Great Elm (US:GEG)2025-11-12 21:13Revenue Performance - GEG's total revenues for the three months ended September 30, 2025, increased by 170% to $10.788 million compared to $3.992 million in the same period of 2024[126]. - The Real Estate segment generated revenues of $9.208 million, a notable increase from $1.516 million in the previous year, primarily due to a $7.4 million property sale[137]. - The Alternative Credit segment reported revenues of $1.580 million, a decrease of 36% from $2.476 million in the prior year, attributed to reduced incentive fee revenue[133]. Cost and Expenses - The cost of revenues for the same period rose to $6.748 million, a significant increase from $635,000 in the prior year[126]. - Total operating costs and expenses for GEG increased to $7.766 million from $5.353 million year-over-year[126]. Net Income and Loss - Net loss for the three months ended September 30, 2025, was $7.904 million, compared to a net income of $2.974 million in the same period of 2024[126]. Cash Flow - Cash flows from operating activities improved to a net cash provided of $3.8 million, up from a net cash used of $5.8 million in the prior year[144]. - Net cash from investing activities increased to $9.3 million, up from $2.5 million in the same period of 2024, driven by the settlement of related party loan receivables[145]. - Net cash from financing activities rose to $9.7 million, compared to a net cash used of $2.2 million in the prior year, due to proceeds from the issuance of common stock[146]. Assets and Cash Balance - GEG's assets under management as of September 30, 2025, totaled approximately $792 million[121]. - As of September 30, 2025, the company had an unrestricted cash balance of $53.5 million, up from $30.6 million as of June 30, 2025[147]. Investments and Debt - The company held 1,358,276 shares of GECC common stock with an estimated fair value of $13.6 million as of September 30, 2025, compared to 1,438,079 shares valued at $15.3 million as of June 30, 2025[147]. - The company had $26.9 million in outstanding GEGGL Notes due on June 30, 2027, with covenants limiting additional indebtedness if the net consolidated debt to equity ratio exceeds 2 to 1[148]. - The company had a principal balance of $35.1 million in outstanding Convertible Notes accruing interest at 5.0% per annum, due on February 26, 2030[149]. - All interest on the Convertible Notes has been paid in-kind to date[149]. Accounting and Market Risks - There were no material changes in critical accounting policies during the three months ended September 30, 2025[150]. - No material changes in market risks were reported compared to the previous fiscal year ended June 30, 2025[152].