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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 9 Months Ended
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Sep. 30, 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 and nine months ended September 30, 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 September 30, 2022
| As Previously Reported |  | Restatement Adjustments |  | Restatement Reference |  | As Restated
Statement of Operations |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Services and fees | $ | 266,485 |  |  | $ | (9,175) |  |  | (a) |  | $ | 257,310 |
Trading income (loss) and fair value adjustments on loans | 12,154 |  |  | (19,071) |  |  | (b) |  | (6,917) |
Interest income - Loans and securities lending | 57,594 |  |  | — |  |  |  |  | 57,594 |
Sale of goods | 4,130 |  |  | — |  |  |  |  | 4,130 |
Total revenues | 340,363 |  |  | (28,246) |  |  |  |  | 312,117 |
Operating expenses: |  |  |  |  |  |  |
Direct cost of services | 44,523 |  |  | — |  |  |  |  | 44,523 |
Cost of goods sold | 3,089 |  |  | — |  |  |  |  | 3,089 |
Selling, general and administrative expenses | 163,727 |  |  | — |  |  |  |  | 163,727 |
Restructuring charge | 8,016 |  |  | — |  |  |  |  | 8,016 |
Interest expense - Securities lending and loan participations sold | 17,447 |  |  | — |  |  |  |  | 17,447 |
Total operating expenses | 236,802 |  |  | — |  |  |  |  | 236,802 |
Operating income (loss) | 103,561 |  |  | (28,246) |  |  |  |  | 75,315 |
Other income (expense): |  |  |  |  |  |  |
Interest income | 686 |  |  | — |  |  |  |  | 686 |
Dividend income | — |  |  | 9,175 |  |  | (a) |  | 9,175 |
Realized and unrealized gains on investments | — |  |  | 19,071 |  |  | (b) |  | 19,071 |
Change in fair value of financial instruments and other | (574) |  |  | — |  |  |  |  | (574) |
Loss from equity method investments | (91) |  |  | — |  |  |  |  | (91) |
Interest expense | (34,587) |  |  | — |  |  |  |  | (34,587) |
Income before income taxes | 68,995 |  |  | — |  |  |  |  | 68,995 |
Provision for income taxes | (16,350) |  |  | — |  |  |  |  | (16,350) |
Net income | 52,645 |  |  | — |  |  |  |  | 52,645 |
Net income attributable to noncontrolling interests and redeemable noncontrolling interests | 4,808 |  |  | — |  |  |  |  | 4,808 |
Net income attributable to B. Riley Financial, Inc. | 47,837 |  |  | — |  |  |  |  | 47,837 |
Preferred stock dividends | 2,002 |  |  | — |  |  |  |  | 2,002 |
Net income available to common shareholders | $ | 45,835 |  |  | $ | — |  |  |  |  | $ | 45,835 |
Basic income per common share | $ | 1.62 |  |  |  |  |  |  | $ | 1.62 |
Diluted income per common share | $ | 1.53 |  |  |  |  |  |  | $ | 1.53 |
Weighted average basic common shares outstanding | 28,293,064 |  |  |  |  |  |  | 28,293,064 |
Weighted average diluted common shares outstanding | 29,968,417 |  |  |  |  |  |  | 29,968,417 |
(a) To reclassify dividends received from investments from Services and fees to Dividend income. (b) To reclassify realized and unrealized gains on investments from Trading income (loss) and fair value on loans to Realized and unrealized gains on investments.
| Nine Months Ended September 30, 2022
| As Previously Reported |  | Restatement Adjustments |  | Restatement Reference |  | As Restated
Statement of Operations |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
Services and fees | $ | 678,065 |  |  | $ | (26,279) |  |  | (a) |  | $ | 651,786 |
Trading (loss) income and fair value adjustments on loans | (280,163) |  |  | 136,205 |  |  | (b) |  | (143,958) |
Interest income - Loans and securities lending | 182,855 |  |  | — |  |  |  |  | 182,855 |
Sale of goods | 7,895 |  |  | — |  |  |  |  | 7,895 |
Total revenues | 588,652 |  |  | 109,926 |  |  |  |  | 698,578 |
Operating expenses: |  |  |  |  |  |  |
Direct cost of services | 73,959 |  |  | — |  |  |  |  | 73,959 |
Cost of goods sold | 7,334 |  |  | — |  |  |  |  | 7,334 |
Selling, general and administrative expenses | 506,062 |  |  | — |  |  |  |  | 506,062 |
Restructuring charge | 8,016 |  |  | — |  |  |  |  | 8,016 |
Interest expense - Securities lending and loan participations sold | 43,757 |  |  | — |  |  |  |  | 43,757 |
Total operating expenses | 639,128 |  |  | — |  |  |  |  | 639,128 |
Operating (loss) income | (50,476) |  |  | 109,926 |  |  |  |  | 59,450 |
Other income (expense): |  |  |  |  |  |  |
Interest income | 1,253 |  |  | — |  |  |  |  | 1,253 |
Dividend income | — |  |  | 26,279 |  |  | (a) |  | 26,279 |
Realized and unrealized losses on investments | — |  |  | (136,205) |  |  | (b) |  | (136,205) |
Change in fair value of financial instruments and other | 9,728 |  |  | — |  |  |  |  | 9,728 |
Income from equity method investments | 3,285 |  |  | — |  |  |  |  | 3,285 |
Interest expense | (96,787) |  |  | — |  |  |  |  | (96,787) |
Loss before income taxes | (132,997) |  |  | — |  |  |  |  | (132,997) |
Benefit from income taxes | 39,858 |  |  | — |  |  |  |  | 39,858 |
Net loss | (93,139) |  |  | — |  |  |  |  | (93,139) |
Net income attributable to noncontrolling interests and redeemable noncontrolling interests | 9,245 |  |  | — |  |  |  |  | 9,245 |
Net loss attributable to B. Riley Financial, Inc. | (102,384) |  |  | — |  |  |  |  | (102,384) |
Preferred stock dividends | 6,006 |  |  | — |  |  |  |  | 6,006 |
Net loss available to common shareholders | $ | (108,390) |  |  | $ | — |  |  |  |  | $ | (108,390) |
Basic loss per common share | $ | (3.86) |  |  |  |  |  |  | $ | (3.86) |
Diluted loss per common share | $ | (3.86) |  |  |  |  |  |  | $ | (3.86) |
Weighted average basic common shares outstanding | 28,068,160 |  |  |  |  |  |  | 28,068,160 |
Weighted average diluted common shares outstanding | 28,068,160 |  |  |  |  |  |  | 28,068,160 |
(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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- Definition The entire disclosure for reporting error correction. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-7 + Details
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