B. Riley Financial Inc ( RILY ) shares continue to face heavy selling pressure on Tuesday after the company delayed its quarterly financial results as regulators investigate whether B. Riley properly disclosed risks associated with some of its assets.

What To Know: B. Riley stock got cut in half on Monday, closing the day down about 52% after Bloomberg reported the U.S. Securities and Exchange Commission was widening its investigation into the Los Angeles-based investment bank.

The SEC is reportedly looking into whether B. Riley adequately disclosed risks in some of its assets. The agency is also seeking information on communications between founder Bryant Riley and business partner Brian Kahn, who is the former CEO of Franchise Group Inc (FRG), which is one of B Riley’s largest investments. B. Riley reportedly advised Kahn on a buyout deal and subsequently purchased a 31% stake in FRG.

Check This Out: B. Riley Shares Plummet 50%, FRG Drama Doesn’t Bode Well For Q2: CEO

B. Riley on Monday released preliminary results for the three-month period ending June 30 showing that numbers were negatively impacted by non-cash losses. The company said it expects to report a non-cash markdown of approximately $330 to $370 million related to its investment in Freedom VCM, the indirect parent of FRG.

B. Riley now expects to report a net loss of $435 million to $475 million, or $14 to $15 per share, when it reports second-quarter results. The company had $1.1 billion in cash and investments and $2.16 billion in total outstanding debt as of June 30.

In a post on X on Tuesday, short Seller Marc Cohodes called Riley a “liar and fraud” and noted that the reported numbers at B. Riley “cant be relied upon.”

“I am not letting go of the rope until $RILY is out of business and I will have done society a huge favor,” Cohodes said in a subsequent post.

Another short seller Muddy Waters Research took to X to congratulate WolfPack Research on being the first to “publicly sound the Turd Alert” on B. Riley. In a post on X on Monday, WolfPack said if there is one thing it has learned from B. Riley, it’s that “there is always more bad news to come.”

RILY Price Action: B. Riley shares were down 11.9% at $7.18 Tuesday afternoon after falling more than 50% on Monday, per Benzinga Pro. The stock is now down about 86% over the past year.

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