Struggling B. Riley Faces Continued Threats to Stock Exchange Listing due to Delayed Financial Reports
B. Riley Financial Inc., a financial services holding company, is facing the possibility of delisting from Nasdaq as the deadline to file overdue financial reports approaches. The company has been working diligently to address its filing issues and has made significant progress, but still faces a challenging deadline.
According to reports, B. Riley has missed the September 29 deadline to file delayed quarterly reports for 2021 and 2022. The overdue filings include the annual Form 10-K for 2024 and this year's first and second-quarter 10-Qs. Nasdaq had previously instructed B. Riley to complete all its overdue filings by September 29 to maintain its listing.
In an effort to address reporting weaknesses and improve internal controls, B. Riley decided to switch auditors from Marcum LLP to BDO USA. The latter is currently reviewing the 2025 filings for B. Riley Financial Inc.
Despite the ongoing efforts, B. Riley has informed Nasdaq's staff that it would be unable to file the quarterly reports by September 29. The company expects to request additional time to remain listed on Nasdaq until it becomes current in its SEC periodic public filings.
B. Riley Financial Inc. posted a net loss to common shareholders of $772 million for 2024, a significant widening from $108 million in 2023. The 2024 annual report of B. Riley cited 10 "material weaknesses" in the company's controls.
In a positive development, B. Riley has made "substantial progress" on filings for this year's first two quarters. The company filed its audited results for 2024 earlier this year.
If delisting proceedings begin on September 29 or sooner, B. Riley has indicated that it will request a hearing from Nasdaq. At the hearing, the company will argue for reasons to remain listed on Nasdaq.
As of now, a representative from Nasdaq has declined to comment on B. Riley's status. The situation is being closely watched by investors and industry observers alike.
Meanwhile, Marcum LLP completed the 2024 audit while preparing to hand over its duties to BDO USA, which is reviewing the 2025 filings. B. Riley Financial decided in 2025 to reduce $126 million of debt through bond exchanges and credit facility adjustments and improve liquidity to $268 million, while seeking to comply with Nasdaq requirements by submitting the delayed SEC filings by the extended deadline of September 29, 2025, in order to avoid delisting threats.
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