EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2023

Basic earnings per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding, after giving effect to all dilutive potential common shares outstanding during the period. Remeasurements to the carrying value of the redeemable noncontrolling interests in equity of subsidiaries are not deemed to be a dividend (see Note 3(l)). According to ASC 480 - Distinguishing Liabilities from Equity, there is no impact on earnings per share in the computation of basic and diluted earnings per share to common shareholders for changes in the carrying value of the redeemable noncontrolling interests in equity, when such changes in carrying value which in substance approximates fair value.

Securities that could potentially dilute basic net income (loss) per share in the future that were not included in the computation of diluted net income (loss) per share were 1,169,913 and 1,721,132 during the three months ended September 30, 2023 and 2022, respectively, and 1,718,209 and 1,609,425 during the nine months ended September 30, 2023 and 2022, respectively, because to do so would have been anti-dilutive.

Basic and diluted earnings per share were calculated as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net (loss) income attributable to B. Riley Financial, Inc.	$	(73,823)	$	47,837	$	(10,287)	$	(102,384)
Preferred stock dividends	(2,015)		(2,002)		(6,042)		(6,006)
Net (loss) income available to common shareholders	$	(75,838)	$	45,835	$	(16,329)	$	(108,390)

Weighted average common shares outstanding:
Basic	29,961,068		28,293,064		28,933,546		28,068,160
Effect of dilutive potential common shares:
Restricted stock units and warrants	—		1,675,353		—		—
Diluted	29,961,068		29,968,417		28,933,546		28,068,160

Basic (loss) income per common share	$	(2.53)	$	1.62	$	(0.56)	$	(3.86)
Diluted (loss) income per common share	$	(2.53)	$	1.53	$	(0.56)	$	(3.86)