XML 58 R46.htm IDEA: XBRL DOCUMENT
v3.23.3

BUSINESS SEGMENTS (Tables) | 9 Months Ended
--- | ---
Sep. 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 September 30, |  | Nine Months Ended September 30, |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |
Capital Markets segment: |  |  | (As Restated) |  |  |  | (As Restated) |  |  |  |
Revenues - Services and fees | $ | 80,913 |  |  | $ | 104,042 |  |  | $ | 183,803 |  |  | $ | 223,448 |  |  |  |  |
Trading (loss) income and fair value adjustments on loans | (11,077) |  |  | (7,944) |  |  | 81,111 |  |  | (147,035) |  |  |  |  |
Interest income - Loans and securities lending | 69,730 |  |  | 55,054 |  |  | 222,115 |  |  | 178,879 |  |  |  |  |
Total revenues | 139,566 |  |  | 151,152 |  |  | 487,029 |  |  | 255,292 |  |  |  |  |
Selling, general and administrative expenses | (62,898) |  |  | (35,673) |  |  | (174,479) |  |  | (115,655) |  |  |  |  |
Impairment of tradenames | — |  |  | — |  |  | (1,733) |  |  | — |  |  |  |  |
Interest expense - Securities lending and loan participations sold | (38,368) |  |  | (17,447) |  |  | (106,572) |  |  | (43,757) |  |  |  |  |
Depreciation and amortization | (900) |  |  | (2,174) |  |  | (3,149) |  |  | (6,271) |  |  |  |  |
Segment income | 37,400 |  |  | 95,858 |  |  | 201,096 |  |  | 89,609 |  |  |  |  |
Wealth Management segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 50,875 |  |  | 47,145 |  |  | 146,660 |  |  | 184,963 |  |  |  |  |
Trading income and fair value adjustments on loans | 490 |  |  | 1,027 |  |  | 2,235 |  |  | 3,077 |  |  |  |  |
Total revenues | 51,365 |  |  | 48,172 |  |  | 148,895 |  |  | 188,040 |  |  |  |  |
Selling, general and administrative expenses | (47,891) |  |  | (52,302) |  |  | (143,177) |  |  | (206,438) |  |  |  |  |
Restructuring charge | — |  |  | (4,106) |  |  | (61) |  |  | (4,106) |  |  |  |  |
Depreciation and amortization | (1,075) |  |  | (1,261) |  |  | (3,243) |  |  | (4,402) |  |  |  |  |
Segment income (loss) | 2,399 |  |  | (9,497) |  |  | 2,414 |  |  | (26,906) |  |  |  |  |
Auction and Liquidation segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 12,488 |  |  | 1,949 |  |  | 26,817 |  |  | 7,792 |  |  |  |  |
Revenues - Sale of goods | 65,117 |  |  | 2,550 |  |  | 67,009 |  |  | 2,550 |  |  |  |  |
Interest Income - Loan | — |  |  | 2,540 |  |  | — |  |  | 3,976 |  |  |  |  |
Total revenues | 77,605 |  |  | 7,039 |  |  | 93,826 |  |  | 14,318 |  |  |  |  |
Direct cost of services | (15,234) |  |  | (2,999) |  |  | (21,815) |  |  | (6,630) |  |  |  |  |
Cost of goods sold | (35,836) |  |  | (1,235) |  |  | (36,506) |  |  | (1,235) |  |  |  |  |
Selling, general and administrative expenses | (8,405) |  |  | (2,228) |  |  | (12,987) |  |  | (6,225) |  |  |  |  |
Segment income | 18,130 |  |  | 577 |  |  | 22,518 |  |  | 228 |  |  |  |  |
Financial Consulting segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 37,360 |  |  | 22,835 |  |  | 93,582 |  |  | 73,081 |  |  |  |  |
Selling, general and administrative expenses | (26,769) |  |  | (20,056) |  |  | (70,709) |  |  | (60,947) |  |  |  |  |
Depreciation and amortization | (88) |  |  | (75) |  |  | (269) |  |  | (234) |  |  |  |  |
Segment income | 10,503 |  |  | 2,704 |  |  | 22,604 |  |  | 11,900 |  |  |  |  |
Communications segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 82,155 |  |  | 72,244 |  |  | 250,523 |  |  | 142,366 |  |  |  |  |
Revenues - Sale of goods | 1,638 |  |  | 1,580 |  |  | 5,145 |  |  | 5,345 |  |  |  |  |
Total revenues | 83,793 |  |  | 73,824 |  |  | 255,668 |  |  | 147,711 |  |  |  |  |
Direct cost of services | (46,012) |  |  | (38,515) |  |  | (136,830) |  |  | (64,320) |  |  |  |  |
Cost of goods sold | (1,750) |  |  | (1,854) |  |  | (5,964) |  |  | (6,099) |  |  |  |  |
Selling, general and administrative expenses | (21,655) |  |  | (21,047) |  |  | (64,440) |  |  | (41,468) |  |  |  |  |
Restructuring charge | (145) |  |  | (3,910) |  |  | (402) |  |  | (3,910) |  |  |  |  |
Depreciation and amortization | (6,739) |  |  | (6,060) |  |  | (19,775) |  |  | (12,799) |  |  |  |  |
Segment income | 7,492 |  |  | 2,438 |  |  | 28,257 |  |  | 19,115 |  |  |  |  |
Consumer segment: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 4,304 |  |  | 5,023 |  |  | 13,654 |  |  | 14,754 |  |  |  |  |
Revenues - Sale of goods | 58,391 |  |  | — |  |  | 179,156 |  |  | — |  |  |  |  |
Total revenues | 62,695 |  |  | 5,023 |  |  | 192,810 |  |  | 14,754 |  |  |  |  |
Cost of goods sold | (40,467) |  |  | — |  |  | (123,526) |  |  | — |  |  |  |  |
Selling, general and administrative expenses | (16,981) |  |  | (845) |  |  | (54,424) |  |  | (2,419) |  |  |  |  |
Depreciation and amortization | (2,632) |  |  | (579) |  |  | (8,110) |  |  | (1,745) |  |  |  |  |
Restructuring charge | (83) |  |  | — |  |  | (486) |  |  | — |  |  |  |  |
Impairment of goodwill and tradenames | (35,500) |  |  | — |  |  | (35,500) |  |  | — |  |  |  |  |
Segment (loss) income | (32,968) |  |  | 3,599 |  |  | (29,236) |  |  | 10,590 |  |  |  |  |
Consolidated operating income from reportable segments | 42,956 |  |  | 95,679 |  |  | 247,653 |  |  | 104,536 |  |  |  |  |
All Other: |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees | 9,928 |  |  | 4,072 |  |  | 28,870 |  |  | 5,382 |  |  |  |  |
Direct cost of services | (6,604) |  |  | (3,009) |  |  | (19,543) |  |  | (3,009) |  |  |  |  |
Corporate and other expenses | (25,655) |  |  | (21,427) |  |  | (68,438) |  |  | (47,459) |  |  |  |  |
Interest income | 180 |  |  | 686 |  |  | 3,455 |  |  | 1,253 |  |  |  |  |
Dividend income | 12,876 |  |  | 9,175 |  |  | 35,635 |  |  | 26,279 |  |  |  |  |
Realized and unrealized (losses) gains on investments | (75,361) |  |  | 19,071 |  |  | (84,960) |  |  | (136,205) |  |  |  |  |
Change in fair value of financial instruments and other | (4,170) |  |  | (574) |  |  | (3,998) |  |  | 9,728 |  |  |  |  |
(Loss) income on equity investments | (308) |  |  | (91) |  |  | (175) |  |  | 3,285 |  |  |  |  |
Interest expense | (45,229) |  |  | (34,587) |  |  | (140,122) |  |  | (96,787) |  |  |  |  |
(Loss) income before income taxes | (91,387) |  |  | 68,995 |  |  | (1,623) |  |  | (132,997) |  |  |  |  |
Benefit from (provision for) income taxes | 15,079 |  |  | (16,350) |  |  | (14,344) |  |  | 39,858 |  |  |  |  |
Net (loss) income | (76,308) |  |  | 52,645 |  |  | (15,967) |  |  | (93,139) |  |  |  |  |
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (2,485) |  |  | 4,808 |  |  | (5,680) |  |  | 9,245 |  |  |  |  |
Net (loss) income attributable to B. Riley Financial, Inc. | (73,823) |  |  | 47,837 |  |  | (10,287) |  |  | (102,384) |  |  |  |  |
Preferred stock dividends | 2,015 |  |  | 2,002 |  |  | 6,042 |  |  | 6,006 |  |  |  |  |
Net (loss) income available to common shareholders | $ | (75,838) |  |  | $ | 45,835 |  |  | $ | (16,329) |  |  | $ | (108,390) |  |  |  |  |
Schedule of revenues by geographical area | The following table presents revenues by geographical area:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |
|  |  | (As Restated) |  |  |  | (As Restated) |  |  |  |
Revenues |  |  |  |  |  |  |  |  |  |  |
Revenues - Services and fees |  |  |  |  |  |  |  |  |  |  |
North America | $ | 277,353 |  |  | $ | 257,270 |  |  | $ | 742,194 |  |  | $ | 647,972 |  |  |  |  |
Europe | 670 |  |  | 40 |  |  | 1,715 |  |  | 3,814 |  |  |  |  |
Total Revenues - Services and fees | 278,023 |  |  | 257,310 |  |  | 743,909 |  |  | 651,786 |  |  |  |  |
Trading (loss) income and fair value adjustments on loans |  |  |  |  |  |  |  |  |  |  |
North America | (10,587) |  |  | (6,917) |  |  | 83,346 |  |  | (143,958) |  |  |  |  |
Revenues - Sale of goods |  |  |  |  |  |  |  |  |  |  |
North America | 31,087 |  |  | 1,825 |  |  | 98,440 |  |  | 5,590 |  |  |  |  |
Australia | 2,393 |  |  | — |  |  | 9,023 |  |  | — |  |  |  |  |
Europe, Middle East, and Africa | 82,261 |  |  | 2,305 |  |  | 116,887 |  |  | 2,305 |  |  |  |  |
Asia | 7,224 |  |  | — |  |  | 19,765 |  |  | — |  |  |  |  |
Latin America | 2,181 |  |  | — |  |  | 7,195 |  |  | — |  |  |  |  |
Total Revenues - Sale of goods | 125,146 |  |  | 4,130 |  |  | 251,310 |  |  | 7,895 |  |  |  |  |
Revenues - Interest income - Loans and securities lending |  |  |  |  |  |  |  |  |  |  |
North America | 69,730 |  |  | 55,054 |  |  | 222,115 |  |  | 178,879 |  |  |  |  |
Europe | — |  |  | 2,540 |  |  | — |  |  | 3,976 |  |  |  |  |
Total Revenues - Interest income - Loans and securities lending | 69,730 |  |  | 57,594 |  |  | 222,115 |  |  | 182,855 |  |  |  |  |
Total Revenues |  |  |  |  |  |  |  |  |  |  |
North America | 367,583 |  |  | 307,232 |  |  | 1,146,095 |  |  | 688,483 |  |  |  |  |
Australia | 2,393 |  |  | — |  |  | 9,023 |  |  | — |  |  |  |  |
Europe, Middle East, and Africa | 82,931 |  |  | 4,885 |  |  | 118,602 |  |  | 10,095 |  |  |  |  |
Asia | 7,224 |  |  | — |  |  | 19,765 |  |  | — |  |  |  |  |
Latin America | 2,181 |  |  | — |  |  | 7,195 |  |  | — |  |  |  |  |
Total Revenues | $ | 462,312 |  |  | $ | 312,117 |  |  | $ | 1,300,680 |  |  | $ | 698,578 |  |  |  |  |
Long-Lived Assets by Geographic Areas | The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:
| September 30, 2023 |  | December 31, 2022
Long-lived Assets - Property and Equipment, net: |  |  |
North America | $ | 24,083 |  |  | $ | 26,276 |
Europe | 441 |  |  | 577 |
Asia Pacific | 160 |  |  | 162 |
Australia | 90 |  |  | 126 |
Total | $ | 24,774 |  |  | $ | 27,141 |

X
- Definition Tabular disclosure of long-lived assets, excluding financial instruments, long-term customer relationships of a financial institution, mortgage rights, deferred policy acquisition costs, and deferred tax assets, by geographic areas located in the entity's country of domicile and foreign countries in which the entity holds assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Subparagraph b -SubTopic 10 -Topic 280 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 + Details
Name: | us-gaap_LongLivedAssetsByGeographicAreasTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 220 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2 + Details
Name: | us-gaap_ScheduleOfRevenueFromExternalCustomersAttributedToForeignCountriesByGeographicAreaTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration