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.