Great Elm Sells Subsidiary Seven25

TL;DR

GEG selling off Seven25 to focus on other stuff, deal expected Q4.

AI Summary

Great Elm Group, Inc. announced on September 11, 2024, that it has entered into a definitive agreement to sell its wholly-owned subsidiary, Seven25, to an unrelated third party. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. This divestiture is part of Great Elm Group's strategy to focus on its other business segments.

Why It Matters

This sale indicates a strategic shift for Great Elm Group, Inc., potentially allowing them to streamline operations and focus resources on more profitable or core business areas.

Risk Assessment

Risk Level: medium — The sale of a subsidiary can introduce execution risk, and the financial impact on Great Elm Group's future performance is yet to be fully realized.

Key Players & Entities

• Great Elm Group, Inc. (company) — Registrant
• Seven25 (company) — Wholly-owned subsidiary being sold
• September 11, 2024 (date) — Date of the agreement
• fourth quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

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

Filing Documents

• geg-20240911.htm (8-K) — 47KB
• geg-ex16_1.htm (EX-16.1) — 7KB
• 0000950170-24-106875.txt ( ) — 208KB
• geg-20240911.xsd (EX-101.SCH) — 52KB
• geg-20240911_htm.xml (XML) — 6KB

01 Changes in Registrant's Certifying Accountant

Item 4.01 Changes in Registrant's Certifying Accountant. On September 11, 2024, the Audit Committee of Great Elm Group, Inc.'s ("GEG") Board of Directors dismissed Grant Thornton LLP ("Grant Thornton") as GEG's independent registered public accounting firm, effective September 11, 2024. On September 11, 2024, the Audit Committee also approved the appointment of Deloitte & Touche LLP ("Deloitte") as GEG's independent registered public accounting firm to perform independent audit services for the fiscal year ending June 30, 2025. Grant Thornton's audit reports for the fiscal years ended June 30, 2024 and 2023 on GEG's consolidated financial statements did not contain an adverse opinion or a disclaimer of opinion, nor was any such report qualified or modified as to uncertainty, audit scope or accounting principles. In addition, during the fiscal years ended June 30, 2024 and 2023 and the subsequent interim period through September 16, 2024 there were no (i) "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between GEG and Grant Thornton on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Grant Thornton, would have caused it to make reference to the subject matter of the disagreements in connection with its reports or (ii) "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K). GEG provided Grant Thornton with a copy of the disclosure set forth in this Item 4.01 and requested that Grant Thornton furnish GEG with a letter addressed to the U.S. Securities and Exchange Commission (the "SEC") stating whether it agrees with the statements made herein, and, if not, stating the respects in which it does not agree. A copy of such letter is attached hereto as Exhibit 16.1 to this report. During the fiscal years ended June 30, 2024 and 2023 and the subsequent interim period through Sep

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 16.1 Letter from Grant Thornton LLP, dated September 16, 2024 104 The cover page from this Current Report on Form 8-K, formatted as inline XBRL

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GREAT ELM GROUP, INC. Date: September 16, 2024 /s/ Keri A. Davis By: Keri A. Davis Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR