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EQUITY METHOD INVESTMENTS | 6 Months Ended
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Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract] |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS Equity investments accounted for under the equity method of accounting consist of the following:
|  | June 30, 2026 |  | December 31, 2025
|  | Percentage Ownership |  | Investment Balance |  | Percentage Ownership |  | Investment Balance
Investments accounted for under the equity method: |  |  |  |  |  |  |  |
Great American Holdings, LLC |  | 38.4 | % |  | $ | 77,845 |  |  | 38.4 | % |  | $ | 83,349 |
SW-B. Riley Retail Opportunity Fund |  | 22.6 | % |  | 6,972 |  |  | 22.6 | % |  | 7,084 |
Total equity method investments |  |  |  | $ | 84,817 |  |  |  |  | $ | 90,433 |
Equity investments that are accounted for under the equity method of accounting are included in the “Equity investments” line item in the accompanying unaudited condensed consolidated balance sheets. The Company’s share of earnings or losses from equity method investees is included in the “(Loss) income from equity investments” line item in the accompanying unaudited condensed consolidated statements of operations. The summarized financial information with respect to the equity method investments noted below for purposes of disclosure are presented a quarter in arrears whereas balance sheet and income statement amounts as of and for the quarter ended December 31, 2025 correspond to amounts as of and for the quarter ended June 30, 2026. Great American Holdings, LLC (“GA Holdings”) On November 15, 2024, the Company completed the sale of a majority interest in GA Holdings to Oaktree (the “Great American Transaction”). Upon completion of the sale, the Company retained a minority ownership interest in the Class A common units of GA Holdings. GA Holdings operations include appraisal and valuation services, real estate, and retail, wholesale & industrial auction and liquidation services to help clients dispose of assets that include multi-location retail inventory, wholesale inventory, trade fixtures, machinery and equipment, intellectual property and real property. GA Holdings has three classes of equity interests which include common interests, Class A preferred interests and Class B preferred interests. The Company accounts for its investment in GA Holdings under the equity method of accounting with a three-month lag. Under the equity method of accounting, the Company records its proportionate share of earnings or losses; however, given the capital structure of GA Holdings the Company applies the Hypothetical Liquidation at Book Value (“HLBV”) method on a three-month lag to determine the allocation of profits and losses since the liquidation rights and priorities, as defined by the limited liability agreement of GA Holdings, differ from the Company’s underlying ownership interest. The HLBV method calculates the proceeds that would be attributable to each partner based on the liquidation provisions of the limited liability agreement as if GA Holdings was to be liquidated at book value as of the balance sheet date. Each partner’s allocation of income or loss in the period is equal to the change in the amount of net equity they are legally able to claim based on a hypothetical liquidation of the entity at the end of a reporting period compared to the beginning of that period, adjusted for any capital transactions. Based on the terms of the limited liability agreement, we recorded equity in the net (loss) income attributable to GA Holdings using the HLBV method of $(5,828) and $3,190 for the three months ended June 30, 2026 and 2025, respectively, and $(5,505) and $3,639 for the six months ended June 30, 2026 and 2025, respectively. The following tables contain summarized financial information with respect to GA Holdings:
|  | March 31, 2026 |  | September 30, 2025
Current assets |  | $ | 42,101 |  |  | $ | 58,177 |
Noncurrent assets |  | $ | 295,890 |  |  | $ | 283,238 |
Current liabilities |  | $ | 22,609 |  |  | $ | 51,024 |
Noncurrent liabilities |  | $ | 5,257 |  |  | $ | 518 |
Mezzanine equity - preferred units |  | $ | 279,097 |  |  | $ | 279,097 |
Equity attributable to investee |  | $ | 31,028 |  |  | $ | 10,776 |
|  | For the Three Months Ended March 31, |  | For the Six Months Ended March 31, 2026 |  | Period from November 15, 2024 to March 31, 2025
|  | 2026 |  | 2025 |  |
Revenue |  | $ | 37,747 |  |  | $ | 37,062 |  |  | $ | 92,588 |  |  | $ | 58,736 |
Cost of revenue and expenses |  | $ | 35,148 |  |  | $ | 33,044 |  |  | $ | 86,549 |  |  | $ | 51,228 |
Net income attributable to investee |  | $ | 2,599 |  |  | $ | 4,018 |  |  | $ | 6,039 |  |  | $ | 7,508 |
GA Joann Retail Partnership, LLC (“Joann Retail”) On February 27, 2025, the Company contributed capital and certain financial support in the form of cash and subordinated debt in exchange for a 47.4% minority ownership interest in Joann Retail. Joann Retail’s operations include the acquisition and liquidation of Joann Inc’s (and its subsidiaries) retail assets. Joann Retail has two classes of equity interest which include voting Class A and nonvoting Class B interests. As of June 30, 2026, the Company’s investment in Joann Retail was zero as the Company had fully recovered its initial investment of $6,163 in Joann Retail during the second quarter of 2025. Prior to the recovery of the Company’s initial investment, the investment in Joann Retail was adjusted for the Company’s proportionate share of equity method income or losses and of cash distributions received. The Company received $1,210 and $30,420 in excess of the Company’s investment balance during the six months ended June 30, 2026 and 2025, and the distributions received in excess of the investment balance are recognized as other income and included in the “(Loss) income from equity investments” line item in the accompanying unaudited condensed consolidated statements of operations. The following tables contain summarized financial information with respect to Joann Retail:
|  | March 31, 2026 |  | September 30, 2025
Current assets |  | $ | 17,754 |  |  | $ | 27,415 |
Current liabilities |  | $ | 17,754 |  |  | $ | 27,415 |
|  | Three Months Ended |  | Period from February 27, 2025 to March 31, 2025 |  | Six Months Ended |  | Period from February 27, 2025 to March 31, 2025
|  | March 31, 2026 |  |  | March 31, 2026 |
Revenue |  | $ | 2,671 |  |  | $ | — |  |  | $ | 9,254 |  |  | $ | — |
Cost of revenue and expenses |  | 710 |  |  | 3,615 |  |  | 2,431 |  |  | 3,615 |
Net income (loss) attributed to investee |  | $ | 1,961 |  |  | $ | (3,615) |  |  | $ | 6,823 |  |  | $ | (3,615) |
SW-B. Riley Retail Opportunity Fund (“SW-B. Retail”) After the consolidation of BRC Trust as discussed in Note 3 - Variable Interest Entities and Note 16 - Noncontrolling Interests, the Company’s ownership percentage in SW-B. Retail is 22.6%. During the three months ended June 30, 2026 and 2025, the Company recorded equity method income of $87 and $86 respectively, and for the six months ended June 30, 2026 and 2025, the Company recorded equity method income (loss) of $161 and $(17) respectively

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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