B. Riley Financial Provides Update on Quarterly Filing Process

Rhea-AI Summary

B. Riley Financial (NASDAQ: RILY) received an additional delinquency notification from Nasdaq on November 20, 2024, for non-compliance with listing rules due to delayed filing of Quarterly Reports for periods ended June 30 and September 30, 2024. While this notification doesn't immediately affect the company's Nasdaq listing, B. Riley must submit an updated compliance plan by December 5, 2024. If accepted, Nasdaq may grant up to 180 calendar days (until February 17, 2025) to regain compliance. The company attributes the delays to significant events and transactions in 2024 and expects to resume normal filing schedules in 2025.

Positive

• No immediate impact on Nasdaq listing despite delinquency notice
• Potential 180-day extension period to regain compliance if plan is accepted

Negative

• Delayed filing of Q2 and Q3 2024 quarterly reports
• Non-compliance with Nasdaq Listing Rule 5250(c)(1)
• Required to submit updated compliance plan by December 5, 2024
• Risk of potential delisting if compliance is not achieved

Insights

Financial Analyst

The continued delay in filing quarterly reports is a significant red flag that raises concerns about B. Riley Financial's internal controls and financial transparency. The company has now missed filing deadlines for both Q2 and Q3 2024, triggering additional Nasdaq compliance issues. While they have until February 2025 to resolve these delinquencies, the situation creates uncertainty around the company's financial health and could impact investor confidence.

The vague reference to "significant events and transactions" as the reason for delays, without providing specific details, adds to the concern. For a financial services firm, timely and accurate financial reporting is crucial. This situation could affect relationships with clients, partners and regulators. The 47% year-to-date decline in stock price reflects these concerns and continued filing delays could lead to increased scrutiny from regulators and potential covenant issues with creditors.

Announces Notification of Additional Delinquency with Nasdaq for Late Filing of Form 10-Q for Period Ended September 30, 2024

Expects to Return to Normal Filing Cadence in 2025

LOS ANGELES, Nov. 26, 2024 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified financial services company, today announced it received an additional delinquency notification letter from Nasdaq on November 20, 2024, which indicated that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) as a result of the delayed filing of the Company's Quarterly Reports on Form 10-Q for the periods ended June 30, 2024 and September 30, 2024. The Nasdaq Listing Rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the "SEC"). This notification has no immediate effect on the listing of the Company's securities on Nasdaq.

Nasdaq has informed the Company that it must submit an update to its original plan to regain compliance with respect to the filing requirement by December 5, 2024. If the updated plan is accepted, Nasdaq can grant an exception of up to 180 calendar dates from the due date of the initial delinquent filing for the period ended June 30, 2024, or until February 17, 2025, to regain compliance.

The Company regrets the continued delays in its quarterly filings, which have been impacted by a confluence of significant events and transactions completed in 2024. The Company is working diligently to file the Quarterly Reports for both the second and third quarters as promptly as practical, and expects to return to a normal filing cadence in 2025.

About B. Riley Financial
B. Riley Financial is a diversified financial services company that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end financial services across investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. B. Riley opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. For more information, please visit www.brileyfin.com.

Forward-Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today's date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company's periodic filings with the SEC, including, without limitation, the risks described in the Company's 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.

Contacts

Investors
ir@brileyfin.com

Media
press@brileyfin.com 

View original content:https://www.prnewswire.com/news-releases/b-riley-financial-provides-update-on-quarterly-filing-process-302316982.html

SOURCE B. Riley Financial

FAQ

Why did B. Riley Financial (RILY) receive a Nasdaq delinquency notification in November 2024?

B. Riley Financial received the notification for failing to timely file its Q2 and Q3 2024 Quarterly Reports (Form 10-Q), violating Nasdaq Listing Rule 5250(c)(1).

What is the deadline for B. Riley Financial (RILY) to submit its updated compliance plan to Nasdaq?

B. Riley must submit an updated plan to regain compliance by December 5, 2024.

How long does B. Riley Financial (RILY) have to regain compliance with Nasdaq listing rules?

If Nasdaq accepts the updated plan, B. Riley may receive up to 180 calendar days, until February 17, 2025, to regain compliance.

When does B. Riley Financial (RILY) expect to return to normal filing schedules?

The company expects to return to a normal filing cadence in 2025.