B. Riley Financial Inc. said Nasdaq gave the firm more time to complete its missing quarterly financial reports, keeping the broker-dealer listed on the stock exchange until it catches up on overdue filings. The shares fell 15% in New York trading.
The exchange ordered B. Riley to file its second-quarter report with the Securities and Exchange Commission by Dec. 23, and another for the third quarter by Jan. 20, according to a company filing Wednesday.
The overdue reports have left investors without a clear idea of B. Riley's finances, and the announcement of the new delays sent the shares to their lowest level since early July. B. Riley said it expects to meet the extended deadlines, with Nasdaq once again threatening to delist B. Riley if it failed.
B. Riley filed its overdue form 10-Q for this year's first quarter on Nov. 18, which Chairman Bryant Riley called a step toward returning to a normal reporting schedule. The company has struggled to meet SEC deadlines amid souring investments, flaws in its financial reporting and an ongoing investigation of its dealings with a former key business partner, with the stock dropping more than 90% from its 2023 peak.
A Nasdaq panel held a hearing Nov. 4 on B. Riley's eligibility to stay listed, the firm said in Wednesday's filing. The panel decided to grant the extension because B. Riley has faced challenges in its financial reporting functions, and it has made an effort to "cure the current delinquency and aid in financial reporting moving forward," the company said.
B. Riley hired a national accounting adviser in early July, and appointed a new chief financial officer, Scott Yessner, who has a bonus tied in part to on-time financial reporting.
In the latest 10-Q filing on Tuesday, B. Riley reported a $12 million loss for the first three months of this year, in contrast to its prior estimate of a quarterly profit of $1 million to $6 million.
