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B. Riley’s Accounting Knot: Material Weaknesses, Big Write-downs, and a Rising Audit Bill

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ousvyatsky.bsky.social @ousvyatsky.bsky.social · 9d

My new piece: B. Riley’s Accounting Knot: Material Weaknesses, Big Write-downs, and a Rising Audit Bill open.substack.com/pub/deepquar... @fmckenna.bsky.social

B. Riley’s 10-K highlights internal control failures, impairment charges, and a large increase in valuation allowance.

B. Riley’s Auditor Transition Under Constraints

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ousvyatsky.bsky.social @ousvyatsky.bsky.social · 24d

$RILY taps BDO as its new auditor, disclosing that other qualified audit firms provided non-audit services that may pose an independence risk.

Read the full piece:

B. Riley’s Auditor Transition Under Constraints open.substack.com/pub/deepquar...

B. Riley hires BDO as its new auditor, discloses independence-related conflicts with other qualifying firms

SEC comment letters trends in three charts: fewer releases and longer delays

ousvyatsky.bsky.social @ousvyatsky.bsky.social · Sep 9

More than a third of SEC comment letters on the IPO filings, including those of $CRCL, were released late. @fmckenna.bsky.social

My latest piece: SEC comment letters trends in three charts: fewer releases and longer delays open.substack.com/pub/deepquar...

What the data shows about oversight shifts and why dissemination lags matter for investors.

SEC Compensation Recovery Rule: Restatements and Related Clawbacks, Quarterly Update # 2

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Francine McKenna @fmckenna.bsky.social · Aug 25

Clawback rule update via @OUsvyatsky.bsky.social.

“…are companies with “BigR” restatements less likely to rely on accounting-based metrics for exec comp?”

I’d ask: Are cos using alt comp metrics more likely to BigR restate because no one cares about GAAP numbers? open.substack.com/pub/deepquar...

A quarterly review of compliance trends, SEC comment letters, and the complexities of recovery analysis

How Beehiiv Is Taking on Substack

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The Information @theinformation.com · Aug 19

Creator Economy: Newsletter publisher Beehiiv is on track to double its revenue this year as it hones its pitch to recruit writers from Substack, its founder and CEO tells The Information.

Read more from @kyurieff.bsky.social and Akash Pasricha 👇
https://bit.ly/4lC2zVI

Newsletter publishers are having a moment again. Beehiiv, a four-year-old competitor to the larger and older Substack, is on pace to double its total revenue this year, to $30 million, CEO and co-foun...

bit.ly

Trends in exchange listing deficiency notices: key risk areas for public companies

ousvyatsky.bsky.social @ousvyatsky.bsky.social · Aug 17

What are the most common reasons for NYSE and Nasdaq delisting notices, and why did $RILY need to request a 180-day compliance extension from Nasdaq?

Read my piece to find out: deepquarry.substack.com/p/trends-in-...

An analysis of recent Nasdaq and NYSE enforcement patterns, from financial triggers to governance and SPAC-specific concerns.

Tesla's net $23.7 billion stock grant: legal loopholes, accounting twists, and the Tornetta appeal

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ousvyatsky.bsky.social @ousvyatsky.bsky.social · Aug 12

In our new piece, @fmckenna.bsky.social and I examine the terms of Musk's 2025 RSU award and explain accounting and legal consequences. Does a legal contingency qualify as a "performance condition," and would recording no compensation expenses now be appropriate?
open.substack.com/pub/deepquar...

A deep dive into the unusual 2025 CEO award, its Nasdaq compliance questions, conflicted board dynamics, and how an appeal could trigger - or erase - billions in compensation.

Tesla's net $23.7 billion stock grant: legal loopholes, accounting twists, and the Tornetta appeal

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Francine McKenna @fmckenna.bsky.social · Aug 12

open.substack.com/pub/thedig/p... My friend and frequent collaborator @ousvyatsky.bsky.social and I explain it all with a little help from our friends @annmlipton.bsky.social and @montanaskeptic.bsky.social .

A deep dive into the unusual 2025 CEO award, its Nasdaq compliance questions, conflicted board dynamics, and how an appeal could trigger - or erase - billions in compensation.

The PCAOB role in safeguarding investors comes into focus amid legislative debate

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ousvyatsky.bsky.social @ousvyatsky.bsky.social · Aug 7

Even limited disclosures show PCAOB inspections can surface material issues—like control failures and restatements—before they escalate. For investors, that means fewer surprises and stronger reporting. Full data-driven post @ Deep Quarry: open.substack.com/pub/deepquar...

Several disclosures link PCAOB inspections to the identification of control failures and misstatements, informing the debate over the regulator’s role in protecting investors.

The PCAOB role in safeguarding investors comes into focus amid legislative debate

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roninresearch.bsky.social @roninresearch.bsky.social · Aug 6

@ousvyatsky.bsky.social has a new Substack article out worth your time @herbgreenberg.bsky.social @hmeisler.bsky.social
deepquarry.substack.com/p/the-pcaob-...

Several disclosures link PCAOB inspections to the identification of control failures and misstatements, informing the debate over the regulator’s role in protecting investors.

Crossing t's: Does Form AP quality signal audit quality?

ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jul 23

Form AP filings rarely make headlines—but they should. Our analysis with @fmckenna.bsky.social finds that missing or incorrect filings may be early signs of deeper audit quality issues. For investors, these “small” red flags could point to bigger risks ahead. deepquarry.substack.com/p/crossing-t...

This is a joint data analysis between The Dig and Deep Quarry that looks into the question of whether firms that repeatedly fall down on Form AP signal poor audit quality.

Watchdog Research: Why Are Companies Using 10-K/As to Disclose Bad News in 2021?

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Francine McKenna @fmckenna.bsky.social · Jul 18

Excellent update including proof that the Borgers sham audit mill issues have a long tail.

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Francine McKenna @fmckenna.bsky.social · Jul 18

Companies and auditors love to hide issue in amended 10-Ks. thedig.substack.com/p/watchdog-r...

How do companies sneak in bad news hoping the share price doesn't react and why are SPACs doing it so often lately?

thedig.substack.com

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ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jul 18

My new piece: deepquarry.substack.com/p/red-flags-...

401 amended 10-Ks were filed last quarter. Many were routine—but others disclosed:
🔹 Restatements
🔹 Missing clawback policies (Ex. 97)
🔹 Audit opinion replacements (BF Borgers, etc.)
🔹 Internal control failures

@fmckenna.bsky.social

Red Flags in Amended Annual Reports - Quarterly Update #7

Amended annual reports deserve investor's attention because they often deliver bad news.

Tariffs, inventory accounting, and non-GAAP metrics: which non-GAAP metrics are misleading?

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ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jul 10

Not sure if this is allowed by SEC rules - which does not mean it won't happen. I wrote about tariff-related non-GAAP adjustments recently: deepquarry.substack.com/p/tariffs-in...

As companies navigate tariffs-related disclosure challenges, they should be mindful in adjusting for tariffs in their non-GAAP presentations - or risk SEC comments

Long SEC Reviews Quarterly Update # 6

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Francine McKenna @fmckenna.bsky.social · Jul 10

Incredible original reprting on details that are only found in the extensive comment letter discussion and best mined and interpretated by my REAL not AI gal pal @ousvyatsky.bsky.social .

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ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jul 10

My new piece on SEC comments to Coinbase: 500+ days of back-and-forth with the SEC on topics such as $COIN relationship with Circle, revenue recognition practice, and insurance coverage. @fmckenna.bsky.social

Long SEC Reviews Quarterly Update # 6 open.substack.com/pub/deepquar...

Long SEC reviews reflect ongoing regulatory concerns over a company’s financial disclosures or accounting practices, signaling potential risks or uncertainties to investors.

Tariffs, inventory accounting, and non-GAAP metrics: which non-GAAP metrics are misleading?

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Ivan the K ™☑️ @ivanthek.bsky.social · Jul 8

If you think sell side equity research analysts are bad at estimating the impact of foreign currency moves on company earnings, just wait until you see what the impact of tariffs does.

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roninresearch.bsky.social @roninresearch.bsky.social · Jul 1

May sound like accounting geekery, but 1st Olga does a great job of explaining things. 2nd,there is an increasing number of companies reporting using non-gaap accounting.Will be important in understanding company fundamentals. @fmckenna.bsky.social @herbgreenberg.bsky.social @hmeisler.bsky.social

ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jul 1

Are companies allowed to exclude tariff-related costs from their non-GAAP metrics? My new piece:
Tariffs, inventory accounting, and non-GAAP metrics: Tariffs, inventory accounting, and non-GAAP metrics: which non-GAAP metrics are misleading? open.substack.com/pub/deepquar...

@fmckenna.bsky.social

As companies navigate tariffs-related disclosure challenges, they should be mindful in adjusting for tariffs in their non-GAAP presentations - or risk SEC comments

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Reposted by ousvyatsky.bsky.social

Francine McKenna @fmckenna.bsky.social · Jul 1

Excellent analysis by @ousvyatsky.bsky.social

Tariffs, inventory accounting, and non-GAAP metrics: which non-GAAP metrics are misleading?

ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jul 1

Are companies allowed to exclude tariff-related costs from their non-GAAP metrics? My new piece:
Tariffs, inventory accounting, and non-GAAP metrics: Tariffs, inventory accounting, and non-GAAP metrics: which non-GAAP metrics are misleading? open.substack.com/pub/deepquar...

@fmckenna.bsky.social

As companies navigate tariffs-related disclosure challenges, they should be mindful in adjusting for tariffs in their non-GAAP presentations - or risk SEC comments

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Reposted by ousvyatsky.bsky.social

Francine McKenna @fmckenna.bsky.social · Jun 19

“…when a quantitatively immaterial misstatement leads to a clawback, it implies that performance targets were so narrowly met that even a minor correction tipped the outcome…a 1–5% overstatement could have made the difference between receiving or forfeiting an award.”

SEC Compensation Recovery Rule: Restatements and Related Clawbacks, Quarterly Update # 1

ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jun 19

@fmckenna.bsky.social‬

ousvyatsky.bsky.social @ousvyatsky.bsky.social · Jun 19

SEC clawback rule was meant to ensure exec accountability after restatements. But in Q1 2025, 60% of companies that flagged an error didn’t file the recovery analysis. I break down what’s going wrong—and why little r clawbacks deserve investors' attention. deepquarry.substack.com/p/sec-compen...

A quarterly review of compliance trends, SEC comment letters, and the complexities of recovery analysis