Great Elm Group 10-Q: Q2 Update & Investment Details

TL;DR

GEG Q2 10-Q filed. Investment details and capital structure updated. Promissory note event noted Jan 31, 2025.

AI Summary

Great Elm Group, Inc. filed its 10-Q for the period ending December 31, 2024. The company reported on its financial performance, including details on its investments and capital structure. Key dates and periods covered include the fiscal quarter from October 1, 2024, to December 31, 2024, and the year-to-date period from July 1, 2024, to December 31, 2024. The filing also mentions a subsequent event related to a promissory note on January 31, 2025.

Why It Matters

This filing provides investors with an update on Great Elm Group's financial health and investment activities for the second quarter of fiscal year 2025, crucial for assessing the company's current performance and future prospects.

Risk Assessment

Risk Level: medium — The filing contains standard financial reporting for a public company, but specific details on investments and capital structure can introduce medium risk due to potential volatility and financial complexities.

Key Numbers

• Q2 — Fiscal Quarter (Reporting period from 2024-10-01 to 2024-12-31)
• 2024-12-31 — End of Fiscal Year (Reporting period end date)
• 2025-01-31 — Subsequent Event Date (Date of Promissory Note event)

Key Players & Entities

• Great Elm Group, Inc. (company) — Filer of the 10-Q
• 2024-12-31 (date) — End of reporting period
• 2025-02-05 (date) — Filing date
• 2024-10-01 (date) — Start of fiscal quarter
• 2025-01-31 (date) — Subsequent event date (Promissory Note)

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share GEG The Nasdaq Stock Mark

Filing Documents

• geg-20241231.htm (10-Q) — 2206KB
• geg-ex31_1.htm (EX-31.1) — 20KB
• geg-ex31_2.htm (EX-31.2) — 19KB
• geg-ex32_1.htm (EX-32.1) — 13KB
• geg-ex99_1.htm (EX-99.1) — 60KB
• 0000950170-25-014593.txt ( ) — 10276KB
• geg-20241231.xsd (EX-101.SCH) — 1353KB
• geg-20241231_htm.xml (XML) — 2202KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets as of December 31, 2024 and June 30, 2024 3 Unaudited Condensed Consolidated Statements of Operations for the three and six months ended December 31, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended December 31, 2024 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended December 31, 2023 5 Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2024 and 2023 6 Unaudited Notes to Condensed Consolidated Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION 27 Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 5. Other Information 27 Item 6. Exhibits 28

SIGNATURES

SIGNATURES 29 Unless the context otherwise requires, "we," "us," "our," "GEG," the "Company" and terms of similar import refer to Great Elm Group, Inc. and/or its subsidiaries. Our corporate website address is www.greatelmgroup.com. The information contained in, or accessible through, our corporate website does not constitute part of this report. 1 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, LLC ( GECM ) to profitably manage Great Elm Capital Corp. (NASDAQ: GECC ), a business development company, and the ability of Monomoy CRE, LLC ( MCRE ) to manage 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

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements. Great Elm Group, Inc. Condensed Consolidated Ba lance Sheets (Unaudited) Dollar amounts in thousands (except per share data) ASSETS December 31, 2024 June 30, 2024 Current assets Cash and cash equivalents $ 44,288 $ 48,147 Restricted cash - 1,571 Receivables from managed funds 3,725 2,259 Investments in marketable securities - 9,929 Investments, at fair value 49,918 44,585 Prepaid and other current assets 5,275 1,215 Real estate assets, net 6,524 5,769 Assets of Consolidated Funds: Cash and cash equivalents 2,568 2,371 Investments, at fair value 11,902 11,471 Other assets 223 253 Total current assets 124,423 127,570 Identifiable intangible assets, net 10,510 11,037 Right-of-use assets 1,784 225 Other assets 1,770 1,614 Total assets $ 138,487 $ 140,446 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 185 $ 317 Payable for securities purchased 19 - Accrued expenses and other current liabilities 2,817 7,009 Current portion of related party payables 254 634 Current portion of lease liabilities 335 137 Liabilities of Consolidated Funds: Payable for securities purchased 340 100 Accrued expenses and other liabilities 151 162 Total current liabilities 4,101 8,359 Lease liabilities, net of current portion 1,442 57 Long-term debt (face value $ 26,945 ) 26,231 26,090 Related party payables, net of current portion - - Convertible notes (face value $ 36,380 and $ 35,494 , including $ 16,578 and $ 16,174 held by related parties, respectively) 35,838 34,900 Other liabilities 817 845 Total liabilities 68,429 70,251 Commitments and contingencies (Note 11) Stockholders' equity Preferred stock, $ 0.001 par value; 5,000,000 authorized and zero outstanding - - Common stock, $ 0.001 par value; 350,000,000 shares au

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View this 10-Q filing on SEC EDGAR