B. Riley Financial sees Q4 impairment charge of $68M-$74M from Nogin

In a regulatory filing, B. Riley Financial (RILY) stated, “B. Riley Financial previously disclosed in its Form 12b-25 filed with the Securities and Exchange Commission on March 18, 2025 that the company estimated at that time impairment charges to goodwill and other intangibles of $73 million to $79 million for the quarter ended December 31, 2024. These estimated impairment charges primarily related to Nogin Commerce, an indirect subsidiary of the company. Nogin has experienced challenges in executing its growth plans which has impacted current and projected operating results. In performing the annual impairment testing for the year ended December 31, 2024, these factors resulted in the conclusion that goodwill and other intangible assets of Nogin are impaired. In connection with the preparation of its annual financial statements to be included in its Annual Report on Form 10-K for the year ended December 31, 2024, the company based on the factors noted above concluded that goodwill and other intangible assets of Nogin were impaired and the charges are estimated to be approximately $68 million to $74 million. On March 31, 2025, Nogin signed a Deed of Assignment for the Benefit of Creditors, pursuant to which (i) Nogin transferred its assets to an assignee for the benefit of Nogin’s creditors, and (ii) assignee may, among other things, sell or dispose of such assets and settle all claims against Nogin. The company will no longer control or own the assets of Nogin which were approximately $9 million at December 31, 2024 and its results of operations will no longer be reported in the company’s financial statements after March 31, 2025.”