Business Context and Reporting Period
This Form 8-K was filed by Great Elm Capital Corp. (GECC) on February 11, 2019. The filing serves to disclose financial information regarding fees payable to Great Elm Capital Group, Inc., the parent company of GECC's investment manager, which holds approximately 18.5% of GECC's outstanding common stock.
Key Financial Metrics
The filing details specific fee obligations due from GECC to its investment manager's parent company for the periods ended December 31, 2018. The filing does not provide comprehensive revenue, profit, cash flow, or debt metrics for GECC itself.
| Fee Type | Three Months Ended Dec 31, 2018 | Six Months Ended Dec 31, 2018 |
|---|---|---|
| Accrued but unpaid incentive fees | $0.8 million | $0.8 million |
| Deferred incentive fees | N/A | $1.3 million |
| Management fees | $0.8 million | $1.5 million |
| Administration fees | $0.2 million | $0.3 million |
Material Changes
The filing text does not provide comparative data for prior periods to determine material changes in these specific fee amounts. The disclosure is a regulatory requirement to report the parent company's earnings release information.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard regulatory language. The disclosed information is furnished under Regulation FD and is explicitly not deemed "filed" for purposes of Section 18 of the Exchange Act, nor is it incorporated by reference into other filings except as expressly stated.
Investor Verification Checklist
- Verify the total outstanding common stock of GECC to confirm the 18.5% ownership stake held by Great Elm Capital Group, Inc.
- Review the full earnings press release from Great Elm Capital Group, Inc. dated February 11, 2019, for broader context on the parent company's performance.
- Confirm the status of the accrued and deferred incentive fees in GECC's subsequent quarterly or annual reports to ensure they were settled or reclassified.
- Check for any related party transaction disclosures in GECC's most recent 10-Q or 10-K filings.