Company: GAINI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001321741-25-000018
Chunk: 73

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 a decrease in other expense.

In accordance with GAAP, during the three months ended June 30, 2025, we recorded a $0.2 million reversal of previously accrued capital gains-based incentive fee compared to a $3.8 million reversal during the three months ended June 30, 2024. 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.

46

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 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