Great Elm (GEG) 10-Q 13 Feb 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2022	Feb. 09, 2023
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Registrant Name	Great Elm Group, Inc.
Entity Central Index Key	0001831096
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		30,596,976
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-39832
Entity Tax Identification Number	85-3622015
Entity Address, Address Line One	800 South Street
Entity Address, Address Line Two	Suite 230
Entity Address, City or Town	Waltham
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02453
City Area Code	617
Local Phone Number	375-3006
Document Quarterly Report	true
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Document Transition Report	false
Common Stock
Document Information [Line Items]
Title of each class	Common Stock, par value $0.001 per share
Trading Symbol	GEG
Security Exchange Name	NASDAQ
7.25% Notes due 2027
Document Information [Line Items]
Title of each class	7.25% Notes due 2027
Trading Symbol	GEGGL
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 18,971	$ 22,281
Receivables from managed funds	2,318	2,445
Investments, at fair value (cost $40,103 and $68,766, respectively)	54,536	48,042
Prepaid and other current assets	3,715	665
Investments, at fair value (cost $2,432)		1,797
Assets of Consolidated Fund - Prepaid expenses		746
Current assets held for sale	76,629	8,464
Total current assets	156,169	84,440
Property and equipment, net	46	17
Identifiable intangible assets, net	12,668	13,250
Right of use assets	664	733
Other assets	143	86
Non-current assets held for sale		69,561
Total assets	169,690	168,087
Current liabilities:
Accounts payable	80	8
Accrued expenses and other liabilities	1,743	3,845
Current portion of related party payables	888	486
Current portion of lease liabilities	334	341
Current portion of related party notes payable	23,361
Liabilities of Consolidated Fund - accrued expenses and other		11
Current liabilities held for sale	18,047	15,003
Total current liabilities	44,453	19,694
Lease liabilities, net of current portion	345	472
Long term debt (face value $26,945)	25,667	25,532
Related party payables	452	1,120
Related party notes payable, net of current portion		6,270
Convertible notes (face value $36,987 and $36,085, including $15,019 and $15,133 held by related parties, respectively)	36,147	35,187
Redeemable preferred stock of subsidiaries (held by related parties, face value $35,010)		34,099
Other liabilities	527	908
Non-current liabilities held for sale		2,551
Total liabilities	107,591	125,833
Commitments and Contingencies (Note 13)
Contingently redeemable non-controlling interest	2,977	2,225
Stockholders' equity
Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding
Common stock, $0.001 par value; 350,000,000 shares authorized and 30,028,319 shares issued and 28,976,454 outstanding at December 31, 2022; and 28,932,444 shares issued and 28,507,490 outstanding at June 30, 2022	29	29
Additional paid-in-capital	3,314,173	3,312,763
Accumulated deficit	(3,258,057)	(3,279,296)
Total Great Elm Group, Inc. stockholders' equity	56,145	33,496
Non-controlling interest	2,977	6,533
Total stockholders' equity	59,122	40,029
Total liabilities, non-controlling interest and stockholders' equity	$ 169,690	$ 168,087

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Statement of Financial Position [Abstract]
Investments, cost basis	$ 40,103	$ 68,766
Investments, cost basis		2,432
Long term debt, face value	26,945	26,945
Convertible notes, face value	36,987	36,085
Convertible notes payable to related party non-current	$ 15,019	15,133
Redeemable preferred stock held by related parties		$ 35,010
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	350,000,000	350,000,000
Common stock, shares issued	30,028,319	28,932,444
Common stock, shares outstanding	28,976,454	28,507,490

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenues	$ 1,879	$ 1,021	$ 3,739	$ 2,004
Operating costs and expenses:
Investment management expenses	2,311	1,969	4,300	3,156
Depreciation and amortization	295	109	589	218
Selling, general and administrative	2,061	1,465	3,548	3,038
Expenses of Consolidated Fund		45	46	97
Total operating costs and expenses	4,667	3,588	8,483	6,509
Operating loss	(2,788)	(2,567)	(4,744)	(4,505)
Dividends and interest income	1,439	644	2,912	1,297
Net realized and unrealized gain (loss) on investments	22,242	(1,821)	15,445	(1,835)
Net realized and unrealized gain (loss) on investments of Consolidated Fund		194	(16)	5
Gain on sale of controlling interest in subsidiary	10,524		10,524
Interest expense	(1,955)	(1,293)	(3,929)	(2,586)
Income (loss) before income taxes from continuing operations	29,462	(4,843)	20,192	(7,624)
Income tax benefit (expense)	231	53	(2)	85
Net income (loss) from continuing operations	29,693	(4,790)	20,190	(7,539)
Discontinued operations:
Net income from discontinued operations	35	631	999	3,486
Net income (loss)	29,728	(4,159)	21,189	(4,053)
Less: net income (loss) attributable to non-controlling interest, continuing operations	18	(129)	(1,554)	(233)
Less: net income attributable to non-controlling interest, discontinued operations	180	208	1,504	618
Net income (loss) attributable to Great Elm Group, Inc.	$ 29,530	$ (4,238)	$ 21,239	$ (4,438)
Basic income (loss) per share from:
Continuing operations	$ 1.03	$ (0.18)	$ 0.76	$ (0.28)
Discontinued operations	(0.01)	0.02	(0.02)	0.11
Basic net income (loss) per share	1.02	(0.16)	0.74	(0.17)
Diluted income (loss) per share from:
Continuing operations	0.74	(0.18)	0.56	(0.28)
Discontinued operations		0.02	(0.01)	0.11
Diluted net income (loss) per share	$ 0.74	$ (0.16)	$ 0.55	$ (0.17)
Weighted average shares of common stock outstanding basic	28,803	26,462	28,672	26,222
Weighted average shares of common stock outstanding diluted	40,586	26,462	40,455	26,222

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity and Contingently Redeemable Non-controlling Interest (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total Great Elm Group Inc. Stockholders' Equity	Non-controlling Interest
Beginning balance at Jun. 30, 2021	$ 52,785	$ 26	$ 3,307,613	$ (3,264,403)	$ 43,236	$ 9,549
Beginning balance (in shares) at Jun. 30, 2021		25,948,000
Beginning balance, Contingently redeemable non-controlling interest at Jun. 30, 2021	2,639
Net (loss) income	(99)			(200)	(200)	101
Net (loss) income, Contingently redeemable non-controlling interest	205
Issuance of interests in Consolidated Funds, net	527					527
Issuance of common stock related to vesting of restricted stock (in shares)		145,000
Stock-based compensation	581		581		581
Ending balance at Sep. 30, 2021	53,794	$ 26	3,308,194	(3,264,603)	43,617	10,177
Ending balance (in shares) at Sep. 30, 2021		26,093,000
Ending balance, Contingently redeemable non-controlling interest at Sep. 30, 2021	2,844
Net (loss) income	(4,262)			(4,238)	(4,238)	(24)
Net (loss) income, Contingently redeemable non-controlling interest	104
Redemption of interests in Consolidated Funds, net	(962)					(962)
Issuance of common stock related to vesting of restricted stock	1	$ 1			1
Issuance of common stock related to vesting of restricted stock (in shares)		722,000
Stock-based compensation	1,131		1,131		1,131
Ending balance at Dec. 31, 2021	49,702	$ 27	3,309,325	(3,268,841)	40,511	9,191
Ending balance (in shares) at Dec. 31, 2021		26,815,000
Ending balance, Contingently redeemable non-controlling interest at Dec. 31, 2021	2,948
Beginning balance at Jun. 30, 2022	$ 40,029	$ 29	3,312,763	(3,279,296)	33,496	6,533
Beginning balance (in shares) at Jun. 30, 2022	28,507,490	28,507,000
Beginning balance, Contingently redeemable non-controlling interest at Jun. 30, 2022	$ 2,225
Net (loss) income	(9,201)			(8,291)	(8,291)	(910)
Net (loss) income, Contingently redeemable non-controlling interest	662
Distributions to non-controlling interests in Consolidated Fund	(634)					(634)
Issuance of common stock related to vesting of restricted stock (in shares)		267,000
Stock-based compensation	834		834		834
Ending balance at Sep. 30, 2022	31,028	$ 29	3,313,597	(3,287,587)	26,039	4,989
Ending balance (in shares) at Sep. 30, 2022		28,774,000
Ending balance, Contingently redeemable non-controlling interest at Sep. 30, 2022	2,887
Net (loss) income	29,638			29,530	29,530	108
Net (loss) income, Contingently redeemable non-controlling interest	90
Redemption of non-controlling interests upon sale of controlling interest in subsidiary	(2,120)					(2,120)
Issuance of common stock related to vesting of restricted stock (in shares)		202,000
Stock-based compensation	576		576		576
Ending balance at Dec. 31, 2022	$ 59,122	$ 29	$ 3,314,173	$ (3,258,057)	$ 56,145	$ 2,977
Ending balance (in shares) at Dec. 31, 2022	28,976,454	28,976,000
Ending balance, Contingently redeemable non-controlling interest at Dec. 31, 2022	$ 2,977

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income (loss) from continuing operations	$ 20,190	$ (7,539)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization	589	218
Stock-based compensation	1,410	1,712
Sales of investments by Consolidated Fund	1,558	4,733
Purchases of investments by Consolidated Fund		(5,106)
Stock dividends received		(99)
Unrealized gain on investments from Consolidated Fund		(12)
Realized loss on investments from Consolidated Fund	16	7
Unrealized (gain) loss on investments	(35,172)	1,182
Realized loss on investments	19,727	653
Gain on sale of controlling interest in subsidiary	(10,524)
Non-cash interest and amortization of capitalized issuance costs	1,176	1,000
Deferred tax expense (benefit)	4	(85)
Change in fair value of contingent consideration	60
Other non-cash expense, net	227
Changes in operating assets and liabilities:
Receivables from managed funds	(169)	128
Prepaid assets, deposits, and other assets	563	135
Operating leases	11	(10)
Accounts payable, accrued expenses and other liabilities	(1,238)	(1,845)
Net cash used in operating activities - continuing operations	(1,572)	(4,928)
Net cash provided by operating activities - discontinued operations	2,916	8,038
Net cash provided by operating activities	1,344	3,110
Cash flows from investing activities:
Proceeds from sale of controlling interest in subsidiary, net of cash sold	17,735
Investments in portfolio funds paid in advance	(3,000)
Purchases of investments		(165)
Sales of investments		187
Purchases of property and equipment	(30)	(3)
Net cash provided by investing activities - continuing operations	14,705	19
Net cash used in investing activities - discontinued operations	(4,051)	(3,143)
Net cash provided by (used in) investing activities	10,654	(3,124)
Cash flows from financing activities:
Principal payments on related party notes payable	(18,409)
Distributions to non-controlling interests in consolidated fund	(634)
Due to broker of Consolidated Fund		17
Capital contributions from non-controlling interests in Consolidated Fund		24
Net cash (used in) provided by financing activities - continuing operations	(19,043)	41
Net cash provided by financing activities - discontinued operations	641	547
Net cash (used in) provided by financing activities	(18,402)	588
Net (decrease) increase in cash and cash equivalents, including cash and cash equivalents classified within current assets held for sale	(6,404)	574
Less: net decrease (increase) in cash and cash equivalents classified within current assets held for sale	494	(5,442)
Add: cash received from discontinued operations	2,600	2,888
Net decrease in cash and cash equivalents	(3,310)	(1,980)
Cash and cash equivalents at beginning of period	22,281	18,745
Cash and cash equivalents at end of period	18,971	16,765
Cash paid for interest	2,751	$ 1,580
Non-cash investing and financing activities
Lease liabilities and right of use assets arising from operating leases	167
Partial settlement of Seller Note in exchange for GECC stock	2,609
Non-cash distributions received from Consolidated Fund	$ 177

Organization

Organization	6 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Great Elm Group, Inc. (referred to as the Company or GEG ) is a holding company incorporated in Delaware. The Company views its operations and manages its business as one operating segment, which is the business of investment management focused on growing a scalable and diversified portfolio of long-duration, permanent capital vehicles across corporate credit, specialty finance, real estate and other asset classes. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries, including Great Elm Capital Management, Inc. ( GECM ), Great Elm Opportunities GP, Inc. ( GEO GP ), Great Elm Capital GP, LLC ( GEC GP ), Great Elm FM Acquisition, Inc. ( FM Acquisition ), Great Elm DME Holdings, Inc. ( DME Holdings ), and Great Elm DME Manager, LLC ( DME Manager ), as well as its majority-owned subsidiaries Forest Investments, Inc. ( Forest ) (through December 30, 2022) and Great Elm Healthcare, LLC ( HC LLC ) and its wholly-owned subsidiaries (classified as held for sale as of December 31, 2022). In addition, we have determined that the Company is the primary beneficiary of certain variable interest entities, and therefore the operations of those entities have been included in our consolidated results for the relevant periods.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and footnotes which are normally included in the Company’s Form 10-K and should be read in conjunction with the audited consolidated financial statements and notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2022. These financial statements reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes are necessary to fairly state results for the interim periods presented. Results of operations for interim periods are not necessarily indicative of annual results of operations. Previously reported assets and liabilities related to our Durable Medical Equipment ( DME ) Business, primarily consisting of HC LLC and its subsidiaries, have been reclassified as assets and liabilities held for sale on the Company's consolidated balance sheet as of June 30, 2022. In addition, the historical results of the DME Business and related activity have been presented in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended December 31, 2022 and 2021 as discontinued operations. See Note 4 – Assets and Liabilities Held for Sale and Discontinued Operations. Use of Estimates The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America ( US GAAP ) requires the Company to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates all of these estimates and assumptions. Included in these estimates and assumptions are items that relate to revenue recognition, depreciable lives of property and equipment, impairment of long lived tangible and intangible assets, valuation allowance for deferred tax assets, fair value measurements including stock-based compensation and contingent consideration, estimates associated with the application of acquisition accounting, and the val ue of lease liabilities and corresponding right of use assets. Although these and other estimates and assumptions are based on the best available information, actual results could be different from these estimates. Principles of Consolidation The Company consolidates the assets, liabilities, and operating results of its wholly-owned and majority-owned subsidiaries, as well as subsidiaries in which we hold a controlling financial interest as of the financial statement date. In most cases, a controlling financial interest reflects ownership of a majority of the voting interests. We consolidate a variable interest entity ( VIE ) when we possess both the power to direct the activities of the VIE that most significantly impact its economic performance and we are either obligated to absorb the losses that could potentially be significant to the VIE or we hold the right to receive benefits from the VIE that could potentially be significant to the VIE. All intercompany accounts and transactions have been eliminated in consolidation. Non-controlling interests in the Company’s subsidiaries are reported as a component of liabilities for mandatorily redeemable interests, temporary equity for contingently redeemable interests or permanent equity, separate from the Company’s equity. See Note 10 – Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries. Results of operations attributable to the non-controlling interests are included in the Company’s condensed consolidated statements of operations. Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with original maturities of 90 days or less at the date of purchase. Cash equivalents consist primarily of exchange-traded money market funds. The Company is exposed to credit risk in the event of default by the financial institutions or the issuers of these investments to the extent the amounts on deposit or invested are in excess of amounts that are insured. Earnings per Share The following table presents the calculation of basic and diluted income (loss) per share: For the three months ended December 31, For the six months ended December 31, (in thousands except per share amounts) 2022 2021 2022 2021 Numerator: Net income (loss) from continuing operations $ 29,693 $ ( 4,790 ) $ 20,190 $ ( 7,539 ) Less: net income (loss) attributable to non-controlling interest, continuing operations 18 ( 129 ) ( 1,554 ) ( 233 ) Numerator for basic EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc. $ 29,675 $ ( 4,661 ) $ 21,744 $ ( 7,306 ) Net income from discontinued operations 35 631 999 3,486 Less: net income attributable to non-controlling interest, discontinued operations 180 208 1,504 618 Numerator for basic EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc. $ ( 145 ) $ 423 $ ( 505 ) $ 2,868 Effect of dilutive securities: Interest expense associated with Convertible Notes, continuing operations $ 480 $ - $ 960 $ - Numerator for diluted EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities $ 30,155 $ ( 4,661 ) $ 22,704 $ ( 7,306 ) Numerator for diluted EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc. $ ( 145 ) $ 423 $ ( 505 ) $ 2,868 Denominator: Denominator for basic EPS - Weighted average shares of common stock outstanding 28,803 26,462 28,672 26,222 Effect of dilutive securities: Restricted stock 1,131 - 1,131 - Convertible Notes 10,652 - 10,652 - Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities 40,586 26,462 40,455 26,222 Basic income (loss) per share from: Continuing operations $ 1.03 $ ( 0.18 ) $ 0.76 $ ( 0.28 ) Discontinued operations ( 0.01 ) 0.02 ( 0.02 ) 0.11 Basic net income (loss) per share $ 1.02 $ ( 0.16 ) $ 0.74 $ ( 0.17 ) Diluted income (loss) per share from: Continuing operations $ 0.74 $ ( 0.18 ) $ 0.56 $ ( 0.28 ) Discontinued operations - 0.02 $ ( 0.01 ) 0.11 Diluted net income (loss) per share $ 0.74 $ ( 0.16 ) $ 0.55 $ ( 0.17 ) As of December 31, 2022, the Company had 1,512,222 potential shares of common stock issuable upon the exercise of stock options that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive. As of December 31, 2021 , the Company had 10,139,031 shares of common stock issuable upon the conversion of Convertible Notes and 2,778,261 potential shares issuable upon the exercise of stock options and vesting of restricted stock units and restricted stock awards that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive. As of December 31, 2022 and 2021, the Company had an aggregate of 1,108,892 and 153,451 issued shares, respectively, that are subject to forfeiture by the employee at a nominal price if service milestones are not met. The Company does not account for such shares as being outstanding for accounting purposes since they are unvested and subject to forfeiture. Recently Issued Accounting Standards Current Expected Credit Losses. In June 2016, the FASB issued Accounting Standards Update ( ASU ) 2016-13, Financial Instruments – Credit Losses (Topic 326) , which changes the impairment model for financial instruments, including trade receivables from an incurred loss method to a new forward looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical experience, current information and reasonable and supportable forecasts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the potential impact that the adoption of this ASU will have on its consolidated financial statements. Reference Rate Reform. In March 2020 and January 2021, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which provide optional expedients and exceptions for applying US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate ( LIBOR ) if certain criteria are met. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , extending the sunset date under Topic 848 from December 31, 2022 to December 31, 2024 to align the temporary accounting relief guidance with the expected LIBOR cessation date of June 30, 2023. The Company is evaluating the potential impact that the adoption of these ASUs will have on its consolidated financial statements.

Forest Note and Transactions wi

Forest Note and Transactions with JPM	6 Months Ended
	Dec. 31, 2022
Note And Transaction [Abstract]
Forest Note and Transactions with JPM	3. Forest Note and Transactions with JPM Forest Note On December 29, 2022, in connection with the Stock Purchase Agreement and Stockholders Agreement, each defined below, GEG and FM Acquisition issued a promissory note in favor of Forest in an aggregate principal amount equal to $ 38.1 million (the Forest Note ), in exchange for the transfer to FM Acquisition of $ 3.3 million of Series A-1 preferred interests and $ 34.0 million of S eries A-2 preferred interests held by Forest in HC LLC plus, in each case, accrued dividends thereon to the date of transfer. The Forest Note had a maturity date of March 1, 2023 and bore interest at a fixed rate of 9 % per annum. On December 30, 2022, in connection with the Transactions with JPM, as defined below, t he Company partially repaid the Forest Note in the amount of $ 18.4 million. As of December 31, 2022, the remaining balance, inclusive of accrued interest, due to Forest under the Forest Note was $ 19.7 million , which was subsequently paid in full on January 3, 2023. During the three and six months ended December 31, 2022 , the Company recorded interest expense of approximately $ 10 thousand with respect to the Forest Note. Sale of Controlling Interest in Forest On December 30, 2022, GEG and FM Acquisition, entered into a stock purchase agreement (the Stock Purchase Agreement ) with J.P. Morgan Broker-Dealer Holdings Inc. ( JPM ) to sell 61 shares of the common stock, $ 0.001 par value per share, of Forest owned by FM Acquisition and GEG, which constitute 61 % of the issued and outstanding shares of Forest’s common stock, to JPM for approximately $ 18.4 million in cash (the Sale of Controlling Interest in Forest ). Upon execution of the Stock Purchase Agreement, the Company deconsolidated Forest and recognized an investment in respect to its retained 19 % non-controlling interest in Forest (the Investment in Forest ) in the amount of $ 2.1 million . The following table shows calculation of the recorded gain on sale of controlling interest in subsidiary of $ 10.5 million on the Company's condensed consolidated statements of operations for the three and six months ended December 31, 2022: (in thousands) December 30, 2022 Cash proceeds $ 18,409 Fair value of retained 19 % non-controlling interest in Forest 2,128 Carrying value of non-controlling interest prior to sale 2,120 22,657 Less: Carrying value of net assets disposed 12,133 Gain on sale of controlling interest in subsidiary $ 10,524 The Investment is Forest was determined to be an equity security measured at fair value within Level 3 of the fair value hierarchy. The Sale of Controlling Interest in Forest did not meet the criteria for presentation as discontinued operations. The following table shows loss before income taxes of Forest, as well as loss before income taxes of Forest attributable to Great Elm Group, Inc.: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Loss before income taxes ( 891 ) ( 312 ) ( 2,679 ) ( 960 ) Loss before income taxes attributable to Great Elm Group, Inc. ( 909 ) ( 151 ) ( 1,133 ) ( 782 ) Put Option In connection with the Stock Purchase Agreement, GEG, JPM and Forest entered into an amended and restated stockholders’ agreement (the Stockholders Agreement ). Pursuant to the Stockholders Agreement, from January 17, 2023 until February 17, 2023, GEG had the right (the Put Option , together with the Sale of Controlling Interest in Forest referred to as the Transactions with JPM ) to sell its remaining 19 % non-controlling interest in Forest for the then fair market value. As a result of Forest joining the JPM consolidated group, we recognized an unrealized gain on our Investment in Forest of $ 24.4 million during the three and six months ended December 31, 2022 within net realized and unrealized gain (loss) on investments on the consolidated statements of operations. The Put Option was exercised on January 17, 2023. See Note 14 - Subsequent Events .

Assets and Liabilities Held for

Assets and Liabilities Held for Sale and Discontinued Operations	6 Months Ended
	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Assets and Liabilities Held for Sale and Discontinued Operations	4. Assets and Liabilities Held for Sale and Discontinued Operations On January 3, 2023, DME Holdings along with the minority owners of HC LLC, entered into an agreement (the DME Purchase Agreement ) with QHM Holdings, Inc., a subsidiary of Quipt Home Medical Corp. ( Quipt ), to sell 100 % of the outstanding membership interests in HC LLC to Quipt ( Sale of HC LLC ). As of December 31, 2022, the Company concluded that the disposal group satisfied the criteria for presentation as held for sale and discontinued operations. See Note 14 - Subsequent Events. The following table provides a reconciliation of the Company’s net income from discontinued operations presented in the condensed consolidated statements of operations: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Discontinued operations: Durable medical equipment sales and services revenue $ 10,546 $ 10,277 $ 21,574 $ 20,353 Durable medical equipment rental income 6,183 5,451 11,874 10,930 Net revenue $ 16,729 15,728 33,448 31,283 Cost of durable medical equipment sold and services ( 4,314 ) ( 4,309 ) ( 8,654 ) ( 8,369 ) Cost of durable medical equipment rentals ( 2,213 ) ( 1,734 ) ( 4,263 ) ( 3,584 ) Durable medical equipment other operating expenses ( 8,548 ) ( 8,413 ) ( 17,519 ) ( 14,569 ) Depreciation and amortization ( 396 ) ( 443 ) ( 783 ) ( 896 ) Transaction costs ( 1,439 ) ( 127 ) ( 1,439 ) ( 224 ) Interest expense ( 24 ) ( 69 ) ( 46 ) ( 138 ) Loss on distinguishment of debt - - ( 23 ) - Other income (expense), net 9 ( 14 ) 10 2 (Loss) income before income taxes from discontinued operations ( 196 ) 619 731 3,505 Income tax benefit (expense) 231 12 268 ( 19 ) Net income from discontinued operations $ 35 $ 631 $ 999 $ 3,486 The following table provides a reconciliation of the assets and liabilities held for sale presented in the condensed consolidated balance sheets as of December 31, 2022 and June 30, 2022: (in thousands) December 31, 2022 June 30, 2022 Cash and cash equivalents $ 820 $ 1,314 Accounts receivable 5,531 5,867 Inventories 925 898 Prepaid and other current assets 265 385 Property and equipment, net 395 - Equipment held for rental, net 7,724 - Identifiable intangible assets, net 5,315 - Goodwill 52,463 - Right of use assets 3,029 - Other assets 162 - Current assets held for sale $ 76,629 $ 8,464 Property and equipment, net $ - $ 521 Equipment held for rental, net - 7,504 Identifiable intangible assets, net - 5,921 Goodwill - 52,463 Right of use assets - 2,989 Other assets - 163 Non-current assets held for sale $ - $ 69,561 Accounts payable $ 5,649 $ 6,030 Accrued expenses and other liabilities 3,526 3,544 Deferred revenue 1,022 1,218 Current portion of lease liabilities 1,260 1,218 Current portion of equipment financing debt 4,365 2,993 Lease liabilities, net of current portion 1,911 - Redeemable preferred stock of subsidiaries 314 - Current liabilities held for sale $ 18,047 $ 15,003 Lease liabilities, net of current portion $ - $ 1,903 Redeemable preferred stock of subsidiaries - 648 Non-current liabilities held for sale $ - $ 2,551

Revenue

Revenue	6 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue	5. Revenue The revenues from each major source are summarized in the following table: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Management fees $ 1,381 $ 895 $ 2,683 $ 1,771 Property management fees 278 - 552 - Administration and service fees 220 126 504 233 Total revenues $ 1,879 $ 1,021 $ 3,739 $ 2,004 The Company recognizes investment management revenue at amounts that reflect the consideration to which it expects to be entitled in exchange for providing services to its customers. Investment management revenue primarily consists of fees based on a percentage of assets under management, fees based on the performance of managed assets, and administration and service fees. Fees are based on agreements with each investment product and may be terminated at any time by either party subject to the specific terms of each respective agreement. Management Fees The Company earns management fees based on the investment management agreements GECM has with GECC, Monomoy Properties UpREIT, LLC, the operating partnership of Monomoy Properties REIT, LLC ( Monomoy UpREIT ) and other private funds managed by GECM (collectively, the Funds ). The performance obligation is satisfied and management fee revenue is recognized over time as the services are rendered, since the Funds simultaneously receive and consume the benefits provided as GECM performs services. Management fee rates range from 1.0 % to 1.5 % of the management fee assets specified within each agreement and are calculated and billed in arrears of the period, either monthly or quarterly. Property Management Fees Under the Monomoy UpREIT investment management agreement, GECM is also entitled to 4.0 % of rent collected. These fees are collected monthly in arrears. Property management fee revenue is recognized over time as the services are provided. Incentive Fees The Company earns incentive fees based on the investment management agreements GECM has with GECC and Monomoy Properties II, LLC (a feeder fund of Monomoy UpREIT). Where an investment management agreement includes both management fees and incentive fees, the performance obligation is considered to be a single obligation for both fees. Incentive fees are variable consideration associated with the investment management agreements. Incentive fees are earned based on investment performance during the period, subject to the achievement of minimum return levels or high-water marks, in accordance with the terms of the respective investment management agreements. Incentive fees are typically 20 % of the performance-based metric specified within each agreement. As of December 31, 2022 , there are no incentive fees earned under the investment management agreements for which it was probable that a significant reversal of revenue would not occur. Administration and Service Fees The Company earns administration fees based on the administration agreement GECM has with GECC whereby the investment vehicles reimburse GECM for costs incurred in performing certain administrative functions. This revenue is recognized over time as the services are performed. Administration fees are billed quarterly in arrears, which is consistent with the timing of the delivery of services and reflect agreed upon rates for the services provided. The services are accounted for as a single performance obligation for each investment vehicle that is a series of distinct services with substantially the same pattern of transfer as the services are provided on a daily basis.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	6. Related Party Transactions Related party transactions are measured in part by the amount of consideration paid or received as established and agreed by the parties. Consideration paid for such services in each case is the negotiated value. The Company’s wholly-owned subsidiary, GECM, has agreements to provide administrative services and manage the investment portfolio for GECC, Monomoy UpREIT and other investment products. Under these agreements, GECM receives administration fees, management fees based on the managed assets (other than cash and cash equivalents) and rent collected, and incentive fees based on the performance of those assets. See Note 5 – Revenue for additional discussions of the fee arrangements. The Company’s wholly-owned subsidiary, GEO GP, serves as the general partner of Great Elm Opportunities Fund I, LP ( GEOF ), a Delaware multi-series limited partnership. GECM serves as the investment manager of GEOF. As the general partner, GEO GP provides administrative services and oversees GECM’s management of the investment portfolio of GEOF. GECM also served as the managing member of Great Elm SPAC Opportunity Fund, LLC ( GESOF or the Consolidated Fund ), a Delaware limited liability company, and provided administrative services and managed the investment portfolio of GESOF. The Company has determined that GEOF, each series of GEOF and GESOF are VIEs and that the criteria for consolidation were met for GESOF during the six months ended December 31, 2022 and three and six months ended December 31, 2021 . The operations of the Consolidated Fund are included in our consolidated financial statements. In July 2022, GESOF liquidated and the Company received a distribution of cash and equity investments, pending final dissolution of the Consolidated Fund. There are no consolidated funds as of December 31, 2022. See Note 2 – Summary of Significant Accounting Policies for additional details. The Company retained the specialized investment company accounting guidance under US GAAP with respect to the Consolidated Fund during the periods it was consolidated. As such, investments of the Consolidated Fund were included in the condensed consolidated balance sheets at fair value and the net unrealized and realized gain (loss) on those investments was included as a component of other income on the condensed consolidated statements of operations. Non-controlling interests in the Consolidated Fund were included in net income (loss) attributable to non-controlling interest, continuing operations. Additionally, the Company receives dividends from its investment in GECC and Monomoy UpREIT and earns unrealized gains and losses based on the mark-to-market performance of those investments. See Note 7 – Fair Value Measurements. The following tables summarize activity and outstanding balances between the managed investment products and the Company: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Net realized and unrealized loss on investments $ ( 2,048 ) $ ( 2,249 ) $ ( 8,845 ) $ ( 2,364 ) Net realized and unrealized gain (loss) on investments of Consolidated Fund - 194 ( 16 ) 5 Dividend income 1,281 548 2,661 1,102 (in thousands) December 31, 2022 June 30, 2022 Dividends receivable $ 300 $ 612 Investment management revenues receivable 1,141 1,241 Receivable for reimbursable expenses paid 877 592 Receivables from managed funds $ 2,318 $ 2,445 Outstanding receivables are included in receivables from managed funds in the condensed consolidated balance sheets. The Company owns 1,569,787 shares of GECC (approximately 20.6 % of the outstanding shares). Certain officers and directors of GECC are also officers and directors of GEG. Matthew A. Drapkin is a director of our Board and also the Chairman of GECC's Board of Directors, and Adam M. Kleinman is our President, as well as the Chief Compliance Officer of GECC. In October 2020, GECM entered into a shared personnel and reimbursement agreement with Imperial Capital Asset Management, LLC ( ICAM ). Jason W. Reese, the Executive Chairman of the Company’s Board of Directors, is the Chief Executive Officer of ICAM. Costs incurred under this agreement relate to human resources, investment management, and other administrative services provided by ICAM employees, for the benefit of the Company, and are included in investment management expenses in the condensed consolidated statements of operations. During the three and six months ended December 31, 2022 such costs were $ 0.3 million and $ 0.7 million , respectively. During the three and six months ended December 31, 2021 such costs were $ 0.1 million and $ 0.3 million , respectively. On August 31, 2021, the Company entered into a financial advisory agreement with Imperial Capital, LLC. The agreement included a retainer fee of $ 0.1 million which was paid in October 2021. In addition, the agreement included a success-based fee upon a sale of HC LLC. Upon completion of the Sale of HC LLC on January 3, 2023, a success fee of $ 0.7 million was paid to Imperial Capital, LLC. Jason W. Reese is the Co-Founder and Executive Member of Imperial Capital, LLC. See Note 3 - Forest Note and Transactions with JPM for details on the Forest Note and Investment in Forest.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. US GAAP provides a framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: ▪ Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ▪ Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. ▪ Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. All financial assets or liabilities that are measured at fair value on a recurring and no n-recurring basis have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. The assets and liabilities measured at fair value on a recurring and no n-recurring basis are summarized in the tables below: Fair Value as of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 13,108 $ - $ 26,501 $ 39,609 Total assets within the fair value hierarchy $ 13,108 $ - $ 26,501 $ 39,609 Investments valued at net asset value $ 14,927 Total assets $ 54,536 Liabilities: Contingent consideration liability $ - $ - $ 1,180 $ 1,180 Total liabilities $ - $ - $ 1,180 $ 1,180 Fair Value as of June 30, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 27,678 $ - $ - $ 27,678 Equity investments of Consolidated Fund 1,797 - - 1,797 Total assets within the fair value hierarchy $ 29,475 $ - $ - $ 29,475 Investments valued at net asset value $ 20,364 Total assets $ 49,839 Liabilities: Contingent consideration liability $ - $ - $ 1,120 $ 1,120 Total liabilities $ - $ - $ 1,120 $ 1,120 There were no transfers between levels of the fair value hierarchy during the three and six months ended December 31, 2022 and 2021. The following is a reconciliation of changes in contingent consideration, a Level 3 liability: (in thousands) For the three months ended December 31, 2022 For the six months ended December 31, 2022 Beginning balance $ 1,050 $ 1,120 Change in fair value 130 60 Ending balance $ 1,180 $ 1,180 The valuation techniques applied to investments held by the Company and by the Consolidated Fund varied depending on the nature of the investment. Equity and equity-related securities Securities traded on a national securities exchange are stated at the close price on the valuation date. To the extent these securities are actively traded and valuation adjustments are no t applied, they are classified as Level 1. Investments in private funds The Company values investments in private funds using net asset value ( NAV ) as reported by each fund’s investment manager. The private funds calculate NAV in a manner consistent with the measurement principles of FASB Accounting Standards Codification Topic 946, Financial Services – Investment Companies , as of the valuation date. Investments valued using NAV as a practical expedient are not categorized within the fair value hierarchy. As of December 31, 2022 and June 30, 2022 , investments in private funds primarily consisted of our investment in Monomoy UpREIT. Monomoy UpREIT allows redemptions annually with 90 days’ notice, subject to a one-year lockup from the date of initial inves tment, which are capped at 5 % of its NAV. As of December 31, 2022, there were no unfunded commitments. Contingent consideration In conjunction with the acquisition of the Monomoy UpREIT investment management agreement, the Company entered into a contingent consideration agreement that requires the Company to pay up to $ 2.0 million if certain fee revenue thresholds are achieved during fiscal years ending June 30, 2023 and 2024. The Company estimated the fair value of the contingent consideration using a Monte Carlo simulation model. The key assumptions in applying the Monte Carlo simulation model as of December 31, 2022 and June 30, 2022 included revenue forecasts, volatility of 20.2 % and 19.6 %, respectively, and a discount rate of 8.25 % and 6.5 %, respectively. As of December 31, 2022, the contingent consideration of $ 1.2 million was included within the current portion of related party payables and related party payables in the condensed consolidated balance sheet. As of June 30, 2022, the contingent consideration of $ 1.1 million was included within the related party payables in the condensed consolidated balance sheet. See Note 8 - Borrowings for additional discussion related to the fair value of our notes payable and other long-term debt. T he carrying value of all other financial assets and liabilities approximate their fair values.

Borrowings

Borrowings	6 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Borrowings	8. Borrowings Related party borrowings of the Company's subsidiaries are summarized in the following table: (in thousands) Borrower December 31, 2022 June 30, 2022 Seller Note GECM $ 3,661 $ 6,270 Forest Note FM Acquisition 19,700 - Total principal $ 23,361 $ 6,270 Unamortized debt issuance cost - - Total related party notes payable 23,361 6,270 Less current portion of related party notes payable ( 23,361 ) - Related party notes payable, net of current portion $ - $ 6,270 The Company’s and subsidiaries’ other outstanding borrowings are summarized in the following table: (in thousands) Borrower December 31, 2022 June 30, 2022 GEGGL Notes GEG $ 26,945 $ 26,945 Total principal $ 26,945 $ 26,945 Unamortized debt discounts and issuance costs ( 1,278 ) ( 1,413 ) Total other outstanding borrowings 25,667 25,532 Less current portion of other outstanding borrowings - - Other outstanding borrowings, net of current portion $ 25,667 $ 25,532 During the three and six months ended December 31, 2022, the Company incurred interest expense of $ 0.7 million and $ 1.3 million , respectively, on related-party and other borrowings. During the three and six months ended December 31, 2021, the Company did not have any related-party or other borrowings. See Note 9 – Convertible Notes for interest expense on Convertible Notes and Note 10 – Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries for interest expense on the preferred stock of subsidiaries. The Company’s aggregate future required principal debt repayments are summarized in the following table: (in thousands) Principal Due For the six months ending June 30, 2023 $ 19,700 For the year ending June 30, 2024 3,661 For the year ending June 30, 2025 - For the year ending June 30, 2026 - For the year ending June 30, 2027 26,945 Thereafter - Total $ 50,306 Additional details of each borrowing are discussed below. Seller Note On May 4, 2022 as part of the consideration paid to acquire the Monomoy UpREIT investment management agreement, GECM issued ICAM a $ 6.3 million promissory note (the Seller Note ). The Seller Note is due on August 4, 2023 and is payable at GECM’s option with either cash or newly issued GEG shares. There are no prepayment penalties. The Seller Note bears interest at 6.5 %, which is paid quarterly. In December 2022, the Company settled the principal amount of $ 2.0 million by transferring 200,000 shares of GECC stock. In August 2022, the Company settled the princip al amount of $ 0.6 million by transferring 50,000 shares of GECC stock. GEGGL Notes On June 9, 2022, we issued $ 26.9 million in aggregate principal amount of 7.25 % notes due 2027 (the GEGGL Notes ), which included $ 1.9 million of GEGGL Notes issued in connection with the partial exercise of the underwriters’ over-allotment option. The GEGGL Notes are unsecured obligations and rank equal with all of our outstanding and future unsecured unsubordinated indebtedness. The unsecured notes are effectively subordinated, or junior in right of payment, to indebtedness under our Convertible Notes and any other future secured indebtedness that we may incur and structurally subordinated to all future indebtedness and other obligations of our subsidiaries. We pay interest on the GEGGL Notes on March 31, June 30, September 30 and December 31 of each year. The GEGGL Notes will mature on June 30, 2027 . The GEGGL Notes can be called on, or after, June 30, 2024. Holders of the GEGGL Notes do not have the option to have the notes repaid prior to the stated maturity date. The GEGGL Notes were issued in minimum denominations of $ 25 and integral multiples of $ 25 in excess thereof. The GEGGL Notes include covenants that limit additional indebtedness or the payment of dividends subject to compliance with a net consolidated debt to equity ratio of 2 :1 . As of December 31, 2022 our consolidated debt to equity ratio is 1.22 :1.00.

Convertible Notes

Convertible Notes	6 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Convertible Notes	9. Convertible Notes As of December 31, 2022 and June 30, 2022 , the total outstanding principal balance of convertible notes due on February 26, 2030 (the Convertible Notes ) was $ 37.0 million and $ 36.1 million , respectively, including cumulative interest paid in-kind. The Convertible Notes are held by a consortium of investors, including $ 15.0 million issued to certain related parties. Such Convertible Notes issued to related parties include: ▪ $ 6.9 million issued to entities associated with Matthew A. Drapkin, including funds managed by Northern Right Capital Management, L.P. ( Northern Right ), a significant shareholder. Mr. Drapkin, a member of the Company’s Board of Directors, is the Chief Executive Officer of Northern Right. ▪ $ 7.4 million issued to entities associated with Jason W. Reese, including funds managed by ICAM, a significant shareholder. ▪ $ 0.7 million issued to entities associated with Eric J. Scheyer, a member of the Company’s Board of Directors. The Convertible Notes accrue interest at 5.0 % per annum, payable semiannually in arrears on June 30 and December 31, commencing June 30, 2020, in cash or in kind at the option of the Company. Each $1,000 principal amount of the Convertible Notes are convertible into 288.0018 shares of the Company’s common stock, subject to the terms therein, prior to maturity at the option of the holder. The Company may, subject to compliance with the terms of the Convertible Notes, effect the conversion of some or all of the Convertible Notes into shares of common stock, subject to certain liquidity and pricing requirements, as specified in the Convertible Notes. The embedded conversion feature in the Convertible Notes qualifies for the scope exception to derivative accounting in FASB Accounting Standards Codification Topic 815, Derivatives and Hedging, for certain contracts involving a reporting entity’s own equity. The Company incurred $ 1.2 million in issuance costs on the original issuance. The debt issuance costs are being amortized over the 10 -year term and are netted with the principal balance on our condensed consolidated balance sheets. As of December 31, 2022 and June 30, 2022, the remaining balance of unamortized debt issuance costs was $ 0.8 million and $ 0.9 million , respectively. During the three and six months ended December 31, 2022, the Company incurred interest expense of $ 0.5 million and $ 1.0 million , respectively, related to the Convertible Notes, inclusive of non-cash interest related to amortization of debt issuance costs. During the three and six months ended December 31, 2021, the Company incurred interest expense of $ 0.4 million and $ 0.9 million , respectively, related to the Convertible Notes, inclusive of non-cash interest related to amortization of debt issuance costs.

Non-Controlling Interests and R

Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries	6 Months Ended
	Dec. 31, 2022
Noncontrolling Interest [Abstract]
Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries	10. Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries Non-Controlling Interests Holders of non-controlling interests in a subsidiary of the Company hold certain rights, which result in the classification of the securities as either liability, temporary equity, or permanent equity. The following table summarizes the non-controlling interest balances on the condensed consolidated balance sheets: (in thousands) December 31, 2022 June 30, 2022 HC LLC Temporary equity 2,977 2,225 Permanent equity 2,977 2,225 Total HC LLC 5,954 4,450 Consolidated Fund Permanent equity - 642 Forest Permanent equity - 3,666 Total non-controlling interests $ 5,954 $ 8,758 The following table summarizes the net income (loss) attributable to the non-controlling interests on the condensed consolidated statements of operations: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 HC LLC Temporary equity 90 104 752 309 Permanent equity 90 104 752 309 Total HC LLC 180 208 1,504 618 GEC GP Permanent equity - ( 2 ) - ( 4 ) Consolidated Fund Permanent equity - 34 ( 8 ) ( 51 ) Forest Permanent equity 18 ( 161 ) ( 1,546 ) ( 178 ) Total net income (loss) attributable to non-controlling interest $ 198 $ 79 $ ( 50 ) $ 385 HC LLC – Non-controlling interest classified as temporary equity The Company issued a 9.95 % common stock equity ownership in HC LLC. The holder of the interest has board observer rights for the HC LLC board of directors, but no voting rights. HC LLC has the right of first offer if the holder desires to sell the security and in the event of a sale of HC LLC, the holder must sell their securities (drag along rights) and has the right to participate in sales of HC LLC securities (tag along rights). In addition, upon the seventh anniversary of issuance date, if (i) the holder owns at least 50% of the common shares issued to it at the closing of the transaction, (ii) an initial public offering of HC LLC has not commenced and (iii) the holder has not had an earlier opportunity to sell its shares at their fair market value, the holder has the right to request a marketing process for a sale of HC LLC and has the right to put its common shares to HC LLC at the price for such shares implied by such marketing process. The Company also has the right to call the holder’s common shares at such price. The holder of the non-controlling interest is entitled to participate in earnings of HC LLC and is not required to fund losses. As the redemption is contingent upon future events outside of the Company’s control which are not probable, the Company has classified the non-controlling interest as temporary equity and its fair value on the date of issuance, adjusted for any earnings in HC LLC. Refer to Note 14 - Subsequent Events for details on the Sale of HC LLC to Quipt on January 3, 2023. HC LLC – Non-controlling interest classified as permanent equity The Company issued a 9.95 % common stock equity ownership in HC LLC. The rights are consistent with the non-controlling interest classified as temporary equity, other than the holder not having a contingent put right. Accordingly, the Company classified the non-controlling interest as permanent equity at its fair value on the date of issuance, adjusted for any earnings in HC LLC. Refer to Note 14 - Subsequent Events for details on the Sale of HC LLC to Quipt on January 3, 2023. GEC GP – Non-controlling interest classified as permanent equity GEC GP owned the rights to the profit sharing agreement with GECM as well as an intercompany obligation under a senior secured note payable issued by Great Elm GECC GP Corp (the GP Corp. Note ) in consideration for the assets acquired from MAST Capital Management, LLC. During the three months ended March 31, 2022, the Company purchased the remaining shares of GEC GP. As of December 31, 2022 , no non-controlling interest was outstanding. Forest – Non-controlling interest classified as permanent equity In December 2020, the Company sold to JPM a 20.0 % common stock interest in Forest in exchange for $ 2.7 million. A s of December 31, 2022 , no non-controlling interest was outstanding f ollowing the Sale of Controlling Interest in Forest. See Note 3 - Forest Note and Transactions with JPM. Consolidated Fund – Non-controlling interest classified as permanent equity As of June 30, 2022, the Company held 73.4 % of the capital in the Consolidated Fund. The remaining capital in the Consolidated Fund was recorded as a non-controlling interest that included affiliated individuals and entities. In July 2022, the Consolidated Fund ceased operations and distributed its remaining assets to non-controlling interests in the total amount of $ 0.6 million. Redeemable Preferred Stock of Subsidiaries Forest Preferred Stock classified as a liability On December 29, 2020, Forest issued 35,010 shares of preferred stock in Forest with a face value of $ 1,000 per share at issuance ( Forest Preferred Stock ). The preferred shares provided for a 9 % annual dividend, which was payable quarterly. As the preferred shares were mandatorily redeemable by the Company at their face value of $ 1,000 per share on December 29, 2027 , or at a 0 - 3 % premium decreasing over time based upon the occurrence of certain redemption events prior to December 29, 2027, the security was classified as a liability in the condensed consolidated balance sheet as of June 30, 2022. Following the Sale of Controlling Interest in Forest, there was no outstanding balance in respect to Forest Preferred Stock as of December 31, 2022. See Note 3 - Forest Note and Transactions with JPM. The dividends on Forest Preferred Stock were included in interest expense in the condensed consolidated statements of operations. During the three and six months ended December 31, 2022, the Company recorded interest expense, inclusive of non-cash interest related to amortization of discounts and debt issuance costs, of $ 0.8 million and $ 1.7 million , respectively, related to Forest Preferred Stock. During the three and six months ended December 31, 2021, the Company recorded interest expense, inclusive of non-cash interest related to amortization of discounts and debt issuance costs, of $ 0.8 million and $ 1.7 million , respectively, related to Forest Preferred Stock.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Stockholders' Equity	11. Stockholders’ Equity Restricted Stock Awards and Restricted Stock Units During the three and six months ended December 31, 2022, the Company granted 2,403 and 399,948 restricted stock awards, respectively, which have various vesting terms between 1 - 3 years subject to service requirements. Restricted stock units are subject to service requirements. During the three and six months ended December 31, 2022 the Company did no t grant any shares of restricted stock units. The Company accounts for forfeitures of the restricted stock awards and restricted stock units in the period occurred. The activity of the Company’s restricted stock awards and restricted stock units for the six months ended December 31, 2022 was as follows: Restricted Stock Awards and Restricted Stock Units Restricted Stock (in thousands) Weighted Average Grant Date Fair Value Outstanding at June 30, 2022 1,312 $ 1.79 Granted 400 2.19 Vested ( 411 ) 2.13 Forfeited ( 3 ) 2.50 Outstanding at December 31, 2022 1,298 $ 1.80 Non-Employee Director Deferred Compensation Plan In December 2020, the Company established the Great Elm Group, Inc. Non-Employee Directors Deferred Compensation Plan allowing non-employee directors to defer their cash and/or equity compensation under a non-revocable election for each calendar year. Such compensation is deferred until the earlier of 3 years from the original grant date of such compensation, termination of service, or death, and is payable in common stock shares. As of December 31, 2022, there were 167,939 restricted stock awards and restricted stock units that were deferred under this plan (and thus included in the number of restricted stock awards and restricted stock units outstanding as of that date), including 57,931 restricted stock awards, for which the service condition was met during the six months ended December 31, 2022. Stock Options The following table summarizes the Company’s option award activity as of and during the six months ended December 31, 2022: Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2022 2,134 $ 3.68 3.34 $ - Options granted 125 3.60 - - Forfeited, cancelled or expired ( 747 ) 3.60 - - Outstanding at December 31, 2022 1,512 $ 3.72 4.42 $ - Exercisable at December 31, 2022 1,439 $ 3.70 4.46 $ - Vested and expected to vest as of December 31, 2022 1,512 $ 3.72 4.42 $ - During the three and six months ended December 31, 2022, the Company recognized total stock-based compensation expense associated with all restricted stock and stock options of $ 0.6 million and $ 1.4 million , respectively. During the three and six months ended December 31, 2021, the Company recognized total stock-based compensation expense associated with all restricted stock and stock options of $ 1.1 million and $ 1.7 million , respectively. As of December 31, 2022, the Company had unrecognized compensation costs related to all unvested restricted stock awards and stock options totaling $ 1.8 million . During the six months ended December 31, 2022, the Company issued compensation to certain employees in the form of GECC common shares to be settled with GECC shares currently held by the Company. The total value of GECC shares awarded for the six months ended December 31, 2022 was $ 0.4 million, of which $ 0.1 million vested immediately, and the balance will vest annually pro-rata over a three year period. Related compensation expense was $ 0.1 million and $ 0.2 million for the three and six months ended December 31, 2022 , respectively.

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes As of June 30, 2022, the Company had net operating loss ( NOL ) carryforwards for federal income tax purposes of approximately $ 821 million. Following the Sale of Controlling Interest in Forest, the Forest entity ceased being part of our consolidated tax group and NOL carryforwards attributed to Forest generally became unavailable for the Company's use going forward. The Company retained approximately $ 154 million of the federal NOL carryforwards available to the Company as of June 30, 2022. Of these, approximately $ 139 million of federal NOL carryforwards will expire from 2023 through 2025 . The approximately $ 15 million of federal NOL carryforwards generated in fiscal year 2018 or later can be carried forward indefinitely. In light of the Company’s history of cumulative operating losses, the Company recorded a valuation allowance for all of its federal and state deferred tax assets, as it is presently unable to conclude that it is more likely than not that the federal and state deferred tax assets in excess of deferred tax liabilities will be realized. The Inflation Reduction Act ( IRA ) was enacted into law on August 16, 2022. Included in the IRA was a provision to implement a 15 % corporate alternative minimum tax on "adjusted financial statement income" for applicable corporations and a 1 % excise tax on repurchases of stock. These provisions are effective for tax years beginning after December 31, 2022. We are in the process of evaluating the provisions of the IRA, but we do not currently believe the IRA will have a material impact on our reported results, cash flows or financial position when it becomes effective.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies From time to time, the Company is involved in lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. The Company maintains insurance to mitigate losses related to certain risks. The Company is not a named party in any other pending or threatened litigation that we expect to have a material adverse impact on our business, results of operations, financial condition or cash flows.

Subsequent events

Subsequent events	6 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent events	14. Subsequent events On January 3, 2023, DME Holdings, along with the minority owners of HC LLC, entered into the DME Purchase Agreement with QHM Holdings, Inc., a subsidiary of Quipt, completing the Sale of HC LLC for $ 80.0 million, consisting of approximately $ 72.8 million in cash, $ 5.2 million of indebtedness assumed by Quipt and $ 2.0 million in shares of Quipt common stock based on the 20-day volume-weighted average price of Quipt’s common stock for the period ending on and including the second business day prior to the closing of the transaction. After transaction costs and amounts distributed to non-controlling interests, cash proceeds to GEG and subsidiaries were $ 64.1 million, of which $ 19.7 million were used to repay the remaining balance of the Forest Note, including accrued interest, in full. On January 17, the Company exercised the Put Option and sold the Investment in Forest for $ 26.5 million in cash.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and footnotes which are normally included in the Company’s Form 10-K and should be read in conjunction with the audited consolidated financial statements and notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2022. These financial statements reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes are necessary to fairly state results for the interim periods presented. Results of operations for interim periods are not necessarily indicative of annual results of operations. Previously reported assets and liabilities related to our Durable Medical Equipment ( DME ) Business, primarily consisting of HC LLC and its subsidiaries, have been reclassified as assets and liabilities held for sale on the Company's consolidated balance sheet as of June 30, 2022. In addition, the historical results of the DME Business and related activity have been presented in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended December 31, 2022 and 2021 as discontinued operations. See Note 4 – Assets and Liabilities Held for Sale and Discontinued Operations.
Use of Estimates	Use of Estimates The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America ( US GAAP ) requires the Company to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates all of these estimates and assumptions. Included in these estimates and assumptions are items that relate to revenue recognition, depreciable lives of property and equipment, impairment of long lived tangible and intangible assets, valuation allowance for deferred tax assets, fair value measurements including stock-based compensation and contingent consideration, estimates associated with the application of acquisition accounting, and the val ue of lease liabilities and corresponding right of use assets. Although these and other estimates and assumptions are based on the best available information, actual results could be different from these estimates.
Principles of Consolidation	Principles of Consolidation The Company consolidates the assets, liabilities, and operating results of its wholly-owned and majority-owned subsidiaries, as well as subsidiaries in which we hold a controlling financial interest as of the financial statement date. In most cases, a controlling financial interest reflects ownership of a majority of the voting interests. We consolidate a variable interest entity ( VIE ) when we possess both the power to direct the activities of the VIE that most significantly impact its economic performance and we are either obligated to absorb the losses that could potentially be significant to the VIE or we hold the right to receive benefits from the VIE that could potentially be significant to the VIE. All intercompany accounts and transactions have been eliminated in consolidation. Non-controlling interests in the Company’s subsidiaries are reported as a component of liabilities for mandatorily redeemable interests, temporary equity for contingently redeemable interests or permanent equity, separate from the Company’s equity. See Note 10 – Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries. Results of operations attributable to the non-controlling interests are included in the Company’s condensed consolidated statements of operations.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with original maturities of 90 days or less at the date of purchase. Cash equivalents consist primarily of exchange-traded money market funds. The Company is exposed to credit risk in the event of default by the financial institutions or the issuers of these investments to the extent the amounts on deposit or invested are in excess of amounts that are insured.
Earnings per Share	Earnings per Share The following table presents the calculation of basic and diluted income (loss) per share: For the three months ended December 31, For the six months ended December 31, (in thousands except per share amounts) 2022 2021 2022 2021 Numerator: Net income (loss) from continuing operations $ 29,693 $ ( 4,790 ) $ 20,190 $ ( 7,539 ) Less: net income (loss) attributable to non-controlling interest, continuing operations 18 ( 129 ) ( 1,554 ) ( 233 ) Numerator for basic EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc. $ 29,675 $ ( 4,661 ) $ 21,744 $ ( 7,306 ) Net income from discontinued operations 35 631 999 3,486 Less: net income attributable to non-controlling interest, discontinued operations 180 208 1,504 618 Numerator for basic EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc. $ ( 145 ) $ 423 $ ( 505 ) $ 2,868 Effect of dilutive securities: Interest expense associated with Convertible Notes, continuing operations $ 480 $ - $ 960 $ - Numerator for diluted EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities $ 30,155 $ ( 4,661 ) $ 22,704 $ ( 7,306 ) Numerator for diluted EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc. $ ( 145 ) $ 423 $ ( 505 ) $ 2,868 Denominator: Denominator for basic EPS - Weighted average shares of common stock outstanding 28,803 26,462 28,672 26,222 Effect of dilutive securities: Restricted stock 1,131 - 1,131 - Convertible Notes 10,652 - 10,652 - Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities 40,586 26,462 40,455 26,222 Basic income (loss) per share from: Continuing operations $ 1.03 $ ( 0.18 ) $ 0.76 $ ( 0.28 ) Discontinued operations ( 0.01 ) 0.02 ( 0.02 ) 0.11 Basic net income (loss) per share $ 1.02 $ ( 0.16 ) $ 0.74 $ ( 0.17 ) Diluted income (loss) per share from: Continuing operations $ 0.74 $ ( 0.18 ) $ 0.56 $ ( 0.28 ) Discontinued operations - 0.02 $ ( 0.01 ) 0.11 Diluted net income (loss) per share $ 0.74 $ ( 0.16 ) $ 0.55 $ ( 0.17 ) As of December 31, 2022, the Company had 1,512,222 potential shares of common stock issuable upon the exercise of stock options that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive. As of December 31, 2021 , the Company had 10,139,031 shares of common stock issuable upon the conversion of Convertible Notes and 2,778,261 potential shares issuable upon the exercise of stock options and vesting of restricted stock units and restricted stock awards that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive. As of December 31, 2022 and 2021, the Company had an aggregate of 1,108,892 and 153,451 issued shares, respectively, that are subject to forfeiture by the employee at a nominal price if service milestones are not met. The Company does not account for such shares as being outstanding for accounting purposes since they are unvested and subject to forfeiture.
Recently Adopted and Issued Accounting Standards	Recently Issued Accounting Standards Current Expected Credit Losses. In June 2016, the FASB issued Accounting Standards Update ( ASU ) 2016-13, Financial Instruments – Credit Losses (Topic 326) , which changes the impairment model for financial instruments, including trade receivables from an incurred loss method to a new forward looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical experience, current information and reasonable and supportable forecasts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the potential impact that the adoption of this ASU will have on its consolidated financial statements. Reference Rate Reform. In March 2020 and January 2021, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which provide optional expedients and exceptions for applying US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate ( LIBOR ) if certain criteria are met. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , extending the sunset date under Topic 848 from December 31, 2022 to December 31, 2024 to align the temporary accounting relief guidance with the expected LIBOR cessation date of June 30, 2023. The Company is evaluating the potential impact that the adoption of these ASUs will have on its consolidated financial statements.
Revenue	Revenue The revenues from each major source are summarized in the following table: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Management fees $ 1,381 $ 895 $ 2,683 $ 1,771 Property management fees 278 - 552 - Administration and service fees 220 126 504 233 Total revenues $ 1,879 $ 1,021 $ 3,739 $ 2,004 The Company recognizes investment management revenue at amounts that reflect the consideration to which it expects to be entitled in exchange for providing services to its customers. Investment management revenue primarily consists of fees based on a percentage of assets under management, fees based on the performance of managed assets, and administration and service fees. Fees are based on agreements with each investment product and may be terminated at any time by either party subject to the specific terms of each respective agreement. Management Fees The Company earns management fees based on the investment management agreements GECM has with GECC, Monomoy Properties UpREIT, LLC, the operating partnership of Monomoy Properties REIT, LLC ( Monomoy UpREIT ) and other private funds managed by GECM (collectively, the Funds ). The performance obligation is satisfied and management fee revenue is recognized over time as the services are rendered, since the Funds simultaneously receive and consume the benefits provided as GECM performs services. Management fee rates range from 1.0 % to 1.5 % of the management fee assets specified within each agreement and are calculated and billed in arrears of the period, either monthly or quarterly. Property Management Fees Under the Monomoy UpREIT investment management agreement, GECM is also entitled to 4.0 % of rent collected. These fees are collected monthly in arrears. Property management fee revenue is recognized over time as the services are provided. Incentive Fees The Company earns incentive fees based on the investment management agreements GECM has with GECC and Monomoy Properties II, LLC (a feeder fund of Monomoy UpREIT). Where an investment management agreement includes both management fees and incentive fees, the performance obligation is considered to be a single obligation for both fees. Incentive fees are variable consideration associated with the investment management agreements. Incentive fees are earned based on investment performance during the period, subject to the achievement of minimum return levels or high-water marks, in accordance with the terms of the respective investment management agreements. Incentive fees are typically 20 % of the performance-based metric specified within each agreement. As of December 31, 2022 , there are no incentive fees earned under the investment management agreements for which it was probable that a significant reversal of revenue would not occur. Administration and Service Fees The Company earns administration fees based on the administration agreement GECM has with GECC whereby the investment vehicles reimburse GECM for costs incurred in performing certain administrative functions. This revenue is recognized over time as the services are performed. Administration fees are billed quarterly in arrears, which is consistent with the timing of the delivery of services and reflect agreed upon rates for the services provided. The services are accounted for as a single performance obligation for each investment vehicle that is a series of distinct services with substantially the same pattern of transfer as the services are provided on a daily basis.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Earnings Per Share, Basic and Diluted	The following table presents the calculation of basic and diluted income (loss) per share: For the three months ended December 31, For the six months ended December 31, (in thousands except per share amounts) 2022 2021 2022 2021 Numerator: Net income (loss) from continuing operations $ 29,693 $ ( 4,790 ) $ 20,190 $ ( 7,539 ) Less: net income (loss) attributable to non-controlling interest, continuing operations 18 ( 129 ) ( 1,554 ) ( 233 ) Numerator for basic EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc. $ 29,675 $ ( 4,661 ) $ 21,744 $ ( 7,306 ) Net income from discontinued operations 35 631 999 3,486 Less: net income attributable to non-controlling interest, discontinued operations 180 208 1,504 618 Numerator for basic EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc. $ ( 145 ) $ 423 $ ( 505 ) $ 2,868 Effect of dilutive securities: Interest expense associated with Convertible Notes, continuing operations $ 480 $ - $ 960 $ - Numerator for diluted EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities $ 30,155 $ ( 4,661 ) $ 22,704 $ ( 7,306 ) Numerator for diluted EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc. $ ( 145 ) $ 423 $ ( 505 ) $ 2,868 Denominator: Denominator for basic EPS - Weighted average shares of common stock outstanding 28,803 26,462 28,672 26,222 Effect of dilutive securities: Restricted stock 1,131 - 1,131 - Convertible Notes 10,652 - 10,652 - Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities 40,586 26,462 40,455 26,222 Basic income (loss) per share from: Continuing operations $ 1.03 $ ( 0.18 ) $ 0.76 $ ( 0.28 ) Discontinued operations ( 0.01 ) 0.02 ( 0.02 ) 0.11 Basic net income (loss) per share $ 1.02 $ ( 0.16 ) $ 0.74 $ ( 0.17 ) Diluted income (loss) per share from: Continuing operations $ 0.74 $ ( 0.18 ) $ 0.56 $ ( 0.28 ) Discontinued operations - 0.02 $ ( 0.01 ) 0.11 Diluted net income (loss) per share $ 0.74 $ ( 0.16 ) $ 0.55 $ ( 0.17 )

Forest Note and Transactions _2

Forest Note and Transactions with JPM (Tables)	6 Months Ended
	Dec. 31, 2022
Note And Transaction [Abstract]
Summary of Gain on Sale of Controlling Interests in Forest	The following table shows calculation of the recorded gain on sale of controlling interest in subsidiary of $ 10.5 million on the Company's condensed consolidated statements of operations for the three and six months ended December 31, 2022: (in thousands) December 30, 2022 Cash proceeds $ 18,409 Fair value of retained 19 % non-controlling interest in Forest 2,128 Carrying value of non-controlling interest prior to sale 2,120 22,657 Less: Carrying value of net assets disposed 12,133 Gain on sale of controlling interest in subsidiary $ 10,524
Schedule of Loss Before Income Taxes of Forest As well As Loss Before Income Taxes of Forest Attributable to Great Elm Group, Inc	The following table shows loss before income taxes of Forest, as well as loss before income taxes of Forest attributable to Great Elm Group, Inc.: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Loss before income taxes ( 891 ) ( 312 ) ( 2,679 ) ( 960 ) Loss before income taxes attributable to Great Elm Group, Inc. ( 909 ) ( 151 ) ( 1,133 ) ( 782 )

Assets and Liabilities Held f_2

Assets and Liabilities Held for Sale and Discontinued Operations (Tables)	6 Months Ended
	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Reconciliation of Net Income from Discontinued Operations	The following table provides a reconciliation of the Company’s net income from discontinued operations presented in the condensed consolidated statements of operations: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Discontinued operations: Durable medical equipment sales and services revenue $ 10,546 $ 10,277 $ 21,574 $ 20,353 Durable medical equipment rental income 6,183 5,451 11,874 10,930 Net revenue $ 16,729 15,728 33,448 31,283 Cost of durable medical equipment sold and services ( 4,314 ) ( 4,309 ) ( 8,654 ) ( 8,369 ) Cost of durable medical equipment rentals ( 2,213 ) ( 1,734 ) ( 4,263 ) ( 3,584 ) Durable medical equipment other operating expenses ( 8,548 ) ( 8,413 ) ( 17,519 ) ( 14,569 ) Depreciation and amortization ( 396 ) ( 443 ) ( 783 ) ( 896 ) Transaction costs ( 1,439 ) ( 127 ) ( 1,439 ) ( 224 ) Interest expense ( 24 ) ( 69 ) ( 46 ) ( 138 ) Loss on distinguishment of debt - - ( 23 ) - Other income (expense), net 9 ( 14 ) 10 2 (Loss) income before income taxes from discontinued operations ( 196 ) 619 731 3,505 Income tax benefit (expense) 231 12 268 ( 19 ) Net income from discontinued operations $ 35 $ 631 $ 999 $ 3,486
Reconciliation of Assets and Liabilities Held-for-Sale	The following table provides a reconciliation of the assets and liabilities held for sale presented in the condensed consolidated balance sheets as of December 31, 2022 and June 30, 2022: (in thousands) December 31, 2022 June 30, 2022 Cash and cash equivalents $ 820 $ 1,314 Accounts receivable 5,531 5,867 Inventories 925 898 Prepaid and other current assets 265 385 Property and equipment, net 395 - Equipment held for rental, net 7,724 - Identifiable intangible assets, net 5,315 - Goodwill 52,463 - Right of use assets 3,029 - Other assets 162 - Current assets held for sale $ 76,629 $ 8,464 Property and equipment, net $ - $ 521 Equipment held for rental, net - 7,504 Identifiable intangible assets, net - 5,921 Goodwill - 52,463 Right of use assets - 2,989 Other assets - 163 Non-current assets held for sale $ - $ 69,561 Accounts payable $ 5,649 $ 6,030 Accrued expenses and other liabilities 3,526 3,544 Deferred revenue 1,022 1,218 Current portion of lease liabilities 1,260 1,218 Current portion of equipment financing debt 4,365 2,993 Lease liabilities, net of current portion 1,911 - Redeemable preferred stock of subsidiaries 314 - Current liabilities held for sale $ 18,047 $ 15,003 Lease liabilities, net of current portion $ - $ 1,903 Redeemable preferred stock of subsidiaries - 648 Non-current liabilities held for sale $ - $ 2,551

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Summary of Major Source of Revenue	The revenues from each major source are summarized in the following table: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Management fees $ 1,381 $ 895 $ 2,683 $ 1,771 Property management fees 278 - 552 - Administration and service fees 220 126 504 233 Total revenues $ 1,879 $ 1,021 $ 3,739 $ 2,004

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Dec. 31, 2022
Managed Investment Products
Schedule of Activity and Outstanding Balances Related Party and Company	The following tables summarize activity and outstanding balances between the managed investment products and the Company: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 Net realized and unrealized loss on investments $ ( 2,048 ) $ ( 2,249 ) $ ( 8,845 ) $ ( 2,364 ) Net realized and unrealized gain (loss) on investments of Consolidated Fund - 194 ( 16 ) 5 Dividend income 1,281 548 2,661 1,102 (in thousands) December 31, 2022 June 30, 2022 Dividends receivable $ 300 $ 612 Investment management revenues receivable 1,141 1,241 Receivable for reimbursable expenses paid 877 592 Receivables from managed funds $ 2,318 $ 2,445

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis	The assets and liabilities measured at fair value on a recurring and no n-recurring basis are summarized in the tables below: Fair Value as of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 13,108 $ - $ 26,501 $ 39,609 Total assets within the fair value hierarchy $ 13,108 $ - $ 26,501 $ 39,609 Investments valued at net asset value $ 14,927 Total assets $ 54,536 Liabilities: Contingent consideration liability $ - $ - $ 1,180 $ 1,180 Total liabilities $ - $ - $ 1,180 $ 1,180 Fair Value as of June 30, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 27,678 $ - $ - $ 27,678 Equity investments of Consolidated Fund 1,797 - - 1,797 Total assets within the fair value hierarchy $ 29,475 $ - $ - $ 29,475 Investments valued at net asset value $ 20,364 Total assets $ 49,839 Liabilities: Contingent consideration liability $ - $ - $ 1,120 $ 1,120 Total liabilities $ - $ - $ 1,120 $ 1,120
Reconciliation of Changes in Contingent Consideration, Level 3 Liability	The following is a reconciliation of changes in contingent consideration, a Level 3 liability: (in thousands) For the three months ended December 31, 2022 For the six months ended December 31, 2022 Beginning balance $ 1,050 $ 1,120 Change in fair value 130 60 Ending balance $ 1,180 $ 1,180

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Dec. 31, 2022
Debt Instrument [Line Items]
Schedule of Related Party Borrowings of Subsidiaries	Related party borrowings of the Company's subsidiaries are summarized in the following table: (in thousands) Borrower December 31, 2022 June 30, 2022 Seller Note GECM $ 3,661 $ 6,270 Forest Note FM Acquisition 19,700 - Total principal $ 23,361 $ 6,270 Unamortized debt issuance cost - - Total related party notes payable 23,361 6,270 Less current portion of related party notes payable ( 23,361 ) - Related party notes payable, net of current portion $ - $ 6,270
Schedule of Subsidiaries' Other Outstanding Borrowings	The Company’s and subsidiaries’ other outstanding borrowings are summarized in the following table: (in thousands) Borrower December 31, 2022 June 30, 2022 GEGGL Notes GEG $ 26,945 $ 26,945 Total principal $ 26,945 $ 26,945 Unamortized debt discounts and issuance costs ( 1,278 ) ( 1,413 ) Total other outstanding borrowings 25,667 25,532 Less current portion of other outstanding borrowings - - Other outstanding borrowings, net of current portion $ 25,667 $ 25,532
Schedule of Aggregate Future Required Principal Debt Repayments	The Company’s aggregate future required principal debt repayments are summarized in the following table: (in thousands) Principal Due For the six months ending June 30, 2023 $ 19,700 For the year ending June 30, 2024 3,661 For the year ending June 30, 2025 - For the year ending June 30, 2026 - For the year ending June 30, 2027 26,945 Thereafter - Total $ 50,306

Non-Controlling Interests and_2

Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries (Tables)	6 Months Ended
	Dec. 31, 2022
Noncontrolling Interest [Abstract]
Summary of Non-controlling Interests Balance on Condensed Consolidated Balance Sheet	The following table summarizes the non-controlling interest balances on the condensed consolidated balance sheets: (in thousands) December 31, 2022 June 30, 2022 HC LLC Temporary equity 2,977 2,225 Permanent equity 2,977 2,225 Total HC LLC 5,954 4,450 Consolidated Fund Permanent equity - 642 Forest Permanent equity - 3,666 Total non-controlling interests $ 5,954 $ 8,758
Summary of Non-controlling Interests Balance on Condensed Consolidated Statements of Operations	The following table summarizes the net income (loss) attributable to the non-controlling interests on the condensed consolidated statements of operations: For the three months ended December 31, For the six months ended December 31, (in thousands) 2022 2021 2022 2021 HC LLC Temporary equity 90 104 752 309 Permanent equity 90 104 752 309 Total HC LLC 180 208 1,504 618 GEC GP Permanent equity - ( 2 ) - ( 4 ) Consolidated Fund Permanent equity - 34 ( 8 ) ( 51 ) Forest Permanent equity 18 ( 161 ) ( 1,546 ) ( 178 ) Total net income (loss) attributable to non-controlling interest $ 198 $ 79 $ ( 50 ) $ 385 HC LLC – Non-controlling interest classified as temporary equity The Company issued a 9.95 % common stock equity ownership in HC LLC. The holder of the interest has board observer rights for the HC LLC board of directors, but no voting rights. HC LLC has the right of first offer if the holder desires to sell the security and in the event of a sale of HC LLC, the holder must sell their securities (drag along rights) and has the right to participate in sales of HC LLC securities (tag along rights). In addition, upon the seventh anniversary of issuance date, if (i) the holder owns at least 50% of the common shares issued to it at the closing of the transaction, (ii) an initial public offering of HC LLC has not commenced and (iii) the holder has not had an earlier opportunity to sell its shares at their fair market value, the holder has the right to request a marketing process for a sale of HC LLC and has the right to put its common shares to HC LLC at the price for such shares implied by such marketing process. The Company also has the right to call the holder’s common shares at such price. The holder of the non-controlling interest is entitled to participate in earnings of HC LLC and is not required to fund losses. As the redemption is contingent upon future events outside of the Company’s control which are not probable, the Company has classified the non-controlling interest as temporary equity and its fair value on the date of issuance, adjusted for any earnings in HC LLC. Refer to Note 14 - Subsequent Events for details on the Sale of HC LLC to Quipt on January 3, 2023. HC LLC – Non-controlling interest classified as permanent equity The Company issued a 9.95 % common stock equity ownership in HC LLC. The rights are consistent with the non-controlling interest classified as temporary equity, other than the holder not having a contingent put right. Accordingly, the Company classified the non-controlling interest as permanent equity at its fair value on the date of issuance, adjusted for any earnings in HC LLC. Refer to Note 14 - Subsequent Events for details on the Sale of HC LLC to Quipt on January 3, 2023.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Activity of Restricted Stock Awards and Restricted Stock Units	The activity of the Company’s restricted stock awards and restricted stock units for the six months ended December 31, 2022 was as follows: Restricted Stock Awards and Restricted Stock Units Restricted Stock (in thousands) Weighted Average Grant Date Fair Value Outstanding at June 30, 2022 1,312 $ 1.79 Granted 400 2.19 Vested ( 411 ) 2.13 Forfeited ( 3 ) 2.50 Outstanding at December 31, 2022 1,298 $ 1.80
Summary of Option Activity	The following table summarizes the Company’s option award activity as of and during the six months ended December 31, 2022: Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2022 2,134 $ 3.68 3.34 $ - Options granted 125 3.60 - - Forfeited, cancelled or expired ( 747 ) 3.60 - - Outstanding at December 31, 2022 1,512 $ 3.72 4.42 $ - Exercisable at December 31, 2022 1,439 $ 3.70 4.46 $ - Vested and expected to vest as of December 31, 2022 1,512 $ 3.72 4.42 $ -

Organization (Details)

Organization (Details)	6 Months Ended
	Dec. 31, 2022 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business operating segments	1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - shares	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Significant Accounting Policies [Line Items]
Potentially dilutive shares excluded from diluted loss per share	1,512,222
Number of shares subject to forfeiture	1,108,892	153,451
Common Stock Issuable upon Conversion of Convertible Notes
Significant Accounting Policies [Line Items]
Potentially dilutive shares excluded from diluted loss per share		10,139,031
Common Stock Issuable upon Exercise of Stock Options and Vesting of Restricted Stock Units and Restricted Stock Awards
Significant Accounting Policies [Line Items]
Potentially dilutive shares excluded from diluted loss per share		2,778,261

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Net income (loss) from continuing operations	$ 29,693	$ (4,790)	$ 20,190	$ (7,539)
Less: net income (loss) attributable to non-controlling interest, continuing operations	18	(129)	(1,554)	(233)
Numerator for basic EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc	29,675	(4,661)	21,744	(7,306)
Net income from discontinued operations	35	631	999	3,486
Less: net income attributable to non-controlling interest, discontinued operations	180	208	1,504	618
Numerator for basic EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc.	(145)	423	(505)	2,868
Effect of dilutive securities:
Interest expense associated with Convertible Notes, continuing operations	480		960
Numerator for diluted EPS - Net income (loss) from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities	30,155	(4,661)	22,704	(7,306)
Numerator for diluted EPS - Net (loss) income from discontinued operations, attributable to Great Elm Group, Inc.	$ (145)	$ 423	$ (505)	$ 2,868
Denominator:
Denominator for basic EPS - Weighted average shares of common stock outstanding	28,803	26,462	28,672	26,222
Effect of dilutive securities:
Restricted stock	1,131		1,131
Convertible Notes	10,652		10,652
Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities	40,586	26,462	40,455	26,222
Basic income (loss) per share from:
Continuing operations	$ 1.03	$ (0.18)	$ 0.76	$ (0.28)
Discontinued operations	(0.01)	0.02	(0.02)	0.11
Basic net income (loss) per share	1.02	(0.16)	0.74	(0.17)
Diluted income (loss) per share from:
Continuing operations	0.74	(0.18)	0.56	(0.28)
Discontinued operations		0.02	(0.01)	0.11
Diluted net income (loss) per share	$ 0.74	$ (0.16)	$ 0.55	$ (0.17)

Forest Note and Transactions _3

Forest Note and Transactions with JPM - Additional Information (Details) - USD ($)			3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 29, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Note And Transactions [Line Items]
Debt Instrument, Face Amount			$ 36,987,000		$ 36,987,000		$ 36,085,000
Interest Expense			$ 1,955,000	$ 1,293,000	$ 3,929,000	$ 2,586,000
Common stock, par value			$ 0.001		$ 0.001		$ 0.001
Gain on disposal of subsidiary			$ 10,524,000		$ 10,524,000
Stock Purchase Agreement
Note And Transactions [Line Items]
Common stock, par value	$ 0.001
Sale of shares of common stock	61
Series A-1 Preferred Interests
Note And Transactions [Line Items]
Business acquisition value of shares acquired		$ 3,300,000
Series A-2 Preferred Interests
Note And Transactions [Line Items]
Business acquisition value of shares acquired		34,000,000
Forest Investments, Inc. (Forest)
Note And Transactions [Line Items]
Unrealized gain on investment			24,400,000		24,400,000
The Forest Note
Note And Transactions [Line Items]
Debt Instrument, Face Amount		$ 38,100,000
Debt instrument maturity date		Mar. 01, 2023
Interest rate		9%
Partial repayment of debt instrument	$ 18,400,000
Remaining balance of debt instrument to be paid inclusive of accrued interest			19,700		19,700
Interest Expense			$ 10,000		$ 10,000
The Forest Note | Stock Purchase Agreement
Note And Transactions [Line Items]
Cash Proceeds	18,409,000
Fair value of retained 19% non-controlling interest in Forest	2,128,000
Gain on disposal of subsidiary	$ 10,524,000
The Forest Note | Forest Investments, Inc. (Forest) | Stock Purchase Agreement
Note And Transactions [Line Items]
Percentage of issued and outstanding share	61%
Percentage of ownership interest issued to former owner/holder	19%
Put Option | The Forest Note | Forest Investments, Inc. (Forest) | Stock Purchase Agreement
Note And Transactions [Line Items]
Percentage of ownership interest issued to former owner/holder	19%

Forest Note and Transactions _4

Forest Note and Transactions with JPM - Summary of Sale of Controlling Interests in Forest (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Dec. 30, 2022	Dec. 31, 2022	Dec. 31, 2022	Jun. 30, 2022
Note And Transactions [Line Items]
Carrying Value Of Non-Controlling Interest Prior To Sale		$ 2,977	$ 2,977	$ 6,533
Gain on sale of controlling interest in subsidiary		$ 10,524	$ 10,524
Stock Purchase Agreement | The Forest Note
Note And Transactions [Line Items]
Cash Proceeds	$ 18,409
Fair value of retained 19% non-controlling interest in Forest	2,128
Carrying Value Of Non-Controlling Interest Prior To Sale	2,120
Sale of controlling interest in subsidiary	22,657
Less: Carrying value of net assets disposed	12,133
Gain on sale of controlling interest in subsidiary	$ 10,524

Forest Note and Transactions _5

Forest Note and Transactions with JPM - Summary of Sale of Controlling Interests in Forest (Parenthetical) (Details) - Forest Investments, Inc. (Forest)	Dec. 31, 2022	Dec. 30, 2022
Note And Transactions [Line Items]
Percentage of ownership interest issued to former owner/holder	0%
Stock Purchase Agreement | The Forest Note
Note And Transactions [Line Items]
Percentage of ownership interest issued to former owner/holder		19%

Forest Note and Transactions _6

Forest Note and Transactions with JPM - Schedule of Loss Before Income Taxes of Forest As well As Loss Before Income Taxes of Forest Attributable to Great Elm Group, Inc (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Note And Transactions [Line Items]
Loss before income taxes	$ (891)	$ (312)	$ (2,679)	$ (960)
Loss before income taxes attributable to Great Elm Group, Inc.	$ (909)	$ (151)	$ (1,133)	$ (782)

Assets and Liabilities Held f_3

Assets and Liabilities Held for Sale and Discontinued Operations - Additional Information (Details)	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Outstanding membership interest	100%

Assets and Liabilities Held f_4

Assets and Liabilities Held for Sale and Discontinued Operations - Reconciliation of Net Income from Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Discontinued operations:
Net revenue	$ 16,729	$ 15,728	$ 33,448	$ 31,283
Durable medical equipment other operating expenses	(8,548)	(8,413)	(17,519)	(14,569)
Depreciation and amortization	(396)	(443)	(783)	(896)
Transaction costs	(1,439)	(127)	(1,439)	(224)
Interest expense	(24)	(69)	(46)	(138)
Loss on distinguishment of debt			(23)
Other income (expense), net	9	(14)	10	2
(Loss) income before income taxes from discontinued operations	(196)	619	731	3,505
Income tax benefit (expense)	231	12	268	(19)
Net income from discontinued operations	35	631	999	3,486
Durable Medical Equipment Sales and Services Revenue
Discontinued operations:
Net revenue	10,546	10,277	21,574	20,353
Cost of durable goods sold and services	(4,314)	(4,309)	(8,654)	(8,369)
Durable Medical Equipment Rental Income
Discontinued operations:
Net revenue	6,183	5,451	11,874	10,930
Cost of durable goods sold and services	$ (2,213)	$ (1,734)	$ (4,263)	$ (3,584)

Assets and Liabilities Held f_5

Assets and Liabilities Held for Sale and Discontinued Operations - Reconciliation of Assets and Liabilities Held-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]
Cash and cash equivalents	$ 820	$ 1,314
Accounts Receivable	5,531	5,867
Inventories	925	898
Prepaid and other current assets	265	385
Property and equipment, net	395
Equipment held for rental, net	7,724
Identifiable intangible assets, net	5,315
Goodwill	52,463
Right of use assets	3,029
Other assets	162
Current assets held for sale	76,629	8,464
Property and equipment, net		521
Equipment held for rental, net		7,504
Identifiable intangible assets, net		5,921
Goodwill		52,463
Right of use assets		2,989
Other assets		163
Non-current assets held for sale		69,561
Accounts payable	5,649	6,030
Accrued expenses and other liabilities	3,526	3,544
Deferred revenue	1,022	1,218
Current portion of lease liabilities	1,260	1,218
Current portion of equipment financing debt	4,365	2,993
Lease liabilities, net of current portion	1,911
Redeemable preferred stock of subsidiaries	314
Current liabilities held for sale	$ 18,047	15,003
Lease liabilities, net of current portion		1,903
Redeemable preferred stock of subsidiaries		648
Non-current liabilities held for sale		$ 2,551

Revenue - Summary of Major Sour

Revenue - Summary of Major Source of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Revenues	$ 1,879	$ 1,021	$ 3,739	$ 2,004
Management Fees
Disaggregation Of Revenue [Line Items]
Revenues	1,381	895	2,683	1,771
Property Management Fees
Disaggregation Of Revenue [Line Items]
Revenues	278		552
Administration and Service Fees
Disaggregation Of Revenue [Line Items]
Revenues	$ 220	$ 126	$ 504	$ 233

Revenue - Additional Informatio

Revenue - Additional Information (Details)	6 Months Ended
	Dec. 31, 2022 USD ($)
Disaggregation Of Revenue [Line Items]
Incentive fee earned as percentage on investment performance	20%
Accrued incentive fees as per the terms of investment management agreements	$ 0
Minimum
Disaggregation Of Revenue [Line Items]
Percentage of management fee rates	1%
Maximum
Disaggregation Of Revenue [Line Items]
Percentage of management fee rates	1.50%
Funds
Disaggregation Of Revenue [Line Items]
Percentage entitled of rent collected	4%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 03, 2023	Oct. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Consolidated funds			$ 0		$ 0
GECC
Related Party Transaction [Line Items]
Percentage of ownership interest (as a percent)			20.60%		20.60%
Number of sharers held in subsidiary			1,569,787		1,569,787
Imperial Capital, LLC
Related Party Transaction [Line Items]
Retainer fee paid		$ 100,000
Imperial Capital, LLC | Subsequent event
Related Party Transaction [Line Items]
Success fee paid	$ 700,000
Shared Personnel and Reimbursement Agreement | Jason W. Reese | Investment Management Expenses
Related Party Transaction [Line Items]
Costs incurred under agreement			$ 300,000	$ 100,000	$ 700,000	$ 300,000

Related Party Transactions - Sc

Related Party Transactions - Schedule of Activity and Outstanding Balances Between Managed Investment Products and Company (Details) - Managed Investment Products - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Related Party Transaction [Line Items]
Net realized and unrealized loss on investments	$ (2,048)	$ (2,249)	$ (8,845)	$ (2,364)
Net realized and unrealized gain (loss) on investments of Consolidated Fund		194	(16)	5
Dividend income	1,281	$ 548	2,661	$ 1,102
Dividends receivable	300		300		$ 612
Investment management revenues receivable	1,141		1,141		1,241
Receivable for reimbursable expenses paid	877		877		592
Receivables from managed funds	$ 2,318		$ 2,318		$ 2,445

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Assets:
Total assets	$ 54,536	$ 49,839
Liabilities:
Contingent consideration liability	1,180	1,120
Total liabilities	1,180	1,120
Fair Value, Inputs, Level 1
Assets:
Equity investments	13,108	27,678
Total assets	13,108	29,475
Liabilities:
Contingent consideration liability	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 1 | Consolidated Fund
Assets:
Equity investments		1,797
Fair Value, Inputs, Level 2
Assets:
Equity investments	0	0
Total assets	0	0
Liabilities:
Contingent consideration liability	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 | Consolidated Fund
Assets:
Equity investments		0
Fair Value, Inputs, Level 3
Assets:
Equity investments	26,501	0
Total assets	26,501	0
Liabilities:
Contingent consideration liability	1,180	1,120
Total liabilities	1,180	1,120
Fair Value, Inputs, Level 3 | Consolidated Fund
Assets:
Equity investments		0
Fair Value, Inputs, Level 1, 2 and 3
Assets:
Equity investments	39,609	27,678
Total assets	39,609	29,475
Fair Value, Inputs, Level 1, 2 and 3 | Consolidated Fund
Assets:
Equity investments		1,797
Fair Value Measured at Net Asset Value Per Share
Assets:
Investments valued at net asset value	$ 14,927	$ 20,364

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Changes in Contingent Consideration, Level 3 Liability (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Beginning balance	$ 1,050	$ 1,120
Change in fair value	130	60
Ending balance	$ 1,180	$ 1,180

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details)	6 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2022 USD ($)	May 04, 2022 USD ($)
Fair value assets level 1 to level 2 transfers	$ 0	$ 0
Fair value assets level 2 to level 1 transfers	0	0
Fair value asset transfers into level 3	0	0
Fair value asset transfers out of level 3	0	0
Fair value liabilities level 1 to level 2 transfers	0	0
Fair value liabilities level 2 to level 1 transfers	0	0
Fair value liability transfers into level 3	0	0
Fair value liability transfers out of level 3	$ 0	$ 0
Notice period for annually allowable redemptions	90 days
Capped percentage of net asset value	5%
Lockup period from date of investment	1 year
Monomoy Properties REIT, LLC
Maximum additional consideration payable				$ 2,000,000
Contingent consideration liability	$ 1,200,000		$ 1,100,000
Monomoy Properties REIT, LLC | Volatility
Contingent consideration, fair value estimation	0.202		0.196
Monomoy Properties REIT, LLC | Discount Rate
Contingent consideration, fair value estimation	0.0825		0.065

Borrowings - Schedule of Relate

Borrowings - Schedule of Related Party Borrowings of Subsidiaries (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Debt Instrument [Line Items]
Less current portion of related party notes payable	$ (23,361)
Related party notes payable, net of current portion		$ 6,270
Related Party Borrowings Subsidiaries
Debt Instrument [Line Items]
Total principal	23,361	6,270
Total related party notes payable	23,361	6,270
Less current portion of related party notes payable	(23,361)
Related party notes payable, net of current portion		6,270
Seller Note | GECM | Related Party Borrowings Subsidiaries
Debt Instrument [Line Items]
Total principal	3,661	$ 6,270
Forest Note | FM Acquisition | Related Party Borrowings Subsidiaries
Debt Instrument [Line Items]
Total principal	$ 19,700

Borrowings - Schedule of Subsid

Borrowings - Schedule of Subsidiaries' Other Outstanding Borrowings (Details) - Subsidiaries Other Outstanding Borrowings - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Debt Instrument [Line Items]
Total principal	$ 26,945	$ 26,945
Unamortized debt discounts and issuance costs	(1,278)	(1,413)
Total other outstanding borrowings	25,667	25,532
Other outstanding borrowings, net of current portion	25,667	25,532
GEGGL Notes | GEG
Debt Instrument [Line Items]
Total principal	$ 26,945	$ 26,945

Borrowings - Additional Informa

Borrowings - Additional Information (Details)			1 Months Ended		3 Months Ended	6 Months Ended
	Jun. 09, 2022 USD ($)	May 04, 2022 USD ($)	Dec. 31, 2022 USD ($) shares	Aug. 31, 2022 USD ($) shares	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
Interest expense other borrowings					$ 700,000	$ 1,300,000
Aggregate principal amount			$ 36,987,000		$ 36,987,000	$ 36,987,000	$ 36,085,000
GECC
Debt Instrument [Line Items]
Debt instrument shares transferred upon settlement | shares			200,000	50,000
Principal settled amount			$ 2,000,000	$ 600,000
Seller Note | GECM | Investment Management Agreement and Certain Other Assets for Monomoy Properties REIT L.L.C.
Debt Instrument [Line Items]
Debt instrument, prepayment penalties		$ 0
Aggregate principal amount		$ 6,300,000
Interest rate		6.50%
Debt instrument maturity date		Aug. 04, 2023
GEGGL Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 26,900,000
Interest rate	7.25%
Debt instrument maturity date	Jun. 30, 2027
Notes issued in minimum denominations	$ 25
Net consolidated debt to equity ratio	2				1.22
GEGGL Notes | Underwriters' Over-allotment Option
Debt Instrument [Line Items]
Aggregate principal amount	$ 1,900,000
GEGGL Notes | Minimum
Debt Instrument [Line Items]
Notes issued in integral multiples	$ 25

Borrowings - Schedule of Aggreg

Borrowings - Schedule of Aggregate Future Required Principal Debt Repayments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
For the six months ending June 30, 2023	$ 19,700
For the year ending June 30, 2024	3,661
For the year ending June 30, 2027	26,945
Total	$ 50,306

Convertible Notes - Additional

Convertible Notes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Debt Instrument [Line Items]
Aggregate principal amount	$ 36,987		$ 36,987		$ 36,085
Interest expense	1,955	$ 1,293	3,929	$ 2,586
Convertible Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 37,000		$ 37,000		$ 36,100
Debt instrument maturity date			Feb. 26, 2030		Feb. 26, 2030
Issuance of notes to related parties.			$ 15,000
Accrued interest rate on notes payable	5%		5%
Notes payable, interest rate description			The Convertible Notes accrue interest at 5.0% per annum, payable semiannually in arrears on June 30 and December 31, commencing June 30, 2020, in cash or in kind at the option of the Company.
Number of common stock shares issuable upon conversion of each $1000 principal debt amount	288.0018		288.0018
Debt issuance costs			$ 1,200
Amortization period of convertible notes debt discount and debt issuance costs			10 years
Unamortized debt issuance costs	$ 800		$ 800		$ 900
Interest expense	$ 500	$ 400	1,000	$ 900
Matthew A. Drapkin | Convertible Notes
Debt Instrument [Line Items]
Issuance of notes to related parties.			6,900
Jason W. Reese | Convertible Notes
Debt Instrument [Line Items]
Issuance of notes to related parties.			7,400
Eric J Scheyer | Convertible Notes
Debt Instrument [Line Items]
Issuance of notes to related parties.			$ 700

Non-Controlling Interests and_3

Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries - Summary of Non-controlling Interests Balance on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021
Balance as of
Temporary equity	$ 2,977	$ 2,887	$ 2,225	$ 2,948	$ 2,844	$ 2,639
Total Non-controlling interests	5,954		8,758
Great Elm Healthcare, LLC (HC LLC)
Balance as of
Temporary equity	2,977		2,225
Permanent equity	2,977		2,225
Total	$ 5,954		4,450
Consolidated Fund
Balance as of
Permanent equity			642
Forest
Balance as of
Permanent equity			$ 3,666

Non-Controlling Interests and_4

Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries - Summary of Non-controlling Interests Balance on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Net income (loss)
Total net income (loss) attributable to non-controlling interest	$ 198	$ 79	$ (50)	$ 385
Great Elm Healthcare, LLC (HC LLC)
Net income (loss)
Temporary equity	90	104	752	309
Permanent equity	90	104	752	309
Total net income (loss) attributable to non-controlling interest	180	208	1,504	618
GEC GP
Net income (loss)
Permanent equity		(2)		(4)
Consolidated Fund
Net income (loss)
Permanent equity		34	(8)	(51)
Forest
Net income (loss)
Permanent equity	$ 18	$ (161)	$ (1,546)	$ (178)

Non-Controlling Interests and_5

Non-Controlling Interests and Redeemable Preferred Stock of Subsidiaries - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Dec. 29, 2020	Jul. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Minority Interest [Line Items]
Interest expense of non-cash interest related to amortization of discounts and debt issuance costs			$ 1,955	$ 1,293	$ 3,929	$ 2,586
GP Corp.
Minority Interest [Line Items]
Percentage of ownership interest issued to former owner/certain affiliates and employees			0%		0%
GESOF
Minority Interest [Line Items]
Remaining assets to non-controlling interests		$ 600
Ownership percentage							73.40%
Forest
Minority Interest [Line Items]
Percentage of ownership interest issued to former owner/certain affiliates and employees			0%		0%
Forest
Minority Interest [Line Items]
Percentage of common stock interest sold classified as permanent equity	20%
Exchange of common stock for noncontrolling interests	$ 2,700
Forest | Forest Preferred Stock Classified as Liability
Minority Interest [Line Items]
Redeemable preferred stock, shares	35,010
Redeemable preferred stock, face value per share	$ 1,000
Redeemable preferred stock, annual dividend rate	9%
Redeemable Preferred stock, redemption price per share	$ 1,000
Redeemable Preferred stock, redemption date	Dec. 29, 2027
Redeemable preferred stock redemption premium percentage minimum	0%
Redeemable preferred stock redemption premium percentage maximum	3%
Interest expense of non-cash interest related to amortization of discounts and debt issuance costs			$ 800	$ 800	$ 1,700	$ 1,700
HC LLC
Minority Interest [Line Items]
Description of non-controlling interest in subsidiaries upon seventh anniversary of issuance date					In addition, upon the seventh anniversary of issuance date, if (i) the holder owns at least 50% of the common shares issued to it at the closing of the transaction, (ii) an initial public offering of HC LLC has not commenced and (iii) the holder has not had an earlier opportunity to sell its shares at their fair market value, the holder has the right to request a marketing process for a sale of HC LLC and has the right to put its common shares to HC LLC at the price for such shares implied by such marketing process.
HC LLC | Corbel
Minority Interest [Line Items]
Percentage of indirect common stock equity interest issued			9.95%		9.95%
HC LLC | Valley Healthcare Group, LLC (VHG)
Minority Interest [Line Items]
Percentage of indirect common stock equity interest issued			9.95%		9.95%

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Awards and Restricted Stock Units - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Restricted Stock Awards
Stockholders Equity Note [Line Items]
Granted, shares	2,403		399,948
Restricted Stock Awards | Maximum
Stockholders Equity Note [Line Items]
Vesting period			3 years
Restricted Stock Awards | Minimum
Stockholders Equity Note [Line Items]
Vesting period			1 year
Restricted Stock Units
Stockholders Equity Note [Line Items]
Granted, shares	0	0	0	0

Stockholders' Equity - Activity

Stockholders' Equity - Activity of Restricted Stock Award (Details) - Restricted Stock - $ / shares	3 Months Ended	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2022
Shares
Beginning Balance		1,312,000
Granted	2,403	399,948
Vested		(411,000)
Forfeited		(3,000)
Ending Balance	1,298,000	1,298,000
Weighted average grant date fair value
Beginning Balance		$ 1.79
Granted		2.19
Vested		2.13
Forfeited		2.50
Ending Balance	$ 1.80	$ 1.80

Stockholders' Equity - Non-Empl

Stockholders' Equity - Non-Employee Director Deferred Compensation Plan - Additional Information (Details) - shares	1 Months Ended	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2022
Service-Based Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock awards, service conditions met		57,931
Deferred Compensation Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Deferred compensation, service period	3 years
Restricted stock units and restricted stock awards, deferred		167,939

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Option Activity (Details) - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Shares
Beginning Balance	2,134
Options granted	125
Forfeited, cancelled or expired	(747)
Ending Balance	1,512	2,134
Exercisable	1,439
Vested and expected to vest	1,512
Weighted average exercise price
Beginning Balance	$ 3.68
Options granted	3.60
Forfeited, cancelled or expired	3.60
Ending Balance	3.72	$ 3.68
Exercisable	3.70
Vested and expected to vest	$ 3.72
Weighted average remaining contractual term
Outstanding	4 years 5 months 1 day	3 years 4 months 2 days
Exercisable	4 years 5 months 15 days
Vested and expected to vest	4 years 5 months 1 day

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Employee Stock Option
Stockholders Equity Note [Line Items]
Stock-based compensation expense	$ 0.6	$ 1.1	$ 1.4	$ 1.7
Restricted Stock Awards and Stock Options
Stockholders Equity Note [Line Items]
Total unrecognized compensation cost	1.8		1.8
GECC Common Shares
Stockholders Equity Note [Line Items]
Stock issued during period, value			0.4
Stock issued during period value vested immediately			$ 0.1
Number of years issued shares vest annually on pro-rata basis			3 years
GECC Common Shares | Employees
Stockholders Equity Note [Line Items]
Stock-based compensation expense	$ 0.1		$ 0.2

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions		12 Months Ended
	Aug. 16, 2022	Jun. 30, 2022
Income Tax [Line Items]
Federal net operating loss carryforwards		$ 821
Federal net operating loss carryforwards retained		154
Expire From 2023 Through 2025
Income Tax [Line Items]
Federal net operating loss carryforwards retained		139
Fiscal Year 2018 or Later
Income Tax [Line Items]
Federal net operating loss carryforwards retained		$ 15
Inflation Reduction Act
Income Tax [Line Items]
Corporate alternative minimum tax	15%
Excise tax on repurchases of stock	1%
Minimum | Expire From 2023 Through 2025
Income Tax [Line Items]
Operating loss carryforwards expiration period		2023
Maximum | Expire From 2023 Through 2025
Income Tax [Line Items]
Operating loss carryforwards expiration period		2025

Subsequent events - Additional

Subsequent events - Additional Information (Details) - Subsequent event - USD ($) $ in Millions	Jan. 17, 2023	Jan. 03, 2023
Forest
Subsequent Event [Line Items]
Proceeds from sale of investments	$ 26.5
Common Stock | Quipt | QHM Holdings
Subsequent Event [Line Items]
Number of days volume weighted average price		20 days
Great Elm Healthcare, LLC (HC LLC) | Quipt | QHM Holdings
Subsequent Event [Line Items]
Business acquisition purchase price		$ 80
Business acquisition cash paid		72.8
Business acquisition indebtness assumed		5.2
Net proceeds from sale of subsidary		64.1
Great Elm Healthcare, LLC (HC LLC) | Quipt | The Forest Note | QHM Holdings
Subsequent Event [Line Items]
Repayment of notes payable		19.7
Great Elm Healthcare, LLC (HC LLC) | Common Stock | Quipt | QHM Holdings
Subsequent Event [Line Items]
Business acquisition equity interest issued		$ 2