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BUSINESS SEGMENTS (Tables) | 6 Months Ended
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Jun. 30, 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 June 30, |  | Six Months Ended June 30, |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |
Capital Markets segment: |  |  | (As Restated) |  |  |  | (As Restated) |  |  |  |
Revenues - Services and fees | $ | 44,961 |  |  | $ | 58,184 |  |  | $ | 102,890 |  |  | $ | 119,406 |  |  |  |  |
Trading income (loss) and fair value adjustments on loans | 41,892 |  |  | (119,292) |  |  | 92,188 |  |  | (139,091) |  |  |  |  |
Interest income - Loans and securities lending | 75,199 |  |  | 62,399 |  |  | 152,385 |  |  | 123,825 |  |  |  |  |
Total revenues | 162,052 |  |  | 1,291 |  |  | 347,463 |  |  | 104,140 |  |  |  |  |
Selling, general and administrative expenses | (45,870) |  |  | (45,865) |  |  | (111,581) |  |  | (79,982) |  |  |  |  |
Impairment of tradenames | (1,733) |  |  | — |  |  | (1,733) |  |  | — |  |  |  |  |
Interest expense - Securities lending and loan participations sold | (35,780) |  |  | (14,544) |  |  | (68,204) |  |  | (26,310) |  |  |  |  |
Depreciation and amortization | (993) |  |  | (2,204) |  |  | (2,249) |  |  | (4,097) |  |  |  |  |
Segment income (loss) | 77,676 |  |  | (61,322) |  |  | 163,696 |  |  | (6,249) |  |  |  |  |
Wealth Management segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 47,243 |  |  | 60,860 |  |  | 95,785 |  |  | 137,818 |  |  |  |  |
Trading income and fair value adjustments on loans | 473 |  |  | 1,529 |  |  | 1,745 |  |  | 2,050 |  |  |  |  |
Total revenues | 47,716 |  |  | 62,389 |  |  | 97,530 |  |  | 139,868 |  |  |  |  |
Selling, general and administrative expenses | (47,964) |  |  | (68,394) |  |  | (95,286) |  |  | (154,136) |  |  |  |  |
Restructuring charge | (28) |  |  | — |  |  | (61) |  |  | — |  |  |  |  |
Depreciation and amortization | (1,082) |  |  | (1,308) |  |  | (2,168) |  |  | (3,141) |  |  |  |  |
Segment (loss) income | (1,358) |  |  | (7,313) |  |  | 15 |  |  | (17,409) |  |  |  |  |
Auction and Liquidation segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 8,885 |  |  | 2,488 |  |  | 14,329 |  |  | 5,843 |  |  |  |  |
Revenues - Sale of goods | 1,676 |  |  | — |  |  | 1,892 |  |  | — |  |  |  |  |
Interest Income - Loan | — |  |  | 1,436 |  |  | — |  |  | 1,436 |  |  |  |  |
Total revenues | 10,561 |  |  | 3,924 |  |  | 16,221 |  |  | 7,279 |  |  |  |  |
Direct cost of services | (3,453) |  |  | (1,296) |  |  | (6,581) |  |  | (3,631) |  |  |  |  |
Cost of goods sold | (618) |  |  | — |  |  | (670) |  |  | — |  |  |  |  |
Selling, general and administrative expenses | (2,302) |  |  | (2,177) |  |  | (4,582) |  |  | (3,997) |  |  |  |  |
Segment income (loss) | 4,188 |  |  | 451 |  |  | 4,388 |  |  | (349) |  |  |  |  |
Financial Consulting segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 31,212 |  |  | 24,310 |  |  | 56,222 |  |  | 50,246 |  |  |  |  |
Selling, general and administrative expenses | (22,791) |  |  | (19,948) |  |  | (43,940) |  |  | (40,891) |  |  |  |  |
Depreciation and amortization | (103) |  |  | (78) |  |  | (181) |  |  | (159) |  |  |  |  |
Segment income | 8,318 |  |  | 4,284 |  |  | 12,101 |  |  | 9,196 |  |  |  |  |
Communications segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 83,316 |  |  | 40,035 |  |  | 168,368 |  |  | 70,122 |  |  |  |  |
Revenues - Sale of goods | 1,640 |  |  | 1,887 |  |  | 3,507 |  |  | 3,765 |  |  |  |  |
Total revenues | 84,956 |  |  | 41,922 |  |  | 171,875 |  |  | 73,887 |  |  |  |  |
Direct cost of services | (46,085) |  |  | (16,489) |  |  | (90,818) |  |  | (25,805) |  |  |  |  |
Cost of goods sold | (2,046) |  |  | (1,994) |  |  | (4,214) |  |  | (4,245) |  |  |  |  |
Selling, general and administrative expenses | (20,241) |  |  | (12,176) |  |  | (42,785) |  |  | (20,421) |  |  |  |  |
Restructuring charge | (197) |  |  | — |  |  | (257) |  |  | — |  |  |  |  |
Depreciation and amortization | (6,405) |  |  | (3,555) |  |  | (13,036) |  |  | (6,739) |  |  |  |  |
Segment income | 9,982 |  |  | 7,708 |  |  | 20,765 |  |  | 16,677 |  |  |  |  |
Consumer segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 5,041 |  |  | 5,174 |  |  | 9,350 |  |  | 9,731 |  |  |  |  |
Revenues - Sale of goods | 55,071 |  |  | — |  |  | 120,765 |  |  | — |  |  |  |  |
Total revenues | 60,112 |  |  | 5,174 |  |  | 130,115 |  |  | 9,731 |  |  |  |  |
Cost of goods sold | (37,653) |  |  | — |  |  | (83,059) |  |  | — |  |  |  |  |
Selling, general and administrative expenses | (17,331) |  |  | (818) |  |  | (37,443) |  |  | (1,574) |  |  |  |  |
Depreciation and amortization | (2,639) |  |  | (583) |  |  | (5,478) |  |  | (1,166) |  |  |  |  |
Restructuring charge | (403) |  |  | — |  |  | (403) |  |  | — |  |  |  |  |
Segment income | 2,086 |  |  | 3,773 |  |  | 3,732 |  |  | 6,991 |  |  |  |  |
Consolidated operating income (loss) from reportable segments | 100,892 |  |  | (52,419) |  |  | 204,697 |  |  | 8,857 |  |  |  |  |
All Other: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 9,669 |  |  | 611 |  |  | 18,942 |  |  | 1,310 |  |  |  |  |
Direct cost of services | (6,403) |  |  | — |  |  | (12,939) |  |  | — |  |  |  |  |
Corporate and other expenses | (21,164) |  |  | (10,030) |  |  | (42,783) |  |  | (26,032) |  |  |  |  |
Interest income | 701 |  |  | 500 |  |  | 3,275 |  |  | 567 |  |  |  |  |
Dividend income | 9,555 |  |  | 9,243 |  |  | 22,759 |  |  | 17,104 |  |  |  |  |
Realized and unrealized gains (losses) on investments | 18,843 |  |  | (106,164) |  |  | (9,599) |  |  | (155,276) |  |  |  |  |
Change in fair value of financial instruments and other | 381 |  |  | 4,321 |  |  | 172 |  |  | 10,302 |  |  |  |  |
Income (loss) on equity investments | 143 |  |  | (3,399) |  |  | 133 |  |  | 3,376 |  |  |  |  |
Interest expense | (47,332) |  |  | (31,764) |  |  | (94,893) |  |  | (62,200) |  |  |  |  |
Income (loss) before income taxes | 65,285 |  |  | (189,101) |  |  | 89,764 |  |  | (201,992) |  |  |  |  |
(Provision for) benefit from income taxes | (21,504) |  |  | 52,513 |  |  | (29,423) |  |  | 56,208 |  |  |  |  |
Net income (loss) | 43,781 |  |  | (136,588) |  |  | 60,341 |  |  | (145,784) |  |  |  |  |
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (2,600) |  |  | 3,571 |  |  | (3,195) |  |  | 4,437 |  |  |  |  |
Net income (loss) attributable to B. Riley Financial, Inc. | 46,381 |  |  | (140,159) |  |  | 63,536 |  |  | (150,221) |  |  |  |  |
Preferred stock dividends | 2,015 |  |  | 2,002 |  |  | 4,027 |  |  | 4,004 |  |  |  |  |
Net income (loss) available to common shareholders | $ | 44,366 |  |  | $ | (142,161) |  |  | $ | 59,509 |  |  | $ | (154,225) |  |  |  |  |
Schedule of revenues by geographical area | The following table presents revenues by geographical area:
| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |
|  |  | (As Restated) |  |  |  | (As Restated) |  |  |  |
Revenues |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees |  |  |  |  |  |  |  |  |  |  |
North America | $ | 229,911 |  |  | $ | 189,841 |  |  | $ | 464,841 |  |  | $ | 390,702 |  |  |  |  |
Europe | 416 |  |  | 1,821 |  |  | 1,045 |  |  | 3,774 |  |  |  |  |
Total Revenues - Services and fees | 230,327 |  |  | 191,662 |  |  | 465,886 |  |  | 394,476 |  |  |  |  |
Trading income (loss) and fair value adjustments on loans |  |  |  |  |  |  |  |  |  |  |
North America | 42,365 |  |  | (117,763) |  |  | 93,933 |  |  | (137,041) |  |  |  |  |
Revenues - Sale of goods |  |  |  |  |  |  |  |  |  |  |
North America | 29,407 |  |  | 1,887 |  |  | 67,354 |  |  | 3,765 |  |  |  |  |
Australia | 3,171 |  |  | — |  |  | 6,630 |  |  | — |  |  |  |  |
Europe, Middle East, and Africa | 17,198 |  |  | — |  |  | 34,626 |  |  | — |  |  |  |  |
Asia | 6,316 |  |  | — |  |  | 12,540 |  |  | — |  |  |  |  |
Latin America | 2,295 |  |  | — |  |  | 5,014 |  |  | — |  |  |  |  |
Total Revenues - Sale of goods | 58,387 |  |  | 1,887 |  |  | 126,164 |  |  | 3,765 |  |  |  |  |
Revenues - Interest income - Loans and securities lending |  |  |  |  |  |  |  |  |  |  |
North America | 75,199 |  |  | 62,399 |  |  | 152,385 |  |  | 123,825 |  |  |  |  |
Europe | — |  |  | 1,436 |  |  | — |  |  | 1,436 |  |  |  |  |
Total Revenues - Interest income - Loans and securities lending | 75,199 |  |  | 63,835 |  |  | 152,385 |  |  | 125,261 |  |  |  |  |
Total Revenues |  |  |  |  |  |  |  |  |  |  |
North America | 376,882 |  |  | 136,364 |  |  | 778,513 |  |  | 381,251 |  |  |  |  |
Australia | 3,171 |  |  | — |  |  | 6,630 |  |  | — |  |  |  |  |
Europe, Middle East, and Africa | 17,614 |  |  | 3,257 |  |  | 35,671 |  |  | 5,210 |  |  |  |  |
Asia | 6,316 |  |  | — |  |  | 12,540 |  |  | — |  |  |  |  |
Latin America | 2,295 |  |  | — |  |  | 5,014 |  |  | — |  |  |  |  |
Total Revenues | $ | 406,278 |  |  | $ | 139,621 |  |  | $ | 838,368 |  |  | $ | 386,461 |  |  |  |  |
Long-Lived Assets by Geographic Areas | The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:
| June 30, 2023 |  | December 31, 2022
Long-lived Assets - Property and Equipment, net: |  |  |
North America | $ | 27,708 |  |  | $ | 26,276 |
Europe | 487 |  |  | 577 |
Asia Pacific | 147 |  |  | 162 |
Australia | 101 |  |  | 126 |
Total | $ | 28,443 |  |  | $ | 27,141 |

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