| Accounting Policies, by Policy (Policies) | 12 Months Ended |
| Dec. 31, 2021 |
| Accounting Policies [Abstract] | |
| Principles of Consolidation and Basis of Presentation | ( a) Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of B. Riley Financial, Inc. and its wholly-owned and majority-owned subsidiaries. The consolidated financial statements also include the accounts of Great American Global Partners, LLC which is controlled by the Company as a result of its ownership of a 50% member interest, appointment of two of the three executive officers and significant influence over the funding of operations. All intercompany accounts and transactions have been eliminated upon consolidation. The accounting guidance requires an enterprise to perform an analysis to determine whether the enterprise’s variable interest or interests give it a controlling financial interest in a variable interest entity; to require ongoing reassessments of whether an enterprise is the primary beneficiary of a Variable Interest Entity (“VIE”); to eliminate the solely quantitative approach previously required for determining the primary beneficiary of a VIE; to add an additional reconsideration event for determining whether an entity is a VIE when any changes in facts and circumstances occur such that holders of the equity investment at risk, as a group, lose the power from voting rights or similar rights of those investments to direct the activities of the entity that most significantly impact the entity’s economic performance; and to require enhanced disclosures that will provide users of financial statements with more transparent information about an enterprise’s involvement in a VIE. |
| Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements In connection with the preparation of the Company’s consolidated
financial statements during the year ended December 31, 2021, the Company identified an error that was not material related to the consolidation
of certain VIE which primarily resulted in a gross up between investing activities and financing activities in the consolidated statements
of cash flows. In accordance with SAB No. 99, “Materiality,” and SAB No. 108, “Considering the Effects
of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the error
and determined that the related impact did not, either individually or in the aggregate, materially misstate previously issued consolidated
financial statements. A summary of revisions to certain previously reported financial information presented herein is included in
Note 23. |
| Use of Estimates | (b) Use of Estimates The preparation of the consolidated financial statements in accordance
with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported
amounts of revenue and expense during the reporting period. Estimates are used when accounting for certain items such as valuation of
securities, allowance for doubtful accounts, the fair value of loans receivables, intangible assets and goodwill, share based arrangements,
and accounting for income tax valuation allowances, recovery of contract assets and sales returns and allowances. Estimates are based
on historical experience, where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the
inherent uncertainty involved with estimates, actual results may differ. |
| Revenue Recognition | (d) Revenue Recognition The Company recognizes revenues under Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customers. Revenues from contracts with customers in the Capital Markets segment, Wealth Management segment, Auction and Liquidation segment, Financial Consulting segment, Principal Investments – Communications segment and Brands segment are primarily comprised of the following: Capital Markets segment Fees from asset management services are recognized over the period the performance obligation for the services are provided. Asset management fees are primarily comprised of fees for asset management services and are generally based on the dollar amount of the assets being managed. Revenues from sales and trading are recognized when the performance obligation is satisfied and include commissions resulting from equity securities transactions executed as agent or principal and are recorded on a trade date basis and fees paid for equity research. Revenues from other sources in the Capital Markets segment is primarily comprised of (i) interest income from loans receivable and securities lending activities, (ii) related net trading gains and losses from market making activities, the commitment of capital to facilitate customer orders and fair value adjustments on loans, (iii) trading activities from the Company’s principal investments in equity and other securities for the Company’s account, and (iv) other income. Interest income from securities lending activities consists of interest income from equity and fixed income securities that are borrowed from one party and loaned to another. The Company maintains relationships with a broad group of banks and broker-dealers to facilitate the sourcing, borrowing and lending of equity and fixed income securities in a “matched book” to limit the Company’s exposure to fluctuations in the market value or securities borrowed and securities loaned. Other revenues include (i) net trading gains and losses from market making activities in the Company’s fixed income group, (ii) carried interest from the Company’s asset management recognized as earnings from financial assets within the scope of ASC 323 - Investments - Equity Method and Joint Ventures Revenue from Contracts with Customers Investments - Equity Method and Joint Ventures Wealth Management segment Revenues from sales and trading are recognized when the performance obligation is satisfied and include commissions resulting from equity securities transactions executed as agent and are recorded on a trade date basis. Auction and Liquidation segment Revenues earned from Auction and Liquidation services contracts where the Company guarantees a minimum recovery value for goods being sold at auction or liquidation are recognized over time when the performance obligation is satisfied. The Company generally uses the cost-to-cost measure of progress for the Company’s contracts because it best depicts the transfer of services to the customer which occurs as the Company incurs costs on its contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Costs to fulfill the contract include labor and other direct costs incurred by the company related to the contract. Due to the nature of the guarantees and performance obligations under these contracts, the estimation of revenue that is ultimately earned is complex and subject to many variables and requires significant judgment. It is common for these contracts to contain provisions that can either increase or decrease the transaction price upon completion of the Company’s performance obligations under the contract. Estimated amounts are included in the transaction price at the most likely amount it is probable that a significant reversal of revenue will not occur. The Company estimates of variable consideration and determination of whether or not to include estimated amounts in the transaction price are based on an assessment of the Company’s anticipated performance under the contract taking into consideration all historical, current and forecasted information that is reasonably available to the Company. Costs that directly relate to the contract and expected to be recoverable are capitalized as an asset and included in advances against customer contracts in the accompanying consolidated balance sheets. These costs are amortized as the services are transferred to the customer over the contract period, which generally does not exceed six months, and the expense is recognized as a component of direct cost of services. If, during the auction or liquidation sale, the Company determines that the total costs to be incurred on a performance obligation under a contract exceeds the total estimated revenues to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined. If the Company determines that the variable consideration used in the initial determination of the transaction price for the contract is such that the total recoveries from the auction or liquidation will not exceed the guaranteed recovery values or advances made in accordance with the contract, the transaction price will be reduced and a loss or negative revenue could result from the performance obligation. A provision for the entire loss as negative revenue on the performance obligation is recognized in the period the loss is determined. Financial Consulting segment Principal
Investments – Communications segment Subscription
service revenues are recognized over time in the service period in which the transaction price has been determinable and the related performance
obligations for services are provided to the customer. Fees charged to customers in advance are initially recorded in the consolidated
balance sheets as deferred revenue and then recognized ratably over the service period as the performance obligations are provided. Product revenues for hardware and shipping are recognized at the time
of delivery. Revenues from sales of devices and services represent revenues recognized from sales of the magicJack devices to retailers,
wholesalers, or direct to customers, net of returns, and rights to access the Company’s servers over the period associated with
the access right period, and from sales of mobile phones and voice, text, and data services. The transaction price for devices is allocated
between equipment and service based on stand-alone selling prices. Revenues allocated to devices are recognized upon delivery (when control
transfers to the customer), and service revenue is recognized ratably over the service term. The Company estimates the return of magicJack
device direct sales as part of the transaction price using a six month rolling average of historical returns. Brands segment Payments received as consideration for the grant of a license are recorded as deferred revenue at the time payment is received and recognized ratably as revenue over the term of the license agreement. Advanced royalty payments are recorded as deferred revenue at the time payment is received and recognized as revenue when earned. Revenue is not recognized unless collectability is probable. |
| Direct Cost of Services | (d) Direct Cost of Services Direct cost of services relates to service and fee revenues. Direct costs of services include participation in profits under collaborative arrangements in which the Company is a majority participant. Direct costs of services also include the cost of consultants and other direct expenses related to Auction and Liquidation contracts pursuant to commission and fee based arrangements in the Auction and Liquidation segment. Direct cost of services in the Principal Investments - Communications segment include cost of telecommunications and data center costs, personnel and overhead-related costs associated with operating the Company’s networks, servers and data centers, sales commissions associated with multi-year service plans, depreciation of network computers and equipment, amortization expense, third party advertising sales commissions, license fees, costs related to providing customer support, costs related to customer billing and processing of customer credit cards and associated bank fees. Direct cost of services does not include an allocation of the Company’s overhead costs. |
| Interest Expense - Securities Lending Activities and Loan Participations Sold | (e) Interest Expense - Securities Lending Activities and Loan Participations Sold Interest expense from securities lending activities is included in
operating expenses related to operations in the Capital Markets segment. Interest expense from securities lending activities is incurred
from equity and fixed income securities that are loaned to the Company and totaled $51,753, $40,490, and $30,739 during the years ended
December 31, 2021, 2020, and 2019, respectively. There were no loan participations sold outstanding as of December 31, 2021 and the
loan participation sold totaled $17,316, as of December 31, 2020. Interest expense from loan participations sold totaled $878, $1,961,
and $1,405 during the years ended December 31, 2021, 2020, and 2019, respectively. |
| Concentration of Risk | (f) Concentration of Risk Revenues
in the Capital Markets, Financial Consulting, Wealth Management, Principal Investments - Communications and Brands segments are
currently primarily generated in the United States. Revenues in the Auction and Liquidation segment are primarily generated in the
United States, Australia, Canada and Europe. The Company’s activities in the Auction and Liquidation segment are executed frequently with, and on behalf of, distressed customers and secured creditors. Concentrations of credit risk can be affected by changes in economic, industry, or geographical factors. The Company seeks to control its credit risk and potential risk concentration through risk management activities that limit the Company’s exposure to losses on any one specific liquidation services contract or concentration within any one specific industry. To mitigate the exposure to losses on any one specific liquidations services contract, the Company sometimes conducts operations with third parties through collaborative arrangements. The Company maintains cash in various federally insured banking institutions. The account balances at each institution periodically exceed the Federal Deposit Insurance Corporation’s (“FDIC”) insurance coverage, and as a result, there is a concentration of credit risk related to amounts in excess of FDIC insurance coverage. The Company has not experienced any losses in such accounts. The Company also has substantial cash balances from proceeds received from auctions and liquidation engagements that are distributed to parties in accordance with the collaborative arrangements. |
| Advertising Expenses | (g) Advertising Expenses The Company expenses advertising costs, which consist primarily of costs for printed materials, as incurred. Advertising costs totaled $3,681, $3,013, and $1,903 during the years ended December 31, 2021, 2020, and 2019, respectively. Advertising expense is included as a component of selling, general and administrative expenses in the accompanying consolidated statements of income. |
| Share-Based Compensation | (h) Share-Based Compensation The Company’s share-based payment awards principally consist of grants of restricted stock, restricted stock units and costs associated with the Company’s employee stock purchase plan. In accordance with the applicable accounting guidance, share-based payment awards are classified as either equity or liabilities. For equity-classified awards, the Company measures compensation cost for the grant of membership interests at fair value on the date of grant and recognizes compensation expense in the consolidated statements of income over the requisite service or performance period the award is expected to vest. In June 2018, the Company adopted the 2018 Employee Stock Purchase Plan (“Purchase Plan”) which allows eligible employees to purchase common stock through payroll deductions at a price that is 85% of the market value of the common stock on the last day of the offering period. In accordance with the provisions of ASC 718 - Compensation - Stock Compensation, |
| Income Taxes | (i) Income Taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted tax rates in effect during the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carryforwards is provided when it is determined to be more likely than not that the benefit of such deferred tax asset will not be realized in future periods. Tax benefits of operating loss carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. If it becomes more likely than not that a tax asset will be used, the related valuation allowance on such assets would be reduced. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Once this threshold has been met, the Company’s measurement of its expected tax benefits is recognized in its financial statements. The Company accrues interest on unrecognized tax benefits as a component of income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. |
| Cash and Cash Equivalents | (j) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
| Restricted Cash | (k) Restricted Cash As of December 31, 2021, restricted cash included $927 of cash collateral
for leases. As of December 31, 2020, restricted cash included $764 of cash collateral for foreign exchange contracts and $471 of collateral
related to one of the Company’s telecommunication suppliers. Cash, cash equivalents
and restricted cash consist of the following:
December 31, December 31,
2021 2020
Cash and cash equivalents $ 278,933 $ 103,602
Restricted cash 927 1,235
Total cash, cash equivalents and restricted cash $ 279,860 $ 104,837 |
| Securities Borrowed and Securities Loaned | (l) Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are recorded based upon the amount of cash advanced or received. Securities borrowed transactions facilitate the settlement process and require the Company to deposit cash or other collateral with the lender. With respect to securities loaned, the Company receives collateral in the form of cash. The amount of collateral required to be deposited for securities borrowed, or received for securities loaned, is an amount generally in excess of the market value of the applicable securities borrowed or loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained, or excess collateral recalled, when deemed appropriate. The Company accounts for securities lending transactions in accordance with ASC 210 - Balance Sheet |
| Due from/to Brokers, Dealers, and Clearing Organizations | (m) Due from/to Brokers, Dealers, and Clearing Organizations The Company clears all of its proprietary and customer transactions through other broker-dealers on a fully disclosed basis. The amount receivable from or payable to the clearing brokers represents the net of proceeds from unsettled securities sold, the Company’s clearing deposits and amounts receivable for commissions less amounts payable for unsettled securities purchased by the Company and amounts payable for clearing costs and other settlement charges. This amount also includes the cash collateral received for securities loaned less cash collateral for securities borrowed. Any amounts payable would be fully collateralized by all of the securities owned by the Company and held on deposit at the clearing broker. |
| Accounts Receivable | (n) Accounts Receivable Accounts receivable represents amounts due from the Company’s Auction and Liquidation, Financial Consulting, Capital Markets, Wealth Management, Principal Investments - Communications and Brands customers. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management utilizes the expected loss model. Management also considers historical losses adjusted for current market conditions and the customers’ financial condition and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. The Company’s bad debt expense and changes in the allowance for doubtful accounts are included in Note 5. |
| Leases | (o) Leases The Company determines if an arrangement is, or contains, a lease at the inception date. Operating leases are included in right-of-use assets, with the related liabilities included in operating lease liabilities in the consolidated balance sheets. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rate in determining the present value of lease payments. Variable components of the lease payments such as fair market value adjustments, utilities, and maintenance costs are expensed as incurred and not included in determining the present value. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components which are accounted for as a single lease component. See Note 9 for additional information on leases. |
| Property and Equipment | (p) Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Property and equipment held under finance leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Depreciation expense on property and equipment was $3,865, $3,632, and $5,202 during the years ended December 31, 2021, 2020, and 2019, respectively. |
| Loans Receivable | (q) Loans Receivable Under ASC 326 - Financial Instruments – Credit Losses Loans receivable, at fair value totaled $873,186 and $390,689 as of
December 31, 2021 and 2020, respectively. The loans have various maturities through March 2027. As of December 31, 2021 and 2020,
the historical cost of loans receivable accounted for under the fair value option was $877,527 and $405,064, respectively, which included
principal balances of $886,831 and $416,401, respectively, and unamortized costs, origination fees, premiums and discounts, totaling $9,304
and $11,337, respectively. During the years ended December 31, 2021 and 2020, the Company recorded net unrealized gains of $10,035 and
net unrealized losses of $22,033, respectively, on loans receivable, at fair value, which is included in trading income and fair value
adjustments on loans on the consolidated statements of income. The
Company may periodically provide limited guarantees to third parties for loans that are made to investment banking and lending customers. As
of December 31, 2021, the Company has provided limited guarantees with respect to Babcock & Wilcox Enterprises, Inc. (“B&W”)
as further described in Note 17(b). In accordance with the credit loss standard, the Company evaluates the need to record an allowance
for credit losses for these loan guarantees since they have off-balance sheet credit exposures. As of December 31, 2021, the Company
has not recorded any provision for credit losses on the B&W guarantees since the Company believes that there is sufficient collateral
to protect the Company from any credit loss exposure. Interest income on loans receivable is recognized based on the stated interest rate of the loan on the unpaid principal balance plus the amortization of any costs, origination fees, premiums and discounts and is included in interest income - loans and securities lending on the consolidated statements of income. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. Unearned income, discounts, and premiums are amortized to interest income using a level yield methodology. Badcock Loan Receivable On
December 20, 2021, the Company entered into a Master Receivables Purchase Agreement (“Receivables Purchase Agreement” with
W.S. Badcock Corporation, a Florida corporation (“WSBC”), an indirect wholly owned subsidiary of Franchise Group, Inc., a
Delaware corporation (“FRG”). The Company paid $400,000 in cash to WSBC for the purchase of certain consumer credit receivables
of WSBC. The Company recognized the $400,000 as part of its loans receivable, at fair value on the consolidated balance sheets, which
is collateralized by the performance of the consumer credit receivables of WSBC. In connection with the Receivables Purchase Agreement,
the Company entered into a Servicing Agreement (the “Servicing Agreement”) with WSBC pursuant to which WSBC will provide to
the Company certain customary servicing and account management services in respect of the receivables purchased by the Company under the
Receivables Purchase Agreement. In addition, subject to certain terms and conditions, FRG has agreed to guarantee the performance by WSBC
of its obligations under the Receivables Purchase Agreement and the Servicing Agreement. |
| Securities and Other Investments Owned and Securities Sold Not Yet Purchased | (r) Securities and Other Investments Owned and Securities Sold Not Yet Purchased Securities owned consist of equity securities including, common and preferred stocks, warrants, and options; corporate bonds; other fixed income securities including, government and agency bonds; loans receivable valued at fair value; and investments in partnerships. Securities sold, but not yet purchased represent obligations of the Company to deliver the specified security at the contracted price and thereby create a liability to purchase the security in the market at prevailing prices. Changes in the value of these securities are reflected currently in the results of operations. As of December 31, 2021 and 2020, the Company’s securities and other investments owned and securities sold not yet purchased at fair value consisted of the following securities: |
| Goodwill and Other Intangible Assets | (s) Goodwill and Other Intangible Assets The Company accounts for goodwill and intangible assets in accordance with the accounting guidance which requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. Goodwill includes the excess of the purchase price over the fair value of net assets acquired in business combinations and the acquisition of noncontrolling interests. ASC 350 – Intangibles - Goodwill and Other When testing goodwill for
impairment, in accordance with ASC 350, the Company made a qualitative assessment of the impact of the COVID-19 outbreak on goodwill
and other intangible assets during the years ended December 31, 2021 and 2020. Based on the Company’s qualitative assessments, the
Company concluded that a positive assertion could be made from the qualitative assessments that it is more likely than not that the fair
value of the reporting units exceeded their carrying values. There were no impairments of goodwill identified during the years ended December
31, 2021, 2020, and 2019. During the years ended December
31, 2021 and 2019, the Company recognized no impairment of indefinite-lived intangibles. During the year ended December 31, 2020, the
Company determined that the COVID-19 outbreak was a triggering event for testing the indefinite-lived tradenames in the Brands segment
during the first quarter and again in the second quarter and determined that the indefinite-lived tradenames in the Brands segment were
impaired. As a result, the Company recognized impairment charges of $12,500, during the year ended December 31, 2020, which were included
as an impairment of tradenames in the Company’s consolidated statements of income. The Company reviews the
carrying value of its finite-lived amortizable intangibles and other long-lived assets for impairment at least annually or whenever
events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of
long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that the
asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount, the
impairment to be recognized is measured by the amount by which the carrying amount of the asset or asset group, if any, exceeds its
fair market value. During the years ended December 31, 2021, 2020, and 2019, the Company recognized no impairment of finite-lived
intangibles. |
| Fair Value Measurements | (t) Fair Value Measurements The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) for identical instruments that are highly liquid, observable, and actively traded in over-the-counter markets. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable and can be corroborated by market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The
Company’s securities and other investments owned and securities sold and not yet purchased are comprised of common and preferred
stocks and warrants, corporate bonds, and investments in partnerships. Investments in common stocks that are based on quoted prices in
active markets are included in Level 1 of the fair value hierarchy. The Company also holds loans receivable valued at fair value, nonpublic
common and preferred stocks and warrants for which there is little or no public market and fair value is determined by management on a
consistent basis. For investments where little or no public market exists, management’s determination of fair value is based on
the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment,
taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities
and liquidity risks. These investments are included in Level 3 of the fair value hierarchy. Investments in partnership interests include
investments in private equity partnerships that primarily invest in equity securities, bonds, and direct lending funds. The Company also
invests in priority investment funds and the underlying securities held by these funds are primarily corporate and asset-backed fixed
income securities and restrictions exist on the redemption of amounts invested by the Company. The Company’s partnership and investment
fund interests are valued based on the Company’s proportionate share of the net assets of the partnerships and funds; the value
for these investments is derived from the most recent statements received from the general partner or fund administrator. These partnership
and investment fund interests are valued at net asset value (“NAV”) and are excluded from the fair value hierarchy in the
table below in accordance with ASC 820 - Fair Value Measurements Securities and other investments owned also include investments in nonpublic entities that do not have a readily determinable fair value and do not report NAV per share. These investments are accounted for using a measurement alternative under which they are measured at cost and adjusted for observable price changes and impairments. Observable price changes result from, among other things, equity transactions for the same issuer executed during the reporting period, including subsequent equity offerings or other reported equity transactions related to the same issuer. For these transactions to be considered observable price changes of the same issuer, we evaluate whether these transactions have similar rights and obligations, including voting rights, distribution preferences, conversion rights, and other factors, to the investments we hold. Any investments adjusted to their fair value by applying the measurement alternative are disclosed as nonrecurring fair value measurements, including the level in the fair value hierarchy that was used. As of December 31, 2021 and 2020, investments in nonpublic entities valued using a measurement alternative of $59,745 and $26,948, respectively, are included in securities and other investments owned in the accompanying consolidated balance sheets. Funds held in trust represents U.S. treasury bills that were purchased with funds raised through the initial public offerings of B. Riley Principal 150 Merger Corporation (“BRPM 150”) and B. Riley Principal 250 Merger Corporation (“BRPM 250”), consolidated special purpose acquisition corporations (“SPACs”). The funds raised are held in trust accounts that are restricted for use and may only be used for purposes of completing an initial business combination or redemption of the class A public common shares of the SPAC’s as set forth in their respective trust agreements. The funds held in trust are included within Level 1 of the fair value hierarchy and included in prepaid expenses and other assets in the accompanying consolidated balance sheets. The Company has warrant liabilities related to warrants of the SPAC’s that are held by investors in BRPM 150 and BRPM 250. The warrants are accounted for as liabilities in accordance with ASC 815 - Derivatives and Hedging The following tables present information on the financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2021 and 2020.
Financial Assets and Liabilities Measured at Fair Value
on a Recurring Basis at December 31, 2021 Using
Quoted prices in Other Significant
Fair value at active markets for observable unobservable
December 31 identical assets inputs inputs
2021 (Level 1) (Level 2) (Level 3)
Assets:
Funds held in trust account $ 345,024 $ 345,024 $ — $ —
Securities and other investments owned:
Equity securities 1,384,729 1,007,180 — 377,549
Corporate bonds 7,632 — 7,632 —
Other fixed income securities 2,606 — 2,606 —
Total securities and other investments owned 1,394,967 1,007,180 10,238 377,549
Loans receivable, at fair value 873,186 — — 873,186
Total assets measured at fair value $ 2,613,177 $ 1,352,204 $ 10,238 $ 1,250,735
Liabilities:
Securities sold not yet purchased:
Equity securities $ 20,302 $ 20,302 $ — $ —
Corporate bonds 6,327 — 6,327 —
Other fixed income securities 1,994 — 1,994 —
Total securities sold not yet purchased 28,623 20,302 8,321 —
Mandatorily redeemable noncontrolling interests issued after November 5, 2003 4,506 — — 4,506
Warrant liabilities 12,938 12,938 — —
Total liabilities measured at fair value $ 46,067 $ 33,240 $ 8,321 $ 4,506
Financial Assets and Liabilities Measured at Fair Value
on a Recurring Basis at December 31, 2020 Using
Quoted prices in Other Significant
Fair value at active markets for observable unobservable
December 31 identical assets inputs inputs
2020 (Level 1) (Level 2) (Level 3)
Assets:
Securities and other investments owned:
Equity securities $ 670,340 $ 521,048 $ — $ 149,292
Corporate bonds 3,195 — 3,195 —
Other fixed income securities 1,913 — 1,913 —
Total securities and other investments owned 675,448 521,048 5,108 149,292
Loans receivable, at fair value 390,689 — — 390,689
Total assets measured at fair value $ 1,066,137 $ 521,048 $ 5,108 $ 539,981
Liabilities:
Securities sold not yet purchased:
Equity securities $ 4,575 $ 4,575 $ — $ —
Corporate bonds 4,288 — 4,288 —
Other fixed income securities 1,242 — 1,242 —
Total securities sold not yet purchased 10,105 4,575 5,530 —
Mandatorily redeemable noncontrolling interests issued after November 5, 2003 4,700 — — 4,700
Total liabilities measured at fair value $ 14,805 $ 4,575 $ 5,530 $ 4,700 As of December 31, 2021 and 2020, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $1,250,735 and $539,981, respectively, or 21.4% and 20.3%, respectively, of the Company’s total assets. In determining the fair value for these Level 3 financial assets, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity. The following table summarizes the significant unobservable inputs in the fair value measurement of level 3 financial assets and liabilities by category of investment and valuation technique as of December 31, 2021:
Fair value at Valuation Technique Unobservable Input Range Weighted
Assets:
Equity securities $ 291,178 Market approach Multiple of EBITDA 3.25x - 17.50x 6.67x
Multiple of PV-10 0.60x - 0.65x 0.61x
Multiple of Sales 1.45x - 1.60x 1.48x
Market price of related security $0.84 - $51.43 $42.13
74,157 Discounted cash flow Market interest rate 14.8% 14.8%
12,214 Option pricing model Annualized volatility 0.30 - 2.80 0.74
Loans receivable at fair value 873,186 Discounted cash flow Market interest rate 6.0% - 38.0% 26.3%
Total level 3 assets measured at fair value $ 1,250,735
Liabilities:
Mandatorily redeemable noncontrolling interests issued after November 5, 2003 $ 4,506 Market approach Operating income multiple 6.0x 6.0x The changes in Level 3 fair value hierarchy during the year ended December 31, 2021 and 2020 are as follows:
Level 3 Level 3 Changes During the Period Level 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
Year Ended December 31, 2021
Equity securities $ 149,292 88,804 — 138,766 687 377,549
Loans receivable at fair value 390,689 10,035 10,952 461,510 — 873,186
Mandatorily redeemable noncontrolling interests issued after November 5, 2003 4,700 — (194 ) — — 4,506
Warrant liabilities — — — 10,466 (10,466 ) —
Year Ended December 31, 2020
Equity securities $ 109,251 $ (4,358 ) $ — $ 54,178 $ (9,779 ) $ 149,292
Loans receivable at fair value 43,338 (22,033 ) 4,409 139,127 225,848 390,689
Mandatorily redeemable noncontrolling interests issued after November 5, 2003 4,616 — 84 — — 4,700 Under ASC 326, the Company elected the irrevocable fair value option for all outstanding loans receivable that were measured at amortized cost. The loans receivable, at fair value are included in transfers into level 3 fair value assets in the above table. The amounts reported in the table above during the years ended December 31, 2021 and 2020 include the amount of undistributed earnings attributable to the noncontrolling interests that is distributed on a quarterly basis. The carrying amounts reported in the consolidated financial statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value based on the short-term maturity of these instruments. Changes in the Level 3 fair value hierarchy during the year ended December 31, 2021 included the fair value of warrant liabilities associated with BRPM 150 and BRPM 250. The value of these warrants transferred from Level 3 to Level 1 of the fair value hierarchy when the public warrants started trading in the over-the-counter markets after the initial public offering. As of December 31, 2021 and 2020, the senior notes payable had a carrying amount of $1,606,560 and $870,783, respectively, and a fair value of $1,661,189 and $898,606, respectively. The carrying amount of the term loan approximates fair value because the effective yield of such instrument is consistent with current market rates of interest for instruments of comparable credit risk. The investments in nonpublic entities that do not report NAV are measured at cost, adjusted for observable price changes and impairments, with changes recognized in trading income (losses) and fair value adjustments on loans on the consolidated statements of income. These investments are evaluated on a nonrecurring basis based on the observable price changes in orderly transactions for the identical or similar investment of the same issuer. Further adjustments are not made until another observable transaction occurs. Therefore, the determination of fair values of these investments in nonpublic entities that do not report NAV does not involve significant estimates and assumptions or subjective and complex judgments. Investments in nonpublic entities that do not report NAV are subject to a qualitative assessment for indicators of impairment. If indicators of impairment are present, the Company is required to estimate the investment’s fair value and immediately recognize an impairment charge in an amount equal to the investment’s carrying value in excess of its estimated fair value. As of December 31, 2021 and 2020, except for the impact of the intangible impairment charge in 2020 as described in Note 8 – Goodwill and Intangible Assets, there were no additional assets or liabilities measured at fair value on a non-recurring basis. |
| Derivative and Foreign Currency Translation | (u) Derivative and Foreign Currency Translation The Company periodically uses derivative instruments, which primarily consist of the purchase of forward exchange contracts, for certain loans receivable and Auction and Liquidation engagements with operations outside the United States. During the year ended December 31, 2020, the Company’s use of derivatives consisted of the purchase of forward exchange contracts in the amount of 12,700 Euros, of which 6,700 Euros were settled. As of December 31, 2021 and 2020, forward exchange contracts in the amount of 6,000 Euros were outstanding. The forward exchange contracts were entered into to improve the predictability of cash flows related to a retail store liquidation engagement and a loan receivable. The net gain from forward exchange contracts was $1,052 and net loss was $285 during the years ended December 31, 2021 and 2020, respectively. This amount is reported as a component of selling, general and administrative expenses in the consolidated statements of income. The Company transacts business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country’s currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using period-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. Transaction gains (losses) were $1,256, ($639), and ($238), during the years ended December 31, 2021, 2020, and 2019, respectively. These amounts are included in selling, general and administrative expenses in the Company’s consolidated statements of income. As
disclosed in Note 2(ab) below, the Company has consolidated two VIE’s, BRPM 150 and BRPM 250, which have outstanding warrants that
were issued in their respective initial public offerings. The warrants have been recorded as a liability since the warrants contain a
provision to be settled in cash in the event of a qualifying cash tender offer, which is outside the control of the Company, for both
BRPM 150 and BRPM 250. The outstanding warrants are considered derivative instruments with the warrant liability measured at fair value
at each reporting date until exercised, with changes in fair value reported in other income in the consolidated statements of income.
As of December 31, 2021, the warrant liability totaled $12,938 which is included in accrued expenses and other liabilities in the consolidated
balance sheets. |
| Redeemable Noncontrolling Interests in Equity of Subsidiaries | (v) Redeemable Noncontrolling Interests in Equity of Subsidiaries The
Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the class A ordinary
shareholders in BRPM 150 and BRPM 250 sponsored SPACs. These interests are presented as redeemable noncontrolling interests in equity
of subsidiaries within the consolidated balance sheets, outside of the permanent equity section. The class A ordinary shareholders of
BRPM 150 and BRPM 250 have redemption rights that are considered to be outside of the Company’s control. As of December 31, 2021,
the carrying amount of the redeemable noncontrolling interest in equity of subsidiaries was recorded at its redemption value of 345,000.
Remeasurements to the redemption value of the redeemable noncontrolling interest in equity of subsidiaries are recorded within retained
earnings. Such remeasurements totaled $18,182, comprising of offering costs incurred in connection with the sale of class A shares of
SPAC 150 and SPAC 250 in the amount of $7,716 and initial valuation of the public warrants of SPAC 150 and SPAC 250 in the amount of $10,466. |
| Common Stock Warrants | (w) Common Stock Warrants The
Company issued 821,816 warrants to purchase common stock of the Company (the “Wunderlich Warrants”) in connection with
the acquisition of Wunderlich Securities, Inc. (“Wunderlich”) on July 3, 2017. The Wunderlich Warrants entitle the
holders of the warrants to acquire shares of the Company’s common stock from the Company at an exercise price of $17.50 per
share, subject to, among other matters, the proper completion of an exercise notice and payment. The exercise price and the number
of shares of Company common stock issuable upon exercise are subject to customary anti-dilution and adjustment provisions, which
include stock splits, subdivisions or reclassifications of the Company’s common stock. On May 16, 2019, the Company
repurchased 638,311 warrants for $2,777 ($4.35 per warrant). On June 11, 2020, 167,352 warrants held in escrow from the acquisition
of Wunderlich were cancelled in accordance with the terms of the escrow instructions. The Wunderlich Warrants expire on July 3,
2022. All warrants were exercised in the third quarter of fiscal year 2021. As of December 31, 2021 and 2020, zero and 16,153
Wunderlich Warrants to purchase shares of common stock, respectively, were outstanding. On October 28, 2019, the Company issued 200,000 warrants to purchase common stock of the Company (the “BR Brands Warrants”) in connection with the acquisition of a majority ownership interest in BR Brand Holdings LLC. The BR Brands Warrants entitle the holders of the warrants to acquire shares of the Company’s common stock from the Company at an exercise price of $26.24 per share. One-third of the BR Brands Warrants immediately vested and became exercisable upon issuance, and the remaining two-thirds of warrants will vest and become exercisable following the first and/or second anniversaries of the closing, subject to BR Brands’ (or another related joint venture with Bluestar Alliance LLC) satisfaction of specified financial performance targets. The BR Brands warrants expire three years after the last vesting event occurs. As of December 31, 2021 and 2020, 200,000 BR Brands warrants were outstanding. |
| Equity Investment | (x) Equity Investment As of December 31, 2021 and 2020, equity investments of $39,190 and $54,953, respectively, were included in prepaid expenses and other assets in the accompanying consolidated balance sheets. The Company’s share of earnings or losses from equity method investees is included in gain (loss) from equity investments in the accompanying consolidated statements of income. bebe stores, inc. As of December 31, 2021 and
2020, the Company had a 40.1% and 39.5% ownership interest, respectively, in bebe stores, inc. (“bebe”). In December 2021,
the Company purchased an additional 71,970 shares of newly issued common stock of bebe for $612 and increased its ownership interest from
39.5% to 40.1%. The equity ownership in bebe is accounted for under the equity method of accounting and is included in prepaid expenses
and other assets in the consolidated balance sheets. National Holdings Corporation As of December 31, 2020, the Company owned approximately 45% of the commons stock of National which was included in prepaid expenses and other assets in the consolidated balance sheets. The equity ownership in National is accounted for under the equity method of accounting for periods prior to February 25, 2021. On February 25, 2021, the Company completed the acquisition of National by acquiring the 55% of common stock not previously owned by the Company pursuant to an agreement and plan of merger dated January 10, 2021, following the successful completion of a tender offer commenced by us on January 27, 2021. The cash consideration for the purchase of the 55% of common stock not previously owned by the Company and settlement of outstanding share based awards was $35,314. National’s operating results subsequent to February 25, 2021 is included in the Company’s consolidated financial statements. Other Equity Investments The Company has other equity investments over which the Company exercises significant influence but do not meet the requirements for consolidation, the largest ownership interest being a 40% ownership interest in Lingo Management, LLC (“Lingo”) which was acquired in November 2020. The equity ownership in these other investments was accounted for under the equity method of accounting and is included in prepaid expenses and other assets in the consolidated balance sheets. |
| Loan Participations Sold | (y) Loan Participations Sold As
of December 31, 2021, the Company has sold investments (“Loan Participations Sold”) to third parties (“Participants”)
that are accounted for as secured borrowings under Transfers and Servicing. Under
ASC 860, a partial loan transfer does not qualify for sale accounting. A participation or other partial loan transfer that meets the
definition of a participating interest is classified as loan receivable and the portion transferred is recorded as a secured borrowing
under loan participations sold in the consolidated balance sheets. The Participants are entitled to payments made by the borrower of
the related loan equal to the current Loan Participations Sold outstanding at the interest rates for the respective investment. In the
event that the borrower defaults, the Participants have rights to payments from such borrower, but do not have recourse to the Company.
The terms of the Loan Participations Sold are commensurate with the terms of the related loan. As of December 31, 2021, there were no outstanding loan participations. As of December 31, 2020, the Company had entered into participation agreements for a total of $17,316. In addition, the interest income and interest expense related to the Loan Participations Sold resulted in interest income and interest expense which is presented gross on the consolidated statements of income. |
| Supplemental Non-cash Disclosures | (z) Supplemental Non-cash Disclosures During the year ended December 31, 2021, non-cash investing activities included: the repayment of a loan receivable in full in the amount of $133,453 with equity securities, a $51,000 note receivable issued for the sale of equity securities to a third party, $35,000 of loans receivable exchanged for newly issued debt securities, the repayment of a $2,800 loan with equity securities, and $200 of loans receivable were converted to equity. During the year ended December 31, 2021, other non-cash activities included the recognition of new operating lease right-of-use assets of $18,862 and the recognition of new operating lease liabilities of $20,137. During the year ended December 31, 2020, non-cash investing activities included $11,133 non-cash conversions of equity method investments and $26,238 conversion of loans receivable to shares of stock. In connection with the purchase of a loan receivable in the amount of $61,687, the Company funded $24,434 in cash and the remaining $37,253 remains payable as a note payable as of December 31, 2020. During the year ended December 31, 2020, other non-cash activities included the recognition of new operating lease right-of-use assets of $8,915 and the recognition of new operating lease liabilities of $8,915. During the year ended December 31, 2019, non-cash activities included the conversion of loans receivable in the amount of $12,209 into securities and other investments owned, the recognition of new operating right-of-use assets of $1,032, the recognition of new operating lease liabilities of $1,032 and the issuance of warrants to purchase the Company’s stock in the amount of $990 related to the purchase of BR Brand. |
| Reclassifications | (aa) Reclassifications Certain
prior period amounts have been reclassified to conform with the current period presentation. Such reclassifications consist of a
reclass of unbilled receivables from accounts receivables, net, to contract assets that is included in prepaid expenses and other
assets and a reclass of advances against customer contracts to contract assets that is included in prepaid expenses and other assets on the consolidated balance sheets. Certain amounts reported in the Capital Markets segment during
the years ended December 31, 2020 and 2019 have been reclassified and reported in the Financial Consulting and Wealth Management
segments during the years ended December 31, 2020 and 2019 as a result of the organizational changes that created the new Financial
Consulting segment in the fourth quarter of 2020 and Wealth Management segment in the first quarter of 2021. |
| Variable Interest Entity | (ab) Variable Interest Entity The Company holds interests in various entities that meet the characteristics of a VIE but are not consolidated as the Company is not the primary beneficiary. Interests in these entities are generally in the form of equity interests, loans receivable, or fee arrangements. The
Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion
at each reporting date. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in
the entity held either directly by the Company or indirectly through related parties. The consolidation analysis can generally be performed
qualitatively; however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also
be performed. In November 2020, the Company invested in Lingo Management, LLC (“Lingo”), a joint venture with an unaffiliated third party. On March 10, 2021, the Company also extended a promissory note to Lingo Communications, LLC (a wholly owned subsidiary of Lingo). Lingo is a VIE because the entity does not have enough equity at risk to finance its activities without additional subordinated financial support. The Company has determined that it is not the primary beneficiary because it does not have the power to direct the activities of the VIE that most significantly impact the entity’s financial performance. The Company’s variable interests in Lingo include loans receivable at fair value and an equity investment accounted for under the equity method of accounting. The
Company, through its newly acquired subsidiary, National, has entered into agreements to provide investment banking and advisory services
to numerous investment funds (the “Funds”) that are considered variable interest entities under the accounting guidance.
The
Company earns fees from the Funds in the form of placement agent fees and carried interest. For placement agent fees, the Company receives
a cash fee of generally 7% to 10% of the amount of raised capital for the Funds and the fee is recognized at the time the placement
services occurred. The Company receives carried interest as a percentage allocation (8% to 15%) of the profits of the Funds as compensation
for asset management services provided to the Funds and it is recognized under the ownership model of ASC “Topic 323: Investments
– Equity Method and Joint Ventures” as an equity method investment with changes in allocation recorded currently in the results
of operations. As the fee arrangements under such agreements are arm’s length and contain customary terms and conditions and represent
compensation that is considered fair value for the services provided, the fee arrangements are not considered variable interests and accordingly,
the Company does not consolidate such VIEs. Placement agent fees attributable
to such arrangements during the year ended December 31, 2021 were $66,263 and are included in services and fees in the consolidated
statements of income. The carrying amounts for the Company’s variable interests in
VIEs that were not consolidated is shown below.
December 31,
Securities and other investments owned, at fair value $ 27,445
Loans receivable, at fair value 205,265
Other assets 4,956
Maximum exposure to loss $ 237,666 B. Riley Principal 150 and 250 Merger Corporations During
the year ended December 31, 2021, the Company along with BRPM 150 and BRPM 250, both newly formed SPACs incorporated as Delaware corporations,
consummated the initial public offerings of 17,250,000 units of BRPM 150 and 17,250,000 units of BRPM 250. Each Unit of BRPM 150
and BRPM 250 consisted of one share of class A common stock and one-third of one redeemable warrant, each whole warrant entitling the
holder thereof to purchase one share of BRPM 150 or BRPM 250 class A common stock at an exercise price of $11.50 per share. The
BRPM 150 and BRPM 250 Units were each sold at a price of $10.00 per unit, generating gross proceeds to BRPM 150 of $172,500 and
BRPM 250 of $172,500. These proceeds which totaled $345,000 were deposited in a trust account established for the benefit of the BRPM
150 and BRPM 250 class A public shareholders and is included in prepaid expenses and other assets in the consolidated balance sheets
as of December 31, 2021. These proceeds are invested only in U.S. treasury securities in accordance with the governing documents of BRPM
150 and BRPM 250. Under the terms of the BRPM 150 and BRPM 250 initial public offerings, BRPM 150 and BRPM 250 are required to consummate
a business combination transaction within 24 months (or 27 months under certain circumstances) of the completion of their respective
initial public offerings. In
connection with the completion of the initial public offerings of BRPM 150 and BRPM 250, the Company invested in the private placement
units of BRPM 150 and BRPM 250. Both BRPM 150 and BRPM 250 are determined to be VIE’s because each of the entities do not have enough
equity at risk to finance their activities without additional subordinated financial support. The Company has determined that the class
A shareholders of BRPM 150 and BRPM 250 do not have substantive rights as shareholders of BRPM 150 and BRPM 250 since these equity interests
are determined to be temporary equity. As such, the Company has determined that it is the primary beneficiary of BRPM 150 and BRPM 250
as it has the right to receive benefits or the obligation to absorb losses of each entity, as well as the power to direct a majority of
the activities that significantly impact BRPM 150 and BRPM 250’s economic performance. Since the Company is determined to be the
primary beneficiary, BRPM 150 and BRPM 250 are consolidated into the Company’s financial statements. |
| Recent Accounting Standards | (ac) Recent Accounting Standards Not yet adopted In
March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) ,
which provide optional
guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that
are expected to be discontinued, such as the London Interbank Offered Rate (“LIBOR”). The amendments appl only
to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued.
In January 2021, the FASB issued ASU 2021-01, Reference Rate
Reform (Topic 848 ) refine the
scope of 848 through optional expedients and exceptions when accounting
for derivative contracts and certain hedging relationships. The amendments were
effective through December 31, 2022. The Company is currently assessing the potential
impacts of this ASU and does not expect it to have any material impact on its consolidated results of operations, cash flows, financial
position or disclosures. In October 2021 ,
the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business
Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The Company is currently assessing the potential impacts of this ASU and does not
expect it to have any material impact on its consolidated results of operations, cash flows, financial position or disclosures. Recently adopted In December 2019, the FASB
issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In January 2020, the FASB
issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323),
and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 The amendments
in this update should be applied prospectively and at the beginning of the period that includes the adoption date. In August 2020, the FASB
issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in
Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity The
amendments in this update can be applied through either a modified retrospective method or fully retrospective method of transition. In October 2020, the FASB
issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs The amendments
in this update should be applied prospectively and at the beginning of the period that includes the adoption date. In October 2020, the FASB
issued ASU 2020-09, Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 In October 2020, the FASB
issued ASU 2020-10, Codification Improvements to make incremental improvements to GAAP and
address stakeholder suggestions, including, among other things, clarifying that the requirement to provide comparative information in
the financial statements extends to the corresponding disclosures section. The amendments in this update should be applied retrospectively and at the beginning of the
period that includes the adoption date. Presentation of Financial Statements (Topic 205) Financial Services—Depositary and Lending (Topic 942), and
Financial Services— Investment Companies (Topic 946). Amendments to Financial Disclosures About Acquired and Disposed Businesses |
