Fiscal Second Quarter Ended December 31, 2023 NASDAQ: GEG • Great Elm's momentum in real estate continued with three property acquisitions at Monomoy REIT and continued ramp of build-to-suit development at Monomoy BTS 2 • Investment in debt and income-generating securities, direct lending and special situations • Build-to-Suit "BTS" division provides differentiated design-build solutions • Alignment through GEG investment in funds Our Goals • GECC had another strong quarter, and GEG will collect $0.7 millio ...

For the transition period from to Commission File Number: 001-39832 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Great Elm Group, Inc. FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Registrant's telephone number, including area code) | Securities registered pursuant to Section ...

Financial Performance - GEG's fiscal first quarter revenue increased by 78% to $3310 thousand compared to $1860 thousand in the same period last year[38,63] - Net income from continuing operations was $2758 thousand, a significant improvement from a net loss of $9503 thousand in the prior-year period[38,54] - Adjusted EBITDA for the quarter was $1724 thousand, compared to $729 thousand in the first quarter of the previous fiscal year[38,49] Assets Under Management (AUM) - Total AUM reached $641 million, a 3% increase since September 30, 2022[40,41] - Fee-Paying AUM (FPAUM) grew to $451 million, representing a 5% increase year-over-year[42,43] Balance Sheet - The company ended the quarter with approximately $75900 thousand in cash and marketable securities[2,31] - Total assets were reported at $136242 thousand, slightly up from $135893 thousand as of June 30, 2023[23,24] - The book value per share is approximately $225[30] Strategic Initiatives - GEG's Board of Directors approved a share repurchase program of up to $10 million[2] - Great Elm Capital Corp (GECC) will pay $1300 thousand in incentive fees to GEG, in addition to management fees of $900 thousand[2,4] - Monomoy REIT reported strong NII of $040 per share, covering the $035 distribution[34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39832 Great Elm Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

Great Elm Group, Inc. (NASDAQ:GEG) Q4 2023 Earnings Conference Call September 21, 2023 8:30 AM ET Company Participants Adam Yates - MD Jason Reese - CEO Keri Davis - CFO Conference Call Participants Nathan Stewart - Capital Advisors Operator Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Great Elm Group Fiscal 2023 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39832 GREAT ELM GROUP, INC. (Exact name of Registrant as specified in its charter) Delaware 85-3622015 (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - For the quarter, revenues increased by 92% year-over-year, driven by higher assets under management and management fees related to GECC and Monomoy [29] - Adjusted EBITDA loss for the quarter was $1.2 million compared to $1.6 million in the prior year period [15] - The company reported a net loss from continuing operations of $0.5 million compared to a net loss of $6.5 million in the prior year period, primarily due to $2 million in net realized and unrealized gains on investments [29] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached $631 million as of March 31, 2023, a 2% increase from the prior quarter and a 4% increase fiscal year-to-date [29] - Fee-paying AUM grew to $439 million, up 1% quarter-to-date and over 8% fiscal year-to-date [29] Market Data and Key Metrics Changes - The company completed two significant transactions, generating over $70 million of cash to GEG's balance sheet from the sale of its interests in Forest Investments and the DME business [21] - The company has not seen a credit crunch affecting its ability to fund transactions, instead identifying more opportunities due to banks pulling out of the market [16] Company Strategy and Development Direction - The company has transformed from a diversified holding company to a focused alternative asset manager, aiming to grow assets under management, improve profitability, and expand its platform [20] - The management highlighted a healthy pipeline of new business opportunities and a clean liquid balance sheet to execute upon them [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of Monomoy properties despite a slowdown in transactions due to high cap rates in the industrial space [17] - The company is well-positioned to achieve its strategic goals and is focused on proving its ability to grow and improve profitability [20] Other Important Information - The company announced the resignation of its CEO, with Jason Reese appointed as the new CEO [4] - The company has a strong institutional back office capable of servicing its growing platform [20] Q&A Session Summary Question: What is the impact of the credit crunch on spreads at GECC and the company's ability to fund transactions? - Management indicated that they have not seen a credit crunch affecting their funding capabilities and are actually seeing more opportunities for transactions [16] Question: What is the growth strategy now that Great Elm does not have a significant NOL? - Management acknowledged that while they still have an NOL, it is not as large as before, and they are optimistic about the Monomoy space despite current market conditions [17]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39832 Great Elm Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

Great Elm Group, Inc. (NASDAQ:GEG) Q2 2023 Earnings Conference Call February 14, 2023 9:00 AM ET Company Participants Adam Yates - Managing Director Jason Reese - Executive Chairman Peter Reed - Chief Executive Officer Brent Pearson - Chief Financial Officer Operator Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Great Elm Group, Incorporated Fiscal 2023 Second Quarter Earnings Conference Call. All ...

**PART I. FINANCIAL INFORMATION** [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Strategic divestitures resulted in a **$29.7 million** net income, driven by asset sales and investment gains, with DME reclassified as discontinued operations [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at **$169.7 million**, driven by reclassification of **$76.6 million** in DME assets held for sale, increasing equity to **$59.1 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2022 | June 30, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$169,690** | **$168,087** | | Current assets held for sale | $76,629 | $8,464 | | Non-current assets held for sale | $0 | $69,561 | | **Total Liabilities** | **$107,591** | **$125,833** | | Current liabilities held for sale | $18,047 | $15,003 | | **Total Stockholders' Equity** | **$59,122** | **$40,029** | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Net income reached **$29.7 million**, a significant improvement from prior-year loss, driven by a **$10.5 million** gain on subsidiary sale and **$22.2 million** investment gains Statement of Operations Highlights (in thousands, except per share data) | Metric | Q4 2022 | Q4 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$1,879** | **$1,021** | **$3,739** | **$2,004** | | Operating Loss | $(2,788) | $(2,567) | $(4,744) | $(4,505) | | Gain on sale of controlling interest in subsidiary | $10,524 | $0 | $10,524 | $0 | | Net realized and unrealized gain (loss) on investments | $22,242 | $(1,821) | $15,445 | $(1,835) | | **Net Income (Loss) from Continuing Operations** | **$29,693** | **$(4,790)** | **$20,190** | **$(7,539)** | | Net Income from Discontinued Operations | $35 | $631 | $999 | $3,486 | | **Net Income (Loss) Attributable to GEG** | **$29,530** | **$(4,238)** | **$21,239** | **$(4,438)** | | Diluted EPS | $0.74 | $(0.16) | $0.55 | $(0.17) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided **$1.3 million** cash, investing activities provided **$10.7 million** from asset sales, and financing used **$18.4 million** for debt repayment Cash Flow Summary (in thousands) | Activity | Six Months Ended Dec 31, 2022 | Six Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,344 | $3,110 | | Net cash provided by (used in) investing activities | $10,654 | $(3,124) | | Net cash (used in) provided by financing activities | $(18,402) | $588 | | **Net decrease in cash and cash equivalents** | **$(3,310)** | **$(1,980)** | | Cash and cash equivalents at end of period | $18,971 | $16,765 | - Investing activities were significantly impacted by the receipt of **$17.7 million** from the sale of a controlling interest in a subsidiary[20](index=20&type=chunk) - Financing activities were dominated by an **$18.4 million** principal payment on a related party note payable[22](index=22&type=chunk) [Unaudited Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Unaudited%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the **$18.4 million** Forest sale (61% interest) yielding a **$10.5 million** gain, DME reclassification as held for sale, and subsequent sales of remaining Forest interest for **$26.5 million** and DME for **$80.0 million** - The company's business is focused on investment management, growing a portfolio of permanent capital vehicles[24](index=24&type=chunk) - On December 30, 2022, GEG sold a **61%** controlling interest in Forest to J.P. Morgan for **$18.4 million** in cash, recognizing a gain of **$10.5 million**[41](index=41&type=chunk) - The Durable Medical Equipment (DME) business (HC LLC) was classified as held for sale and discontinued operations as of December 31, 2022[27](index=27&type=chunk)[45](index=45&type=chunk) - Subsequent to the quarter end, on January 3, 2023, the company sold HC LLC to Quipt for **$80.0 million**[104](index=104&type=chunk) - On January 17, 2023, the company exercised a put option to sell its remaining **19%** interest in Forest for **$26.5 million** in cash[105](index=105&type=chunk) - Following the sale of Forest, the company's available federal Net Operating Loss (NOL) carryforwards were reduced from approximately **$821 million** to **$154 million**[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's transition to investment management with **$619.0 million** AUM, enhanced liquidity from **$70.9 million** cash post-quarter-end, and reduced NOLs to **$154 million** after divestitures - GEG is now focused on being an investment management company with approximately **$619.0 million** in assets under management as of December 31, 2022[106](index=106&type=chunk) - The company completed two major strategic transactions: the sale of its controlling interest in Forest in December 2022 and the sale of its DME business (HC LLC) in January 2023[107](index=107&type=chunk)[108](index=108&type=chunk) - Subsequent to quarter end, the company received an additional **$70.9 million** in unrestricted cash from the completion of the HC LLC sale and the exercise of the Forest put option[126](index=126&type=chunk) Results of Operations Summary (in thousands) | Metric | Q4 2022 | Q4 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenue | **$1,879** | **$1,021** | **84%** | | Operating Loss | **$(2,788)** | **$(2,567)** | **9%** | | Other income (expense), net | **$32,250** | **$(2,276)** | NM | | Income (loss) before income taxes | **$29,462** | **$(4,843)** | NM | - The company's federal NOL carryforwards were reduced from **$821 million** to approximately **$154 million** following the sale of its interest in Forest[110](index=110&type=chunk)[119](index=119&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Revenues increased **84%** to **$1.9 million** due to the Monomoy UpREIT management agreement, while operating costs rose by **$1.1 million**, and other income of **$34.2 million** significantly boosted pre-tax income - Revenue increased by **$0.9 million** for the quarter and **$1.7 million** for the six months ended Dec 31, 2022, primarily due to the Monomoy UpREIT management agreement acquired in May 2022[115](index=115&type=chunk) - Operating costs increased by **$1.1 million** for the quarter, mainly due to costs associated with servicing the new Monomoy UpREIT management agreement[116](index=116&type=chunk) - Other income for Q4 2022 was **$34.2 million**, comprised of a **$10.5 million** gain on the Sale of Controlling Interest in Forest, a **$24.4 million** unrealized gain on the remaining investment in Forest, and **$1.4 million** in dividends and interest, offset by investment losses[118](index=118&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$19.0 million** in unrestricted cash, with an additional **$70.9 million** received post-quarter-end, and details outstanding debt including **$26.9 million** GEGGL Notes and **$37.0 million** convertible notes - The company held **$19.0 million** in unrestricted cash and **1,569,787** shares of GECC common stock valued at **$13.0 million** as of December 31, 2022[126](index=126&type=chunk) - Transactions completed in January 2023 provided an additional **$70.9 million** in unrestricted cash available for deployment[126](index=126&type=chunk) Outstanding Borrowings as of Dec 31, 2022 (Principal) | Debt Instrument | Principal Outstanding | | :--- | :--- | | GEGGL Notes (7.25% due 2027) | **$26.9 million** | | Convertible Notes (5.0% due 2030) | **$37.0 million** | | Seller Note (6.5% due 2023) | **$3.7 million** | | Forest Note (9.0% due 2023) | **$19.7 million** | - The **$19.7 million** Forest Note was repaid in full on January 3, 2023[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks have occurred since the fiscal year ended June 30, 2022 - There have been no material changes in market risks since the fiscal year ended June 30, 2022[132](index=132&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of December 31, 2022, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of December 31, 2022, the company's disclosure controls and procedures were effective[133](index=133&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended December 31, 2022[134](index=134&type=chunk) **PART II. OTHER INFORMATION** [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) No changes were required to be disclosed regarding legal proceedings - No changes to legal proceedings were required to be disclosed[136](index=136&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K - No material changes have occurred to the risk factors disclosed in the last Annual Report on Form 10-K[137](index=137&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the report, including agreements related to recent transactions and required certifications - The exhibit index lists key documents filed with the SEC, including the Stock Purchase Agreement with J.P. Morgan and the Purchase Agreement with QHM Holdings Inc[140](index=140&type=chunk)