Business Context and Reporting Period
This Form 8-K was filed by Great Elm Capital Corp. on November 12, 2019. The filing serves as a disclosure of financial information regarding fees payable to Great Elm Capital Group, Inc., the parent company of the investment manager, which holds approximately 19.5% of the Company's outstanding common stock.
Key Financial Metrics
The filing discloses specific fee obligations due from Great Elm Capital Corp. to its investment manager's parent company for the three months ended September 30, 2019:
- Accrued and Deferred Incentive Fees: $0.7 million
- Management Fees: $0.8 million
- Administration Fees: $0.3 million
The filing text does not provide clear values for total revenue, net profit, cash flow, margins, debt levels, or liquidity metrics for the Company itself.
Material Changes
The filing does not provide comparative data for prior periods to determine material changes in financial performance. It solely reports the specific fee amounts accrued for the quarter ended September 30, 2019, as disclosed in the parent company's earnings release.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or discussion of specific risks and contingencies. The disclosed information is furnished under Regulation FD and is explicitly stated not to be "filed" for purposes of Section 18 of the Exchange Act, nor incorporated by reference into other filings except as expressly set forth.
Investor Verification Checklist
- Verify the total outstanding common stock to confirm the 19.5% ownership stake held by Great Elm Capital Group, Inc.
- Review the Company's Form 10-Q for the period ended September 30, 2019, to see how these fees impact the Company's reported net income and cash flow.
- Confirm the payment status of the $1.8 million in total disclosed fees (incentive, management, and administration) in subsequent filings.