8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 10, 2020

Great Elm Capital Group, Inc.

(Exact name of Registrant as Specified in Its Charter)

Delaware	001-16073	94-3219054
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
800 South Street, Suite 230, Waltham, MA		02453
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 375-3006

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.001 per share	GEC	The Nasdaq Stock Market LLC (Nasdaq Global Select Market)
Preferred Stock Purchase Rights		Nasdaq Global Select Market
Units, par value, $0.001 per share		Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 10, 2020, the registrant issued the press release and published the presentation furnished as exhibits 99.1 and 99.2, respectively, to this report.

The foregoing information (including the exhibits hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished with this report but shall not be deemed filed:

Exhibit Number	Description
99.1	Press release, dated February 10, 2020.
99.2	Presentation, dated February 10, 2020.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	GREAT ELM CAPITAL GROUP, INC.
Date:  February 10, 2020	/s/  Brent J. Pearson ______________
	By: Brent J. Pearson
	Title: Chief Financial Officer

EX-99.1

Exhibit 99.1

GREAT ELM CAPITAL GROUP, INC. REPORTS SECOND QUARTER 2020 FINANCIAL RESULTS

▪ Year-over-year DME revenue growth in major product categories

▪ New patient setups continue to grow in key PAP and ventilator segments, each hitting new highs in the quarter ended December 31, 2019

▪ Investment Management reports management fee revenue of $0.8 million in the quarter ended December 31, 2019, approximately flat year-over-year

WALTHAM, MA, February 10, 2020 – Great Elm Capital Group, Inc. (NASDAQ: GEC, “Great Elm”) announced its financial results for the quarter ended December 31, 2019. Great Elm will host a conference call and webcast on Monday, February 10, 2020 at 8:00 a.m. Eastern Time to discuss its second quarter 2020 financial results. Please see below for details.

Select highlights from the second quarter 2020 include:

▪ Operating Companies:

▪ For the three months ended December 31, 2019, $14.4 million of revenue, $0.7 million of net loss and $3.5 million of adjusted EBITDA¹

▪ Invested heavily in people, processes and technology to enhance our scalable infrastructure, capable of supporting multiple acquisitions per year

▪ Management team has identified a large number of potential acquisition targets with strong product fit

▪ Outlook for continued growth in fiscal year 2020 underpinned by revenue growth in PAP category

▪ Investment Management:

▪ For the three months ended December 31, 2019, $0.9 million of revenue, net income of $0.005 million and $0.3 million of adjusted EBITDA

▪ For the six months ended December 31, 2019, $0.7 million of adjusted EBITDA up 273% vs. $0.2 million during the same period in the prior year

▪ For the three months ended December 31, 2019, management feesof approximately $0.76 million roughly unchanged, year-over-year

▪ Outlook for continued free cash flow growth in fiscal year 2020 based on an increase in management fee revenue

“At Great Elm DME, we are pleased with both the sequential and year-over-year revenue growth. Profitability grew meaningfully this quarter, as compared to the prior two quarters during which we began significant infrastructure investments necessary to enhance our scalable platform,” remarked Peter A. Reed, Great Elm’s Chief Executive Officer. “Furthermore, we believe our Investment Management business is poised for continued free cash flow growth.”  

Alignment of Interest

The employees of Great Elm and Great Elm Capital Management, Inc. (“GECM”) collectively own approximately 2.0 million shares of GEC stock, representing approximately 8% of its outstanding shares. Additionally, the directors of Great Elm collectively own or manage greater than 11% of Great Elm’s shares. Altogether, insiders collectively own or manage approximately 19% of the company’s outstanding shares, which Great Elm believes fosters a strong alignment of interest between employees, directors and the company’s shareholders.

BUSINESS OVERVIEW

Great Elm is a diversified, publicly-traded holding company that seeks to build long-term shareholder value across three verticals: Operating Companies, Investment Management and Real Estate.

Operating Companies

In the three months ended December 31, 2019, DME generated $3.5 million of adjusted EBITDA. During the quarter, DME experienced meaningful growth in major product categories. Management anticipates continued growth in fiscal year 2020, supported by encouraging key performance indicators, including approximately 8.8% quarter-over-quarter growth in PAP supply orders.

The team continues to pursue M&A opportunities with complementary product profiles that increase market penetration and extend existing geographic markets.  

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Investment Management

In the three months ended December 31, 2019, Investment Management generated $0.3 million of adjusted EBITDA¹, up approximately 53% year over year. In the six months ended December 31, 2019, Investment Management generated $0.7 million of adjusted EBITDA, also up significantly year over year. Adjusted EBITDA growth was driven by a significant reduction in operating expenses, as management continues to focus on operational efficiency.

Great Elm’s management team believes the Investment Management business is scalable, offers attractive margins and, when coupled with growth in assets under management, provides for the potential to generate incremental EBITDA.

Great Elm seeks to grow assets under management through capital raises and M&A. If successful, growth in assets under management should result in increased management fee revenue for GECM. This increase in management fee revenue should drive future free cash flow generation, aided by a reduction of overhead.  

Alongside Great Elm Capital Corp., Great Elm Opportunities Fund I, LP and existing separately managed accounts, Great Elm continues to seek avenues for growth, potentially launching additional private funds and pursuing opportunistic acquisitions in the business development company space.

Real Estate

In the three months ended December 31, 2019, Real Estate generated $1.3 million in rental revenue and $1.1 million of adjusted EBITDA.

Great Elm continues to focus on credit tenant lease financings and ground lease structures across a variety of commercial, government and other properties. Great Elm’s substantial tax assets can make it a value-added partner or lessor. While Great Elm selectively pursues compelling real estate opportunities from time to time, it does not currently see an abundance of attractive potential acquisitions in what appears to be a relatively overheated market.

FINANCIAL REVIEW: SEGMENT FINANCIALS

As of December 31, 2019, Great Elm had four operating segments: Durable Medical Equipment, Investment Management, Real Estate and General Corporate.

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Durable Medical Equipment

Three Months Ended December 31, 2019:

Revenue:

▪ During the three months ended December 31, 2019, Great Elm recognized $14.4 million in total revenue vs. $13.2 million during the same period in the prior year.

Net Income (Loss):

▪ During the three months ended December 31, 2019, Great Elm recognized a net loss of $0.7 million vs. $0.4 million of net income during the same period in the prior year.

Adjusted EBITDA:

▪ During the three months ended December 31, 2019, Great Elm recognized $3.5 million in adjusted EBITDA vs. $3.6 million during the same period in the prior year.

Investment Management

Three Months Ended December 31, 2019:

Revenue:

▪ During the three months ended December 31, 2019, Great Elm recognized total investment management revenue of $0.89 million vs. $0.92 million during the same period in the prior year.

▪ During the three months ended December 31, 2019, Great Elm recognized management fee revenue of $0.76 million, approximately flat year-over-year.

Net Income (Loss):

▪ During the three months ended December 31, 2019, Great Elm recognized no net income vs. no net income during the same period in the prior year.

Adjusted EBITDA¹:

▪ During the three months ended December 31, 2019, Great Elm recognizedadjusted EBITDA of $0.3 million vs. $0.2 million during the same period in the prior year.

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Real Estate

Three Months Ended December 31, 2019:

Revenue:

▪ During the three months ended December 31, 2019, Great Elm recognized $1.3 million in rental revenue vs. $1.5 million during the same period in the prior year.

Net Income (Loss):

▪ During the three months ended December 31, 2019, Great Elm recognized $0.06 million in net income vs. $0.04 million in net income during the same period in the prior year.

Adjusted EBITDA:

▪ During the three months ended December 31, 2019, Great Elm recognized $1.1 million in adjusted EBITDA vs. $1.1 million during the same period in the prior year.

General Corporate

Three Months Ended December 31, 2019:

Revenue:

▪ During the three months ended December 31, 2019, Great Elm recognized $0.06 million in revenue vs. $0.05 million in revenue during the same period in the prior year.

Net Income (Loss):

▪ During the three months ended December 31, 2019, Great Elm recognized $1.4 million in net loss vs. net loss of $4.7 million during the same period in the prior year.

Adjusted EBITDA:

▪ During the three months ended December 31, 2019, Great Elm recognized $(1.6) million in adjusted EBITDA vs. $(1.8) million during the same period in the prior year.

Conference Call & Webcast

Great Elm will host a conference call and webcast on Monday, February 10, 2020 at 8:00 a.m. Eastern Time to discuss its second quarter 2020 financial results.

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All interested parties are invited to participate in the conference call by dialing +1 (844) 559-0750; international callers should dial +1 (647) 689-5386. Participants should enter the Conference ID 6463167when asked. For a copy of the slide presentation that will be referenced during the course of our conference call, please visit: https://www.greatelmcap.com/events-and-presentations/default.aspx.

The conference call will be webcast simultaneously at: https://event.on24.com/wcc/r/2152588/FB6CE9E9B21B84BD3AF43376EB1DC7DB.

About Great Elm Capital Group, Inc.

Great Elm is a publicly-traded holding company that seeks to build a business across three operating verticals: Operating Companies, Investment Management and Real Estate. Great Elm’s website can be found at www.greatelmcap.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are “forward-looking” statements, including statements regarding revenue, adjusted EBITDA, expected growth, profitability, free cash flow and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information.  These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmcap.com or at the SEC website www.sec.gov.

Non-GAAP Financial Measures

The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities.

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Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.

Set forth below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income. The information in the table below represents Great Elm’s assumptions and expectations in light of currently available information. Great Elm’s actual performance results may differ from those projected in in the table below, and any such differences may be material.

	For the three months ended December 31, 2019
$ in thousands	Durable Medical Equipment			Investment Management 1		Real Estate		General Corporate			Consolidated
EBITDA:
Net income (loss) - GAAP	$	(676	)	$	5	$	60	$	(1,416	)	$	(2,027	)
Interest expense		937			41		655		-			1,633
Depreciation & amortization		2,483			179		430		1			3,093
Income tax expense (benefit)		-			-		-		(99	)		(99	)
EBITDA	$	2,744		$	225	$	1,145	$	(1,514	)	$	2,600
Adjusted EBITDA:
Stock based compensation		-			98		-		110			208
Change in contingent consideration 2		-			-		-		(940	)		(940	)
GECC Unrealized (gains) / losses		-			-		-		826			826
Dividend income from GECC		-			-		-		(588	)		(588	)
Transaction and integration costs 2		586			-		-		515			1,101
Pharmacy buildout		120			-		-		-			120
DME management and Monitoring fees		82			-		-		(57	)		25
Adjusted EBITDA	$	3,532		$	323	$	1,145	$	(1,648	)	$	3,352

	For the six months ended December 31, 2019
$ in thousands	Durable Medical Equipment			Investment Management 1			Real Estate		General Corporate			Consolidated
EBITDA:
Net income (loss) - GAAP	$	(1,495	)	$	(40	)	$	120	$	(3,890	)	$	(5,305	)
Interest expense		1,933			83			1,313		-			3,329
Depreciation & amortization		4,991			358			862		1			6,212
Income tax expense (benefit)		-			-			-		143			143
EBITDA	$	5,429		$	401		$	2,295	$	(3,746	)	$	4,379
Adjusted EBITDA:
Stock based compensation		-			274			-		228			502
Change in contingent consideration 2		-			-			-		(1,135	)		(1,135	)
GECC Unrealized (gains) / losses		-			-			-		1,809			1,809
Dividend income from GECC		-			-			-		(1,078	)		(1,078	)
Other (income) expense		(3	)		-			-		-			(3	)
Transaction and integration costs 2		736			-			-		635			1,371
Pharmacy buildout		254			-			-		-			254
DME management and Monitoring fees		130			-			-		(80	)		50
Adjusted EBITDA	$	6,546		$	674		$	2,295	$	(3,367	)	$	6,149

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	For the three months ended December 31, 2018
$ in thousands	Durable Medical Equipment			Investment Management 1			Real Estate		General Corporate 4			Consolidated
EBITDA:
Net income (loss) - GAAP	$	399		$	(7	)	$	38	$	(4,706	)	$	(4,276	)
Interest expense		1,081			44			663		-			1,788
Depreciation & amortization		2,142			137			431		-			2,710
Income tax expense (benefit)		-			-			-		-			-
EBITDA	$	3,622		$	174		$	1,132	$	(4,706	)	$	222
Adjusted EBITDA:
Stock based compensation		-			37			-		132			169
GECC Unrealized (gains) / losses		331			-			-		3,308			3,639
Dividend income from GECC		(375	)		-			-		(586	)		(961	)
Transaction and integration costs 2		2			-			-		135			137
DME management and monitoring fees		52			-			-		(52	)		-
Adjusted EBITDA	$	3,632		$	211		$	1,132	$	(1,769	)	$	3,206

	For the six months ended December 31, 2018
$ in thousands	Durable Medical Equipment 3			Investment Management 1			Real Estate		General Corporate 4			Consolidated
EBITDA:
Net income (loss) - GAAP	$	426		$	(696	)	$	89	$	(6,104	)	$	(6,285	)
Interest expense		1,367			88			1,328		-			2,783
Depreciation & amortization		2,565			273			862		-			3,700
Income tax expense (benefit)		-			-			-		-			-
EBITDA	$	4,358		$	(335	)	$	2,279	$	(6,104	)	$	198
Adjusted EBITDA:
Stock based compensation		-			582			-		260			842
GECC Unrealized (gains) / losses		411			-			-		2,323			2,734
Dividend income from GECC		(431	)		-			-		(1,020	)		(1,451	)
Transaction and integration costs 2		544			-			-		1,459			2,003
DME management and Monitoring fees		70			-			-		(70	)		-
Adjusted EBITDA	$	4,952		$	247		$	2,279	$	(3,152	)	$	4,326

(1) Prior year non-GAAP adjustments have been updated to conform to current year presentation by removing adjustments associated with the adoption of ASC 606 Contracts with Customers.

(2) Acquisition and integration related costs include transaction costs, costs to integrate acquired businesses and changes in the fair value of the contingent consideration liability since the initial valuation at the acquisition date.

(3) Our durable medical equipment business began in September 2018 and there was no related activity prior to that date.

(4) General Corporate net loss includes net loss attributable to discontinued operations.

Media & Investor Contact:

Investor Relations

+1 (617) 375-3006

investorrelations@greatelmcap.com

EX-99.2

Great Elm Capital Group, Inc. Investor Presentation – Quarter Ended December 31, 2019 February 10, 2020 © 2020 Great Elm Capital Group, Inc. Exhibit 99.2

© 2020 Great Elm Capital Group, Inc. Disclaimer Statements in this presentation that are “forward-looking” statements, including statements regarding revenue, adjusted EBITDA, expected growth, profitability, free cash flow and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm Capital Group, Inc.’s (“Great Elm” or “GEC”) assumptions and expectations in light of currently available information.  Great Elm assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this presentation or to conform prior statements to actual results or revised expectations, except as required by law. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the Securities and Exchange Commission (the “SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC, which are available for download at its website www.greatelmcap.com or at the SEC website www.sec.gov. Non-GAAP Financial Measures The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and free cash flow. See the Appendix for important information regarding the use of non-GAAP financial measures and reconciliations of non-GAAP measures to their most directly comparable GAAP measures. This presentation does not constitute an offer of any securities for sale.

© 2020 Great Elm Capital Group, Inc. SlideSection 4Performance Overview 6 Organizational Overview 9Operating Companies: Great Elm DME 13Investment Management 17Real Estate 21General Corporate 23Financial Review 26Summary 28Q&A 29Appendix Table of Contents

Performance Overview © 2020 Great Elm Capital Group, Inc.

Performance Overview: Quarter Ended December 31, 2019 1 © 2020 Great Elm Capital Group, Inc. (1) Numbers in millions. (2) Per changes in US GAAP, real estate taxes were included in Real Estate revenue in the second fiscal quarter of 2019 but are not included in the second fiscal quarter of 2020. (3) Please refer to the disclaimers on slide 2 and the Adjusted EBITDA reconciliation tables in the Appendix. (4) Prior year non-GAAP adjustments have been updated to conform to current year presentation by removing adjustments associated with the adoption of ASC 606 Contracts with Customers. Revenue by Segment Segment 2Q20 2Q19 DME $14.4 $13.2 Investment Management $0.9 $0.92 Real Estate 2 $1.3 $1.5 General Corporate $0 $0.02 Consolidated $16.600000000000001 $15.639999999999999 Net Income (Loss) by Segment Segment 2Q20 2Q19 DME $-0.7 $0.4 Investment Management $0 $0 Real Estate 2 $0.06 $0.04 General Corporate $-1.4 $-4.7 Consolidated $-2.04 $-4.26 Adjusted EBITDA 3 by Segment Segment 2Q20 2Q19 DME $3.532 $3.6320000000000001 Investment Management 4 $0.32300000000000001 $0.98299999999999998 Real Estate 2 $1.145 $1.1319999999999999 General Corporate $-1.6479999999999999 $-1.7689999999999999 Consolidated $3.3520000000000003 $3.9779999999999998 Revenue by Segment Segment 2Q20 2Q19 DME $14.4 $13.2 Investment Management $0.9 $0.92 Real Estate 2 $1.3 $1.5 General Corporate $0 $0.02 Consolidated $16.600000000000001 $15.639999999999999 Net Income (Loss) by Segment Segment 2Q20 2Q19 DME $-0.7 $0.4 Investment Management $0 $0 Real Estate 2 $0.06 $0.04 General Corporate $-1.4 $-4.7 Consolidated $-2.04 $-4.26 Adjusted EBITDA 3 by Segment Segment 2Q20 2Q19 DME $3.532 $3.6320000000000001 Investment Management 4 $0.32300000000000001 $0.98299999999999998 Real Estate 2 $1.145 $1.1319999999999999 General Corporate $-1.6479999999999999 $-1.7689999999999999 Consolidated $3.3520000000000003 $3.9779999999999998 Revenue by Segment Segment 2Q20 2Q19 DME $14.4 $13.2 Investment Management $0.9 $0.92 Real Estate 2 $1.3 $1.5 General Corporate $0 $0.02 Consolidated $16.600000000000001 $15.639999999999999 Net Income (Loss) by Segment Segment 2Q20 2Q19 DME $-0.7 $0.4 Investment Management $0 $0 Real Estate 2 $0.06 $0.04 General Corporate $-1.4 $-4.7 Consolidated $-2.04 $-4.26 Adjusted EBITDA 3 by Segment Segment 2Q20 2Q19 DME $3.532 $3.6320000000000001 Investment Management 4 $0.32300000000000001 $0.21099999999999999 Real Estate 2 $1.145 $1.1319999999999999 General Corporate $-1.6479999999999999 $-1.7689999999999999 Consolidated $3.3520000000000003 $3.2059999999999995

Organizational Overview © 2020 Great Elm Capital Group, Inc.

© 2020 Great Elm Capital Group, Inc. Organizational Overview: Drivers of Shareholder Value Operating Companies Real Estate Investment Management Target undercapitalized small and mid-sized companies where we can partner with management to accelerate earnings and cash flow growth Focus on companies that offer a platform for follow-on acquisitions and investment, particularly with respect to DME and adjacent industries Grow Great Elm Capital Corp. (“GECC”) through capital raises and potential BDC acquisitions Increase assets under management (“AUM”) via new fund launches, SMAs and co-investments Seek opportunities, such as the Fort Myers transaction, that utilize modest equity capital and monetize significant net operating loss carryforwards (“NOLs”)

© 2020 Great Elm Capital Group, Inc. Organizational Overview: Alignment of Interest When combined, insider ownership totals approximately 19% of the outstanding shares We believe this level of insider ownership results in a significant and long-term alignment of interest between the shareholders and the insiders of GEC Director Share Ownership Employees of GEC/Great Elm Capital Management, Inc. (“GECM”) collectively own approximately 2.0 million shares of GEC, representing approximately 8% of GEC’s outstanding shares1 The directors of GEC collectively own greater than 11% of GEC’s outstanding shares1 Significant Alignment of Interest Employee Share Ownership (1) This includes restricted shares that are subject to both performance and service vesting and is based on the share count pro forma for the vesting of said restricted shares.

Operating Companies: Great Elm DME © 2020 Great Elm Capital Group, Inc.

Operating Companies: Rapid Growth at DME In FY 2Q20, Great Elm DME, Inc. (“DME”) generated $14.4 million of revenue, $0.7 million of net loss and $3.5 million of adjusted EBITDA1 Meaningful revenue growth in major product categories Management is investing heavily in people, processes and technology to enhance DME’s scalable infrastructure, capable of supporting multiple acquisitions per year DME has continued to generate rapid year-over-year patient growth in its PAP product category New patient setups continue to grow in key PAP and ventilator segments, each hitting new highs in the quarter ending December 31, 2019 We expect continued organic growth from DME Fundamental demand for respiratory products and services, combined with the company’s focus on patient service and business expansion, provides a path to revenue and adjusted EBITDA growth in fiscal year 2020 © 2020 Great Elm Capital Group, Inc. (1) Please refer to the disclaimers on slide 2 and the Adjusted EBITDA reconciliation tables in the Appendix

Operating Companies: M&A In addition to driving organic revenue, EBITDA and volume growth, DME will seek to acquire complementary, patient-focused businesses DME is pursuing an expansion strategy that targets businesses in tangential or overlapping markets These acquisition opportunities can help to further diversify DME’s payor and product mix The respiratory-focused, durable medical equipment industry is characterized by a fragmented landscape that we believe offers a significant opportunity for additional consolidation DME’s patient-centric service model differentiates it from the competition DME also seeks to explore complementary product lines and services that can leverage the company’s valuable contracts, referral sources, customer bases and infrastructure © 2020 Great Elm Capital Group, Inc.

Operating Companies: DME Segment Financial Detail © 2020 Great Elm Capital Group, Inc. (1) Please refer to the disclaimers on slide 2 and the Adjusted EBITDA reconciliation tables in the Appendix Maintenance capex includes approximately $311 thousand related to upgrades of our sleep equipment We anticipate a similar investment every 5 – 7 years Great Elm Capital Group, Inc. DME Results DME Segment Financials - Quarter Ended 12/31/19 Total revenues $14,390.788430000001 MSR Total expenses ,-15,066.51556 MSR GAAP Net income -,675.72712999999931 Adjusted EBITDA: GAAP Net income -,675.72712999999931 Interest expense, net 936.69194999999991 Depreciation and amortization expense 2,482.6581000000001 MNG note: this includes deprecation on rental equipment included in cost of rentals Transaction and integration related costs 586.41765000000009 C Location build out 119.59573499999999 Mgmt fees 81.974160000000012 MNG Adj. EBITDA1 $3,531.6104650000011 MNG Maintenance capex -,508 A Cash interest -,945 TB - DME Holdings Levered free cash flow $2,078.6104650000011 Uses of free cash flow: B Revenue generating capex -1,513 TB - DME Inc. Net revolver paydowns -,750 Scheduled debt amortization -,354 Payments on Equipment financing -,665 Net free cash flow $-1,203.3895349999989 $0 $-0.38953499999888663

Investment Management © 2020 Great Elm Capital Group, Inc.

© 2020 Great Elm Capital Group, Inc. Investment Management: A Scalable, High Margin Business AUM Growth High Margins Scalable Model Significant Free Cash Flow AUM GROWTH Grow GECC’s AUM through the issuance of additional debt and equity, supplemented by accretive acquisitions of other BDCs, resulting in an increase in fee revenue Grow the Investment Management business by leveraging the existing team to launch additional vehicles HIGH MARGINS Given the largely fixed cost nature of the Investment Management business, we expect adjusted EBITDA margins to increase as our AUM increases and the business scales SCALABLE MODEL Investment team and infrastructure in place to support substantial growth in AUM and new investment vehicles SIGNIFICANT FREE CASH FLOW Growth in AUM in the Investment Management business coupled with its high margins and scalable business model could result in significant operating leverage and, thus, the potential for growth in adjusted EBITDA and free cash flow

© 2020 Great Elm Capital Group, Inc. Investment Management: Management Fee Growth

Investment Management: Segment Financial Detail © 2020 Great Elm Capital Group, Inc. Near-Term Drivers of Incremental Free Cash Flow: We believe GECC will continue to grow its investment portfolio, including via incremental capital raises, which will drive incremental management fee revenue The Full Circle consulting agreement terminated on November 3, 2019. The FY19 expense associated with this agreement was $763 thousand (1) Please refer to the disclaimers on slide 2 and the Adjusted EBITDA reconciliation tables in the Appendix Great Elm Capital Group, Inc. IM Results IM Segment Financials - Quarter Ended 12/31/19 Total revenues $889.43615 MSR A Reconciled as follows: Full Circle consulting fee -73.453360000000032 A 72,453.36000000003 68520 Detail 67120 - Consulting Services Total other expenses -,811.48397999999997 MSR 0 PQ MSR GAAP Net Income 5.4988100000000486 72,453.36000000003 Adjusted EBITDA: GAAP Net Income 5.4988100000000486 Stock based compensation 98.419640000000001 MNG (negative because of PSA adjustment) Interest expense, net 41.017910000000001 Depreciation and amortization expense 179.05248999999998 Adj. EBITDA1 $322.98885000000001 MNG Interest expense - debt -45 MNG Levered free cash flow $277.98885000000001 278 $-1.1149999999986449E-2 MSR From MD&A/Notes segment results worksheet MNG From MD&A non-GAAP measurements

Real Estate © 2020 Great Elm Capital Group, Inc.

© 2020 Great Elm Capital Group, Inc. Real Estate: Overview We believe we are uniquely positioned to be a preferred partner to a sub-set of real estate investors because of our ability to absorb phantom income We view Credit Tenant Lease financings to high quality tenants as an attractive business for GEC for the following reasons: Limited Equity Capital Deployed High Level of Non-Recourse Leverage Monetization of Significant NOLs

Real Estate: Fort Myers – Organic Equity Growth © 2020 Great Elm Capital Group, Inc. Debt and Equity Values ($ in Millions) Multiple of Invested Capital Assuming a constant property value of $61.2 million, the chart at the right depicts the growth in GEC’s equity value as cash flows from the rental stream are utilized to amortize debt over the lease term As you can see, GEC builds significant equity value1 over time without any additional capital deployment (1) Equity value is equal to the property value at acquisition minus the face value of the debt on a given date.

Real Estate: Segment Financial Detail © 2020 Great Elm Capital Group, Inc. (1) Please refer to the disclaimers on slide 2 and the Adjusted EBITDA reconciliation tables in the Appendix

General Corporate © 2020 Great Elm Capital Group, Inc.

General Corporate: Segment Financial Detail © 2020 Great Elm Capital Group, Inc. (1) Please refer to the disclaimers on slide 2 and the Adjusted EBITDA reconciliation tables in the Appendix Great Elm Capital Group, Inc. GC Results General Corporate Financials - Quarter Ended 12/31/19 Revenue: Total revenue $56.972970000000004 MSR Operating costs and expenses: Public company costs -1,175.1078499999999 QTD P&L Stock-based compensation -,109.77499 MSR Depreciation and amortization expense -1 Other general and administrative -62.51119000000017 plug -1,349.3940299999999 MSR A Reconciled as YTD less PQ YTD: SOP YTD PQ YTD Other income (expense): 3,736 3,786 Dividend and interest income 603.34433000000013 QTD P&L 2,182 1,229 Income tax benefit 99 QTD P&L Unrealized loss on GECC investment -,826.39000000004 QTD P&L Total other income (expense) -,123.65605999999991 MSR GAAP Net Loss -1,416.771199999999 0 EBITDA and Free Cash Flow - Quarter Ended 12/31/19 GAAP Net Loss -1,416.771199999999 MNG Adjusted EBITDA: GAAP net income -1,416.771199999999 MNG Management fee -56.972970000000004 Above Stock based compensation 109.77499 Change in Contingent Consideration -,940 Transaction costs and integration 514.80965000000003 GECC Dividends -,603.34433000000013 Unrealized loss, taxes, and depreciation 728.00039000000004 MNG Adjusted EBITDA1 -1,662.8093899999994 0 Levered free cash flow: Adjusted EBITDA -1,662.8093899999994 Transaction costs and integration paid -,514.80965000000003 A GECC Dividends 490 Capital expenditures 0 Levered free cash flow -1,687.6190399999996 -1,688 0.38096000000041386

© 2020 Great Elm Capital Group, Inc. Financial Review

Financial Review: 2Q20 Consolidating Balance Sheets (Unaudited) © 2020 Great Elm Capital Group, Inc. $ in thousands DME Investment Management Real Estate Corporate Eliminations Consolidated ASSETS Cash and cash equivalents, including restricted cash $548.3328600000001 $67.12961 $966.69199000000015 $7,801.9535700000006 $0 $9,384.1080300000012 a Accounts receivable, net 8,164.246189999998 1,110.106499999999 0 261.56671 0 9,535.8235499999973 a Investments at fair value 0 0 0 15,300.669260000001 0 15,300.669260000001 a Inventory 1,752.8965299999998 0 0 0 0 1,752.8965299999998 a Property and equipment, net 10,194.70250000001 38 53,799.40324 4 0 64,035.473490000004 a Identifiable intanglible assets, net 8,576.7648199999967 2,556.8708799999999 5,119.5165099999995 0 0 16,254.152209999997 a Goodwill 50,432.860500000003 0 0 0 0 50,432.860500000003 a 18110 - Goodwill Right of use asset 4,579.63897 1,238.74848 0 0 0 5,819.3874500000002 a Other assets 358.30477000000002 185.63381000000001 1,158.10025 706.52503000000002 -,252.90591000000001 2,155.6579500000003 a Total Assets $84,607.114889999997 $5,197.3934300000001 $61,043.711990000003 $24,075.71457 $-,252.90591000000001 $,174,671.2897000001 a LIABILITIES Accounts payable & accrued liabilities $9,440.7519300000004 $329.57607999999999 $587.25459000000001 $1,231.64213 $-,252.90590999999998 $11,337.31882 a Lease liabilities 4,744.3420600000009 1,359.3494900000001 0 0 0 6,102.6915500000014 a Related party payables 0 0 0 0 0 0 a Long term debt 6,129.1667200000002 0 55,789.818829999997 0 0 61,918.985549999998 a Related party notes payable 25,945.774239999999 3,148 0 0 0 29,093.774239999999 a Equipment financing 1,492.71254 0 0 0 0 1,492.71254 a Intercompany, net (a) 31,525.629159999997 8,228.5671199999997 3,123.8168299999998 ,-42,879.944630000005 0 0 To override to zero Other liabilities 0 0 478 56.52008 0 534.52008000000001 a Total Liabilities 79,279.376649999991 13,066.492689999999 59,978.890249999997 ,-41,590.782420000003 -,252.90590999999998 ,110,481.278 EQUITY 5,327.738240000006 -7,869.2850200000003 1,064.7604100000008 65,666.938870000376 0 64,190.152500000382 a Total Liabilities and Equity $84,607.114889999997 $5,197.2076699999989 $61,043.650659999999 $24,076.156450000373 $-,252.90590999999998 $,174,671.15528000038 (a) Intercompany balances, including intercompany borrowings and GEC investments in subsidiaries. All intercompany balances eliminate in consolidation. $0 $0.18576000000120985 $6.1330000004090834E-2 $-0.44188000037320307 $0 $-0.12631000037072226 84607 5197 61044 23823 $0.11488999999710359 $0.39343000000008033 $-0.28800999999657506 $-0.19133999999991147

Financial Review: 2Q20 Consolidating Income Statement (Unaudited) © 2020 Great Elm Capital Group, Inc. (1) Please refer to the disclaimers on slide 2 and the Adjusted EBITDA reconciliation tables in the Appendix $ in thousands DME Investment Management Real Estate Corporate Eliminations Consolidated Total Revenues $14,390.788430000001 $889.43615 $1,270.99614 $56.972970000000004 $-56.972970000000004 $16,551.220720000001 Cost of revenue -5,873.5020100000002 0 0 0 -5,873.5020100000002 Depreciation and amortization expense -,519.66949999999997 -,179.5248999999998 -,430.47343999999993 -1 -1,130.1954299999998 Selling, general and administration -7,735.6520999999984 -,663.86693999999989 -,126.23549 -1,348.3940299999999 56.972970000000004 -9,817.1755899999971 Total operating costs and expenses ,-14,129.823609999999 -,842.91942999999992 -,555.7089299999999 -1,349.3940299999999 56.972970000000004 ,-16,820.873029999995 Operating income (loss) 260.96482000000105 45.516720000000078 715.28721000000007 -1,292.4210599999999 0 -,269.65230999999869 Dividends and interest income 0 0 0 603.34433000000013 603.34433000000013 Unrealized gain (loss) on investments 0 0 0 -,826.39000000004 -,826.39000000004 Interest expense, net -,936.69194999999991 -41.017910000000001 -,654.68250999999998 0 -1,633.39237 Other income (expense), net 0 0 0 0 0 Income (loss) before taxes -,675.72712999999885 5.498810000000077 59.604700000000093 -1,515.771199999999 0 -2,125.7007399999984 Income tax expense benefit 0 0 0 99 99 Net income (loss), net of tax -,675.72712999999885 5.498810000000077 59.604700000000093 -1,416.771199999999 0 -2,026.7007399999986 Adjusted EBITDA 1 $3,531.6104650000011 $322.98885000000007 $1,144.7606499999999 $-1,648.4650599999998 $0 $3,351.8949050000015 For the three months ended December 31, 2019 $ in thousands DME Investment Management Real Estate Corporate Consolidated EBITDA: Net income (loss) - GAAP $-,675.72712999999885 $5.498810000000077 $59.604700000000093 $-1,416.771199999999 $-2,026.7007399999986 Interest expense 936.69194999999991 41.017910000000001 654.68250999999998 0 1,633.39237 Depreciation & Amortization 2,482.6581000000001 179.05248999999998 430.47343999999993 1 3,093.1840299999999 Income tax expense (benefit) 0 0 0 -99 -99 EBITDA 2,743.6229200000012 224.56921000000006 1,144.7606499999999 -1,514.771199999999 2,599.8756600000015 Adjusted EBITDA Stock based compensation 0 98.419640000000001 0 109.77499 208.19463000000002 Change in contingent consideration 1 0 0 0 -,940 -,940 GECC Unrealized (gains) / losses 0 0 0 826.00039000000004 826.00039000000004 Dividend income from GECC 0 0 0 -,588 -,588 Other (income) expense 0 0 0 0 0 Transaction and integration costs 1 586.41765000000009 0 0 514.80965000000003 1,101.2273 Pharmacy buildout 119.59573499999999 0 0 0 119.59573499999999 DME management and Monitoring fees 81.974160000000012 0 0 -56.972970000000004 25.001190000000008 Adjusted EBITDA $3,531.6104650000011 $322.98885000000007 $1,144.7606499999999 $-1,648.4650599999998 $3,351.8949050000015 For the six months ended December 31, 2019 $ in thousands DME Investment Management Real Estate Corporate Consolidated EBITDA: Net income (loss) - GAAP $-1,495.4662600000024 $-39.663900000000098 $120.49799999999993 $-3,889.80791 $-5,305.4400700000024 Interest expense 1,932.5590099999999 83.28304 1,313.3767500000001 0 3,329.2188000000001 Depreciation & Amortization 4,990.7662099999998 358.02932999999996 861.94690999999989 1 6,211.7424499999997 Income tax expense (benefit) 0 0 0 142.601 142.601 EBITDA 5,428.8589599999978 400.64846999999986 2,294.8216599999996 -3,746.2069099999999 4,379.1221799999976 Adjusted EBITDA Stock based compensation 0 273.67660999999998 0 227.88166999999999 501.55827999999997 Change in contingent consideration 1 0 0 0 -1,135 -1,135 GECC Unrealized (gains) / losses 0 0 0 1,809.3338899999999 1,809.3338899999999 Dividend income from GECC 0 0 0 -1,078 -1,078 Other (income) expense -2.7766999999999999 0 0 0 -2.7766999999999999 Transaction and integration costs 1 736.44268000000011 0 0 635.22671000000003 1,370.66939 Pharmacy buildout 254.48178499999997 0 0 0 254.48178499999997 DME management and Monitoring fees 129.92299000000003 0 0 -79.922970000000007 50.000020000000021 Adjusted EBITDA $6,545.9297149999975 $675.32507999999984 $2,294.8216599999996 $-3,366.6876100000004 $6,149.3888449999977 For the three months ended September 30, 2019 $ in thousands DME Investment Management Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-,818.73913000000346 $-45.162710000000175 $59.89329999999984 $-2,473.7307900000001 $-3,277.739330000004 Interest expense 995.86706000000004 42.265129999999999 657.69424000000015 0 1,695.8264300000001 Depreciation & Amortization 2,508.1081100000001 178.97684000000001 431.47346999999996 0 3,117.5584200000003 Tax expense 0 0 0 241.601 241.601 EBITDA 2,685.2360399999966 176.07925999999983 1,149.610099999999 -2,232.12979 1,778.2465199999965 Adjusted EBITDA Unrecognized incentive fees 1 0 655 0 0 655 Stock based compensation 0 175.25697 0 118.10668 293.36365000000001 Change in contingent consideration 2 0 0 0 -,195 -,195 GECC Unrealized (gains) / losses 0 0 0 983.33349999999996 983.33349999999996 Dividend income from GECC 0 0 0 -,490 -,490 Other (income) expense -2.7766999999999999 0 0 0 -2.7766999999999999 Transaction and integration costs 2 150.02502999999999 0 0 120.41705999999999 269.44209000000001 Pharmacy buildout 134.88604999999998 0 0 0 134.88604999999998 DME management and Monitoring fees 47.948830000000001 0 0 -22.95 24.998830000000002 Adjusted EBITDA $3,015.3192499999964 $1,006.3362299999999 $1,149.610099999999 $-1,719.2225500000002 $3,451.4939399999962

Summary © 2020 Great Elm Capital Group, Inc.

© 2020 Great Elm Capital Group, Inc. Summary: Drivers of Shareholder Value Seek to enhance the value of our existing property through property improvement and lease modification Operating Companies Real Estate Investment Management Focus on growing Great Elm DME, Inc. both organically and via an expansion strategy that targets existing and adjacent markets Continue to strengthen Great Elm DME, Inc.’s scalable infrastructure, investing in people, processes and technology to support multiple acquisitions per year Focus on driving asset growth in GECC and raising capital for SMAs / other investment vehicles Leverage the existing team and infrastructure to generate incremental free cash flow

Q&A © 2020 Great Elm Capital Group, Inc.

Appendix © 2020 Great Elm Capital Group, Inc.

Appendix: Non-GAAP Reconciliation © 2020 Great Elm Capital Group, Inc. For the three months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-,675.72712999999885 $5.498810000000077 $59.604700000000093 $-1,416.771199999999 $-2,026.7007399999986 Interest expense 936.69194999999991 41.017910000000001 654.68250999999998 0 1,633.39237 Depreciation & amortization 2,482.6581000000001 179.05248999999998 430.47343999999993 1 3,093.1840299999999 Income tax expense (benefit) 0 0 0 -99 -99 EBITDA $2,743.6229200000012 $224.56921000000006 $1,144.7606499999999 $-1,514.771199999999 $2,599.8756600000015 Adjusted EBITDA: Stock based compensation 0 98.419640000000001 0 109.77499 208.19463000000002 Change in contingent consideration 2 0 0 0 -,940 -,940 GECC Unrealized (gains) / losses 0 0 0 826.00039000000004 826.00039000000004 Dividend income from GECC 0 0 0 -,588 -,588 Transaction and integration costs 2 586.41765000000009 0 0 514.80965000000003 1,101.2273 Pharmacy buildout 119.59573499999999 0 0 0 119.59573499999999 DME management and Monitoring fees 81.974160000000012 0 0 -56.972970000000004 25.001190000000008 Adjusted EBITDA $3,531.6104650000011 $322.98885000000007 $1,144.7606499999999 $-1,648.4650599999998 $3,351.8949050000015 For the six months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-1,495.4662600000024 $-39.663900000000098 $120.49799999999993 $-3,889.80791 $-5,305.4400700000024 Interest expense 1,932.5590099999999 83.28304 1,313 0 3,329 Depreciation & amortization 4,990.7662099999998 358.02932999999996 861.94690999999989 1 6,211.7424499999997 Income tax expense (benefit) 0 0 0 142.601 142.601 EBITDA $5,428.8589599999978 $400.64846999999986 $2,295 $-3,746.2069099999999 $4,379 Adjusted EBITDA: Stock based compensation 0 273.67660999999998 0 227.88166999999999 501.55827999999997 Change in contingent consideration 2 0 0 0 -1,135 -1,135 GECC Unrealized (gains) / losses 0 0 0 1,809.3338899999999 1,809.3338899999999 Dividend income from GECC 0 0 0 -1,078 -1,078 Other (income) expense -2.7766999999999999 0 0 0 -2.7766999999999999 Transaction and integration costs 2 736.44268000000011 0 0 635.22671000000003 1,370.66939 Pharmacy buildout 254.48178499999997 0 0 0 254.48178499999997 DME management and Monitoring fees 129.92299000000003 0 0 -79.922970000000007 50.000020000000021 Adjusted EBITDA $6,545.9297149999975 $674.32507999999984 $2,295 $-3,366.6876100000004 $6,148.5671849999962 For the three months ended December 31, 2018 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $399 $-7 $38 $-4,706 $-4,276 Interest expense 1,081 44 663 0 1,788 Depreciation & amortization 2,142 137 431 0 2,710 Income tax expense (benefit) 0 0 0 0 0 EBITDA $3,622 $174 $1,132 $-4,706 $222 Adjusted EBITDA: Stock based compensation 0 37 0 132 169 GECC Unrealized (gains) / losses 331 0 0 3,308 3,639 Dividend income from GECC -,375 0 0 -,586 -,961 Transaction and integration costs 2 2 0 0 135 137 DME management and monitoring fees 52 0 0 -52 0 Adjusted EBITDA $3,632 $211 $1,132 $-1,769 $3,206 For the six months ended December 31, 2018 $ in thousands Durable Medical Equipment 3 Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $426 $-,696 $89 $-6,104 $-6,285 Interest expense 1,367 88 1,328 0 2,783 Depreciation & amortization 2,565 273 862 0 3,700 Income tax expense (benefit) 0 0 0 0 0 EBITDA $4,358 $-,335 $2,279 $-6,104 $198 Adjusted EBITDA: Stock based compensation 0 582 0 260 842 GECC Unrealized (gains) / losses 411 0 0 2,323 2,734 Dividend income from GECC -,431 0 0 -1,020 -1,451 Transaction and integration costs 2 544 0 0 1,459 2,003 DME management and Monitoring fees 70 0 0 -70 0 Adjusted EBITDA $4,952 $247 $2,279 $-3,152 $4,326

Appendix: Non-GAAP Reconciliation (Continued) © 2020 Great Elm Capital Group, Inc. For the three months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-,675.72712999999885 $5.498810000000077 $59.604700000000093 $-1,416.771199999999 $-2,026.7007399999986 Interest expense 936.69194999999991 41.017910000000001 654.68250999999998 0 1,633.39237 Depreciation & amortization 2,482.6581000000001 179.05248999999998 430.47343999999993 1 3,093.1840299999999 Income tax expense (benefit) 0 0 0 -99 -99 EBITDA $2,743.6229200000012 $224.56921000000006 $1,144.7606499999999 $-1,514.771199999999 $2,599.8756600000015 Adjusted EBITDA: Stock based compensation 0 98.419640000000001 0 109.77499 208.19463000000002 Change in contingent consideration 2 0 0 0 -,940 -,940 GECC Unrealized (gains) / losses 0 0 0 826.00039000000004 826.00039000000004 Dividend income from GECC 0 0 0 -,588 -,588 Transaction and integration costs 2 586.41765000000009 0 0 514.80965000000003 1,101.2273 Pharmacy buildout 119.59573499999999 0 0 0 119.59573499999999 DME management and Monitoring fees 81.974160000000012 0 0 -56.972970000000004 25.001190000000008 Adjusted EBITDA $3,531.6104650000011 $322.98885000000007 $1,144.7606499999999 $-1,648.4650599999998 $3,351.8949050000015 For the six months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-1,495.4662600000024 $-39.663900000000098 $120.49799999999993 $-3,889.80791 $-5,305.4400700000024 Interest expense 1,932.5590099999999 83.28304 1,313 0 3,329 Depreciation & amortization 4,990.7662099999998 358.02932999999996 861.94690999999989 1 6,211.7424499999997 Income tax expense (benefit) 0 0 0 142.601 142.601 EBITDA $5,428.8589599999978 $400.64846999999986 $2,295 $-3,746.2069099999999 $4,379 Adjusted EBITDA: Stock based compensation 0 273.67660999999998 0 227.88166999999999 501.55827999999997 Change in contingent consideration 2 0 0 0 -1,135 -1,135 GECC Unrealized (gains) / losses 0 0 0 1,809.3338899999999 1,809.3338899999999 Dividend income from GECC 0 0 0 -1,078 -1,078 Other (income) expense -2.7766999999999999 0 0 0 -2.7766999999999999 Transaction and integration costs 2 736.44268000000011 0 0 635.22671000000003 1,370.66939 Pharmacy buildout 254.48178499999997 0 0 0 254.48178499999997 DME management and Monitoring fees 129.92299000000003 0 0 -79.922970000000007 50.000020000000021 Adjusted EBITDA $6,545.9297149999975 $674.32507999999984 $2,295 $-3,366.6876100000004 $6,148.5671849999962 For the three months ended December 31, 2018 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $399 $-7 $38 $-4,706 $-4,276 Interest expense 1,081 44 663 0 1,788 Depreciation & amortization 2,142 137 431 0 2,710 Income tax expense (benefit) 0 0 0 0 0 EBITDA $3,622 $174 $1,132 $-4,706 $222 Adjusted EBITDA: Stock based compensation 0 37 0 132 169 GECC Unrealized (gains) / losses 331 0 0 3,308 3,639 Dividend income from GECC -,375 0 0 -,586 -,961 Transaction and integration costs 2 2 0 0 135 137 DME management and monitoring fees 52 0 0 -52 0 Adjusted EBITDA $3,632 $211 $1,132 $-1,769 $3,206 For the six months ended December 31, 2018 $ in thousands Durable Medical Equipment 3 Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $426 $-,696 $89 $-6,104 $-6,285 Interest expense 1,367 88 1,328 0 2,783 Depreciation & amortization 2,565 273 862 0 3,700 Income tax expense (benefit) 0 0 0 0 0 EBITDA $4,358 $-,335 $2,279 $-6,104 $198 Adjusted EBITDA: Stock based compensation 0 582 0 260 842 GECC Unrealized (gains) / losses 411 0 0 2,323 2,734 Dividend income from GECC -,431 0 0 -1,020 -1,451 Transaction and integration costs 2 544 0 0 1,459 2,003 DME management and Monitoring fees 70 0 0 -70 0 Adjusted EBITDA $4,952 $247 $2,279 $-3,152 $4,326

Appendix: Non-GAAP Reconciliation (Continued) © 2020 Great Elm Capital Group, Inc. For the three months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-,675.72712999999885 $5.498810000000077 $59.604700000000093 $-1,416.771199999999 $-2,026.7007399999986 Interest expense 936.69194999999991 41.017910000000001 654.68250999999998 0 1,633.39237 Depreciation & amortization 2,482.6581000000001 179.05248999999998 430.47343999999993 1 3,093.1840299999999 Income tax expense (benefit) 0 0 0 -99 -99 EBITDA $2,743.6229200000012 $224.56921000000006 $1,144.7606499999999 $-1,514.771199999999 $2,599.8756600000015 Adjusted EBITDA: Stock based compensation 0 98.419640000000001 0 109.77499 208.19463000000002 Change in contingent consideration 2 0 0 0 -,940 -,940 GECC Unrealized (gains) / losses 0 0 0 826.00039000000004 826.00039000000004 Dividend income from GECC 0 0 0 -,588 -,588 Transaction and integration costs 2 586.41765000000009 0 0 514.80965000000003 1,101.2273 Pharmacy buildout 119.59573499999999 0 0 0 119.59573499999999 DME management and Monitoring fees 81.974160000000012 0 0 -56.972970000000004 25.001190000000008 Adjusted EBITDA $3,531.6104650000011 $322.98885000000007 $1,144.7606499999999 $-1,648.4650599999998 $3,351.8949050000015 For the six months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-1,495.4662600000024 $-39.663900000000098 $120.49799999999993 $-3,889.80791 $-5,305.4400700000024 Interest expense 1,932.5590099999999 83.28304 1,313 0 3,329 Depreciation & amortization 4,990.7662099999998 358.02932999999996 861.94690999999989 1 6,211.7424499999997 Income tax expense (benefit) 0 0 0 142.601 142.601 EBITDA $5,428.8589599999978 $400.64846999999986 $2,295 $-3,746.2069099999999 $4,379 Adjusted EBITDA: Stock based compensation 0 273.67660999999998 0 227.88166999999999 501.55827999999997 Change in contingent consideration 2 0 0 0 -1,135 -1,135 GECC Unrealized (gains) / losses 0 0 0 1,809.3338899999999 1,809.3338899999999 Dividend income from GECC 0 0 0 -1,078 -1,078 Other (income) expense -2.7766999999999999 0 0 0 -2.7766999999999999 Transaction and integration costs 2 736.44268000000011 0 0 635.22671000000003 1,370.66939 Pharmacy buildout 254.48178499999997 0 0 0 254.48178499999997 DME management and Monitoring fees 129.92299000000003 0 0 -79.922970000000007 50.000020000000021 Adjusted EBITDA $6,545.9297149999975 $674.32507999999984 $2,295 $-3,366.6876100000004 $6,148.5671849999962 For the three months ended December 31, 2018 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $399 $-7 $38 $-4,706 $-4,276 Interest expense 1,081 44 663 0 1,788 Depreciation & amortization 2,142 137 431 0 2,710 Income tax expense (benefit) 0 0 0 0 0 EBITDA $3,622 $174 $1,132 $-4,706 $222 Adjusted EBITDA: Stock based compensation 0 37 0 132 169 GECC Unrealized (gains) / losses 331 0 0 3,308 3,639 Dividend income from GECC -,375 0 0 -,586 -,961 Transaction and integration costs 2 2 0 0 135 137 DME management and monitoring fees 52 0 0 -52 0 Adjusted EBITDA $3,632 $211 $1,132 $-1,769 $3,206 For the six months ended December 31, 2018 $ in thousands Durable Medical Equipment 3 Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $426 $-,696 $89 $-6,104 $-6,285 Interest expense 1,367 88 1,328 0 2,783 Depreciation & amortization 2,565 273 862 0 3,700 Income tax expense (benefit) 0 0 0 0 0 EBITDA $4,358 $-,335 $2,279 $-6,104 $198 Adjusted EBITDA: Stock based compensation 0 582 0 260 842 GECC Unrealized (gains) / losses 411 0 0 2,323 2,734 Dividend income from GECC -,431 0 0 -1,020 -1,451 Transaction and integration costs 2 544 0 0 1,459 2,003 DME management and Monitoring fees 70 0 0 -70 0 Adjusted EBITDA $4,952 $247 $2,279 $-3,152 $4,326

Appendix: Non-GAAP Reconciliation (Continued) © 2020 Great Elm Capital Group, Inc. For the three months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-,675.72712999999885 $5.498810000000077 $59.604700000000093 $-1,416.771199999999 $-2,026.7007399999986 Interest expense 936.69194999999991 41.017910000000001 654.68250999999998 0 1,633.39237 Depreciation & amortization 2,482.6581000000001 179.05248999999998 430.47343999999993 1 3,093.1840299999999 Income tax expense (benefit) 0 0 0 -99 -99 EBITDA $2,743.6229200000012 $224.56921000000006 $1,144.7606499999999 $-1,514.771199999999 $2,599.8756600000015 Adjusted EBITDA: Stock based compensation 0 98.419640000000001 0 109.77499 208.19463000000002 Change in contingent consideration 2 0 0 0 -,940 -,940 GECC Unrealized (gains) / losses 0 0 0 826.00039000000004 826.00039000000004 Dividend income from GECC 0 0 0 -,588 -,588 Transaction and integration costs 2 586.41765000000009 0 0 514.80965000000003 1,101.2273 Pharmacy buildout 119.59573499999999 0 0 0 119.59573499999999 DME management and Monitoring fees 81.974160000000012 0 0 -56.972970000000004 25.001190000000008 Adjusted EBITDA $3,531.6104650000011 $322.98885000000007 $1,144.7606499999999 $-1,648.4650599999998 $3,351.8949050000015 For the six months ended December 31, 2019 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate Consolidated EBITDA: Net income (loss) - GAAP $-1,495.4662600000024 $-39.663900000000098 $120.49799999999993 $-3,889.80791 $-5,305.4400700000024 Interest expense 1,932.5590099999999 83.28304 1,313 0 3,329 Depreciation & amortization 4,990.7662099999998 358.02932999999996 861.94690999999989 1 6,211.7424499999997 Income tax expense (benefit) 0 0 0 142.601 142.601 EBITDA $5,428.8589599999978 $400.64846999999986 $2,295 $-3,746.2069099999999 $4,379 Adjusted EBITDA: Stock based compensation 0 273.67660999999998 0 227.88166999999999 501.55827999999997 Change in contingent consideration 2 0 0 0 -1,135 -1,135 GECC Unrealized (gains) / losses 0 0 0 1,809.3338899999999 1,809.3338899999999 Dividend income from GECC 0 0 0 -1,078 -1,078 Other (income) expense -2.7766999999999999 0 0 0 -2.7766999999999999 Transaction and integration costs 2 736.44268000000011 0 0 635.22671000000003 1,370.66939 Pharmacy buildout 254.48178499999997 0 0 0 254.48178499999997 DME management and Monitoring fees 129.92299000000003 0 0 -79.922970000000007 50.000020000000021 Adjusted EBITDA $6,545.9297149999975 $674.32507999999984 $2,295 $-3,366.6876100000004 $6,148.5671849999962 For the three months ended December 31, 2018 $ in thousands Durable Medical Equipment Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $399 $-7 $38 $-4,706 $-4,276 Interest expense 1,081 44 663 0 1,788 Depreciation & amortization 2,142 137 431 0 2,710 Income tax expense (benefit) 0 0 0 0 0 EBITDA $3,622 $174 $1,132 $-4,706 $222 Adjusted EBITDA: Stock based compensation 0 37 0 132 169 GECC Unrealized (gains) / losses 331 0 0 3,308 3,639 Dividend income from GECC -,375 0 0 -,586 -,961 Transaction and integration costs 2 2 0 0 135 137 DME management and monitoring fees 52 0 0 -52 0 Adjusted EBITDA $3,632 $211 $1,132 $-1,769 $3,206 For the six months ended December 31, 2018 $ in thousands Durable Medical Equipment 3 Investment Management 1 Real Estate General Corporate 4 Consolidated EBITDA: Net income (loss) - GAAP $426 $-,696 $89 $-6,104 $-6,285 Interest expense 1,367 88 1,328 0 2,783 Depreciation & amortization 2,565 273 862 0 3,700 Income tax expense (benefit) 0 0 0 0 0 EBITDA $4,358 $-,335 $2,279 $-6,104 $198 Adjusted EBITDA: Stock based compensation 0 582 0 260 842 GECC Unrealized (gains) / losses 411 0 0 2,323 2,734 Dividend income from GECC -,431 0 0 -1,020 -1,451 Transaction and integration costs 2 544 0 0 1,459 2,003 DME management and Monitoring fees 70 0 0 -70 0 Adjusted EBITDA $4,952 $247 $2,279 $-3,152 $4,326

Appendix: Non-GAAP Reconciliation (Continued) © 2020 Great Elm Capital Group, Inc. Prior year non-GAAP adjustments have been updated to conform to current year presentation by removing adjustments associated with the adoption of ASC 606 Contracts with Customers. Acquisition and integration related costs include transaction costs, costs to integrate acquired businesses and changes in the fair value of the contingent consideration liability since the initial valuation at the acquisition date. Our durable medical equipment business began in September 2018 and there was no related activity prior to that date. General Corporate net loss includes net loss attributable to discontinued operations.

Appendix: Contact Information Investor Relations 800 South Street, Suite 230 Waltham, MA 02453 Phone: +1 (617) 375-3006 investorrelations@greatelmcap.com © 2020 Great Elm Capital Group, Inc.