ࡱ> TUVWXY 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 ~~ ؈ ~~#؈ ~~ ؈ ~~9#܈ ~~8#܈ ~~4#܈ ~~3#܈ ~~"؈ ~~7#܈ ~~83ffff̙̙3f3fff3f3f33333f33 FORM 10Q!B RILEY FINANCIAL INC %B RILEY FINANCIAL INC (1)_0Table of ContentsE Balance SheetkIncome StatementIncome Statement (1)&Condensed Consolidated Statemen Cash Flows&cPrincipal Investments United On&e&Principal Investments Unite (1)&?Principal Investments Unite (2)&WPrincipal Investments Unite (3)&jPrincipal Investments Unite (4)& Principal Investments Unite (5)&FPrincipal Investments Unite (6)&Principal Investments Unite (7)&Acquisition of Wunderlich Inves&4Acquisition of Wunderlich I (1)Acquisition of FBR Co Acquisition of FBR Co (1)&Pro Forma Financial Information )NOTE 4 SECURITIES LENDING!@NOTE 5 ACCOUNTS RECEIVABLE%!ONOTE 5 ACCOUNTS RECEIVABLE (1)&_NOTE 6 GOODWILL AND OTHER INTAN7Senior Notes Payable&>NOTE 9 REVENUE FROM CONTRACTS W&NOTE 9 REVENUE FROM CONTRAC (1)!NOTE 11 EARNINGS PER SHARE"NOTE 13 SHAREBASED PAYMENTS&rAmended and Restated FBR Co 200 NOTE 16 BUSINESS SEGMENTS$9NOTE 16 BUSINESS SEGMENTS (1)$VNOTE 16 BUSINESS SEGMENTS (2)3dIncome Statement (2)ڇRevenues&Direct Cost of Services Direct &Selling General and AdministratIncome Statement (3) Revenues (1)%)Direct Cost of Services Di (1)&.3Selling General and Adminis (1)YICash Flow SummarygX Exhibit IndexˉExhibit Index (1)˛ SIGNATURES l  l  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??.B RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } } 2       B. Riley Financial, Inc. 10-Q 08/03/2018 FORM 10-Q (Mark One) ?/ 'QUARTERLY REPORT PURSUANT TO SECTION 13 / 'OR 15(d) OF THE SECURITIES EXCHANGE ACT  OF 1934/ 'For the quarterly period ended June 30,~  Or ?-%TRANSITION REPORT PURSUANT TO SECTION2*13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF 1934)!For the transition period from to$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/83}qO~pb$~rf>=PF0*8X> @:   l  %  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 0} +       B. Riley Financial, Inc. 10-Q 08/03/2018 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  /  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCTable of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } $ } } !} $       B. Riley Financial, Inc. 10-Q 08/03/2018 B. RILEY FINANCIAL, INC.!Large accelerated filer ?Accelerated filer ?  Non-accelerated filer ?# Smaller reporting company ?  ! Emerging growth company ?    $ ____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/$,znb[OC=PF0*8X> @  l  1?D  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1) Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } y } :}  1      B. Riley Financial, Inc. 10-Q 08/03/2018Table of Contents   Page   % PART I. FINANCIAL INFORMATION  Item 1.& Unaudited Financial Statements~  - %Condensed Consolidated Balance Sheets~ 1)as of June 30, 2018 and December 31, 2017,$Condensed Consolidated Statements of~ 1)Income for the three and six months endedJune 30, 2018 and 2017,$Condensed Consolidated Statements of~ .&Comprehensive Income for the three and/'six months ended June 30, 2018 and 2017,$Condensed Consolidated Statements of~ 0(Equity for the six months ended June 30, 2018 and 2017,$Condensed Consolidated Statements of~ 0(Cash Flows for the six months ended June30, 2018 and 20171)Notes to Condensed Consolidated Financial~ " StatementsItem 2.,$Management?s Discussion and Analysis~ 80of Financial Condition and Results of OperationsItem 3.0(Quantitative and Qualitative Disclosures~ DluiEy.b4m#t4 I !"#$%&'()*+,-./0  About Market Risk!Item 4.!Controls and Procedures~ !""PART II. OTHER INFORMATION"#Item 1.#Legal Proceedings~ #$Item 1A.$ Risk Factors~ $%Item 2./%'Unregistered Sales of Equity Securities~ %&&and Use of Proceeds'Item 3.''Defaults Upon Senior Securities~ '(Item 4.(Mine Safety Disclosures~ ()Item 5.)Other Information~ )*Item 6.*Exhibits~ *++ Signatures~ +,-$.____________________________1/)Created by Morningstar Document Research.00(http://documentresearch.morningstar.com/&@a#jg7+=PF0*8X> @*00//..""  l  AZjj  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of ContentsIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 6} $ } y} $ }  }  $ A                                  B. Riley Financial, Inc. 10-Q 08/03/2018 Balance SheetJune 30, December 31,  ~   ~      (Unaudited)     Assets       Assets      ! Cash and cash equivalents ~    ~ ^ Restricted cash~ N~ 3!Due from clearing brokers~ &~ /'Securities and other investments owned,~ r ~ B at fair valueSecurities borrowed~ =~ B1 Accounts receivable, net~ ^~ 8 Due from related parties~ }~ X+#Advances against customer contracts~ 5 ~ bQ)!Prepaid expenses and other assets~ n~ 6a#Property and equipment, net~ ~ &Goodwill~ ~ N$Other intangible assets, net~ 5~ yDeferred income taxes~ ~  Total assets~ ƒr~ bTLiabilities and Equity LiabilitiesAccounts payable~ :;~ j).&Accrued expenses and other liabilities~ jt~ `D5lymN)!qfK/+BI ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ?  Deferred revenue  ~ B8   ~ 1 !Due to partners!!~ !s!!!~ !!)"!Securities sold not yet purchased""~ """"~ ""#Securities loaned##~ #B=###~ #1#-$%Mandatorily redeemable noncontrolling$$~ $:B$$$~ $E$% interests#&Asset based credit facility&&~ &h&&& &-&' Notes payable''~ '0'''~ '#'(Senior notes payable((~ ("_(((~ (m ()Total liabilities))~ )vqb)))~ )lD)*********%+Commitments and contingencies++++++++.,&B. Riley Financial, Inc. stockholders?,,,,,,,,-equity:5.-Preferred stock, $0.0001 par value; 1,000,000.. .-... .-.&/shares authorized; none issued40,Common stock, $0.0001 par value; 100,000,00000~ 0 000~ 0 041,shares authorized; 26,070,165 and 26,569,46222*issued and outstanding as of June 30, 2018+3#and December 31, 2017, respectively"4Additional paid-in capital44~ 4^444~ 4245Retained earnings55~ 5>555~ 5f5,6$Accumulated other comprehensive loss66~ 6666~ 6647,Total B. Riley Financial, Inc. stockholders?77~ 7777~ 7<78equity 9Noncontrolling interests99~ 9Z 999~ 9"9: Total equity::~ :R!:::~ :9:$;Total liabilities and equity;~ ;ƒr;;~ ;bT;<=$>____________________________1?)Created by Morningstar Document Research.DlpZE>9D>fTP@ 0@(http://documentresearch.morningstar.com/H=PF0*8X> @@@ ?? >> ;;;;        l  1  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } :} $ } } $ } }  $ } } $ } } $ 1      B. Riley Financial, Inc. 10-Q 08/03/2018Income Statement       Three Months Ended   Six Months Ended    June 30,   June 30,  ~   ~   ~   ~    Revenues:             Services and fees ~ A  ~ .  ~    ~ v' ,$Interest income - Securities lending~ f~ "  ~    ~ " Sale of goods~ r~   ~     ~ :Total revenues~ ~   ~  ~   ~ VLOperating expenses:     Direct cost of services~ ~    ~    ~ 3Cost of goods sold~ ~    ~  j  ~ 4,Selling, general and administrative expenses~ ή~ jM  ~    ~ Restructuring charge~  ~ a  ~  n  ~ f-%Interest expense - Securities lending~ I~ v  ~    ~ v Total operating expenses~ ~   ~     ~ |Operating income~ ~ (  ~  b  ~ ^Other income (expense):     Interest income~ ~ Z  ~    ~ j%Income from equity investment~ vL -  ~  A   -Interest expense~ &^~ j  ~    ~ "Income before income taxes~ *j~    ~  F  ~ ҩ1)(Provision for) benefit from income taxes~ ~ '  ~    ~ c Net income~ &~ 4  ~  a  ~  DlvjX\ )Gh} 1M_ !"#$%&'()*+,-./08 0Net income (loss) attributable to noncontrolling  ~     ~ N   ~    ~ n ! interests6".Net income attributable to B. Riley Financial,"~ " ""~ "B3"" ~ " O" " ~ "V" #Inc.$$$$$$$$$$ $ $ $ $ $$$%Basic income per share%%q= ףp?%%%333333?%% % (\?% % %333333?% &Diluted income per share&&{Gz?&&&333333?&& & ?& & &= ףp=?&'''''''''' ' ' ' ' ''' (Cash dividends per share((Q?((({Gz?(( ( Q?( ( (zG?()))))))))) ) ) ) ) )))1*)Weighted average basic shares outstanding**~ ****~ *** * ~ * &* * *~ **3++Weighted average diluted shares outstanding++~ +&-K+++~ +> F++ + ~ + Fb+ + +~ ++,-$.____________________________1/)Created by Morningstar Document Research.00(http://documentresearch.morningstar.com/& @9o ?BC7+=PF0*8X> @00//..(((((( ((&&&&&& &&%%%%%% %%"""""" ""           l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome Statement!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } $4} $ }  } $ } U}  $ } } $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018Income StatementThree Months Ended  Six Months Ended   June 30,   June 30,   ~   ~   ~   ~    Net income ~ &  ~ 4  ~ a  ~   * "Other comprehensive (loss) income:                3 +Change in cumulative translation adjustment  ~ ~   ~ F   ~    ~ Z .&Other comprehensive (loss) income, net~ ~~ F  ~    ~ Zof tax"Total comprehensive income~ ~ :  ~  P  ~ 0(Comprehensive income (loss) attributable~  ~ N  ~    ~ n#to noncontrolling interests,$Comprehensive income attributable to~ ~ 9 ~  >  ~  B. Riley Financial, Inc.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6I vj>PQWEW[4lH<=PF0*8X> @           l  -  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1) Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } >} $ } $} $ } $}  $ } } $ } $} $ }  } $ }  } $ }  } $ } $} "$ } ## } $$$ -%%%%%%%%%% % % % % %%%%%%%%%%%%%%%%%%% B. Riley Financial, Inc. 10-Q 08/03/20183+Condensed Consolidated Statements of Equity   Accumulated !"$                Additional      Other     ! " $   Preferred Stock    Common Stock   Paid-in   Retained    Comprehensive   Noncontrolling  ! "Total $   Shares   Amount   Shares   Amount   Capital   Earnings   Loss    Interests  ! "Equity $ Balance, January 1, 2017   -   $-   ~ ;  ~    ~ ʝ  ~ ~  ~ B  ~ V  !~ "-  $0 (Issuance of common stock for acquisition   -    -   ~ *,     -   ~     -    -    -  ! "~ # $<4of MK Capital, LLC - contingent equity considerationon February 2, 20170(Issuance of common stock for acquisition - -  ~  R    -~  - - - !"~ #$.&of Dialectic general partner interestson April 13, 20170(Issuance of common stock for acquisition - -  ~  j#   -~ | - - - !"~ #|$$of FBR & Co. on June 1, 20172*Vesting of restricted stock, net of shares - -  ~     -~ ~ - - - !"~ #~$#withheld for employer taxesShare based payments - -    -   -~ = - - - !"~ #=$!Dividends on common stock - -    -   - -~  - - !"~ #$0(Net income for the six months ended June - -    -   - -~ V -~ B !"~ #$30, 2017/'Foreign currency translation adjustment - -    -   - - -~ Z - !"~ #Z$Balance, June 30, 2017 - $-  ~  :  ~  ~ Rw ~ )~ ~  !~ ">$      !"#$ Balance, January 1, 2018 - $-  ~  ګU  ~  ~ 2~ f~ ~ " !~ "9$2*Vesting of restricted stock, net of shares - -  ~  >   -~ : - - - !"~ #:$DJ!lsg[O<p@!1u %!%"%#%$%%%&%'%(%)%*%+%,%# withheld for employer taxes%!Stock repurchased and retired!! !-!!! !-!! ! ~ ! B! ! ! !-!!!~ !!!! !-!!! !-!!! !-! !!!"~ !#!$"Share based payments"" "-""" "-"" "  " -" " " "-"""~ "V""" "-""" "-""" "-" "!""~ "#V"$!#Dividends on common stock## #-### #-## #  # -# # # #-### #-###~ #### #-### #-# #!#"~ ###$0$(Net income for the six months ended June$$ $-$$$ $-$$ $  $ -$ $ $ $-$$$ $-$$$~ $O$$$ $-$$$~ $:$ $!$"~ $#*`$$%30, 2018/&'Foreign currency translation adjustment&& &-&&& &-&& &  & -& & & &-&&& &-&&& &-&&&~ &&&& &-& &!&"~ &#&$'Balance, June 30, 2018'' '-'' '$-'' ' ~ ' V27' ' ~ ' ''~ '^''~ '>''~ '''~ 'Z ' '!~ '"R!'$()$*____________________________1+)Created by Morningstar Document Research.0,(http://documentresearch.morningstar.com/ 9I5Gx=PF0*8X> @2,,$++$**$''''''''''''''"#"#"#       "#        "#       "#   l  [l  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } I;} $ }  } $ }  } $ [                                  B. Riley Financial, Inc. 10-Q 08/03/2018 Cash FlowsSix Months Ended   June 30,   ~   ~  - %Cash flows from operating activities:          Net income ~ a  ~   . &Adjustments to reconcile net income to        .&net cash used in operating activities:%Depreciation and amortization~ :h~  C'Provision for doubtful accounts~ " ~   Share-based compensation~ V~ =*"Recovery of key man life insurance -~ B#Non-cash interest and other~ :~ 0(Effect of foreign currency on operations~ ~ %Income from equity investment~  -Deferred income taxes~ ~ 4,Impairment of leaseholds, lease loss accrual~ ~ n,$and loss on disposal of fixed assets2*Income allocated and fair value adjustment~ ~~ q1)for mandatorily redeemable noncontrolling interests3+Change in operating assets and liabilities:!Due from clearing brokers~ 6~ .&Securities and other investments owned~ ~ Securities borrowed~ 6_~ D l|p0\E)9 ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ? 0 (Accounts receivable and advances against  ~ C   ~ ~ !customer contracts)"!Prepaid expenses and other assets""~ "R"""~ "2"-#%Accounts payable, accrued payroll and##~ #"S###~ ##-$%related expenses, accrued value added.%&tax payable and other accrued expenses/&'Amounts due to/from related parties and&&~ &4&&&~ &/&'partners*("Securities sold, not yet purchased((~ (X(((~ ()()Deferred revenue))~ ).)))~ )^)*Securities loaned**~ * ***~ *6*-+%Net cash used in operating activities++~ + B+++~ ++-,%Cash flows from investing activities:,,,,,,,,/-'Cash acquired from acquisition of FBR &-- -----~ -- .Co.'/Acquisition of other businesses// /-///~ //)0!Acquisition consideration payable00 0-000~ 0]0/1'Purchases of property and equipment and11~ 1R111~ 1:12intangible assets,3$Proceeds from key man life insurance33 3-333~ 3]344,Proceeds from sale of property and equipment44~ 4444~ 4 45and intangible assets6Equity investments66~ 6&666 6-6(7 Dividends from equity investment77~ 7~777 7-708(Net cash (used in) provided by investing88~ 8888~ 8J89 activities-:%Cash flows from financing activities:::::::::1;)Proceeds from asset based credit facility;;~ ;O;;;~ ;;0<(Repayment of asset based credit facility<<~ <!<<<~ <*5<+=#Payment of contingent consideration== =-===~ =z=#>Proceeds from notes payable>>~ >2>>> >->"?Repayment of notes payable??~ ?n??? ?-?DlhJ$*]*SG@ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z .@&Proceeds from issuance of senior notes@@~ @n@@@~ @^@&APayment of debt issuance costsAA~ AAAA~ AA.B&Payment of employment taxes on vestingBB~ B:BBB~ B~BCof restricted stockDDividends paidDD~ DjDDD~ D}D"ERepurchase of common stockEE~ EEEE E-E0F(Distribution to noncontrolling interestsFF~ FFFF~ FJF1G)Net cash provided by financing activitiesGG~ GcGGG~ G^G5H-Increase (decrease) in cash, cash equivalentsHH~ HjlHHH~ HHIand restricted cash0J(Effect of foreign currency on cash, cashJJ~ J6JJJ~ J$J'Kequivalents and restricted cash9L1Net increase (decrease) in cash, cash equivalentsLL~ LdLLL~ L^LMand restricted cash-N%Cash, cash equivalents and restrictedNN~ NZO NNN~ N NOcash, beginning of year-P%Cash, cash equivalents and restrictedP~ P PP~ PzPQcash, end of periodRRRRRRRRR!SSupplemental disclosures:SSSSSSSST Interest paidT~ TUTT~ T*-TU Taxes paidU~ U $UU~ UfUVW$X____________________________1Y)Created by Morningstar Document Research.0Z(http://documentresearch.morningstar.com/:! jF' R3p{\kd=PF0*8X> @zZZYYXXUUUUTTTTPPPP      l  j%  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } I"} $ }  } $ } U}  $ } } $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United OnlineThree Months Ended  Six Months Ended   June 30,   June 30,   ~   ~   ~   ~  $ Balance, beginning of period ~    ~     ~ (  ~    Restructuring charge  ~     ~ a   ~ n   ~ f   Cash paid  ~    ~    ~    ~  Non-cash items~ ~   ~    ~ Balance, end of period~ ~ ^3 ~    ~ ^3$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.;/#=`TH =PF0*8X> @          l  =  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 1} $ }  } $ } $}  $ } } $ } U} $ }  } $ } $} $ } $} $ }  } $ !!!!!!!!!! ! ! ! ! !!!!!!!!!!! B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United Online#Three Months Ended June 30,   ~   ~         Principal             Principal              Investments -             Investments -          Capital   United         Capital   United          Markets   Online    Corporate   Total   Markets   Online    Corporate   Total Restructuring charge:      "Employee termination costs~   -    -  ~  ~ '~ ~ "~ fK 1)Facility closure and consolidation charge~  -  ~  R  ~ b~  - -~   (recovery)"Total restructuring charge~  $- ~  R  ~  ~ N=~ ~ "~ a $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4;/#t6H/mW=PF0*8X> @#                      l  8V  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 1} $ }  } $ } $}  $ } } $ } U} $ }  } $ } $} $ } $} $ }  } $ !!!!!!!!!! ! ! ! ! !!!!!!!!!!! B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United Online!Six Months Ended June 30,   ~   ~         Principal             Principal              Investments -             Investments -          Capital   United         Capital   United          Markets   Online    Corporate   Total   Markets   Online    Corporate   Total Restructuring charge:      "Employee termination costs~ 6  -    -  ~ 6 ~ '~ ~ "~ >Q 1)Facility closure and consolidation charge~  -  ~    ~ :~  - -~   (recovery)"Total restructuring charge~  $- ~    ~ n~ N=~ ~ "~ f $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4;/#v8J1oY=PF0*8X> @#                      l  i  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } a/} $ }  } $ }  } $                                B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United OnlineJune 30, December 31,  ~   ~  / 'Securities and other investments owned:        " Common stocks and warrants ~   ~   Corporate bonds  ~ e   ~ .f  Fixed income securities  ~ Z   ~ f$ Loans receivable~ ~ 'Partnership interests and other~ "~ F*~ r ~ B*"Securities sold not yet purchased: Common stocks~  e~ &+Corporate bonds~ *~ ^Fixed income securities~ (~  'Partnership interests and other~ Z~ q~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>T 0;/#WRL=yY=PF0*8X> @z     l  (  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 0} $ }  } $ } U}  $ } } $ }  } $ (      B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United Online1)Financial Assets and Liabilities Measured    at Fair Value  3 +on a Recurring Basis at June 30, 2018 Using      Quoted prices in   Other    Significant     Fair value at   active markets    observable    unobservable    June 30,   identical assets   inputs   inputs ~  (Level 1)   (Level 2)   (Level 3)Assets:     /'Securities and other investments owned:     "Common stocks and warrants~ ~    $-  ~ Corporate bonds~ e -  ~  e   -Fixed income securities~ Z -  ~  Z   -Loans receivable~  -    -  ~ 'Partnership interests and other~ z~ f  ~  .  ~ +#Total assets measured at fair value~ ʤ ~ Z ~  ޿  ~ Z      Liabilities:     *"Securities sold not yet purchased:      Common stocks~  e~  e   $-   $-Corporate bonds~ * -  ~  *  Fixed income securities~ ( -  ~  (   -'Partnership interests and other~ Z~ Z    -   -/'Total securities sold not yet purchased~ ~   ~  S   -     Dl;/#> @*%''&&%%"""""" ""               l  )T  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 0} $ }  } $ } U}  $ } } $ }  } $ )      B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United Online1)Financial Assets and Liabilities Measured    at Fair Value  1 )on a Recurring Basis at December 31, 2017    Using      Quoted prices in   Other    Significant     Fair value at   active markets    observable    unobservable  December 31,identical assets  inputs  inputs~  (Level 1)   (Level 2)   (Level 3)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~ &+~ &+   $-   $-Corporate bonds~ ^ -  ~  ^   -Fixed income securities~   -  ~      -'Partnership interests and other~ q~ q    -   -/'Total securities sold not yet purchased~ ~ Ɯ  ~  J   -D-l;/#4 OboK'> !"#$%&'(                 -!%Mandatorily redeemable noncontrolling!!~ !E!!! !-!! !  ! -! ! !~ !E!/"'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/4= >2&=PF0*8X> @2&((''&&###### ##              l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } a/} $ }  } $ } $}  $ } } $ }  } $ }  } $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United OnlineLevel 3)!Level 3 Changes During the PeriodLevel 3    Balance at   Fair    Relating to    Purchases,    Transfer in    Balance at     Beginning of   Value    Undistributed    Sales and    and/or out   End of    Year    Adjustments   Earnings    Settlements    of Level 3   Period & Six Months Ended June 30, 2018                  " Common stocks and warrants ~   ~ J  ~    ~    $-  ~  Loans receivable~ ~     -  ~ : -~ 'Partnership interests and other~ ~ "  ~  N  ~  -~ -%Mandatorily redeemable noncontrolling~ E -  ~  B   - -~ :B/'interests issued after November 5, 2003     &Six Months Ended June 30, 2017     "Common stocks and warrants~ ~    $-  ~ N $-~ Corporate bonds~  -    -   -~  -Loans receivables -~ r    -  ~ b -~ Partnership interests~ ~ &*    -  ~  -~  -%Mandatorily redeemable noncontrolling~ :2~ a  ~     -~ ~ /'interests issued after November 5, 2003 Contingent consideration~ j~ "    -  ~ z - -$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/Dkl;/#pT9#!{!xn+> ~=PF0*8X> @"$                      l  x  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } } $ } U} $       B. Riley Financial, Inc. 10-Q 08/03/2018kcPrincipal Investments United Online segment - Revenues in the Principal Investments - United Online June 30, 2018 Partnership investments ~ f  Due from related party  ~ B  Maximum exposure to loss ~ n   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/& @;/#==PF0*8X> @2   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } $4} $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018:2Acquisition 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`THM4k_S+=PF0*8X> @*  l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich InvesAcquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 0.} $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018:2Acquisition 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~ _*"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/@1 Dl`THNHZ4M=PF0*8X> @*  l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 6} $ } y} $       B. Riley Financial, Inc. 10-Q 08/03/2018Acquisition 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  l  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR Co!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 0.} $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018Acquisition 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|pdjrs%__=PF0*8X> @*  l  (  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)NOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } $4} $ } } $ } } $                             B. Riley Financial, Inc. 10-Q 08/03/2018'Pro Forma Financial InformationPro Forma (Unaudited)    Three Months    Six Months    Ended June 30,   Ended June 30,  ~   ~  Revenues ~   ~   2 *Net (loss) income attributable to B. Riley ~   ~ θ Financial, Inc.'Basic (loss) earnings per shareQq= ףp?)!Diluted (loss) earnings per share)\()\(?1)Weighted average basic shares outstanding~ Ng3~ +3+Weighted average diluted shares outstanding~ *~ 2l$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8sg[H'=PF0*8X> @           l  >  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } U} $       B. Riley Financial, Inc. 10-Q 08/03/2018!NOTE 4 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 June 30, 2018     Securities borrowed~ = $- ~  =  ~ = $-Securities loaned~ B= $- ~  B=  ~ B= $-As 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/8eyma:\r~L@4 =PF0*8X> @J)               l  TN  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDING NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } +} $ }  } $ }  } $                         B. Riley Financial, Inc. 10-Q 08/03/2018"NOTE 5 ACCOUNTS RECEIVABLEJune 30, December 31,  ~   ~   Accounts receivable ~ &  ~  , $Investment banking fees, commissions  ~  B   ~ A  and other receivables Unbilled receivables  ~ ©   ~  !Total accounts receivable~ ~ >E'Allowance for doubtful accounts~ ~  Accounts receivable, net~ ^~ 8$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0xl`5sth\4=PF0*8X> @Z      l  ^  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } I"} $ } U} $ } U}  $ } U} $ } U} $       B. Riley Financial, Inc. 10-Q 08/03/2018"NOTE 5 ACCOUNTS RECEIVABLEThree Months Ended  Six Months Ended   June 30,   June 30,   ~   ~   ~   ~  $ Balance, beginning of period ~ V   ~   ~    ~  ! Add: Additions to reserve  ~ ^   ~    ~ "    ~    Less: Write-offs  ~    ~    ~    ~ b Less: Recoveries -~     -  ~ Balance, end of period~ r ~ ^  ~  r   ~ ^ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.xl`"5Qou=PF0*8X> @           l  }  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)Senior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } a/} $ } } $ } U} $ } $} $ } U} $ } U} $ } $} $ } U} $       B. Riley Financial, Inc. 10-Q 08/03/20183+NOTE 6 GOODWILL AND OTHER INTANGIBLE ASSETSAs of June 30, 2018As of December 31, 2017     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  ~ Z  ~   ~ j  ~ 2  ~ :  Domain names7 Years~ ~     ~  ~ ~~ ~ !Advertising relationships8 Years~ ~  f   ~  .~ ~ N~ F/'Internally developed software and other0.5 to 4 Years~ 4~     ~  ~ 4~ ~ " intangibles Trademarks 7 to 8 Years~ zA~      ~  5~ zA~ ~ ~: Total~  ~     ~  ~  ~ ~ ^     Non-amortizable assets:      Tradenames~ 2  -   ~  2~ 2 -~ 2Total intangible assets~  &~   ~  5~ &~ ~ y$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>c0sg[O{Lgr[\~rJ=PF0*8X> @                     l  q  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTAN!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 0} $ }  } $ }  } $                         B. Riley Financial, Inc. 10-Q 08/03/2018Senior Notes PayableJune 30, December 31,  ~   ~  / '7.50% Senior notes due October 31, 2021 ~   ~ ~& + #7.50% Senior notes due May 31, 2027  ~ R$   ~ * 0 (7.25% Senior notes due December 31, 2027  ~ :   ~  , $7.375% Senior notes due May 31, 2023  ~ 3    - ~ ~ v -%Less: Unamortized debt issuance costs~ F~ "~ "_~ m $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0U~rf'id =PF0*8X> @Z      l   f  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 7} $ }  } $ }  }  $ } } $ }  } $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/20184,NOTE 9 REVENUE FROM CONTRACTS WITH CUSTOMERSReportable Segment             Principal           Auction and    Valuation and    Investments -       Capital Markets    Liquidation    Appraisal    United Online   Total / 'Revenues from contracts with customers:                    0 (Corporate finance and investment banking ~ n   $-   $-   $-  ~ n  fees( Wealth and asset management fees~ n" -    -   -~ n"1)Commissions, fees and reimbursed expenses~ R~ ~~  ~  Γ   -~ Subscription services - -    -  ~ R~ R!Service contract revenues -~ $    -   -~ $Advertising and other - -    -  ~ &%~ &%6. Total revenues from contracts with customers~ *z~ R  ~  Γ  ~ v~ c     !Other sources of revenue:     ,$Interest income - Securities lending~ f -    -   -~ f#Trading gain on investments~ j -    -   -~ j Other~ Z -    -   -~ Z Total revenues~ f~ R ~  Γ  ~ v~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/DlrfZN C^iFTD!swb;;/#=PF0*8X> @             l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS WNOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 7} $ }  } $ }  }  $ } } $ }  } $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/20184,NOTE 9 REVENUE FROM CONTRACTS WITH CUSTOMERSReportable Segment             Principal           Auction and    Valuation and    Investments -       Capital Markets    Liquidation    Appraisal    United Online   Total / 'Revenues from contracts with customers:                    0 (Corporate finance and investment banking ~    $-   $-   $-  ~   fees( Wealth and asset management fees~ M -    -   -~ M1)Commissions, fees and reimbursed expenses~ VH~ v  ~     -~ BSubscription services - -    -  ~ &~ &!Service contract revenues -~ R    -   -~ RAdvertising and other - -    -  ~ H~ H6. Total revenues from contracts with customers~ N~ ƕ  ~    ~ d~ §      !Other sources of revenue:     ,$Interest income - Securities lending~  -    -   -~ #Trading gain on investments~ L -    -   -~ L Other~  -    -   -~  Total revenues~  n~ ƕ ~    ~ d~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/DlrfZN C^iFTD!swb;;/#=PF0*8X> @             l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 7} $ } } $ } }  $ } } $ } } $       B. Riley Financial, Inc. 10-Q 08/03/2018"NOTE 11 EARNINGS PER SHAREThree Months Ended  Six Months Ended   June 30,   June 30,   ~   ~   ~   ~  6 .Net income attributable to B. Riley Financial, ~    ~ B3  ~ O  ~ V  Inc.                 ,$Weighted average shares outstanding:      Basic~ ~   ~  &  ~ 3+Effect of dilutive potential common shares:     .& Restricted stock units and warrants~ ,~ U4  ~  j-  ~ ^`&' Contingently issuable shares~ J~ ~  ~  J  ~ ~Diluted~ &-K~ > F  ~  Fb  ~      Basic income per shareq= ףp?333333?  (\?  333333? Diluted income per share{Gz?333333?  ?  = ףp=?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<xl`4DktzJ>2 =PF0*8X> @            l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARE!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } I"} $ }  } $ }  } $                        B. Riley Financial, Inc. 10-Q 08/03/2018$NOTE 13 SHARE-BASED PAYMENTSWeighted        Average     Shares    Fair Value $ Nonvested at January 1, 2018   ~ "[0   *@  Granted   ~ 3    4@  Vested   ~ !    )\(*@  Forfeited~ J{Gz'@ "Nonvested at June 30, 2018~ bH7Gz0@ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.vj^k_S+=PF0*8X> @J         l  R  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTSNOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } I"} $ } y} $ }  } $                        B. Riley Financial, Inc. 10-Q 08/03/2018H@Amended and Restated FBR Co. 2006 Long-Term Stock Incentive PlanWeighted        Average     Shares    Fair Value $ Nonvested at January 1, 2018   ~ VA   fffff&0@  Granted   ~      (\4@  Vested   ~ f    Gz.@  Forfeited~  ףp=/@ "Nonvested at June 30, 2018~ B 1p= c1@ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.^RF:kk^G;/=PF0*8X> @J         l  H.l58  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } :} $ }  } $ }  }  $ } } $ }  } $ H      B. Riley Financial, Inc. 10-Q 08/03/2018!NOTE 16 BUSINESS SEGMENTS       Three Months Ended   Six Months Ended    June 30,   June 30,  ~   ~   ~   ~  + #Capital Markets reportable segment:                $ Revenues - Services and fees ~ jX  ~ R  ~ "  ~ g ,$Interest income - Securities lending~ f~ "  ~    ~ "Total revenues~ f~ Zu  ~   n  ~ F,$Selling, general, and administrative~ >z~ N  ~  "4  ~ expensesRestructuring charge~ J~   ~  N  ~ -%Interest expense - Securities lending~ 2~   ~  re  ~ %Depreciation and amortization~ ~   ~  F  ~ Segment income (loss)~ λ~   ~  *  ~ "3+Auction and Liquidation reportable segment:     $Revenues - Services and fees~ R~ T  ~  ƕ  ~ n/Direct cost of services~ ~ 6H  ~  ~M  ~ Cost of goods sold~  -  ~     -,$Selling, general, and administrative~ ~~   ~  z  ~ &expenses%Depreciation and amortization~ ~   ~    ~ Segment income~ j~ q  ~  6}  ~ &3+Valuation and Appraisal reportable segment:     $Revenues - Services and fees~ Γ~ b|  ~    ~ 2DlymaOSd 1MUAPn !"#$%&'()*+,-./0123456789:;<=>? Direct cost of services  ~    ~    ~ }   ~  ,!$Selling, general, and administrative!!~ !J!!!~ !!! ! ~ ! ! ! !~ !J!"expenses%#Depreciation and amortization##~ #*###~ #V## # ~ # f# # #~ ##$Segment income$$~ $,$$$~ $#$$ $ ~ $ J$ $ $~ $B$-%%Principal Investments - United Online%%%%%%%%% % % % % %%%&segment:$'Revenues - Services and fees''~ ''''~ 'b'' ' ~ ' c' ' '~ '>' (Revenues - Sale of goods((~ (r(((~ ((( ( ~ (  ( ( (~ (:()Total revenues))~ )v)))~ )^)) ) ~ ) d) ) )~ )v)*Direct cost of services**~ ****~ *** * ~ * * * *~ *–*+Cost of goods sold++~ +~+++~ +++ + ~ + + + +~ ++,,$Selling, general, and administrative,,~ ,,,,~ ,f,, , ~ , , , ,~ ,,-expenses%.Depreciation and amortization..~ ....~ .Z.. . ~ . . . .~ ../Restructuring charge// /-///~ /N// /  / -/ / /~ /v/0Segment income00~ 0J000~ 0JO00 0 ~ 0 0 0 0~ 0051-Consolidated operating income from reportable11~ 12111~ 1N11 1 ~ 1 F1 1 1~ 1}12segments3333333333 3 3 3 3 333/4'Corporate and other expenses (including44~ 4444~ 444 4 ~ 4 ^M4 4 4~ 4bQ4/5'restructuring recovery of $172 and $21026*during the three and six months ended June17)30, 2018, respectively, and restructuring18)charge of $2,182 during the three and six"9months ended June 30, 2017:Interest income::~ ::::~ :Z:: : ~ : : : :~ :j:$;Income on equity investments;;~ ;vL;;; ;-;; ; ~ ; A; ; ; ;-;<Interest expense<<~ <&^<<<~ <j<< < ~ < < < <~ <<"=Income before income taxes==~ =*j===~ = == = ~ = F= = =~ =ҩ=1>)(Provision for) benefit from income taxes>>~ >>>>~ >'>> > ~ > > > >~ >c>? Net income??~ ?&???~ ?4?? ? ~ ? a? ? ?~ ? ?Dl 6E1AUsc.%7Se@ABCDEFG8@0Net income (loss) attributable to noncontrolling@@~ @ @@@~ @N@@ @ ~ @ @ @ @~ @n@A interests6B.Net income attributable to B. Riley Financial,B~ B BB~ BB3BB ~ B OB B ~ BVB CInc.D$E____________________________1F)Created by Morningstar Document Research.0G(http://documentresearch.morningstar.com/8=PF0*8X> @GGFFEEBBBBBB BB           l  #T%U  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } a/} $ } U} $ } $}  $ } } $ }  } $ #      B. Riley Financial, Inc. 10-Q 08/03/2018!NOTE 16 BUSINESS SEGMENTSThree Months Ended  Six Months Ended   June 30,   June 30,   ~   ~   ~   ~    Revenues:            % Revenues - Services and fees:                  North America ~ 4  ~   ~ ֓   ~    Australia -~     -  ~ >Europe~  ~   ~    ~  *"Total Revenues - Services and fees~ A~ . ~     ~ v'      Revenues - Sale of goods      North America~ r~  ~     ~ :     /'Revenues - Interest income - Securities     lending: North America~ f~ " ~    ~ "     Total Revenues:      North America~ V~ ~ ~  m   ~ / Australia -~     -  ~ >Europe~  ~   ~    ~  Total Revenues~ ~  ~  ~   ~ VLDlyma>U)]y Dx7 !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/ (=PF0*8X> @#""!!                l  hc  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } $4} $ } $} $ } $} $                        B. Riley Financial, Inc. 10-Q 08/03/2018!NOTE 16 BUSINESS SEGMENTSJune 30, December 31,  ~   ~  3 +Long-lived Assets - Property and Equipment,         net:  North America ~   ~ &   Australia   -    - Europe - - Total~ ~ &$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.yma MA5 =PF0*8X> @Z      l  (d   dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } 7} $ }  } $ }  } U} $ } } $ }  } U (      B. Riley Financial, Inc. 10-Q 08/03/2018Income StatementThree Months Ended  Three Months Ended    June 30, 2018    June 30, 2017    Amount   %   Amount   %   Revenues:             Services and fees ~ A    ̬W@ % ~ .    fffff&X@ %, $Interest income - Securities lending  ~ f    333333@ %  ~ "    ffffff @ % Sale of goods~ r~  %  ~    ? %Total revenues~ ~  %  ~    ~  %     Operating expenses:     Direct cost of services~ 333333&@ %  ~     33333;@ %Cost of goods sold~ ~  %  ~     ? %4,Selling, general and administrative expenses~ ή̌N@ %  ~  jM  LL@ %Restructuring charge~  ? %  ~  a  "@ %-%Interest expense - Securities lending~ Iffffff@ %  ~  v  ffffff@ % Total operating expenses~ 33333SS@ %  ~     X@ %Operating income~ 333336@ %  ~  (  ffffff@ %Other income (expense):     Interest income~ ? %  ~  Z  ? %%Income from equity investment~ vL333333@ %    -  ~  %Interest expense~ &^  %)  ~  j  ffffff %)"Income before income taxes~ *j2@ %  ~     333333? %1)(Provision for) benefit from income taxes~ 333333 %)  ~  '  ffffff@ % Net income~ &ffffff,@ %  ~  4  ~  %Dlvj5^\u "?R\lt !"#$%&'1 )Net income attributable to noncontrolling  ~      333333? %  ~ N    ? %! interests6".Net income attributable to B. Riley Financial,"~ " """"+@ "%" ~ " B3" " ""@ "% #Inc.$$%____________________________1&)Created by Morningstar Document Research.0'(http://documentresearch.morningstar.com/]=PF0*8X> @z''&&%%""""        l  j  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2)!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } -} $ }  } $ }  } $} $ } } $ }  } $} $ }  } $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018RevenuesThree Months Ended  Three Months Ended    June 30, 2018    June 30, 2017   Change    Amount   %   Amount   %   Amount   % % Revenues - Services and Fees:                         Capital Markets segment ~ jX    YL@ % ~ R    @@@ % ~     ̌l@ %' Auction and Liquidation segment  ~ R    ffffff5@ %  ~ T    Y@@ %  ~ N    7@ %'Valuation and Appraisal segment~ Γ@ %  ~  b|  '@ %~ n2@ %-%Principal Investments - United Online~ 333333"@ %  ~  b  ffffff3@ %~  -12.0 %segmentSubtotal~ A̬W@ %  ~  .  fffff&X@ %~ ^Sfffff&U@ %     !Revenues - Sale of goods:     -%Principal Investments - United Online~ r~  %  ~    ? %~ v -55.6 %segment     -%Interest income - Securities lending:     Capital Markets segment~ f333333@ %  ~  "  ffffff @ %~ VDfffffh@ %Total revenues~ ~  % ~    ~  %~ & V@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BX~r!8gT-? =PF0*8X> @             l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } <(} $ }  } $} $ }  } $} $ } } $} $ }  } $} $ }  } $} $ }  } $}  $ !!!!!!!!!! ! ! ! ! !!!!!!!!! B. Riley Financial, Inc. 10-Q 08/03/2018kcDirect Cost of Services. Direct cost of services and direct cost of services measured as a percenta( Three Months Ended June 30, 2018( Three Months Ended June 30, 2017           Principal             Principal        Auction and    Valuation and    Investments -       Auction and    Valuation and    Investments -        Liquidation    Appraisal    United Online       Liquidation    Appraisal    United Online       Segment   Segment   Segment   Total   Segment   Segment   Segment   Total $ Revenues - Services and fees ~ R  ~ Γ  ~       ~ T  ~ b|  ~ b     Direct cost of services~ k~ n@  ~  &.  ~ ~ η~ 7~ 1~   )!Gross margin on services and fees~ N8~ bS ~    ~ ~ nD~ N Gross margin percentageR@ %333333L@ %   fffffR@  %  G@ %~  %R@ % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0;/#Ea=PF0*8X> @J)                            l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct Income Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } a/} $ }  } $ }  } $} $ } } $ }  } $} $ } U} $ }  } U       B. Riley Financial, Inc. 10-Q 08/03/20184,Selling, General and Administrative ExpensesThree Months Ended  Three Months Ended    June 30, 2018    June 30, 2017   Change    Amount   %   Amount   %   Amount   %  Capital Markets segment ~     33333SS@ % ~ k    N@ % ~ 3    33333cc@ %' Auction and Liquidation segment  ~ 8    @ %  ~  +    333333@ %  ~      ?@ %' Valuation and Appraisal segment  ~ &     @ %  ~      ffffff@ %  ~     3333331@ %-%Principal Investments - United Online~ 9333333@ %  ~  FG  333333(@ %~ v~  %)segment#Corporate and Other segment~ w~ * %  ~  6O  *@ %~ (fffffI@ %/'Total selling, general & administrative~ ή~  % ~  jM  ~  %~ faY@ %expenses$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2 rfZN]{=PF0*8X> @             l  (   dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and Administrat Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } :} $ }  } $ }  } U} $ } } $ }  } U (      B. Riley Financial, Inc. 10-Q 08/03/2018Income StatementSix Months Ended  Six Months Ended    June 30, 2018    June 30, 2017    Amount   %   Amount   %   Revenues:             Services and fees ~      lW@ % ~ v'   ~  %, $Interest income - Securities lending  ~     333333@ %  ~ "    ffffff? % Sale of goods~  ~  %  ~  :  ? %Total revenues~ ~ ~  %  ~  VL  ~  %     Operating expenses:     Direct cost of services~ 333333'@ %  ~  3  333333>@ %Cost of goods sold~ j~  %  ~    ? %4,Selling, general and administrative expenses~ YP@ %  ~    I@ %Restructuring charge~ n? %  ~  f  @ %-%Interest expense - Securities lending~ @ %  ~  v  ? % Total operating expenses~  33333T@ %  ~  |  9V@ %Operating income~ b333331@ %  ~  ^  333333&@ %Other income (expense):     Interest income~ ? %  ~  j  ? %%Income from equity investment~ Affffff? %    -  ~  %Interest expense~ ffffff %)  ~     %)"Income before income taxes~ F333333*@ %  ~  ҩ  333333"@ %1)(Provision for) benefit from income taxes~ 333333 %)  ~  c  333333@ % Net income~ affffff$@ %  ~     ,@ %Dlvj9fd} *GZdt| !"#$%&'8 0Net income (loss) attributable to noncontrolling  ~     ? %  ~ n   ~  %! interests6".Net income attributable to B. Riley Financial,"~ "O""""ffffff#@ "%" ~ " V" " ""-@ "% #Inc.$$%____________________________1&)Created by Morningstar Document Research.0'(http://documentresearch.morningstar.com/`=PF0*8X> @z''&&%%""""        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } -} $ }  } $ }  } $} $ } } $ }  } $} $ }  } $ }  } $       B. Riley Financial, Inc. 10-Q 08/03/2018RevenuesSix Months Ended  Six Months Ended    June 30, 2018    June 30, 2017   Change    Amount   %   Amount   %   Amount   % % Revenues - Services and fees:                         Capital Markets segment ~ "     L@ % ~ g    33333s@@ % ~ -    j@ %' Auction and Liquidation segment  ~ ƕ    3@ %  ~ n/    fffff=@ %  ~ Zf    L2@ %'Valuation and Appraisal segment~ 333333 @ %  ~  2  ffffff*@ %~ "333333,@ %-%Principal Investments - United Online~ c$@ %  ~  >  ~ Z %~  -13.3 %segmentSubtotal~  lW@ %  ~  v'  ~  %~ 9S@ %     !Revenues - Sale of goods:     -%Principal Investments - United Online~  ~  %  ~  :  ? %~  -53.5 %segment     -%Interest income - Securities lending:     Capital Markets segment~ 333333@ %  ~  "  ffffff? %~ B33333o@ %Total revenues~ ~ ~  % ~  VL  ~  %~ *5fffffFU@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BX~r% @             l  q1  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } <(} $ }  } $} $ }  } $} $ } } $} $ }  } $} $ }  } $} $ }  } $}  $ !!!!!!!!!! ! ! ! ! !!!!!!!!! B. Riley Financial, Inc. 10-Q 08/03/2018kcDirect Cost of Services. Direct cost of services and direct cost of services measured as a percenta&Six Months Ended June 30, 2018&Six Months Ended June 30, 2017          Principal             Principal        Auction and    Valuation and    Investments -       Auction and    Valuation and    Investments -        Liquidation    Appraisal    United Online       Liquidation    Appraisal    United Online       Segment   Segment   Segment   Total   Segment   Segment   Segment   Total $ Revenues - Services and fees ~ ƕ  ~   ~ c      ~ n/  ~ 2  ~ >     Direct cost of services~ ~   ~  [  ~ ~ FY~ Vq~ Bi~ 3 )!Gross margin on services and fees~ B~  ~    ~ *~ ބ~ 0 Gross margin percentage~ & %J@ %   R@  % fffff&C@ %~  %33333R@ % $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0;/#Uq =PF0*8X> @J)                            l  BH  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)Cash Flow Summary Exhibit IndexExhibit Index (1) SIGNATURESU } a/} $ }  } $ }  } $} $ } } $ }  } $} $ }  } $ }  } U       B. Riley Financial, Inc. 10-Q 08/03/20184,Selling, General and Administrative ExpensesSix Months Ended  Six Months Ended    June 30, 2018    June 30, 2017   Change    Amount   %   Amount   %   Amount   %  Capital Markets segment ~    ~ > % ~ f    K@ % ~ :    0m@ %' Auction and Liquidation segment  ~ e    @ %  ~ H    @ %  ~     fffffD@ %' Valuation and Appraisal segment  ~ K    333333 @ %  ~ B    333333@ %  ~     ~ > %-%Principal Investments - United Online~ rffffff@ %  ~  Ɨ  ffffff/@ %~ 8 %)segment#Corporate and Other segment~ ~ " %  ~    -@ %~ f)=@ %/'Total selling, general & administrative~ ~  % ~    ~  %~ 33333`@ %expenses$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2 rfZNe%=PF0*8X> @             l  W  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1) Exhibit IndexExhibit Index (1) SIGNATURESU } I;} $ }  } $ }  } $                          B. Riley Financial, Inc. 10-Q 08/03/2018Cash Flow SummarySix Months Ended   June 30,   ~   ~     (Dollars in thousands) ' Net cash (used in) provided by:         Operating activities ~  B  ~  Investing activities~ ~ JFinancing activities~ c~ ^*"Effect of foreign currency on cash~ 6~ $91Net increase (decrease) in cash, cash equivalents~ d~ ^and restricted cash$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2Oui)S\T9=PF0*8X> @b        l  e3k\yxX  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow SummaryExhibit Index (1) SIGNATURESU } I } $ } y<} $ } } I }   e      B. Riley Financial, Inc. 10-Q 08/03/2018 Exhibit Index!Incorporated by Reference Exhibit   Description  Form Exhibit  Filing Date No.        3.1* : 2Amended and Restated Certificate of Incorporation,      / 'as amended, dated as of August 17, 2015ffffff@/'Base Indenture, dated as of November 2, 8-Kffffff@ 11/2/2016/'2016, by and between the registrant and3+U.S. Bank National Association, as Trustee.@.&First Supplemental Indenture, dated as 8-K@ 11/2/2016:2of November 2, 2016, by and between the registrant.&and U.S. Bank National Association, asTrustee.333333@+#Form of 7.50% Senior Note due 2021. 8-K@ 11/2/2016@,$Second Supplemental Indenture, dated 8-Kffffff@ 5/31/201791as of May 31, 2017, by and between the registrant.&and U.S. Bank National Association, asTrustee.@+#Form of 7.50% Senior Note due 2027. 8-Kffffff@ 5/31/2017D lym9d}2]1Nj !"#$%&'()*+,-./0123456789:;<=>?       !ffffff@!.!&Third Supplemental Indenture, dated as! !8-K!ffffff@! 12/13/2017""0"(of December 13, 2017, by and between the##6#.registrant and U.S. Bank National Association,$$$ as Trustee.%%%%%%%&@&+&#Form of 7.25% Senior Note due 2027.& &8-K&ffffff@& 12/13/2017'''''''(333333@(,($Fourth Supplemental Indenture, dated( (8-K(ffffff@( 5/17/2018))6).as of May 17, 2018, by and between the Company**.*&and U.S. Bank National Association, as+++Trustee.,,,,,,,-@-+-#Form of 7.375% Senior Note due 2023- -8-K-@- 5/17/2018......./333333$@///'$800.0 Million Senior Secured Term Loan/ /8-K/333333$@/ 6/20/201800/0'Facility Commitment Letter, dated as of11:12June 17, 2018 by and among the Company, Guggenheim2202(Corporate Funding, LLC and Vintage Rodeo333 Parent, LLC.44444445ffffff$@525*Equity Commitment Letter, dated as of June5 58-K5ffffff$@5 6/20/2018666 17, 2018 .77777778$@828*Vintage Rodeo, L.P. Subscription Agreement8 88-K8$@8 6/20/201899/9'and Questionnaire, dated as of June 17,::~ :;;;;;;;<$@<0<(Side Letter re Subscription, dated as of< <8-K<$@< 6/20/2018==0=(June 17, 2018 by and between the Company>>>and Vintage Rodeo, L.P.???????D l{Lh2hQibz.@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@%@@/@'Limited Guarantee, dated as of June 17,@ @8-K@%@@ 6/20/2018AA3A+2018 by and among the Company, Vintage RTO,BBBL.P. and Rodeo.CCCCCCCD333333%@D0D(Mutual Indemnity/Contribution Agreement,D D8-KD333333%@D 6/20/2018EE2E*dated as of June 17, 2018 by and among theFF5F-Company, Vintage RTO, L.P. and Samjor Family,GG GLP.HHHHHHH I31.1*I3I+Certification of Co-Chief Executive OfficerIIIIJJ7J/pursuant to Rules 13a-14 and 15d-14 promulgatedKK1K)under the Securities Exchange Act of 1934LLLLLLL M31.2*M3M+Certification of Co-Chief Executive OfficerMMMMNN7N/pursuant to Rules 13a-14 and 15d-14 promulgatedOO1O)under the Securities Exchange Act of 1934PPPPPPP Q31.3*Q0Q(Certification of Chief Financial OfficerQQQQRR7R/pursuant to Rules 13a-14 and 15d-14 promulgatedSS1S)under the Securities Exchange Act of 1934TTTTTTTU32.1**U3U+Certification of Co-Chief Executive OfficerUUUUVV6V.pursuant to 18 U.S.C. Section 1350, as adoptedWW5W-pursuant to Section 906 of the Sarbanes-OxleyXXX Act of 2002YYYYYYYZ32.2**Z3Z+Certification of Co-Chief Executive OfficerZZZZ[[6[.pursuant to 18 U.S.C. Section 1350, as adopted\\5\-pursuant to Section 906 of the Sarbanes-Oxley]]] Act of 2002^^^^^^^_32.3**_0_(Certification of Chief Financial Officer____D lmd=eqMx%\-T`abcd``6`.pursuant to 18 U.S.C. Section 1350, as adoptedaa5a-pursuant to Section 906 of the Sarbanes-Oxley$b____________________________1c)Created by Morningstar Document Research.0d(http://documentresearch.morningstar.com/P]5=PF0*8X> @"ddccbb l  !ȚX  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit Index SIGNATURESU } y } $ } U5} $ !      B. Riley Financial, Inc. 10-Q 08/03/2018 Exhibit Index 101.INS*  XBRL Instance Document            101.SCH* / 'XBRL Taxonomy Extension Schema Document            101.CAL* 4 ,XBRL Taxonomy Extension Calculation Linkbase    Document101.DEF*3+XBRL Taxonomy Extension Definition LinkbaseDocument101.LAB*.&XBRL Taxonomy Extension Label LinkbaseDocument101.PRE*,$XBRL Taxonomy Extension PresentationLinkbase Document  *Filed herewith. **Furnished herewith.$____________________________1)Created by Morningstar Document Research.D1 lymS|tmk]$ 0 (http://documentresearch.morningstar.com/H=PF0*8X> @*  l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??. FORM 10QB RILEY FINANCIAL INCB RILEY FINANCIAL INC (1)Table of Contents Balance SheetIncome StatementIncome Statement (1)!Condensed Consolidated Statemen Cash Flows!Principal Investments United On!Principal Investments Unite (1)!Principal Investments Unite (2)!Principal Investments Unite (3)!Principal Investments Unite (4)!Principal Investments Unite (5)!Principal Investments Unite (6)!Principal Investments Unite (7)!Acquisition of Wunderlich Inves!Acquisition of Wunderlich I (1)Acquisition of FBR CoAcquisition of FBR Co (1)!Pro Forma Financial InformationNOTE 4 SECURITIES LENDINGNOTE 5 ACCOUNTS RECEIVABLE NOTE 5 ACCOUNTS RECEIVABLE (1)!NOTE 6 GOODWILL AND OTHER INTANSenior Notes Payable!NOTE 9 REVENUE FROM CONTRACTS W!NOTE 9 REVENUE FROM CONTRAC (1)NOTE 11 EARNINGS PER SHARENOTE 13 SHAREBASED PAYMENTS!Amended and Restated FBR Co 200NOTE 16 BUSINESS SEGMENTSNOTE 16 BUSINESS SEGMENTS (1)NOTE 16 BUSINESS SEGMENTS (2)Income Statement (2) Revenues!Direct Cost of Services Direct !Selling General and AdministratIncome Statement (3) Revenues (1) Direct Cost of Services Di (1)!Selling General and Adminis (1)Cash Flow Summary Exhibit IndexExhibit Index (1)U } } } 0       B. Riley Financial, Inc. 10-Q 08/03/2018 SIGNATURES B. Riley Financial, Inc.    By: / s / PHILLIP J. AHN Date: August 3, 2018  Name: Phillip J. Ahn  0 (Title: Chief Financial Officer and Chief   Operating Officer%(Principal Financial Officer)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.|p@(Tz=PF0*8X> @ Root Entry FBook    !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRS