PALM BEACH GARDENS, FL - Great Elm Group, Inc. (NASDAQ:GEG), a prepackaged software services company, announced a significant change in its financial oversight structure on Monday. The company's Audit Committee has decided to part ways with its previous independent registered public accounting firm, Grant Thornton LLP, effective last Tuesday.
This decision was not due to any disagreements or issues with Grant Thornton's audit reports for the fiscal years ending June 30, 2024, and June 30, 2023. Those reports did not contain any adverse opinion or modifications regarding GEG's financial statements.
Furthermore, there were no reportable events or disagreements between the company and the accounting firm during those fiscal years and the subsequent interim period leading up to today.
Following the dismissal of Grant Thornton, Great Elm Group has appointed Deloitte & Touche LLP as its new independent auditor for the fiscal year ending June 30, 2025. The company has not consulted Deloitte on any accounting principles or transactions that would influence their decision-making process prior to this appointment.
This strategic change in the company's financial oversight is expected to bring a fresh perspective to its audit process moving forward. The information regarding this change is based on the latest SEC filing by Great Elm Group.
In other recent news, Great Elm Group reported a solid fiscal fourth quarter in 2024, with both assets under management (AUM) and revenue experiencing significant growth. The company's revenue for the period tripled year-over-year to $9 million, and the fee-paying AUM saw an increase of 22% from the previous year.
Despite recording a net loss of $0.6 million for the quarter, largely due to unrealized losses on investments, adjusted EBITDA rose to $1.2 million, up from $0.4 million in the same period the previous year.
Great Elm Group's recent developments also include substantial capital raises for its business development company, Great Elm Capital Corp, and the successful launch of new platform businesses. However, the company reported a net loss for the year, primarily due to accounting treatments of investments in Special Purpose Vehicles (SPVs).
Looking ahead, the company expects continued growth in its real estate platform, particularly with the build-to-suit (BTS) business. The management remains focused on expanding the platform and growing AUM, aiming to pursue opportunities that offer attractive risk-adjusted returns.
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