GECC 10-K & 10-Q changes, risk factors and insider trading

Our portfolio companies may experience financial distress and our investments in such companies may be restructured. Our portfolio companies have experienced in the past and may in the future experience financial distress from time to time. Debt investments in such companies may cease to be income-producing, may require us to bear certain expenses to protect our investment and may subject us to uncertainty as to when, in what manner and for what value such distressed debt will eventually be satisfied, including through liquidation, reorganization or bankruptcy. Any restructuring can fundamentally alter the nature of the related investment, and restructurings may not be subject to the same underwriting standards that GECM employs in connection with the origination of an investment. In addition, we may write-down the value of our investment in any such company to reflect the status of financial distress and future prospects of the business. Any restructuring could alter, reduce or delay the payment of interest or principal on any investment, which could delay the timing and reduce the amount of payments made to us. For example, if an exchange offer is made or plan of reorganization is adopted with respect to the debt securities we currently hold, there can be no assurance that the securities or other assets received by us in connection with such exchange offer or plan of reorganization will have a value or income potential similar to what we anticipated when our original investment was made or even at the time of restructuring. Restructurings of investments might also result in extensions of the term thereof, which could delay the timing of payments made to us, or we may receive equity securities, which may require significantly more of our management’s time and attention or carry restrictions on their disposition.

We are invested in a limited number of portfolio companies which may subject us to a risk of significant loss if one or more of these companies defaults on its obligations under any of its debt instruments. Our portfolio is likely to holdholds a limited number of portfolio companies. Beyond the asset diversification requirements associated with qualifying as a RIC, we do not have fixed guidelines for diversification, and our investments are likely to be concentrated in relatively few companies. As our portfolio is less diversified than the portfolios of some funds, we are more susceptible to failure if a single investment fails. Similarly, the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment.

Our portfolio is subject to change over time and may be concentrated in a limited number of industries, which subjects us to a risk of significant loss if there is a downturn in a particular industry in which a number of our investments are concentrated. Our portfolio is likely to be concentrated in a limited number of industries. A downturn in any particular industry in which we are invested could significantly impact our aggregate realized returns. WeFor may concentrateexample, our investments in issuers that are part of the structured finance industry and the specialty finance industry,industry which representsrepresented approximately 13.3%16.0% and 12.9%, respectively, of our total investments at fair value as of December 31, 2024.2025. Such concentration may change as a result of additional investments in, or divestments in, the specialty finance industry and/or fluctuations in the fair value of our investments in the specialty finance industry and other industries.

Our investments may be risky, and we could lose all or part of our investments. Our equity and debt investments are risky. Our debt portfolios, including those held by our specialty finance companies, are subject to credit and interest rate risk. “Credit risk” refers to the likelihood that an issuer will default in the payment of principal and/or interest on an instrument. Financial strength and solvency of an issuer are the primary factors influencing credit risk. In addition, subordination, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument, and securities which are rated by rating agencies are often reviewed and may be subject to downgrade. “Interest rate risk” refers to the risks associated with market changes in interest rates. Factors that may affect market interest rates include, without limitation, inflation, slow or stagnant economic growth or recession, unemployment, money supply and the monetary policies of the Federal Reserve Board and central banks throughout the world, international disorders and instability in domestic and foreign financial markets. Beginning in late 2024, the Federal Reserve Board began to lower interest rates from the elevated levels earlier in the year and continued lowering rates during 2025. The Federal Reserve Board has sincemaintained raisedinterest rates during the federalfirst fundsfew ratemonths of 2026, and may raise, maintain or lower the federal funds rate in the future. These developments, along with domestic and international debt and credit concerns, could cause interest rates to be volatile, which may negatively impact our ability to access the debt markets on favorable terms. Interest rate changes may also affect the value of a debt instrument indirectly (especially in the case of fixed rate securities) and directly (especially in the case of instruments whose rates are adjustable). In general, rising interest rates will negatively impact the price of a fixed-rate debt instrument and falling interest rates will have a positive effect on price. Adjustable rate instruments may also react to interest rate changes in a similar manner although generally to a lesser degree (depending, however, on the characteristics of the reset terms, including, among other factors, the index chosen, frequency of reset and reset caps or floors). Interest rate sensitivity is generally more pronounced and less predictable in instruments with uncertain payment or prepayment schedules. We expect that we will periodically experience imbalances in the interest rate sensitivities of our assets and liabilities and the relationships of various interest rates to each other. In a changing interest rate environment, we may not be able to manage this risk effectively, which in turn could adversely affect our performance.

Defaults by our portfolio companies may harm our operating results. A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of our investments and foreclosure on our secured assets, which could trigger cross‑defaults under other agreements and jeopardize a portfolio company’s ability to meet its obligations under the debt or equity securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of financial covenants, with a defaulting portfolio company. If any of these occur, it could materially and adversely affect our operating results and cash flows. See also "Our investments may be risky, and we could lose all or part of our investments."

If we invest in companies that experience significant financial or business difficulties, we may be exposed to certain distressed lending risks. As part of our lending activities, we may purchase notes or loans from companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Although the terms of such financing may result in significant financial returns to us, they involve a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies experiencing significant business and financial difficulties is unusually high. We cannot assure you that we will correctly evaluate the value of the assets collateralizing our investments or the prospects for a successful reorganization or similar action. In any reorganization or liquidation proceeding relating to a portfolio company, we may lose all or part of the amounts advanced to the borrower or may be required to accept collateral with a value less than the amount of the investment advanced by us to the borrower. See also "Our investments may be risky, and we could lose all or part of our investments."

We may not realize gains from our equity investments. Our portfolio may include common stock, warrants or other equity securities.securities from time to time. We may also take back equity securities in exchange for our debt investments in workouts of troubled investments. Investments in equity securities involve a number of significant risks, including the risk of further dilution as a result of additional issuances, inability to access additional capital and failure to pay current distributions. Investments in preferred securities involve special risks, such as the risk of deferred distributions, credit risk, illiquidity and limited voting rights. In addition, we may from time to time make non‑control, equity investments in portfolio companies. The equity interests we invest in may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the underlying equity interests. We may seek puts or similar rights to give it the right to sell our equity securities back to the portfolio company. We may be unable to exercise these put rights if the issuer is in financial distress or otherwise lacks sufficient liquidity to purchase the underlying equity investment.

We and/or our portfolio companies may be materially and adversely impacted by global climate change. Climate change is widely considered to be a significant threat to the global economy. Our business operations and our portfolio companies may face risks associated with climate change, including risks related to the impact of climate-related legislation and regulation (both domestically and internationally), risks related to climate-related business trends (such as the process of transitioning to a lower-carbon economy), and risks stemming from the physical impacts of climate change, such as the increasing frequency or severity of extreme weather events and rising sea levels and temperatures. These events and the disruptions they cause, alone or in combination, could also lead to increased costs of insurance for us and/or our portfolio companies.

Economic recessions or downturns could impair our portfolio companies and harm our operating results. The current economy is subject to periodic downturns that, from time to time, result in recessions or more serious adverse macroeconomic events. For example, many countries and industries around the globe experienced downturns and contractions as they grappled with the short- and long-term economic impacts of the COVID-19 pandemic, elevated inflation, supply chain challenges, labor shortages,market highshortages and disputes, changes in interest rates, uncertainty related to evolving tariff and trade policies, geopolitical tensions, inflationary pressures, foreign currency exchange volatility,fluctuations, and periods of volatility in global capital markets. Our portfolio companies are susceptible to economic slowdowns or recessions and may be unable to repay loans or notes during these periods. Therefore, our non‑performing assets may increase and the value of our portfolio may decrease during these periods as we are required to record the market value of our investments. Adverse economic conditions may also decrease the value of collateral securing some of our investments and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing investments and harm our operating results.

A portfolio company’s failure to satisfy financial or operating covenants in its agreements with us or other lenders could lead to defaults and, potentially, acceleration of the time when the debt obligations are due and foreclosure on its secured assets, which could trigger cross‑defaults under other agreements and jeopardize the portfolio company’s ability to meet its obligations under the debt that we hold. We may incur additional expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. In addition, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, including the extent to which we actually provided significant managerial assistance to that portfolio company, a bankruptcy court might re-characterize our debt holding and subordinate all or a portion of our claim to that of other creditors. See also "Defaults by our portfolio companies may harm our operating results" and "There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims."

Global economic, political and market conditions may adversely affect our business, results of operations and financial condition, including our revenue growth and profitability. The condition of the global financial market, as well as various social and political tensions in the United States and around the world, may contribute to increased market volatility, may have long-term effects on the U.S. and worldwide financial markets, may cause economic uncertainties or deterioration in the United States and worldwide, and may subject our investments to heightened risks. For example, the United States enacted significant new tariffs beginning in the first quarter of 2025, which led to significant volatility in global markets during the year. Further, the current U.S. Presidential administration has continued to propose additional significant tariffs as well as evaluate key aspects of U.S. trade policy, treaties and tariffs. Concerns over future increases in inflation, economic recession, as well as interest rate volatility and fluctuations in oil and gas prices resulting from global production and demand levels, as well as geopolitical tension, have exacerbated market volatility. Market volatility has been further exacerbated by social unrest, changes regarding immigration and work permit policies and other political and security concerns both in the United States and across various international regions. Because of interrelationships within the global financial markets, if these issues do not abate, or they worsen or spread, our and our portfolio companies, businesses may be adversely affected both within and outside of the directly affected regions These heightened risks could also include to: increased risk of default; greater social, trade, economic and political instability (including the risk of war or terrorist activity); greater governmental involvement in the economy; greater governmental supervision and regulation of the securities markets and market participants resulting in increased expenses related to compliance; greater fluctuations in currency exchange rates; controls or restrictions on foreign investment and/or trade, capital controls and limitations on repatriation of invested capital and on the ability to exchange currencies; inability to purchase and sell investments or otherwise settle transactions (i.e., a market freeze); and unavailability of hedging techniques. During times of political uncertainty and/or change, global markets often become more volatile. Markets experiencing political uncertainty and/or change could have substantial, and in some periods extremely high, rates of inflation for many years. Inflation and rapid fluctuations in inflation rates typically have negative effects on such countries’ economies and markets. Tax laws could change materially, and any changes in tax laws could have an unpredictable effect on us, our investments and our investors. Any of these risks could have a material adverse effect on our business, financial condition and result of operations.

More generally, market prices of OID instruments are more volatile because they are impacted to a greater extent by interest rate changes than instruments that pay interest periodically in cash. Ordinarily, OID would also create the risk of non-refundable cash payments to GECM based on non-cash accruals that may never be realized; however, this risk is mitigated since the Investment Management Agreement requires GECM to defer any incentive fees on Accrued Unpaid Income (as defined below), the effect of which is that Income Incentive Fees otherwise payable with respect to Accrued Unpaid Income become payable only if, as, when and to the extent cash is received by us or our consolidated subsidiaries in respect thereof.

There is, and will be, uncertainty as to the value of our portfolio investments. Under the Investment Company Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us in accordance with our written valuation policy, with ourGECM, Boardas valuation designee, having final responsibility for overseeing, reviewing and approving, in good faith, our estimate of fair value. Often, there will not be a public market for the securities of the privately held companies in which we invest. As a result, we will value these securities on a quarterly basis at fair value based on input from management, third party independent valuation firms and our audit committee, with the oversight, review and approval of ourGECM, Board.as valuation designee. We consult with an independent valuation firm in valuing all securities in which we invest classified as “Level 3,” other than investments which are less than 1% of NAV as of the applicable quarter end. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Valuation of Portfolio Investments.”

The failure in cyber security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning,planning affecting us or our third-party service providers, could impair our ability to conduct business effectively. The occurrence of a disaster such as a cyber‑attack, a natural catastrophe, an epidemic or pandemic, an industrial accident, a terrorist attack or war, events anticipated or unanticipated in our disaster recovery systems, or a failure in externally provided data systems, could have an adverse effect on our ability to conduct business and on our results of operations and financial condition, particularly if those events affect our computer‑based data processing, transmission, storage and retrieval systems or destroy data. Our ability to effectively conduct our business could be severely compromised. The financial markets we operate in are dependent upon third party data systems to link buyers and sellers and provide pricing information.

We depend heavily upon computer systems to perform necessary business functions. Our computer systems could be subject to cyber‑attacks and unauthorized access, such as physical and electronic break‑ins or unauthorized tampering.tampering, particularly as threat actors use artificial intelligence technologies to deploy these attacks. Artificial intelligence tools may also be susceptible to new forms of cyber attacks, such as prompt injection attacks, which may increase our cyber security risks where we implement artificial intelligence technologies in our business. Like other companies, we expect to experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. These failures and disruptions may be more likely to occur as a result of employees working remotely. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our operations, which could result in damage to our reputation, financial losses, litigation, increased costs, regulatory penalties and/or customer dissatisfaction or loss, respectively.

Terrorist attacks, acts of war, natural disasters or an epidemic or pandemic may affect the market for our securities, impact the businesses in which we invest and harm our business, operating results and financial condition. Terrorist acts, acts of war, natural disasters or an epidemic or pandemic may disrupt our operations, as well as the operations of the businesses in which we invest. Such acts, including, for example, Russia’s February 2022 invasion of Ukraine and conflicts and political unrest in the Middle East,East and South America, have created, and continue to create, economic and political uncertainties and have contributed to global economic instability. In addition, social unrest, changes regarding immigration and work permit policies and other political and security concerns may not abate, which may cause the debt and equity capital markets and our business to be adversely affected both within and outside of regions experiencing ongoing conflicts. Additionally, a public health epidemic or pandemic, poses the risk that we, GECM, our portfolio companies or other business partners may be prevented from conducting business activities for an indefinite period of time, including due to shutdowns that may be requested or mandated by governmental authorities. While it is not possible at this time to estimate the impact that any such event could have on our business, the continued occurrence thereof and the measures taken by the governments of countries affected in response thereto could disrupt theglobal markets, supply chainchains and the manufacture or shipment of products and adversely impact our business, financial condition or results of operations.operations or those of our portfolio companies.

Our participation in any negotiated co-investment opportunities (other than those in which the only term negotiated is price) with investment funds managed by investment managers under common control with GECM (as well as with proprietary accounts of an affiliate of GECM) is subject to compliance with the SEC order dated OctoberJuly 2,18, 20242025 (the “Exemptive Relief Order”). The allocation of all or a portion of an investment opportunity to co-investors could result in lower returns for us than had we taken the full opportunity for ourself. There may be certain investment opportunities that fall outside the scope of the Exemptive Relief Order or otherwise may not be permitted to be allocated to us. Accordingly, we may not be able to participate in all investment opportunities that GECM determines would otherwise be suitable for us.

Shares of closed-end investment companies, including BDCs, frequently trade at a discount from their NAV. Shares of closed-end investment companies, including BDCs, frequently trade at a discount from their NAV. This characteristic of closed-end investment companies is separate and distinct from the risk that our NAV per share of common stock may decline. It is not possible to accurately predict whether any shares of our common stock will trade at, above, or below NAV. In the recent past, the stocks of BDCs as an industry, including at times shares of our common stock, have traded belowat NAV.a discount to NAV, which at times, has been significant.

Our stockholders may not receive distributions or our distributions may not grow over time and a portion of our distributions may be a return of capital. We intend to make distributions to our stockholders out of assets legally available for distribution (i.e., not subject to any legal restrictions under Maryland law on the distribution thereof). We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this document. Due to the asset coverage test applicable to us under the Investment Company Act as a BDC, we may be limited in our ability to make distributions. In addition, pursuant to covenants in the indentures governing our outstanding debt securities, we have agreed to only make distributions to our stockholders when our asset coverage is at least equal to the150%, thresholdas set forth in the Investment Company Act, subject to certain exceptions.

Future offerings of debt securities, which would be senior to our common stock upon liquidation, or equity securities, which could dilute our existing stockholders and may be senior to our common stock for the purposes of distributions, may harm the value of our common stock. We have in the past increased our capital resources through debt and equity offerings. In the future, we may attempt to increase our capital resources by making additional offerings of debt or equity securities, including commercial paper, medium-term notes, senior or subordinated notes and classes of preferred stock or common stock, subject to the restrictions of the Investment Company Act. Upon a liquidation of our company, holders of our debt securities and shares of preferred stock and lenders with respect to other borrowings would receive a distribution of our available assets prior to the holders of our common stock. Additional equity offerings by us may dilute the holdings of our existing stockholders or reduce the value of our common stock, or both. Any preferred stock we may issue would have a preference on distributions that could limit our ability to make distributions to the holders of our common stock. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders bear the risk of our future offerings reducing the market price of our common stock and diluting their stock holdings in us. In addition, proceeds from a sale of common stock will likely be used to increase our total assets or to pay down our borrowings, among other uses. This would increase our asset coverage ratio and permit us to incur additional leverage under rules pertaining to BDCs by increasing our borrowings or issuing senior securities such as preferred stock or additional debt securities.

Borrowings, also known as leverage, magnify the potential for gain or loss on amounts invested and, therefore, increase the risks associated with investing in our securities. Holders of such debt securities would have fixed dollar claims on our consolidated assets that would be superior to the claims of our common stockholders or any preferred stockholders.

If the value of our consolidated assets decreases while we have debt outstanding, leveraging would cause our NAV to decline more sharply than it otherwise would have had we not leveraged. Similarly, any decrease in our consolidated income while we have debt outstanding would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to make common stock distributions. We cannot assure you that our leveraging strategy will be successful.

As of December 31, 2024,2025, we had approximately $195.4$194.4 million of total outstanding indebtedness in the aggregate under four series of senior securities (unsecured notes)—the GECCO Notes, the GECCZGECCG Notes, the GECCI Notes and the GECCH Notes (each as defined herein)—and our asset coverage ratio was 169.7%.158.1%.

On May 5, 2021, we entered into the Loan Agreement, which provides for a senior secured revolving line of credit of up to $25 million (subject to a borrowing base). AsOn ofAugust December13, 31,2025, 2024,we there were no borrowings outstanding underamended the Loan Agreement.Agreement to increase the commitment of the revolving line of credit to up to $50 million (subject to a borrowing base). We may request to increase the revolving line in an aggregate amount not to exceed $25$40 million,million which(up increaseto isa revolving line of $90 million), subject to the sole discretion of CNB. As of December 31, 2025, there were no borrowings outstanding under the Loan Agreement.

Incurring additional leverage may magnify our exposure to risks associated with changes in interest rates, including fluctuations in interest rates which could adversely affect our profitability. If we incur additional leverage, including through the offering of Notes hereby, general interest rate fluctuations may have a more significant negative impact on our financial condition and results of operations than they would have absent such additional incurrence, and, accordingly, may have a material adverse effect on our investment objectives and rate of return on investment capital. A portion of our income will depend upon the difference between the rate at which we borrow funds and the interest rate on the debt securities in which we invest. Because we may borrow money to make investments and may issue debt securities, preferred stock or other securities, our net investment income is dependent upon the difference between the rate at which we borrow funds or pay interest or dividends on such debt securities, preferred stock or other securities and the rate at which we invest these borrowed funds.

As of the date of this prospectus,hereof, we are in compliance in all material respects with the covenants of the Loan Agreement. However, our continued compliance with these covenants depends on many factors, some of which are beyond our control. For example, depending on the condition of the public debt and equity markets and pricing levels, unrealized depreciation in our portfolio may increase in the future. Any such increase could result in our inability to comply with our obligation to restrict the level of indebtedness that we are able to incur in relation to the value of our assets or to maintain a minimum level of stockholders’ equity.

This section of this Form 10-K generally discusses 20242025 and 20232024 items and year to year comparisons between 20242025 and 2023.2024. For the discussion of 20232024 compared to 2022,2023, see “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2023,2024, which specific discussion is incorporated herein by reference. The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto in Part II, Item 8 of this Form 10-K, “Consolidated Financial Statements and Supplementary Data.” This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to those described in Part I, Item 1A of this Form 10-K, “Risk Factors.” Our actual results could differ materially from those anticipated by such forward-looking information due to factors discussed under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” appearing elsewhere in this Form 10-K.

On April 23, 2024, we contributed investments in certain CLOs and formed a joint venture, the CLO Formation JV, LLC (the “CLO JV”) to facilitate the creation of CLOs. The CLO JV invests primarily in the subordinated note securities in CLOs (colloquially referred to as “CLO equity”), as well as loan accumulation facilities (colloquially referred to as “CLO warehouses”). CLO subordinated note securities are entitled to recurring distributions which are generally equal to the residual cash flow of payments received from underlying securities after contractual payments to more senior CLO mezzanine debt holders and fund expenses On September 1, 2023, we contributed investments in certain of our operating company subsidiaries and other specialty finance assets to our formerly wholly owned subsidiary, GESF in exchange for equity and subordinated indebtedness in GESF. In connection with this contribution, a strategic investor purchased approximately 12.5% of the equity interests and subordinated indebtedness in GESF. Through its subsidiaries, GESF provides a variety of financing options along a “continuum of lending” to middle-market borrowers including, receivables factoring, asset-based and asset-backed lending, lender finance, and equipment financing. GESF expects to generate both revenue and cost synergies across its specialty finance company subsidiaries.expenses.

OurGECM, Boardas the Board's valuation designee, approves in good faith the valuation of our portfolio as of the end of each quarter. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from the values that we may ultimately realize. In addition, changes in the market environment and other events may impact the market quotations used to value some of our investments.

Investment income consists of interest income, including net amortization of premium and accretion of discount on loans and debt securities, dividend income and other income, which primarily consists of amendment fees, commitment fees and funding fees on loans. For the years ended December 31, 20242025 and 2023,2024, income includes non-cash PIK income of $3.0$3.3 million and $2.6$3.0 million, respectively. PIK income was 6.5% of total investment income for the year ended December 31, 2025 as compared to 7.7% for the year ended December 31, 2024. The aggregate amount of PIK income increased during the year ended December 31, 2025 as the number of investments with a PIK component increased during the year, however the PIK income share of total investment income declined.

Interest income increased for the year ended December 31, 20242025 as compared to the year ended December 31, 20232024 primarily due to growthan ofincrease in the average debt portfolio.investment portfolio size, partially offset by lower average coupon rates driven by a decrease in SOFR throughout the year.

Dividend income increased for the year ended December 31, 20242025 as compared to the year ended December 31, 20232024 primarily due to the investment in CLO Formation JV, LLC, which was formed in the currentprior year and pays periodic dividends to its equity holders.

Other commitment fees decreased for the year ended December 31, 20242025 as compared to the year ended December 31, 20232024 attributabledue to fewerthe termination of revolver investmentcommitments positions withand associated commitment fees. Other income increased for the year ended December 31, 2025 as compared to the year ended December 31, 2024 primarily due to non-refundable carry fees and amendment fees on new and amended debt positions.

Overall expenses for the year ended December 31, 20242025 increased as compared to the year ended December 31, 20232024 primarily due to interest expense as a result of the issuance of $56.5$57.5 million in aggregate principal amount of 8.50%7.75% notes due 20292030 (the “GECCIGECCG Notes”) in AprilSeptember and JulyOctober 2024,2025, andpartially offset by the issuanceredemption of $41.4$18.5 million in aggregate principal amount of 8.125%5.875% notes due 20292026 (the "GECCHGECCO Notes") in SeptemberDecember and October 2024, partially offset by the redemption of $45.6 million in aggregate principal amount of 6.75% notes due 2025 ("GECCM Notes") during the year.2025.

Incentive fees decreasedincreased for the year ended December 31, 20242025 as compared to the year ended December 31, 20232024 due to the annualized return on quarterly net income before incentive fee falling short of the hurdle rate for the three months ended December 31, 2024, offset with higher pre-incentive net investment income during the nine monthsyear ended SeptemberDecember 30,31, 2025, primarily attributable to the increase in dividend income as compared to the year ended December 31, 2024.

The decreaseincrease in administration fees for the year ended December 31, 20242025 as compared to the year ended December 31, 20232024 is attributable to aan decreaseincrease in overheadunderlying allocationscosts allocated under the administrative agreement with GECM.

Professional services costs increased for the year ended December 31, 20242025 as compared to the year ended December 31, 20232024 primarily due to increased legal expenses associated with specific transaction matters, as well as general rate increases for professional services including custody, valuation,valuation and accounting costs.

For the year ended December 31, 2024,2025, unrealized appreciation was primarily drivenconsisted byof an$10.1 million attributable to the reversal of previously recognized unrealized depreciation in connection with the sale of our investment in Dynata, a $1.1 million increase in the fair value of our investment in Nice-PakStone ProductsRidge, warrantsand ofa approximately $2.0$0.5 million andincrease in the fair value of our investment in CW Opportunity 2 LP of approximately $1.2 million.Trouvaille.

In the normal course of business, we may enter into investment agreements under which we commit to make an investment in a portfolio company at some future date or over a specified period of time. As of December 31, 2024,2025, we had approximately $14.6 million inno unfunded commitments to provide financing to certain of our portfolio companies. We had sufficient cash and other liquid assets on our December 31, 2024 balance sheet to satisfy the unfunded commitments.

For the year ended December 31, 2024,2025, net cash providedused byin operating activities was approximately $82.7$2.8 million, reflecting the purchases and proceeds from sales of investments and principal repayments of investments offset by net investment income, including non-cash income related to accretion of discount and PIK income and proceeds from sales of investments and principal payments received. Net cash providedused byin purchases and proceeds from sales of investments was approximately $$93.6$22.0 million, reflecting payments for additional investments of $335.0$182.1 million, offset by proceeds from principal repayments and sales of $241.4$160.1 million.

For the year ended December 31, 2023,2024, net cash providedused byin operating activities was approximately $25.7$82.7 million, reflecting the purchases and proceeds from sales of investments and principal repayments of investments offset by net investment income, including non-cash income related to accretion of discount and PIK income and proceeds from sales of investments and principal payments received. Net cash providedused byin purchases and proceeds from sales of investments was approximately $14.6$93.6 million, reflecting payments for additional investments of $220.5$335.0 million, offset by proceeds from principal repayments and sales of $235.1$241.4 million. Such amounts include draws and repayments on revolving credit facilities.

On June 23, 2021, we issued $50.0 million in aggregate principal amount of 5.875% notes due 2026 (the “GECCO Notes”). On July 9, 2021, we issued an additional $7.5 million of the GECCO Notes upon full exercise of the underwriters’ over-allotment option. In December 2025, we repurchased $18.5 million of the outstanding principal on the GECCO Notes. The aggregate principal balance of the GECCO Notes outstanding as of December 31, 20242025 is $57.5$39.0 million.

On August 16, 2023, we issued $40.0 million in aggregate principal amount of 8.75% notes due 2028 (the “GECCZ Notes” ). TheWe aggregateredeemed principal balanceall of the issued and outstanding GECCZ Notes outstandingon asSeptember 30, 2025 at 100% of Decemberthe 31,principal 2024amount isplus $40.0accrued million.and unpaid interest from June 30, 2025 through, but excluding, the redemption date of September 30, 2025.

On September 19, 2024, the Company issued $36.0 million in aggregate principal amount of 8.125% notes due 2029 (the "GECCH Notes" and, together with the GECCO Notes, GECCZ Notes and GECCI Notes, the "Notes"). On October 3, 2024, the Company issued an additional $5.4 million of the GECCH Notes upon full exercise of the underwriters' over-allotment option. The aggregate principal balance of the GECCH Notes outstanding as of December 31, 20242025 is $41.4 million.

The Notes are our unsecured obligations and rank equal with all of our outstanding and future unsecured unsubordinated indebtedness. The unsecured notes are effectively subordinated to indebtedness under our Loan Agreement and any other future secured indebtedness that we may incur to the extent of the value of the assets securing such indebtedness and structurally subordinated to all future indebtedness and other obligations of our subsidiaries. We pay interest on the Notes on March 31, June 30, September 30 and December 31 of each year. The GECCO Notes, GECCZGECCI Notes, GECCIGECCH Notes and GECCHGECCG Notes will mature on June 30, 2026, SeptemberApril 30, 2028,2029, AprilDecember 30,31, 2029, and December 31, 20292030, respectively. The GECCO Notes are currently callable at the Company’sCompany's option and the GECCZGECCI Notes, GECCIGECCH NotesNotes, and GECCHGECCG Notes can be called on, or after, SeptemberApril 30, 2025,2026, AprilDecember 30,31, 2026, and December 31, 2026,2027, respectively. Holders of the Notes do not have the option to have the Notes repaid prior to the stated maturity date. The Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof.

We may repurchase the Notes in accordance with the Investment Company Act and the rules promulgated thereunder. During the year ended December 31, 2024,2025, the Company redeemed the GECCMGECCZ Notes in full on OctoberSeptember 12,30, 2024.2025.

We are also subject to financial risks, including changes in market interest rates. As of December 31, 2024,2025, approximately $179.8$159.8 million in principal amount of our debt investments bore interest at variable rates, which are generally based on SOFR or US prime rate, and many of which are subject to certain floors. Recently, interest rates have risenfallen. and aA prolonged increasedecrease in interest rates willwould increasedecrease our gross investment income and could result in ana increasedecrease in our net investment income if such increasesdecreases in interest rates are not offset by a corresponding decreaseincrease in the spread over variable rates that we earn on any portfolio investments or ana increasedecrease in our operating expenses. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” for an analysis of the impact of hypothetical base rate changes in interest rates.

Our Board set a distribution for the quarter ending March 31, 20252026 at a rate of $0.37$0.30 per share. The full amount of the distribution will be from distributable earnings. The schedule of the distribution payment will be establishedpayable byon GECCMarch pursuant31, 2026 to authoritystockholders grantedof byrecord ouras Board.of March 16, 2026. The distribution will be paid in cash.

The following is a summary of our investment activity for the year ended December 31, 2025 and the threesix months ended MarchJune 31,30, 2026:

The following is a reconciliation of the investment portfolio for the threesix months ended MarchJune 31,30, 2026 and the year ended December 31, 2025. Investments in short-term securities, including U.S. Treasury Bills and money market mutual funds, are excluded from the table below.

The following table shows the fair value of our portfolio of investments by industry as of MarchJune 31,30, 2026 and December 31, 2025 (in thousands):

The per share amounts are based on a weighted average of 13,984,82813,889,803 and 13,937,053 outstanding common shares for the three and six months ended MarchJune 31,30, 2026.2026, respectively.

The per share amounts are based on a weighted average of 11,544,41511,556,857 and 11,550,739 outstanding common shares for the three and six months ended MarchJune 31,30, 2025.2025, respectively.

Interest income decreased for the three and six months ended MarchJune 31,30, 2026 as compared to the corresponding periodperiods in the prior year primarily due to a lower average coupon rate across the portfolio combined with a decrease in the debt investment portfolio size. As of MarchJune 31,30, 2026, the debt investment portfolio had an average coupon rate of 10.9%10.6% on approximately $199.2$199.6 million of principal as compared to 11.7% on approximately $256.2$232.6 million of principal as of MarchJune 31,30, 2025, excluding positions on non-accrual in each period. Interest income includes PIK interest which is reported in the Statements of Operations. The total PIK interest earned remained consistent for the three and six months ended MarchJune 31,30, 2026 as compared to the corresponding periodperiods in the prior year.

Dividend income decreased for the three and six months ended MarchJune 31,30, 2026 as compared to the three and six months ended MarchJune 31,30, 2025 due to fewer holdings in dividend-paying equity investments and reductions in distributions from the investment in the CLO JV which distributed $2.5$5.1 million and $3.3$7.1 million for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.

The per share amounts are based on a weighted average of 13,984,82813,889,803 and 13,937,053 outstanding common shares for the three and six months ended MarchJune 31,30, 2026.2026, respectively.

The per share amounts are based on a weighted average of 11,544,41511,556,857 and 11,550,739 outstanding common shares for the three and six months ended MarchJune 31,30, 2025.2025, respectively.

Management fees decreased for the three and six months ended MarchJune 31,30, 2026 as compared to the three and six months ended MarchJune 31,30, 2025 due to a decrease in the underlying management fee assets, primarily due to a decline in the fair value of the portfolio of investments, in the current year periodperiods as compared to the corresponding prior year period.periods.

Effective February 2026, GECM waived all accrued and unpaid incentive fees through March 31, 2026. Effective April 2026, GECM waived all accrued and unpaid incentive fees through June 30, 2026. As of December 31, 2025, there were approximately $2.3 million of accrued and unpaid incentive fees on our balance sheet. For the threesix months ended MarchJune 31,30, 2026, an additional $0.5$1.4 million of incentive fees were accrued, resulting in $2.8$3.7 million of accrued and unpaid incentive fees. In connection with the incentive fee waiver, we recognized the reversal of these accrued and unpaid incentive fees during the threesix months ended MarchJune 31,30, 2026, resulting in a corresponding increase in net income and increase in net asset value in the period (subject to any offsetting additional expenses or losses). The incentive fee waiver is not subject to recapture. Effective April 2026, GECM waived all accrued and unpaid incentive fees through June 30, 2026.

Professional services costs increased for the three and six months ended MarchJune 31,30, 2026 as compared to the corresponding periodperiods in the prior year, primarily due to general rate increases for professional services, including legal and accounting fees, along with certain one-time fees.

Administration fees increased for the three and six months ended MarchJune 31,30, 2026 as compared to the corresponding periodperiods in the prior year primarily due to higher allocable overhead and other expenses incurred by GECM under the Administration Agreement.

The per share amounts are based on a weighted average of 13,984,82813,889,803 and 13,937,053 outstanding common shares for the three and six months ended MarchJune 31,30, 2026.

The per share amounts are based on a weighted average of 11,544,41511,556,857 and 11,550,739 outstanding common shares for the three and six months ended MarchJune 31,30, 2025.

Realized gain for the three and six months ended MarchJune 31,30, 2026 includes approximately $2.7 million from the realization of our investment in Stone Ridge Opportunities Fund, LP (“Stone Ridge”), $1.9 million from distributions from our investment in CW Opportunity 2 LP, and $0.7$1.3 million from the partial realization of our investment in the unsecured bond of American Coastal Insurance Corp (“American Coastal”). Realized losses for the three and six months ended MarchJune 31,30, 2026 were primarily driven by a $0.2 million loss on the sale of our equity investment in the State Street Blackstone Senior Loan ETF, $0.2 million from the partial realization of our investment in the first lien term loan of Auction.com, and $0.1$0.2 million from the partial realization of our investment in theInvesco firstSenior lienLoan second out term loan of Conuma Resources LTD.Fund. The remaining $0.6 million of realized losses waswere attributable to smaller positions, none of which were individually material, and reflected routine portfolio activity.

The per share amounts are based on a weighted average of 13,984,82813,889,803 and 13,937,053 outstanding common shares for the three and six months ended MarchJune 31,30, 2026.

The per share amounts are based on a weighted average of 11,544,41511,556,857 and 11,550,739 outstanding common shares for the three and six months ended MarchJune 31,30, 2025.

For the three months ended MarchJune 31,30, 2026, net unrealized depreciation was primarily attributable to (i) approximately $3.8$1.7 million of unrealized depreciation related to our investment in CLO JV, driven by decreases in the fair value of the underlying CLO investments and (ii) approximately $2.3 million of net unrealized depreciation related to our investment in Universal Fiber Systems, LLC (“Universal Fibers”). In addition, unrealized depreciation included approximately $2.6 million attributable to the reversal of previously recognized unrealized appreciation on our investment in StoneTrouvaille RidgeRe Ltd. in connection with a distribution received during the period and (ii) approximately $1.1$0.8 million attributableof unrealized depreciation related to theour reversalequity ofinvestment previouslyin recognizedGreat Elm Specialty Finance. These unrealized losses were partially offset by unrealized appreciation onof approximately $0.6 million related to our investment in AmericanCW Coastal,Opportunity in each case in connection with the realization activity discussed above.LP.

TheseFor the six months ended June 30, 2026, net unrealized lossesdepreciation werewas partially offset by unrealized appreciationprimarily attributable to increases(i) approximately $3.8 million of unrealized depreciation related to our investment in CLO JV, driven by decreases in the fair value of the underlying CLO investments, (iii) approximately $0.5$2.2 million of net unrealized depreciation related to our investment in CWUniversal OpportunityFiber 2Systems, LP,LLC (ii“Universal Fibers”), and (iii) approximately $0.4$1.5 million related to our investment in W&T Offshore, Inc., and (iii) approximately $0.3 million related to ourequity investment in TrouvailleGreat REElm Ltd.Specialty Finance. In addition, unrealized appreciationdepreciation included approximately $1.1$2.6 million attributable to the reversal of previously recognized unrealized depreciationappreciation on our investment in DelStone MonteRidge Foodand Corpapproximately II,$1.6 Inc.,million primarilyattributable to the reversal of previously recognized unrealized appreciation on our investment in American Coastal, in each case in connection with athe $1.6realization millionactivity partialdiscussed paydown of our junior debtor-in-possession loan.above.

For the three months ended MarchJune 31,30, 2025, unrealized appreciation was primarily driven by an increase in fair value of our investment in TrouvailleCW ReOpportunity Ltd.2, preference sharesLP of approximately $0.8 million and in our investment in Dynata common equity of approximately $0.8$13.7 million. Unrealized depreciation for the three months ended MarchJune 31,30, 2025 was primarily driven by a decrease in fair value of ourapproximately investment$2.2 million in the CLO JV common equityequity, of approximately $1.9$1.6 million in Trouvaille Re Ltd. preference shares, and $1.5 million in ourMaverick investmentGaming, inLLC CWterm Opportunity 2, LP of approximately $1.1 million.loans.

As of MarchJune 31,30, 2026, we had approximately $9.6$4.0 million of short term investments in money market fund investments. As of MarchJune 31,30, 2026, we had investments in 6568 debt instruments across 4953 companies, totaling approximately $190.4$192.6 million at fair value and 1820 equity investments in 15 companies, with an aggregate fair value of approximately $76.8$75.7 million.

In the normal course of business, we may enter into investment agreements under which we commit to make an investment in a portfolio company at some future date or over a specified period of time. As of MarchJune 31,30, 2026, we had approximately $1.3$6.1 million in unfunded commitments to provide financing to certain of our portfolio companies. We had sufficient availability on our Revolver as well as cash and other liquid assets on our MarchJune 31,30, 2026 balance sheet to satisfy the unfunded commitments.

For the threesix months ended MarchJune 31,30, 2026, net cash provided by operating activities was approximately $23.5$36.6 million, reflecting $54.5$92.1 million provided by the sales of investments and principal payments offset by $25.9$60.4 million used for the purchase of investments and $6.5$0.9 million from the change in short-term investments.

For the threesix months ended MarchJune 31,30, 2026, net cash used for financing activities was $25.3$36.8 million. Cash outflows included $20.4$39.0 million to repurchase and redeem the 5.875% notes due 2026 (the “GECCO Notes”), $0.5 million from the repurchases of common stock, and $4.2$7.7 million in distributions to stockholders.stockholders, partially offset by cash inflows of $11.0 million of net borrowings on the Revolver.

A summary of our material contractual payment and other cash obligations as of MarchJune 31,30, 2026 is as follows:

On August 13, 2025, we amended the Loan Agreement to increase the commitment of the revolving line of credit to up to $50 million (subject to a borrowing base as defined in the Loan Agreement). The amendment also allows us to request an increase of the Revolving Facility in an aggregate amount not to exceed $40 million (up to a revolving line of $90 million), which increase is subject to the sole discretion of CNB and updates the maturity date of the revolving line to the earlier of (i) May 5, 2027 and (ii) May 31, 2026 if the Company’s 5.875% notes due 2026 have not been refinanced prior to such date. In addition, the amendment provides that borrowings under the Revolving Facility shall bear interest at a rate equal to (i) at all times when a minimum deposit test is met (a) SOFR plus 2.50% or (b) a base rate plus 1.50% and (ii) at all times when a minimum deposit test is not met (a) SOFR plus 3.50% or (b) a base rate plus 2.50%. The amendment also amended the financial covenant of minimum net assets requirement to be of not less than $80 million. AsOn June 8, 2026, we amended the Loan Agreement to extend the maturity date of the Revolving Facility to the earlier of (i) June 8, 2029, and (ii) March 31, 2026,2029 there were no borrowings outstanding underif the revolvingCompany’s line.8.50% notes due 2029 have not been refinanced on or prior to such date.

On June 23, 2021, we issued $50.0 million in aggregate principal amount of GECCO Notes. On July 9, 2021, we issued an additional $7.5 million of the GECCO Notes upon full exercise of the underwriters’ over-allotment option. In December 2025, we repurchased $18.5 million of the outstanding principal on the GECCO Notes. During the three months ended March 31, 2026, we repurchased $0.4 million of the outstanding principal on the GECCO Notes. On March 31, 2026, we redeemed $20.0 million of outstanding GECCO Notes at 100% of the principal amount. The aggregate principal balance of the GECCO Notes outstanding as of March 31, 2026 was $18.6 million. On AprilMay 27, 2026, we caused a notice to be issued toredeemed the holders of the GECCO Notes regarding the Company's exercise of its option to redeemremaining $18.6 million aggregate principal amount of the issued and outstanding GECCO Notes onin May 27, 2026.full.

On April 17, 2024, we issued $30.0 million in aggregate principal amount of 8.50% notes due 2029 (the “GECCI Notes”). On April 25, 2024, we issued an additional $4.5 million of the GECCI Notes upon full exercise of the underwriters’ over-allotment option. On July 9, 2024, we issued an additional $22.0 million in aggregate principal amount of the GECCI Notes in a direct placement. The aggregate principal balance of the GECCI Notes outstanding as of MarchJune 31,30, 2026 was $56.5 million. On July 20, 2026, the Company caused a notice to be issued to the holders of the GECCI Notes regarding the Company’s exercise of its option to redeem $6.5 million aggregate principal amount of the issued and outstanding GECCI Notes on August 19, 2026.

On September 19, 2024, we issued $36.0 million in aggregate principal amount of 8.125% notes due 2029 (the “GECCH Notes”). On October 3, 2024, we issued an additional $5.4 million of the GECCH Notes upon full exercise of the underwriters’ over-allotment option. The aggregate principal balance of the GECCH Notes outstanding as of MarchJune 31,30, 2026 was $41.4 million.

On September 11, 2025, we issued $50.0 million in aggregate principal amount of 7.75% notes due 2030 (the “GECCG Notes” and together with the GECCO Notes, GECCI Notes and GECCH Notes, the “Notes”). On October 2, 2025, we issued an additional $7.5 million of the GECCG Notes upon full exercise of the underwriters' over-allotment option. The aggregate principal balance of the GECCG Notes outstanding as of MarchJune 31,30, 2026 was $57.5 million.

The Notes are our unsecured obligations and rank equal with all of our outstanding and future unsecured unsubordinated indebtedness. The unsecured notes are effectively subordinated, or junior in right of payment, to indebtedness under our Loan Agreement and any other future secured indebtedness that we may incur to the extent of the value of the assets securing such indebtedness and structurally subordinated to all future indebtedness and other obligations of our subsidiaries. We pay interest on the Notes on March 31, June 30, September 30 and December 31 of each year. The GECCO Notes, GECCI Notes, GECCH Notes and GECCG Notes will mature on June 30, 2026, April 30, 2029, December 31, 2029 and December 31, 2030, respectively. The GECCOGECCI Notes are currently callable at the Company’s option and the GECCI Notes, GECCH Notes and GECCG Notes can be called on, or after, April 30, 2026, December 31, 2026,2026 and December 31, 2027, respectively. Holders of the Notes do not have the option to have the Notes repaid prior to the stated maturity date. The Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof.

On May 3, 2018, a majority of our stockholders approved the application of the modified minimum asset coverage requirement pursuant to Section 61(a)(2) under the Investment Company Act. As a result of such approval, and subject to satisfying certain ongoing disclosure requirements, effective May 4, 2018 the asset coverage ratio test applicable to the Company was decreased from 200% to 150%. As of MarchJune 31,30, 2026, our asset coverage ratio was approximately 161.8%.166.4%. Under the Investment Company Act, we are subject to a minimum asset coverage ratio of 150%.

During fiscal years 2024 and 2025 and through AprilJuly 27,29, 2026, using the high and low sales prices within each fiscal quarter compared to the NAV at such quarter end, our common stock has traded as high as a 14.4% premium to NAV and as low as a 38.8% discount to NAV.

The last reported closing price for our common stock on AprilJuly 27,29, 2026 was $5.52$5.11 per share. As of AprilJuly 27,29, 2026, we had 12 record holders of our common stock.

Our board set the distribution for the quarter ending JuneSeptember 30, 2026 at a rate of $0.25 per share. The full amount of each distribution will be from distributable earnings. The distribution will be payable on JuneSeptember 30, 2026 to stockholders of record as of JuneSeptember 15, 2026. The distribution will be paid in cash.

We are also subject to financial risks, including changes in market interest rates. As of MarchJune 31,30, 2026, approximately $146.0$136.0 million in principal amount of our debt investments bore interest at variable rates, which are generally based on SOFR or US prime rate, and many of which are subject to certain floors. Recently, interest rates have risen and a prolonged increase in interest rates will increase our gross investment income and could result in an increase in our net investment income if such increases in interest rates are not offset by a corresponding decrease in the spread over variable rates that we earn on any portfolio investments or an increase in our operating expenses. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for an analysis of the impact of hypothetical base rate changes in interest rates.