Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
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 | 31,875,285 | |
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 | 3801 PGA Boulevard | |
Entity Address, Address Line Two | Suite 603 | |
Entity Address, City or Town | Palm Beach Gardens | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33410 | |
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 | |
Former Address | ||
Document Information [Line Items] | ||
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 | |
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 | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 44,085 | $ 60,165 |
Investments in marketable securities | 24,789 | 24,595 |
Investments, at fair value (cost $46,199 and $40,387, respectively) | 38,244 | 32,611 |
Prepaid and other current assets | 2,843 | 717 |
Real estate under development | 8,104 | 1,742 |
Assets of Consolidated Funds - Cash and cash equivalents | 5,414 | |
Assets of Consolidated Funds - Investments, at fair value (cost $8,353) | 8,561 | |
Assets of Consolidated Funds - Other assets | 233 | |
Total current assets | 136,673 | 123,138 |
Identifiable intangible assets, net | 11,300 | 12,115 |
Right-of-use assets | 230 | 497 |
Other assets | 150 | 143 |
Total assets | 148,353 | 135,893 |
Current liabilities: | ||
Accrued expenses and other current liabilities | 4,276 | 5,418 |
Payable for securities purchased | 4,914 | |
Current portion of lease liabilities | 183 | 359 |
Liabilities of Consolidated Funds - Payable for securities purchased | 267 | |
Liabilities of Consolidated Funds- accrued expenses and other | 124 | |
Total current liabilities | 10,990 | 7,377 |
Lease liabilities, net of current portion | 26 | 142 |
Long-term debt (face value $26,945) | 26,019 | 25,808 |
Convertible notes (face value $38,859 and $37,912, including $15,780 and $15,395 held by related parties, respectively) | 38,164 | 37,129 |
Other liabilities | 683 | 669 |
Total liabilities | 75,882 | 72,051 |
Commitments and Contingencies (Note 11) | ||
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 31,881,695 shares issued and 30,164,142 outstanding at March 31, 2024; and 30,651,047 shares issued and 29,546,655 outstanding at June 30, 2023 | 30 | 30 |
Additional paid-in-capital | 3,317,212 | 3,315,378 |
Accumulated deficit | (3,252,242) | (3,251,566) |
Total Great Elm Group, Inc. stockholders' equity | 65,000 | 63,842 |
Non-controlling interests | 7,471 | |
Total stockholders' equity | 72,471 | 63,842 |
Total liabilities and stockholders' equity | 148,353 | 135,893 |
Nonrelated Party | ||
Current liabilities: | ||
Accounts payable | 608 | 191 |
Related Party | ||
Current assets: | ||
Receivables from managed funds | 4,400 | 3,308 |
Current liabilities: | ||
Accounts payable | $ 618 | 1,409 |
Related party payables, net of current portion | $ 926 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Investments, cost basis | $ 46,199 | $ 40,387 |
Investments, cost basis | 8,353 | |
Long term debt, face value | 26,945 | 26,945 |
Convertible notes, face value | 38,859 | 37,912 |
Convertible notes payable to related party non-current | $ 15,780 | $ 15,395 |
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 | 31,881,695 | 30,651,047 |
Common stock, shares outstanding | 30,164,142 | 29,546,655 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | $ 2,787 | $ 1,898 | $ 8,916 | $ 5,637 |
Operating costs and expenses: | ||||
Investment management expenses | 2,733 | 2,593 | 8,334 | 6,893 |
Depreciation and amortization | 271 | 281 | 837 | 870 |
Selling, general and administrative | 1,630 | 1,893 | 5,738 | 5,441 |
Expenses of Consolidated Funds | 22 | 22 | 46 | |
Total operating costs and expenses | 4,656 | 4,767 | 14,931 | 13,250 |
Operating loss | (1,869) | (2,869) | (6,015) | (7,613) |
Dividends and interest income | 2,359 | 1,520 | 6,417 | 4,432 |
Net realized and unrealized gain (loss) on investments | (2,753) | 1,989 | 1,735 | 17,434 |
Net realized and unrealized gain (loss) on investments of Consolidated Funds | 131 | 245 | (16) | |
Interest and other income of Consolidated Funds | 323 | 451 | ||
Gain on sale of controlling interest in subsidiary | 10,524 | |||
Interest expense | (1,074) | (1,095) | (3,197) | (5,024) |
(Loss) income before income taxes from continuing operations | (2,883) | (455) | (364) | 19,737 |
Income tax benefit (expense) | (2) | |||
Net (loss) income from continuing operations | (2,883) | (455) | (364) | 19,735 |
Discontinued operations: | ||||
Net income from discontinued operations | 12,203 | 16 | 13,202 | |
Net (loss) income | (2,883) | 11,748 | (348) | 32,937 |
Less: net income (loss) attributable to non-controlling interest, continuing operations | 217 | 328 | (1,554) | |
Less: net income attributable to non-controlling interest, discontinued operations | 1,504 | |||
Net (loss) income attributable to Great Elm Group, Inc. | $ (3,100) | $ 11,748 | $ (676) | $ 32,987 |
Basic net income (loss) per share from: | ||||
Continuing operations | $ (0.1) | $ (0.02) | $ (0.02) | $ 0.74 |
Discontinued operations | 0.42 | 0.41 | ||
Basic net income (loss) per share | (0.1) | 0.4 | (0.02) | 1.15 |
Diluted net income (loss) per share from: | ||||
Continuing operations | (0.1) | (0.02) | (0.02) | 0.56 |
Discontinued operations | 0.42 | 0.29 | ||
Diluted net income (loss) per share | $ (0.1) | $ 0.4 | $ (0.02) | $ 0.85 |
Weighted average shares outstanding | ||||
Basic | 30,066 | 28,997 | 29,844 | 28,779 |
Diluted | 30,066 | 28,997 | 29,844 | 40,673 |
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, 2022 | $ 40,029 | $ 29 | $ 3,312,763 | $ (3,279,296) | $ 33,496 | $ 6,533 |
Beginning balance (in shares) at Jun. 30, 2022 | 28,507,000 | |||||
Beginning balance, Contingently redeemable non-controlling interest at Jun. 30, 2022 | 2,225 | |||||
Net income (loss) | (9,201) | (8,291) | (8,291) | (910) | ||
Net (loss) income, Contingently redeemable non-controlling interest | 662 | |||||
Distributions to non-controlling interests in Consolidated Funds | (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 income (loss) | 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 | 28,976,000 | |||||
Ending balance, Contingently redeemable non-controlling interest at Dec. 31, 2022 | 2,977 | |||||
Net income (loss) | 11,748 | 11,748 | 11,748 | |||
Redemption of non-controlling interests upon sale of controlling interest in subsidiary | (2,977) | (2,977) | ||||
Redemption of non-controlling interests upon sale of subsidiaries, contingently redeemable non-controlling interest | (2,977) | |||||
Issuance of common stock related to vesting of restricted stock (in shares) | 170,000 | |||||
Stock-based compensation | 564 | 564 | 564 | |||
Ending balance at Mar. 31, 2023 | 68,457 | $ 29 | 3,314,737 | (3,246,309) | 68,457 | |
Ending balance (in shares) at Mar. 31, 2023 | 29,146,000 | |||||
Beginning balance at Jun. 30, 2023 | $ 63,842 | $ 30 | 3,315,378 | (3,251,566) | 63,842 | |
Beginning balance (in shares) at Jun. 30, 2023 | 29,546,655 | 29,547,000 | ||||
Net income (loss) | $ 2,774 | 2,774 | 2,774 | |||
Issuance of common stock related to vesting of restricted stock (in shares) | 322,000 | |||||
Stock-based compensation | 705 | 705 | 705 | |||
Ending balance at Sep. 30, 2023 | 67,321 | $ 30 | 3,316,083 | (3,248,792) | 67,321 | |
Ending balance (in shares) at Sep. 30, 2023 | 29,869,000 | |||||
Net income (loss) | (239) | (350) | (350) | 111 | ||
Issuance of interests in Consolidated Funds | 6,900 | 6,900 | ||||
Issuance of common stock related to vesting of restricted stock (in shares) | 181,000 | |||||
Stock-based compensation | 625 | 625 | 625 | |||
Ending balance at Dec. 31, 2023 | 74,607 | $ 30 | 3,316,708 | (3,249,142) | 67,596 | 7,011 |
Ending balance (in shares) at Dec. 31, 2023 | 30,050,000 | |||||
Net income (loss) | $ (2,883) | (3,100) | (3,100) | 217 | ||
Distributions to non-controlling interests in Consolidated Funds | (107) | (107) | ||||
Issuance of interests in Consolidated Funds | $ 350 | 350 | ||||
Issuance of common stock related to vesting of restricted stock (in shares) | 114,000 | |||||
Stock-based compensation | $ 504 | 504 | 504 | |||
Ending balance at Mar. 31, 2024 | $ 72,471 | $ 30 | $ 3,317,212 | $ (3,252,242) | $ 65,000 | $ 7,471 |
Ending balance (in shares) at Mar. 31, 2024 | 30,164,142 | 30,164,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income from continuing operations | $ (364) | $ 19,735 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 837 | 870 |
Stock-based compensation | 1,834 | 1,974 |
Unrealized gain on investments | (1,813) | (12,776) |
Realized loss on investments | 78 | (4,658) |
Gain on sale of controlling interest in subsidiary | (10,524) | |
Non-cash interest and amortization of capitalized issuance costs | 1,732 | 1,737 |
Deferred tax expense | 4 | |
Change in fair value of contingent consideration | (518) | 180 |
Other non-cash (income) expense, net | (406) | 324 |
Adjustments to reconcile net income to net cash used in operating activities of Consolidated Funds: | ||
Purchases of investments | (8,459) | |
Sales of investments | 426 | 1,558 |
Amortization | (15) | |
Net realized and unrealized (gains) losses on investments | (245) | 16 |
Changes in operating assets and liabilities: | ||
Receivables from managed funds | (1,092) | (272) |
Prepaid and other assets | (2,143) | 32 |
Real estate under development | (6,421) | (1,600) |
Operating leases | (25) | (70) |
Related party payables | (1,199) | |
Accounts payable, accrued expenses and other liabilities | 4,779 | (919) |
Changes in operating assets and liabilities of Consolidated Funds: | ||
Cash and cash equivalents | (5,414) | |
Other assets | (233) | 746 |
Accrued expenses and other liabilities | 124 | 70 |
Net cash used in provided by operating activities - continuing operations | (18,537) | (3,573) |
Net cash provided by operating activities - discontinued operations | 766 | |
Net cash (used in) provided by operating activities | (18,537) | (2,807) |
Cash flows from investing activities: | ||
Purchases of investments in held-to-maturity securities | (49,036) | |
Proceeds from settlement of held-to-maturity securities | 50,000 | |
Purchases of investments | (11,440) | (3,105) |
Sales of investments | 6,752 | 26,527 |
Proceeds from sale of controlling interest in subsidiary, net of cash sold | 17,735 | |
Other | (15) | (37) |
Net cash (used in) provided by investing activities - continuing operations | (3,739) | 41,120 |
Net cash used in investing activities - discontinued operations | (947) | 67,230 |
Net cash (used in) provided by investing activities | (4,686) | 108,350 |
Cash flows from financing activities: | ||
Principal payments on long term debt | (41,765) | |
Contributions of non-controlling interests in Consolidated Funds | 7,250 | |
Distributions to non-controlling interests in Consolidated Funds | (107) | (634) |
Net cash provided by (used in) financing activities - continuing operations | 7,143 | (42,399) |
Net cash provided by financing activities - discontinued operations | (5,221) | |
Net cash provided by (used in) financing activities | 7,143 | (47,620) |
Net decrease in cash and cash equivalents, including cash and cash equivalents classified within current assets held for sale | (16,080) | 57,923 |
Less: net increase in cash and cash equivalents classified within current assets held for sale | 62,775 | |
Plus: cash received from (used in) discontinued operations | 66,689 | |
Net change in cash and cash equivalents | (16,080) | 61,837 |
Cash and cash equivalents at beginning of period | 60,165 | 22,281 |
Cash and cash equivalents at end of period | 44,085 | 84,118 |
Cash paid for interest | 1,465 | 3,348 |
Non-cash investing and financing activities | ||
Non-cash contribution to Consolidated Funds | $ 389 | |
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 Funds | 177 | |
Equity consideration upon Sale of HC LLC | $ 2,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (3,100) | $ 11,748 | $ (676) | $ 32,987 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization
Organization | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Great Elm Group, Inc. (referred to as the Company or GEG ) is an alternative asset management company incorporated in Delaware. The Company focuses on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including Great Elm Capital Management, Inc. ( GECM ), Great Elm Opportunities GP, Inc. ( GEO GP ), Great Elm Capital GP, LLC, Great Elm FM Acquisition, Inc., Great Elm DME Holdings, Inc., Great Elm DME Manager, LLC, and Monomoy BTS Corporation ( MBTS ), Great Elm Investments LLC, as well as its majority-owned subsidiaries Forest Investments, Inc. (through December 30, 2022), and Great Elm Healthcare, LLC ( HC LLC ) and its wholly-owned subsidiaries (through January 3, 2023). In addition, we have determined that the Company was 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 | 9 Months Ended |
Mar. 31, 2024 | |
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 that 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, 2023. These financial statements reflect all adjustments (consisting of normal and 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. The historical results of the Durable Medical Equipment ( DME ) business, primarily consisting of HC LLC and its subsidiaries, sold on January 3, 2023, and related activity have been presented in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended March 31, 2023 and cash flows for the nine months ended March 31, 2023 as discontinued operations. Further, the historical segment information was recast to reflect our ongoing business as a single reportable segment and to remove the activity of discontinued operations. Unless otherwise specified, disclosures in these condensed consolidated financial statements reflect continuing operations only. Certain prior period amounts have been reclassified to conform to current period presentation. 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 of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. On an on-going basis, the Company evaluates all of these estimates and assumptions. The most important of these estimates and assumptions relate to revenue recognition, valuation allowance for deferred tax assets, estimates associated with accounting for asset acquisitions, and fair value measurements, including stock-based compensation. 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 subsidiaries, majority-owned subsidiaries, and subsidiaries in which we hold a controlling financial interest. In most cases, a controlling financial interest reflects ownership of a majority of the voting interests, including kick out rights, either directly or indirectly through related parties presumed to be under our control. 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 the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. We deconsolidate a VIE when we no longer possess the power to direct the activities of the VIE that most significantly impact its economic performance or the obligation to absorb losses of, or the right to receive benefits from, the entity 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 equity, separate from the parent company’s equity or outside of permanent equity for non-controlling interests that are contingently redeemable. Results of operations attributable to the non-controlling interests are included in the Company’s 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 and U.S. treasury bills. 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. Investments in Marketable Securities Investments in marketable securities consist of U.S. treasury bills with original maturity exceeding 90 days. The Company classifies investments in debt securities as either trading, held-to-maturity, or available-for-sale. Securities are classified as trading if they are purchased and held principally for the purpose of selling in the near term and as held-to-maturity when the Company has both the positive intent and ability to hold the security to maturity. Investments in debt securities not classified as either trading or held-to-maturity are classified as available-for-sale securities. Trading securities are measured at fair value with unrealized gains and losses reported within net realized and unrealized gain on investments. Held-to-maturity securities are measured at amortized cost with realized gains and losses reported within net realized and unrealized gain on investments. Available-for-sale securities are measured at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). As of March 31, 2024, all investments in marketable securities were classified as held-to-maturity and had original maturities (at the time of purchase) exceeding 90 days. As of March 31, 2024 , the amortized cost basis for these securities approximated their fair value. Investments, at Fair Value Investments, at fair value, consist of equity and equity-related securities and debt securities classified as trading carried at fair value, as well as investments in private funds measured using the 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 the Financial Accounting Standards Board ( FASB ) Accounting Standards Codification ( ASC ) Topic 946, Financial Services – Investment Companies , as of the valuation date. Changes in the fair value and NAV are recorded within net realized and unrealized gain on investments. Dividends received are recorded within dividends and interest income on the consolidated statements of operations. Real Estate under Development Real estate under development is classified as follows: (i) real estate under development (current), which includes real estate projects that are in the process of being developed and expected to be completed and disposed of within one year of the balance sheet date; (ii) real estate under development (non-current), which includes real estate projects that are in the process of being developed and expected to be completed and disposed of more than one year from the balance sheet date; and (iii) real estate held for sale, which includes land and completed improvements thereon that meet all of the “held for sale” criteria. Real estate under development is carried at cost less impairment, if applicable. We capitalize costs that are directly identifiable with the specific real estate projects, including pre-acquisition and pre-construction costs, development and construction costs, taxes, and insurance. We do not capitalize any general and administrative or overhead costs, regardless of whether the costs are internal or paid to third parties. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for occupancy. Real estate held for sale is recorded at the lower of cost or fair value less cost to sell. If an asset’s fair value less cost to sell, based on discounted future cash flows, management estimates or market comparisons, is less than its carrying amount, an allowance is recorded against the asset. Impairment of Long-Lived Assets Long-lived assets include real estate under development, property and equipment, definite-lived intangible assets, and lease right-of-use assets. The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that their carrying value may not be recoverable based on undiscounted cash flows. Impairment losses are recorded when undiscounted cash flows estimated to be generated by an asset are less than the asset’s carrying amount. The amount of the impairment loss, if any, is calculated as the excess of the asset’s carrying value over its fair value, which is determined using a discounted cash flow analysis, management estimates or market comparisons. Leases We determine if an arrangement contains a lease at the inception of a contract considering all relevant facts and circumstances, which normally does not require significant judgment. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease based on the present value of the remaining future minimum lease payments. As the interest rate implicit in our leases is generally not readily determinable, we utilize the incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and are reduced by lease incentives. The Company’s office leases typically require reimbursements to the lessor for real estate taxes, common area maintenance and other operating costs, which are expensed as incurred as variable lease costs. The Company accounts for lease and nonlease components as a single lease component. In March 2024, the Company signed a new office lease which is expected to commence in December 2024. As none of the criteria for recognition have been met as of March 31, 2024, there is no corresponding lease liability or right-of-use asset associated with this lease included in the condensed consolidated balance sheets. Earnings per Share The following table presents the calculation of basic and diluted net income (loss) per share: For the three months ended March 31, For the nine months ended March 31, (in thousands except per share amounts) 2024 2023 2024 2023 Numerator: Net (loss) income from continuing operations $ ( 2,883 ) $ ( 455 ) $ ( 364 ) $ 19,735 Less: net income (loss) attributable to non-controlling interest, continuing operations 217 - 328 ( 1,554 ) Numerator for basic EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc. $ ( 3,100 ) $ ( 455 ) $ ( 692 ) $ 21,289 Net income from discontinued operations - 12,203 16 13,202 Less: net income attributable to non-controlling interest, discontinued operations - - - 1,504 Numerator for basic EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. $ - $ 12,203 $ 16 $ 11,698 Effect of dilutive securities: Interest expense associated with Convertible Notes, continuing operations $ - $ - $ - $ 1,451 Numerator for diluted EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities $ ( 3,100 ) $ ( 455 ) $ ( 692 ) $ 22,740 Numerator for diluted EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. $ - $ 12,203 $ 16 $ 11,698 Denominator: Denominator for basic EPS - Weighted average shares of common stock outstanding 30,066 28,997 29,844 28,779 Effect of dilutive securities: Restricted stock - - - 1,328 Convertible Notes - - - 10,566 Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities 30,066 28,997 29,844 40,673 Basic net income (loss) per share from: Continuing operations $ ( 0.10 ) $ ( 0.02 ) $ ( 0.02 ) $ 0.74 Discontinued operations - 0.42 - 0.41 Basic net income (loss) per share $ ( 0.10 ) $ 0.40 $ ( 0.02 ) $ 1.15 Diluted net income (loss) per share from: Continuing operations $ ( 0.10 ) $ ( 0.02 ) $ ( 0.02 ) $ 0.56 Discontinued operations - 0.42 $ - 0.29 Diluted net income (loss) per share $ ( 0.10 ) $ 0.40 $ ( 0.02 ) $ 0.85 As of March 31, 2024, the Company had 3,264,424 potential shares of common stock issuable upon the exercise of stock options that are not included in the diluted net income (loss) per share calculation because to do so would be anti-dilutive for the three and nine months ended March 31, 2024. Further, as of March 31, 2024, the Company had 11,191,461 shares of common stock issuable upon the conversion of Convertible Notes (as defined below) that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive for the three and nine months ended March 31, 2024. As of March 31, 2024, the Company had 1,771,950 shares of restricted stock that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive for the three and nine months ended March 31, 2024. As of March 31, 2023, the Company had 1,270,651 potential shares of common stock issuable upon the exercise of stock options that are not included in the diluted net income (loss) per share calculation for the three and nine months ended March 31, 2023 because to do so would be anti-dilutive. As of March 31, 2024 and 2023, the Company had an aggregate of 1,771,950 and 1,509,885 issued shares, respectively, that are not considered outstanding for accounting purposes since they are unvested and subject to forfeiture by the employees at a nominal price if service milestones are not met. Recently Adopted 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 adopted this ASU as of July 1, 2023 , which did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in this ASU are effective for fiscal years beginning after December 15, 2025, and early adoption and retrospective application are permitted. The Company is evaluating the potential impact that the adoption of this ASU will have on its consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue The revenues from each major source are summarized in the following table: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Management fees $ 1,462 $ 1,384 $ 4,314 $ 4,067 Incentive fees 663 - 2,676 - Property management fees 300 278 875 830 Administration and service fees 362 236 1,051 740 Total revenues $ 2,787 $ 1,898 $ 8,916 $ 5,637 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 Great Elm Capital Corp. ( GECC ), Monomoy Properties UpREIT, LLC ( Monomoy UpREIT ), the operating partnership of Monomoy Properties REIT, LLC, 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, Monomoy Properties II, LLC ( MP II ), a feeder fund of Monomoy Properties REIT, LLC and other private funds managed by GECM. 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. Incentive fees are recognized when it is determined that they are no longer probable of significant reversal. During the three and nine months ended March 31, 2024, the Company recorded revenue in respect to the incentive fees due from GECC of $ 0.7 million and $ 2.7 million , respectively. Administration 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. The Company also earns services fees based on a shared services agreement with Imperial Capital Asset Management, LLC ( ICAM ). This revenue is recognized over time as the services are performed. Service fees are billed quarterly in arrears, which is consistent with the timing of the delivery of services and reflects agreed-upon rates for the services provided. The services are accounted for as a single performance obligation 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 | 9 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4. 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 following tables summarize activity and outstanding balances between the managed investment products and the Company: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Net realized and unrealized gain (loss) on investments $ ( 2,751 ) $ 895 $ 1,838 $ ( 7,950 ) Net realized and unrealized gain (loss) on investments of Consolidated Funds 131 - 245 ( 16 ) Dividend income 1,613 849 3,444 3,510 (in thousands) March 31, 2024 June 30, 2023 Dividends receivable $ 919 $ 300 Investment management revenues receivable 2,216 2,167 Receivable for reimbursable expenses paid 1,265 841 Receivables from managed funds $ 4,400 $ 3,308 Investment Management GECM has agreements to manage the investment portfolios for GECC, Monomoy UpREIT and other investment products, as well as to provide administrative services. Under these agreements, GECM receives management fees based on the managed assets (other than cash and cash equivalents) and rent collected, incentive fees based on the performance of those assets, and administration and service fees. See Note 3 - Revenue for additional discussions of the fee arrangements. Consolidated Funds Through its wholly-owned subsidiaries GECM and GEO GP, the Company serves as the investment manager, general partner, or managing member of certain private funds, in which it may also have a direct investment. For funds which are determined to be VIEs and where it is determined that the Company is the primary beneficiary, the criteria for consolidation are met. The Company monitors such funds and related criteria for consolidation on an ongoing basis. Funds that have historically been consolidated will be deconsolidated at such time as the Company is no longer deemed to be the primary beneficiary and will then be treated as equity method investments. The Company retains the specialized investment company accounting guidance under US GAAP with respect to the Consolidated Funds. As such, investments of the Consolidated Funds are included in the consolidated balance sheets at fair value and the net realized and unrealized gain or loss on those investments was included as a component of other income on the consolidated statements of operations. Non-controlling interests of the Consolidated Funds are included in net income (loss) attributable to non-controlling interest, continuing operations. The creditors of Consolidated Funds do not have recourse to the Company other than to the assets of the respective Consolidated Funds. The Company holds investments in certain funds that are VIEs but the Company is not deemed to be the primary beneficiary. Such investments are treated as equity method investments and the Company has elected the fair value option using NAV as a practical expedient with all changes in fair value reported in net realized and unrealized gain (loss) on investments on the consolidated statements of operations. See Note 2 - Summary of Significant Accounting Policies for additional details. Investments As of March 31, 2024, the Company owns 1,518,162 shares of GECC (approximately 16.1 % 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 of Directors and also the Chairman of GECC's Board of Directors, Adam M. Kleinman is our President, as well as the Chief Compliance Officer of GECC, Matt Kaplan is the President of GECM, as well as the President and Chief Executive Officer of GECC, and Keri A. Davis is our Chief Financial Officer and Chief Accounting Officer, as well as the Chief Financial Officer of GECC. The Company receives dividends from its investments in GECC and Monomoy UpREIT and earns unrealized gains and losses based on the mark-to-market performance of those investments. See Note 5 - Fair Value Measurements. In February 2024, the Company invested in $ 6.0 million for a 25 % interest in Great Elm Strategic Partnership I, LLC ( GESP ). The Company's investment in GESP is accounted for using the fair value option and it is included in Investments, at fair value on the consolidated balance sheets. GESP owns 1,850,424 shares of GECC. Other Transactions GECM has shared personnel and reimbursement agreements with ICAM. Jason W. Reese, the Chief Executive Officer and Chairman of the Company’s Board of Directors, is the Chief Executive Officer of ICAM, and Matt Kaplan, the President of GECM, is also a Managing Director of ICAM. Certain costs incurred under these agreements relate to human resources, investment management, and other administrative services provided by ICAM employees, for the benefit of the Company and its subsidiaries, and are included in investment management expenses in the consolidated statements of operations. For the three and nine months ended March 31, 2024, such costs were $ 0.1 million and $ 0.5 million , respectively. For the three and nine months ended March 31, 2023, such costs were $ 0.4 million and $ 1.1 million, respectively. Other costs include operational or administrative services performed on behalf of the funds managed by GECM and are included in receivables from managed funds in the consolidated balance sheets. As of March 31, 2024 and June 30, 2023, costs of $ 0.1 million and $ 0.1 million, respectively, related to the shared services agreements were included in receivables from managed funds. As of January 1, 2024, GECM also has a shared personnel and reimbursement agreement with ICAM whereby ICAM reimburses certain costs incurred by GECM related to administrative services provided by GECM employees for the benefit of ICAM. See Note 3 - Revenue for additional details. 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 of Imperial Capital, LLC. See Note 5 - Fair Value Measurements for details on the contingent consideration payable to ICAM following the acquisition of the Monomoy UpREIT investment management agreement and Note 8 - Convertible Notes for details on the Convertible Notes issued to related parties. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 non-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 March 31, 2024 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 16,856 $ - $ 3,130 $ 19,986 Total assets within the fair value hierarchy $ 16,856 $ - $ 3,130 $ 19,986 Investments valued at net asset value $ 18,258 Total assets $ 38,244 Liabilities: Contingent consideration liability $ - $ - $ 408 $ 408 Total liabilities $ - $ - $ 408 $ 408 Fair Value as of June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 14,296 $ - $ - $ 14,296 Total assets within the fair value hierarchy $ 14,296 $ - $ - $ 14,296 Investments valued at net asset value $ 18,315 Total assets $ 32,611 Liabilities: Contingent consideration liability $ - $ - $ 1,903 $ 1,903 Total liabilities $ - $ - $ 1,903 $ 1,903 There were no transfers between levels of the fair value hierarchy during the three and nine months ended March 31, 2 0 24 and 2 0 23 . The following is a reconciliation of changes in Level 3 assets: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Beginning balance $ - $ - $ - $ - Purchases 6,000 - 6,000 - Payments - - - - Change in fair value ( 2,870 ) - ( 2,870 ) - Ending balance $ 3,130 $ - $ 3,130 $ - The following is a reconciliation of changes in Level 3 liabilities: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Beginning balance $ 962 $ 1,180 $ 1,903 $ 1,120 Payments - - ( 977 ) - Change in fair value ( 554 ) 120 ( 518 ) 180 Ending balance $ 408 $ 1,300 $ 408 $ 1,300 The assets of the Consolidated Funds measured at fair value on a recurring basis are summarized in the table below: Fair Value as of March 31, 2024 (in thousands) Level 1 Level 2 Level 3 Total Assets of Consolidated Funds: Equity investments $ - $ - $ 51 $ 51 Debt securities - 3,766 4,744 8,510 Total assets within the fair value hierarchy $ - $ 3,766 $ 4,795 $ 8,561 There were no assets or liabilities of the Consolidated Funds measured at fair value as of June 30, 2023. One investment with a fair value of $ 461 was transferred from Level 3 to Level 2 as a result of increased pricing transparency during the three and nine months ended March 31, 2024 . The net change in unrealized appreciation relating to Level 3 assets still held as of March 31, 2024 totaled $ 127 . The following is a reconciliation of changes in fair value of Level 3 assets of Consolidated Funds: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2024 Beginning balance $ 2,007 $ - Purchases 3,230 5,141 Sales and Paydowns ( 33 ) ( 34 ) Net Accretion 2 2 Transfers Out ( 461 ) ( 461 ) Change in fair value 50 147 Ending balance $ 4,795 $ 4,795 The valuation techniques applied to investments held by the Company and by the Consolidated Funds 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. Equity investments that do not have readily-available market prices utilize valuation models to determine fair value and are classified as Level 3. As of March 31, 2024 , the Company had an equity investment in a private company that was valued using an options pricing model with a volatility of 38.9 % and a risk-free rate of 4.24 %. Debt securities Bank loans, corporate debt and other debt obligations traded on a national exchange are valued based on quoted market prices and classified as Level 2. Debt investments that are not actively traded are generally based on discounted cash flows and classified as Level 3. As of March 31, 2024, debt investments valued based on discounted cash flows use discount rates ranging from 11.2 % to 23.1 % with a weighted average of 13.5 %. Investments in private funds The Company values investments in private funds using NAV as reported by each fund’s investment manager. The private funds calculate NAV in a manner consistent with the measurement principles of FASB ASC 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 March 31, 2024 and June 30, 2023, investments in private funds primarily consisted of our investments in Monomoy UpREIT and Great Elm Opportunities Fund I, LP Series D ( GEOF Series D ). Monomoy UpREIT allows redemptions annually with 90 days’ notice, subject to a one-year lockup from the date of initial investment, which are capped at 5 % of its NAV. GEOF Series D allows withdrawals annually and there is no set duration for the private fund. 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 to ICAM if certain fee revenue thresholds are achieved during fiscal years ending June 30, 2023 and 2024. As of June 30, 2023, the Company determined that the fee revenue threshold for the year ending June 30, 2023 was achieved and the amount payable to ICAM was approximately $ 1.0 million, which was paid in July 2023. Further, the Company determined that the fee revenue threshold for the year ending June 30, 2024 was expected to be achieved as well, and the related amount payable to ICAM was recorded at present value of approximately $ 1.9 million , using a discount rate of 8.0 %, included within the current portion of related party payables in the condensed consolidated balance sheet as of June 30, 2023. As of March 31, 2024, it was determined that the full target revenue threshold for the year ended June 30, 2024 was unlikely to be met in full and the contingent consideration was updated to $ 0.4 million based on projected fee revenues through the end of the fiscal year. See Note 7 - Long-Term Debt for additional discussion related to the fair value of our notes payable and other long-term debt. The carrying value of all other financial assets and liabilities approximate their fair values. |
Real Estate Under Development
Real Estate Under Development | 9 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Real Estate Under Development | 6. Real Estate Under Development In January 2023, MBTS completed purchases of certain land parcels located in Mississippi and Florida. Contemporaneously with the land purchases, MBTS entered into commercial lease agreements, as a lessor, in respect to the land parcels and build-to-suit improvements to be constructed thereon. The leases will commence upon substantial completion of the build-to-suit development, which is expected not later than the second calendar quarter of 2024. We intend to sell the land and improvements with the attached leases at or close to the respective lease commencement date. During the three and nine months ended March 31, 2024, the Company capitalized costs of $ 3.2 million and $ 6.4 million , respectively, within real estate under development (current) on its condensed consolidated balance sheet, representing the development and construction costs directly identifiable with the two real estate projects. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt The Company’s long-term debt is summarized in the following table: (in thousands) Borrower March 31, 2024 June 30, 2023 GEGGL Notes GEG $ 26,945 $ 26,945 Total principal $ 26,945 $ 26,945 Unamortized debt discounts and issuance costs ( 926 ) ( 1,137 ) Long-term debt 26,019 25,808 During the three and nine months ended March 31, 2024, the Company incurred interest expense of $ 0.6 million and $ 1.7 million , respectively, attributed to its long-term debt. During the three and nine months ended March 31, 2023, the Company incurred interest expense of $ 0.6 million and $ 1.9 million , respectively, on long-term debt, as well as certain related-party notes payable fully repaid during the year ended June 30, 2023. See Note 8 - Convertible Notes for interest expense on Convertible Notes. Additional details of the Company's long-term debt are discussed below. GEGGL Notes On June 9, 2022, we issued $ 26.9 million in aggregate principal amount of 7.25 % notes due on June 30, 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: (i) pari passu, or equal, with the Convertible Notes (as defined below) and any future outstanding unsecured unsubordinated indebtedness; (ii) senior to any of our indebtedness that expressly provides it is subordinated to the GEGGL Notes; (iii) effectively subordinated to any future secured indebtedness; and (iv) structurally subordinated to any future indebtedness and other obligations of any of our current and future subsidiaries. We pay interest on the GEGGL Notes on March 31, June 30, September 30 and December 31 of each year. 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 March 31, 2024, our net consolidated debt to equity ratio is 0.33 :1.00. |
Convertible Notes
Convertible Notes | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 8. Convertible Notes As of March 31, 2024 and June 30, 2023 , the total outstanding principal balance of convertible notes due on February 26, 2030 (the Convertible Notes ) was $ 38.9 million , including cumulative interest paid in-kind. The Convertible Notes are held by a consortium of investors, including $ 15.8 million issued to certain related parties as of March 31, 2024. 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 ASC 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 March 31, 2024 and June 30, 2023, the remaining balance of unamortized debt issuance costs was $ 0.7 million and $ 0.8 million , respectively. During the three and nine months ended March 31, 2024, the Company incurred interest expense of $ 0.5 million and $ 1.5 million , respectively, related to the Convertible Notes, inclusive of non-cash interest related to amortization of debt issuance costs. During the three and nine months ended March 31, 2023, the Company incurred interest expense of $ 0.5 million and $ 1.5 million , respectively, related to the Convertible Notes, inclusive of non-cash interest related to amortization of debt issuance costs. |
Share-Based and Other Non-Cash
Share-Based and Other Non-Cash Compensation | 9 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based and Other Non-Cash Compensation | 9. Share-Based and Other Non-Cash Compensation Restricted Stock Awards and Restricted Stock Units The following table presents activity related to the Company’s restricted stock awards and restricted stock units for the nine months ended March 31, 2024: Restricted Stock Awards and Restricted Stock Units Shares (in thousands) Weighted Average Grant Date Fair Value Outstanding at June 30, 2023 1,322 $ 1.93 Granted 1,243 1.97 Vested ( 617 ) 2.13 Forfeited ( 4 ) 2.15 Outstanding at March 31, 2024 1,944 $ 1.90 Restricted stock awards and restricted stock units have vesting terms between 1 - 4 years and are subject to service requirements. During the nine months ended March 31, 2024, the Company granted 1,242,596 restricted stock awards and did no t grant any shares of restricted stock units . Stock Options The following table presents activity related to the Company’s stock options for the nine months ended March 31, 2024: Stock Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2023 3,264 $ 2.70 7.45 $ - Options granted - - - - Forfeited, cancelled or expired - - - - Outstanding at March 31, 2024 3,264 $ 2.70 6.69 $ - Exercisable at March 31, 2024 1,261 $ 3.72 3.13 $ - Stock-Based Compensation Expense Stock-based compensation expense related to all restricted stock awards, restricted stock units, and stock options totaled $ 0.5 million and $ 1.8 million for the three and nine months ended March 31, 2024, respectively. Stock-based compensation expense related to all restricted stock awards, restricted stock units, and stock options totaled $ 0.6 million and $ 2.0 million for the three and nine months ended March 31, 2023, respectively. As of March 31, 2024, the Company had unrecognized compensation costs related to all unvested restricted stock awards and stock options totaling $ 2.9 million . 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 March 31, 2024, there were 167,941 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) . Other Non-Cash Compensation During the nine months ended March 31, 2024, 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 nine months ended March 31, 2024 was $ 0.6 million , of which $ 0.1 million vested immediately, and the balance will vest annually pro-rata over two - and three-year periods. Related compensation expense was $ 0.2 million and $ 0.4 million , respectively, for the three and nine months ended March 31, 2024 . |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes As of June 30, 2023, the Company had net operating loss ( NOL ) carryforwards for federal income tax purposes of approximately $ 16.2 million, of which approximately $ 8.2 million will expire in fiscal years 2024 through 2025 and $ 8.0 million can be carried forward indefinitely. As of June 30, 2023, the Company also had $ 25.5 million of state NOL carryforwards, principally in Massachusetts, Arizona, and Nebraska, that will expire from 2031 to 2043 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
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 that 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, 2023. These financial statements reflect all adjustments (consisting of normal and 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. The historical results of the Durable Medical Equipment ( DME ) business, primarily consisting of HC LLC and its subsidiaries, sold on January 3, 2023, and related activity have been presented in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended March 31, 2023 and cash flows for the nine months ended March 31, 2023 as discontinued operations. Further, the historical segment information was recast to reflect our ongoing business as a single reportable segment and to remove the activity of discontinued operations. Unless otherwise specified, disclosures in these condensed consolidated financial statements reflect continuing operations only. Certain prior period amounts have been reclassified to conform to current period presentation. |
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 of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. On an on-going basis, the Company evaluates all of these estimates and assumptions. The most important of these estimates and assumptions relate to revenue recognition, valuation allowance for deferred tax assets, estimates associated with accounting for asset acquisitions, and fair value measurements, including stock-based compensation. 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 subsidiaries, majority-owned subsidiaries, and subsidiaries in which we hold a controlling financial interest. In most cases, a controlling financial interest reflects ownership of a majority of the voting interests, including kick out rights, either directly or indirectly through related parties presumed to be under our control. 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 the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. We deconsolidate a VIE when we no longer possess the power to direct the activities of the VIE that most significantly impact its economic performance or the obligation to absorb losses of, or the right to receive benefits from, the entity 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 equity, separate from the parent company’s equity or outside of permanent equity for non-controlling interests that are contingently redeemable. Results of operations attributable to the non-controlling interests are included in the Company’s 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 and U.S. treasury bills. 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. |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities consist of U.S. treasury bills with original maturity exceeding 90 days. The Company classifies investments in debt securities as either trading, held-to-maturity, or available-for-sale. Securities are classified as trading if they are purchased and held principally for the purpose of selling in the near term and as held-to-maturity when the Company has both the positive intent and ability to hold the security to maturity. Investments in debt securities not classified as either trading or held-to-maturity are classified as available-for-sale securities. Trading securities are measured at fair value with unrealized gains and losses reported within net realized and unrealized gain on investments. Held-to-maturity securities are measured at amortized cost with realized gains and losses reported within net realized and unrealized gain on investments. Available-for-sale securities are measured at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). As of March 31, 2024, all investments in marketable securities were classified as held-to-maturity and had original maturities (at the time of purchase) exceeding 90 days. As of March 31, 2024 , the amortized cost basis for these securities approximated their fair value. |
Investments, at Fair Value | Investments, at Fair Value Investments, at fair value, consist of equity and equity-related securities and debt securities classified as trading carried at fair value, as well as investments in private funds measured using the 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 the Financial Accounting Standards Board ( FASB ) Accounting Standards Codification ( ASC ) Topic 946, Financial Services – Investment Companies , as of the valuation date. Changes in the fair value and NAV are recorded within net realized and unrealized gain on investments. Dividends received are recorded within dividends and interest income on the consolidated statements of operations. |
Real Estate under Development | Real Estate under Development Real estate under development is classified as follows: (i) real estate under development (current), which includes real estate projects that are in the process of being developed and expected to be completed and disposed of within one year of the balance sheet date; (ii) real estate under development (non-current), which includes real estate projects that are in the process of being developed and expected to be completed and disposed of more than one year from the balance sheet date; and (iii) real estate held for sale, which includes land and completed improvements thereon that meet all of the “held for sale” criteria. Real estate under development is carried at cost less impairment, if applicable. We capitalize costs that are directly identifiable with the specific real estate projects, including pre-acquisition and pre-construction costs, development and construction costs, taxes, and insurance. We do not capitalize any general and administrative or overhead costs, regardless of whether the costs are internal or paid to third parties. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for occupancy. Real estate held for sale is recorded at the lower of cost or fair value less cost to sell. If an asset’s fair value less cost to sell, based on discounted future cash flows, management estimates or market comparisons, is less than its carrying amount, an allowance is recorded against the asset. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets include real estate under development, property and equipment, definite-lived intangible assets, and lease right-of-use assets. The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that their carrying value may not be recoverable based on undiscounted cash flows. Impairment losses are recorded when undiscounted cash flows estimated to be generated by an asset are less than the asset’s carrying amount. The amount of the impairment loss, if any, is calculated as the excess of the asset’s carrying value over its fair value, which is determined using a discounted cash flow analysis, management estimates or market comparisons. |
Leases | Leases We determine if an arrangement contains a lease at the inception of a contract considering all relevant facts and circumstances, which normally does not require significant judgment. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease based on the present value of the remaining future minimum lease payments. As the interest rate implicit in our leases is generally not readily determinable, we utilize the incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and are reduced by lease incentives. The Company’s office leases typically require reimbursements to the lessor for real estate taxes, common area maintenance and other operating costs, which are expensed as incurred as variable lease costs. The Company accounts for lease and nonlease components as a single lease component. In March 2024, the Company signed a new office lease which is expected to commence in December 2024. As none of the criteria for recognition have been met as of March 31, 2024, there is no corresponding lease liability or right-of-use asset associated with this lease included in the condensed consolidated balance sheets. |
Earnings per Share | Earnings per Share The following table presents the calculation of basic and diluted net income (loss) per share: For the three months ended March 31, For the nine months ended March 31, (in thousands except per share amounts) 2024 2023 2024 2023 Numerator: Net (loss) income from continuing operations $ ( 2,883 ) $ ( 455 ) $ ( 364 ) $ 19,735 Less: net income (loss) attributable to non-controlling interest, continuing operations 217 - 328 ( 1,554 ) Numerator for basic EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc. $ ( 3,100 ) $ ( 455 ) $ ( 692 ) $ 21,289 Net income from discontinued operations - 12,203 16 13,202 Less: net income attributable to non-controlling interest, discontinued operations - - - 1,504 Numerator for basic EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. $ - $ 12,203 $ 16 $ 11,698 Effect of dilutive securities: Interest expense associated with Convertible Notes, continuing operations $ - $ - $ - $ 1,451 Numerator for diluted EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities $ ( 3,100 ) $ ( 455 ) $ ( 692 ) $ 22,740 Numerator for diluted EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. $ - $ 12,203 $ 16 $ 11,698 Denominator: Denominator for basic EPS - Weighted average shares of common stock outstanding 30,066 28,997 29,844 28,779 Effect of dilutive securities: Restricted stock - - - 1,328 Convertible Notes - - - 10,566 Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities 30,066 28,997 29,844 40,673 Basic net income (loss) per share from: Continuing operations $ ( 0.10 ) $ ( 0.02 ) $ ( 0.02 ) $ 0.74 Discontinued operations - 0.42 - 0.41 Basic net income (loss) per share $ ( 0.10 ) $ 0.40 $ ( 0.02 ) $ 1.15 Diluted net income (loss) per share from: Continuing operations $ ( 0.10 ) $ ( 0.02 ) $ ( 0.02 ) $ 0.56 Discontinued operations - 0.42 $ - 0.29 Diluted net income (loss) per share $ ( 0.10 ) $ 0.40 $ ( 0.02 ) $ 0.85 As of March 31, 2024, the Company had 3,264,424 potential shares of common stock issuable upon the exercise of stock options that are not included in the diluted net income (loss) per share calculation because to do so would be anti-dilutive for the three and nine months ended March 31, 2024. Further, as of March 31, 2024, the Company had 11,191,461 shares of common stock issuable upon the conversion of Convertible Notes (as defined below) that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive for the three and nine months ended March 31, 2024. As of March 31, 2024, the Company had 1,771,950 shares of restricted stock that are not included in the diluted income (loss) per share calculation because to do so would be anti-dilutive for the three and nine months ended March 31, 2024. As of March 31, 2023, the Company had 1,270,651 potential shares of common stock issuable upon the exercise of stock options that are not included in the diluted net income (loss) per share calculation for the three and nine months ended March 31, 2023 because to do so would be anti-dilutive. As of March 31, 2024 and 2023, the Company had an aggregate of 1,771,950 and 1,509,885 issued shares, respectively, that are not considered outstanding for accounting purposes since they are unvested and subject to forfeiture by the employees at a nominal price if service milestones are not met. |
Recently Adopted and Issued Accounting Standards | Recently Adopted 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 adopted this ASU as of July 1, 2023 , which did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in this ASU are effective for fiscal years beginning after December 15, 2025, and early adoption and retrospective application are permitted. The Company is evaluating the potential impact that the adoption of this ASU will have on its consolidated financial statements. |
Revenue | The revenues from each major source are summarized in the following table: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Management fees $ 1,462 $ 1,384 $ 4,314 $ 4,067 Incentive fees 663 - 2,676 - Property management fees 300 278 875 830 Administration and service fees 362 236 1,051 740 Total revenues $ 2,787 $ 1,898 $ 8,916 $ 5,637 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 Great Elm Capital Corp. ( GECC ), Monomoy Properties UpREIT, LLC ( Monomoy UpREIT ), the operating partnership of Monomoy Properties REIT, LLC, 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, Monomoy Properties II, LLC ( MP II ), a feeder fund of Monomoy Properties REIT, LLC and other private funds managed by GECM. 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. Incentive fees are recognized when it is determined that they are no longer probable of significant reversal. During the three and nine months ended March 31, 2024, the Company recorded revenue in respect to the incentive fees due from GECC of $ 0.7 million and $ 2.7 million , respectively. Administration 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. The Company also earns services fees based on a shared services agreement with Imperial Capital Asset Management, LLC ( ICAM ). This revenue is recognized over time as the services are performed. Service fees are billed quarterly in arrears, which is consistent with the timing of the delivery of services and reflects agreed-upon rates for the services provided. The services are accounted for as a single performance obligation 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) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net income (loss) per share: For the three months ended March 31, For the nine months ended March 31, (in thousands except per share amounts) 2024 2023 2024 2023 Numerator: Net (loss) income from continuing operations $ ( 2,883 ) $ ( 455 ) $ ( 364 ) $ 19,735 Less: net income (loss) attributable to non-controlling interest, continuing operations 217 - 328 ( 1,554 ) Numerator for basic EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc. $ ( 3,100 ) $ ( 455 ) $ ( 692 ) $ 21,289 Net income from discontinued operations - 12,203 16 13,202 Less: net income attributable to non-controlling interest, discontinued operations - - - 1,504 Numerator for basic EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. $ - $ 12,203 $ 16 $ 11,698 Effect of dilutive securities: Interest expense associated with Convertible Notes, continuing operations $ - $ - $ - $ 1,451 Numerator for diluted EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities $ ( 3,100 ) $ ( 455 ) $ ( 692 ) $ 22,740 Numerator for diluted EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. $ - $ 12,203 $ 16 $ 11,698 Denominator: Denominator for basic EPS - Weighted average shares of common stock outstanding 30,066 28,997 29,844 28,779 Effect of dilutive securities: Restricted stock - - - 1,328 Convertible Notes - - - 10,566 Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities 30,066 28,997 29,844 40,673 Basic net income (loss) per share from: Continuing operations $ ( 0.10 ) $ ( 0.02 ) $ ( 0.02 ) $ 0.74 Discontinued operations - 0.42 - 0.41 Basic net income (loss) per share $ ( 0.10 ) $ 0.40 $ ( 0.02 ) $ 1.15 Diluted net income (loss) per share from: Continuing operations $ ( 0.10 ) $ ( 0.02 ) $ ( 0.02 ) $ 0.56 Discontinued operations - 0.42 $ - 0.29 Diluted net income (loss) per share $ ( 0.10 ) $ 0.40 $ ( 0.02 ) $ 0.85 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Management fees $ 1,462 $ 1,384 $ 4,314 $ 4,067 Incentive fees 663 - 2,676 - Property management fees 300 278 875 830 Administration and service fees 362 236 1,051 740 Total revenues $ 2,787 $ 1,898 $ 8,916 $ 5,637 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Net realized and unrealized gain (loss) on investments $ ( 2,751 ) $ 895 $ 1,838 $ ( 7,950 ) Net realized and unrealized gain (loss) on investments of Consolidated Funds 131 - 245 ( 16 ) Dividend income 1,613 849 3,444 3,510 (in thousands) March 31, 2024 June 30, 2023 Dividends receivable $ 919 $ 300 Investment management revenues receivable 2,216 2,167 Receivable for reimbursable expenses paid 1,265 841 Receivables from managed funds $ 4,400 $ 3,308 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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 March 31, 2024 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 16,856 $ - $ 3,130 $ 19,986 Total assets within the fair value hierarchy $ 16,856 $ - $ 3,130 $ 19,986 Investments valued at net asset value $ 18,258 Total assets $ 38,244 Liabilities: Contingent consideration liability $ - $ - $ 408 $ 408 Total liabilities $ - $ - $ 408 $ 408 Fair Value as of June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets: Equity investments $ 14,296 $ - $ - $ 14,296 Total assets within the fair value hierarchy $ 14,296 $ - $ - $ 14,296 Investments valued at net asset value $ 18,315 Total assets $ 32,611 Liabilities: Contingent consideration liability $ - $ - $ 1,903 $ 1,903 Total liabilities $ - $ - $ 1,903 $ 1,903 |
Reconciliation of Changes in Fair Value of Level 3 Assets | The following is a reconciliation of changes in Level 3 assets: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Beginning balance $ - $ - $ - $ - Purchases 6,000 - 6,000 - Payments - - - - Change in fair value ( 2,870 ) - ( 2,870 ) - Ending balance $ 3,130 $ - $ 3,130 $ - |
Reconciliation of Changes in Level 3 Liabilities | The following is a reconciliation of changes in Level 3 liabilities: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2023 2024 2023 Beginning balance $ 962 $ 1,180 $ 1,903 $ 1,120 Payments - - ( 977 ) - Change in fair value ( 554 ) 120 ( 518 ) 180 Ending balance $ 408 $ 1,300 $ 408 $ 1,300 |
Consolidated Funds | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis | The assets of the Consolidated Funds measured at fair value on a recurring basis are summarized in the table below: Fair Value as of March 31, 2024 (in thousands) Level 1 Level 2 Level 3 Total Assets of Consolidated Funds: Equity investments $ - $ - $ 51 $ 51 Debt securities - 3,766 4,744 8,510 Total assets within the fair value hierarchy $ - $ 3,766 $ 4,795 $ 8,561 |
Reconciliation of Changes in Fair Value of Level 3 Assets | The following is a reconciliation of changes in fair value of Level 3 assets of Consolidated Funds: For the three months ended March 31, For the nine months ended March 31, (in thousands) 2024 2024 Beginning balance $ 2,007 $ - Purchases 3,230 5,141 Sales and Paydowns ( 33 ) ( 34 ) Net Accretion 2 2 Transfers Out ( 461 ) ( 461 ) Change in fair value 50 147 Ending balance $ 4,795 $ 4,795 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Debt Instrument [Line Items] | |
Schedule of Long-Term Debt | The Company’s long-term debt is summarized in the following table: (in thousands) Borrower March 31, 2024 June 30, 2023 GEGGL Notes GEG $ 26,945 $ 26,945 Total principal $ 26,945 $ 26,945 Unamortized debt discounts and issuance costs ( 926 ) ( 1,137 ) Long-term debt 26,019 25,808 |
Share-Based and Other Non-Cas_2
Share-Based and Other Non-Cash Compensation (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Activity of Restricted Stock Awards and Restricted Stock Units | The following table presents activity related to the Company’s restricted stock awards and restricted stock units for the nine months ended March 31, 2024: Restricted Stock Awards and Restricted Stock Units Shares (in thousands) Weighted Average Grant Date Fair Value Outstanding at June 30, 2023 1,322 $ 1.93 Granted 1,243 1.97 Vested ( 617 ) 2.13 Forfeited ( 4 ) 2.15 Outstanding at March 31, 2024 1,944 $ 1.90 |
Summary of Option Activity | The following table presents activity related to the Company’s stock options for the nine months ended March 31, 2024: Stock Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2023 3,264 $ 2.70 7.45 $ - Options granted - - - - Forfeited, cancelled or expired - - - - Outstanding at March 31, 2024 3,264 $ 2.70 6.69 $ - Exercisable at March 31, 2024 1,261 $ 3.72 3.13 $ - |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Significant Accounting Policies [Line Items] | |||
Potentially dilutive shares excluded from diluted net income (loss) per share | 3,264,424 | ||
Number of shares subject to forfeiture | 1,771,950 | 1,509,885 | |
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jul. 01, 2023 | ||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | ||
Right-of-use asset | $ 230,000 | $ 497,000 | |
New Office Lease | |||
Significant Accounting Policies [Line Items] | |||
Operating lease liability | 0 | ||
Right-of-use asset | $ 0 | ||
Common Stock Issuable upon Conversion of Convertible Notes | |||
Significant Accounting Policies [Line Items] | |||
Potentially dilutive shares excluded from diluted net income (loss) per share | 11,191,461 | ||
Common Stock Issuable upon Exercise of Stock Options | |||
Significant Accounting Policies [Line Items] | |||
Potentially dilutive shares excluded from diluted net income (loss) per share | 1,270,651 | ||
Common Stock Issuable upon Vesting of Restricted Stock Units and Restricted Stock Awards | |||
Significant Accounting Policies [Line Items] | |||
Potentially dilutive shares excluded from diluted net income (loss) per share | 1,771,950 |
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 | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | ||||
Net (loss) income from continuing operations | $ (2,883) | $ (455) | $ (364) | $ 19,735 |
Less: net income (loss) attributable to non-controlling interest, continuing operations | 217 | 328 | (1,554) | |
Numerator for basic EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc. | (3,100) | (455) | (692) | 21,289 |
Net income from discontinued operations | 12,203 | 16 | 13,202 | |
Less: net income attributable to non-controlling interest, discontinued operations | 1,504 | |||
Numerator for basic EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. | 12,203 | 16 | 11,698 | |
Effect of dilutive securities: | ||||
Interest expense associated with Convertible Notes, continuing operations | 1,451 | |||
Numerator for diluted EPS - Net (loss) income from continuing operations attributable to Great Elm Group, Inc., after the effect of dilutive securities | $ (3,100) | (455) | (692) | 22,740 |
Numerator for diluted EPS - Net income (loss) from discontinued operations, attributable to Great Elm Group, Inc. | $ 12,203 | $ 16 | $ 11,698 | |
Denominator: | ||||
Denominator for basic EPS - Weighted average shares of common stock outstanding | 30,066 | 28,997 | 29,844 | 28,779 |
Effect of dilutive securities: | ||||
Restricted stock | 1,328 | |||
Convertible Notes | 10,566 | |||
Denominator for diluted EPS - Weighted average shares of common stock outstanding after the effect of dilutive securities | 30,066 | 28,997 | 29,844 | 40,673 |
Basic net income (loss) per share from: | ||||
Continuing operations | $ (0.1) | $ (0.02) | $ (0.02) | $ 0.74 |
Discontinued operations | 0.42 | 0.41 | ||
Basic net income (loss) per share | (0.1) | 0.4 | (0.02) | 1.15 |
Diluted net income (loss) per share from: | ||||
Continuing operations | (0.1) | (0.02) | (0.02) | 0.56 |
Discontinued operations | 0.42 | 0.29 | ||
Diluted net income (loss) per share | $ (0.1) | $ 0.4 | $ (0.02) | $ 0.85 |
Revenue - Summary of Major Sour
Revenue - Summary of Major Source of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 2,787 | $ 1,898 | $ 8,916 | $ 5,637 |
Management Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 1,462 | 1,384 | 4,314 | 4,067 |
Incentive Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 663 | 2,676 | ||
Property Management Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 300 | 278 | 875 | 830 |
Administration and Service Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 362 | $ 236 | $ 1,051 | $ 740 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Disaggregation Of Revenue [Line Items] | ||
Incentive fee earned as percentage on investment performance | 20% | |
Incentive fees earned as per the terms of investment management agreements | $ 0.7 | $ 2.7 |
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 ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 03, 2023 | Oct. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Feb. 29, 2024 | |
GECC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of ownership interest (as a percent) | 16.10% | 16.10% | ||||||
Number of sharers held in subsidiary | 1,518,162 | 1,518,162 | ||||||
GESP | ||||||||
Related Party Transaction [Line Items] | ||||||||
Investment amount in subsidiary | $ 6 | |||||||
Percentage of ownership interest (as a percent) | 25% | |||||||
Number of sharers held in subsidiary | 1,850,424 | |||||||
Imperial Capital, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Retainer fee paid | $ 0.1 | |||||||
Success fee paid | $ 0.7 | |||||||
Investment Management Expenses | Jason W. Reese | Shared Personnel and Reimbursement Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Costs incurred under agreement | $ 0.1 | $ 0.4 | $ 0.5 | $ 1.1 | ||||
Receivables from Managed Funds | Shared Services Agreements | ||||||||
Related Party Transaction [Line Items] | ||||||||
Costs incurred under agreement | $ 0.1 | $ 0.1 |
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 | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | |||||
Net realized and unrealized gain (loss) on investments | $ (2,751) | $ 895 | $ 1,838 | $ (7,950) | |
Net realized and unrealized gain (loss) on investments of Consolidated Funds | 131 | 245 | (16) | ||
Dividend income | 1,613 | $ 849 | 3,444 | $ 3,510 | |
Dividends receivable | 919 | 919 | $ 300 | ||
Receivable for reimbursable expenses paid | 1,265 | 1,265 | 841 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Investment management revenues receivable | 2,216 | 2,216 | 2,167 | ||
Receivables from managed funds | $ 4,400 | $ 4,400 | $ 3,308 |
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 | Mar. 31, 2024 | Jun. 30, 2023 |
Assets: | ||
Total assets | $ 38,244 | $ 32,611 |
Liabilities: | ||
Contingent consideration liability | 408 | 1,903 |
Total liabilities | 408 | 1,903 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Equity investments | 16,856 | 14,296 |
Total assets | 16,856 | 14,296 |
Liabilities: | ||
Contingent consideration liability | 0 | 0 |
Total liabilities | 0 | 0 |
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 3 | ||
Assets: | ||
Equity investments | 3,130 | 0 |
Total assets | 3,130 | 0 |
Liabilities: | ||
Contingent consideration liability | 408 | 1,903 |
Total liabilities | 408 | 1,903 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets: | ||
Equity investments | 19,986 | 14,296 |
Total assets | 19,986 | 14,296 |
Fair Value Measured at Net Asset Value Per Share | ||
Assets: | ||
Investments valued at net asset value | $ 18,258 | $ 18,315 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Changes in Fair Value of Level 3 Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 0 |
Purchases | 6,000,000 | 0 | 6,000,000 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Change in fair value | $ (2,870,000) | $ 0 | $ (2,870,000) | $ 0 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized And Unrealized Gain Loss On Investments | Realized And Unrealized Gain Loss On Investments | Realized And Unrealized Gain Loss On Investments | Realized And Unrealized Gain Loss On Investments |
Ending balance | $ 3,130,000 | $ 0 | $ 3,130,000 | $ 0 |
Consolidated Funds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 2,007,000 | 0 | ||
Purchases | 3,230,000 | 5,141,000 | ||
Sales and Paydowns | (33,000) | (34,000) | ||
Net Accretion | 2,000 | 2,000 | ||
Transfers Out | (461,000) | (461,000) | ||
Change in fair value | 50,000 | 147,000 | ||
Ending balance | $ 4,795,000 | $ 4,795,000 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Reconciliation of Changes in Level 3 Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Beginning balance | $ 962 | $ 1,180 | $ 1,903 | $ 1,120 |
Payments | (977) | |||
Change in fair value | $ (554) | $ 120 | $ (518) | $ 180 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized And Unrealized Gain Loss On Investments | Realized And Unrealized Gain Loss On Investments | Realized And Unrealized Gain Loss On Investments | Realized And Unrealized Gain Loss On Investments |
Ending balance | $ 408 | $ 1,300 | $ 408 | $ 1,300 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jul. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 | May 04, 2022 USD ($) | |
Fair value assets level 1 to level 2 transfers | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Fair value assets level 2 to level 1 transfers | 0 | 0 | 0 | 0 | ||||
Fair value asset transfers into level 3 | 0 | 0 | 0 | 0 | ||||
Fair value asset transfers out of level 3 | 0 | 0 | 0 | 0 | ||||
Fair value liabilities level 1 to level 2 transfers | 0 | 0 | 0 | 0 | ||||
Fair value liabilities level 2 to level 1 transfers | 0 | 0 | 0 | 0 | ||||
Fair value liability transfers into level 3 | 0 | 0 | 0 | 0 | ||||
Fair value liability transfers out of level 3 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Notice period for annually allowable redemptions | 90 days | 90 days | ||||||
Capped percentage of net asset value | 5% | 5% | 5% | |||||
Change in unrealized appreciation | $ 127,000 | |||||||
Lockup period from date of investment | 1 year | 1 year | ||||||
Assets measured at fair value | $ 38,244,000 | $ 38,244,000 | $ 32,611,000 | |||||
Liabilities measured at fair value | $ 408,000 | $ 408,000 | 1,903,000 | |||||
Option Pricing Model | Option Volatility | ||||||||
Equity investment measurement input | 0.389 | 0.389 | ||||||
Option Pricing Model | Risk-Free Rate | ||||||||
Equity investment measurement input | 0.0424 | 0.0424 | ||||||
Discounted Cash Flow | Discount Rate | Minimum | ||||||||
Debt securities measurement input | 0.112 | 0.112 | ||||||
Discounted Cash Flow | Discount Rate | Maximum | ||||||||
Debt securities measurement input | 0.231 | 0.231 | ||||||
Discounted Cash Flow | Discount Rate | Weighted Average | ||||||||
Debt securities measurement input | 0.135 | 0.135 | ||||||
Investment Management Agreement and Certain Other Assets for Monomoy Properties REIT L.L.C. | ||||||||
Asset acquisition, contingent consideration | $ 1,000,000 | $ 1,900,000 | ||||||
Investment Management Agreement and Certain Other Assets for Monomoy Properties REIT L.L.C. | Income Approach | Discount Rate | ||||||||
Measurement input | 0.08 | |||||||
Monomoy Properties REIT, LLC | ||||||||
Maximum additional consideration payable | $ 2,000,000 | |||||||
Imperial Capital, LLC | ||||||||
Contingent consideration liability | $ 400,000 | 400,000 | ||||||
Consolidated Funds | ||||||||
Fair value asset transfers out of level 3 | $ 461,000 | $ 461,000 | ||||||
Consolidated Funds | Fair Value, Recurring Basis | ||||||||
Assets measured at fair value | 0 | |||||||
Liabilities measured at fair value | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets of Consolidated Funds Measured at Fair Value on Recurring Basis (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 38,244,000 | $ 32,611,000 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 16,856,000 | 14,296,000 |
Total assets | 16,856,000 | 14,296,000 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 3,130,000 | 0 |
Total assets | 3,130,000 | 0 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 19,986,000 | 14,296,000 |
Total assets | 19,986,000 | 14,296,000 |
Consolidated Funds | Fair Value, Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 | |
Consolidated Funds | Fair Value, Inputs, Level 1 | Fair Value, Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | |
Debt securities | 0 | |
Total assets | 0 | |
Consolidated Funds | Fair Value, Inputs, Level 2 | Fair Value, Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 0 | |
Debt securities | 3,766,000 | |
Total assets | 3,766,000 | |
Consolidated Funds | Fair Value, Inputs, Level 3 | Fair Value, Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 51,000 | |
Debt securities | 4,744,000 | |
Total assets | 4,795,000 | |
Consolidated Funds | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments | 51,000 | |
Debt securities | 8,510,000 | |
Total assets | $ 8,561,000 |
Real Estate Under Development -
Real Estate Under Development - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) Project | |
Real Estate [Line Items] | ||
Capitalized cost within real estate under development current | $ | $ 3.2 | $ 6.4 |
Number of identifiable real estate projects | Project | 2 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - Subsidiaries Other Outstanding Borrowings - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Total principal | $ 26,945 | $ 26,945 |
Unamortized debt discounts and issuance costs | (926) | (1,137) |
Long term debt | 26,019 | 25,808 |
GEGGL Notes | GEG | ||
Debt Instrument [Line Items] | ||
Total principal | $ 26,945 | $ 26,945 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||
Jun. 09, 2022 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||
Interest expense other borrowings | $ 600,000 | $ 600,000 | $ 1,700,000 | $ 1,900,000 | ||
Aggregate principal amount | $ 38,859,000 | $ 38,859,000 | $ 37,912,000 | |||
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 | 0.33 | ||||
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 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 38,859 | $ 38,859 | $ 37,912 | ||
Interest expense | 1,074 | $ 1,095 | 3,197 | $ 5,024 | |
Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 38,900 | $ 38,900 | $ 38,900 | ||
Debt instrument maturity date | Feb. 26, 2030 | Feb. 26, 2030 | |||
Issuance of notes to related parties. | $ 15,800 | ||||
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 | $ 700 | $ 700 | $ 800 | ||
Interest expense | $ 500 | $ 500 | $ 1,500 | $ 1,500 |
Share-Based and Other Non-Cas_3
Share-Based and Other Non-Cash Compensation - Activity of Restricted Stock Award (Details) - Restricted Stock Awards and Restricted Stock Units shares in Thousands | 9 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Shares | |
Beginning Balance | shares | 1,322 |
Granted | shares | 1,243 |
Vested | shares | (617) |
Forfeited | shares | (4) |
Ending Balance | shares | 1,944 |
Weighted average grant date fair value | |
Beginning Balance | $ / shares | $ 1.93 |
Granted | $ / shares | 1.97 |
Vested | $ / shares | 2.13 |
Forfeited | $ / shares | 2.15 |
Ending Balance | $ / shares | $ 1.9 |
Share-Based and Other Non-Cas_4
Share-Based and Other Non-Cash Compensation - Restricted Stock Awards and Restricted Stock Units - Additional Information (Details) | 9 Months Ended |
Mar. 31, 2024 shares | |
Restricted Stock Awards | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Granted, shares | 1,242,596 |
Restricted Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Granted, shares | 0 |
Restricted Stock Awards and Restricted Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Granted, shares | 1,243,000 |
Restricted Stock Awards and Restricted Stock Units | Maximum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting period | 4 years |
Restricted Stock Awards and Restricted Stock Units | Minimum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting period | 1 year |
Share-Based and Other Non-Cas_5
Share-Based and Other Non-Cash Compensation - Summary of Option Activity (Details) - $ / shares shares in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Shares | ||
Beginning Balance | 3,264 | |
Ending Balance | 3,264 | 3,264 |
Exercisable | 1,261 | |
Weighted average exercise price | ||
Beginning Balance | $ 2.7 | |
Ending Balance | 2.7 | $ 2.7 |
Exercisable | $ 3.72 | |
Weighted average remaining contractual term | ||
Outstanding | 6 years 8 months 8 days | 7 years 5 months 12 days |
Exercisable | 3 years 1 month 17 days |
Share-Based and Other Non-Cas_6
Share-Based and Other Non-Cash Compensation - Non-Employee Director Deferred Compensation Plan - Additional Information (Details) - Deferred Compensation Plan - shares | 1 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2024 | |
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 | 167,941 |
Share-Based and Other Non-Cas_7
Share-Based and Other Non-Cash Compensation - Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted Stock Awards and Restricted Stock Units and Stock Options | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0.5 | $ 0.6 | $ 1.8 | $ 2 |
Restricted Stock Awards and Stock Options | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total unrecognized compensation cost | $ 2.9 | $ 2.9 |
Share-Based and Other Non-Cas_8
Share-Based and Other Non-Cash Compensation - Stock-Based Compensation Expense - Other Non-Cash Compensation (Details) - GECC Common Shares - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock issued during period, value | $ 0.6 | |
Stock issued during period value vested immediately | $ 0.1 | |
Minimum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of years issued shares vest annually on pro-rata basis | 2 years | |
Maximum | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of years issued shares vest annually on pro-rata basis | 3 years | |
Employees | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0.2 | $ 0.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Income Tax [Line Items] | |
Federal net operating loss carryforwards | $ 16.2 |
Massachusetts, Arizona and Nebraska | |
Income Tax [Line Items] | |
Operating loss carryforward for state income tax | 25.5 |
Federal | |
Income Tax [Line Items] | |
Net operating loss carryforwards, not subject to expiration | 8 |
Federal | Expire in Fiscal Years 2024 Through 2025 | |
Income Tax [Line Items] | |
Net operating loss carryforwards, subject to expiration | $ 8.2 |
Minimum | Massachusetts, Arizona and Nebraska | |
Income Tax [Line Items] | |
Operating loss carryforwards expiration period | 2031 |
Minimum | Federal | |
Income Tax [Line Items] | |
Operating loss carryforwards expiration period | 2024 |
Maximum | Massachusetts, Arizona and Nebraska | |
Income Tax [Line Items] | |
Operating loss carryforwards expiration period | 2043 |
Maximum | Federal | |
Income Tax [Line Items] | |
Operating loss carryforwards expiration period | 2025 |