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Affiliates and Controlled Investments | 6 Months Ended
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Jun. 30, 2026
Investments in and Advances to Affiliates [Abstract] |
Affiliated and Controlled Investments | 10. AFFILIATED AND CONTROLLED INVESTMENTS Affiliated investments are defined by the Investment Company Act, whereby the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities and the investments are not classified as controlled investments. The aggregate fair value of non-controlled, affiliated investments at June 30, 2026 represented 0% of the Company’s net assets. Controlled investments are defined by the Investment Company Act, whereby the Company owns more than 25% of the portfolio company’s outstanding voting securities or maintains the ability to nominate greater than 50% of the board representation. The aggregate fair value of controlled investments at June 30, 2026 represented 73% of the Company’s net assets. Fair value as of June 30, 2026 along with transactions during the six months ended June 30, 2026 in these affiliated investments and controlled investments were as follows:
|  | For the Six Months Ended June 30, 2026 |
Issue(1) |  | Fair value at December 31, 2025 |  |  | Gross Additions(2) |  |  | Gross Reductions(3) |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Fair value at June 30, 2026 |  |  | Interest Income |  |  | Fee Income |  |  | Dividend Income |
Non-Controlled, Affiliated Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PFS Holdings Corp. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity (5.05% of class) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Totals |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Controlled Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Great Elm Specialty Finance, LLC |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Subordinated Note |  |  | 25,325 |  |  |  | 3,550 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 28,875 |  |  |  | 1,711 |  |  |  | - |  |  |  | - |
Equity (87.5% of class) |  |  | 13,137 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,500 | ) |  |  | 11,637 |  |  |  | - |  |  |  | - |  |  |  | 56 |
|  |  | 38,462 |  |  |  | 3,550 |  |  |  | - |  |  |  | - |  |  |  | (1,500 | ) |  |  | 40,512 |  |  |  | 1,711 |  |  |  | - |  |  |  | 56 |
CLO Formation JV, LLC |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity (71.25% of class) |  |  | 41,425 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,841 | ) |  |  | 37,584 |  |  |  | - |  |  |  | - |  |  |  | 5,059 |
|  |  | 41,425 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,841 | ) |  |  | 37,584 |  |  |  | - |  |  |  | - |  |  |  | 5,059 |
Alpha Edison Quantum II, LLC |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity (93.70% of class) |  |  | - |  |  |  | 2,900 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,900 |  |  |  | - |  |  |  | - |  |  |  | - |
|  |  | - |  |  |  | 2,900 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,900 |  |  |  | - |  |  |  | - |  |  |  | - |
Totals |  | $ | 79,887 |  |  | $ | 6,450 |  |  | $ | - |  |  | $ | - |  |  | $ | (5,341 | ) |  | $ | 80,996 |  |  | $ | 1,711 |  |  | $ | - |  |  | $ | 5,115 |
(1) Non-unitized equity investments are disclosed with percentage ownership in lieu of quantity. (2) Gross additions include increases resulting from new or additional portfolio investments, capitalized PIK income, accretion of discounts and the exchange of one or more existing securities for one or more new securities. (3) Gross reductions include decreases resulting from principal collections related to investment repayments or sales and the exchange of one or more existing securities for one or more new securities. In accordance with SEC Regulation S-X (“S-X”) Rules 3-09 and 4-08(g), the Company must determine which of its unconsolidated controlled portfolio companies, if any, are considered to be “significant subsidiaries.” After performing this analysis, the Company determined that CLO Formation JV, LLC (“CLO JV”) and Great Elm Specialty Finance, LLC (“GESF”) are significant subsidiaries for the six months ended June 30, 2026 under at least one of the conditions of S-X Rule 1-02(w). Selected unaudited financial information of CLO JV for the six months ended June 30, 2026 and 2025 has been included below:
Statement of Operations |  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Total Revenues |  |  | 3,135 |  |  |  | 4,627 |  |  |  | 5,338 |  |  |  | 6,334 |
Total Expenses |  |  | 15 |  |  |  | 45 |  |  |  | 17 |  |  |  | 90 |
Net Income |  |  | 3,120 |  |  |  | 4,582 |  |  |  | 5,321 |  |  |  | 6,244 |
Realized Gain (Loss) |  |  | - |  |  |  | (410 | ) |  |  | - |  |  |  | (410 | )
Unrealized Gain (Loss) |  |  | 456 |  |  |  | (2,012 | ) |  |  | (3,613 | ) |  |  | (1,688 | )
Net Results |  |  | 3,576 |  |  |  | 2,160 |  |  |  | 1,708 |  |  |  | 4,146 |
Selected unaudited financial information of GESF for the six months ended June 30, 2026 and 2025 has been included below:
Statement of Operations |  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Gross revenues |  |  | 3,233 |  |  |  | 2,169 |  |  |  | 5,697 |  |  |  | 4,025 |
Other income (expense) |  |  | (3,400 | ) |  |  | (1,994 | ) |  |  | (5,259 | ) |  |  | (4,352 | )
Net profit (loss) from operations |  |  | (167 | ) |  |  | 175 |  |  |  | 438 |  |  |  | (327 | )

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column A)(Footnote 1)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 + Details
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