Great Elm Capital Corp. 8-K Summary
Business Context and Reporting Period
This Form 8-K was filed on May 5, 2022, by Great Elm Capital Corp. (GECC), a Maryland corporation. The report discloses information regarding the Company's investment manager, Great Elm Capital Management, Inc. (GECM), and its parent company, Great Elm Group, Inc. The financial data referenced pertains to the three-month period ended March 31, 2022.
Key Financial Metrics
The filing provides specific fee data related to the investment management agreement for the quarter ended March 31, 2022:
- Management Fees: $0.8 million due from the Company.
- Administration Fees: $0.2 million due from the Company.
- Incentive Fees: GECM agreed to waive all incentive fees earned and accrued through March 31, 2022.
The filing does not provide comprehensive revenue, profit, cash flow, margin, debt, or liquidity metrics for Great Elm Capital Corp. itself, as this report focuses on the disclosure of the manager's earnings release.
Material Changes and Unusual Items
The primary material item disclosed is the voluntary waiver of incentive fees by the investment manager, GECM, for the first quarter of 2022. This action reduces the Company's expense burden for the period. The filing notes that Great Elm Group, Inc. holds approximately 21.5% of the Company's outstanding common stock.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard regulatory disclosures. The information regarding the manager's fees is furnished under Regulation FD and is not deemed "filed" for liability purposes under Section 18 of the Exchange Act.
Investor Verification Checklist
- Verify the impact of the waived incentive fees on the Company's net investment income for the quarter ended March 31, 2022, in the upcoming Form 10-Q.
- Confirm the total outstanding debt obligations, including the 6.75% Notes due 2025, 6.50% Notes due 2024, and 5.875% Notes due 2026, in the Company's most recent 10-K or 10-Q.
- Review the full earnings press release from Great Elm Group, Inc. for broader context on the investment manager's performance.