Company: GAINI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001321741-25-000022
Chunk: 198

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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 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 September 30,20252024Average total assets subject to base management fee(A)(B)$1,091,400 $889,400 Multiplied by prorated annual base management fee of 2.0%0.5 %0.5 %Base management fee(C)$5,457 $4,447 Credits to fees from Adviser - other(C)(1,638)(669)Net base management fee$3,819 $3,778 Loan servicing fee(C)$2,932 $2,194 Credits to base management fee - loan servicing fee(C)(2,932)(2,194)Net loan servicing fee$— $— Incentive fee – income-based$310 $594 Incentive fee – capital gains-based(D)4,897 1,638 Total incentive fee(C)$5,207 $2,232 Credits to fees from Adviser - other(C)— — Net total incentive fee$5,207 $2,232 

(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 $3.2 million, or 50.5%, during the three months ended September 30, 2025, as compared to the prior year period, primarily due to the issuance of the 7.785% 2030 Notes in December 2024 and increased borrowings on our Credit Facility, partially offset by a decrease in the effective interest rate. The weighted-average balance outstanding under our Credit Facility during the three months ended September 30, 2025 was $107.6 million, compared to $60.8 million in the prior