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CONDENSED FINANCIAL INFORMATION OF REGISTRANT Parent Company Only Information | 12 Months Ended
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Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract] |
CONDENSED FINANCIAL INFORMATION OF REGISTRANT Parent Company Only Information | CONDENSED FINANCIAL INFORMATION OF REGISTRANTParent Company Only) Condensed Balance Sheets (Dollars in thousands)
| December 31, 2023 |  | December 31, 2022
Assets: |  |  |
Assets: |  |  |
Cash and cash equivalents | $ | 1,147 |  |  | $ | 27,786 |
Investment in consolidated subsidiaries | 2,002,325 |  |  | 2,198,902 |
Other assets | 52,153 |  |  | 32,766 |
Total assets | $ | 2,055,625 |  |  | $ | 2,259,454 |
Liabilities and Stockholders' Equity |  |  |
Liabilities: |  |  |
Accounts payable, accrued expenses and other liabilities | $ | 77,558 |  |  | $ | 57,266 |
Dividends payable | 18,929 |  |  | 33,923 |
Senior notes payable, net | 1,668,021 |  |  | 1,721,751 |
Total liabilities | 1,764,508 |  |  | 1,812,940 |
Total stockholders' equity | 291,117 |  |  | 446,514 |
Total liabilities and stockholders' equity | $ | 2,055,625 |  |  | $ | 2,259,454 |
See Notes to Condensed Financial Statements Condensed Statements of Operations (Dollars in thousands, except per share data)
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Revenues | $ | 17,066 |  |  | $ | 805 |  |  | $ | 10,697 |
Operating expenses: |  |  |  |  |
Selling, general and administrative expenses | 40,053 |  |  | 39,146 |  |  | 41,369 |
Interest expense - Securities lending and loan participations sold | — |  |  | — |  |  | 323 |
Total operating expenses | 40,053 |  |  | 39,146 |  |  | 41,692 |
Operating (loss) income | (22,987) |  |  | (38,341) |  |  | (30,995) |
Other income (expense): |  |  |  |  |
Interest and dividend income | 201 |  |  | 272 |  |  | 4,591 |
Realized and unrealized (losses) gains on investments | — |  |  | — |  |  | 129,351 |
Change in fair value of financial instruments and other | — |  |  | — |  |  | (6,514) |
Loss from equity investments | — |  |  | — |  |  | (384) |
Interest expense | (103,212) |  |  | (100,087) |  |  | (81,479) |
(Loss) income before income taxes | (125,998) |  |  | (138,156) |  |  | 14,570 |
Benefit from (provision for) income taxes | 32,192 |  |  | 34,788 |  |  | (4,237) |
Income (loss) before income in equity investees | (93,806) |  |  | (103,368) |  |  | 10,333 |
Equity in (loss) income of subsidiaries | (6,104) |  |  | (56,461) |  |  | 434,721 |
Net (loss) income | (99,910) |  |  | (159,829) |  |  | 445,054 |
Other comprehensive income (loss) | 2,699 |  |  | (4,720) |  |  | (257) |
Comprehensive (loss) income | $ | (97,211) |  |  | $ | (164,549) |  |  | $ | 444,797 |
Condensed Statements of Cash Flows (Dollars in thousands)
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Cash flows from operating activities: |  |  |  |  |
Net (loss) income | $ | (99,910) |  |  | $ | (159,829) |  |  | $ | 445,054 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |
Equity in net loss of subsidiaries | 6,104 |  |  | 56,461 |  |  | (434,721) |
Share-based compensation | 16,241 |  |  | 21,743 |  |  | 13,419 |
Non-cash interest and other | 5,228 |  |  | 4,631 |  |  | 3,041 |
Depreciation and amortization | 606 |  |  | 646 |  |  | 686 |
Loss on extinguishment of debt | — |  |  | — |  |  | 6,514 |
Change in operating assets and liabilities: |  |  |  |  |
Other assets | 7,994 |  |  | 32,006 |  |  | 348,837 |
Accounts payable, accrued expenses and other liabilities | 22,562 |  |  | 1,721 |  |  | 11,685 |
Other liabilities | (2,268) |  |  | (42,411) |  |  | (27,561) |
Net cash (used in) provided by operating activities | (43,443) |  |  | (85,032) |  |  | 366,954 |
Cash flows from investing activities: |  |  |  |  |
Contributions to subsidiaries | (392,984) |  |  | (342,031) |  |  | (1,349,077) |
Distributions from subsidiaries | 580,000 |  |  | 519,213 |  |  | 522,824 |
Net cash provided by (used in) investing activities | 187,016 |  |  | 177,182 |  |  | (826,253) |
Cash flows from financing activities: |  |  |  |  |
Proceeds from issuance of senior notes | 185 |  |  | 51,601 |  |  | 1,249,083 |
Redemption of senior notes | (58,924) |  |  | — |  |  | (507,348) |
Payment of debt issuance and offering costs | (714) |  |  | (1,041) |  |  | (15,768) |
ESPP and payment of employment taxes on vesting of restricted stock | (7,591) |  |  | (10,286) |  |  | (9,620) |
Common dividends paid | (141,099) |  |  | (119,454) |  |  | (347,134) |
Preferred dividends paid | (8,057) |  |  | (8,008) |  |  | (7,458) |
Repurchase of common stock | (69,479) |  |  | (6,516) |  |  | (2,656) |
Proceeds from issuance of common stock | 115,000 |  |  | — |  |  | 64,713 |
Proceeds from issuance of preferred stock | 467 |  |  | 874 |  |  | 14,712 |
Net cash (used in) provided by financing activities | (170,212) |  |  | (92,830) |  |  | 438,524 |
Decrease in cash, cash equivalents and restricted cash | (26,639) |  |  | (680) |  |  | (20,775) |
Cash, cash equivalents and restricted cash, beginning of year | 27,786 |  |  | 28,466 |  |  | 49,241 |
Cash, cash equivalents and restricted cash, end of year | $ | 1,147 |  |  | $ | 27,786 |  |  | $ | 28,466 |
NOTES TO CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY) NOTE 1 — BASIS OF PRESENTATION The accompanying condensed financial statements for B. Riley Financial, Inc. (the “Parent Company”) summarize the results of operations and cash flows of the Parent Company for the years ended December 31, 2023, 2022, and 2021 and the financial position as of December 31, 2023 and 2022. The condensed financial statements of the Parent Company have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of the Parent Company (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed 25% of the consolidated net assets of the Company. The ability of the Parent Company's operating subsidiaries to pay dividends may be restricted due to the terms of the Nomura Credit Agreement. In these statements, the Parent Company's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date the Parent Company began consolidating them. The Parent Company's share of net income of its unconsolidated subsidiaries is included in consolidated income using the equity method. The Parent Company financial statements should be read in conjunction with the consolidated financial statements of B. Riley Financial and subsidiaries for the corresponding years. NOTE 2 — TRANSACTIONS WITH SUBSIDIARIES During the years ended December 31, 2023, 2022, and 2021, distributions from subsidiaries to the Parent Company were $580,000, $519,213, and $522,824, respectively, and contributions from the Parent Company to its subsidiaries were $392,984, $342,031, and $1,349,077, respectively. The Parent Company maintains most of its cash and cash equivalents at its wholly owned subsidiaries to maximize returns on investments. Distributions from subsidiaries to the Parent Company are primarily to fund periodic investments that are made at the Parent Company or to fund debt service and interest costs on on the senior notes, common stock and preferred stock dividends, and repurchases of common stock or other Parent Company securities. Contributions from the Parent Company to its subsidiaries are primarily made to fund acquisitions and investments that are made at the subsidiary level.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 205 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480922/205-10-S99-6 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 810 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481231/810-10-45-11 + Details
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