Exhibit 99.2

Great Elm Group, Inc.
Pro Forma Financial Statements
(Unaudited)

INTRODUCTION

On December 21, 2020, Great Elm Capital Group, Inc. (GEC) announced plans to create a new public holding company, Great Elm Group, Inc. (GEG or the Company), by implementing a holding company reorganization (the Holding Company Reorganization).  Following the Holding Company Reorganization, the Company became the successor issuer to GEC.

On December 29, 2020, pursuant to the terms of the Agreement and Plan of Merger, dated as of December 21, 2020, among Forest Investments, Inc. (Forest), the Company and Forest Merger Sub, Inc., a newly created entity for the purpose of facilitating the Merger, (as it may be amended from time to time, the Merger Agreement), the transactions contemplated by the Merger Agreement (the Transactions) were consummated. As a result of the Transactions, and subject to the same terms and conditions as applied immediately prior to the Transactions, each share of Forest’s outstanding common stock, common stock options, restricted stock units and restricted shares were exchanged for identical instruments of the Company.

On June 23, 2021, the Company’s majority-owned indirect subsidiary, Great Elm FM Acquisition, Inc. (FM Acquisition) entered into an agreement (Purchase Agreement) with Monomoy Properties Fort Myers FL LLC (Monomoy FM) to sell the Company’s real estate business (Real Estate Business) to Monomoy FM for $4.6 million in cash.  Pursuant to the terms of the agreement, the proceeds were reinvested in newly issued membership interests of Monomoy Properties, LLC, (Monomoy Fund), a privately-held fund comprised of a portfolio of net leased industrial real estate assets.  In conjunction with the sale of the Real Estate Business, the Company incurred transaction costs of approximately $0.24 million.  The transactions contemplated by the Purchase Agreement closed contemporaneously with its signing.

The following unaudited pro forma financial statements (Unaudited Pro Forma Financial Information) are presented to illustrate the effects of the transaction on GEG’s historical results of operations.  The Unaudited Pro Forma Financial Information is based upon the historical consolidated financial statements and notes thereto of GEG, including segment disclosures relating to the Real Estate Business, and should be read in conjunction with the:


 •
audited financial statements and the accompanying notes of GEC included in GEC’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020; and

•
unaudited financial statements and the accompanying notes of GEG included in GEG’s Quarterly Report on Form 10-Q for the nine months ended March 31, 2021.

The historical consolidated financial information of GEC and GEG have been adjusted in the Unaudited Pro Forma Financial Information to give effect to pro forma events that are (1) directly attributable to the disposition of the Real Estate Business, (2) factually supportable and (3) with respect to the consolidated statement of operations, expected to have a continuing impact on the results of GEG. The following unaudited pro forma condensed balance sheet as of March 31, 2021 has been prepared to give effect to the sale of the Real Estate Business as if it had been completed on March 31, 2021. The unaudited pro forma condensed statement of operations for the nine months ended March 31, 2021 and the fiscal year ended June 30, 2020 have been prepared to reflect the sale of the Real Estate Business as if it had been completed on July 1, 2019, the first day of the Company’s fiscal year.

The Unaudited Pro Forma Financial Information was prepared in accordance with the regulations of the United States Securities and Exchange Commission (SEC) and is not necessarily indicative of the financial position or results of operations that would have occurred if the disposition of the Real Estate Business had been completed on the dates indicated, nor is it indicative of the consolidated future operating results or financial position of GEG.  Assumptions and estimates underlying the pro forma adjustments are described in the accompanying notes, which should be read in connection with the Unaudited Pro Forma Financial Information.
 
Great Elm Group, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of March 31, 2021 (in thousands)

ASSETS
  
GEG Historical
    
Sale of Real Estate Business
    
Other Pro Forma Adjustments
    
Note 2
  
Pro forma GEG
  
Current assets:
                                    
Cash and cash equivalents
  
$
24,321
    
$
(19
)
  
$
(244
)
  
 (a)
  
$
24,058
  
Restricted cash
    
984
      
(984
)
    
-
          
-
  
Accounts receivable
    
7,172
      
-
      
-
          
7,172
  
Related party receivables
    
1,477
      
-
      
-
          
1,477
  
Investments, at fair value
    
18,835
      
-
      
4,600
          
23,435
  
Inventories
    
1,187
      
-
      
-
          
1,187
  
Prepaid and other current assets
    
3,589
      
(91
)
    
-
    
 (b)
    
3,498
  
Assets of consolidated funds
                    
-
          
-
  
Investments, at fair value (cost $25,661)
    
25,625
      
-
      
-
          
25,625
  
Prepaid expenses
    
94
      
-
      
-
          
94
  
Total current assets
    
83,284
      
(1,094
)
    
4,356
          
86,546
  
Real estate assets, net
    
52,271
      
(52,271
)
    
-
          
-
  
Property and equipment, net
    
941
      
-
      
-
          
941
  
Equipment held for rental, net
    
7,148
      
-
      
-
          
7,148
  
Identifiable intangible assets, net
    
13,854
      
(4,497
)
    
-
          
9,357
  
Goodwill
    
50,658
      
-
      
-
          
50,658
  
Right of use assets
    
5,276
      
-
      
-
          
5,276
  
Other assets
    
1,825
      
(1,566
)
    
-
          
259
  
Total assets
  
$
215,257
    
$
(59,428
)
  
$
4,356
        
$
160,185
  
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
              
Current liabilities:
                                    
Accounts payable
  
$
5,780
    
$
-
    
$
-
        
$
5,780
  
Accrued expenses and other liabilities
    
5,619
      
(556
)
    
-
          
5,063
  
Deferred revenue
    
5,374
      
-
      
-
          
5,374
  
Current portion of lease liabilities
    
1,828
      
-
      
-
          
1,828
  
Current portion of long term debt
    
2,460
      
(2,460
)
    
-
          
-
  
Current portion of equipment financing debt
    
2,155
      
-
      
-
          
2,155
  
Liabilities of consolidated funds
                                    
Due to broker and other liabilities
    
12,248
      
-
      
-
          
12,248
  
Total current liabilities
    
35,464
      
(3,016
)
    
-
          
32,448
  
Lease liabilities, net of current portion
    
3,720
      
-
      
-
          
3,720
  
Long term debt, net of current portion
    
51,541
      
(51,541
)
    
-
          
-
  
Convertible notes (face value $33,530 including $15,857 held by related parties)
    
21,036
      
-
      
-
          
21,036
  
Equipment financing debt, net of current portion
    
83
      
-
      
-
          
83
  
Redeemable preferred stock of subsidiaries (held by related parties, face value $37,018)
    
35,474
      
-
      
-
          
35,474
  
Other liabilities
    
1,020
      
(518
)
    
-
          
502
  
Total liabilities
    
148,338
      
(55,075
)
    
-
          
93,263
  
                                     
Contingently redeemable non-controlling interest
    
2,055
      
-
      
-
          
2,055
  
Stockholders' equity
                                    
Common stock, $0.001 par value; 350,000,000 shares authorized, 26,495,976 issued and 25,837,000 outstanding
    
26
      
-
      
-
          
26
  
Additional paid-in-capital
    
3,319,516
      
-
      
-
          
3,319,516
  
Accumulated deficit
    
(3,264,214
)
    
(3,530
)
    
4,356
    
 (a) (b)
    
(3,263,388
)
Total Great Elm Group, Inc. stockholders' equity
    
55,328
      
(3,530
)
    
4,356
          
56,154
  
Non-controlling interests
    
9,536
      
(823
)
    
-
          
8,713
  
Total stockholders' equity
    
64,864
      
(4,353
)
    
4,356
          
64,867
  
Total liabilities, non-controlling interest and stockholders' equity
  
$
215,257
    
$
(59,428
)
  
$
4,356
        
$
160,185
  
2
 
Great Elm Group, Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the Year Ended June 30, 2020 (in thousands)

Revenues:
  
GEG Historical
    
Sale of Real Estate Business
    
Other Pro Forma Adjustments
    
Note 2
  
Pro forma GEG
  
Durable medical equipment sales and services revenue
  
$
34,213
    
$
-
    
$
-
        
$
34,213
  
Durable medical equipment rental income
    
21,449
      
-
      
-
          
21,449
  
Investment management revenues
    
3,332
      
-
      
-
          
3,332
  
Real estate rental income
    
5,104
      
(5,104
)
    
-
          
-
  
Total revenues
    
64,098
      
(5,104
)
    
-
          
58,994
  
                                     
Operating costs and expenses:
                                    
Cost of durable medical equipment sold and services
    
15,055
      
-
      
-
          
15,055
  
Cost of durable medical equipment rentals1
    
9,105
      
-
      
-
          
9,105
  
Durable medical equipment other operating expenses2
    
25,921
      
-
      
-
          
25,921
  
Investment management expenses
    
2,104
      
-
      
-
          
2,104
  
Real estate expenses
    
544
      
(544
)
    
-
          
-
  
Depreciation and amortization
    
4,237
      
(1,722
)
    
-
          
2,515
  
Selling, general and administrative
    
6,465
      
-
                  
6,465
  
Total operating costs and expenses
    
63,431
      
(2,266
)
    
-
          
61,165
  
Operating income (loss)
    
667
      
(2,838
)
    
-
          
(2,171
)
Dividends and interest income
    
2,124
      
-
      
368
    
(c)
    
2,492
  
Unrealized loss on investment in GECC
    
(8,684
)
    
-
      
-
          
(8,684
)
Interest expense
    
(7,195
)
    
2,619
      
-
          
(4,576
)
Other income, net
    
5
      
-
      
-
          
5
  
Loss from continuing operations, before income taxes
    
(13,083
)
    
(219
)
    
368
          
(12,934
)
Income tax (expense)/ benefit
    
(44
)
    
-
      
-
    
(d)
    
(44
)
Loss from continuing operations
    
(13,127
)
    
(219
)
    
368
          
(12,978
)
Less: net loss attributable to non-controlling interest
    
(152
)
    
(48
)
    
74
    
(e)
    
(126
)
Net loss attributable to Great Elm Capital Group
  
$
(12,975
)
  
$
(171
)
  
$
294
        
$
(12,852
)
Net loss attributable to shareholders per share
                                    
Basic and diluted
  
$
(0.51
)
                      
$
(0.51
)
Weighted average shares outstanding
                                    
Basic and diluted
    
25,418
                          
25,418
  
                                     
1 Includes depreciation expense of:
    
8,267
                          
8,267
  
2 Net of CARES Act Stimulus of:
    
5,069
                          
5,069
  
3
 
Great Elm Group, Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the Nine Months Ended March 31, 2021 (in thousands)

Revenues:
  
GEG Historical
    
Sale of Real Estate Business
    
Other Pro Forma Adjustments
    
Note 2
      
Pro forma GEG
  
Durable medical equipment sales and services revenue
  
$
27,363
    
$
-
    
$
-
            
$
27,363
  
Durable medical equipment rental income
    
14,907
      
-
      
-
              
14,907
  
Investment management revenues
    
2,261
      
-
      
-
              
2,261
  
Real estate rental income
    
3,824
      
(3,824
)
    
-
              
-
  
Total revenues
    
48,355
      
(3,824
)
    
-
              
44,531
  
                                         
Operating costs and expenses:
                                        
Cost of durable medical equipment sold and services
    
12,716
      
-
      
-
              
12,716
  
Cost of durable medical equipment rentals1
    
5,193
      
-
      
-
              
5,193
  
Durable medical equipment other operating expenses2
    
21,834
      
-
      
-
              
21,834
  
Investment management expenses
    
2,546
      
-
      
-
              
2,546
  
Real estate expenses
    
380
      
(380
)
    
-
              
-
  
Depreciation and amortization
    
3,090
      
(1,291
)
    
-
              
1,799
  
Selling, general and administrative
    
4,582
      
-
      
-
              
4,582
  
Expenses of consolidated funds
    
27
      
-
      
-
              
27
  
Total operating costs and expenses
    
50,368
      
(1,671
)
    
-
              
48,697
  
Operating loss
    
(2,013
)
    
(2,153
)
    
-
              
(4,166
)
Dividends and interest income
    
2,408
      
-
      
276
    
(c)
        
2,684
  
Unrealized loss on investment in GECC
    
(454
)
    
-
      
-
              
(454
)
Net unrealized gain on investments of consolidated funds
    
221
      
-
      
-
              
221
  
Interest expense
    
(6,047
)
    
1,942
      
-
              
(4,105
)
Loss on extinguishment of debt
    
(1,866
)
    
-
      
-
              
(1,866
)
Other income, net
    
30
      
-
      
-
              
30
  
Loss, before income taxes
    
(7,721
)
    
(211
)
    
276
        
#
    
(7,656
)
Income tax benefit (expense)
    
(6
)
    
-
      
-
    
(d)
        
(6
)
Net loss from continuing operations
  
$
(7,727
)
  
$
(211
)
  
$
276
            
$
(7,662
)
Less: net loss attributable to non-controlling interest
    
(862
)
    
(45
)
    
55
    
(e)
        
(852
)
Net loss attributable to Great Elm Group, Inc.
  
$
(6,865
)
  
$
(166
)
  
$
221
            
$
(6,810
)
Net loss attributable to shareholders per share
                                        
Basic and diluted
  
$
(0.27
)
                          
$
(0.27
)
Weighted average shares outstanding
                                        
Basic and diluted
    
25,669
                              
25,669
  
                                         
1 Includes depreciation expense of:
    
4,683
                              
4,683
  
2 Net of CARES Act Stimulus of:
    
2,275
                              
2,275
  
4
 
Great Elm Capital Group, Inc.
Notes to Pro Forma Condensed Combined Consolidated Financial Statements
(Unaudited)

1.  BASIS OF PRESENTATION

The Unaudited Pro Forma Financial Information present the impact of the sale of the Real Estate Business on our financial position and results of operations.  The unaudited pro forma condensed financial statements were prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed balance sheet as of March 31, 2021 is presented as if the sale had been completed on March 31, 2021. The unaudited pro forma condensed statements of operations for the year ended June 30, 2020 and nine months ended March 31, 2021 assume the sale was completed on July 1, 2019.

The Unaudited Pro Forma Financial Information is presented for illustrative purposes only and are not necessarily indicative of the operating results that would have been achieved had the acquisition been completed as of the date indicated above or the results that may be attained in the future.

2. UNAUDITED PRO FORMA ADJUSTMENTS

The Unaudited Pro Forma Financial Information include pro forma adjustments to give effect to the sale of the Real Estate Business. The pro forma adjustments reflecting the sale of the Real Estate Business include removing the Real Estate Business’ assets, liabilities, equity and results of operations from the historical financials of the Company as well as the following:

(a)
To record transaction costs related to the sale of our Real Estate Business, which consist primarily of lender consent fees and professional services fees.

(b)
To record the subsequent contractual investment in Monomoy Fund using the proceeds of the sale.

(c)
During the pro forma periods, the Monomoy Fund paid out dividends to investors at approximately 8% of their invested balance.  This adjustment records the pro forma dividend income that would have been earned on the investment if the transaction had occurred on July 1, 2019.

(d)
The Company has significant federal and state net operating loss (NOL) carryforwards and maintains a full valuation allowance against its outstanding net deferred tax assets.  This results in nominal income tax expenses incurred by the Company, consisting of state taxes where NOL carryforwards are insufficient to cover the taxable income generated.  Accordingly, the pro forma adjustments have not been tax-affected.

(e)
Reflects the allocation of other pro forma adjustments to the 20% non-controlling interest holders of Great Elm FM Acquisition, Inc.

5