I have been bullish on Gladstone Investment (NASDAQ: GAIN ) all the way since December 2023, when I issued my first article on the stock, titled: Gladstone Investment: Why This Monthly 10% Yielder IsRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Othe ...

we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.In this article, we will look at the financial instrument of a well-known BDC company - Gladstone Investment Corporation (NASDAQ: GAIN ), and what they provide to us.Denislav leads the investing group Trade With Beta , features of the service include: frequent picks for mispriced preferred stocks and baby bonds, w ...

Group 1 - The article focuses on Gladstone Investment Corporation (NASDAQ: GAIN) as a notable Business Development Company (BDC) and discusses its financial instruments and offerings [1] - The investing group Trade With Beta, led by Denislav, provides features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [2] - The article emphasizes the importance of active investor participation and the availability of a chat room for discussions among sophisticated traders and investors [1][2] Group 2 - The article does not provide specific financial data or performance metrics related to Gladstone Investment Corporation [1][2][3] - There is no mention of any recent news events or market trends affecting the BDC industry or Gladstone Investment Corporation specifically [1][2][3]

Financial Data and Key Metrics Changes - For Q1 2026, the company reported adjusted net investment income (NII) of $0.24 per share, down from $0.26 per share in the prior quarter [6][15] - Total investment income decreased to $23.5 million from $27.5 million in the previous quarter, primarily due to the absence of a one-time success fee and dividend income [13] - Net investment income for the quarter was $9.1 million compared to $7.2 million in the prior quarter [15] - The net asset value (NAV) decreased to $12.99 per share from $13.55 per share, influenced by distributions to shareholders and unrealized depreciation [16][17] Business Line Data and Key Metrics Changes - The company invested approximately $130 million in three new portfolio companies during the first quarter, compared to $221 million for the entire fiscal year 2025 [7] - The portfolio currently consists of 28 operating businesses, with a total investment of about $2.1 billion across 64 buyout portfolio companies since inception [9] Market Data and Key Metrics Changes - The company noted a competitive environment in the M&A market, with liquidity present but valuations remaining challenging [10] - Some consumer-focused portfolio companies have shown good results, although there are concerns regarding supply chain disruptions and tariff impacts on margins [11] Company Strategy and Development Direction - The company aims to grow its portfolio through acquisitions at attractive valuations, utilizing a combination of equity and debt investments [7] - The strategy includes generating capital gains and maintaining monthly distributions to shareholders, with a focus on liquidity and flexibility to support portfolio growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new buyout activity for the remainder of the fiscal year, despite uncertainties in the economic landscape [10] - The company is cautious about potential impacts from tariffs and supply chain issues but remains confident in the overall health of its portfolio [11] Other Important Information - The company maintained a monthly distribution of $0.08 per share, with a supplemental distribution of $0.54 per share paid in June [8][18] - The asset coverage ratio stood at 189%, providing a cushion above the required 150% coverage ratio [18] Q&A Session Summary Question: Is the recent acquisition pace indicative of better deal flow? - Management indicated that while the M&A market is competitive, they are seeing good quality deal flow and are actively pursuing acquisitions [23][24] Question: Are there signs of weakening performance across portfolio companies? - Management noted that while there is caution, overall activity levels remain stable, with some consumer companies even experiencing increased activity despite tariff impacts [26][27] Question: What is the current level of undistributed taxable income (UTI)? - Management confirmed comfort with the current UTI level and continues to monitor it on a quarterly basis [28][29] Question: Can you provide insights on Diligent Delivery Systems? - Management stated they are continuing to manage the investment and are working on restructuring, with no immediate dramatic changes planned [34][35] Question: What drove the increase in yield on interest-bearing investments? - The yield increase was primarily due to the collection of past due interest, with the underlying yield remaining consistent with previous quarters [40][41] Question: Are there changes in deal structures among competitors? - Management indicated that while competition exists, their unique strategy allows them to maintain strong underwriting standards without significant changes in structure [44][45]

Core Insights - Gladstone Investment (GAIN) reported revenue of $23.54 million for the quarter ended June 2025, reflecting a 6.2% increase year-over-year [1] - The earnings per share (EPS) remained stable at $0.24, matching the EPS from the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $23.95 million, resulting in a revenue surprise of -1.68% [1] - The company achieved an EPS surprise of +4.35%, exceeding the consensus EPS estimate of $0.23 [1] Financial Performance Metrics - Interest income from affiliate investments was reported at $6.19 million, slightly below the average estimate of $6.38 million from two analysts [4] - Interest income from cash and cash equivalents was $0.2 million, outperforming the average estimate of $0.07 million [4] - Interest income from non-control/non-affiliate investments was $15.26 million, which was lower than the estimated $16.04 million [4] - Total interest income amounted to $21.65 million, compared to the average estimate of $22.49 million [4] Stock Performance - Over the past month, shares of Gladstone Investment have returned +1.1%, while the Zacks S&P 500 composite increased by +2% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance against the broader market in the near term [3]

分组1 - Gladstone Investment (GAIN) reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, with an earnings surprise of +4.35% [1] - The company posted revenues of $23.54 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.68%, compared to year-ago revenues of $22.18 million [2] - Over the last four quarters, Gladstone Investment has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] 分组2 - The stock has gained approximately 7.7% since the beginning of the year, while the S&P 500 has increased by 8.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the coming quarter is $0.23 on $24.35 million in revenues, and $0.89 on $97.14 million in revenues for the current fiscal year [7] 分组3 - The Zacks Industry Rank indicates that the Financial - SBIC & Commercial Industry is currently in the bottom 27% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Gladstone Investment was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]

[Introduction](index=1&type=section&id=Introduction) Gladstone Investment Corporation announced its Q1 FY2025 financial results, with the full report available on the SEC website [Company Announcement](index=1&type=section&id=Company%20Announcement) Gladstone Investment Corporation announced its financial results for the first fiscal quarter ended June 30, 2025, with the full report available on the SEC's website and the company's investor section - Gladstone Investment Corporation (Nasdaq:GAIN) announced earnings for its first fiscal quarter ended June 30, 2025[1](index=1&type=chunk) - The full Quarterly Report on Form 10-Q was filed with the U.S. Securities and Exchange Commission (SEC) on August 12, 2025[1](index=1&type=chunk) [Financial Summary and Key Metrics](index=1&type=section&id=Financial%20Summary%20and%20Key%20Metrics) The company reported decreased total investment income but increased net investment income, with a decline in NAV per share and growth in total investments [Summary Financial Data](index=1&type=section&id=Summary%20Financial%20Data) The company reported a decrease in total investment income but an increase in net investment income for the quarter ended June 30, 2025, compared to the previous quarter, primarily due to a significant reduction in total expenses. Net asset value per common share saw a decline Summary Financial Performance (QoQ) | Metric | June 30, 2025 ($) | March 31, 2025 ($) | $ Change ($) | % Change (%) | | :------------------------------------------ | :------------ | :------------- | :------- | :------- | | Total investment income | $23,544 | $27,548 | $(4,004) | (14.5)% | | Total expenses, net | $14,456 | $20,319 | $(5,863) | (28.9)% | | Net investment income | $9,088 | $7,229 | $1,859 | 25.7 % | | Net realized gain | — | $20,879 | $(20,879) | (100.0)% | | Net unrealized depreciation | $(1,316) | $(10,235) | $8,919 | (87.1)% | | Net increase in net assets from operations | $7,772 | $17,873 | $(10,101) | (56.5)% | | Net investment income per weighted-average common share | $0.25 | $0.20 | $0.05 | 25.0 % | | Adjusted net investment income per weighted-average common share | $0.24 | $0.26 | $(0.02) | (7.7)% | | Net asset value per common share | $12.99 | $13.55 | $(0.56) | (4.1)% | | Total investments, at fair value | $1,036,745 | $979,320 | $57,425 | 5.9 % | | Number of portfolio companies | 27 | 25 | 2 | 8.0 % | [Quarterly Highlights and Performance Analysis](index=2&type=section&id=Quarterly%20Highlights%20and%20Performance%20Analysis) Key quarterly activities included ATM program sales, distributions, and new portfolio investments, alongside detailed income and expense analysis [Distributions and ATM Program Activity](index=2&type=section&id=Distributions%20and%20ATM%20Program%20Activity) During the quarter, the company sold common stock under its ATM program, raising net proceeds above NAV, and paid regular and supplemental distributions to common stockholders - Sold **515,295 shares** of common stock under the ATM program at a weighted-average gross price of **$14.23 per share**, raising approximately **$7.2 million** in **net proceeds**. These sales were **net proceeds above NAV**[3](index=3&type=chunk) - Paid an **$0.08 per common share** distribution to common stockholders in each of April, May, and June 2025[7](index=7&type=chunk) - Paid a **$0.54 per common share** supplemental distribution to common stockholders in June 2025[7](index=7&type=chunk) [First Quarter Results Overview](index=2&type=section&id=First%20Quarter%20Results%20Overview) Net investment income for the quarter ended June 30, 2025, increased to $9.1 million, or $0.25 per weighted-average common share, compared to $7.2 million, or $0.20 per share, in the prior quarter, primarily driven by a decrease in total expenses Net Investment Income (QoQ) | Metric | June 30, 2025 ($) | March 31, 2025 ($) | $ Change ($) | % Change (%) | | :------------------------------------------ | :------------ | :------------- | :------- | :------- | | Net investment income | $9.1 million | $7.2 million | $1.9 million | 26.4% | | Net investment income per weighted-average common share | $0.25 | $0.20 | $0.05 | 25.0% | - The increase in **net investment income** was a result of a **decrease in total expenses**, net of credits, primarily due to lower accruals for capital gains-based and income-based incentive fees, decreased interest expense, and increased credits from the Adviser, partially offset by a decrease in **total investment income**[3](index=3&type=chunk) [Total Investment Income Analysis](index=2&type=section&id=Total%20Investment%20Income%20Analysis) Total investment income decreased quarter-over-quarter due to lower success fee and dividend income, partially offset by an increase in interest income from the collection of past due interest from a previously non-accrual portfolio company Total Investment Income (QoQ) | Metric | June 30, 2025 ($) | March 31, 2025 ($) | $ Change ($) | % Change (%) | | :---------------------- | :------------ | :------------- | :------- | :------- | | Total investment income | $23.5 million | $27.5 million | $(4.0) million | (14.5)% | - The decrease was due to a **$3.5 million** decrease in success fee income and a **$0.7 million** decrease in dividend income[4](index=4&type=chunk) - Partially offset by a **$0.1 million** increase in interest income, primarily from the collection of **$1.5 million** of past due interest from a portfolio company previously on non-accrual status[4](index=4&type=chunk) [Total Expenses Analysis](index=2&type=section&id=Total%20Expenses%20Analysis) Total expenses, net of credits, significantly decreased quarter-over-quarter, primarily driven by lower accruals for capital gains-based and income-based incentive fees, reduced interest expense, and increased credits from the Adviser Total Expenses, Net of Credits (QoQ) | Metric | June 30, 2025 ($) | March 31, 2025 ($) | $ Change ($) | % Change (%) | | :---------------------- | :------------ | :------------- | :------- | :------- | | Total expenses, net | $14.5 million | $20.3 million | $(5.8) million | (28.9)% | - The decrease was primarily due to a **$2.3 million** decrease in accruals for capital gains-based incentive fees, a **$2.3 million** decrease in income-based incentive fees, and a **$0.5 million** decrease in interest expense[5](index=5&type=chunk) - The decrease was also due to a **$0.4 million** increase in credits from the Adviser[5](index=5&type=chunk) [Net Asset Value per Common Share](index=2&type=section&id=Net%20Asset%20Value%20per%20Common%20Share) Net asset value per common share declined to $12.99 as of June 30, 2025, from $13.55 as of March 31, 2025, mainly due to distributions paid and net unrealized depreciation, partially offset by net investment income and the accretive effect of equity offerings Net Asset Value per Common Share (QoQ) | Metric | June 30, 2025 ($) | March 31, 2025 ($) | $ Change ($) | % Change (%) | | :-------------------------- | :------------ | :------------- | :------- | :------- | | Net asset value per common share | $12.99 | $13.55 | $(0.56) | (4.1)% | - The decrease was primarily due to **$28.8 million** (**$0.78 per common share**) of distributions paid to common shareholders and **$1.3 million** (**$0.04 per common share**) of **net unrealized depreciation** on investments[6](index=6&type=chunk) - These decreases were partially offset by **$9.1 million** (**$0.25 per common share**) of **net investment income** and **$0.01 per common share** of **net accretive effect of equity offering**[6](index=6&type=chunk) [Portfolio Activity](index=2&type=section&id=Portfolio%20Activity) During the quarter, the company made two new investments totaling $62.3 million in Smart Chemical Solutions and Sun State Nursery and Landscaping, and restructured its investment in PSI Molded Plastics - Invested **$49.5 million** in Smart Chemical Solutions, LLC (Midland, Texas), a provider of production chemicals for onshore oil and gas operators, in the form of **$35.7 million secured first lien debt** and **$13.8 million preferred equity**[7](index=7&type=chunk) - Invested **$12.8 million** in Sun State Nursery and Landscaping, LLC (Jacksonville, Florida), a commercial landscaping provider, in the form of **$9.8 million secured first lien debt** and **$3.1 million preferred equity**[7](index=7&type=chunk) - Restructured investment in PSI Molded Plastics, Inc., converting debt with a cost basis of **$10.6 million** into **preferred equity**[7](index=7&type=chunk) [Subsequent Events](index=3&type=section&id=Subsequent%20Events) Post-quarter events include a significant new investment, declared monthly distributions, and continued ATM program activity [Significant Investment Activity](index=3&type=section&id=Significant%20Investment%20Activity) After the quarter ended, the company made a significant new investment in Global GRAB Technologies, Inc., a provider of perimeter security systems - In July 2025, invested **$67.6 million** in Global GRAB Technologies, Inc., a provider of turnkey perimeter security and hostile vehicle mitigation systems[8](index=8&type=chunk) - The investment in Global GRAB Technologies consisted of **$46.5 million** of **secured first lien debt** and **$21.1 million** of **preferred equity**[8](index=8&type=chunk) [Distributions and Dividends Declared](index=3&type=section&id=Distributions%20and%20Dividends%20Declared) The Board of Directors declared monthly distributions of $0.08 per common share for July, August, and September 2025, totaling $0.24 for the quarter Monthly Distributions Declared (July-September 2025) | Record Date | Payment Date | Distribution per Common Share ($) | | :---------- | :----------- | :---------------------------- | | July 21, 2025 | July 31, 2025 | $0.08 | | August 20, 2025 | August 29, 2025 | $0.08 | | September 22, 2025 | September 30, 2025 | $0.08 | | **Total for the Quarter:** | | **$0.24** | [ATM Program Activity Post-Quarter](index=3&type=section&id=ATM%20Program%20Activity%20Post-Quarter) Subsequent to June 30, 2025, the company continued its ATM program activity, selling additional shares and raising net proceeds above the then-current estimated NAV per share - Subsequent to June 30, 2025, sold **866,554 shares** of common stock under the ATM program[10](index=10&type=chunk) - These sales were at a weighted-average gross price of **$14.14 per share**, raising approximately **$12.1 million** in **net proceeds**, **net proceeds above NAV**[10](index=10&type=chunk) [Non-GAAP Financial Measure: Adjusted Net Investment Income](index=3&type=section&id=Non-GAAP%20Financial%20Measure%3A%20Adjusted%20Net%20Investment%20Income) This section defines and reconciles adjusted net investment income, a non-GAAP measure excluding capital gains-based incentive fees for operational clarity [Definition and Rationale](index=3&type=section&id=Definition%20and%20Rationale) Adjusted net investment income is a non-GAAP measure that excludes capital gains-based incentive fees from net investment income, providing a clearer view of ongoing operational results by separating them from investment activity related to capital gains - Adjusted net investment income represents **net investment income**, excluding capital gains-based incentive fees[10](index=10&type=chunk) - The Company uses this **non-GAAP measure** internally and believes it is useful to investors as an additional tool to evaluate ongoing results and trends, as **net investment income** does not include realized or unrealized investment activity associated with the capital gains-based incentive fee[10](index=10&type=chunk) [Reconciliation to GAAP Net Investment Income](index=3&type=section&id=Reconciliation%20to%20GAAP%20Net%20Investment%20Income) The reconciliation shows that for the quarter ended June 30, 2025, a reversal of capital gains-based incentive fees led to a higher GAAP net investment income compared to Adjusted net investment income, contrasting with the prior quarter where an accrual reduced GAAP NII Reconciliation of Net Investment Income to Adjusted Net Investment Income (QoQ) | Metric | June 30, 2025 (Amount $) | June 30, 2025 (Per Share $) | March 31, 2025 (Amount $) | March 31, 2025 (Per Share $) | | :------------------------------------------ | :--------------------- | :------------------------ | :---------------------- | :------------------------- | | Net investment income | $9,088 | $0.25 | $7,229 | $0.20 | | Capital gains-based incentive fee | $(209) | $(0.01) | $2,129 | $0.06 | | Adjusted net investment income | $8,879 | $0.24 | $9,358 | $0.26 | | Weighted-average shares of common stock outstanding - basic and diluted | 36,908,943 | | 36,837,381 | | [Non-GAAP Measure Disclaimer](index=4&type=section&id=Non-GAAP%20Measure%20Disclaimer) The company clarifies that Adjusted net investment income is a non-GAAP financial measure, may not be comparable to similar measures from other companies, and should be considered as a supplement to, not a substitute for, GAAP financial measures - Adjusted net investment income may not be comparable to similar measures presented by other companies, as it is a **non-GAAP financial measure** not based on a comprehensive set of accounting rules or principles[12](index=12&type=chunk) - Adjusted net investment income should be considered in addition to, not as a substitute for, or superior to, **GAAP financial measures**[12](index=12&type=chunk) [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) Details for the earnings conference call, company profile, important financial disclosures, investor relations contacts, and forward-looking statements are provided [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) The company will host an earnings conference call on August 13, 2025, with replay options and an online broadcast available for investors - The Company will hold its earnings release conference call on Wednesday, August 13, 2025, at 8:30 a.m. Eastern Time[13](index=13&type=chunk) - A replay of the conference call will be available through August 20, 2025, by dialing (877) 660-6853 and using playback conference number 13754185[13](index=13&type=chunk) - The live audio broadcast and archived replay will also be available online at www.gladstoneinvestment.com[13](index=13&type=chunk) [About Gladstone Investment Corporation](index=4&type=section&id=About%20Gladstone%20Investment%20Corporation) Gladstone Investment Corporation is a publicly traded business development company that invests in lower middle market U.S. businesses through secured debt and equity for acquisitions, changes in control, and recapitalizations - Gladstone Investment Corporation is a publicly traded business development company[14](index=14&type=chunk) - It seeks to make **secured debt** and **equity investments** in lower middle market businesses in the United States[14](index=14&type=chunk) - Investments are made in connection with acquisitions, changes in control, and recapitalizations[14](index=14&type=chunk) [Important Disclosures](index=4&type=section&id=Important%20Disclosures) The company advises that the financial information provided in the press release is not comprehensive and encourages readers to review the full Form 10-Q for complete details and notes to the consolidated financial statements - The financial information above is not comprehensive and is without notes[15](index=15&type=chunk) - Readers should obtain and carefully review the Company's Form 10-Q for the quarter ended June 30, 2025, including the notes to the consolidated financial statements[15](index=15&type=chunk) [Investor Relations](index=4&type=section&id=Investor%20Relations) Contact information for investor relations inquiries is provided - Investor Relations Inquiries can be directed to ir.gladstoneinvestment.com or by calling (703) 287-5893[16](index=16&type=chunk) [Forward-looking Statements](index=4&type=section&id=Forward-looking%20Statements) This section includes a standard disclaimer that statements regarding potential future distributions, earnings, and operations are forward-looking and inherently involve risks and uncertainties that could cause actual results to differ materially from expectations - Statements in the press release regarding potential future distributions, earnings, and operations are '**forward-looking statements**'[17](index=17&type=chunk) - These statements inherently involve certain risks and uncertainties in predicting future results and conditions[17](index=17&type=chunk) - A number of factors could cause actual results and conditions to differ materially from these **forward-looking statements**, including those described in the Company's SEC filings[17](index=17&type=chunk)

[Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including assets, operations, cash flows, and investment schedules [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities%20as%20of%20June%2030%2C%202025%20and%20March%2031%2C%202025) Total assets increased to $1,053,909 thousand by June 30, 2025, while liabilities also rose, decreasing net assets and NAV per share to $12.99 | Metric (in thousands) | June 30, 2025 | March 31, 2025 | | :-------------------- | :------------ | :------------- | | **ASSETS** | | | | Investments at fair value | $1,036,745 | $979,320 | | Cash and cash equivalents | $4,118 | $14,298 | | Total Assets | $1,053,909 | $1,006,404 | | **LIABILITIES** | | | | Total borrowings | $518,625 | $455,709 | | Total Liabilities | $568,605 | $507,320 | | **NET ASSETS** | | | | Total Net Assets | $485,304 | $499,084 | | Net Asset Value Per Share | $12.99 | $13.55 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20three%20months%20ended%20June%2030%2C%202025%20and%202024) Total investment income increased to $23,544 thousand, but higher expenses reduced net investment income, though net assets from operations turned positive due to significantly lower net unrealized depreciation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Total investment income | $23,544 | $22,178 | | Total expenses, net of credits | $14,456 | $9,764 | | Net investment income | $9,088 | $12,414 | | Net realized gain | $0 | $2 | | Net unrealized depreciation | $(1,316) | $(18,942) | | Net increase (decrease) in net assets from operations | $7,772 | $(6,526) | | Basic and Diluted EPS (Net investment income) | $0.25 | $0.34 | | Basic and Diluted EPS (Net increase (decrease) in net assets) | $0.21 | $(0.18) | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets%20for%20the%20three%20months%20ended%20June%2030%2C%202025%20and%202024) Net assets decreased by $13,780 thousand, driven by distributions offset by a net increase from operations and capital activity | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net Assets, March 31 | $499,084 | $492,711 | | Net increase (decrease) in net assets from operations | $7,772 | $(6,526) | | Net decrease in net assets from distributions | $(28,788) | $(8,805) | | Net increase in net assets from capital activity | $7,236 | $0 | | Net decrease in net assets | $(13,780) | $(15,331) | | Net Assets, June 30 | $485,304 | $477,380 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20three%20months%20ended%20June%2030%2C%202025%20and%202024) Operating activities used $50,181 thousand in cash due to increased investment purchases, while financing activities provided $40,382 thousand, resulting in a net decrease in cash | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(50,181) | $12,321 | | Net cash provided by (used in) financing activities | $40,382 | $(12,351) | | Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents | $(9,799) | $(30) | | Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $5,355 | $3,190 | [Consolidated Schedules of Investments](index=8&type=section&id=Consolidated%20Schedules%20of%20Investments%20as%20of%20June%2030%2C%202025%20and%20March%2031%2C%202025) The investment portfolio's fair value increased to $1,036,745 thousand, with new investments and a restructuring of PSI Molded Plastics, Inc | Investment Type | June 30, 2025 (Cost) | June 30, 2025 (Fair Value) | March 31, 2025 (Cost) | March 31, 2025 (Fair Value) | | :---------------- | :------------------- | :------------------------- | :-------------------- | :-------------------------- | | Secured first lien debt | $625,596 (62.7%) | $557,057 (53.7%) | $584,026 (62.2%) | $514,334 (52.5%) | | Secured second lien debt | $93,340 (9.4%) | $93,340 (9.0%) | $103,956 (11.1%) | $103,580 (10.6%) | | Total debt | $718,936 (72.1%) | $650,397 (62.7%) | $687,982 (73.3%) | $617,914 (63.1%) | | Preferred equity | $229,005 (23.0%) | $325,997 (31.5%) | $201,487 (21.5%) | $302,163 (30.9%) | | Common equity/equivalents | $49,597 (4.9%) | $60,351 (5.8%) | $49,597 (5.2%) | $59,243 (6.0%) | | Total equity/equivalents | $278,602 (27.9%) | $386,348 (37.3%) | $251,084 (26.7%) | $361,406 (36.9%) | | Total investments | $997,538 (100.0%) | $1,036,745 (100.0%) | $939,066 (100.0%) | $979,320 (100.0%) | - The top 5 portfolio investments by fair value as of June 30, 2025, including SFEG Holdings, Inc., Detroit Defense, Inc., The E3 Company, LLC, Nielsen-Kellerman Acquisition Corp., and Brunswick Bowling Products, Inc., collectively comprised **$403.1 million**, or **38.9%**, of the total investment portfolio[82](index=82&type=chunk) | Industry Classification | June 30, 2025 (Fair Value) | Percentage of Total Investments | | :---------------------- | :--------------------------- | :------------------------------ | | Diversified/Conglomerate Services | $188,845 | 18.2% | | Home and Office Furnishings, Housewares, and Durable Consumer Products | $150,749 | 14.5% | | Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) | $109,985 | 10.6% | | Aerospace and Defense | $105,170 | 10.1% | | Leisure, Amusement, Motion Pictures, and Entertainment | $79,588 | 7.7% | | Oil and Gas | $72,286 | 7.0% | | Electronics | $71,334 | 6.9% | | Buildings and Real Estate | $69,075 | 6.7% | | Chemicals, Plastics, and Rubber | $54,980 | 5.3% | | Healthcare, Education, and Childcare | $48,197 | 4.6% | | Mining, Steel, Iron and Non-Precious Metals | $43,505 | 4.2% | | Cargo Transport | $13,000 | 1.3% | | Printing and Publishing | $12,611 | 1.2% | | Other < 2.0% | $17,420 | 1.7% | | Total investments | $1,036,745 | 100.0% | - New investments in Q2 2025 included **Smart Chemical Solutions, LLC** for **$49.5 million** (secured first lien debt: **$35.7 million**, preferred equity: **$13.8 million**), a provider of production chemicals for onshore oil and gas operators[84](index=84&type=chunk) - Another new investment was **Sun State Nursery and Landscaping, LLC** for **$12.8 million** (secured first lien debt: **$9.8 million**, preferred equity: **$3.1 million**), a commercial landscaping installation and maintenance provider[84](index=84&type=chunk) - **PSI Molded Plastics, Inc.** restructured **$10.6 million** of debt into preferred equity in June 2025[84](index=84&type=chunk) [Notes to Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on organization, accounting policies, investment valuation, related party transactions, borrowings, capital, distributions, and commitments [Note 1. Organization](index=18&type=section&id=NOTE%201.%20ORGANIZATION) This note details the company's structure as a BDC and RIC, outlining its investment objectives and target portfolio composition - Gladstone Investment Corporation is an externally managed, closed-end, non-diversified management investment company, elected to be treated as a **Business Development Company (BDC)** and a **Regulated Investment Company (RIC)**[42](index=42&type=chunk) - Investment objectives include achieving and growing **current income from debt securities** and providing **long-term capital appreciation from equity securities**[42](index=42&type=chunk) - Target investment portfolio composition is approximately **75.0% debt** and **25.0% equity at cost**, with the current portfolio at **72.1% debt** and **27.9% equity** as of June 30, 2025[42](index=42&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=18&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines interim financial statement preparation, fair value investment valuation, revenue recognition, and segment reporting policies - Interim financial statements are prepared in accordance with **GAAP** for interim financial information and **SEC Regulation S-X** requirements[45](index=45&type=chunk) - Investments are recorded at **fair value** in accordance with **FASB ASC Topic 820** and the **1940 Act**, with the Board of Directors overseeing the valuation designee for fair value determinations[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Revenue recognition policies include accruing interest income to the extent expected to be collected, placing loans 90 days or more past due on **non-accrual status**, recognizing success fees upon cash receipt, and accruing dividend income if expected to be collected in cash[60](index=60&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - The company adopted **ASU 2023-07 (Segment Reporting)** as of March 31, 2025, and has **one reporting segment** with the Chief Executive Officer as the Chief Operating Decision Maker (CODM)[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 3. Investments](index=22&type=section&id=NOTE%203.%20INVESTMENTS) This note details investment valuation using Level 3 inputs, fair value measurements, unobservable inputs for debt, and changes in fair value measurements - All investments were valued using **Level 3 inputs** within the **ASC 820 fair value hierarchy** as of June 30, 2025 and March 31, 2025, except for the investment in Gladstone Alternative Income Fund, which was valued using NAV as a practical expedient[72](index=72&type=chunk) | Fair Value Measurements (in thousands) | June 30, 2025 | March 31, 2025 | | :------------------------------------- | :------------ | :------------- | | Secured first lien debt | $557,057 | $514,334 | | Secured second lien debt | $93,340 | $103,580 | | Preferred equity | $325,997 | $302,163 | | Common equity/equivalents | $55,341 | $54,268 | | Total investments at fair value using Level 3 inputs | $1,031,735 | $974,345 | | Unobservable Input (Secured first lien debt) | Range / Weighted-Average as of June 30, 2025 | | :------------------------------------------- | :------------------------------------------- | | EBITDA multiple | 3.7x – 8.0x / 6.0x | | EBITDA (in thousands) | $408 – $25,038 / $11,738 | | Revenue multiple | 0.3x – 0.6x / 0.4x | | Revenue (in thousands) | $21,248 – $94,874 / $75,263 | | Changes in Level 3 Fair Value Measurements (in thousands) | Secured First Lien Debt | Secured Second Lien Debt | Preferred Equity | Common Equity/Equivalents | Total | | :---------------------------------------- | :---------------------- | :----------------------- | :--------------- | :------------------------ | :------ | | Fair value as of March 31, 2025 | $514,334 | $103,580 | $302,163 | $54,268 | $974,345 | | Net unrealized appreciation (depreciation) | $1,152 | $376 | $(3,683) | $1,073 | $(1,082) | | Issuances / originations | $45,941 | $0 | $16,901 | $0 | $62,842 | | Settlements / repayments | $(4,370) | $0 | $0 | $0 | $(4,370) | | Transfers | $0 | $(10,616) | $10,616 | $0 | $0 | | Fair value as of June 30, 2025 | $557,057 | $93,340 | $325,997 | $55,341 | $1,031,735 | [Note 4. Related Party Transactions](index=29&type=section&id=NOTE%204.%20RELATED%20PARTY%20TRANSACTIONS) This note details base management and incentive fees paid to the Adviser, including credits, administration fees, and related party fees due - The company pays Gladstone Management Corporation (the "Adviser") a **base management fee** (2.0% annual rate on average gross assets) and an **incentive fee** (income-based and capital gains-based)[92](index=92&type=chunk)[95](index=95&type=chunk) - The Adviser non-contractually, unconditionally, and irrevocably credits **100% of certain fees** received for managerial assistance services against the base management fee[93](index=93&type=chunk) - Loan servicing fees paid to the Adviser (2.0% annual fee on monthly aggregate outstanding balance of loans pledged under the Credit Facility) are **100% credited back** to the company[94](index=94&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Base management fee | $5,080 | $4,618 | | Credits to fees from Adviser - other | $(1,399) | $(627) | | Net base management fee | $3,681 | $3,991 | | Loan servicing fee | $2,672 | $2,222 | | Credits to base management fee - loan servicing fee | $(2,672) | $(2,222) | | Net loan servicing fee | $0 | $0 | | Total incentive fee | $(209) | $(3,788) | - Administration fees paid to Gladstone Administration, LLC were **$0.4 million** for Q2 2025 and **$0.5 million** for Q2 2024[101](index=101&type=chunk) | Related Party Fees Due (in thousands) | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Base management and loan servicing fee due to Adviser, net of credits | $1,696 | $2,027 | | Incentive fee due to Adviser | $39,115 | $41,663 | | Total related party fees due | $41,885 | $44,584 | [Note 5. Borrowings](index=33&type=section&id=NOTE%205.%20BORROWINGS) This note details the Credit Facility terms, outstanding borrowings, availability, compliance with covenants, and notes payable - The Credit Facility has a total commitment of **$270.0 million** with an accordion feature up to **$300.0 million**, a revolving period ending **October 30, 2026**, and final maturity on **October 30, 2028**[106](index=106&type=chunk) - Advances bear interest at **30-day Term SOFR** (floor 0.35%, 10 bps credit spread adjustment) plus a margin of **3.15%** (increasing to 3.40% and 3.65% thereafter), with unused commitment fees ranging from **0.50% to 1.00%**[107](index=107&type=chunk) | Credit Facility Metric (in thousands) | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Commitment amount | $270,000 | $270,000 | | Borrowings outstanding at cost | $62,000 | $0 | | Availability | $208,000 | $270,000 | - The company was in compliance with all Credit Facility covenants as of June 30, 2025, including a net worth of **$940.4 million** (minimum **$416.6 million**) and asset coverage of **189.8%** (minimum **150%**)[109](index=109&type=chunk)[213](index=213&type=chunk) | Notes Payable (in thousands) | Principal Amount | Unamortized Discounts | Notes Payable, Net | | :--------------------------- | :--------------- | :-------------------- | :----------------- | | 5.00% Notes due 2026 | $127,938 | | | | 4.875% Notes due 2028 | $134,550 | | | | 8.00% Notes due 2028 | $74,750 | | | | 7.875% Notes due 2030 | $126,500 | | | | **Total as of June 30, 2025** | **$463,738** | **$(7,382)** | **$456,356** | | **Total as of March 31, 2025** | **$463,738** | **$(8,029)** | **$455,709** | [Note 6. Registration Statement and Common Equity Offerings](index=38&type=section&id=NOTE%206.%20REGISTRATION%20STATEMENT%20AND%20COMMON%20EQUITY%20OFFERINGS) This note details the registration statement for securities issuance and activity under the 2024 Common Stock ATM Program - A registration statement on Form N-2, effective **April 18, 2024**, permits the issuance of up to **$450.0 million** in various securities, with **$314.1 million** of this capacity remaining as of June 30, 2025[130](index=130&type=chunk) - Under the 2024 Common Stock ATM Program, the company sold **515,295 shares** for **$7.3 million** gross proceeds (weighted-average gross price of **$14.23 per share**) during the three months ended June 30, 2025, with **$65.6 million** capacity remaining[131](index=131&type=chunk)[133](index=133&type=chunk) [Note 7. Net Increase (Decrease) in Net Assets Resulting From Operations Per Weighted-Average Common Share](index=38&type=section&id=NOTE%207.%20NET%20INCREASE%20(DECREASE)%20IN%20NET%20ASSETS%20RESULTING%20FROM%20OPERATIONS%20PER%20WEIGHTED-AVERAGE%20COMMON%20SHARE) This note presents the net increase or decrease in net assets from operations per weighted-average common share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | | Net increase (decrease) in net assets from operations | $7,772 | $(6,526) | | Weighted-average common shares outstanding | 36,908,943 | 36,688,667 | | Basic and diluted net increase (decrease) in net assets per share | $0.21 | $(0.18) | [Note 8. Distributions to Common Stockholders](index=38&type=section&id=NOTE%208.%20DISTRIBUTIONS%20TO%20COMMON%20STOCKHOLDERS) This note outlines the company's RIC distribution requirements, declared distributions for Q2 2025, and aggregate cash distributions - To qualify as a **RIC**, the company must distribute at least **90% of its Investment Company Taxable Income**, with distributions determined by the Board based on estimated taxable income and net long-term capital gains[136](index=136&type=chunk)[137](index=137&type=chunk) | Declaration Date | Record Date | Payment Date | Distribution per Common Share (Q2 2025) | | :--------------- | :---------- | :----------- | :-------------------------------------- | | April 8, 2025 | April 21, 2025 | April 30, 2025 | $0.08 | | April 8, 2025 | May 21, 2025 | May 30, 2025 | $0.08 | | April 8, 2025 | June 4, 2025 | June 13, 2025 | $0.54 (Supplemental) | | April 8, 2025 | June 20, 2025 | June 30, 2025 | $0.08 | | **Total for Q2 2025** | | | **$0.78** | - Aggregate cash distributions to common stockholders were **$28.8 million** for Q2 2025, compared to **$8.8 million** for Q2 2024[140](index=140&type=chunk) [Note 9. Commitments and Contingencies](index=40&type=section&id=NOTE%209.%20COMMITMENTS%20AND%20CONTINGENCIES) This note addresses legal proceedings, escrow holdbacks, and unused line of credit commitments - The company is party to certain legal proceedings but does not believe loss contingencies will have a **material adverse effect** on financial condition, results of operations, or cash flows[145](index=145&type=chunk) - Escrow holdbacks for investment exits are recorded in Restricted cash and cash equivalents or Other assets, net, with reserves against escrow amounts of **$1.0 million** as of June 30, 2025 and March 31, 2025[146](index=146&type=chunk) | Commitment (in thousands) | June 30, 2025 | March 31, 2025 | | :------------------------ | :------------ | :------------- | | Unused line of credit commitments | $3,596 | $3,440 | [Note 10. Financial Highlights](index=41&type=section&id=NOTE%2010.%20FINANCIAL%20HIGHLIGHTS) This note provides per common share data, including net asset value, investment income, distributions, and key financial ratios | Per Common Share Data | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net asset value at beginning of period | $13.55 | $13.43 | | Net investment income | $0.25 | $0.34 | | Net unrealized depreciation | $(0.04) | $(0.52) | | Total from investment operations | $0.21 | $(0.18) | | Cash distributions to common stockholders from net investment income | $(0.27) | $(0.24) | | Cash distributions to common stockholders from net realized gains | $(0.51) | $0 | | Net asset value at end of period | $12.99 | $13.01 | | Total investment return | 12.76% | (0.08)% | | Common stock outstanding at end of period | 37,352,676 | 36,688,667 | | Ratios/Supplemental Data | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | | Ratio of net expenses to average net assets – annualized | 11.72% | 8.01% | | Ratio of net investment income to average net assets – annualized | 7.37% | 10.18% | [Note 11. Unconsolidated Significant Subsidiaries](index=42&type=section&id=NOTE%2011.%20UNCONSOLIDATED%20SIGNIFICANT%20SUBSIDIARIES) This note confirms the absence of unconsolidated significant subsidiaries during the reporting period - The company did not have any unconsolidated subsidiaries that met the significance conditions under **Rule 1-02(w)(2) of SEC's Regulation S-X** as of or during the three months ended June 30, 2025 and 2024[150](index=150&type=chunk) [Note 12. Subsequent Events](index=42&type=section&id=NOTE%2012.%20SUBSEQUENT%20EVENTS) This note details a new investment in Global GRAB Technologies, Inc., declared monthly distributions, and common stock sales under the ATM program - In July 2025, the company invested **$67.6 million** in a new portfolio company, **Global GRAB Technologies, Inc.**, consisting of **$46.5 million** in secured first lien debt and **$21.1 million** in preferred equity[151](index=151&type=chunk) - The Board of Directors declared monthly distributions of **$0.08 per common share** for July, August, and September 2025, totaling **$0.24** for the quarter[152](index=152&type=chunk) - Subsequent to June 30, 2025, the company sold **866,554 shares** of common stock under its 2024 Common Stock ATM program, raising approximately **$12.1 million** in net proceeds at a weighted-average gross price of **$14.14 per share**[153](index=153&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's discussion and analysis of the company's financial condition and results of operations [Overview](index=44&type=section&id=Overview) Gladstone Investment Corporation operates as a BDC and RIC, focusing on debt and equity investments in U.S. lower middle market private businesses - Investment strategy focuses on lower middle market private businesses (EBITDA **$4 million-$15 million**) in the U.S., seeking management buyouts and growth capital[159](index=159&type=chunk) - From inception through June 30, 2025, the company invested in **64 companies** for approximately **$2.1 billion** and exited **33 portfolio companies**, generating **$353.4 million** in net realized gains and **$45.4 million** in other income[163](index=163&type=chunk)[165](index=165&type=chunk) - As of June 30, 2025, unrecognized, contractual success fees totaled **$55.6 million**, or **$1.49 per common share**[164](index=164&type=chunk) - The company's asset coverage ratio on senior securities representing indebtedness was **189.8%** as of June 30, 2025, exceeding the **150% requirement**[171](index=171&type=chunk) - As of June 30, 2025, the common stock closing market price was **$14.27 per share**, a **9.9% premium** to its NAV of **$12.99 per share**[167](index=167&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Total investment income increased, but higher expenses reduced net investment income, though net assets from operations turned positive due to significantly lower net unrealized depreciation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Total investment income | $23,544 | $22,178 | $1,366 | 6.2% | | Total expenses, net of credits | $14,456 | $9,764 | $4,692 | 48.1% | | Net investment income | $9,088 | $12,414 | $(3,326) | (26.8)% | | Net realized gain on investments | $0 | $2 | $(2) | (100.0)% | | Net unrealized depreciation | $(1,316) | $(18,942) | $17,626 | (93.1)% | | Net increase (decrease) in net assets from operations | $7,772 | $(6,526) | $14,298 | NM | - Interest income increased by **$1.0 million (5.0%)** due to a higher weighted-average principal balance of interest-bearing investments (**$610.0 million** vs. **$571.0 million**)[176](index=176&type=chunk)[177](index=177&type=chunk) - Weighted-average yield on interest-bearing investments decreased to **14.1%** from **14.5%**[178](index=178&type=chunk) - Dividend and success fee income increased by **$0.3 million (22.1%)**, consisting of **$1.1 million** dividend income and **$0.8 million** success fee income[181](index=181&type=chunk) - Interest expense increased by **$2.0 million (31.2%)** due to the issuance of 7.785% 2030 Notes and an increase in the effective interest rate on the Credit Facility (**14.0%** vs. **10.8%**), despite decreased borrowings[184](index=184&type=chunk) - Net unrealized depreciation of investments was **$1.0 million** for Q2 2025, a significant improvement from **$18.9 million** in Q2 2024, primarily due to a decrease in the performance of certain portfolio companies, partially offset by increased performance of others and higher transaction multiples[188](index=188&type=chunk)[189](index=189&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) Operating activities used significant cash due to investment purchases, while financing activities provided cash, with the company maintaining compliance with debt covenants - Net cash used in operating activities was **$50.2 million** for Q2 2025, compared to **$12.3 million** provided in Q2 2024, mainly due to increased investment purchases (**$62.8 million** vs. **$0.6 million**)[192](index=192&type=chunk)[193](index=193&type=chunk) - Net cash provided by financing activities was **$40.4 million** for Q2 2025, primarily from **$62.0 million** net borrowings under the Credit Facility and **$7.3 million** from common stock issuance, partially offset by **$28.8 million** in distributions[196](index=196&type=chunk) - The company paid monthly cash distributions of **$0.08 per common share** and a supplemental distribution of **$0.54 per common share** in June 2025[198](index=198&type=chunk) - As of June 30, 2025, the Credit Facility had **$62.0 million** outstanding and **$208.0 million** in adjusted availability[213](index=213&type=chunk) | Contractual Obligations (in thousands) | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :----------------------------------- | :-------- | :--------------- | :-------- | :-------- | :---------------- | | Credit Facility | $62,000 | $0 | $0 | $62,000 | $0 | | Notes payable | $463,738 | $127,938 | $0 | $335,800 | $0 | | Interest payments on obligations | $114,704 | $34,701 | $59,125 | $20,878 | $0 | | **Total** | **$640,442** | **$162,639** | **$59,125** | **$418,678** | **$0** | - The Adviser's proprietary risk rating system for debt securities uses a scale of **0 to >10**, with **>10** being the lowest probability of default[232](index=232&type=chunk) - The weighted-average risk rating for the loan portfolio was **7.7** as of June 30, 2025 and March 31, 2025[233](index=233&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with its loan portfolio entirely at variable rates with a floor - Primary market risk is **interest rate risk**, affecting net investment income due to differences between variable borrowing rates (Credit Facility) and fixed/variable investment rates[237](index=237&type=chunk) - Target portfolio composition is approximately **90% variable-rate loans** (with floor) and up to **10% fixed-rate loans**[238](index=238&type=chunk) | Rates | June 30, 2025 | March 31, 2025 | | :------------ | :------------ | :------------- | | Variable rates with a floor | 100.0 % | 100.0 % | | Fixed rates | — % | — % | | Total | 100.0 % | 100.0 % | [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated as **effective** at a reasonable assurance level as of June 30, 2025[239](index=239&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[240](index=240&type=chunk) [PART II. OTHER INFORMATION:](index=61&type=section&id=PART%20II.%20OTHER%20INFORMATION%3A) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any material legal proceedings or threatened legal proceedings - No material legal proceedings are currently active or threatened against the company[241](index=241&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) For a comprehensive discussion of risks, refer to the Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - Refer to the **"Risk Factors"** section in the Annual Report on Form 10-K for the fiscal year ended March 31, 2025, for a discussion of business risks[242](index=242&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period [Item 3. Defaults Upon Senior Securities](index=61&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the reporting period [Item 4. Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the reporting period [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading arrangements during the reporting period - No officers or directors adopted or terminated **Rule 10b5-1 trading arrangements** or non-Rule 10b5-1 trading arrangements during Q2 2025[246](index=246&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents and XBRL data - Exhibit list includes Amended and Restated Certificate of Incorporation, Bylaws, Specimen Stock Certificate, Indentures for various Notes, and Certifications (CEO, CFO)[248](index=248&type=chunk) - **XBRL Instance Document** and **Taxonomy Extension files** are attached as Exhibit 101[248](index=248&type=chunk) [SIGNATURE](index=63&type=section&id=SIGNATURE) The report is duly signed by Taylor Ritchie, Chief Financial Officer and Treasurer, on August 12, 2025 - Report signed by **Taylor Ritchie**, Chief Financial Officer and Treasurer, on **August 12, 2025**[253](index=253&type=chunk)

Financial Data and Key Metrics Changes - The meeting reported that proxies were received for approximately 62.53% of the total outstanding shares, indicating a quorum for the meeting [4]. Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting. Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting. Company Strategy and Development Direction and Industry Competition - The company proposed the election of two directors and the ratification of PwC as the independent registered public accounting firm for the fiscal year ending March 31, 2026, indicating a focus on governance and compliance [5][6]. Management Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided during the meeting. Other Important Information - The results of the voting confirmed the election of David Gladstone and John Outland as directors, and the ratification of PwC as the independent auditor for the upcoming fiscal year [8]. Q&A Session All Questions and Answers - No Q&A session was conducted during the meeting.

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