Great Elm Group Files 2024 10-K

TL;DR

GEG 2024 10-K is in. Diverse biz, healthcare, software, investments. Check financials.

AI Summary

Great Elm Group, Inc. filed its 10-K for the fiscal year ending June 30, 2024, reporting on its diverse business segments including healthcare, investment management, and software. The company's financial performance is influenced by its various subsidiaries and investment activities, with specific mentions of Durable Medical Equipment Rental Income and Administration and Service Fees. The filing details its corporate structure, including entities like Great Elm Healthcare LLC and Corbel Capital Partners SBIC LP, and outlines its business operations from its Palm Beach Gardens, Florida headquarters.

Why It Matters

This filing provides a comprehensive overview of Great Elm Group's financial health and operational strategies for the past fiscal year, impacting investors' understanding of its current standing and future prospects.

Risk Assessment

Risk Level: medium — The company operates in multiple sectors, including healthcare and investment management, which carry inherent risks, and the filing details various financial and operational factors that could impact performance.

Key Numbers

• 0630 — Fiscal Year End (Indicates the end of the reporting period for the 10-K.)
• 001-39832 — SEC File Number (Identifies the company's filing with the SEC.)

Key Players & Entities

• Great Elm Group, Inc. (company) — Filer of the 10-K
• 2024-06-30 (date) — Fiscal year end
• Great Elm Healthcare LLC (company) — Subsidiary
• Corbel Capital Partners SBIC LP (company) — Subsidiary
• Palm Beach Gardens, Florida (location) — Business address

FAQ

Key Financial Figures

• $0.001 — ch registered Common stock, par value $0.001 per share GEG The Nasdaq Stock Mark
• $727.4 million — ties at June 30, 2024 was approximately $727.4 million. GECC was established in 2016 and it
• $8.9 million — ent date. As of June 30, 2024, we had $8.9 million of net operating loss carryforwards for
• $18.4 million — common stock, to JPM for approximately $18.4 million in cash (the Sale of Controlling Intere
• $26.5 million — Investment in Forest for approximately $26.5 million in cash. For additional information s
• $0.50 — or by calling (617) 375-3006. We charge $0.50 per page to cover expenses of copying a
• $26.9 million — s. For example, in June 2022, we raised $26.9 million through the issuance of 7.25% Notes due

Filing Documents

• geg-20240630.htm (10-K) — 2302KB
• geg-ex21_1.htm (EX-21.1) — 15KB
• geg-ex23_1.htm (EX-23.1) — 3KB
• geg-ex31_1.htm (EX-31.1) — 14KB
• geg-ex31_2.htm (EX-31.2) — 14KB
• geg-ex32_1.htm (EX-32.1) — 10KB
• 0000950170-24-101834.txt ( ) — 13250KB
• geg-20240630.xsd (EX-101.SCH) — 2871KB
• geg-20240630_htm.xml (XML) — 2206KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 4 Item 1B. Unresolved Staff Comments 9 Item 1C. Cybersecurity 10 Item 2.

Properties

Properties 11 Item 3.

Legal Proceedings

Legal Proceedings 11 Item 4. Mine Safety Disclosures 11 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 11 Item 6. [Reserved] 12 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 17 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 17 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 17 Item 9A.

Controls and Procedures

Controls and Procedures 17 Item 9B. Other Information 18 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 18 PART III Item 10. Directors, Executive Officers and Corporate Governance 18 Item 11.

Executive Compensation

Executive Compensation 18 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 18 Item 13. Certain Relationships and Related Transactions, and Director Independence 18 Item 14. Principal Accountant Fees and Services 19 PART IV Item 15. Exhibits, Financial Statement Schedules 19 Item 16 Form 10-K Summary 21 Exhibit Index 19

Signatures

Signatures 22 Index to Financial Statements F- 1 i Unless the context otherwise requires, "we," "us," "our," the "Company," "Great Elm," "GEG" and terms of similar import refer to Great Elm Group, Inc. and/or its subsidiaries. Cautionary Statement Regarding Forward-Looking Information This report and certain information incorporated herein by reference contain forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "may," "will," "should," "believe," "expect," "seek," "anticipate," "intend," "estimate," "plan," "target," "project," "forecast," "envision" and other similar phrases. Although we believe the assumptions and expectations reflected in these forward-looking statements are reasonable, these assumptions and expectations may not prove to be correct, and we may not achieve the financial results or benefits anticipated. These forward-looking statements are not guarantees of actual results. Our actual results may differ materially from those suggested in the forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, including, without limitation: the ability of Great Elm Capital Management, Inc. ( GECM ) to profitably manage Great Elm Capital Corp. (NASDAQ: GECC ), a business development company, and Monomoy UpREIT, LLC ( Monomoy UpREIT ), the operating subsidiary of a private real estate investment trust with a portfolio of diversified net leased industrial assets; the dividend rate that GECC and Monomoy UpREIT will pay; the results of our investment management activities; our ability to sell the real estate properties we develop at a profit; our ability to raise capital to fund our business plan; our ability to make acquisitions and manage any businesses we may acquire; conditions in the equity capital markets and debt capital markets as well as the economy generally, includi

B usiness

Item 1. B usiness. Overview We are a publicly-traded alternative asset management company focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. We decided to invest in the asset management business because of our assessment of its ability to generate recurring free cash flows, its growth prospects and our Board of Directors' (our Board ) and employees' industry expertise. GECM, our wholly-owned registered investment adviser subsidiary, is an investment adviser providing investment management services to GECC and Monomoy UpREIT, our largest investment vehicles, as well as other private funds. The combined assets under management of these entities at June 30, 2024 was approximately $727.4 million. GECC was established in 2016 and it elected to be treated as a business development company ( BDC ) under the Investment Company Act of 1940, as amended (the Investment Company Act ). We own approximately 14.5% of GECC's shares that we may hold to generate dividends or sell to redeploy our capital in higher yielding opportunities. Monomoy UpREIT is the operating partnership of Monomoy Properties REIT, LLC. Monomoy Properties REIT, LLC was formed in 2014 with the purpose of building an industry-leading single-tenant industrial portfolio specializing in net leased assets, specifically Class B & C warehouse, distribution & light manufacturing assets. We acquired the investment management agreement of Monomoy UpREIT in May 2022. We own approximately 6.9% of Monomoy UpREIT. GECM, our wholly-owned subsidiary, earns revenue through investment management agreements with each investment vehicle that provide for management fees, property management fees, incentive fees and/or administration fees. These fees are generally based on assets under management, rent collected, investment performance and allocable expenses incurred in the administratio

Ris k Factors

Item 1A. Ris k Factors. Our business is subject to a number of risks. You should carefully consider the following risk factors, together with all of the other information included in this report, before you decide whether to invest in our securities. The following risks are not the only risks we face. If any of the following risks occurs or continues to occur, our business, financial condition and results of operations could be materially adversely affected. In such case, the trading price of our common shares could decline, and you may lose all or part of your investment. Although the risks are organized by headings, and each risk is discussed separately, many are interrelated. Risks Related to Our Business Our growth strategy may not be successful. The process to identify potential investment opportunities and strategic transaction partners, to investigate and evaluate the future returns therefrom and business prospects thereof and negotiate definitive agreements with respect to such transactions on mutually acceptable terms can be time consuming and costly. We are likely to encounter intense competition from other companies with similar business objectives to ours, including private equity and venture capital funds, sovereign wealth funds, special purpose acquisition companies ( SPACs ), investment firms with significantly greater financial and other resources and operating businesses competing for acquisitions. Many of these companies are well established, well financed and have extensive experience in identifying and effecting business combinations. We continually evaluate our assets and investments relative to other market opportunities in order to seek to maximize shareholder value. As a result, we may purchase new assets or businesses or sell existing assets or businesses at any time. If such a purchase or sale is not successfully completed, integrated or managed effectively, or does not result in the benefits or cost savings we expect, our business,

View Full Filing

View this 10-K filing on SEC EDGAR