B. Riley (RILY.US) did his best to keep the case after “continuing” the NASDAQ with a 10-Q backorder

The Zhitong Finance App learned that American financial company B, which focuses on diversified financial services. Riley Financial Inc. (RILY.US) said it has submitted its overdue second-quarter report to the US Securities Supervisory Authority (SEC), bringing the company closer to meeting the listing requirements set out by the NASDAQ Exchange, thereby once again avoiding the delisting of the company's shares. Thanks to this delayed 10-Q report, the stock once rose more than 40% in after-hours trading.

This 10-Q report to the US Securities and Exchange Commission arrived before the December 23rd NASDAQ deadline; according to a statement from the Los Angeles-based financial firm, the report showed B. Riley turned losses in the quarter from the same period last year to profits. Although the third-quarter report is still overdue, the company's chairman Bryant Riley said the company is “in good condition” to meet NASDAQ's final deadline of January 20 for these missing data.

A copy of this 10-Q filing is not immediately available on the US SEC's official website.

B. Riley's struggle to submit performance reports on time comes during a difficult and turbulent period, as the company is currently struggling to cope with lost investments, persistent flaws in financial reporting, and an ongoing civil investigation by the US Government over its dealings with former key business partner Brian Kahn (Brian Kahn). The former head of Franchise Group Inc. pleaded guilty last week to defrauding hedge fund investors of about $300 million at Prophecy Asset Management. The scandal engulfed the once famous retail company he built across the US.

Franchise Group (FRG) used to be B. One of Riley's critical long-term investments, and its bankruptcy in late 2024 left B. Riley was burdened with hundreds of millions of dollars in write-offs and was unable to submit her annual and quarterly reports to US regulators. B. Riley has officially stated on several occasions that it is unaware of Kahn's fraudulent investment activities in Prophecy.

Continued delays in the report made it impossible for investors to determine the company's financial status and prompted NASDAQ to repeatedly threaten B. Riley was delisted. The key data included in the latest filing is consistent with the company's previous outlook data range, showing that in the three months ending June 30, profit from continuing operations was approximately US$71.7 million, compared to a loss of US$449.2 million for the same period in 2024. Excluding some one-off projects, the adjusted EBITDA for continuing operations rose significantly from $31.2 million to $38.5 million.

The company's net profit of approximately US$137.5 million included the proceeds of the sale of GlassRatner of US$66.8 million, as well as the previous revenue of US$44.5 million obtained through the exchange of advanced notes; the net loss for the same period last year was US$435.6 million.

The company previously reported that a Nasdaq team worked on B. A hearing was held on whether Riley is eligible to continue the listing. The company said the panel decided to further delay the submission of late returns due in part to B. Riley has made significant efforts to rectify the arrears. Earlier this year, B. Riley appointed a new chief financial officer, Scott Yessner (Scott Yessner), whose rewards are mostly tied to timely financial reporting.

Due to investment setbacks, accumulated annual losses, and repeated delays in earnings reports, the company was even dubbed by some analysts as having gone from being a diversified financial giant to a potential delisted stock in need of a “cover.” Continued attack firepower from shorting agencies and investigations initiated by the SEC made B. Riley's actual situation has only worsened. B. Riley has also adopted a number of agreements to defer debt repayment dates.

B. Riley Financial Inc is essentially a “diversified financial service platform/independent investment banking integrated brokerage firm”: it not only provides capital markets and investment services for small and medium-sized market capitalization enterprises, but also provides services related to wealth management, financial advisory (including restructuring, valuation, etc.), communication and investor relations, and also operates asset services such as auctions and clearing, valuation/disposal (historically highly related to Great American businesses), and the “consumer” related business segment; the company revealed in the annual report that its core business is divided into six major reportable businesses Division: Capital Markets, Wealth Management, Financial Advisory, Communications, Auctions and Liquidation, Consumption.

However, as Franchise Group (FRG) entered bankruptcy proceedings in late 2024, it greatly intensified B. Riley's asset write-down and loss pressure also pushes it to “repair its balance sheet” by disposing of assets and reducing leverage (such as saling/introducing partners to handle Great American-related asset service businesses to obtain cash and reduce liabilities).

The company can be described as going from the fall of a market-focused diversified finance leader to a high-risk stock that continues to face a delisting crisis. The core logic of its stock price plummeting from about $60 in early 2022 to around $3.7 now is that significant exposure to Franchise Group (FRG) caused impairment and huge losses, triggered expanded SEC investigations (especially the investigation of the relationship with Brian Kahn) and information disclosure disputes, which ultimately led to overdue annual/quarterly reports triggering NASDAQ compliance alerts and delisting risks. During this period, many profit warnings, valuation disputes, and questions from shorting institutions were compounded. Since then, the company suspended preferential stock dividends to ensure liquidity, and has disposed of assets on a large scale to jointly suppress valuation and market sentiment.