Company: GAINI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001321741-25-000018
Chunk: 102

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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 Party Transactions in the accompanying Notes to Consolidated Financial Statements and are summarized in the following table:

Three Months Ended June 30,20252024Average total assets subject to base management fee(A)(B)$1,016,000 $923,600 Multiplied by prorated annual base management fee of 2.0%0.5 %0.5 %Base management fee(C)$5,080 $4,618 Credits to fees from Adviser - other(C)(1,399)(627)Net base management fee$3,681 $3,991 Loan servicing fee(C)$2,672 $2,222 Credits to base management fee - loan servicing fee(C)(2,672)(2,222)Net loan servicing fee$— $— Incentive fee – income-based$— $— Incentive fee – capital gains-based(D)(209)(3,788)Total incentive fee(C)$(209)$(3,788)Credits to fees from Adviser - other(C)— — Net total incentive fee$(209)$(3,788)

(A)Average total assets subject to the base management fee is defined in the Advisory Agreement as total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective periods and adjusted appropriately for any share issuances or repurchases during the periods.

(B)Excludes our investment in Gladstone Alternative valued at the end of the applicable quarters within the respective periods.

(C)Reflected as a line item on our Consolidated Statements of Operations. 

(D)The capital gains-based incentive fees are recorded in accordance with GAAP and do not necessarily reflect amounts contractually due under the terms of the Advisory Agreement.

Interest expense increased $2.0 million, or 31.2%, during the three months ended June 30, 2025, as compared to the prior year period, primarily due to the issuance of the 7.785% 2030 Notes in December 2024 and an increase in the effective interest rate, partially offset by decreased borrowings on our Credit Facility. The weighted-average balance outstanding under our Credit Facility during the three months ended June 30, 2025 was $36.3 million, compared to $64.7 million in the prior year period. The effective interest rate on our Credit Facility, excluding the impact of deferred financing costs, during the