Archive · 13 Sep 2025
B. Riley Financial Discloses Accounting Weaknesses Amid Audit Transition
B. Riley, a financial firm, is having trouble with its financial reports.
They're switching to a new accounting firm but first, they had to tell everyone about 10 problems they found in how they keep track of their money and investments.
The old accounting firm, Marcum, pointed out these issues, like how B. Riley figures out the value of its investments and how it handles deals with people connected to the company.
Because the financial reports are late, the company could be kicked off the stock market.
The company is also dealing with an investigation by the SEC related to a past deal.
B. Riley is working to fix things and hopes to get its reports done soon.
B. Riley Financial Inc. disclosed 10 weaknesses in its financial controls.
The weaknesses were identified in consultation with its former auditor, Marcum LLP.
B. Riley is transitioning to a new auditor, BDO USA.
The delay in filing audited results has prompted a potential delisting from Nasdaq by September 29.
An SEC investigation is underway related to the firm's handling of a transaction involving Franchise Group Inc.
- Who
- B. Riley Financial Inc.
- What
- Disclosed 10 weaknesses in its financial controls, cited by outgoing auditor Marcum LLP, as it transitions to BDO USA.
- When
- The weaknesses were disclosed in a filing on Friday, related to the overdue 2024 annual report.
- Where
- US Securities and Exchange Commission.
- Why
- To address weaknesses, as the company works to finalize overdue financial reports and navigate an SEC investigation.
- Company
- B. Riley Financial Inc.
- Auditor
- Marcum LLP (Former), BDO USA (Current)
- Weaknesses
- 10 identified in financial controls
- SEC Investigation
- Related to Franchise Group Inc. and Brian Kahn
- Nasdaq Delisting Deadline
- September 29, 2024