On June 4, 2025, B. Riley Financial (RILY) was notified by Nasdaq regarding its non-compliance with the listing rule 5250(c)(1). This regulation mandates timely submission of all necessary periodic financial reports to the Securities and Exchange Commission. The notification arose due to delays in filing the company's annual report for the year ending December 31, 2024, and the quarterly report for the period ending March 30, 2025. Although this notice does not immediately affect the company’s securities listing on Nasdaq, it emphasizes the importance of rectifying the situation promptly. Nasdaq has extended an exception allowing B. Riley Financial until September 29, 2025, to address all outstanding filings. The company attributes these delays to a series of significant events and transactions during 2024 and is committed to resuming regular filing schedules by the fall of 2025.

Regulatory compliance issues have surfaced for B. Riley Financial as they received a second delinquency alert from Nasdaq earlier this year. The issue primarily stems from their inability to meet deadlines set forth under Nasdaq Listing Rule 5250(c)(1), which enforces punctual submission of essential financial documentation to regulatory authorities. This particular rule underscores the necessity for listed entities to uphold transparency and accountability through consistent reporting practices.

The correspondence from Nasdaq highlights that despite the company's failure to adhere to standard timelines, there will be no instant repercussions concerning its securities' status on the exchange. Instead, based on materials presented on June 2nd, 2025, and subsequent evaluations, Nasdaq officials decided to offer an exception pathway for the firm to restore compliance. This decision reflects a balanced approach towards addressing corporate infractions while considering extenuating circumstances impacting the organization's operational rhythm.

According to the communication, B. Riley Financial must resolve all pending submissions no later than September 29th, 2025. During this grace period, the enterprise aims to expedite completion of both annual and quarterly filings disrupted by substantial occurrences throughout 2024. These disruptions included major strategic maneuvers and complex transactions requiring additional scrutiny before formalizing official records. As part of their commitment to restoring normalcy, the management team anticipates achieving routine filing cycles by autumn 2025.

B. Riley Financial acknowledges the challenges posed by recent setbacks and remains dedicated to fulfilling its obligations under regulatory frameworks. By leveraging this opportunity provided by Nasdaq, the corporation seeks not only to mend past discrepancies but also to establish robust mechanisms ensuring future adherence to established protocols. Such efforts aim at reinforcing investor confidence and maintaining long-term credibility within capital markets.