ࡱ>  l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~<#܈ ~~8#܈ ~~"؈ ~~3#܈ ~~7#܈ ~~4#܈ ~~"؈ ~~83ffff̙̙3f3fff3f3f33333f33FORM 10K!B RILEY FINANCIAL INC&,FOR THE FISCAL YEAR ENDED DECEMEItem 2 PROPERTIES&eStock Market and Other InformatyFive Year Comparison&36 Consolidated Statement of Op&Consolidated Balance Sheet Data&:Consolidated Statements of Incoe 41 Revenues&Sale of Goods Cost of Goods Sol4Operating Expenses&QSelling General and Administrat#+jConsolidated Statements (1) 46 Revenues!Sale of Goods Cost of (1)Operating Expen (1)Selling General and (1)&4Liquidity and Capital ResourcesContractual ObligationsJ$ Exhibit IndexEExhibit Index (1)mExhibit Index (2)Exhibit Index (3)߿Exhibit Index (4)NO TITLE 68 SIGNATURES&INDEX TO CONSOLIDATED FINANCIAL CONSOLIDATED BALANCE (1)#;CONSOLIDATED STATEMENTS (2)#`CONSOLIDATED STATEMENTS (3)#tCONSOLIDATED STATEMENTS (4)&CONSOLDIATED STATEMENTS OF CASH& F13 o Advances Against Customer"F13 o Advances Against (1)"&BF13 o Advances Against (2)"aF13 o Advances Against (3)&ĆAcquisition of Wunderlich Inves%fAcquisition of Wunderlich (1)Acquisition of FBR Co.ͺAcquisition of FBR (1)&Acquisition of United Online In oAcquisition of MK Capital&4Pro Forma Financial Information"NOTE 4 RESTRUCTURING CHARGE NOTE 4 RESTRUCTURING (1) /NOTE 5 SECURITIES LENDING%FF25 NOTE 6 ACCOUNTS RECEIVABLEWF25 NOTE 6 ACCOUNTS (1)$%iNOTE 7 PROPERTY AND EQUIPMENT&{F26 NOTE 8 GOODWILL AND OTHER I#F26 NOTE 8 GOODWILL AND (1)"NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)i F31 NOTE 13 INCOME (2)$F31 NOTE 13 INCOME (3)!C5NOTE 14 EARNINGS PER SHARE#KNOTE 16 SHARE BASED PAYMENTS&*`F36 b Amended and Restated FBR $pF38 NOTE 20 BUSINESS SEGMENTS F38 NOTE 20 BUSINESS (1) BF38 NOTE 20 BUSINESS (2)&F41 NOTE 21 SELECTED QUARTERLY =F41 NOTE 21 SELECTED (1)y  8 Exhibit 121&{Subsidiaries of B Riley Financi l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??CB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } } $4       B. Riley Financial, Inc. 10-K 03/14/2018 FORM 10-K (Mark One) ?/ 'ANNUAL REPORT PURSUANT TO SECTION 13 OR / '15(d) OF THE SECURITIES EXCHANGE ACT OF ~ :   3 +For the fiscal year ended December 31, 2017$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h}qO[OC=PF0*8X> @ l  +  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10K!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0} +       B. Riley Financial, Inc. 10-K 03/14/2018 B. RILEY FINANCIAL, INC.Delaware 27-0223495' (State or Other Jurisdiction of, $(I.R.S. Employer Identification No.)& Incorporation or Organization)  * "21255 Burbank Boulevard, Suite 400~  Woodland Hills, CA0((Address of Principal Executive Offices) (Zip Code)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,B|znb8_A=PF0*8X> @ l  9=D  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INCItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } y } :}  9      B. Riley Financial, Inc. 10-K 03/14/20183+FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017 Page PART I    Item 1. Business~  Item 1A.  Risk Factors~ 2 Item 1B.! Unresolved Staff Comments~ Item 2. Properties~ Item 3.Legal Proceedings~ Item 4.Mine Safety Disclosures~ PART IIItem 5..&Market for Registrant?s Common Equity,~ /'Related Stockholders Matters and Issuer&Purchases of Equity SecuritiesItem 6.Selected Financial Data~ Item 7.,$Management?s Discussion and Analysis~ 80of Financial Condition and Results of OperationsItem 7A.0(Quantitative and Qualitative Disclosures~ About Market RiskItem 8..&Financial Statements and Supplementary~  DataItem 9.5-Changes in and Disagreements With Accountants~ .&On Accounting and Financial DisclosureDxlsg[O' ;jK3k'8 !"#$%&'()*+,-./012345678 Item 9A. Controls and Procedures~ !Item 9B.!Other Information~ !""#PART III#$$%Item 10.3%+Directors, Executive Officers and Corporate~ %&& Governance'Item 11.'Executive Compensation~ '(Item 12.3(+Securities Ownership and Certain Beneficial~ ()5)-Owners and Management and Related Stockholder**Matters+Item 13.7+/Certain Relationships and Related Transactions,~ +,!,and Director Independence-Item 14..-&Principal Accounting Fees and Services~ -../PART IV/001Item 15.21*Exhibits and Financial Statement Schedules~ 12Item 16.2Form 10-K Summary~ 233 Signatures~ 345$6____________________________17)Created by Morningstar Document Research.08(http://documentresearch.morningstar.com/6|dD,mS"'x=PF0*8X> @:887766//##  l  AYde  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEM!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } y#} $ } 7 A      B. Riley Financial, Inc. 10-K 03/14/2018Item 2. PROPERTIESLocation Use" Woodland Hills, California - %Headquarters; Accounting, Information  / 'Technology and Human Resources offices;  . &Appraisal, Auction and Liquidation and   United Online offices Atlanta, Georgia * "Appraisal, Capital Markets officesChicago, Illinois*"Appraisal, Capital Markets offices Dallas, Texas1)Appraisal, Auction & Liquidation, CapitalMarketsJupiter, FloridaAppraisal officesMilwaukee, WisconsinAppraisal officesNeedham, MassachusettsAppraisal offices%Winston-Salem, North CarolinaAppraisal officesNew York, New York6.Appraisal, Capital Markets, Wealth Management,and Legal offices Toledo, OhioAppraisal officesSydney, Australia%Auction & Liquidation officesArlington, VirginiaCapital Markets officesBaltimore, MarylandCapital Markets officesBasel, SwitzerlandCapital Markets officesBeachwood, OhioCapital Markets officesBirmingham, MichiganCapital Markets officesBoston, MassachusettsCapital Markets officesBrighton, MichiganCapital Markets officesD lth9A[HG1L !"#$%&'()*+,-./0123456789:;<=>?! Charlotte, North Carolina  Capital Markets offices!Coral Gables, Florida!!Capital Markets offices"Costa Mesa, California""Capital Markets offices# Dubuque, Iowa##Capital Markets offices$East Lansing, Michigan$$Capital Markets offices %Fort Lauderdale, Florida%%Capital Markets offices&Franklin, Tennessee&&Capital Markets offices'Great Neck, New York''Capital Markets offices(Houston, Texas((Capital Markets offices)Lafayette, Louisiana))Capital Markets offices*Los Angeles, California**Capital Markets offices+Memphis, Tennessee++Capital Markets offices,Mobile, Alabama,,Capital Markets offices-Nashville, Tennessee--Capital Markets offices.Newport Beach, CA..Capital Markets offices/Norwalk, Connecticut/2/*Capital Markets, Wealth Management offices0Palatine, Illinois00Capital Markets offices1Parsippany, New Jersey11Capital Markets offices2Plymouth, Michigan22Capital Markets offices3Richmond, Virginia33Capital Markets offices4Rye Brook, New York44Capital Markets offices!5San Francisco, California55Capital Markets offices6St. Charles, Illinois66Capital Markets offices7St. Louis, Missouri77Capital Markets offices8Tulsa, Oklahoma88Capital Markets offices9Wilton, Connecticut99Capital Markets offices:Munich, Germany::Retail offices;Hyderabad, India;;United Online offices<=$>____________________________1?)Created by Morningstar Document Research.D l\ r9Kff~*Bj^R@0@(http://documentresearch.morningstar.com/H=PF0*8X> @@@??>> l  &y  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIESFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } '} $ }  } $ }  } $                            B. Riley Financial, Inc. 10-K 03/14/2018*"Stock Market and Other Information High Low ~        $ Quarter ended March 31, 2016   %@   "@ # Quarter ended June 30, 2016    q= ףp'@    #@ (  Quarter ended September 30, 2016    Q*@    \(\!@ ' Quarter ended December 31, 2016    @3@    ffffff(@  ~  $Quarter ended March 31, 2017L5@L,@ #Quarter ended June 30, 20172@ffffff+@ ( Quarter ended September 30, 2017333333@.@ 'Quarter ended December 31, 20173333333@/@ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6 |pdXh!/d=PF0*8X> @J       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other Informat!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } } $       B. Riley Financial, Inc. 10-K 03/14/2018Five Year ComparisonAs of December 31,~ r~ v ~  z  ~ ~~ ~  B. Riley Financial, Inc. ~   ~ j  ~   ~   ~ 2  ~ n   Russell 2000 ~   ~ &  ~ :  ~   ~   ~   Industry Peer Group ~   ~ N  ~   ~   ~ R  ~    $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/&@~rfd\`]QE=PF0*8X> @                 l  0ܯs  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } :} $ }  } $ }  }  $ } } $ }  } $ }  } $ 0      B. Riley Financial, Inc. 10-K 03/14/20185-36 Consolidated Statement of Operations Data:Year Ended December 31,  ~   ~   ~ ~  ~ z  ~ v   Revenues:             Services and fees ~ &  ~ .   ~ 8  ~   ~  , $Interest income - Securities lending  ~      ?    ?    ?    ?   Sale of goods  ~    ~    ~    ~    ~  Total revenues~ ~ >   ~  6  ~ ~ Operating expenses:     Direct cost of services~ 6c~ f~  ~    ~ n~ JyCost of goods sold~ :~   ~  0  ~ ~ ʳ+#Selling, general and administrative~ B ~ >  ~  J  ~ ~ z8Restructuring charge~ Z~ <    ?  ~ ' ?-%Interest expense - Securities lending~ N ?    ?   ? ? Total operating expenses~ R~   ~  .  ~ )~ eOperating income (loss)~ ~ V  ~   Y  ~ ~  @Other income (expense):     Interest income~ ~   ~  F  ~ 2~ j$Loss from equity investments~ . ?    ?   ?~ >Interest expense~  }~   ~    ~ J~ V3+Income (loss) from operations before income~ v?~   ~  FL  ~ ^x~  taxes1)(Provision for) benefit from income taxes~  {~ >   ~    ~ -~ Net income (loss)~ ~~ Z  ~  &  ~ v~  80Net income (loss) attributable to noncontrolling~ ~   ~    ~ ~ zDlqeYM @#//..--'''''' ''''%%%%%% %%%%$$$$$$ $$$$!!!!!! !!!!          l  U  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ }  } $ }  }  $ }  } $ }  } $ } U} $       B. Riley Financial, Inc. 10-K 03/14/2018( Consolidated Balance Sheet Data:Year Ended December 31,  ~   ~   ~ ~  ~ z  ~ v ! Cash and cash equivalents ~ ^  ~   ~   ~ Q  ~ &  Restricted cash  ~ 3   ~ z3   ~    ~ w   ~  / 'Securities and other investments owned,  ~ B   ~    ~    ~     ?   at fair value Total assets~ bT~ &  ~    ~ {~ 6Total liabilities~ lD~   ~  h  ~ ގ~ Total equity (deficit)~ 9~ -   ~  "  ~ ~ &$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0 ~rfZIfQ% =PF0*8X> @r         l  (  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 7} $ }  } $ }  } U} $ } } $ }  } U (      B. Riley Financial, Inc. 10-K 03/14/2018)!Consolidated Statements of Income Year Ended   Year Ended   December 31, 2017   December 31, 2016   Amount   %   Amount   %   Revenues:                 Services and fees ~ &    fffffW@ % ~ .     33333U@ %, $Interest income - Securities lending  ~      333333@ %   ?   ~  % Sale of goods~ ? %  ~    ffffff+@ %Total revenues~ ~  %  ~  >   ~  %     Operating expenses:     Direct cost of services~ 6c3333331@ %  ~  f~  5@ %Cost of goods sold~ :? %  ~    333333@ %4,Selling, general and administrative expenses~ B fffffP@ %  ~  >  ̌E@ %Restructuring charge~ Zffffff@ %  ~  <  ~   %-%Interest expense - Securities lending~ N @ %    ?  ~  % Total operating expenses~ R~ n %  ~    R@ %Operating income~ ~ & %  ~  V  9@ %Other income (expense):     Interest income~ ? %  ~    ? %!Loss on equity investment~ . %)    ?  ~  %Interest expense~  } %)  ~    ~  %)"Income before income taxes~ v?@ %  ~    333338@ %"Provision for income taxes~  { %)  ~  >    %) Net income~ ~ @ %  ~  Z  3333331@ %Dl}qeY=@Uq,?L`h !"#$%&'1 )Net income attributable to noncontrolling  ~     ? %  ~     @ %! interests6".Net income attributable to B. Riley Financial,"~ """"" @ "%" ~ " ZP" " ""&@ "% #Inc.$$%____________________________1&)Created by Morningstar Document Research.0'(http://documentresearch.morningstar.com/]=PF0*8X> @z''&&%%""""        l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } -} $ }  } $ }  } $} $ } } $ }  } $} $ }  } $ }  } U       B. Riley Financial, Inc. 10-K 03/14/2018 41 Revenues$Year Ended December 31, 2017 $ Year Ended December 31, 2016Change   Amount   %   Amount   %   Amount   % % Revenues - Services and fees:                         Capital Markets segment ~ ^     J@ % ~ f    333334@ % ~ #   ~ N %' Auction and Liquidation segment  ~ B    ffffff-@ %  ~     @@@ %  ~ 6    7 %)' Valuation and Appraisal segment  ~     $@ %  ~     333330@ %  ~    ~  %-%Principal Investments - United Online~ #~ B %  ~  r  ffffff0@ %~ N;fffff&P@ %segmentSubtotal~ &fffffW@ %  ~  .   33333U@ %~ ffffffU@ %      Revenues - Sale of goods     'Auction and Liquidation segment~ ~  %  ~    333333+@ %~ l~ r %)-%Principal Investments - United Online~ ? %  ~    ? %~ 0@ %segmentSubtotal~ ? %  ~    ffffff+@ %~ l33333X %)     -%Interest income - Securities lending:     Capital Markets segment~  333333@ %    ?  ~  %~   n/mTotal revenues~ ~  % ~  >   ~  %~  33333SQ@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/Dl{owAx>s`> =PF0*8X> @          l  3  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 RevenuesOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } <(} $ } } $} $ } U} U} $ } U} U} $ }  } $} $ } U} $} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018:2Sale of Goods, Cost of Goods Sold and Gross Margin$Year Ended December 31, 2017  $Year Ended December 31, 2016    Auction and    Principal   Total    Auction and    Principal   Total     Liquidation    Investments -        Liquidation    Investments -   Segment   United Online Segment       Segment   United Online Segment Revenues - Sale of Goods ~   ~   ~   ~   ~   ~   ? Cost of goods sold  ~     ~ 2   ~ :   ~    ~    ~  )!Gross margin on services and fees~ ~  ~    ~ f~ "~      Gross margin percentagefffff@@ %L> %)   =  %) 33333E@ %@ %E@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0 l`THjY-~=PF0*8X> @                     l  O  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods Sol!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } <(} $ }  } $} $ }  } $} $ } } $} $ }  } $} $ }  } $} $ }  } $}  $ !!!!!!!!!! ! ! ! ! !!!!!!!!!! B. Riley Financial, Inc. 10-K 03/14/2018Operating Expenses$Year Ended December 31, 2017$Year Ended December 31, 2016     Auction and    Valuation and    Principal   Total    Auction and    Valuation and    Principal   Total     Liquidation    Appraisal    Investments -        Liquidation    Appraisal    Investments -   Segment   Segment    United Online       Segment   Segment    United Online           Segment               Segment$ Revenues - Services and fees ~ B  ~   ~ #      ~   ~   ~ r     Direct cost of services~ ~ r  ~    ~ 6c~ ~ ~~ ~ f~ )!Gross margin on services and fees~ >1~ ^  ~  [  ~ "~ ~ vZ       Gross margin percentageD@ %33333K@ %   fffffR@  % 33333Q@ %~  %Q@ % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2thd*=PF0*8X> @J)                            l  i  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating ExpensesConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ }  } $ }  } $} $ } } $ }  } $} $ }  } $ }  } U       B. Riley Financial, Inc. 10-K 03/14/2018?7Selling, General and Administrative Expenses by Segment Year Ended   Year EndedChange   December 31, 2017   December 31, 2016   Amount   %   Amount   %   Amount   %  Capital Markets segment ~ zd     33333R@ % ~ r    @D@ % ~  ]    fffffv@ %' Auction and Liquidation segment  ~ z    333333@ %  ~ V    1@ %  ~ &    fffffD %)' Valuation and Appraisal segment  ~     ffffff@ %  ~ ֊    %@ %  ~      %)-%Principal Investments - United Online~ 333333!@ %  ~  R  '@ %~ 6LW@ %segment#Corporate and Other segment~ 6r333333&@ %  ~  V  333333@ %~ uYG@ %/'Total selling, general & administrative~ B ~  % ~  >  ~  %~ c@ %expenses$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2Z g[OCGNFe#=PF0*8X> @            l  %9  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and Administrat 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 7} $ }  } $ }  } U} $ } } $ }  } U %      B. Riley Financial, Inc. 10-K 03/14/2018)!Consolidated Statements of Income Year Ended   Year Ended   December 31, 2016   December 31, 2015   Amount   %   Amount   %   Revenues:             Services and fees ~ .     33333U@ % ~ 8    fffffV@ %  Sale of goods  ~     ffffff+@ %  ~     "@ %Total revenues~ > ~  %  ~  6  ~  %     Operating expenses:     Direct cost of services~ f~5@ %  ~    9@ %Cost of goods sold~ 333333@ %  ~  0  @ %4,Selling, general and administrative expenses~ >̌E@ %  ~  J  fffffI@ %Restructuring charge~ <~   %    ?  ~  % Total operating expenses~ R@ %  ~  .  T@ %Operating income~ V9@ %  ~   Y  3@ %Other income (expense):     Interest income~ ? %  ~  F  ~  %Interest expense~ ~  %)  ~    ffffff %)"Income before income taxes~ 333338@ %  ~  FL  fffff2@ %"Provision for income taxes~ >  %)  ~    333333 %) Net income~ Z3333331@ %  ~  &  333333(@ %1)Net income attributable to noncontrolling~ @ %  ~    ? % interests6.Net income attributable to B. Riley Financial,~ ZP&@ % ~  v  %@ %Dl}qeY8av+H_s{ !"#$ Inc.!$"____________________________1#)Created by Morningstar Document Research.0$(http://documentresearch.morningstar.com/P=PF0*8X> @z$$##""        l  v  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1)Sale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } -} $ }  } $ }  } $} $ } } $ }  } $} $ }  } $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018 46 Revenues Year Ended   Year EndedChange   December 31, 2016   December 31, 2015   Amount   %   Amount   %   Amount   % % Revenues - Services and fees:                         Capital Markets segment ~ f    333334@ % ~ %    L?@ % ~ @    '@ %' Auction and Liquidation segment  ~     @@@ %  ~ ,    33333?@ %  ~ J    lR@ %'Valuation and Appraisal segment~ 333330@ %  ~  &  ;@ %~  ~   %-%Principal Investments - United Online~ rffffff0@ %    ?   n/m~ r n/msegmentSubtotal~ . 33333U@ %  ~  8  fffffV@ %~ ̌N@ %      Revenues - Sale of goods     'Auction and Liquidation segment~ 333333+@ %  ~    "@ %~ n~ B %-%Principal Investments - United Online~ ? %    ?   n/m~  n/msegmentSubtotal~ ffffff+@ %  ~    "@ %~ Pb@ %Total revenues~ > ~  % ~  6  ~  %~  LQ@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@WD{osz1/j>5"j=PF0*8X> @            l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesOperating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } <(} $ }  } $} $ } U} $} $ } } $} $ }  } $} $ } } $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018:2Sale of Goods, Cost of Goods Sold and Gross Margin$Year Ended December 31, 2016  $Year Ended December 31, 2015       Principal          Principal        Auction and    Investments -       Auction and    Investments -        Liquidation    United Online       Liquidation    United Online       Segment   Segment   Total   Segment   Segment   Total  Revenues - Sale of Goods ~   ~   ~   ~    $?  ~  Cost of goods sold~ ~   ~    ~ 0 ?~ 0)!Gross margin on services and fees~ f~ " ~    ~ u $?~ u     Gross margin percentage33333E@ %@ %   E@  % ~  % n/m~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2 l`THC2e=PF0*8X> @ !                       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } <(} $ }  } $} $ }  } $} $ } } $} $ }  } $} $ }  } $} $ } }  $ !!!!!!!!!! ! ! ! ! !!!!!!!!!! B. Riley Financial, Inc. 10-K 03/14/2018Operating Expenses$Year Ended December 31, 2016$Year Ended December 31, 2015     Auction and    Valuation and    Principal   Total    Auction and    Valuation and    Principal   Total     Liquidation    Appraisal    Investments -        Liquidation    Appraisal    Investments -   Segment   Segment    United Online       Segment   Segment    United Online           Segment               Segment$ Revenues - Services and fees ~   ~   ~ r      ~ ,  ~ &   $?     Direct cost of services~ ~ ~  ~    ~ f~~ ~  ?~  )!Gross margin on services and fees~ "~  ~  vZ  ~ :~ F $?       Gross margin percentage33333Q@ %~  %   Q@  % @L@ %333333L@ % n/m $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2thd*=PF0*8X> @J)                            l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ }  } $ }  } $} $ } } $ }  } $} $ }  } $ } U} U       B. Riley Financial, Inc. 10-K 03/14/2018?7Selling, General and Administrative Expenses by Segment Year Ended   Year EndedChange   December 31, 2016   December 31, 2015   Amount   %   Amount   %   Amount   %  Capital Markets segment ~ r    @D@ % ~ r    YJ@ % ~ '    333333 @ %' Auction and Liquidation segment  ~ V    1@ %  ~     ,@ %  ~ ]    Q@ %' Valuation and Appraisal segment  ~ ֊    %@ %  ~ Z    /@ %  ~ ~    ffffff %)-%Principal Investments - United Online~ R'@ %    ?   n/m~ R n/msegment#Corporate and Other segment~ V333333@ %  ~  ޛ  3333331@ %~ z`33333N@ %/'Total selling, general & administrative~ >~  % ~  J  ~  %~ sffffffD@ %expenses$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2P g[OCGNGo- =PF0*8X> @            l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)Contractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 1} $ }  } $ }  }  $ } } $                         B. Riley Financial, Inc. 10-K 03/14/2018'Liquidity and Capital ResourcesYear Ended December 31,   ~   ~   ~ ~    (Dollars in thousands) ' Net cash (used in) provided by:             Operating activities ~    ~ b  ~   Investing activities  ~    ~    ~ L Financing activities~ :/~ Rw  ~  I *"Effect of foreign currency on cash~ ~ &  ~   1)Net increase in cash and cash equivalents~ C~  ~  r $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/05sg[PM, =PF0*8X> @r          l  M#  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital Resources Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0} $ }  } $ }  }  $ } } $ }  } $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018Contractual ObligationsPayments due by period    Total    Less Than    1-3 Years    4-5 Years    More Than        One Year           5 years   (Dollars in thousands)  Contractual Obligations                    # Operating lease obligations ~ >|   ~    ~    ~ ֥   ~   Notes payable~ '~    ~  2  ~   ?0(Senior notes payable, including interest~ *~   ~    ~ &~ n5 Total~ 6~ R ~    ~ ~ 65$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0 {oc5x=PF0*8X> @         l  9t9xD  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual ObligationsExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } } $ } y<} $ } }  }   9      B. Riley Financial, Inc. 10-K 03/14/2018 Exhibit Index!Incorporated by Reference  Exhibit No.   Description  Form Exhibit  Filing Date        2.1+ 2 *Acquisition Agreement, dated May 19, 2014,  8-K @  5/19/2014  2 *by and among the registrant, Darwin Merger  3 +Sub I, Inc., B. Riley Capital Markets, LLC,6.B. Riley and Co. Inc., B. Riley & Co. Holding,-%LLC, Riley Investment Management LLC,and Bryant Riley. 2.2+1)Agreement and Plan of Merger, dated as of 8-K@5/6/20161)May 4, 2016, by and among the registrant,2*Unify Merger Sub, Inc., and United Online, Inc. 2.3+/'Amended and Restated Agreement and Plan S-4/A Appendix A5/1/20172*of Merger, dated as of March 15, 2017, and(File No. 333-216763)1)effective as of February 17, 2017, by and6.among FBR & Co., the registrant and BRC Merger Sub, LLC. 2.4+3+Merger Agreement, dated as of May 17, 2017, 8-K@ 5/18/20174,by and among the registrant, Foxhound Merger1)Sub, Inc., Wunderlich Investment Company,D lymDbxC]F5i !"#$%&'()*+,-./012345678  0 (Inc. and the Stockholder Representative.!!!!!!! "2.5+"1")Agreement and Plan of Merger, dated as of" "8-K"@" 11/9/2017##6#.November 9, 2017, by and among the registrant,$$5$-B. R. Acquisition Ltd. and magicJack VocalTec%% %Ltd.&&&&&&&'@':'2Amended and Restated Certificate of Incorporation,' '8-K'@' 8/18/2015(($(dated as of August 17, 2015.)))))))* @*0*(Amended and Restated Bylaws, dated as of* *10-Q* @* 11/6/2014+++November 6, 2014.,,,,,,,-ffffff@-)-!Form of common stock certificate.- -10-K-ffffff@- 3/30/2015......./@///'Base Indenture, dated as of November 2,/ /8-K/ffffff@/ 11/2/201600/0'2016, by and between the registrant and1131+U.S. Bank National Association, as Trustee.22222223333333@3.3&First Supplemental Indenture, dated as3 38-K3@3 11/2/201644:42of November 2, 2016, by and between the registrant55.5&and U.S. Bank National Association, as$6____________________________17)Created by Morningstar Document Research.08(http://documentresearch.morningstar.com/6 `{*|^|Oi=PF0*8X> @"887766 l  LZbh m  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } U} $ } y<} $ } } U}  L      B. Riley Financial, Inc. 10-K 03/14/2018 Exhibit Index@+#Form of 7.50% Senior Note due 2021. 8-K@ 11/2/2016        @ , $Second Supplemental Indenture, dated  8-K ffffff@  5/31/2017  9 1as of May 31, 2017, by and between the registrant  . &and U.S. Bank National Association, as   Trustee.ffffff@+#Form of 7.50% Senior Note due 2027. 8-Kffffff@ 5/31/2017@.&Third Supplemental Indenture, dated as 8-Kffffff@ 12/13/20170(of December 13, 2017, by and between the6.registrant and U.S. Bank National Association, as Trustee.333333@+#Form of 7.25% Senior Note due 2027. 8-Kffffff@ 12/13/2017333333$@/'Security Agreement, dated as of October 10-Q%@ 8/31/2009/'21, 2008, by and between Great American4,Group WF, LLC and Wells Fargo Bank, National-%Association (Successor to Wells FargoRetail Finance, LLC).ffffff$@4,Escrow Agreement, dated as of July 31, 2009, 8-K333333%@8/6/20091)by and among Alternative Asset ManagementD lym[/LeD`1[ !"#$%&'()*+,-./0123456789:;<=>?  1 )Acquisition Corp., the registrant, Andrew!!-!%Gumaer, as the Member Representative,""."&and Continental Stock Transfer & Trust###Company.$$$$$$$ %10.3#%4%,Form of Director and Officer Indemnification% %8-K%Q8$@%8/6/2009&&& Agreement.'''''''($@(-(%Loan and Security Agreement (Accounts( (8-K(333333$@( 5/26/2011))/)'Receivable & Inventory Line of Credit),**4*,dated as of May 17, 2011, by and between BFI++1+)Business Finance and Great American Group,,+,#Advisory & Valuation Services, LLC.-------.%@.5.-Second Amended and Restated Credit Agreement,. .8-K.333333$@. 7/19/2013//1/)dated as of July 15, 2013, by and between0040,Great American Group WF, LLC and Wells Fargo11#1Bank, National Association.22222223333333%@323*Third Amended and Restated Guaranty, dated3 38-K3ffffff$@3 7/19/201344:42as of July 15, 2013, by and between the registrant55/5'and Great American Group, LLC, in favor6626*of Wells Fargo Bank, National Association.77777778ffffff%@828*Uncommitted Liquidation Finance Agreement,8 88-K8333333$@8 3/25/20149939+dated as of March 19, 2014, by and among GA::4:,Asset Advisors Limited, each special purpose;;/;'vehicle affiliated to GA Asset Advisors<<0<(Limited which accedes to such agreement,==&=and Burdale Financial Limited.>>>?%@?-?%Master Guarantee and Indemnity, dated? ?8-K?ffffff$@? 3/25/2014Dq lj \t>t& @KKJJII l  Jy}  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } } $ } I;} $ } }  }  J      B. Riley Financial, Inc. 10-K 03/14/2018 Exhibit Index10.10#2*Amended and Restated Employment Agreement, 8-K333333%@ 5/19/2014  4 ,dated as of May 19, 2014, by and between the  % registrant and Andrew Gumaer.        Q8$@ . &Form of Registration Rights Agreement.  8-K ffffff$@  5/19/2014       = ףp=$@/'First Amendment to Credit Agreement and 10-Q%@ 8/14/2014/'Limited Consent and Waiver, dated as of4,May 28, 2014, by and among Wells Fargo Bank,,$National Association, Great American1)Group WF, LLC, Great American Group, Inc.&and Great American Group, LLC.(\B$@/'Subordinated Unsecured Promissory Note, 10-Q%@5/7/20156.dated March 10, 2015, issued by the registrant*"to Riley Investment Partners, L.P.HzG$@2*Third Amendment to Credit Agreement, dated 10-Qffffff%@5/7/20154,as of February 5, 2015, by and between Great4,American Group WF, LLC and Wells Fargo Bank,National Association.L$@-%Fourth Amendment to Credit Agreement, 10-Q%@5/7/20155-dated as of February 19, 2015, by and betweenD lymF` x-H3Mp !"#$%&'()*+,-./0123456789:;<=>?  0 (Great American Group WF, LLC, GA Retail,!!8!0Inc. and Wells Fargo Bank, National Association."""""""#10.16##1#)Amended and Restated 2009 Stock Incentive# #10-Q#333333$@# 8/11/2015$$ $Plan.%%%%%%%&10.17#&1&)Amended and Restated 2009 Stock Incentive& &10-Q&ffffff$@& 8/11/2015''7'/Plan ? Form of Restricted Stock Unit Agreement.((((((()10.18#)1))Amended and Restated 2009 Stock Incentive) )10-Q)$@) 8/11/2015**4*,Plan ? Stock Bonus Program and Form of Stock+++Bonus Award Agreement.,,,,,,,-10.19#-/-'Employment Agreement, dated as of April- -10-Q-$@- 8/11/2015../.'13, 2015, by and between the registrant///and Alan N. Forman.0000000110.20#111)B. Riley Financial, Inc. Management Bonus1 18-K1333333$@1 8/18/201522 2Plan.33333334Qk$@424*Fifth Amendment to Credit Agreement, dated4 410-Q4333333$@48/5/20165525*June 10, 2016, by and among Great American6606(Group WF, LLC, GA Retail, Inc. and Wells77)7!Fargo Bank, National Association.88888889q= ףp$@909(Sixth Amendment and Joinder under Credit9 910-Q9333333$@9 11/14/2016::/:'Facility among Great American Group WF,;;6;.LLC and Wells Fargo Bank, National Association<<"<as Lender October 5, 2016.=======>(\u$@>3>+Underwriting Agreement, dated as of October> >8-K>?> 11/2/2016??9?127, 2016, by and among the registrant, WunderlichD.l` vMc&Hi2I 6Wm">@ABCDEFGHI@@3@+Securities, Inc. and Compass Point ResearchAA/A'& Trading LLC, as representative of theBB+B#several underwriters named therein.CCCCCCCD10.24#D2D*Employment Agreement, dated as of FebruaryD D8-KD333333$@D6/1/2017EE3E+17, 2017, by and among B. Riley & Co., LLC,FF.F&Richard J. Hendrix and the registrant.$G____________________________1H)Created by Morningstar Document Research.0I(http://documentresearch.morningstar.com/f6u=PF0*8X> @IIHHGG l  P^  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } } $ } y<} $ } }  }  P      B. Riley Financial, Inc. 10-K 03/14/2018 Exhibit Index$@/'Credit Agreement, dated as of April 13, 10-Q333333$@ 5/10/2017  / '2017, by and among United Online, Inc.,  / 'the subsidiaries of United Online, Inc.  0 (from time to time party thereto and Banc   of California, N.A.       Q$@/'Security and Pledge Agreement, dated as 10-Qffffff$@8/8/20176.of April 13, 2017, by and among United Online,0(Inc., the subsidiaries of United Online,0(Inc. from time to time party thereto and Banc of California, N.A. ףp=$@1)Unconditional Guaranty, dated as of April 10-Q$@8/8/20174,13, 2017, by the registrant in favor of Bancof California, N.A..(\$@.&Seventh Amendment to Credit Agreement, 8-K333333$@ 4/27/20176.dated as of April 21, 2017, by and among Great0(American Group WF, LLC, GA Retail, Inc.,0(GA Retail Canada, ULC, Wells Fargo Bank,4,National Association and Wells Fargo Capital#Finance Corporation Canada.10.29#1)Employment Agreement, dated as of May 17, 8-Kffffff$@7/5/2017D lymCl;_zB\ r" !"#$%&'()*+,-./0123456789:;<=>?  5 -2017, by and among the registrant, Wunderlich!!8!0Investment Company, Inc. and Gary K. Wunderlich,"" "Jr.#######$$@$/$'Underwriting Agreement, dated as of May$ $8-K$?$ 5/24/2017%%2%*23, 2017, by and among the registrant, FBR&&4&,Capital Markets & Co. and B. Riley & Co. LLC''6'.as representatives of the several underwriters(((named therein.)))))))*Q$@*1*)At Market Issuance Sales Agreement, dated* *8-K*?* 6/28/2017++:+2as of June 28, 2017, by and between the registrant,,%,and FBR Capital Markets & Co.-------.p= ף$@.4.,Warrant Agreement, dated as of July 3, 2017,. .8-K.333333$@.7/5/2017//5/-by and between the registrant and Continental00'0Stock Transfer & Trust Company.1111111210.33#2,2$Registration Rights Agreement, dated2 28-K2$@27/5/20173373/as of July 3, 2017, by and among the registrant44/4'and the persons listed on the signature555pages thereto.66666667Gz$@7,7$Consulting Services Agreement, dated7 710-Q7%@78/8/20178828*as of July 3, 2017, by and between Richard9909(J. Hendrix and FBR Capital Markets & Co.:::;;;<10.35#<0<(Severance Agreement and General Release,< <10-Q<333333$@<8/8/2017==2=*dated as of July 3, 2017, by and among the>>3>+registrant, Richard J. Hendrix, FBR Capital??.?&Markets & Co. and B. Riley & Co., LLC.DH l[4M]+BWo,Iy%G@ABCDEFGHIJKLMNO@@@@@@@AQ$@A4A,Underwriting Agreement, dated as of DecemberA A8-KA?A 12/6/2017BB0B(6, 2017, by and among the registrant andCC0C(B. Riley FBR, Inc., as representative ofDD/D'the several underwriters named therein.EEEEEEEF= ףp$@F1F)At Market Issuance Sales Agreement, datedF F8-KF?F 12/19/2017GG8G0December 18, 2017, by and between the registrantHHHand B. Riley FBR, Inc.IIIIIIIJ10.38#J1J)Employment Agreement, dated as of JanuaryJ J8-KJ333333$@J1/5/2018KK2K*1, 2018, by and between the registrant andLLLBryant R. Riley.$M____________________________1N)Created by Morningstar Document Research.0O(http://documentresearch.morningstar.com/$,|1GeO'=PF0*8X> @OONNMM l  In  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } y } $ } :} $ } }  }  I      B. Riley Financial, Inc. 10-K 03/14/2018 Exhibit Index10.39#1)Employment Agreement, dated as of January 8-Kffffff$@1/5/2018  2 *1, 2018, by and between the registrant and   Thomas J. Kelleher.        10.40# 1 )Employment Agreement, dated as of January  8-K $@ 1/5/2018  5 -1, 2018, by and between Great American Group,LLC. and Andrew Gumaer.10.41#1)Employment Agreement, dated as of January 8-K$@1/5/20182*1, 2018, by and between the registrant andPhillip J. Ahn.10.42#*1)Employment Agreement, dated as of January2*1, 2018, by and between the registrant andAlan N. Forman.\($@80Debt Conversion and Purchase and Sale Agreement, 8-K333333$@ 1/16/20185-dated January 12, 2018, by and among B. Riley.&Financial, Inc., bebe stores, inc. and'The Manny Mashouf Living Trust. 12.1*2*Computation of Ratios of Earnings to FixedChargesD lymTlw#Q.Py !"#$%&'()*+,-./0123456789:;<=>? 21.1*  Subsidiary List    !!!!!!! "23.1*""Consent of Marcum LLP""""####### $31.1*$0$(Certification of Chief Executive Officer$$$$%%7%/pursuant to Rules 13a-14 and 15d-14 promulgated&&1&)under the Securities Exchange Act of 1934''''''' (31.2*(0((Certification of Chief Financial Officer(((())7)/pursuant to Rules 13a-14 and 15d-14 promulgated**1*)under the Securities Exchange Act of 1934+++++++,32.1**,0,(Certification of Chief Executive Officer,,,,--6-.pursuant to 18 U.S.C. Section 1350, as adopted..5.-pursuant to Section 906 of the Sarbanes-Oxley/// Act of 20020000000132.2**101(Certification of Chief Financial Officer11112262.pursuant to 18 U.S.C. Section 1350, as adopted3353-pursuant to Section 906 of the Sarbanes-Oxley444 Act of 200255555556101.INS*66XBRL Instance Document666677777778101.SCH*8/8'XBRL Taxonomy Extension Schema Document88889999999:101.CAL*:4:,XBRL Taxonomy Extension Calculation Linkbase::::;;;Document<<<<<<<=101.DEF*=3=+XBRL Taxonomy Extension Definition Linkbase====>>>Document???????D lDa 9sDnH#@ABCDEFGH@101.LAB*@.@&XBRL Taxonomy Extension Label Linkbase@@@@AAADocumentBBBBBBBC101.PRE*C,C$XBRL Taxonomy Extension PresentationCCCCDDDLinkbase DocumentE$F____________________________1G)Created by Morningstar Document Research.0H(http://documentresearch.morningstar.com/~R~I==PF0*8X> @HHGGFF l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } U} I;       B. Riley Financial, Inc. 10-K 03/14/2018NO TITLE *Filed herewith. ** Furnished herewith. +3 +Schedules to this exhibit have been omitted 0 (pursuant to Item 601(b)(2) of Regulation 4 ,S-K. The registrant hereby agrees to furnish 9 1a copy of any omitted schedules to the Securities-%and Exchange Commission upon request. #0(Management contract or compensatory planor arrangement.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0~rJU g[O'=PF0*8X> @ l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } } 0       B. Riley Financial, Inc. 10-K 03/14/2018 68 SIGNATURES B. Riley Financial, Inc.   Date: March 13, 2018 / s / PHILLIP J. AHN 0 ((Phillip J. Ahn, Chief Financial Officer $ and Chief Operating Officer) $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(Tym=%pdX0=PF0*8X> @ l  #  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURESCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 2}        B. Riley Financial, Inc. 10-K 03/14/20182*INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page/ 'Report of Independent Registered Public F-2 Accounting Firm/ 'Report of Independent Registered Public F-30 (Accounting Firm on Internal Control Over Financial Reporting#Consolidated Balance Sheets F-4)!Consolidated Statements of Income F-50(Consolidated Statements of Comprehensive F-6Income)!Consolidated Statements of Equity F-7-%Consolidated Statements of Cash Flows F-82*Notes to Consolidated Financial Statements F-9$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8th\P4aB {?z=PF0*8X> @ l  A*2::  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 6} $ }  } $ }  } $ A                                  B. Riley Financial, Inc. 10-K 03/14/2018#CONSOLIDATED BALANCE SHEETS December 31, December 31,  ~   ~   Assets         Assets        ! Cash and cash equivalents ~ ^  ~   Restricted cash  ~ 3   ~ z3 !Due from clearing brokers~  ?/'Securities and other investments owned,~ B~  at fair valueSecurities borrowed~ B1 ? Accounts receivable, net~ 8~ ( Due from related parties~ X~ /+#Advances against customer contracts~ bQ~ )!Prepaid expenses and other assets~ 6a~ Y#Property and equipment, net~ &~ fZGoodwill~ N~ $Other intangible assets, net~ y~ :Deferred income taxes~ ~  Total assets~ bT~ &Liabilities and Equity LiabilitiesAccounts payable~ j)~ >*.&Accrued expenses and other liabilities~ `~ >Deferred revenue~ 1~ @Dlwk_)F? jNJah ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ?  Due to partners  ~    ~ ֜ )!!Securities sold not yet purchased!!~ !!!!~ !: !"Securities loaned""~ "1""" "?"-#%Mandatorily redeemable noncontrolling##~ #E###~ #>#$ interests)%!Acquisition consideration payable%% %?%%%~ %6%& Notes payable&&~ &#&&& &?&'Senior notes payable''~ 'm '''~ 'Ұ' (Contingent consideration(( (?(((~ (j()Total liabilities))~ )lD)))~ ))*********%+Commitments and contingencies++++++++.,&B. Riley Financial, Inc. stockholders?,,,,,,,,-equity:5.-Preferred stock, $0.0001 par value; 1,000,000.. .?... .?.&/shares authorized; none issued30+Common stock, $0.0001 par value; 40,000,00000~ 0 000~ 0 041,shares authorized; 26,569,462 and 19,140,34212)issued and outstanding as of December 31,03(2017 and December 31, 2016, respectively"4Additional paid-in capital44~ 42444~ 4ʝ45Retained earnings55~ 5f555~ 5~5,6$Accumulated other comprehensive loss66~ 6666~ 6B647,Total B. Riley Financial, Inc. stockholders?77~ 7<777~ 7 78equity 9Noncontrolling interests99~ 9"999~ 9V9: Total equity::~ :9:::~ :- :$;Total liabilities and equity;~ ;bT;;~ ;&;<=$>____________________________1?)Created by Morningstar Document Research.D'lp66.94 XFB@ 0@(http://documentresearch.morningstar.com/H=PF0*8X> @z@@??>>;;;;     l  /W_  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 7} $ }  } $ }  }  $ } } $ /                                  B. Riley Financial, Inc. 10-K 03/14/2018)!CONSOLIDATED STATEMENTS OF INCOMEYear Ended December 31,   ~   ~   ~ ~   Revenues:    Services and fees ~ &  ~ .   ~ 8 , $Interest income - Securities lending  ~      ?    ?   Sale of goods  ~    ~    ~  Total revenues~ ~ >   ~  6 Operating expenses:    Direct cost of services~ 6c~ f~  ~   Cost of goods sold~ :~   ~  0 4,Selling, general and administrative expenses~ B ~ >  ~  J Restructuring charge~ Z~ <    ? -%Interest expense - Securities lending~ N ?    ?  Total operating expenses~ R~   ~  . Operating income~ ~ V  ~   Y Other income (expense):    Interest income~ ~   ~  F #Loss from equity investment~ . ?    ? Interest expense~  }~   ~   "Income before income taxes~ v?~   ~  FL "Provision for income taxes~  {~ >   ~    Net income~ ~~ Z  ~  & 1)Net income attributable to noncontrolling~ ~   ~    interestsD|l}qeY[YA E&uL ! " # $ % & ' ( ) * + , - . 6 .Net income attributable to B. Riley Financial, ~   ~ ZP  ~ v  !Inc."""""""""" " " " #Basic income per share##?### ףp= ?## # \(\?#  $Diluted income per share$$Q?$$$Q?$$ $ \(\?$ %%%%%%%%%% % % %  &Cash dividends per share&&q= ףp?&&&Q?&& & {Gz?& '''''''''' ' ' ' 1()Weighted average basic shares outstanding((~ (2(((~ (#Q(( ( ~ (  ( 3)+Weighted average diluted shares outstanding))~ )b)))~ )b)) ) ~ ) ) *+$,____________________________1-)Created by Morningstar Document Research.0.(http://documentresearch.morningstar.com/"TDf(=PF0*8X> @.. -- ,, &&&&&& $$$$$$ ######         l  s  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } $4} $ }  } $ }  }  $ } } $                           B. Riley Financial, Inc. 10-K 03/14/201880CONSOLIDATED STATEMENTS OF COMPHREHENSIVE INCOMEYear Ended December 31,   ~   ~   ~ ~   Net income ~ ~  ~ Z  ~ & * "Other comprehensive income (loss):            3 +Change in cumulative translation adjustment  ~ j   ~    ~  . &Other comprehensive income (loss), net  ~ j   ~    ~  of tax"Total comprehensive income~ ~ "  ~   ,$Comprehensive income attributable to~ ~   ~    noncontrolling interests,$Comprehensive income attributable to~ ~ "F ~    B. Riley Financial, Inc.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4Q nbVJ?rP, =PF0*8X> @j          l  <  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } >} $ } $} $ } $}  $ } } $ } $} $ }  } $ }  } $ }  } $ }  } "$ } ## } $$$ <%%%%%%%%%% % % % % %%%%%%%%%%%%%%%%%%% B. Riley Financial, Inc. 10-K 03/14/2018)!CONSOLIDATED STATEMENTS OF EQUITY   Accumulated !"$                Additional   Retained   Other     ! " $   Preferred Stock    Common Stock   Paid-in   Earnings    Comprehensive   Noncontrolling  ! "Total $   Shares   Amount   Shares   Amount   Capital    (Deficit)   Loss    Interests  ! "Equity $ Balance, January 1, 2015   ?   $?   ~ ~  ~    ~   ~ 6  ~   ~ J  !~ " $0 (Issuance of common stock for acquisition   ?    ?   ~ VX    ?   ~ H    ?    ?    ?  ! "~ #H $2*of MK Capital Advisors, LLC and contingent0(equity consideration on February 2, 20152*Vesting of restricted stock, net of shares ? ?  ~     ?~ 6 ? ? ? !"~ #6$#withheld for employer taxesShare based payments ? ?    ?   ?~  ? ? ? !"~ #$!Dividends on common stock ? ?    ?   ? ?~ v ? ? !"~ #v$ Net income ? ?    ?   ? ?~ v ?~  !"~ #&$1)Distributions to noncontrolling interests ? ?    ?   ? ? ? ?~ 2 !"~ #2$/'Foreign currency translation adjustment ? ?    ?   ? ? ?~  ? !"~ #$"Balance, December 31, 2015 ? $?  ~    ~  ~  ~ ~~ z~ * !~ ""$0(Issuance of common stock for acquisition ? ?  ~  .,    ? ? ? ? ? !" #?$<4of MK Capital, LLC - contingent equity considerationon February 2, 20162*Vesting of restricted stock, net of shares ? ?  ~  b   ?~  ? ? ? !"~ #$#withheld for employer taxes1)Offering of common stock, net of offering ? ?  ~  Ó   ?~ c ? ? ? !"~ #c$expensesShare based payments ? ?    ?   ?~ B+ ? ? ? !"~ #B+$D!l}qeYFqK%#Cq %!%"%#%$%%%&%'%(%)%*%+%,%-%.%/%0%1%2%3%4%5%6%7%8%9%:%;%! Dividends on common stock   ?    ?    ?    ?    ?   ~     ?    ?  ! "~ # $! Net income!! !?!!! !?!! !  ! ?! ! ! !?!!! !?!!!~ !ZP!!! !?!!!~ !.! !!!"~ !#b!$/"'Foreign currency translation adjustment"" "?""" "?"" "  " ?" " " "?""" "?""" "?"""~ """" "?" "!""~ "#"$"#Balance, December 31, 2016## #?## #$?## # ~ # ;# # ~ # ##~ #ʝ##~ #~##~ #B##~ #V# #!~ #"- #$0$(Issuance of common stock for acquisition$$ $?$$$ $?$$ $ ~ $ *, $ $ $ $?$$$~ $$$$ $?$$$ $?$$$ $?$ $!$"~ $#$$<%4of MK Capital, LLC - contingent equity consideration&on February 2, 20170'(Issuance of common stock for acquisition'' '?''' '?'' ' ~ ' R ' ' ' '?'''~ '''' '?''' '?''' '?' '!'"~ '#'$.(&of Dialectic general partner interests)on April 13, 20170*(Issuance of common stock for acquisition** *?*** *?** * ~ * j#* * * *?***~ *{*** *?*** *?*** *?* *!*"~ *#{*$$+of FBR & Co. on June 1, 20171,)Issuance of common stock and common stock,, ,?,,, ,?,, , ~ , rx, , , ,?,,,~ ,(,,, ,?,,, ,?,,, ,?, ,!,"~ ,#(,$.-&warrants for acquisition of Wunderlich.on July 3, 20172/*Vesting of restricted stock, net of shares// /?/// /?// / ~ / Y/ / / /?///~ //// /?/// /?/// /?/ /!/"~ /#/$#0withheld for employer taxes1Share based payments11 1?111 1?11 1  1 ?1 1 1 1?111~ 1111 1?111 1?111 1?1 1!1"~ 1#1$!2Dividends on common stock22 2?222 2?22 2  2 ?2 2 2 2?222 2?222~ 2222 2?222 2?2 2!2"~ 2#2$3 Net income33 3?333 3?33 3  3 ?3 3 3 3?333 3?333~ 3333 3?333~ 363 3!3"~ 3#Ư3$14)Distributions to noncontrolling interests44 4?444 4?44 4  4 ?4 4 4 4?444 4?444 4?444 4?444~ 44 4!4"~ 4#4$/5'Foreign currency translation adjustment55 5?555 5?55 5  5 ?5 5 5 5?555 5?555 5?555~ 5j555 5?5 5!5"~ 5#j5$"6Balance, December 31, 201766 6?66 6$?66 6 ~ 6 ګU6 6 ~ 6 66~ 6266~ 6f66~ 666~ 6"6 6!~ 6"96$78$9____________________________1:)Created by Morningstar Document Research.0;(http://documentresearch.morningstar.com/<  N`~\?O'6CSe=PF0*8X> @3;;$::$99$66666666666666"###############"#"#       "#        "#       "#    l  aM)  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 6} $ }  } $ }  }  $ } U} $ a                                  B. Riley Financial, Inc. 10-K 03/14/2018-%CONSOLDIATED STATEMENTS OF CASH FLOWSYear ended December 31,   ~   ~   ~ ~ - %Cash flows from operating activities:              Net income ~ ~  ~ Z  ~ & . &Adjustments to reconcile net income to            0 (net cash (used in) provided by operating activities:%Depreciation and amortization~ ~ JC  ~  B  'Provision for doubtful accounts~ ~    ~  :   Share-based compensation~ ~ B+  ~   *"Recovery of key man life insurance~ B ?    ? #Non-cash interest and other~ "~ "  ~   0(Effect of foreign currency on operations~ ~ 6  ~  & #Loss from equity investment~  ?    ? Deferred income taxes~ Y~ v7  ~  Fg 1)Impairment of leaseholds and other, lease~ J8 ?  ~   2*loss accrual and loss on disposal of fixedassets2*Income allocated and fair value adjustment~ ~ b/  ~  ~" 1)for mandatorily redeemable noncontrolling interests3+Change in operating assets and liabilities:    !Due from clearing brokers~ ~4 ?    ? .&Securities and other investments owned~ ~   ~  r DlymaUGQ:{>E{E3g2V ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ?  Securities borrowed  ~     ?    ? 0!(Accounts receivable and advances against!!~ !:!!!~ !&!! ! ~ ! R! "customer contracts&#Goods held for sale or auction##~ #V###~ ### # ~ # R# )$!Prepaid expenses and other assets$$~ $&$$$~ $:9$$ $ ~ $ $ -%%Accounts payable, accrued payroll and%%~ %j%%%%~ %l%% % ~ % =% -&%related expenses, accrued value added.'&tax payable and other accrued expenses5(-Amounts due from related parties and partners((~ (:G(((~ ((( ( ~ ( J( *)"Securities sold, not yet purchased))~ )w)))~ ))) ) ~ ) ~) *Deferred revenue**~ ****~ * ** * ~ * j* +Securities loaned++~ ++++ +?++ +  + ?+ 0,(Auction and liquidation proceeds payable,, ,?,,,~ ,,, , ~ , , 0-(Net cash (used in) provided by operating--~ - ---~ -b-- - ~ - - . activities-/%Cash flows from investing activities:///////// / / / .0&Acquisition of Wunderlich, net of cash00~ 0q000 0?00 0  0 ?0 1acquired $4,259/2'Cash acquired from acquisition of FBR &22~ 2222 2?22 2  2 ?2  3Co.14)Acquisition of United Online, net of cash44~ 4]444~ 444 4  4 ?4 !5acquired $125,542 in 2016/6'Acquisition of other businesses, net of66~ 6666 6?66 6 ~ 6 6 7 cash acquired+8#Purchases of property and equipment88~ 8888~ 888 8 ~ 8 F8 ,9$Proceeds from key man life insurance99~ 9]999 9?99 9  9 ?9 4:,Proceeds from sale of property and equipment::~ : :::~ ::: : ~ : : ;and intangible asset<Equity investment<<~ <<<< <?<< <  < ?< .=&(Increase) decrease in restricted cash==~ =Z ===~ === = ~ = v= 0>(Net cash (used in) provided by investing>>~ >>>>~ >>> > ~ > L> ? activitiesDlMe%s/Xw HzZ@ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z [ \ ] ^ _ -@%Cash flows from financing activities:@@@@@@@@@ @ @ @ -A%Repayment of revolving line of creditAA A?AAA~ AAA A ~ A bA 1B)Proceeds from asset based credit facilityBB~ BBBB~ BnBB B  B ?B 0C(Repayment of asset based credit facilityCC~ CCCC~ CCC C ~ C C 1D)Proceeds of notes payable - related partyDD D?DDD D?DD D ~ D RFD 2E*Repayment of notes payable - related partyEE E?EEE E?EE E ~ E E "FRepayment of notes payableFF~ F}FFF F?FF F  F ?F 0G(Proceeds from participating note payableGG G?GGG~ GbGG G  G ?G /H'Repayment of participating note payableHH~ HzHHH~ H-HH H  H ?H $Iand contingent consideration.J&Proceeds from issuance of senior notesJJ~ J> JJJ~ JBJJ J  J ?J &KPayment of debt issuance costsKK~ KKKK K?KK K  K ?K .L&Proceeds from issuance of common stockLL L?LLL~ LcLL L  L ?L .M&Payment of employment taxes on vestingMM~ MMMM~ MMM M ~ M 6M Nof restricted stockODividends paidOO~ O6OOO~ OOO O ~ O vO 0P(Distribution to noncontrolling interestsPP~ PPPPP~ PPP P ~ P P 0Q(Net cash provided by (used in) financingQQ~ Q:/QQQ~ QRwQQ Q ~ Q IQ R activities-S%Increase in cash and cash equivalentsSS~ S#SSS~ SSS S ~ S nS *T"Effect of foreign currency on cashTT~ TTTT~ T&TT T ~ T T 1U)Net increase in cash and cash equivalentsUU~ UCUUU~ UUU U ~ U rU 4V,Cash and cash equivalents, beginning of yearVV~ VVVV~ VVV V ~ V QV .W&Cash and cash equivalents, end of yearW~ W^WW~ WWW ~ W W XXXXXXXXXX X X X !YSupplemental disclosures:YYYYYYYYY Y Y Y Z Interest paidZ~ Zb&ZZ~ ZZZ ~ Z  Z [ Taxes paid[~ [*[[~ [ [[ ~ [ b[ \]$^____________________________1_)Created by Morningstar Document Research.Dl?yR[4jT0;(` 0`(http://documentresearch.morningstar.com/H=PF0*8X> @`` __ ^^ [[[[[[ ZZZZZZ WWWWWW      l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASHF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ }  } $ }  } $                                B. Riley Financial, Inc. 10-K 03/14/20184,F-13 (o) Advances Against Customer Contracts December 31, December 31,  ~   ~ / 'Securities and other investments owned:        " Common stocks and warrants ~   ~    Corporate bonds  ~ .f   ~   Fixed income securities  ~ f$    ? Loans receivable~  ?'Partnership interests and other~ F*~ z~ B~ *"Securities sold not yet purchased: Common stocks~ &+ $?Corporate bonds~ ^~ : Fixed income securities~   ?'Partnership interests and other~ q ?~ ~ : $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/> 0rfZN ~&,H4=PF0*8X> @z     l  '[>@  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0} $ }  } $ } U}  $ } } $ }  } $ '      B. Riley Financial, Inc. 10-K 03/14/20184,F-13 (o) Advances Against Customer Contracts1)Financial Assets and Liabilities Measured  6 .at Fair Value on a Recurring Basis at December   31, 2017, Using  " Fair value at December 31,  . &Quoted prices active markets identical   Other observable inputs  ' Significant unobservable inputs   ~    assets    (Level 2)    (Level 3)        (Level 1)Assets:    /'Securities and other investments owned:     "Common stocks and warrants~ ~ `   $?  ~ Corporate bonds~ .f ?  ~  .f   ?Fixed income securities~ f$ ?  ~  f$   ?Loans receivable~  ?    ?  ~ 'Partnership interests and other~ .~    ~  O  ~ +#Total assets measured at fair value~ *~ zk ~  &  ~ a      Liabilities:     *"Securities sold not yet purchased:      Common stocks~ &+~ &+   $?   $?Corporate bonds~ ^ ?  ~  ^  Fixed income securities~   ?  ~      ?'Partnership interests and other~ q~ q    ?   ?/'Total securities sold not yet purchased~ ~ Ɯ  ~  J   ?     -%Mandatorily redeemable noncontrolling~ E ?    ?  ~ EDlrfZNp^W"9Wd Zz !"#$%&/ 'interests issued after November 5, 20030!(Total liabilities measured at fair value!~ !!!~ !Ɯ!! ~ ! J! ! ~ !E!"#$$____________________________1%)Created by Morningstar Document Research.0&(http://documentresearch.morningstar.com/4x=PF0*8X> @&&%%$$!!!!!! !!             l  $ _>`  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0} $ }  } $ } $}  $ } U} $ } U} $ $      B. Riley Financial, Inc. 10-K 03/14/20184,F-13 (o) Advances Against Customer Contracts1)Financial Assets and Liabilities Measured  6 .at Fair Value on a Recurring Basis at December   31, 2016, Using    Fair value at  . &Quoted prices active markets identical   Other observable  ' Significant unobservable inputs     December 31,      inputs    (Level 3)  ~    assets    (Level 2) (Level 1)Assets:    /'Securities and other investments owned:      Common stocks~  ~    $?  ~ Corporate bonds~  ?  ~     ~ Partnership interests~ z ?  ~    ~ +#Total assets measured at fair value~ ~  ~  6  ~       Liabilities:     *"Securities sold not yet purchased:     Corporate bonds~ :  $? ~  :    $?     -%Mandatorily redeemable noncontrolling~ :2 ?    ?  ~ :2/'interests issued after November 5, 2003      Contingent consideration~ j ?    ?  ~ j0(Total liabilities measured at fair value~ R $? ~  :   ~ ED4lrfZNprJJWIq $ !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @ !##""!!              l  !  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ } U} $ }  }  $ } } $ }  } $ }  } $ }  } $ !      B. Riley Financial, Inc. 10-K 03/14/20184,F-13 (o) Advances Against Customer ContractsLevel 3'Level 3 Changes During the Year  $ Balance at Beginning of Year   Fair Value Adjustments  ) !Relating to Undistribute Earnings    Purchases,  ) !Transfer in and/or out of Level 3   Level 3                Sales and Settlements        Balance at                        End of Year$ Year Ended December 31, 2017                  " Common stocks and warrants ~   ~ R/  ~ n5  ~ Q   $?  ~  Corporate bonds~  ?    ?   ?~  ?Loans receivable ?~     ?  ~ * ?~ 'Partnership interests and other~ ~ &6    ?  ~  ?~ -%Mandatorily redeemable noncontrolling~ :2~   ~  z   ?~  ~ E/'interests issued after November 5, 2003 Contingent consideration~ j~ "    ?  ~ z ? ?     $Year Ended December 31, 2016      Common stocks~  $?   $?  ~ & $?~ Corporate bonds ? ?    ?  ~  ?~ Partnership interests~ ~ #  ~  Z  ~ } ?~ -%Mandatorily redeemable noncontrolling~ j$~    ~  R   ? ?~ :2/'interests issued after November 5, 2003 Contingent consideration~ ^%~     ?  ~ z ?~ j$____________________________1)Created by Morningstar Document Research.DlrfZNG o>>bVJ 0 (http://documentresearch.morningstar.com/H=PF0*8X> @                l  ͔  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3) Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } $4} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018:2Acquisition of Wunderlich Investment Company, Inc.'Consideration paid by B. Riley:  Cash paid ~  / 'Fair value of 1,974,812 B. Riley common  ~    shares issued3 +Fair value of 821,816 B. Riley common stock  ~ <  warrants issuedTotal consideration~ z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|l`THY@wk_7=PF0*8X> @*  l  ӧ  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich InvesAcquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0.} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018:2Acquisition of Wunderlich Investment Company, Inc.-%Tangible assets acquired and assumed:! Cash and cash equivalents ~ B  Securities owned  ~   Accounts receivable  ~ 1  Due from clearing broker  ~ v ) !Prepaid expenses and other assets  ~ ޝ Property and equipment~ .$Deferred taxes~ BvAccounts payable~ *,$Accrued payroll and related expenses~ 6.&Accrued expenses and other liabilities~ Ng*"Securities sold, not yet purchased~ V Notes payable~ ZCustomer relationships~ b Trademarks~ Goodwill~ : Total~ z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@% Dl`THZ Tf@Y=PF0*8X> @*  l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 6} $ } y} $       B. Riley Financial, Inc. 10-K 03/14/2018Acquisition of FBR Co.'Consideration paid by B. Riley:/ 'Number of FBR Common Shares outstanding  ~ Q  at June 1, 2017# Stock merger exchange ratio   Fx? (  Number of B. Riley common shares  ~ " 5 -Number of B. Riley common shares to be issued  ~ V$ 4,from acceleration of vesting for outstanding/'FBR stock options, restricted stock and RSU awards1)Total number of B. Riley common shares to~ F& be issued/'Closing market price of B. Riley commonffffff-@#shares on December 31, 2016-%Total value of B. Riley common shares~ U3+Fair value of RSU?s attributable to service~ :&( period prior to June 1, 2017 (a)Total consideration~ {$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@PD|pd8o7r"q=PF0*8X> @* l  /  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0.} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018Acquisition of FBR Co.-%Tangible assets acquired and assumed:! Cash and cash equivalents ~   Securities owned  ~ Ү  Securities borrowed  ~ 64  Accounts receivable  ~ C  Due from clearing broker  ~  )!Prepaid expenses and other assets~ UProperty and equipment~ ^Deferred taxes~ Accounts payable~ 2,$Accrued payroll and related expenses~ ʏ.&Accrued expenses and other liabilities~ ֡Securities loaned~ Z Customer relationships~ W'Tradename and other intangibles~ Goodwill~ " Total~ {$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ D|pdv%~1kk%=PF0*8X> @*  l  "  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)Acquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0.} $ } U} $ "      B. Riley Financial, Inc. 10-K 03/14/2018*"Acquisition of United Online, Inc.Total consideration~ *V      - %Tangible assets acquired and assumed:    ! Cash and cash equivalents ~   Restricted cash  ~   Accounts receivables  ~ *<  Inventory~  Property and equipment~ V)!Prepaid expenses and other assets~ [Accounts payable~ ڳ.&Accrued expenses and other liabilities~ *uDeferred revenue~  Deferred tax liabilities~ bOther liabilities~ RCustomer relationships~ !Advertising relationships~ !Trade name and trademarks~ 2 Domain names~ r%Internally developed software~ 4Goodwill~ ~ *V $____________________________D l|pdXv+ED @2!!   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online In!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0} $ } } $       B. Riley Financial, Inc. 10-K 03/14/2018!Acquisition of MK Capital-%Tangible assets acquired and assumed:! Cash and cash equivalents ~   Accounts receivable  ~ " ) !Prepaid expenses and other assets  ~ z  Property and equipment  ~ > 0 (Accounts payable and accrued liabilities  ~  Customer relationships~ %Goodwill~ l Total~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0yma pWznF=PF0*8X> @*  l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK CapitalNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 7} $ } } $ } } $                            B. Riley Financial, Inc. 10-K 03/14/2018'Pro Forma Financial InformationPro Forma (Unaudited)   Year Ended December 31,   ~   ~   Revenues ~ J  ~ .[ 6 .Net income attributable to B. Riley Financial, ~ X  ~ j  Inc. Basic earnings per share)\(?Q?"Diluted earnings per sharezG?Q?1)Weighted average basic shares outstanding~ <~ r63+Weighted average diluted shares outstanding~ b\~ .$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6sg[w#wkC=PF0*8X> @z        l  0  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018#NOTE 4 RESTRUCTURING CHARGE0(Accrued restructuring charge at December~  31, 2015 Restructuring charge  ~ <   Cash paid  ~ 2  Non-cash items   ? 0 (Accrued restructuring charge at December  ~   31, 2016Restructuring charge~ Z Cash paid~ Non-cash items~ 0(Accrued restructuring charge at December~ (31, 2017$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4=wk_X AT@4 =PF0*8X> @* l  j-  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 1} $ }  } $ } $}  $ } U} $ }  } $ } $} $ } $} $ } U} $ } U} $ !!!!!!!!!! ! ! ! ! !!!!!!!!!! B. Riley Financial, Inc. 10-K 03/14/2018#NOTE 4 RESTRUCTURING CHARGEYear Ended December 31,   ~   ~     Capital    Principal    Corporate   Total   Capital    Principal    Corporate   Total    Markets    Investments -           Markets    Investments -       United               United       Online               OnlineRestructuring charge:      "Employee termination costs~ ^M~ N  ~  R3  ~  $?~ J6 $?~ J6 1)Facility closure and consolidation charge~ b- ?  ~    ~ b5 ? ?~ v~ v "Total restructuring charge~ z~ N  ~  R;  ~ Z $?~ J6~ v~ < $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2lwk_X@,w!_ =PF0*8X> @2&                       l  E  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1) F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } U} $ } a}  $ } } $ } } $       B. Riley Financial, Inc. 10-K 03/14/2018!NOTE 5 SECURITIES LENDING      Amounts not                offset in the                   consolidated balance            Gross amounts     Net amounts    sheets but eligible            offset in the    included in the    for offsetting        Gross amounts     consolidated     consolidated    upon counterparty     recognizedbalance sheets (1)   balance sheets   default (2) Net amountsAs of December 31, 2017     Securities borrowed~ B1 $? ~  B1  ~ B1 $?Securities loaned~ 1 $? ~  1  ~ 1 $?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2 ymarzlR.>cWK#=PF0*8X> @    l  W  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDINGF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } +} $ }  } $ } U} $                         B. Riley Financial, Inc. 10-K 03/14/2018'F-25 NOTE 6 ACCOUNTS RECEIVABLE December 31, December 31,  ~   ~   Accounts receivable ~   ~  , $Investment banking fees, commissions  ~ A   ~    and other receivables Unbilled receivables  ~    ~ *  !Total accounts receivable~ >E~ ,'Allowance for doubtful accounts~ ~  Accounts receivable, net~ 8~ ($____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0sg[,wjk_S+=PF0*8X> @Z      l  Lh  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLENOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } } $ }  } $ } U}  $ } U} $                       B. Riley Financial, Inc. 10-K 03/14/2018'F-25 NOTE 6 ACCOUNTS RECEIVABLEYear Ended December 31,   ~   ~   ~ ~ " Balance, beginning of year ~   ~ f  ~ b  ! Add: Additions to reserve  ~    ~     ~ :   Less: Write-offs  ~ &   ~    ~   Less: Recoveries  ~    ~    ~ N Balance, end of year~  ~  ~  f $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|sg[CMA5 =PF0*8X> @j          l  {  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 8} $ } :} $ }  } $ } } $                          B. Riley Financial, Inc. 10-K 03/14/2018%NOTE 7 PROPERTY AND EQUIPMENT Estimated December 31,     Useful Lives ~   ~   Leasehold improvements 8 0Shorter of the remaining lease term or estimated ~ jz  ~ V$     useful life2 *Machinery, equipment and computer software   3 to 5 years  ~     ~ ~f  Furniture and fixtures  5 years  ~ *   ~   Total~ r8~  ֨   7/Less: Accumulated depreciation and amortization~ ~   ~ &~ fZ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2qui]<+t=PF0*8X> @R          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENTF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ }  } $ }  }  $ } } $ }  } $ }  } $       B. Riley Financial, Inc. 10-K 03/14/201880F-26 NOTE 8 GOODWILL AND OTHER INTANGIBLE ASSETS     Principal   Capital    Auction and    Valuation and    Investments-       Markets    Liquidation    Appraisal    United Online       Segment   Segment   Segment   Segment   Total ' Balance as of December 31, 2015 ~   ~   ~ :   $?  ~  , $Goodwill acquired during the period:   ?    ?    ?   ~    ~  %United Online on July 1, 2016     'Balance as of December 31, 2016~ ~   ~  :  ~ ~      ,$Goodwill acquired during the period:     #Dialectic on April 13, 2017~ ' ?    ?   ?~ 'FBR on June 1, 2017~ " ?    ?   ?~ "/'Resolution of acquisition related legal ? ?    ?  ~ "~ "matter on June 30, 2017"Wunderlich on July 3, 2017~ : ?    ?   ?~ :'Balance as of December 31, 2017~ ~  ~  :  ~ ~ N$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0nbVJcE/=PF0*8X> @                l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER INOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ } } $ } U} $ } $} $ } U} $ }  } $ } U} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/201880F-26 NOTE 8 GOODWILL AND OTHER INTANGIBLE ASSETSDecember 31, 2017December 31, 2016     Gross         Gross            Carrying    Accumulated    Intangibles   Carrying    Accumulated    Intangibles     Useful Life  Value    Amortization   Net   Value    Amortization   Net  Amortizable assets:                           Customer relationships   4 to 16 Years ~ j  ~ 2  ~ :  ~ F  ~ r0  ~ b  Domain names7 Years~ ~~     ~  ~ .~ ~ !Advertising relationships8 Years~ ~  N   ~  F~ ~ ~ z/'Internally developed software and other0.5 to 4 Years~ 4~     ~  "~ 4~ ~ ~+ intangibles Trademarks 7 to 8 Years~ zA~     ~  ~:~ 2~ ~  Total~  ~     ~  ^~ ң~ ;~  h     Non-amortizable assets:      Tradenames~ 2  ?   ~  2~ 2 ?~ 2Total intangible assets~ &~   ~  y~ ~ ;~ :$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>`0nbVJ~Oju^_uM=PF0*8X> @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } $ } I"} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018#NOTE 9 LEASING ARRANGEMENTS Operating    Leases  Year Ending December 31:      ~   ~   ~    ~   ~    ~ "m ~ ~ VW~ ~ N Thereafter~ $Total minimum lease payments~ :|$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2owk_x,|$l=PF0*8X> @B    l  B  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 0} $ }  } $ }  } $                         B. Riley Financial, Inc. 10-K 03/14/2018NOTE 11 NOTES PAYABLE      December 31,    ~   ~  / '7.50% Senior notes due October 31, 2021  ~ ~&  ~ : + #7.50% Senior notes due May 31, 2027   ~ *    ? 0 (7.25% Senior notes due December 31, 2027   ~     ? ~ v ~ : *"Less: Unamortized debt issue costs~ "~  ~ m ~ Ұ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0R}qeY0s=PF0*8X> @R          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } '} $ }  } $ }  }  $ } $} $                             B. Riley Financial, Inc. 10-K 03/14/2018!F-31 NOTE 13 INCOME TAXESYear Ended December 31,   ~   ~   ~ ~  Current:             Federal ~ r;  ~ jV  ~ &  State  ~    ~ j   ~   Foreign  ~    ~ ~?   ~ .  Total current provision~ "<~ N  ~    Deferred:    Federal~ k~ /  ~  P  State~ ~    ~   Foreign~ z~     ? Total deferred~ H~ z8  ~  Fg ( Total provision for income taxes~ ~  ~  "x $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/82 ymas#jusg?=PF0*8X> @j          l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 8} $ }  } $} $ }  } $} $ } } $                               B. Riley Financial, Inc. 10-K 03/14/2018!F-31 NOTE 13 INCOME TAXESYear Ended December 31,   ~   ~   ~ ~ 7 /Provision for income taxes at federal statutory  ~  %  ~  %  ~  % rate2 *State income taxes, net of federal benefit  ~     ffffff@   ~   Transaction expenses  ~      ?    ? 0(Noncontrolling interest tax differentialffffff    ? Key man life insurance ?    ? )!Employee stock based compensationffffff! ?    ? /'Internal Revenue Service Section 338(g)LF ?    ? 6.- Treatment of acquisition of UOL as a taxablebusiness combination"U.S. Tax Cuts and Jobs ActfffffO@ ?    ?  Other @333333    !Effective income tax rateD@ %ffffff>@ %   B@  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<U yma4cNxlD=PF0*8X> @:      l  &q"I$  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 7} $ }  } $ }  } $ &                                  B. Riley Financial, Inc. 10-K 03/14/2018!F-31 NOTE 13 INCOME TAXES December 31,  ~   ~   Deferred tax assets:        1 )Deductible goodwill and other intangibles ~ >   $? % Accrued liabilities and other  ~ v7   ~ n&  Deferred revenue  ~    ~ > -%Mandatorily redeemable noncontrolling~ V~ V interests Other~ ~  State taxes ?~ Share based payments~ !~ 6.Foreign tax and other tax credit carryforwards~ ~ !Capital loss carryforward~ Z(~ B8'Net operating loss carryforward~ ~ ~x!Total deferred tax assets~ ~ (!Deferred tax liabilities: State taxes~ J ? Depreciation~ ~ &Goodwill and other intangibles ?~ V&Total deferred tax liabilities~ &~ *Net deferred tax assets~ ~ >Valuation allowance~ ~ rDlyma%M?*&{cr|a ! " # $ %  Net deferred tax assets ~   ~  !"$#____________________________1$)Created by Morningstar Document Research.0%(http://documentresearch.morningstar.com/dyQ=PF0*8X> @R %%$$##       l  4  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } y<} $ } $} $       B. Riley Financial, Inc. 10-K 03/14/2018!F-31 NOTE 13 INCOME TAXES Year Ended    December 31,  ~  Beginning balance    / 'Addition as a result of the acquisition ~   of UOL0(Additions for current year tax positions ?.&Additions for Prior year tax positions~ /'Reductions for Prior year tax positions ?:2Reductions due to lapse in statutes of limitations~ Ending balance~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4Myma'+P|<0$=PF0*8X> @B    l  J  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 7} $ } } $ } }  $ } } $                               B. Riley Financial, Inc. 10-K 03/14/2018"NOTE 14 EARNINGS PER SHAREYear Ended December 31,   ~   ~   ~ ~ 6 .Net income attributable to B. Riley Financial, ~   ~ ZP  ~ v  Inc.             , $Weighted average shares outstanding:             Basic~ 2~ #Q  ~    3+Effect of dilutive potential common shares:    -%Restricted stock units and non-vested~ V7~ #     ? shares$Contingently issuable shares~ ޳ ~ E  ~  . Diluted~ b~ b  ~       Basic income per share? ףp= ?  \(\?  Diluted income per shareQ?Q?  \(\? $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/< xl`CO=:=PF0*8X> @          l  c_  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARE!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } $} $ }  } $ }  } $                              B. Riley Financial, Inc. 10-K 03/14/2018$NOTE 16 SHARE BASED PAYMENTSShares#Weighted Average Fair Value$ Nonvested at January 1, 2015  ~ [   Q@  Granted  ~ 20     (\#@  Vested  ~      ףp= #@   Forfeited  ~ #    (\#@ & Nonvested at December 31, 2015  ~    q= ף#@ Granted~ v=!(\u#@Vested~ n(\B$@ Forfeited~ j$Gz#@&Nonvested at December 31, 2016~ ){Gz#@Granted~ R/@Vested~ $@ Forfeited~ /{G$@&Nonvested at December 31, 2017~ "[0*@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:H vj^epmxu}qe==PF0*8X> @J    l  p  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTSF38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ }  } $ }  } $                        B. Riley Financial, Inc. 10-K 03/14/2018QIF-36 (b) Amended and Restated FBR Co. 2006 Long-Term Stock Incentive PlanShares#Weighted Average Fair Value. &Nonvested at June 1, 2017, acquisition  ~ c    ffffff-@ / 'date of FBR resulting from the exchange) !of previously existing FBR awards Granted  ~ V.5    {G0@  Vested  ~ ޼    )\(.@  Forfeited~ Gz/@&Nonvested at December 31, 2017~ VAfffff&0@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.wUI=1.S\=PF0*8X> @:  l  F2  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 7} $ }  } $ }  }  $ } } $ F                                  B. Riley Financial, Inc. 10-K 03/14/2018&F-38 NOTE 20 BUSINESS SEGMENTSYear Ended December 31,   ~   ~   ~ ~ + #Capital Markets reportable segment:            $ Revenues - Services and fees ~ ^   ~ f  ~ % , $Interest income - Securities lending  ~      ?    ?   Total revenues  ~ n    ~ f   ~ % ,$Selling, general, and administrative~ ~ &  ~  ' expensesRestructuring costs~ F ?    ? -%Interest expense - Securities lending~ C ?    ? %Depreciation and amortization~ ~ n  ~   Segment income~ ~ ._  ~  NE 3+Auction and Liquidation reportable segment:    $Revenues - Services and fees~ B~   ~  ,  Revenues - Sale of goods~ ~   ~    Total revenues~ N~  [  ~  V Direct cost of services~ L~   ~    Cost of goods sold~ ~ j  ~   ,$Selling, general, and administrative~ }~    ~  Z expenses%Depreciation and amortization~ ~   ~   Segment income~ ʮ~ 2  ~  - 3+Valuation and Appraisal reportable segment:    $Revenues - Services and fees~ ~   ~  & Dlth\>z9t>Y \ ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ?  Direct cost of services  ~    ~ %   ~ ", ,!$Selling, general, and administrative!!~ !>z!!!~ !v!! ! ~ ! q! "expenses%#Depreciation and amortization##~ #.###~ #V## # ~ # # $Segment income$$~ $Ɨ$$$~ $Ɗ$$ $ ~ $ $ -%%Principal Investments - United Online%%%%%%%%% % % % &segment:$'Revenues - Services and fees''~ '#'''~ 'r'' '  ' ?'  (Revenues - Sale of goods((~ ((((~ ((( (  ( ?( ) Total revenues))~ )~()))~ ))) )  ) ?) *Direct cost of services**~ *B8***~ *r** *  * ?* +Cost of goods sold++~ ++++~ +++ +  + ?+ ,,$Selling, general, and administrative,,~ ,bO,,,~ ,,, ,  , ?, -expenses%.Depreciation and amortization..~ ....~ . .. .  . ?. /Restructuring costs//~ ////~ /// /  / ?/ 0Segment income00~ 00000~ 000 0  0 ?0 51-Consolidated operating income from reportable11~ 16p111~ 111 1 ~ 1 1 2segments3333333333 3 3 3 /4'Corporate and other expenses (including44~ 4~R444~ 4:44 4 ~ 4 &d4 /5'restructuring costs of $3,796, $413 and/6'$1,006 for the years ended December 31,+7#2017, 2016 and 2015, respectively.)8Interest income88~ 8888~ 888 8 ~ 8 F8 #9Loss from equity investment99~ 9.999 9?99 9  9 ?9 :Interest expense::~ : }:::~ ::: : ~ : : ";Income before income taxes;;~ ;v?;;;~ ;;; ; ~ ; FL; "<Provision for income taxes<<~ < {<<<~ <> << < ~ < < = Net income==~ =~===~ =Z== = ~ = &= 1>)Net income attributable to noncontrolling>>~ >>>>~ >>> > ~ > > ? interestsDlGm=)lHJS R(|@ A B C D E 6@.Net income attributable to B. Riley Financial,@~ @@@~ @ZP@@ ~ @ v@  AInc.B$C____________________________1D)Created by Morningstar Document Research.0E(http://documentresearch.morningstar.com/dTD8=PF0*8X> @j EE DD CC @@@@@@      l  $Ծ   dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } a/} $ } U} $ }  }  $ } } $ $                                  B. Riley Financial, Inc. 10-K 03/14/2018&F-38 NOTE 20 BUSINESS SEGMENTSYear Ended December 31,   ~   ~   ~ ~   Revenues:      % Revenues - Services and fees:              North America ~ l  ~ D  ~    Australia  ~    ~ ޝ    ? Europe~ ~ B$  ~  " *"Total Revenues - Services and fees~ &~ .  ~  8      Revenues - Sale of goods     North America~ ~  ~  . Europe ?~   ~  f &Total Revenues - Sale of goods~ ~  ~       /'Revenues - Interest income - Securities    lending: North America~   $?   $?     Total Revenues:     North America~ {~ I ~    Australia~ ~ ޝ    ? Europe~ ~ F  ~   Total Revenues~ ~ >  ~  6 DTlth\:Lh)JsLl ! " #  $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @## "" !!             l  *  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } $4} $ } $} $ } $} $                         B. Riley Financial, Inc. 10-K 03/14/2018&F-38 NOTE 20 BUSINESS SEGMENTS As of As of    December 31,    December 31,   ~   ~  3 +Long-lived Assets - Property and Equipment,         net:  North America ~ &  ~ fZ  Australia ? ?Europe ? ? Total~ &~ fZ$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0{th\:.C=PF0*8X> @j        l  V  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)F41 NOTE 21 SELECTED (1) 8 Exhibit 121!Subsidiaries of B Riley FinanciU } 2} $ } } $ } }  $ } } $ } } $       B. Riley Financial, Inc. 10-K 03/14/2018B:F-41 NOTE 21 SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Quarter Ended    March 31,   June 30,    September 30,    December 31,   ~   ~   ~   ~   Total revenues ~ :  ~   ~ *  ~   Operating income ~ ^  ~ (  ~ 2  ~ & ) !Income (loss) before income taxes ~   ~    ~   ~  1)Benefit from (provision for) income taxes~ &<~ ' ~  6  ~ Net income (loss)~ 6~ 4 ~    ~ ֪2*Net income (loss) attributable to B. Riley~ ~ B3 ~    ~ ~Financial, Inc.     "Earnings (loss) per share:      Basic\(\?333333?  {Gz?  q= ףpͿDilutedQ?333333?  {Gz?  q= ףpͿ     ,$Weighted average shares outstanding:      Basic~ ’~   ~  6  ~ <Diluted~ :~ > F  ~    ~ <$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BXdXL@=3n7Q!HmaU-=PF0*8X> @b,                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY  8 Exhibit 121!Subsidiaries of B Riley FinanciU } 2} $ } } $ } }  $ } } $ } } $       B. Riley Financial, Inc. 10-K 03/14/2018B:F-41 NOTE 21 SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Quarter Ended    March 31,   June 30,    September 30,    December 31,   ~   ~   ~   ~   Total revenues ~ 7  ~ <  ~ z  ~   Operating income ~   ~   ~   ~  ) !Income (loss) before income taxes ~   ~   ~   ~  1)(Provision for) benefit from income taxes~ j~  ~    ~ ހNet income (loss)~ j~  ~  ڂ  ~ g2*Net income (loss) attributable to B. Riley~ ~ n ~    ~ bFinancial, Inc.     "Earnings (loss) per share:      Basic{Gz?{Gz  Gz?  ?Diluted{Gz?{Gz  Gz?  {Gz?     ,$Weighted average shares outstanding:      Basic~  {~ ZF  ~  D  ~ Diluted~ _~ ZF  ~  >e  ~ ߦ$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BXdXL@=3n7Q!HmaU-=PF0*8X> @b,                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1)!Subsidiaries of B Riley FinanciU } m)} $ }  } $} $ }  } $} $ } U} $} $ }  } $} $ }  } $       B. Riley Financial, Inc. 10-K 03/14/2018-8- Exhibit 12.1Year Ended December 31,  ~ v  ~ z  ~ ~  ~   ~   Earnings (loss) ~ 6E  ~   ~ =  ~ NO  ~    Fixed charges  ~ )   ~    ~     ~ 2   ~  * "Ratio of earnings to fixed charges   (\? x   Q x   Q^8@ x   (\2@ x   Q @ x Coverage deficiency   ?  ~     ?    ?    ? $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hvj#Ym,# =PF0*8X> @z          l  Q0;A  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??C FORM 10KB RILEY FINANCIAL INC!FOR THE FISCAL YEAR ENDED DECEMItem 2 PROPERTIES!Stock Market and Other InformatFive Year Comparison!36 Consolidated Statement of Op!Consolidated Balance Sheet Data!Consolidated Statements of Inco 41 Revenues!Sale of Goods Cost of Goods SolOperating Expenses!Selling General and AdministratConsolidated Statements (1) 46 RevenuesSale of Goods Cost of (1)Operating Expen (1)Selling General and (1)!Liquidity and Capital ResourcesContractual Obligations Exhibit IndexExhibit Index (1)Exhibit Index (2)Exhibit Index (3)Exhibit Index (4) NO TITLE 68 SIGNATURES!INDEX TO CONSOLIDATED FINANCIALCONSOLIDATED BALANCE (1)CONSOLIDATED STATEMENTS (2)CONSOLIDATED STATEMENTS (3)CONSOLIDATED STATEMENTS (4)!CONSOLDIATED STATEMENTS OF CASH!F13 o Advances Against CustomerF13 o Advances Against (1)F13 o Advances Against (2)F13 o Advances Against (3)!Acquisition of Wunderlich Inves Acquisition of Wunderlich (1)Acquisition of FBR Co.Acquisition of FBR (1)!Acquisition of United Online InAcquisition of MK Capital!Pro Forma Financial InformationNOTE 4 RESTRUCTURING CHARGENOTE 4 RESTRUCTURING (1)NOTE 5 SECURITIES LENDING F25 NOTE 6 ACCOUNTS RECEIVABLEF25 NOTE 6 ACCOUNTS (1)NOTE 7 PROPERTY AND EQUIPMENT!F26 NOTE 8 GOODWILL AND OTHER IF26 NOTE 8 GOODWILL AND (1)NOTE 9 LEASING ARRANGEMENTSNOTE 11 NOTES PAYABLEF31 NOTE 13 INCOME TAXESF31 NOTE 13 INCOME (1)F31 NOTE 13 INCOME (2)F31 NOTE 13 INCOME (3)NOTE 14 EARNINGS PER SHARENOTE 16 SHARE BASED PAYMENTS!F36 b Amended and Restated FBR F38 NOTE 20 BUSINESS SEGMENTSF38 NOTE 20 BUSINESS (1)F38 NOTE 20 BUSINESS (2)!F41 NOTE 21 SELECTED QUARTERLY F41 NOTE 21 SELECTED (1) 8 Exhibit 121U } $ } $} $ } y# Q      B. Riley Financial, Inc. 10-K 03/14/20180(Subsidiaries of B. Riley Financial, Inc.%Jurisdiction of Organization/  Subsidiary   Incorporation(  B. Riley Capital Management, LLC  New York+ #B. Riley Principal Investments, LLC  Delaware B. Riley FBR, Inc.  Delaware BRC Merger Sub, LLC  Delaware,$BR Dialectic Capital Management, LLCDelawareBR Events, LLC California'BR SPAC Capital Management, LLCDelaware%BR-GA Retail Investments, LLCDelaware*"FBR Asset Management Holdings, LLCVirginia*"FBR Capital Markets Holdings, Inc.Delaware$FBR Capital Markets PT, Inc.Virginia$FBR Capital Markets LT, Inc.DelawareFBR Fund Advisers, LLCDelaware'FBR Investment Management, Inc.Delaware MLV & Co LLCDelaware!GA Australia II Pty., LTDVictoria, AustraliaGA Australia Pty., LTDVictoria, Australia"GA Europe Cooperatief U.A. NetherlandsGA Europe GmbHGermanyGA Industrial, LTDEngland and Wales&GA International Services, LLC California$GA Keen Realty Advisors, LLCNew YorkD lvj^R;n2Pr0]G !"#$%&'()*+,-./0123456789:;<=>? GA Retail Advisors, Inc.   California!GA Retail Canada ULC!!Canada"GA Retail Int?l, Inc."" California$#GA Retail Investments, L.P.*##Delaware $GA Retail Services, Inc.$$ California%GA Retail, Inc.%% California&GACP Finance Co, LLC&&Delaware,'$Great American Capital Partners, LLC''Delaware,($Great American Global Partners, LLC*(( California3)+Great American Group Advisory and Valuation)) California*Services, LLC*.+&Great American Group Energy Equipment,++ California ,LLC2-*Great American Group Intellectual Property-- California. Advisors, LLC3/+Great American Group Machinery & Equipment,// California 0LLC*$1Great American Group WF, LLC11 California!2Great American Group, LLC22 California3Stratton Partners, LTD33England and Wales*4"Classmates Media Corporation, Inc.44Delaware$5Juno Internet Services, Inc.55Delaware"6Juno Online Services, Inc.66Delaware7Net Zero, Inc.77Delaware8NetZero Modecom, Inc.88Delaware9NetZero Wireless, Inc.99Delaware/:'United Online Advertising Network, Inc.::Delaware2;*United Online Software Development (India);;Republic of India<Private Limited*(= United Online Web Services, Inc.==Delaware>United Online, Inc.>>Delaware5?-Fiduciary Financial Services of the Southwest? ?TexasD l|9n.3^EKj$gM@ABCDEFGHIJKLMNOP1@)Manhattan Investment Management Services,@@Delaware AInc.+B#Medallion Investment Solutions, LLCBBDelaware%CWunderlich Capital ManagementCC Tennessee,D$Wunderlich Insurance Agency of TexasD DTexas+E#Wunderlich Investment Company, Inc.EEDelaware$FWunderlich Loan Capital CorpFFDelaware#GWunderlich Securities, Inc.GG TennesseeHHHI I*/I'B. Riley Financial, Inc. owns less thanJJ#J100% of these subsidiaries.KKKKKLM$N____________________________1O)Created by Morningstar Document Research.0P(http://documentresearch.morningstar.com/&@Lff'=PF0*8X> @"DPPOONNJJIIGGFFEEDDCCBBAA@@??>>==<<;;::99887766554433221100//..--,,++**))((''&&%%$$##""!!       Root Entry FBook  C  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~