B. Riley Financial faces Nasdaq delinquency over late filing

Published 04/04/2025, 21:38
B. Riley Financial faces Nasdaq delinquency over late filing

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ:RILY), a diversified financial services company with a market capitalization of $100.64 million, has received a delinquency notification from Nasdaq due to the delayed submission of its annual report. The company did not meet the Nasdaq Listing Rule 5250(c)(1) requirement, which mandates timely filing of periodic financial reports with the Securities and Exchange Commission (SEC). According to InvestingPro data, the company’s stock has experienced significant pressure, declining over 83% in the past year.

The notice, received on April 3, 2025, does not immediately affect the listing of B. Riley’s securities on the Nasdaq stock market. However, the company must provide a compliance plan to Nasdaq by June 2, 2025, detailing how it will address the delay and regain compliance with listing rules. Nasdaq may grant B. Riley Financial an extension of up to 180 calendar days from the original due date of the filing, which would be until September 29, 2025, to file the overdue Full Year Report on Form 10-K for the year ended December 31, 2024. Despite these challenges, InvestingPro analysis suggests the company maintains strong liquidity with a current ratio of 4.17, indicating sufficient assets to cover short-term obligations.

The company had previously released preliminary financial results for the quarter ending December 31, 2024, on March 3, 2025, and anticipates filing the required Form 10-K before the Nasdaq’s deadline to submit a compliance plan.

B. Riley Financial provides a range of services including investment banking, institutional brokerage, private wealth management, financial consulting, and corporate restructuring, among others. It also makes strategic investments and offers senior secured loans through its affiliates.

This announcement comes as part of a regulatory compliance process and is based on a press release statement from B. Riley Financial. The company has not provided a specific date for when it expects to file the delayed report but has indicated its intention to do so in a timely manner. Investors and stakeholders are advised to monitor the company’s filings and announcements for further updates on this matter.

In other recent news, B. Riley Financial has reported its preliminary fourth-quarter 2024 results, showcasing a net income between $48 million and $68 million, despite a net loss from continuing operations ranging from $178 million to $187 million. The company’s strategic focus on asset monetization and debt reduction was highlighted by the sale of brand assets and a portion of its wealth management business. In a significant financial restructuring, B. Riley Financial completed a private exchange transaction, reducing its outstanding debt by approximately $35 million. This involved swapping $123 million in senior notes for $88 million in newly issued 8.00% Senior Secured Second Lien Notes due 2028.

B. Riley Financial also issued warrants for approximately 351,000 common shares at an exercise price of $10.00 per share. The company has faced challenges in meeting the filing deadline for its annual report for the third consecutive year, citing complexities in finalizing financial statements. Additionally, B. Riley Financial’s recent joint venture with Oaktree Capital Management aims to strengthen its core operations. Analyst firms such as Moelis & Company LLC and Sullivan & Cromwell LLP were involved in advising the company on these transactions. These developments reflect B. Riley Financial’s ongoing efforts to optimize its capital structure and manage long-term debt obligations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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