Great Elm Group Inc (NASDAQ:GEG) stock rose 6.34% (As on September 5, 11:18:20 AM UTC-4, Source: Google Finance) after the company in the fourth quarter of FY 22 has recognized a net loss of $4.8 million, compared to a net loss of $1.1 million during the same period in the prior year. For the year ended June 30, 2022, GEG recognized a net loss of $15.0 million, compared to a net loss of $8.5 million for fiscal 2021. Much of the net loss can be attributed to non-cash mark-to-market losses on the Company’s managed investments, particularly GECC. During the three months ended June 30, 2022, Investment Management (IM) reported total revenue of $1.5 million, compared to $0.9 million during the same period in the prior year. The increase primarily reflected higher assets under management at GECC related to market recoveries and the successful completion of the rights offering, as well as incremental management fees earned from Monomoy REIT. During the three months ended June 30, 2022, IM recognized a net loss of $1.8 million, compared to net income of $1.3 million during the same period in the prior year. During the three months ended June 30, 2022, IM recognized Adjusted EBITDA of ($0.1) million, compared to $0.1 million for the same period in the prior year. Adjusted EBITDA for the quarter was impacted primarily by increased payroll costs and consulting fees related to the Monomoy REIT acquisition and expansion of GECC’s specialty finance platform partially offset by higher revenue. For the year ended June 30, 2022, IM recognized Adjusted EBITDA of ($0.4) million, compared to $0.4 million for fiscal 2021.

Moreover, during the three months ended June 30, 2022, DME reported $16.5 million in total revenue, compared to $15.4 million during the same period in the prior year. The increase in revenue was primarily attributable to more favorable intake and collections processes driving lower revenue reserve rates. During the three months ended June 30, 2022, DME Adjusted EBITDA was $3.6 million, compared to $4.3 million in the prior-year period. For the year ended June 30, 2022, DME Adjusted EBITDA was $13.8 million, compared to $12.4 million in fiscal 2021 despite $2.3 million less of government stimulus payments. The growth in core profitability was primarily driven by more favorable revenue and gross margins partially offset by higher employee-related costs associated with acquired AMPM and MedOne employees.