Company: GAINI
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001321741-25-000005
Chunk: 207

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-02-12
Form: 10-Q
Item: Part I, Item 8
Chunk 207
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 million of success fee income. During the three months ended December 31, 2023, dividend and success fee income consisted of $1.4 million of success fee income.

Expenses

Total expenses, net of any non-contractual, unconditional, and irrevocable credits from the Adviser, increased $6.9 million, or 51.5%, during the three months ended December 31, 2024, as compared to the prior year period, primarily due to an increase in incentive fees and base management fee, partially offset by an increase in fee credits from the Adviser.

In accordance with GAAP, during the three months ended December 31, 2024, we recorded a $7.5 million capital gains-based incentive fee compared to a $0.6 million reversal during the three months ended December 31, 2023. The capital gains-based incentive fee is a result of the net impact of net realized gains and net unrealized appreciation (depreciation) on investments during the respective periods. The income-based incentive fee decreased by $0.4 million, for the three months ended December 31, 2024, as compared to the prior year period, primarily due to a decrease in pre-incentive fee net investment income, partially offset by a decrease in net assets, which drives the hurdle rate.

50

The base management fee, loan servicing fee, incentive fee, and their related non-contractual, unconditional, and irrevocable credits are computed quarterly, as described under “Transactions with the Adviser” in Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements and are summarized in the following table:

Three Months Ended December 31,20242023Average total assets subject to base management fee(A)$974,400 $920,400 Multiplied by prorated annual base management fee of 2.0%0.5 %0.5 %Base management fee(B)$4,872 $4,602 Credits to fees from Adviser - other(B)(2,851)(1,793)Net base management fee$2,021 $2,809 Loan servicing fee(B)$2,405 $2,332 Credits to base management fee - loan servicing fee(B)(2,405)(2,332)Net loan servicing fee$— $— Incentive fee – income-based$1,887 $2,282 Incentive fee – capital