Company: GAINI
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0001321741-25-000005
Chunk: 81

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-02-12
Form: 10-Q
Item: Part I, Item 1
Chunk 81
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 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 gains-based(C)7,466 (615)Total incentive fee(B)$9,353 $1,667 Credits to fees from Adviser - other(B)— — Net total incentive fee$9,353 $1,667 

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

(C)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 decreased $0.1 million, or 2.1%, during the three months ended December 31, 2024, as compared to the prior year period, primarily due to decreased borrowings on the Credit Facility, partially offset by an increase in the effective interest rate. The weighted-average balance outstanding under the Credit Facility during the three months ended December 31, 2024 was $41.9 million, compared to $77.4 million in the prior year period. The effective interest rate on the Credit Facility, excluding the impact of deferred financing costs, during the three months ended December 31, 2024 was 11.8%, as compared to 9.2% in the prior year period.