EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2023

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 1,985,442 and 1,757,081 during the three months ended June 30, 2023 and 2022, respectively, and 1,992,357 and 1,553,571 during the six months ended June 30, 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
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) applicable to common shareholders	$	44,366	$	(142,161)	$	59,509	$	(154,225)

Weighted average common shares outstanding:
Basic	28,239,116		28,051,570		28,411,270		27,953,845
Effect of dilutive potential common shares:
Restricted stock units and warrants	415,130		—		671,615		—
Diluted	28,654,246		28,051,570		29,082,885		27,953,845

Basic income (loss) per common share	$	1.57	$	(5.07)	$	2.09	$	(5.52)
Diluted income (loss) per common share	$	1.55	$	(5.07)	$	2.05	$	(5.52)