 2023
Investments in nonpublic entities that do not report NAV	$	4,271	$	—	$	—	$	4,271
As of December 31, 2022
Investments in nonpublic entities that do not report NAV	$	20,251	$	—	$	18,659	$	1,592

Redeemable Noncontrolling Interest

Changes to redeemable noncontrolling interest consist of the following:

	Three Months Ended March 31, 2023
Balance, December 31, 2022	$	178,622
Net loss	(146)
Purchase of Lingo minority interest	(11,190)
Remeasurement adjustments for Lingo and BRPM 250	7,681
Balance, March 31, 2023	$	174,967

Schedule of investments in the VIE

The carrying value of the Company’s investments in the VIEs that were not consolidated is shown below.

	March 31, 2023		December 31, 2022
Securities and other investments owned, at fair value	$	35,383	$	33,743
Loans receivable, at fair value	58,611		46,700
Other assets	2,570		3,755
Maximum exposure to loss	$	96,564	$	84,198

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ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The fair value of acquisition consideration and preliminary purchase price allocation was as follows:

Consideration paid:
Cash	$	112,686
Fair value of seller financing	54,000
Fair value of 2,400,000 RILYO shares issued in senior notes at $24.59 per share	59,016
Fair value of 227,491 B. Riley common shares issued at $42.11 per share	9,580
Fair value of 215,876 stock options attributable to service period prior to acquisition	5,749
Fair value of deferred payments	6,515
Total consideration	$	247,546
Assets acquired and liabilities assumed:
Cash and cash equivalents	$	18,810
Accounts receivable	91,039
Prepaid and other assets	90,289
Right-of-use assets	7,665
Property and equipment	8,320
Other intangible assets	89,000
Accounts payable	(54,553)
Accrued expenses and other liabilities	(61,677)
Deferred income taxes	(9,989)
Contingent consideration	(2,212)
Lease liability	(7,665)
Net tangible assets acquired and liabilities assumed	169,027
Goodwill	78,519
Total	$	247,546

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets:

Category	Useful life	Fair Value
Customer relationships	9 years	$	50,000
Internally developed software and other intangibles	1 to 3 years	4,000
Tradenames	N/A	35,000
Total		$	89,000

Business Acquisition, Pro Forma Information

The following unaudited pro forma financial information is presented to illustrate the estimated effects of the acquisition of Targus as if it had occurred on January 1, 2021. The pro forma amounts include the historical operating results of the Targus prior to the acquisition, with adjustments directly attributable to the acquisition. The pro forma results include adjustments and consequential tax effects to reflect incremental depreciation and amortization expense to be incurred based on preliminary fair values of the identifiable intangible assets acquired, the incremental interest expense associated with the issuance of debt to finance the acquisition, and the adjustments to exclude acquisition related costs incurred during the year ended December 31, 2022 and to recognize these costs during the year ended December 31, 2021 as if incurred on January 1, 2021. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations of the combined company were, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition.

	Pro Forma (unaudited)
	Three Months Ended March 31, 2022
Revenues	$	341,287
Net loss	$	(7,313)
Net loss attributable to B. Riley Financial, Inc.	$	(8,179)
Net loss attributable to common shareholders	$	(10,181)

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RESTRUCTURING CHARGE (Tables)

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of changes in accrued restructuring charge

The following tables summarize the changes in accrued restructuring charge during the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
Balance, beginning of period	$	2,335	$	624
Restructuring charge	93		—
Cash paid	(438)		(27)
Non-cash items	6		2
Balance, end of period	$	1,996	$	599

Restructuring activities by reportable segment

The following table summarizes the restructuring activities by reportable segment during the three months ended March 31, 2023. There were no restructuring charges during the three months ended March 31, 2022.

	Wealth Management		Communications		Total
Restructuring charges for the three months ended March 31, 2023:
Employee termination	$	—	$	60	$	60
Facility closure and consolidation	33		—		33
Total restructuring charge	$	33	$	60	$	93

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SECURITIES LENDING (Tables)

3 Months Ended

Mar. 31, 2023

Securities Lending [Abstract]

Schedule of contractual gross and net securities borrowing and lending balances

The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of March 31, 2023 and December 31, 2022:

	Gross amounts recognized		Gross amounts offset in the consolidated balance sheets (1)		Net amounts included in the consolidated balance sheets		Amounts not offset in the consolidated balance sheets but eligible for offsetting upon counterparty default(2)		Net amounts
As of March 31, 2023
Securities borrowed	$	2,942,843	$	—	$	2,942,843	$	2,942,843	$	—
Securities loaned	$	2,937,982	$	—	$	2,937,982	$	2,937,982	$	—
As of December 31, 2022
Securities borrowed	$	2,343,327	$	—	$	2,343,327	$	2,343,327	$	—
Securities loaned	$	2,334,031	$	—	$	2,334,031	$	2,334,031	$	—

_________________________

(1)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

(2)Includes the amount of cash collateral held/posted.

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ACCOUNTS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of components of accounts receivable, net

The components of accounts receivable, net, include the following:

	March 31, 2023		December 31, 2022
Accounts receivable	$	116,411	$	144,120
Investment banking fees, commissions and other receivables	10,766		8,654
Total accounts receivable	127,177		152,774
Allowance for doubtful accounts	(6,324)		(3,664)
Accounts receivable, net	$	120,853	$	149,110

Schedule of allowance for doubtful accounts

Additions and changes to the allowance for doubtful accounts consist of the following:

	Three Months Ended March 31,
	2023		2022
Balance, beginning of period	$	3,664	$	3,658
Add: Additions to reserve	3,173		405
Less: Write-offs	(488)		(960)
Less: Recovery	(25)		—
Balance, end of period	$	6,324	$	3,103

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PREPAID EXPENSES AND OTHER ASSETS (Tables)

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of prepaids and other assets

Prepaid expenses and other assets consist of the following:

	March 31, 2023		December 31, 2022
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	$	176,182	$	174,437
Inventory	113,107		101,675
Equity method investments	41,816		41,298
Prepaid expenses	23,699		17,623
Unbilled receivables	14,857		14,144
Other receivables	67,902		66,403
Other assets	54,309		45,116
Prepaid expenses and other assets	$	491,872	$	460,696

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of carrying amount of goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2023 were as follows:

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Balance as of December 31, 2022	$	162,018	$	51,195	$	1,975	$	23,680	$	193,195	$	75,753	$	4,779	$	512,595
Acquisition of other business	—		—		—		7,273		—		—		2,428		9,701
Other	—		—		—		36		(1,101)		2,766		—		1,701
Balance as of March 31, 2023	$	162,018	$	51,195	$	1,975	$	30,989	$	192,094	$	78,519	$	7,207	$	523,997

During the three months ended March 31, 2023, the changes in goodwill included $36 of foreign currency translation amounts, $(1,101) of working capital settlements as described in Note 4, and $2,766 related to certain purchase price accounting adjustments.

Schedule of intangible assets

Intangible assets consisted of the following:

		As of March 31, 2023						As of December 31, 2022
	Useful Life	Gross Carrying Value		Accumulated Amortization		Intangibles Net		Gross Carrying Value		Accumulated Amortization		Intangibles Net
Amortizable assets:
Customer relationships	1.0 to 16 Years	$	270,511	$	(94,872)	$	175,639	$	268,253	$	(87,049)	$	181,204
Domain names	7 years	185		(176)		9		185		(169)		16
Advertising relationships	8 years	100		(84)		16		100		(81)		19
Internally developed software and other intangibles	0.5 to 5 Years	28,295		(14,522)		13,773		28,295		(12,714)		15,581
Trademarks	3 to 10 Years	21,532		(5,185)		16,347		23,309		(6,307)		17,002
Total		320,623		(114,839)		205,784		320,142		(106,320)		213,822
Non-amortizable assets:
Tradenames		160,276		—		160,276		160,276		—		160,276
Total intangible assets		$	480,899	$	(114,839)	$	366,060	$	480,418	$	(106,320)	$	374,098

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SENIOR NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of senior notes payable, net

Senior notes payable, net, are comprised of the following:

	March 31, 2023		December 31, 2022
6.750% Senior notes due May 31, 2024	$	199,232	$	199,232
6.500% Senior notes due September 30, 2026	180,532		180,532
6.375% Senior notes due February 28, 2025	146,432		146,432
6.000% Senior notes due January 31, 2028	266,058		266,058
5.500% Senior notes due March 31, 2026	217,440		217,440
5.250% Senior notes due August 31, 2028	405,483		405,483
5.000% Senior notes due December 31, 2026	324,714		324,714
	1,739,891		1,739,891
Less: Unamortized debt issuance costs	(16,914)		(18,140)
	$	1,722,977	$	1,721,751

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ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Schedule of accrued expenses and other liabilities

Accrued expenses and other liabilities consist of the following:

	March 31, 2023		December 31, 2022
Accrued payroll and related expenses	$	60,141	$	86,798
Dividends payable	18,360		33,923
Income taxes payable	12,100		14,760
Other tax liabilities	19,617		23,426
Contingent consideration	28,884		31,046
Accrued expenses	79,520		68,180
Other liabilities	44,713		64,841
Accrued expenses and other liabilities	$	263,335	$	322,974

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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of revenues from contracts with customers

Revenue from contracts with customers by the Company's six reportable operating segments and the All Other category during the three months ended March 31, 2023 and 2022 was as follows:

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Revenues for the three months ended March 31, 2023
Corporate finance, consulting and investment banking fees	$	39,149	$	—	$	—	$	14,515	$	—	$	—	$	—	$	53,664
Wealth and asset management fees	664		43,310		—		—		—		—		—		43,974
Commissions, fees and reimbursed expenses	9,218		3,928		5,444		10,495		—		—		—		29,085
Subscription services	—		—		—		—		83,008		—		—		83,008
Sale of goods	—		—		216		—		1,867		65,694		—		67,777
Advertising, licensing and other	—		—		—		—		2,044		4,309		9,273		15,626
Total revenues from contracts with customers	49,031		47,238		5,660		25,010		86,919		70,003		9,273		293,134
Interest income - Loans and securities lending	77,186		—		—		—		—		—		—		77,186
Trading (loss) gain on investments	7,020		1,272		—		—		—		—		—		8,292
Fair value adjustment on loans	43,276		—		—		—		—		—		—		43,276
Other	8,898		1,304		—		—		—		—		—		10,202
Total revenues	$	185,411	$	49,814	$	5,660	$	25,010	$	86,919	$	70,003	$	9,273	$	432,090

	Capital Markets Segment		Wealth Management Segment		Auction and Liquidation Segment		Financial Consulting Segment		Communications Segment		Consumer Segment		All Other		Total
Revenues for the three months ended March 31, 2022
Corporate finance, consulting and investment banking fees	$	41,673	$	—	$	—	$	16,970	$	—	$	—	$	—	$	58,643
Wealth and asset management fees	2,400		64,222		—		—		—		—		—		66,622
Commissions, fees and reimbursed expenses	12,045		12,849		3,355		8,966		—		—		—		37,215
Subscription services	—		—		—		—		27,813		—		—		27,813
Sale of goods	—		—		—		—		1,878		—		—		1,878
Advertising, licensing and other	—		—		—		—		2,274		4,557		699		7,530
Total revenues from contracts with customers	56,118		77,071		3,355		25,936		31,965		4,557		699		199,701
Interest income - Loans and securities lending	61,426		—		—		—		—		—		—		61,426
Trading (loss) gain on investments	(30,738)		522		—		—		—		—		—		(30,216)
Fair value adjustment on loans	10,938		—		—		—		—		—		—		10,938
Other	5,105		(114)		—				—		—		—		4,991
Total revenues	$	102,849	$	77,479	$	3,355	$	25,936	$	31,965	$	4,557	$	699	$	246,840

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per share

Basic and diluted earnings per share were calculated as follows:

	Three Months Ended March 31,
	2023		2022
Net income (loss) attributable to B. Riley Financial, Inc.	$	17,155	$	(10,062)
Preferred stock dividends	(2,012)		(2,002)
Net income (loss) applicable to common shareholders	$	15,143	$	(12,064)
Weighted average common shares outstanding:
Basic	28,585,337		27,855,033
Effect of dilutive potential common shares:
Restricted stock units and warrants	928,098		—
Diluted	29,513,435		27,855,033
Basic income (loss) per common share	$	0.53	$	(0.43)
Diluted income (loss) per common share	$	0.51	$	(0.43)

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BUSINESS SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

The following is a summary of certain financial data for each of the Company’s reportable segments:

	Three Months Ended March 31,
	2023		2022
Capital Markets segment:			(As Restated)
Revenues - Services and fees	$	57,929	$	61,223
Trading income (loss) and fair value adjustments on loans	50,296		(19,800)
Interest income - Loans and securities lending	77,186		61,426
Total revenues	185,411		102,849
Selling, general and administrative expenses	(65,711)		(34,117)
Interest expense - Securities lending and loan participations sold	(32,424)		(11,766)
Depreciation and amortization	(1,256)		(1,893)
Segment income	86,020		55,073
Wealth Management segment:
Revenues - Services and fees	48,542		76,957
Trading income and fair value adjustments on loans	1,272		522
Total revenues	49,814		77,479

Selling, general and administrative expenses	(47,322)	(85,742)
Restructuring charge	(33)	—
Depreciation and amortization	(1,086)	(1,833)
Segment income (loss)	1,373	(10,096)
Auction and Liquidation segment:
Revenues - Services and fees	5,444	3,355
Revenues - Sale of goods	216	—
Total revenues	5,660	3,355
Direct cost of services	(3,128)	(2,335)
Cost of goods sold	(52)	—
Selling, general and administrative expenses	(2,280)	(1,820)
Segment income (loss)	200	(800)
Financial Consulting segment:
Revenues - Services and fees	25,010	25,936
Selling, general and administrative expenses	(21,149)	(20,943)
Depreciation and amortization	(78)	(81)
Segment income	3,783	4,912
Communications segment:
Revenues - Services and fees	85,052	30,087
Revenues - Sale of goods	1,867	1,878
Total revenues	86,919	31,965
Direct cost of services	(44,733)	(9,316)
Cost of goods sold	(2,168)	(2,251)
Selling, general and administrative expenses	(22,544)	(8,245)
Restructuring charge	(60)	—
Depreciation and amortization	(6,631)	(3,184)
Segment income	10,783	8,969
Consumer segment:
Revenues - Services and fees	4,309	4,557
Revenues - Sale of goods	65,694	—
Total revenues	70,003	4,557
Cost of goods sold	(45,406)	—
Selling, general and administrative expenses	(20,112)	(756)
Depreciation and amortization	(2,839)	(583)
Segment income	1,646	3,218
Consolidated operating income from reportable segments	103,805	61,276
All Other:
Revenues - Services and fees	9,273	699
Direct cost of services	(6,536)	—
Corporate and other expenses	(21,619)	(16,002)
Interest income	2,574	67
Dividend income	13,204	7,861
Realized and unrealized losses on investments	(28,442)	(49,112)
Change in fair value of financial instruments and other	(209)	5,981
(Loss) income on equity investments	(10)	6,775
Interest expense	(47,561)	(30,436)

Income (loss) before income taxes	24,479		(12,891)
(Provision for) benefit from income taxes	(7,919)		3,695
Net income (loss)	16,560		(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)		866
Net income (loss) attributable to B. Riley Financial, Inc.	17,155		(10,062)
Preferred stock dividends	2,012		2,002
Net income (loss) available to common shareholders	$	15,143	$	(12,064)

Schedule of revenues by geographical area

The following table presents revenues by geographical area:

	Three Months Ended March 31,
	2023		2022
			(As Restated)
Revenues:
Revenues - Services and fees:
North America	$	234,930	$	200,861
Europe	629		1,953
Total Revenues - Services and fees	235,559		202,814
Trading income (loss) and fair value adjustments on loans
North America	51,568		(19,278)
Revenues - Sale of goods
North America	37,947		1,878
Australia	3,459		—
Europe, Middle East, and Africa	17,428		—
Asia	6,224		—
Latin America	2,719		—
Total Revenues - Sale of goods	67,777		1,878
Revenues - Interest income - Loans and securities lending:
North America	77,186		61,426
Total Revenues:
North America	401,631		244,887
Australia	3,459		—
Europe, Middle East, and Africa	18,057		1,953
Asia	6,224		—
Latin America	2,719		—
Total Revenues	$	432,090	$	246,840

Long-Lived Assets by Geographic Areas

The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:

	March 31, 2023		December 31, 2022
Long-lived Assets - Property and Equipment, net:
North America	$	26,770	$	26,276
Europe	532		577
Asia Pacific	165		162
Australia	110		126
Total	$	27,577	$	27,141

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ORGANIZATION AND NATURE OF BUSINESS OPERATIONS (Details)	3 Months Ended
	Mar. 31, 2023 segment
Accounting Policies [Abstract]
Number of operating segments	6

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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Services and fees	$ 235,559	$ 202,814
Trading (loss) income and fair value adjustments on loans		(19,278)
Interest income - Loans and securities lending	77,186	61,426
Sale of goods		1,878
Total revenues	432,090	246,840
Operating expenses:
Direct cost of services	54,397	11,651
Cost of goods sold		2,251
Selling, general and administrative expenses	212,627	175,199
Interest expense - Securities lending and loan participations sold	32,424	11,766
Total operating expenses	347,167	200,867
Operating income	84,923	45,973
Other income (expense):
Interest income	2,574	67
Dividend income	13,204	7,861
Realized and unrealized gains (losses) on investments	(28,442)	(49,112)
Change in fair value of financial instruments and other	(209)	5,981
Income from equity method investments	(10)	6,775
Interest expense	(47,561)	(30,436)
Income (loss) before income taxes	24,479	(12,891)
(Provision for) benefit from income taxes	(7,919)	3,695
Net income (loss)	16,560	(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)	866
Net income (loss) attributable to B. Riley Financial, Inc.	17,155	(10,062)
Preferred stock dividends	2,012	2,002
Net income (loss) available to common shareholders	15,143	(12,064)
Net income (loss) available to common shareholders	$ 15,143	$ (12,064)
Basic (loss) income per common share (in dollars per share)	$ 0.53	$ (0.43)
Diluted (loss) income per common share (in dollars per share)	$ 0.51	$ (0.43)
Weighted average basic common shares outstanding (in shares)	28,585,337	27,855,033
Weighted average diluted common shares outstanding (in shares)	29,513,435	27,855,033
As Previously Reported | Dividend Income and Investment Gain (Loss) Classification Error
Revenues:
Services and fees		$ 210,675
Trading (loss) income and fair value adjustments on loans		(68,390)
Interest income - Loans and securities lending		61,426
Sale of goods		1,878
Total revenues		205,589
Operating expenses:
Direct cost of services		11,651
Cost of goods sold		2,251
Selling, general and administrative expenses		175,199
Interest expense - Securities lending and loan participations sold		11,766
Total operating expenses		200,867
Operating income		4,722
Other income (expense):
Interest income		67
Dividend income		0
Realized and unrealized gains (losses) on investments		0
Change in fair value of financial instruments and other		5,981
Income from equity method investments		6,775
Interest expense		(30,436)
Income (loss) before income taxes		(12,891)
(Provision for) benefit from income taxes		3,695
Net income (loss)		(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests		866
Net income (loss) attributable to B. Riley Financial, Inc.		(10,062)
Preferred stock dividends		2,002
Net income (loss) available to common shareholders		(12,064)
Net income (loss) available to common shareholders		$ (12,064)
Basic (loss) income per common share (in dollars per share)		$ (0.43)
Diluted (loss) income per common share (in dollars per share)		$ (0.43)
Weighted average basic common shares outstanding (in shares)		27,855,033
Weighted average diluted common shares outstanding (in shares)		27,855,033
Restatement Adjustments | Dividend Income and Investment Gain (Loss) Classification Error
Revenues:
Services and fees		$ (7,861)
Trading (loss) income and fair value adjustments on loans		49,112
Interest income - Loans and securities lending		0
Sale of goods		0
Total revenues		41,251
Operating expenses:
Direct cost of services		0
Cost of goods sold		0
Selling, general and administrative expenses		0
Interest expense - Securities lending and loan participations sold		0
Total operating expenses		0
Operating income		41,251
Other income (expense):
Interest income		0
Dividend income		7,861
Realized and unrealized gains (losses) on investments		(49,112)
Change in fair value of financial instruments and other		0
Income from equity method investments		0
Interest expense		0
Income (loss) before income taxes		0
(Provision for) benefit from income taxes		0
Net income (loss)		0
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests		0
Net income (loss) attributable to B. Riley Financial, Inc.		0
Preferred stock dividends		0
Net income (loss) available to common shareholders		0
Net income (loss) available to common shareholders		$ 0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details)			1 Months Ended	3 Months Ended		12 Months Ended
	Sep. 23, 2022 USD ($)	Jul. 19, 2022 USD ($)	Jul. 29, 2022 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2023 EUR (€)	Feb. 24, 2023	Jan. 12, 2023 USD ($)	May 31, 2022	Apr. 30, 2022	Nov. 30, 2020
Accounting Policies [Line Items]
Advertising costs				$ 5,121,000	$ 1,763,000
Restricted cash				2,351,000		$ 2,308,000
Net of unamortized costs, origination fees, premiums and discounts				3,620,000		3,851,000
Unrealized gains (losses)				43,459,000	10,937,000
Financing receivable, nonaccrual				$ 39,552,000		$ 7,153,000
Nonaccrual to outstanding, percent				5.10%		1.00%		5.10%
Loans receivable, at fair value				$ 772,085,000		$ 701,652,000
Equity method investments, fair value disclosure				370,502,000		371,948,000
Partnership investment interests				48,930,000		70,063,000
Investment securities				86,920,000		94,109,000
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries				176,182,000		174,437,000
Warrant liability				381,000		173,000
Fair value assets				1,861,647,000		1,841,185,000
Senior notes payable				1,722,977,000		1,721,751,000
Fair value				1,258,532,000		1,431,787,000
Forward exchange contracts | €								€ 0
Transaction gains (losses)				(234,000)	296,000
Equity investments				41,816,000		41,298,000
Total assets				6,618,190,000		6,111,202,000
Total liabilities				6,002,859,000		5,426,687,000
Revenues				432,090,000	246,840,000
Redemption value				174,967,000		178,622,000
Issuance of common stock				$ 2,111,000	20,320,000
Non-cash financing activity				15,000
Agent fees				$ 0	12,051,000
Sold price per unit (in dollars per share) | $ / shares							$ 10.00
Assets held in trust							$ 345,000,000
Consummate business combination transaction term							24 months
Consummate business combination transaction term, circumstance based							27 months
Bebe Stores Inc. ("bebe")
Accounting Policies [Line Items]
Equity method investments, fair value disclosure				22,573,000		25,423,000
Equity investments				40,937,000		40,383,000
Secured Debt | Term Loan | Line of Credit
Accounting Policies [Line Items]
Principal amount	$ 148,200,000			$ 49,890,000						$ 78,296,000
BRPM 150
Accounting Policies [Line Items]
Gross proceeds							$ 172,500,000
BRPM 250
Accounting Policies [Line Items]
Gross proceeds							$ 172,500,000
FaZeClan Holdings, Inc
Accounting Policies [Line Items]
Decrease in prepaid expenses and other assets		$ 172,584,000
De-consolidation of BRPM 150			$ 172,500,000
FaZeClan Holdings, Inc | Incentive Fee
Accounting Policies [Line Items]
Revenue from related parties						41,885,000
Common Class A
Accounting Policies [Line Items]
Exercise price per share (in dollars per share) | $ / shares							$ 11.50
Minimum
Accounting Policies [Line Items]
Cash fee percentage				7.00%
Carried interest percentage				8.00%
Maximum
Accounting Policies [Line Items]
Cash fee percentage				10.00%
Carried interest percentage				15.00%
FocalPoint Securities, LLC ("FocalPoint")
Accounting Policies [Line Items]
Business combination, deferred cash consideration				$ 22,661,000
Lingo
Accounting Policies [Line Items]
Business combination, step acquisition, equity interest in acquiree									20.00%		80.00%	40.00%	40.00%
Business acquisition, percentage of voting interests acquired									20.00%		20.00%
Subsequent acquisition, percentage									100.00%		80.00%
Consideration transferred, liabilities incurred				7,000,000
Net tangible assets acquired and liabilities assumed				1,190,000
Warrant
Accounting Policies [Line Items]
Warrant liability				381,000		173,000
IPO
Accounting Policies [Line Items]
Consummated units (in shares) | shares							17,250,000
IPO | Common Class A
Accounting Policies [Line Items]
Class of warrant or right, number of securities called by each warrant or right (in shares) | shares							1
Significant unobservable inputs (Level 3)
Accounting Policies [Line Items]
Loans receivable, at fair value				772,085,000		701,652,000
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries				0		0
Warrant liability				0		0
Fair value assets				1,131,126,000		1,070,117,000
W.S. Badcock Corporation
Accounting Policies [Line Items]
Payments to acquire finance receivables	$ 168,363,000			145,278,000			$ 400,000,000
Loans receivable, at fair value				324,328,000		318,109,000
Fair Value, Measurements, Recurring
Accounting Policies [Line Items]
Loans receivable carrying value				795,996,000		769,022,000
Loans receivable				$ 799,616,000		$ 772,873,000
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3)
Accounting Policies [Line Items]
Percentage of total assets measured in Level 3 of the hierarchy level				17.10%		17.50%		17.10%
Loans Receivable
Accounting Policies [Line Items]
Loans receivable fair value				$ 772,085,000		$ 701,652,000
Fixed Income Securities
Accounting Policies [Line Items]
Interest expense				32,424,000	11,766,000
Forward Contracts
Accounting Policies [Line Items]
Net gain (loss) forward exchange contract				$ 0	$ 68,000
Bebe Stores Inc. ("bebe")
Accounting Policies [Line Items]
Ownership, percentage				41.30%		40.10%		41.30%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 209,971	$ 268,618
Restricted cash	2,351	2,308
Total cash, cash equivalents and restricted cash	$ 212,322	$ 270,926

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of securities and other investments owned and securities sold not yet purchased at fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Securities and other investments owned:
Total securities and other investments owned	$ 1,049,230	$ 1,129,268
Securities sold not yet purchased:
Total securities sold not yet purchased	7,806	5,897
Corporate bonds
Securities and other investments owned:
Total securities and other investments owned	65,470	8,539
Securities sold not yet purchased:
Total securities sold not yet purchased	480	1,162
Other fixed income securities
Securities and other investments owned:
Total securities and other investments owned	5,248	3,956
Securities sold not yet purchased:
Total securities sold not yet purchased	1,204	269
Partnership interests and other
Securities and other investments owned:
Total securities and other investments owned	48,930	70,063
Equity securities
Securities and other investments owned:
Total securities and other investments owned	929,582	1,046,710
Securities sold not yet purchased:
Total securities sold not yet purchased	$ 6,122	$ 4,466

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of equity method investments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) investment	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2022
Schedule of Equity Method Investments [Line Items]
Equity method investment, number of investments | investment	2
Total assets	$ 6,618,190	$ 6,111,202
Total liabilities	6,002,859	5,426,687
Equity attributable to investee	381,185	446,514
Revenues	432,090		$ 246,840
Net income (loss) attributable to investees	$ 17,155		$ (10,062)
Investment One and Two
Schedule of Equity Method Investments [Line Items]
Total assets		197,101		$ 202,520
Total liabilities		6,789		5,737
Equity attributable to investee		190,312		196,783
Revenues		27,971		27,209
Net income (loss) attributable to investees		11,808		12,882
B&W
Schedule of Equity Method Investments [Line Items]
Total assets		942,655		881,567
Total liabilities		944,744		898,695
Equity attributable to investee		(2,089)		(17,128)
Revenues		249,877		192,295
Net income (loss) attributable to investees		$ 2,021		$ 25,874
Investment One
Schedule of Equity Method Investments [Line Items]
Rate of equity interests	41.00%
Investment Two
Schedule of Equity Method Investments [Line Items]
Rate of equity interests		43.00%
B&W
Schedule of Equity Method Investments [Line Items]
Rate of equity interests		31.00%			31.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of financial assets and liabilities measured on recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets:
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	$ 176,182	$ 174,437
Securities and other investments owned:
Total securities and other investments owned	913,380	965,096
Loans receivable, at fair value	772,085	701,652
Total assets measured at fair value	1,861,647	1,841,185
Securities sold not yet purchased:
Total securities sold not yet purchased	7,806	5,897
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654	4,648
Warrant liabilities	381	173
Contingent consideration	28,884	31,046
Total liabilities measured at fair value	41,725	41,764
Quoted prices in active markets for identical assets (Level 1)
Assets:
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	176,182	174,437
Securities and other investments owned:
Total securities and other investments owned	537,337	584,136
Loans receivable, at fair value	0	0
Total assets measured at fair value	713,519	758,573
Securities sold not yet purchased:
Total securities sold not yet purchased	6,122	4,466
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	0	0
Warrant liabilities	381	173
Contingent consideration	0	0
Total liabilities measured at fair value	6,503	4,639
Other observable inputs (Level 2)
Assets:
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	0	0
Securities and other investments owned:
Total securities and other investments owned	17,002	12,495
Loans receivable, at fair value	0	0
Total assets measured at fair value	17,002	12,495
Securities sold not yet purchased:
Total securities sold not yet purchased	1,684	1,431
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	0	0
Warrant liabilities	0	0
Contingent consideration	0	0
Total liabilities measured at fair value	1,684	1,431
Significant unobservable inputs (Level 3)
Assets:
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	0	0
Securities and other investments owned:
Total securities and other investments owned	359,041	368,465
Loans receivable, at fair value	772,085	701,652
Total assets measured at fair value	1,131,126	1,070,117
Securities sold not yet purchased:
Total securities sold not yet purchased	0	0
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654	4,648
Warrant liabilities	0	0
Contingent consideration	28,884	31,046
Total liabilities measured at fair value	33,538	35,694
Equity securities
Securities and other investments owned:
Total securities and other investments owned	842,662	952,601
Securities sold not yet purchased:
Total securities sold not yet purchased	6,122	4,466
Equity securities | Quoted prices in active markets for identical assets (Level 1)
Securities and other investments owned:
Total securities and other investments owned	483,621	584,136
Securities sold not yet purchased:
Total securities sold not yet purchased	6,122	4,466
Equity securities | Other observable inputs (Level 2)
Securities and other investments owned:
Total securities and other investments owned	0	0
Securities sold not yet purchased:
Total securities sold not yet purchased	0	0
Equity securities | Significant unobservable inputs (Level 3)
Securities and other investments owned:
Total securities and other investments owned	359,041	368,465
Securities sold not yet purchased:
Total securities sold not yet purchased	0	0
Corporate bonds
Securities and other investments owned:
Total securities and other investments owned	65,470	8,539
Securities sold not yet purchased:
Total securities sold not yet purchased	480	1,162
Corporate bonds | Quoted prices in active markets for identical assets (Level 1)
Securities and other investments owned:
Total securities and other investments owned	53,716	0
Securities sold not yet purchased:
Total securities sold not yet purchased	0	0
Corporate bonds | Other observable inputs (Level 2)
Securities and other investments owned:
Total securities and other investments owned	11,754	8,539
Securities sold not yet purchased:
Total securities sold not yet purchased	480	1,162
Corporate bonds | Significant unobservable inputs (Level 3)
Securities and other investments owned:
Total securities and other investments owned	0	0
Securities sold not yet purchased:
Total securities sold not yet purchased	0	0
Other fixed income securities
Securities and other investments owned:
Total securities and other investments owned	5,248	3,956
Securities sold not yet purchased:
Total securities sold not yet purchased	1,204	269
Other fixed income securities | Quoted prices in active markets for identical assets (Level 1)
Securities and other investments owned:
Total securities and other investments owned	0	0
Securities sold not yet purchased:
Total securities sold not yet purchased	0	0
Other fixed income securities | Other observable inputs (Level 2)
Securities and other investments owned:
Total securities and other investments owned	5,248	3,956
Securities sold not yet purchased:
Total securities sold not yet purchased	1,204	269
Other fixed income securities | Significant unobservable inputs (Level 3)
Securities and other investments owned:
Total securities and other investments owned	0	0
Securities sold not yet purchased:
Total securities sold not yet purchased	$ 0	$ 0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of significant unobservable inputs of level 3 financial assets and liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value	$ 772,085	$ 701,652
Total assets measured at fair value	1,861,647	1,841,185
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654	4,648
Contingent consideration	28,884	31,046
Total liabilities measured at fair value	41,725	41,764
Significant unobservable inputs (Level 3)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value	772,085	701,652
Total assets measured at fair value	1,131,126	1,070,117
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	4,654	4,648
Contingent consideration	28,884	31,046
Total liabilities measured at fair value	$ 33,538	$ 35,694
Significant unobservable inputs (Level 3) | Market interest rate
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent	0.085	0.085
Significant unobservable inputs (Level 3) | Revenue volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent	0.051
Significant unobservable inputs (Level 3) | Weighted Average | Market interest rate
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent	0.085	0.085
Significant unobservable inputs (Level 3) | Weighted Average | Revenue volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent	0.051
Significant unobservable inputs (Level 3) | Market approach
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value	$ 297,136	$ 304,172
Fair value	28,067	7,153
Mandatorily redeemable noncontrolling interests issued after November 5, 2003	$ 4,654	$ 4,648
Significant unobservable inputs (Level 3) | Market approach | Multiple of EBITDA
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans receivable at fair value, measurement input	13.25	4.5
Significant unobservable inputs (Level 3) | Market approach | Multiple of Sales
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input		3.0
Significant unobservable inputs (Level 3) | Market approach | Operating income multiple
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mandatorily redeemable noncontrolling interesting, measurement input	6.0	6
Significant unobservable inputs (Level 3) | Market approach | Minimum | Multiple of EBITDA
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	1.5	1.5
Significant unobservable inputs (Level 3) | Market approach | Minimum | Multiple of Sales
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	3.8
Significant unobservable inputs (Level 3) | Market approach | Minimum | Market price of related security
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input | $ / shares	0.01	10.01
Significant unobservable inputs (Level 3) | Market approach | Maximum | Multiple of EBITDA
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	16.0	10.5
Significant unobservable inputs (Level 3) | Market approach | Maximum | Market price of related security
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input | $ / shares	14.05	18.88
Significant unobservable inputs (Level 3) | Market approach | Weighted Average | Multiple of EBITDA
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	6.3	6.0
Loans receivable at fair value, measurement input	13.25	4.5
Significant unobservable inputs (Level 3) | Market approach | Weighted Average | Multiple of Sales
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	3.8	3.0
Significant unobservable inputs (Level 3) | Market approach | Weighted Average | Market price of related security
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input | $ / shares	7.33	16.91
Significant unobservable inputs (Level 3) | Market approach | Weighted Average | Operating income multiple
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mandatorily redeemable noncontrolling interesting, measurement input	6.0	6
Significant unobservable inputs (Level 3) | Discounted cash flow
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value	$ 57,974	$ 57,267
Fair value	744,018	694,499
Contingent consideration	$ 28,884	$ 31,046
Significant unobservable inputs (Level 3) | Discounted cash flow | Market interest rate
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	0.238	0.238
Significant unobservable inputs (Level 3) | Discounted cash flow | EBITDA volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent | $ / shares	0.75	0.800
Significant unobservable inputs (Level 3) | Discounted cash flow | Asset volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent	0.690	0.690
Significant unobservable inputs (Level 3) | Discounted cash flow | Minimum | Market interest rate
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans receivable at fair value, measurement input	0.097	0.060
Significant unobservable inputs (Level 3) | Discounted cash flow | Maximum | Market interest rate
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans receivable at fair value, measurement input	0.356	0.835
Significant unobservable inputs (Level 3) | Discounted cash flow | Weighted Average | Market interest rate
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	0.238	0.238
Loans receivable at fair value, measurement input	0.181	0.239
Significant unobservable inputs (Level 3) | Discounted cash flow | Weighted Average | EBITDA volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent | $ / shares	0.75	0.800
Significant unobservable inputs (Level 3) | Discounted cash flow | Weighted Average | Asset volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Contingent earnout, measurement input, percent	0.690	0.690
Significant unobservable inputs (Level 3) | Option pricing model
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value	$ 3,931	$ 7,026
Significant unobservable inputs (Level 3) | Option pricing model | Minimum | Annualized volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	0.300	0.003
Significant unobservable inputs (Level 3) | Option pricing model | Maximum | Annualized volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	5.100	0.261
Significant unobservable inputs (Level 3) | Option pricing model | Weighted Average | Annualized volatility
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities, measurement input	0.800	0.700

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of fair value measurement of level 3 financial assets and liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Equity securities | Significant unobservable inputs (Level 3)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance at beginning of period	$ 368,465	$ 377,549
Fair Value Adjustments	(9,016)	(4,543)
Relating to Undistributed Earnings	0	0
Purchases, Sales and Settlements	6,487	19,912
Transfer in and/or out of Level 3	(6,895)	(4,254)
Balance at end of period	359,041	388,664
Loans receivable at fair value | Significant unobservable inputs (Level 3)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance at beginning of period	701,652	873,186
Fair Value Adjustments	43,459	10,937
Relating to Undistributed Earnings	231	3,238
Purchases, Sales and Settlements	26,743	(4,970)
Transfer in and/or out of Level 3	0	0
Balance at end of period	772,085	882,391
Mandatorily redeemable noncontrolling interests issued after November 5, 2003 | Significant unobservable inputs (Level 3)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance at beginning of period	4,648	4,506
Fair Value Adjustments	0	0
Relating to Undistributed Earnings	308	247
Purchases, Sales and Settlements	(302)	(251)
Transfer in and/or out of Level 3	0	0
Balance at end of period	4,654	4,502
Contingent consideration
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance at beginning of period	31,046	0
Fair Value Adjustments	(3,447)	0
Relating to Undistributed Earnings	0	0
Purchases, Sales and Settlements	1,285	22,464
Transfer in and/or out of Level 3	0	0
Balance at end of period	$ 28,884	$ 22,464

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of financial assets measured on nonrecurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in nonpublic entities that do not report NAV	$ 4,271	$ 20,251
Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in nonpublic entities that do not report NAV	0	0
Other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in nonpublic entities that do not report NAV	0	18,659
Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in nonpublic entities that do not report NAV	$ 4,271	$ 1,592

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Redeemable noncontrolling interest (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Redeemable Noncontrolling Interest [Roll Forward]
Balance, December 31, 2022	$ 178,622
Balance, March 31, 2023	174,967
Lingo, BRPM 150 and 250
Redeemable Noncontrolling Interest [Roll Forward]
Balance, December 31, 2022	178,622
Net loss	(146)
Purchase of Lingo minority interest	(11,190)
Remeasurement adjustments for Lingo and BRPM 250	7,681
Balance, March 31, 2023	$ 174,967

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of investments in the VIE (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Securities and other investments owned, at fair value	$ 1,049,230	$ 1,129,268
Other assets	54,309	45,116
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Securities and other investments owned, at fair value	35,383	33,743
Loans receivable, at fair value	58,611	46,700
Other assets	2,570	3,755
Maximum exposure to loss	$ 96,564	$ 84,198

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ACQUISITIONS - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 18, 2022	May 31, 2022	Feb. 28, 2023	Mar. 31, 2023	Dec. 31, 2022	Feb. 24, 2023	Apr. 30, 2022	Nov. 30, 2020
Business Acquisition [Line Items]
Goodwill				$ 523,997	$ 512,595
Senior Notes | 6.750% Senior notes due May 31, 2024
Business Acquisition [Line Items]
Interest rate	6.75%
Targus
Business Acquisition [Line Items]
Total consideration	$ 247,546
Cash	112,686
Fair value of deferred payments	6,515
Lease liability	7,665
Goodwill	78,519
Other intangible assets	89,000
Acquisition related costs					1,921
Goodwill, period change				2,766
Net tangible assets acquired and liabilities assumed	169,027
Targus | Other Notes Payable
Business Acquisition [Line Items]
Consideration transferred, liabilities incurred	54,000
Targus | Senior Notes
Business Acquisition [Line Items]
Consideration transferred, liabilities incurred	$ 59,016
Lingo
Business Acquisition [Line Items]
Consideration transferred, liabilities incurred				$ 7,000
Lease liability		$ 32,172
Goodwill		34,412
Other intangible assets		63,000
Financing receivable converted to equity		$ 17,500
Business combination, step acquisition, equity interest in acquiree		80.00%				20.00%	40.00%	40.00%
Remeasurement gain					6,790
Total fair value of assets		$ 116,500
Business acquisition, percentage of voting interests acquired		20.00%				20.00%
Fair value of noncontrolling interest		$ 8,021
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Cash					145,987
Consideration transferred, liabilities incurred					52,969
Equity interests issued and issuable					20,320
Goodwill			$ 150,824		151,925
Other intangible assets					52,860
Net tangible assets acquired and liabilities assumed					$ 2,522
Working capital adjustments			$ (1,101)

XML

ACQUISITIONS - Purchase Price Allocation Schedule (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 18, 2022	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 523,997	$ 512,595
Targus
Business Acquisition [Line Items]
Cash	$ 112,686
Fair value of deferred payments	6,515
Total consideration	247,546
Cash and cash equivalents	18,810
Accounts receivable	91,039
Prepaid and other assets	90,289
Right-of-use assets	7,665
Property and equipment	8,320
Other intangible assets	89,000
Accounts payable	(54,553)
Accrued expenses and other liabilities	(61,677)
Deferred income taxes	(9,989)
Contingent consideration	(2,212)
Lease liability	(7,665)
Net tangible assets acquired and liabilities assumed	169,027
Goodwill	78,519
Total	$ 247,546
Targus | Share-Based Payment Arrangement, Option
Business Acquisition [Line Items]
Equity interest issued or issuable, number of shares (in shares)	215,876
Business combination, consideration transferred, equity interests issued and issuable	$ 5,749
Targus | Common Stock
Business Acquisition [Line Items]
Equity interest issued or issuable, number of shares (in shares)	227,491
Business acquisition, share price (in dollars per share)	$ 42.11
Business combination, consideration transferred, equity interests issued and issuable	$ 9,580
Targus | Common Stock | Share-Based Payment Arrangement, Option
Business Acquisition [Line Items]
Business combination, consideration transferred, equity interests issued and issuable	15,328
Targus | Other Notes Payable
Business Acquisition [Line Items]
Consideration transferred, liabilities incurred	54,000
Targus | Senior Notes
Business Acquisition [Line Items]
Consideration transferred, liabilities incurred	$ 59,016
Equity interest issued or issuable, number of shares (in shares)	2,400,000
Business acquisition, share price (in dollars per share)	$ 24.59

XML

ACQUISITIONS - Intangible Assets (Details) - Targus $ in Thousands	Oct. 18, 2022 USD ($)
Indefinite-Lived Intangible Assets [Line Items]
Total	$ 89,000
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	9 years
Fair Value	$ 50,000
Internally developed software and other intangibles
Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 4,000
Internally developed software and other intangibles | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	1 year
Internally developed software and other intangibles | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	3 years
Tradenames
Indefinite-Lived Intangible Assets [Line Items]
Tradenames	$ 35,000

XML

ACQUISITIONS - Pro forma (Details) - Targus $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Business Acquisition [Line Items]
Revenues	$ 341,287
Net loss	(7,313)
Net loss attributable to B. Riley Financial, Inc.	(8,179)
Net loss attributable to common shareholders	$ (10,181)

XML

RESTRUCTURING CHARGE - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring charge	$ 93	$ 0

XML

RESTRUCTURING CHARGE - Schedule of changes in accrued restructuring charge (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Reserve [Roll Forward]
Balance, beginning of period	$ 2,335	$ 624
Restructuring charge	93	0
Cash paid	(438)	(27)
Non-cash items	6	2
Balance, end of period	$ 1,996	$ 599

XML

RESTRUCTURING CHARGE - Schedule of summarize the restructuring activities by reportable segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Employee termination	$ 60
Facility closure and consolidation	33
Total restructuring charge	93	$ 0
Wealth Management Segment
Segment Reporting Information [Line Items]
Employee termination	0
Facility closure and consolidation	33
Total restructuring charge	33
Communications
Segment Reporting Information [Line Items]
Employee termination	60
Facility closure and consolidation	0
Total restructuring charge	$ 60

XML

SECURITIES LENDING (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Securities borrowed
Gross amounts recognized	$ 2,942,843	$ 2,343,327
Gross amounts offset in the consolidated balance sheets	0	0
Net amounts included in the consolidated balance sheets	2,942,843	2,343,327
Amounts not offset in the consolidated balance sheets but eligible for offsetting upon counterparty default	2,942,843	2,343,327
Net amounts	0	0
Securities loaned
Gross amounts recognized	2,937,982	2,334,031
Gross amounts offset in the consolidated balance sheets	0	0
Net amounts included in the consolidated balance sheets	2,937,982	2,334,031
Amounts not offset in the consolidated balance sheets but eligible for offsetting upon counterparty default	2,937,982	2,334,031
Net amounts	$ 0	$ 0

XML

ACCOUNTS RECEIVABLE - Schedule of components of accounts receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 116,411	$ 144,120
Investment banking fees, commissions and other receivables	10,766	8,654
Total accounts receivable	127,177	152,774
Allowance for doubtful accounts	(6,324)	(3,664)
Accounts receivable, net	$ 120,853	$ 149,110

XML

ACCOUNTS RECEIVABLE - Schedule of allowance for doubtful accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 3,664	$ 3,658
Add: Additions to reserve	3,173	405
Less: Write-offs	(488)	(960)
Less: Recovery	(25)	0
Balance, end of period	$ 6,324	$ 3,103

XML

PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Funds held in trust account for BRPM 250 to redeem noncontrolling interests in equity of subsidiaries	$ 176,182	$ 174,437
Inventory	113,107	101,675
Equity method investments	41,816	41,298
Prepaid expenses	23,699	17,623
Unbilled receivables	14,857	14,144
Other receivables	67,902	66,403
Other assets	54,309	45,116
Prepaid expenses and other assets	$ 491,872	$ 460,696

XML

GOODWILL AND OTHER INTANGIBLE ASSETS - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 523,997		$ 512,595
Amortization expense	10,473	$ 6,816
Estimated future amortization expense remainder of fiscal year	23,998
Estimated future amortization expense 2023	26,786
Estimated future amortization expense 2024	22,198
Estimated future amortization expense 2025	18,897
Estimated future amortization expense 2026	26,132
Estimated future amortization expense after 2026	$ 87,773

XML

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of carrying amount of goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 512,595
Acquisition of other business	9,701
Other	1,701
Ending Balance	523,997
Capital Markets Segment
Goodwill [Roll Forward]
Beginning Balance	162,018
Acquisition of other business	0
Other	0
Ending Balance	162,018
Wealth Management Segment
Goodwill [Roll Forward]
Beginning Balance	51,195
Acquisition of other business	0
Other	0
Ending Balance	51,195
Auction and Liquidation Segment
Goodwill [Roll Forward]
Beginning Balance	1,975
Ending Balance	1,975
Financial Consulting Segment
Goodwill [Roll Forward]
Beginning Balance	23,680
Acquisition of other business	7,273
Other	36
Ending Balance	30,989
Communications Segment
Goodwill [Roll Forward]
Beginning Balance	193,195
Ending Balance	192,094
Consumer Segment
Goodwill [Roll Forward]
Beginning Balance	75,753
Acquisition of other business	0
Other	2,766
Ending Balance	78,519
All Other
Goodwill [Roll Forward]
Beginning Balance	4,779
Ending Balance	7,207
Auction and Liquidation segment:
Goodwill [Roll Forward]
Acquisition of other business	0
Other	0
Communications
Goodwill [Roll Forward]
Acquisition of other business	0
Other	(1,101)
Other Segments
Goodwill [Roll Forward]
Acquisition of other business	2,428
Other	$ 0

XML

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 320,623	$ 320,142
Accumulated Amortization	(114,839)	(106,320)
Intangibles Net	205,784	213,822
Tradenames	160,276	160,276
Gross Carrying Value	480,899	480,418
Intangibles Net	366,060	374,098
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	270,511	268,253
Accumulated Amortization	(94,872)	(87,049)
Intangibles Net	$ 175,639	181,204
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	1 year
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	16 years
Domain names
Finite-Lived Intangible Assets [Line Items]
Useful Life	7 years
Gross Carrying Value	$ 185	185
Accumulated Amortization	(176)	(169)
Intangibles Net	$ 9	16
Advertising relationships
Finite-Lived Intangible Assets [Line Items]
Useful Life	8 years
Gross Carrying Value	$ 100	100
Accumulated Amortization	(84)	(81)
Intangibles Net	16	19
Internally developed software and other intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	28,295	28,295
Accumulated Amortization	(14,522)	(12,714)
Intangibles Net	$ 13,773	15,581
Internally developed software and other intangibles | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	6 months
Internally developed software and other intangibles | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 21,532	23,309
Accumulated Amortization	(5,185)	(6,307)
Intangibles Net	$ 16,347	$ 17,002
Trademarks | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	3 years
Trademarks | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	10 years

XML

NOTES PAYABLE (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Interest expense	$ 47,561,000	$ 30,436,000
Other Notes Payable | Clearing Organization
Debt Instrument [Line Items]
Interest expense	174,000	232,000
Notes payable outstanding	19,882,000		$ 25,263,000
Accrued interest, percentage			2.00%
Wells Fargo Bank, National Association
Debt Instrument [Line Items]
Line of credit, outstanding	0		$ 0
Credit facility	0
Wells Fargo Bank, National Association | Asset Based Credit Facility
Debt Instrument [Line Items]
Borrowing capacity credit facility	200,000,000
Interest expense	$ 18,000	$ 108,000
Wells Fargo Bank, National Association | Asset Based Credit Facility | Minimum
Debt Instrument [Line Items]
Credit facility success fees, percentage	1.00%
Funding fees, percentage	0.05%
Wells Fargo Bank, National Association | Asset Based Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.25%
Wells Fargo Bank, National Association | Asset Based Credit Facility | Maximum
Debt Instrument [Line Items]
Credit facility success fees, percentage	10.00%
Funding fees, percentage	0.20%
Wells Fargo Bank, National Association | Asset Based Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3.25%

XML

TERM LOANS AND REVOLVING CREDIT FACILITY (Details) - USD ($)						3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended	21 Months Ended	27 Months Ended	33 Months Ended	51 Months Ended
	Oct. 18, 2022	Sep. 23, 2022	Aug. 16, 2022	Jun. 21, 2022	Jun. 23, 2021	Jun. 30, 2027	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2022	Mar. 31, 2025	Jun. 30, 2027	Dec. 31, 2026	Sep. 30, 2027	Jan. 12, 2023	Nov. 10, 2022	Sep. 09, 2022	Dec. 17, 2021	Dec. 19, 2018
Term Loans and Revolving Credit Facility (Details) [Line Items]
Interest expense							$ 47,561,000	$ 30,436,000
Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Senior notes payable																		$ 52,500,000
Revolving Credit Facility
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, term					4 years
Borrowing capacity credit facility					$ 200,000,000
Outstanding balance							283,739,000				$ 286,962,000
Amortization of deferred debt issuance costs							$ 150,000	143,000
Interest rate at period end							9.69%				9.23%
Operating value																			$ 135,000,000
Debt instrument, covenant, net asset value																			1,100,000,000
Unamortized debt issuance costs							$ 5,011,000				$ 5,538,000
Term loan interest							$ 7,300,000
Interest rate							9.69%				9.23%
Revolving credit facility							$ 77,000,000				$ 74,700,000
Interest on revolving							1,956,000	1,100,000
BRPAC Credit Agreement | United Online Software Development (India) Private Limited
Term Loans and Revolving Credit Facility (Details) [Line Items]
Covenant, pledged asset percentage																				65.00%
BRPAC Credit Agreement | MagicJack VocalTec LTD
Term Loans and Revolving Credit Facility (Details) [Line Items]
Covenant, pledged asset percentage																				65.00%
BRPAC Credit Agreement | Credit Parties | United Online Software Development (India) Private Limited
Term Loans and Revolving Credit Facility (Details) [Line Items]
Covenant, pledged asset percentage																				100.00%
BRPAC Credit Agreement | BRPI Acquisition Co LLC | City National Bank
Term Loans and Revolving Credit Facility (Details) [Line Items]
Amortization of deferred debt issuance costs							627,000				701,000
Forecast | BRPAC Credit Agreement
Term Loans and Revolving Credit Facility (Details) [Line Items]
Quarterly installments for term loan						$ 2,813,000			$ 4,688,000					$ 3,750,000
Targus Credit Agreement | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, term	5 years
Aggregate principal amount	$ 28,000,000
Outstanding balance							24,678,000				26,021,000
Debt issuance costs, gross							$ 522,000				$ 580,000
Interest rate							8.66%				8.43%
Targus Credit Agreement | Revolving Credit Facility
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, term	5 years
Borrowing capacity credit facility	$ 85,000,000
Targus Credit Agreement | Revolving Credit Facility | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Outstanding balance							$ 62,463,000				$ 52,978,000
Interest expense							1,689,000
Amount of unused commitment fees							$ 173,000
Targus Credit Agreement | Forecast | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Quarterly installments for term loan															$ 1,400,000
Targus Credit Agreement | Minimum | Revolving Credit Facility | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Interest rate							6.66%				6.03%
Targus Credit Agreement | Maximum | Revolving Credit Facility | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Interest rate							9.75%				9.25%
Second Amendment
Term Loans and Revolving Credit Facility (Details) [Line Items]
Aggregate principal amount																			$ 100,000,000
Term Loan
Term Loans and Revolving Credit Facility (Details) [Line Items]
Amortization of deferred debt issuance costs							$ 509,000
Interest rate at period end							9.59%				9.23%
Term loan facility amortize in equal installments percentage							1.25%
Interest rate							9.59%				9.23%
Interest on the term loan							$ 4,102,000
Term Loan | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, term		5 years
Aggregate principal amount		$ 148,200,000					49,890,000									$ 78,296,000
Outstanding balance							184,358,000				$ 118,437,000
Debt issuance costs, gross							3,837,000				$ 2,377,000
Interest expense							6,430,000
Amortization of deferred debt issuance costs							$ 1,744,000
Interest rate at period end							11.40%				11.01%
Interest rate							11.40%				11.01%
Term Loan | Revolving Credit Facility
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, term					4 years
Amortization of deferred debt issuance costs							$ 527,000
Secured loan					$ 80,000,000
Term Loan | BRPAC Credit Agreement | BRPI Acquisition Co LLC
Term Loans and Revolving Credit Facility (Details) [Line Items]
Outstanding balance							64,061,000				$ 68,674,000
Unamortized debt issuance costs							74,000	72,000
Interest expense							$ 1,443,000	$ 502,000
Term Loan | Amended BRPAC Credit Agreement | BRPI Acquisition Co LLC
Term Loans and Revolving Credit Facility (Details) [Line Items]
Interest rate at period end							8.23%				7.65%
Interest rate							8.23%				7.65%
Term Loan | Forecast | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Quarterly installments for term loan												$ 3,750,000
Lingo Credit Agreement | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Interest expense							$ 1,561,000
Amortization of deferred debt issuance costs							75,000
Lingo Credit Agreement | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, term			5 years
Aggregate principal amount																	$ 20,500,000	$ 7,500,000
Senior notes payable			$ 45,000,000														$ 73,000,000
Outstanding balance							69,778,000				$ 71,985,000
Debt issuance costs, gross							$ 940,000				$ 1,016,000
Interest rate at period end							8.48%				7.89%
Interest rate							8.48%				7.89%
Lingo Credit Agreement | Forecast | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Quarterly installments for term loan									$ 2,281,000	$ 2,738,000			$ 3,650,000
Fourth Amendment | BRPAC Credit Agreement
Term Loans and Revolving Credit Facility (Details) [Line Items]
Aggregate principal amount				$ 75,000,000
Secured Overnight Financing Rate (SOFR)
Term Loans and Revolving Credit Facility (Details) [Line Items]
Interest bears							4.50%
Secured Overnight Financing Rate (SOFR) | Minimum | BRPAC Credit Agreement | BRPI Acquisition Co LLC
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate				2.75%
Secured Overnight Financing Rate (SOFR) | Targus Credit Agreement | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate	3.75%
Secured Overnight Financing Rate (SOFR) | Targus Credit Agreement | Minimum | Revolving Credit Facility | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate	2.00%
Secured Overnight Financing Rate (SOFR) | Targus Credit Agreement | Maximum | Revolving Credit Facility | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate	2.75%
Secured Overnight Financing Rate (SOFR) | Term Loan | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate		6.50%
Secured Overnight Financing Rate (SOFR) | Lingo Credit Agreement | Minimum | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate			3.00%
Secured Overnight Financing Rate (SOFR) | Lingo Credit Agreement | Maximum | Secured Debt | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate			3.75%
Secured Overnight Financing Rate (SOFR) | Fourth Amendment | Maximum | BRPAC Credit Agreement
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate				3.50%
Base Rate | Targus Credit Agreement | Minimum | Revolving Credit Facility | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Base Rate | Targus Credit Agreement | Maximum | Revolving Credit Facility | Line of Credit
Term Loans and Revolving Credit Facility (Details) [Line Items]
Debt instrument, basis spread on variable rate	1.75%

XML

SENIOR NOTES PAYABLE - Schedule of senior notes payable, net (Details) - Senior Notes - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Senior notes payable	$ 1,739,891	$ 1,739,891
Less: Unamortized debt issuance costs	(16,914)	(18,140)
Senior notes payable, net	1,722,977	1,721,751
6.750% Senior notes due May 31, 2024
Debt Instrument [Line Items]
Senior notes payable	$ 199,232	199,232
Interest rate	6.75%
6.500% Senior notes due September 30, 2026
Debt Instrument [Line Items]
Senior notes payable	$ 180,532	180,532
Interest rate	6.50%
6.375% Senior notes due February 28, 2025
Debt Instrument [Line Items]
Senior notes payable	$ 146,432	146,432
Interest rate	6.375%
6.000% Senior notes due January 31, 2028
Debt Instrument [Line Items]
Senior notes payable	$ 266,058	266,058
Interest rate	6.00%
5.500% Senior notes due March 31, 2026
Debt Instrument [Line Items]
Senior notes payable	$ 217,440	217,440
Interest rate	5.50%
5.250% Senior notes due August 31, 2028
Debt Instrument [Line Items]
Senior notes payable	$ 405,483	405,483
Interest rate	5.25%
5.000% Senior notes due December 31, 2026
Debt Instrument [Line Items]
Senior notes payable	$ 324,714	$ 324,714
Interest rate	5.00%

XML

SENIOR NOTES PAYABLE - Additional information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jan. 05, 2022
Debt Instrument [Line Items]
Senior notes outstanding, total	$ 1,722,977,000		$ 1,721,751,000
Unamortized debt issuance expenses	16,914,000		$ 18,140,000
Senior Notes
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 0	$ 20,073,000
Debt, weighted average interest rate	5.75%		5.75%
Interest expense on senior notes total	$ 26,227,000	$ 24,409,000
Senior notes payable	1,739,891,000		$ 1,739,891,000
Senior Notes | Sales Agreement Prospectus
Debt Instrument [Line Items]
Outstanding notes payable	$ 70,000		$ 70,000
Senior Notes | Sales Agreement Prospectus | Maximum
Debt Instrument [Line Items]
Senior notes payable				$ 250,000,000

XML

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued payroll and related expenses	$ 60,141	$ 86,798
Dividends payable	18,360	33,923
Income taxes payable	12,100	14,760
Other tax liabilities	19,617	23,426
Contingent consideration	28,884	31,046
Accrued expenses	79,520	68,180
Other liabilities	44,713	64,841
Accrued expenses and other liabilities	$ 263,335	$ 322,974

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of revenues from contracts with customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	$ 293,134	$ 199,701
Interest income - Loans and securities lending	77,186	61,426
Trading (loss) gain on investments	8,292	(30,216)
Fair value adjustment on loans	43,276	10,938
Other	10,202	4,991
Total revenues	432,090	246,840
Capital Markets Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	49,031	56,118
Interest income - Loans and securities lending	77,186	61,426
Trading (loss) gain on investments	7,020	(30,738)
Fair value adjustment on loans	43,276	10,938
Other	8,898	5,105
Total revenues	185,411	102,849
Wealth Management Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	47,238	77,071
Interest income - Loans and securities lending	0	0
Trading (loss) gain on investments	1,272	522
Fair value adjustment on loans	0	0
Other	1,304	(114)
Total revenues	49,814	77,479
Auction and Liquidation Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	5,660	3,355
Interest income - Loans and securities lending	0	0
Trading (loss) gain on investments	0	0
Fair value adjustment on loans	0	0
Other	0	0
Total revenues	5,660	3,355
Financial Consulting Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	25,010	25,936
Interest income - Loans and securities lending	0	0
Trading (loss) gain on investments	0	0
Fair value adjustment on loans	0	0
Other	0
Total revenues	25,010	25,936
Communications Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	86,919	31,965
Interest income - Loans and securities lending	0	0
Trading (loss) gain on investments	0	0
Fair value adjustment on loans	0	0
Other	0	0
Total revenues	86,919	31,965
Consumer Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	70,003	4,557
Interest income - Loans and securities lending	0	0
Trading (loss) gain on investments	0	0
Fair value adjustment on loans	0	0
Other	0	0
Total revenues	70,003	4,557
Other Segments
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	9,273	699
Total revenues	9,273	699
Corporate finance, consulting and investment banking fees
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	53,664	58,643
Corporate finance, consulting and investment banking fees | Capital Markets Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	39,149	41,673
Corporate finance, consulting and investment banking fees | Wealth Management Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Corporate finance, consulting and investment banking fees | Auction and Liquidation Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Corporate finance, consulting and investment banking fees | Financial Consulting Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	14,515	16,970
Corporate finance, consulting and investment banking fees | Communications Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Corporate finance, consulting and investment banking fees | Consumer Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Corporate finance, consulting and investment banking fees | Other Segments
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Wealth and asset management fees
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	43,974	66,622
Wealth and asset management fees | Capital Markets Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	664	2,400
Wealth and asset management fees | Wealth Management Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	43,310	64,222
Wealth and asset management fees | Auction and Liquidation Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Wealth and asset management fees | Financial Consulting Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Wealth and asset management fees | Communications Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Wealth and asset management fees | Consumer Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Wealth and asset management fees | Other Segments
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Commissions, fees and reimbursed expenses
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	29,085	37,215
Commissions, fees and reimbursed expenses | Capital Markets Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	9,218	12,045
Commissions, fees and reimbursed expenses | Wealth Management Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	3,928	12,849
Commissions, fees and reimbursed expenses | Auction and Liquidation Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	5,444	3,355
Commissions, fees and reimbursed expenses | Financial Consulting Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	10,495	8,966
Commissions, fees and reimbursed expenses | Communications Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Commissions, fees and reimbursed expenses | Consumer Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Commissions, fees and reimbursed expenses | Other Segments
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Subscription services
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	83,008	27,813
Subscription services | Capital Markets Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Subscription services | Wealth Management Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Subscription services | Auction and Liquidation Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Subscription services | Financial Consulting Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Subscription services | Communications Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	83,008	27,813
Subscription services | Consumer Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Subscription services | Other Segments
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Sale of goods
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	67,777	1,878
Sale of goods | Capital Markets Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Sale of goods | Wealth Management Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Sale of goods | Auction and Liquidation Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	216	0
Sale of goods | Financial Consulting Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Sale of goods | Communications Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	1,867	1,878
Sale of goods | Consumer Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	65,694	0
Advertising, licensing and other
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	15,626	7,530
Advertising, licensing and other | Capital Markets Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Advertising, licensing and other | Wealth Management Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Advertising, licensing and other | Auction and Liquidation Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Advertising, licensing and other | Financial Consulting Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Advertising, licensing and other | Communications Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	2,044	2,274
Advertising, licensing and other | Consumer Segment
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	4,309	4,557
Advertising, licensing and other | Other Segments
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	9,273	699
Product | Other Segments
Revenue from External Customer [Line Items]
Total revenues from contracts with customers	0	0
Interest Income Loans And Securities Lending | Other Segments
Revenue from External Customer [Line Items]
Interest income - Loans and securities lending	0	0
Trading Gains losses On Investments | Other Segments
Revenue from External Customer [Line Items]
Trading (loss) gain on investments	0	0
Fair Value Adjustment On Loans | Other Segments
Revenue from External Customer [Line Items]
Fair value adjustment on loans	0	0
Other | Other Segments
Revenue from External Customer [Line Items]
Other	$ 0	$ 0

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REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 120,853		$ 149,110
Unbilled receivables	14,857		14,144
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Recognized revenue	22,502	$ 14,939
Capitalized costs	7,190		5,990
Capitalized cost, recognized	1,015	$ 915
Service and Fee
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	84,019		$ 85,441
Service and Fee | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 54,839
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Service and Fee | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 13,350
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Service and Fee | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 7,449
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Service and Fee | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 3,552
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Service and Fee | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 1,780
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Service and Fee | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 3,049
Revenue, remaining performance obligation, expected timing of satisfaction, period

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	32.40%	(28.70%)
Federal net operating loss carryforwards			$ 55,349
State net operating loss carryforwards			$ 46,981
Deferred tax assets valuation allowance	$ 66,308

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EARNINGS PER SHARE - Additional information (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Number of antidilutive securities were excluded from the computation of diluted net income (loss) per share (in shares)	1,999,273	1,350,062

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EARNINGS PER SHARE - Schedule of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income (loss) attributable to B. Riley Financial, Inc.	$ 17,155	$ (10,062)
Preferred stock dividends	(2,012)	(2,002)
Net income (loss) available to common shareholders	15,143	(12,064)
Net income (loss) available to common shareholders	$ 15,143	$ (12,064)
Weighted average common shares outstanding:
Basic (in shares)	28,585,337	27,855,033
Effect of dilutive potential common shares:
Restricted stock units and warrants (in shares)	928,098	0
Diluted (in shares)	29,513,435	27,855,033
Basic (loss) income per common share (in dollars per share)	$ 0.53	$ (0.43)
Diluted (loss) income per common share (in dollars per share)	$ 0.51	$ (0.43)

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COMMITMENTS AND CONTINGENCIES (Details) € in Thousands, $ in Thousands					3 Months Ended	12 Months Ended
	Jan. 20, 2022 USD ($)	Dec. 22, 2021 EUR (€)	Aug. 26, 2020 USD ($)	Aug. 10, 2020 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)
Payment Guarantee
Related Party Transaction [Line Items]
Guarantor obligations, current carrying value						$ 100
Guarantor obligation, decrease						$ 10
Babcock & Wilcox Enterprises, Inc.
Related Party Transaction [Line Items]
Services fees					$ 750
Indemnity amount		€ 30,000		$ 29,970
Indemnity rider received			$ 600
Payments for other fees	$ 1,694
Babcock & Wilcox Enterprises, Inc. | Guarantees
Related Party Transaction [Line Items]
Services fees					$ 935
Babcock & Wilcox Enterprises, Inc. | Maximum | Guarantees
Related Party Transaction [Line Items]
Contractual obligation							$ 110,000

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SHARE-BASED PAYMENTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Oct. 31, 2022	Oct. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 13,746,000	$ 17,013,000
Repurchase shares of common stock	$ 53,803,000
Shares authorized (in shares)				50,000,000
Preferred stock, shares issued (in shares)	4,563		4,545
Preferred stock, shares outstanding (in shares)	4,563		4,545
Preferred stock, liquidation preference	$ 114,082,000		$ 113,615,000
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount					$ 50,000,000
Repurchase shares of common stock (in shares)	1,452,831
Repurchase shares of common stock	$ 53,688,000	$ 0
Shares repurchased, average price per share (in dollars per share)	$ 36.95
Depositary Shares for Series A Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	0	19
Dividends per share (in dollars per share)	$ 0.4296875	$ 0.4296875
Series A Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, shares issued (in shares)			2,834
Preferred stock, shares outstanding (in shares)	2,834
Preferred stock, liquidation preference	$ 70,854,000		$ 70,854,000
Depositary Shares for Series B Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	18	4
Dividends per share (in dollars per share)	$ 0.4609375	$ 0.4609375
Series B Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, shares issued (in shares)	1,729		1,710
Preferred stock, shares outstanding (in shares)	1,729		1,710
Preferred stock, liquidation preference	$ 43,228,000		$ 42,761,000
2021 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 13,312,000	$ 16,860,000
2021 Stock Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	502,824	161,559
Grant date fair value	$ 19,338,000	$ 11,863,000
2021 Stock Incentive Plan | Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
2021 Stock Incentive Plan | Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
2021 Stock Incentive Plan | Restricted Stock Units, Performance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		65,000
Grant date fair value		$ 2,329,000
2021 Stock Incentive Plan | Restricted Stock Units, Performance Based | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
2021 Stock Incentive Plan | Restricted Stock Units, Performance Based | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 298,000	$ 153,000
Shares reserved for issuance (in shares)			362,986

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NET CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
B. Riley Securities (“BRS”)
Broker-Dealer, Net Capital Requirement [Line Items]
Net capital	$ 146,827	$ 175,503
Excess capital	142,696	169,458
Required minimum net capital		6,045
B. Riley Wealth Management (“BRWM”)
Broker-Dealer, Net Capital Requirement [Line Items]
Net capital	4,131	11,144
Excess capital	11,105	8,615
Required minimum net capital		$ 2,529
National Securities Corporation (“NSC”)
Broker-Dealer, Net Capital Requirement [Line Items]
Net capital	8,780
Excess capital	$ 2,325

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RELATED PARTY TRANSACTIONS (Details) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 19, 2022 $ / shares shares	May 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) parties	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Feb. 24, 2023	Oct. 18, 2022 USD ($)	Apr. 30, 2022	Apr. 25, 2022 USD ($)	Mar. 09, 2022 USD ($)	Jan. 03, 2022 USD ($)	Dec. 31, 2021 $ / shares	Nov. 01, 2021 USD ($)	Nov. 30, 2020
Related Party Transaction [Line Items]
Due from related party				$ 372		$ 1,081
Fair value				772,085		701,652
Sold price per unit (in dollars per share) | $ / shares													$ 10.00
Underwriting and financial advisory and other fees				784	$ 1,880
Lingo
Related Party Transaction [Line Items]
Financing receivable converted to equity		$ 17,500
Business combination, step acquisition, equity interest in acquiree		80.00%					20.00%		40.00%						40.00%
Business acquisition, percentage of voting interests acquired		20.00%					20.00%
Subsequent acquisition, percentage		80.00%					100.00%
Targus
Related Party Transaction [Line Items]
Total purchase consideration								$ 247,546
Common Class A | FaZeClan Holdings, Inc
Related Party Transaction [Line Items]
Sold price per unit (in dollars per share) | $ / shares	$ 10.00
B. Riley Financial | Common Class A | FaZeClan Holdings, Inc
Related Party Transaction [Line Items]
Consummated units (in shares) | shares	5,342,500
California Natural Resources Group, LLC
Related Party Transaction [Line Items]
Fair value											$ 10,000			$ 34,393
Interest rate														10.00%
California Natural Resources Group, LLC | Indirect Guarantee of Indebtedness
Related Party Transaction [Line Items]
Debt and lease obligation												$ 10,375
Babcock & Wilcox Enterprises, Inc.
Related Party Transaction [Line Items]
Underwriting and financial advisory fees				$ 0	53
Service agreement, termination period				30 days
Services fees				$ 750
Performance fee			$ 1,000
The Arena Group Holdings, Inc.
Related Party Transaction [Line Items]
Interest on loan payable percentage				10.00%
Revenue from related parties				$ 0	2,021
Investee
Related Party Transaction [Line Items]
Fair value										$ 10,000
Whitehawk Capital Partners, L.P.
Related Party Transaction [Line Items]
Management fees				1,142	$ 1,079
Maven
Related Party Transaction [Line Items]
Loans receivable fair value				97,062		98,729
Incentive Fee | FaZeClan Holdings, Inc
Related Party Transaction [Line Items]
Revenue from related parties						41,885
Underwriting and Financial Advisory Fee | Investee
Related Party Transaction [Line Items]
Revenue from related parties						$ 9,632
Loan Receivable Sold | Management
Related Party Transaction [Line Items]
Financing receivable sold				$ 7,600
Number of related parties | parties				2
Loan Receivable Sold | Management | BRC Partners Opportunity Fund, LP
Related Party Transaction [Line Items]
Financing receivable sold				$ 3,519
Loan Receivable Sold | Management | 272 Capital L.P
Related Party Transaction [Line Items]
Financing receivable sold				$ 4,081
BRC Partners Opportunity Fund, LP | Management
Related Party Transaction [Line Items]
Ownership, percentage				70.40%
BRC Partners Opportunity Fund, LP | Management | Co-Chief Executive Officer
Related Party Transaction [Line Items]
Ownership, percentage				41.00%
272 Capital L.P | Management
Related Party Transaction [Line Items]
Ownership, percentage				13.60%

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BUSINESS SEGMENTS - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	6

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BUSINESS SEGMENTS - Schedule of reportable segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Services and fees	$ 235,559	$ 202,814
Trading income (loss) and fair value adjustments on loans	51,568	(19,278)
Interest income - Loans and securities lending	77,186	61,426
Sale of goods	67,777	1,878
Revenues	432,090	246,840
Direct cost of services	(54,397)	(11,651)
Cost of goods sold	(47,626)	(2,251)
Selling, general and administrative expenses	(212,627)	(175,199)
Interest expense - Securities lending and loan participations sold	(32,424)	(11,766)
Depreciation and amortization	(13,077)	(7,848)
Restructuring charge	(93)	0
Operating income	84,923	45,973
Interest income	2,574	67
Dividend income	13,204	7,861
Realized and unrealized gains (losses) on investments	(28,442)	(49,112)
Change in fair value of financial instruments and other	(209)	5,981
(Loss) income from equity investments	(10)	6,775
Interest expense	(47,561)	(30,436)
Income (loss) before income taxes	24,479	(12,891)
(Provision for) benefit from income taxes	(7,919)	3,695
Net income (loss)	16,560	(9,196)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(595)	866
Net income (loss) attributable to B. Riley Financial, Inc.	17,155	(10,062)
Preferred stock dividends	2,012	2,002
Net income (loss) available to common shareholders	15,143	(12,064)
Net income (loss) available to common shareholders	15,143	(12,064)
Operating Segments
Segment Reporting Information [Line Items]
Operating income	103,805	61,276
Corporate And Reconciling Items
Segment Reporting Information [Line Items]
Services and fees	9,273	699
Direct cost of services	(6,536)	0
Corporate and other expenses	(21,619)	(16,002)
Capital Markets Segment
Segment Reporting Information [Line Items]
Interest income - Loans and securities lending	77,186	61,426
Revenues	185,411	102,849
Capital Markets Segment | Operating Segments
Segment Reporting Information [Line Items]
Services and fees	57,929	61,223
Trading income (loss) and fair value adjustments on loans	50,296	(19,800)
Interest income - Loans and securities lending	77,186	61,426
Revenues	185,411	102,849
Selling, general and administrative expenses	(65,711)	(34,117)
Interest expense - Securities lending and loan participations sold	(32,424)	(11,766)
Depreciation and amortization	(1,256)	(1,893)
Operating income	86,020	55,073
Wealth Management Segment
Segment Reporting Information [Line Items]
Interest income - Loans and securities lending	0	0
Revenues	49,814	77,479
Wealth Management Segment | Operating Segments
Segment Reporting Information [Line Items]
Services and fees	48,542	76,957
Trading income (loss) and fair value adjustments on loans	1,272	522
Revenues	49,814	77,479
Selling, general and administrative expenses	(47,322)	(85,742)
Depreciation and amortization	(1,086)	(1,833)
Restructuring charge	(33)	0
Operating income	1,373	(10,096)
Auction and Liquidation Segment
Segment Reporting Information [Line Items]
Interest income - Loans and securities lending	0	0
Revenues	5,660	3,355
Auction and Liquidation Segment | Operating Segments
Segment Reporting Information [Line Items]
Services and fees	5,444	3,355
Sale of goods	216	0
Revenues	5,660	3,355
Direct cost of services	(3,128)	(2,335)
Cost of goods sold	(52)	0
Selling, general and administrative expenses	(2,280)	(1,820)
Operating income	200	(800)
Financial Consulting Segment
Segment Reporting Information [Line Items]
Interest income - Loans and securities lending	0	0
Revenues	25,010	25,936
Financial Consulting Segment | Operating Segments
Segment Reporting Information [Line Items]
Services and fees	25,010	25,936
Selling, general and administrative expenses	(21,149)	(20,943)
Depreciation and amortization	(78)	(81)
Operating income	3,783	4,912
Communications Segment
Segment Reporting Information [Line Items]
Interest income - Loans and securities lending	0	0
Revenues	86,919	31,965
Communications Segment | Operating Segments
Segment Reporting Information [Line Items]
Services and fees	85,052	30,087
Sale of goods	1,867	1,878
Revenues	86,919	31,965
Direct cost of services	(44,733)	(9,316)
Cost of goods sold	(2,168)	(2,251)
Selling, general and administrative expenses	(22,544)	(8,245)
Depreciation and amortization	(6,631)	(3,184)
Restructuring charge	(60)	0
Operating income	10,783	8,969
Consumer Segment
Segment Reporting Information [Line Items]
Interest income - Loans and securities lending	0	0
Revenues	70,003	4,557
Consumer Segment | Operating Segments
Segment Reporting Information [Line Items]
Services and fees	4,309	4,557
Sale of goods	65,694	0
Revenues	70,003	4,557
Cost of goods sold	(45,406)	0
Selling, general and administrative expenses	(20,112)	(756)
Depreciation and amortization	(2,839)	(583)
Operating income	$ 1,646	$ 3,218

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BUSINESS SEGMENTS - Schedule of revenues by geographical area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Services and fees	$ 235,559	$ 202,814
Trading income (loss) and fair value adjustments on loans	51,568	(19,278)
Sale of goods	67,777	1,878
Interest income - Loans and securities lending	77,186	61,426
Revenues	432,090	246,840
North America
Segment Reporting Information [Line Items]
Services and fees	234,930	200,861
Trading income (loss) and fair value adjustments on loans	51,568	(19,278)
Sale of goods	37,947	1,878
Interest income - Loans and securities lending	77,186	61,426
Revenues	401,631	244,887
Europe
Segment Reporting Information [Line Items]
Services and fees	629	1,953
Australia
Segment Reporting Information [Line Items]
Sale of goods	3,459	0
Revenues	3,459	0
Europe, Middle East, and Africa
Segment Reporting Information [Line Items]
Sale of goods	17,428	0
Revenues	18,057	1,953
Asia
Segment Reporting Information [Line Items]
Sale of goods	6,224	0
Revenues	6,224	0
Latin America
Segment Reporting Information [Line Items]
Sale of goods	2,719	0
Revenues	$ 2,719	$ 0

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BUSINESS SEGMENTS - Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Long-Lived Assets	$ 27,577	$ 27,141
North America
Business Acquisition [Line Items]
Long-Lived Assets	26,770	26,276
Europe
Business Acquisition [Line Items]
Long-Lived Assets	532	577
Asia Pacific
Business Acquisition [Line Items]
Long-Lived Assets	165	162
Australia
Business Acquisition [Line Items]
Long-Lived Assets	$ 110	$ 126