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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to
Commission file number: 814-00704
GLADSTONE INVESTMENT CORPORATION
(Exact name of registrant as specified in its charter)
Delaware83-0423116
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1521 WESTBRANCH DRIVE, SUITE 100
22102
MCLEAN, VA
(Zip Code)
(Address of principal executive offices)
(703) 287-5800
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.001 par value per shareGAINThe Nasdaq Stock Market LLC
5.00% Notes due 2026GAINNThe Nasdaq Stock Market LLC
4.875% Notes due 2028GAINZThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
x
Smaller reporting company
o
Emerging growth company
o
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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The number of shares of the issuer’s Common Stock, $0.001 par value per share, outstanding as of October 31, 2022 was 33,234,663.


GLADSTONE INVESTMENT CORPORATION
TABLE OF CONTENTS
Consolidated Schedules of Investments as of September 30, 2022 and March 31, 2022


PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)

September 30,
2022
March 31,
2022
ASSETS
Investments at fair value
Non-Control/Non-Affiliate investments (Cost of $421,643 and $388,773, respectively)
$488,999 $442,124 
Affiliate investments (Cost of $280,955 and $279,855, respectively)
248,223 271,559 
Control investments (Cost of $620 and $620, respectively)
713 713 
Cash and cash equivalents
2,557 14,190 
Restricted cash and cash equivalents
346 305 
Interest receivable
3,000 3,042 
Due from administrative agent
2,242 6,406 
Deferred financing costs, net
701 895 
Other assets, net
1,847 1,178 
TOTAL ASSETS
$748,628 $740,412 
LIABILITIES
Borrowings:
Line of credit at fair value (Cost of $16,600 and $0, respectively)
$16,600 $— 
Notes payable, net
256,802 256,252 
Secured borrowing
 5,096 
Total borrowings
273,402 261,348 
Accounts payable and accrued expenses
1,798 799 
Interest payable
2,206 2,190 
Fees due to Adviser(A)
27,791 29,288 
Fee due to Administrator(A)
615 627 
Other liabilities
346 330 
TOTAL LIABILITIES
$306,158 $294,582 
Commitments and contingencies(B)
NET ASSETS
$442,470 $445,830 
ANALYSIS OF NET ASSETS
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 33,234,663 and 33,205,023 shares issued and outstanding, respectively
$33 $33 
Capital in excess of par value
397,131 397,948 
Cumulative net unrealized appreciation (depreciation) of investments
34,717 45,148 
Overdistributed net investment income
(1,073)(12,995)
Accumulated net realized gain in excess of distributions
11,662 15,696 
Total distributable earnings
45,306 47,849 
TOTAL NET ASSETS
$442,470 $445,830 
NET ASSET VALUE PER SHARE
$13.31 $13.43 
(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.
(B)Refer to Note 10 — Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
2

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)

Three Months Ended September 30,Six Months Ended September 30,

2022202120222021
INVESTMENT INCOME
Interest income
Non-Control/Non-Affiliate investments
$9,922 $7,407 $18,650 $14,284 
Affiliate investments
4,286 6,678 8,296 15,509 
Control investments 213  497 
Cash and cash equivalents
29 — 32 — 
Total interest income
14,237 14,298 26,978 30,290 
Dividend income
Non-Control/Non-Affiliate investments
4,825 4,829 
Affiliate investments
 1,589 1,552 1,589 
Total dividend income
4,825 1,590 6,381 1,592 
Success fee income
Non-Control/Non-Affiliate investments
1,733 1,650 6,733 1,650 
Affiliate investments
 1,000  3,032 
Total success fee income
1,733 2,650 6,733 4,682 
Total investment income
$20,795 $18,538 $40,092 36,564 
EXPENSES
Base management fee(A)
$3,613 $3,577 $7,176 6,897 
Loan servicing fee(A)
1,916 1,794 3,674 3,662 
Incentive fee(A)
768 7,351 3,777 19,599 
Administration fee(A)
562 571 942 970 
Interest expense on borrowings
3,857 3,082 7,641 5,382 
Dividends on mandatorily redeemable preferred stock
 802  2,306 
Amortization of deferred financing costs and discounts
450 452 898 908 
Professional fees
938 343 1,233 649 
Other general and administrative expenses
816 1,125 2,013 2,173 
Expenses before credits from Adviser
12,920 19,097 27,354 42,546 
Credits to base management fee – loan servicing fee(A)
(1,916)(1,794)(3,674)(3,662)
Credits to fees from Adviser - other(A)
(1,625)(930)(2,375)(2,181)
Total expenses, net of credits to fees
9,379 16,373 21,305 36,703 
NET INVESTMENT INCOME (LOSS)
$11,416 $2,165 $18,787 (139)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss):
Non-Control/Non-Affiliate investments
$2,302 $— $7,031 143 
Affiliate investments
 464  2,250 
Control investments
 — (277)— 
Other (1,998) (1,998)
Total net realized gain
2,302 (1,534)6,754 395 
Net unrealized appreciation (depreciation):
Non-Control/Non-Affiliate investments
(985)15,101 14,004 32,003 
Affiliate investments
(9,658)16,926 (24,435)46,134 
Control investments
 (4,523) (3,119)
Total net unrealized (depreciation) appreciation
(10,643)27,504 (10,431)75,018 
Net realized and unrealized gain (loss)(8,341)25,970 (3,677)75,413 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$3,075 $28,135 $15,110 $75,274 
BASIC AND DILUTED PER COMMON SHARE:
Net investment income
$0.34 $0.07 $0.57 $— 
Net increase in net assets resulting from operations$0.09 $0.85 $0.45 $2.27 
WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic and diluted33,218,901 33,205,023 33,212,000 33,205,023 
(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
3

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(IN THOUSANDS)
(UNAUDITED)

20222021
NET ASSETS, MARCH 31
$445,830 $382,364 
OPERATIONS
Net investment income (loss)7,371 (2,304)
Net realized gain on investments4,452 1,929 
Net unrealized appreciation (depreciation) of investments212 47,514 
Net increase in net assets from operations
12,035 47,139 
DISTRIBUTIONS(A)
Distributions to common stockholders from net investment income ($0.10 and $0.20 per share, respectively)
(3,188)(6,593)
Distributions to common stockholders from net realized gains ($0.25 and $0.07 per share, respectively)
(8,268)(2,372)
Net decrease in net assets from distributions
(11,456)(8,965)
CAPITAL ACTIVITY
Issuance of common stock
 — 
Discounts, commissions, and offering costs for issuance of common stock
 — 
Net increase in net assets from capital activity
 — 
NET INCREASE (DECREASE) IN NET ASSETS
579 38,174 
NET ASSETS, JUNE 30
$446,409 $420,538 
OPERATIONS
Net investment income$11,416 $2,165 
Net realized gain on investments2,302 464 
Net realized loss on other (1,998)
Net unrealized (depreciation) appreciation of investments(10,643)27,504 
Net increase in net assets from operations
3,075 28,135 
DISTRIBUTIONS(A)
Distributions to common stockholders from net investment income ($0.14 and $0.16 per share, respectively)
(4,678)(5,490)
Distributions to common stockholders from net realized gains ($0.08 and $0.08 per share, respectively)
(2,797)(2,482)
Net decrease in net assets from distributions
(7,475)(7,972)
CAPITAL ACTIVITY
Issuance of common stock
467 — 
Discounts, commissions, and offering costs for issuance of common stock
(6)— 
Net increase in net assets from capital activity
461 — 
NET INCREASE (DECREASE) IN NET ASSETS
(3,939)20,163 
NET ASSETS, SEPTEMBER 30
$442,470 $440,701 
(A)Refer to Note 9 — Distributions to Common Stockholders in the accompanying Notes to Consolidated Financial Statements for additional information.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
4

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)

Six Months Ended September 30,

20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations
$15,110 $75,274 
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchase of investments
(102,046)(47,550)
Principal repayments of investments
48,000 14,060 
Net proceeds from the sale and recapitalization of investments
21,690 8,137 
Net realized gain on investments
(6,754)(2,393)
Net realized loss on other
 1,998 
Net unrealized depreciation (appreciation) of investments
10,431 (75,018)
Amortization of premiums, discounts, and acquisition costs, net
(9)(9)
Amortization of deferred financing costs and discounts
898 908 
Bad debt expense, net of recoveries
153 568 
Changes in assets and liabilities:
Decrease in interest receivable
42 259 
Decrease (increase) in due from administrative agent
4,164 (656)
(Increase) decrease in other assets, net
(617)242 
Increase in accounts payable and accrued expenses
999 913 
Increase in interest payable
16 1,311 
(Decrease) increase in fees due to Adviser(A)
(1,578)15,698 
Decrease in fee due to Administrator(A)
(12)(6)
Increase (decrease) in other liabilities
68 (22)
Net cash used in operating activities(9,445)(6,286)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock
467 — 
Discounts, commissions, and offering costs for issuance of common stock(6)— 
Proceeds from line of credit
41,500 62,700 
Repayments on line of credit
(24,900)(76,200)
Proceeds from issuance of notes payable 134,550 
Redemption of mandatorily redeemable preferred stock (94,371)
Deferred financing and offering costs
(277)(3,432)
Distributions paid to common stockholders
(18,931)(16,937)
Net cash (used in) provided by financing activities
(2,147)6,310 

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS
(11,592)24 

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD
14,495 2,398 

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD
$2,903 $2,422 

CASH PAID FOR INTEREST
$6,739 $3,286 
(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.

Supplemental disclosures of non-cash operating activities:

In August 2022, in conjunction with a refinancing at Ginsey Home Solutions, Inc. ("Ginsey"), there was a $5.1 million payment made by Ginsey to extinguish our secured borrowing liability. Refer to Note 3 - Investments and Note 5 - Borrowings for further discussion.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
5

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)

Company and Investment(A)(B)(D)(E)
Principal/Shares/ Units(F)(I)
CostFair Value
NON-CONTROL/NON-AFFILIATE INVESTMENTS(M) – 110.5%
Secured First Lien Debt – 61.9%
Buildings and Real Estate Total – 8.9%

Dema/Mai Holdings, Inc. – Line of Credit, $2,200 available (L+8.0%, 11.1% Cash, Due 7/2023)(K)
$800 $800 $800 
Dema/Mai Holdings, Inc. – Term Debt (L+11.0%, 14.1% Cash, Due 7/2027)(K)
38,250 38,250 38,250 
39,050 39,050 
Diversified/Conglomerate Manufacturing – 1.2%
Phoenix Door Systems, Inc – Line of Credit, $0 available (L+7.0%, 10.1% Cash (0.3% Unused Fee), Due 3/2024)(J)
2,550 2,550 2,410 
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 14.1% Cash, Due 9/2024)(J)
3,200 3,200 3,024 
5,750 5,434 
Diversified/Conglomerate Services – 25.0%
Counsel Press, Inc. – Term Debt (L+11.8%, 14.9% Cash, Due 3/2023)(K)
21,100 21,100 21,100 
Counsel Press, Inc. – Term Debt (L+13.0%, 16.1% Cash, Due 3/2023)(K)
6,400 6,400 6,400 
Horizon Facilities Services, Inc. – Term Debt (L+7.5%, 10.6% Cash, Due 6/2026)(K)
57,700 57,700 57,700 
Mason West, LLC – Term Debt (L+10.0%, 13.1% Cash, Due 7/2025)(K)
25,250 25,250 25,250 
110,450 110,450 
Healthcare, Education, and Childcare – 4.5%
Educators Resource, Inc. – Term Debt (L+10.5%, 13.6% Cash, Due 11/2023) (K)
20,000 20,000 20,000 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 8.3%
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 13.1% Cash, Due 1/2026) (K)
17,700 17,700 17,700 
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 13.1% Cash, Due 1/2026) (K)
6,850 6,850 6,850 
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 11/2025)(K)
12,200 12,200 12,200 
36,750 36,750 
Hotels, Motels, Inns, and Gaming Total – 7.7%
Nocturne Villa Rentals, Inc. – Line of Credit, $2,000 available (L+8.0%, 11.1% Cash, Due 6/2023)(K)
— — — 
Nocturne Villa Rentals, Inc. – Term Debt (L+10.5%, 13.6% Cash, Due 6/2026)(K)
34,050 34,050 34,050 
34,050 34,050 
Leisure, Amusement, Motion Pictures, and Entertainment – 6.3%
Schylling, Inc. – Term Debt (L+11.0%, 14.1% Cash, Due 5/2025)(K)
27,981 27,981 27,981 
Total Secured First Lien Debt$274,031 $273,715 
Secured Second Lien Debt – 12.0%
Aerospace and Defense – 5.4%
Galaxy Technologies Holdings, Inc. – Term Debt (L+4.1%, 7.2% Cash, Due 10/2026)(K)
$6,500 $6,500 $6,102 
Galaxy Technologies Holdings, Inc. – Term Debt (L+7.0%, 10.1% Cash, Due 10/2026)(K)
18,796 18,796 17,644 
25,296 23,746 
Automobile – 0.3%
Country Club Enterprises, LLC – Term Debt (L+8.0%, 11.1% Cash, Due 7/2027)(J)
1,500 1,500 1,499 
Country Club Enterprises, LLC – Guaranty ($1,000) (Q)
— — 
1,500 1,499 
Cargo Transport – 2.9%
Diligent Delivery Systems – Term Debt (L+9.0%, 12.1% Cash, Due 11/2022)(J)
13,000 12,996 13,000 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 3.4%
SFEG Holdings, Inc. – Term Debt (L+7.0%, 10.1% Cash, Due 11/2024)(K)
3,128 3,128 3,128 
SFEG Holdings, Inc. – Term Debt (L+7.0%, 10.1% Cash, Due 11/2024)(K)
11,736 11,736 11,736 
14,864 14,864 
Total Secured Second Lien Debt$54,656 $53,109 
6

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
SEPTEMBER 30, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E)
Principal/Shares/ Units(F)(I)
CostFair Value
Preferred Equity – 36.2%
Buildings and Real Estate – 4.7%
Dema/Mai Holdings, Inc. - Preferred Equity(C)(K)
21,000 $21,000 $21,000 
Diversified/Conglomerate Services – 12.3%
Counsel Press, Inc. – Preferred Stock(C)(K)
6,995 6,995 27,246 
Horizon Facilities Services, Inc. – Preferred Stock(C)(K)
10,080 — 21,454 
Mason West, LLC – Preferred Stock(C)(K)
11,206 11,206 5,615 
18,201 54,315 
Healthcare, Education, and Childcare – 4.3%
Educators Resource, Inc. – Preferred Stock(C)(K)
8,560 8,560 18,937 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 6.3%
Brunswick Bowling Products, Inc. – Preferred Stock(C)(K)
6,653 6,653 27,980 
Ginsey Home Solutions, Inc. – Preferred Stock(C)(K)
19,280 9,583 — 
16,236 27,980 
Hotels, Motels, Inns, and Gaming – 4.3%
Nocturne Villa Rentals, Inc. – Preferred Stock (C)(K)
6,600 6,600 19,040 
Leisure, Amusement, Motion Pictures, and Entertainment – 3.7%
Schylling, Inc. – Preferred Stock(C)(K)
4,000 4,000 16,475 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.6%
SFEG Holdings, Inc. – Preferred Stock(C)(K)
29,577 4,643 2,543 
Total Preferred Equity
$79,240 $160,290 
Common Equity/Equivalents – 0.4%
Aerospace and Defense – 0.0%
Galaxy Technologies Holdings, Inc. – Common Stock(C)(K)
16,957 $11,513 $ 
Cargo Transport – 0.4%
Diligent Delivery Systems – Common Stock Warrants(C)(K)
%

500 1,827 

Diversified/Conglomerate Manufacturing– 0.0%
Phoenix Door Systems, Inc. – Common Stock(C)(K)
3,195 1,452  
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0%
Ginsey Home Solutions, Inc. – Common Stock(C)(K)
63,747 8  
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic)- 0.0%
SFEG Holdings, Inc. – Common Stock(C)(K)
221,500 222  
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
Funko Acquisition Holdings, LLC(L) – Common Units(C)(P)
4,239 21 58 
Total Common Equity/Equivalents$13,716 $1,885 
Total Non-Control/Non-Affiliate Investments$421,643 $488,999 
7

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
SEPTEMBER 30, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E)
Principal/Shares/ Units(F)(I)
CostFair Value
AFFILIATE INVESTMENTS(N) – 56.1%
Secured First Lien Debt – 33.3%
Diversified/Conglomerate Manufacturing – 0.9%
Edge Adhesives Holdings, Inc.(L) – Term Debt (L+5.5%, 8.6% Cash, Due 8/2024)(K)
9,210 $9,210 $3,825 
Diversified/Conglomerate Services – 18.3%
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 14.1% Cash, Due 11/2022)(K)
22,000 22,000 22,000 
J.R. Hobbs Co. - Atlanta, LLC – Line of Credit, $4,000 available (L+6.0%, 9.1% Cash, Due 6/2025)(G)(K)
1,000 1,000 660 
J.R. Hobbs Co. - Atlanta, LLC - Term Debt (L+6.0%, 9.1% Cash, Due 6/2025) (G)(K)
16,500 16,500 10,900 
J.R. Hobbs Co. - Atlanta, LLC – Term Debt (L+10.3%, 13.4% Cash, Due 6/2025) (G)(K)
26,000 26,000 17,176 
J.R. Hobbs Co. - Atlanta, LLC – Term Debt (L+6.0%, 9.1% Cash, Due 6/2025) (G)(K)
2,438 2,438 1,610 
The Maids International, LLC – Term Debt (L+10.5%, 13.6% Cash, Due 3/2025)(K)
28,560 28,560 28,560 
96,498 80,906 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.7%
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 12.6% Cash, Due 12/2025)(K)
25,000 25,000 25,000 
Mining, Steel, Iron and Non-Precious Metals Total – 4.1%
Utah Pacific Bridge & Steel, Ltd. (L+10.0%, 13.1% Cash, Due 7/2026)(K)
18,250 18,250 18,250 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.5%
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2023)(G)(K)
3,400 3,400 2,411 
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2023)(G)(K)
900 900 — 
4,300 2,411 
Telecommunications – 3.8%
B+T Group Acquisition, Inc.(L) – Line of Credit, $0 available (L+11.0%, 14.1% Cash, Due 12/2024)(K)
2,800 2,800 2,800 
B+T Group Acquisition, Inc.(L) – Term Debt (L+11.0%, 14.1% Cash, Due 12/2024)(K)
14,000 14,000 14,000 
16,800 16,800 
Total Secured First Lien Debt$170,058 $147,192 
Secured Second Lien Debt – 5.3%
Chemicals, Plastics, and Rubber – 5.3%
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 8.6% Cash, Due 1/2024)(K)
$26,618 $26,618 $23,642 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Term Debt (L+4.0%, 7.1% Cash, Due 4/2024)(G)(K)
11,700 11,700 — 
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.1% Cash, Due 4/2024)(G)(K)
1,500 1,500 — 
$13,200  
Total Secured Second Lien Debt
$39,818 $23,642 
Preferred Equity – 15.6%
Chemicals, Plastics, and Rubber – 0.0%
PSI Molded Plastics, Inc. – Preferred Stock(C)(K)
158,598 $19,730 $ 
Diversified/Conglomerate Manufacturing – 0.0%
Edge Adhesives Holdings, Inc.(L) – Preferred Stock(C)(K)
8,199 8,199  
8

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
SEPTEMBER 30, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
Company and Investment(A)(B)(D)(E)
Principal/Shares/ Units(F)(I)
CostFair Value
Diversified/Conglomerate Services – 3.2%
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(K)
67,490 6,749 14,051 
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(K)
10,920 10,920 — 
The Maids International, LLC – Preferred Stock(C)(K)
6,640 6,640 — 
24,309 14,051 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 9.9%
Old World Christmas, Inc. – Preferred Stock(C)(K)
6,180  43,629 
Mining, Steel, Iron and Non-Precious Metals – 1.1%
Utah Pacific Bridge & Steel, Ltd. - Preferred Stock(C)(K)
6,000 6,000 5,118 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Preferred Stock(C)(K)
6,899 6,899  
Telecommunications – 1.4%
B+T Group Acquisition, Inc.(L) – Preferred Stock(C)(K)
14,304 4,722 6,342 
Total Preferred Equity$69,859 $69,140 
Common Equity/Equivalents – 1.9%
Diversified/Conglomerate Services – 1.9%
Nth Degree Investment Group, LLC – Common Stock(C)(K)
14,360,000 $1,219 $8,191 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Common Stock(C)(K)
751 1  
Telecommunications – 0.0%
B+T Group Acquisition, Inc.(L) – Common Stock Warrants(C)(K)
3.5 % 58 
Total Common Equity/Equivalents$1,220 $8,249 
Total Affiliate Investments$280,955 $248,223 
CONTROL INVESTMENTS(O) – 0.2%:
Common Equity/Equivalents – 0.2%
Leisure, Amusement, Motion Pictures, and Entertainment – 0.2%
Gladstone SOG Investments, Inc. - Common Stock(C)(K)
100 $620 $713 
Total Common Equity/Equivalents$620 $713 
Total Control Investments$620 $713 
TOTAL INVESTMENTS – 166.8%
$703,218 $737,935 
(A)Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company. The majority of the securities listed, totaling $624.9 million at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5—Borrowings in the accompanying Notes to Consolidated Financial Statements. Additionally, under Section 55 of the Investment Company Act of 1940, as amended (the "1940 Act"), we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2022, our investment in Funko Acquisition Holdings, LLC ("Funko") was considered a non-qualifying asset under Section 55 of the 1940 Act and represented less than 0.1% of total investments, at fair value.
(B)Unless indicated otherwise, all cash interest rates are indexed to 30-day London Interbank Offered Rate ("LIBOR" or "L"), which was 3.1% as of September 30, 2022. If applicable, paid-in-kind interest rates are noted separately from the cash interest rate. Certain securities are subject to an interest rate floor. The cash interest rate is the greater of the floor or 30-day LIBOR plus a spread. Due dates represent the contractual maturity date.
(C)Security is non-income producing.
(D)Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of September 30, 2022.
(E)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") fair value hierarchy. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(F)Where applicable, aggregates all shares of a class of stock owned without regard to specific series owned within such class (some series of which may or may not be voting shares) or aggregates all warrants to purchase shares of a class of stock owned without regard to specific series of such class of stock such warrants allow us to purchase.
9

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
SEPTEMBER 30, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
(G)Debt security is on non-accrual status.
(H)Reserved.
(I)Represents the principal balance, presented in thousands, for debt investments and the number of shares/units held for equity investments. Warrants are represented as a percentage of ownership, as applicable.
(J)Fair value was based on internal yield analysis or on estimates of value submitted by ICE Data Pricing and Reference Data, LLC. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(K)Fair value was based on the total enterprise value of the portfolio company, which is generally allocated to the portfolio company’s securities in order of their relative priority in the capital structure. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(L)One of our affiliated funds, Gladstone Capital Corporation, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
(M)Non-Control/Non-Affiliate investments, as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 5.0% of the issued and outstanding voting securities.
(N)Affiliate investments, as defined by the 1940 Act, are those that are not Control investments and in which we own, with the power to vote, between and inclusive of 5.0% and 25.0% of the issued and outstanding voting securities.
(O)Control investments, as defined by the 1940 Act, are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.
(P)Our investment in Funko was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Our common units in Funko are convertible into class A common stock in Funko, Inc. upon meeting certain requirements. Fair value was based on the closing market price of shares of Funko, Inc. as of the reporting date, less a discount for lack of marketability. Funko, Inc. is traded on the Nasdaq Global Select Market under the trading symbol “FNKO.” Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(Q)Refer to Note 10—Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information regarding this guaranty.




THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
10

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2022
(DOLLAR AMOUNTS IN THOUSANDS)

Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(I)
CostFair Value
NON-CONTROL/NON-AFFILIATE INVESTMENTS(M) – 99.2%
Secured First Lien Debt – 52.4%
Diversified/Conglomerate Manufacturing – 1.1%
Phoenix Door Systems, Inc – Line of Credit, $150 available (L+7.0%, 9.0% Cash (0.3% Unused Fee), Due 3/2024)(J)
$2,000 $2,000 $1,920 
Phoenix Door Systems, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 9/2024)(J)
3,200 3,200 3,072 
5,200 4,992 
Diversified/Conglomerate Services – 28.8%
Bassett Creek Services, Inc. – Term Debt(L+10.0%, 12.0% Cash, Due 4/2023)(K)
48,000 48,000 48,000 
Counsel Press, Inc. – Term Debt (L+11.8%, 12.8% Cash, Due 3/2023)(K)
21,100 21,100 21,100 
Counsel Press, Inc. – Term Debt (L+13.0%, 14.0% Cash, Due 3/2023)(K)
6,400 6,400 6,400 
Horizon Facilities Services, Inc. – Term Debt (L+9.5%, 12.0% Cash, Due 6/2024)(K)
27,700 27,700 27,700 
Mason West, LLC – Term Debt (L+10.0%, 12.5% Cash, Due 7/2025)(K)
25,250 25,250 25,250 
128,450 128,450 
Healthcare, Education, and Childcare – 4.5%
Educators Resource, Inc. – Term Debt (L+10.5%, 13.0% Cash, Due 11/2023) (K)
20,000 20,000 20,000 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.5%
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023) (K)
17,700 17,700 17,700 
Brunswick Bowling Products, Inc. – Term Debt (L+10.0%, 12.0% Cash, Due 1/2023) (K)
6,850 6,850 6,850 
24,550 24,550 
Hotels, Motels, Inns, and Gaming Total – 6.2%
Nocturne Villa Rentals, Inc. – Line of Credit, $2,000 available (L+8.0%, 10.0% Cash, Due 6/2023)(K)
— — — 
Nocturne Villa Rentals, Inc. – Term Debt (L+10.5%, 12.5% Cash, Due 6/2026)(K)
27,700 27,700 27,700 
27,700 27,700 
Leisure, Amusement, Motion Pictures, and Entertainment – 6.3%
Schylling, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 5/2025)(K)
27,981 27,981 27,981 
Total Secured First Lien Debt$233,881 $233,673 
Secured Second Lien Debt – 15.0%
Aerospace and Defense – 5.7%
Galaxy Technologies Holdings, Inc. – Term Debt (L+4.1%, 7.1% Cash, Due 10/2026)(K)
$6,500 $6,500 $6,500 
Galaxy Technologies Holdings, Inc. – Term Debt (L+7.0%, 10.0% Cash, Due 10/2026)(K)
18,796 18,796 18,796 
25,296 25,296 
Automobile – 0.3%
Country Club Enterprises, LLC – Term Debt (L+8.0%, 10.0% Cash, Due 7/2027)(J)
1,500 1,500 1,498 
Country Club Enterprises, LLC - Guaranty ($1,000) (Q)
— — 
1,500 1,498 
Cargo Transport – 2.9%
Diligent Delivery Systems – Term Debt (L+9.0%, 11.0% Cash, Due 11/2022)(J)
13,000 12,987 13,000 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 3.0%
Ginsey Home Solutions, Inc. – Term Debt (L+10.0%, 13.5% Cash, Due 1/2025)(H)(L)
13,300 13,300 13,300 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 3.1%
SFEG Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(G)(J)
3,128 3,128 2,909 
SFEG Holdings, Inc. – Term Debt (L+7.0%, 9.0% Cash, Due 11/2024)(G)(J)
11,736 11,736 10,914 
14,864 13,823 
Total Secured Second Lien Debt$67,947 $66,917 
11

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(I)
CostFair Value
Preferred Equity – 31.4%
Diversified/Conglomerate Services – 15.2%
Bassett Creek Services, Inc. – Preferred Stock(C)(K)
4,900 $4,900 $17,150 
Counsel Press, Inc. – Preferred Stock(C)(K)
6,995 6,995 25,374 
Horizon Facilities Services, Inc. – Preferred Stock(C)(K)
10,080 10,080 17,807 
Mason West, LLC – Preferred Stock(C)(K)
11,206 11,206 7,553 
33,181 67,884 
Healthcare, Education, and Childcare – 4.3%
Educators Resource, Inc. – Preferred Stock(C)(K)
8,560 8,560 19,252 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.6%
Brunswick Bowling Products, Inc. – Preferred Stock(C)(K)
6,653 6,653 21,485 
Ginsey Home Solutions, Inc. – Preferred Stock(C)(K)
19,280 9,583 3,263 
16,236 24,748 
Hotels, Motels, Inns, and Gaming Total – 2.3%
Nocturne Villa Rentals, Inc. – Preferred Stock (C)(K)
6,600 6,600 10,223 
Leisure, Amusement, Motion Pictures, and Entertainment – 4.0%
Schylling, Inc. – Preferred Stock(C)(K)
4,000 4,000 17,820 
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0%
SFEG Holdings, Inc. – Preferred Stock(C)(K)
29,577 4,643  
Total Preferred Equity
$73,220 $139,927 
Common Equity/Equivalents – 0.4%
Aerospace and Defense – 0.0%
Galaxy Technologies Holdings, Inc. – Common Stock(C)(K)
16,957 $11,513 $ 
Cargo Transport – 0.4%
Diligent Delivery Systems – Common Stock Warrants(C)(K)
%

500 1,533 

Diversified/Conglomerate Manufacturing– 0.0%
Phoenix Door Systems, Inc. – Common Stock(C)(K)
3,195 1,452  
Home and Office Furnishings, Housewares, and Durable Consumer Products – 0.0%
Ginsey Home Solutions, Inc. – Common Stock(C)(K)
63,747 8  
Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 0.0%
SFEG Holdings, Inc. – Common Stock(C)(K)
221,500 222  
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
Funko Acquisition Holdings, LLC(L) – Common Units(C)(P)
6,290 30 74 
Total Common Equity/Equivalents$13,725 $1,607 
Total Non-Control/Non-Affiliate Investments$388,773 $442,124 
AFFILIATE INVESTMENTS(N) – 60.8%
Secured First Lien Debt – 42.9%
Chemicals, Plastics, and Rubber – 6.0%
PSI Molded Plastics, Inc. – Term Debt (L+5.5%, 7.0% Cash, Due 1/2024)(K)
$26,618 $26,618 $26,618 
Diversified/Conglomerate Manufacturing – 2.0%
Edge Adhesives Holdings, Inc.(L) – Term Debt (L+5.5%, 7.5% Cash, Due 8/2024)(J)
9,210 9,210 9,072 
12

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(I)
CostFair Value
Diversified/Conglomerate Services – 20.5%
ImageWorks Display and Marketing Group, Inc. – Term Debt (L+11.0%, 13.0% Cash, Due 11/2022)(K)
22,000 22,000 22,000 
J.R. Hobbs Co. - Atlanta, LLC - Term Debt (L+6.0%, 8.0% Cash, Due 10/2024) (G)(K)
16,500 16,500 15,023 
J.R. Hobbs Co. - Atlanta, LLC – Term Debt (L+10.3%, 11.8% Cash, Due 10/2024) (G)(K)
26,000 26,000 23,672 
J.R. Hobbs Co. - Atlanta, LLC – Term Debt (L+6.0%, 8.0% Cash, Due 3/2023) (G)(K)
2,438 2,438 2,219 
J.R. Hobbs Co. - Atlanta, LLC - Guaranty ($9,250) (Q)
— — — 
The Maids International, LLC – Term Debt (L+10.5%, 12.0% Cash, Due 3/2025)(K)
28,560 28,560 28,560 
95,498 91,474 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.6%
Old World Christmas, Inc. – Secured First Lien Term Loan (L+9.5%, 11.0% Cash, Due 12/2025)(K)
25,000 25,000 25,000 
Mining, Steel, Iron and Non-Precious Metals Total – 4.1%
Utah Pacific Bridge & Steel, Ltd., $2,000 available (L+8.5%, 10.0% Cash, Due 7/2022)(K)
— — — 
Utah Pacific Bridge & Steel, Ltd. (L+10.0%, 11.5% Cash, Due 7/2026)(K)
18,250 18,250 18,250 
18,250 18,250 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 1.0%
The Mountain Corporation – Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 5/2022)(G)(K)
3,400 3,400 3,400 
The Mountain Corporation – Line of Credit, $100 available (L+5.0%, 9.0% Cash, Due 5/2023)(G)(K)
800 800 800 
4,200 4,200 
Telecommunications – 3.7%
B+T Group Acquisition, Inc.(L) – Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2024)(K)
2,800 2,800 2,800 
B+T Group Acquisition, Inc.(L) – Term Debt (L+11.0%, 13.0% Cash, Due 12/2024)(K)
14,000 14,000 14,000 
16,800 16,800 
Total Secured First Lien Debt$195,576 $191,414 
Secured Second Lien Debt – 0.2%
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.2%
The Mountain Corporation – Term Debt (L+4.0%, 7.0% Cash, Due 4/2024)(G)(K)
$11,700 $11,700 $923 
The Mountain Corporation – Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024)(G)(K)
1,500 1,500 118 
$13,200 $1,041 
Total Secured Second Lien Debt
$13,200 $1,041 
Preferred Equity – 17.4%
Chemicals, Plastics, and Rubber – 0.0%
PSI Molded Plastics, Inc. – Preferred Stock(C)(K)
158,598 $19,730 $ 
Diversified/Conglomerate Manufacturing – 0.0%
Edge Adhesives Holdings, Inc.(L) – Preferred Stock(C)(K)
8,199 8,199  
Diversified/Conglomerate Services – 4.3%
ImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(K)
67,490 6,749 16,405 
J.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(K)
10,920 10,920 — 
The Maids International, LLC – Preferred Stock(C)(K)
6,640 6,640 2,679 
24,309 19,084 
Home and Office Furnishings, Housewares, and Durable Consumer Products – 8.5%
Old World Christmas, Inc. – Preferred Stock(C)(K)
6,180  37,842 
Mining, Steel, Iron and Non-Precious Metals –1.3%
Utah Pacific Bridge & Steel, Ltd. - Preferred Stock(C)(K)
6,000 6,000 6,000 
13

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
Company and Investment(A)(B)(D)(E)
Principal/Shares/
Units(F)(I)
CostFair Value
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Preferred Stock(C)(K)
6,899 6,899  
Telecommunications – 3.3%
B+T Group Acquisition, Inc.(L) – Preferred Stock(C)(K)
14,304 4,722 14,746 
Total Preferred Equity$69,859 $77,672 
Common Equity/Equivalents – 0.3%
Diversified/Conglomerate Services – 0.1%
Nth Degree Investment Group, LLC – Common Stock(C)(K)
14,360,000 $1,219 $511 
Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0%
The Mountain Corporation – Common Stock(C)(K)
751 1  
Telecommunications – 0.2%
B+T Group Acquisition, Inc.(L) – Common Stock Warrants(C)(K)
3.5 % 921 
Total Common Equity/Equivalents$1,220 $1,432 
Total Affiliate Investments$279,855 $271,559 
CONTROL INVESTMENTS(O) – 0.2%:
Common Equity/Equivalents – 0.2%
Leisure, Amusement, Motion Pictures, and Entertainment – 0.2%
Gladstone SOG Investments, Inc. - Common Stock(C)(K)
100 $620 $713 
Total Common Equity/Equivalents$620 $713 
Total Control Investments$620 $713 
TOTAL INVESTMENTS – 160.2%(R)
$669,248 $714,396 
(A)Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company. The majority of the securities listed, totaling $537.5 million at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5—Borrowings in the accompanying Notes to Consolidated Financial Statements. Additionally, under Section 55 of the 1940 Act, we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of March 31, 2022, our investment in Funko was considered a non-qualifying asset under Section 55 of the 1940 Act and represented less than 0.1% of total investments, at fair value.
(B)Unless indicated otherwise, all cash interest rates are indexed to 30-day LIBOR, which was 0.5% as of March 31, 2022. If applicable, paid-in-kind interest rates are noted separately from the cash interest rate. Certain securities are subject to an interest rate floor. The cash interest rate is the greater of the floor or 30-day LIBOR plus a spread. Due dates represent the contractual maturity date.
(C)Security is non-income producing.
(D)Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of March 31, 2022.
(E)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the ASC 820 fair value hierarchy. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(F)Where applicable, aggregates all shares of a class of stock owned without regard to specific series owned within such class (some series of which may or may not be voting shares) or aggregates all warrants to purchase shares of a class of stock owned without regard to specific series of such class of stock such warrants allow us to purchase.
(G)Debt security is on non-accrual status.
(H)$5.1 million of the debt security was participated to a third-party, but is accounted for as collateral for a secured borrowing under accounting principles generally accepted in the U.S. and presented as Secured borrowing on our accompanying Consolidated Statements of Assets and Liabilities as of March 31, 2022.
(I)Represents the principal balance, presented in thousands, for debt investments and the number of shares/units held for equity investments. Warrants are represented as a percentage of ownership, as applicable.
(J)Fair value was based on internal yield analysis or on estimates of value submitted by ICE Data Pricing and Reference Data, LLC. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(K)Fair value was based on the total enterprise value of the portfolio company, which is generally allocated to the portfolio company’s securities in order of their relative priority in the capital structure. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
14

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
MARCH 31, 2022
(DOLLAR AMOUNTS IN THOUSANDS)
(L)One of our affiliated funds, Gladstone Capital Corporation, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
(M)Non-Control/Non-Affiliate investments, as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 5.0% of the issued and outstanding voting securities.
(N)Affiliate investments, as defined by the 1940 Act, are those that are not Control investments and in which we own, with the power to vote, between and inclusive of 5.0% and 25.0% of the issued and outstanding voting securities.
(O)Control investments, as defined by the 1940 Act, are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.
(P)Our investment in Funko was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Our common units in Funko are convertible into class A common stock in Funko, Inc. upon meeting certain requirements. Fair value was based on the closing market price of shares of Funko, Inc. as of the reporting date, less a discount for lack of marketability. Funko, Inc. is traded on the Nasdaq Global Select Market under the trading symbol “FNKO.” Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.
(Q)Refer to Note 10—Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information regarding this guaranty.
(R)Cumulative gross unrealized appreciation for federal income tax purposes is $140.8 million; cumulative gross unrealized depreciation for federal income tax purposes is $97.1 million. Cumulative net unrealized appreciation is $43.8 million, based on a tax cost of $670.6 million.



15

GLADSTONE INVESTMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA AND AS OTHERWISE INDICATED)
(UNAUDITED)
NOTE 1. ORGANIZATION
Gladstone Investment Corporation (“Gladstone Investment”) was incorporated under the General Corporation Law of the State of Delaware on February 18, 2005, and completed an initial public offering on June 22, 2005. The terms “the Company,” “we,” “our” and “us” all refer to Gladstone Investment and its consolidated subsidiaries. We are an externally advised, closed-end, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and are applying the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies” (“ASC 946”). In addition, we have elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”). We were established for the purpose of investing in debt and equity securities of established private businesses in the United States (“U.S.”). Debt investments primarily take the form of two types of loans: secured first lien loans and secured second lien loans. Equity investments primarily take the form of preferred or common equity (or warrants or options to acquire the foregoing), often in connection with buyouts and other recapitalizations. Our investment objectives are to: (i) achieve and grow current income by investing in debt securities of established businesses that we believe will provide stable earnings and cash flow to pay expenses, make principal and interest payments on our outstanding indebtedness and make distributions to stockholders that grow over time, and (ii) provide our stockholders with long-term capital appreciation in the value of our assets by investing in equity securities of established businesses, generally in combination with the aforementioned debt securities, that we believe can grow over time to permit us to sell our equity investments for capital gains. We intend that our investment portfolio over time will consist of approximately 75.0% in debt investments and 25.0% in equity investments, at cost. As of September 30, 2022, our investment portfolio was comprised of 76.6% in debt investments and 23.4% in equity investments, at cost.
Gladstone Business Investment, LLC (“Business Investment”), a wholly-owned subsidiary of ours, was established on August 11, 2006 for the sole purpose of holding certain investments pledged as collateral under our line of credit. The financial statements of Business Investment are consolidated with those of Gladstone Investment.
We are externally managed by Gladstone Management Corporation (the “Adviser”), an affiliate of ours and a U.S. Securities and Exchange Commission (“SEC”) registered investment adviser, pursuant to an investment advisory and management agreement (the “Advisory Agreement”). Administrative services are provided by Gladstone Administration, LLC (the “Administrator”), an affiliate of ours and the Adviser, pursuant to an administration agreement (the “Administration Agreement”). Refer to Note 4 — Related Party Transactions for more information regarding these arrangements.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unaudited Interim Financial Statements and Basis of Presentation
We prepare our interim financial statements in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of SEC Regulation S-X. Accordingly, we have not included in this quarterly report all of the information and notes required by GAAP for annual financial statements. The accompanying Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In accordance with Article 6 of Regulation S-X, we do not consolidate portfolio company investments. Under the investment company rules and regulations pursuant to the American Institute of Certified Public Accountants Audit and Accounting Guide for Investment Companies, codified in ASC 946, we are precluded from consolidating any entity other than another investment company, except that ASC 946 provides for the consolidation of a controlled operating company that provides substantially all of its services to the investment company or its consolidated subsidiaries. In our opinion, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim periods have been included. The results of operations for the three and six months ended September 30, 2022 are not necessarily indicative of results that ultimately may be achieved for the fiscal year ending March 31, 2023 or any future interim period. The interim financial statements and notes thereto should be read in conjunction with the financial
16

statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended March 31, 2022, as filed with the SEC on May 11, 2022.
Use of Estimates
Preparing financial statements requires management to make estimates and assumptions that affect the amounts reported in our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements. Actual results may differ from those estimates.
Investment Valuation Policy
Accounting Recognition
We record our investments at fair value in accordance with the FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) and the 1940 Act. Investment transactions are recorded on the trade date. Realized gains or losses are generally measured by the difference between the net proceeds from the repayment or sale and the cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, and include investments charged off during the period, net of recoveries. Unrealized appreciation or depreciation primarily reflects the change in investment fair values, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.
Board Responsibility

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which permits a BDC’s board of directors to designate its investment adviser as a valuation designee to perform fair value determinations for its investment portfolio, subject to the active oversight of such board. Our board of directors (the “Board of Directors”) has approved investment valuation policies and procedures pursuant to Rule 2a-5 (the “Policy”) and, in July 2022, designated the Adviser to serve as the Board of Directors’ valuation designee.

In accordance with the 1940 Act and SEC Rule 2a-5, our Board of Directors has the ultimate responsibility for reviewing and determining, in good faith, the fair value of our investments for which market quotations are not readily available based on our Policy and for overseeing the valuation designee. Such review and oversight includes receiving written fair value determinations and supporting materials provided by the valuation designee, in coordination with the Administrator and with the oversight by the Company’s chief valuation officer (collectively, the “Valuation Team”). The Valuation Committee of our Board of Directors (comprised entirely of independent directors) meets to review the valuation determinations and supporting materials, discusses the information provided by the Valuation Team, determines whether the Valuation Team has followed the Policy, and reviews other facts and circumstances, including current valuation risks, conflicts of interest, material valuation matters, appropriateness of valuation methodologies, back-testing results, price challenges/overrides, and ongoing monitoring and oversight of pricing services. After the Valuation Committee concludes its meeting, it and the chief valuation officer, representing the Valuation Designee, present the Valuation Committee’s findings to the entire Board of Directors so that the full Board of Directors may review and approve in good faith the Valuation Designee’s determined fair values of such investments in accordance with the Policy.

There is no single standard for determining fair value (especially for privately-held businesses), as fair value depends upon the specific facts and circumstances of each individual investment. In determining the fair value of our investments, the Valuation Team, led by the chief valuation officer, uses the Policy, and each quarter the Valuation Committee and Board of Directors review the Policy to determine if changes thereto are advisable and whether the Valuation Team has applied the Policy consistently.
Use of Third-Party Valuation Firms
The Valuation Team engages third-party valuation firms to provide independent assessments of fair value of certain of our investments.
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ICE Data Pricing and Reference Data, LLC (“ICE”), a valuation specialist, generally provides estimates of fair value on our debt investments. The Valuation Team generally assigns ICE’s estimates of fair value to our debt investments where we do not have the ability to effectuate a sale of the applicable portfolio company. The Valuation Team corroborates ICE’s estimates of fair value using one or more of the valuation techniques discussed below. The Valuation Team’s estimate of value on a specific debt investment may significantly differ from ICE’s. When this occurs, our Valuation Committee and Board of Directors review whether the Valuation Team has followed the Policy and whether the Valuation Team’s recommended fair value is reasonable in light of the Policy and other facts and circumstances before determining fair value.
We may engage other independent valuation firms to provide earnings multiple ranges, as well as other information, and evaluate such information for incorporation into the total enterprise value (“TEV”) of certain of our investments. Generally, at least once per year, we engage an independent valuation firm to value or review the valuation of each of our significant equity investments, which includes providing the information noted above. The Valuation Team evaluates such information for incorporation into our TEV, including review of all inputs provided by the independent valuation firm. The Valuation Team then makes a recommendation to our Valuation Committee and Board of Directors as to the fair value. Our Board of Directors reviews the recommended fair value and whether it is reasonable in light of the Policy and other relevant facts and circumstances before determining fair value.
Valuation Techniques
In accordance with ASC 820, the Valuation Team uses the following techniques when valuing our investment portfolio:
Total Enterprise Value — In determining the fair value using a TEV, the Valuation Team first calculates the TEV of the portfolio company by incorporating some or all of the following factors: the portfolio company’s ability to make payments and other specific portfolio company attributes; the earnings of the portfolio company (the trailing or projected twelve month revenue or earnings before interest, taxes, depreciation and amortization (“EBITDA”)); EBITDA multiples obtained from our indexing methodology whereby the original transaction EBITDA multiple at the time of our closing is indexed to a general subset of comparable disclosed transactions and EBITDA multiples from recent sales to third parties of similar securities in similar industries; a comparison to publicly traded securities in similar industries; and other pertinent factors. The Valuation Team generally reviews industry statistics and may use outside experts when gathering this information. Once the TEV is determined for a portfolio company, the Valuation Team generally allocates the TEV to the portfolio company’s securities based on the facts and circumstances of the securities, which typically results in the allocation of fair value to securities based on the order of their relative priority in the capital structure. Generally, the Valuation Team uses TEV to value our equity investments and, in the circumstances where we have the ability to effectuate a sale of a portfolio company, our debt investments.
TEV is primarily calculated using EBITDA and EBITDA multiples; however, TEV may also be calculated using revenue and revenue multiples or a discounted cash flow (“DCF”) analysis whereby future expected cash flows of the portfolio company are discounted to determine a net present value using estimated risk-adjusted discount rates, which incorporate adjustments for nonperformance and liquidity risks.
Yield Analysis — The Valuation Team generally determines the fair value of our debt investments for which we do not have the ability to effectuate a sale of the applicable portfolio company using the yield analysis, which includes a DCF calculation and assumptions that the Valuation Team believes market participants would use, including: estimated remaining life, current market yield, current leverage, and interest rate spreads. This technique develops a modified discount rate that incorporates risk premiums including, among other things, increased probability of default, increased loss upon default, and increased liquidity risk. Generally, the Valuation Team uses the yield analysis to corroborate both estimates of value provided by ICE and market quotes.
Market Quotes — For our investments for which a limited market exists, we generally base fair value on readily available and reliable market quotations, which are corroborated by the Valuation Team (generally by using the yield analysis described above). In addition, the Valuation Team assesses trading activity for similar investments and evaluates variances in quotations and other market insights to determine if any available quoted prices are reliable. Typically, the Valuation Team uses the lower indicative bid price in the bid-to-ask price range obtained from the respective originating syndication agent’s trading desk on or near the valuation date. The Valuation Team may take further steps to consider additional information to validate that price in accordance with the Policy. For securities that are publicly traded, we generally base fair value on the closing market price of the
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securities we hold as of the reporting date. For restricted securities that are publicly traded, we generally base fair value on the closing market price of the securities we hold as of the reporting date less a discount for the restriction, which includes consideration of the nature and term to expiration of the restriction.
Investments in Funds — For equity investments in other funds for which we cannot effectuate a sale of the fund, the Valuation Team generally determines the fair value of our invested capital at the net asset value (“NAV”) provided by the fund. Any invested capital that is not yet reflected in the NAV provided by the fund is valued at par value. The Valuation Team may also determine fair value of our investments in other investment funds based on the capital accounts of the underlying entity.
In addition to the valuation techniques listed above, the Valuation Team may also consider other factors when determining the fair value of our investments, including: the nature and realizable value of the collateral, including external parties’ guaranties, any relevant offers or letters of intent to acquire the portfolio company, timing of expected loan repayments, and the markets in which the portfolio company operates.
Fair value measurements of our investments may involve subjective judgments and estimates and, due to the uncertainty inherent in valuing these securities, the determinations of fair value may fluctuate from period to period and may differ materially from the values that could be obtained if a ready market for these securities existed. Our NAV could be materially affected if the determinations regarding the fair value of our investments are materially different from the values that we ultimately realize upon our disposal of such securities. Additionally, changes in the market environment and other events that may occur over the life of the investment may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which it is recorded.
Refer to Note 3 Investments for additional information regarding fair value measurements and our application of ASC 820.
Revenue Recognition
Interest Income Recognition
Interest income, adjusted for amortization of premiums, amendment fees and acquisition costs and the accretion of discounts, is recorded on the accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 90 days or more past due, or if our qualitative assessment indicates that the debtor is unable to service its debt or other obligations, we will place the loan on non-accrual status and cease recognizing interest income on that loan until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, we remain contractually entitled to this interest. Interest payments received on non-accrual loans may be recognized as income or applied to the cost basis, depending upon management’s judgment. Generally, non-accrual loans are restored to accrual status when past-due principal and interest are paid and, in management’s judgment, are likely to remain current, or, due to a restructuring, the interest income is deemed to be collectible. As of September 30, 2022, our loans to J.R. Hobbs Co. – Atlanta, LLC (“J.R. Hobbs”) and The Mountain Corporation (“The Mountain”) were on non-accrual status, with an aggregate debt cost basis of $63.4 million, or 11.8% of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $32.8 million, or 6.6% of the fair value of all debt investments in our portfolio. As of March 31, 2022, our loans to J.R. Hobbs, The Mountain, and SFEG Holdings, Inc. were on non-accrual status, with an aggregate debt cost basis of $77.2 million, or 15.1% of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $60.0 million, or 12.2% of the fair value of all debt investments in our portfolio.
Paid-in-kind (“PIK”) interest, computed at the contractual rate specified in the loan agreement, is added to the principal balance of the loan and recorded as interest income. As of September 30, 2022 and March 31, 2022, we did not have any loans with a PIK interest component.
Success Fee Income Recognition
We record success fees as income when earned, which often occurs upon receipt of cash. Success fees are generally contractually due upon a change of control in a portfolio company, typically resulting from an exit or sale, and are non-recurring.
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Dividend Income Recognition
We accrue dividend income on preferred and common equity securities to the extent that such amounts are expected to be collected and if we have the option to collect such amounts in cash or other consideration.
Related Party Fees
We are party to the Advisory Agreement with the Adviser, which is owned and controlled by our chairman and chief executive officer. In accordance with the Advisory Agreement, we pay the Adviser fees as compensation for its services, consisting of a base management fee and an incentive fee. Additionally, we pay the Adviser a loan servicing fee as compensation for its services as servicer under the terms of the Fifth Amended and Restated Credit Agreement dated April 30, 2013, as amended (the "Credit Facility").
We are also party to the Administration Agreement with the Administrator, which is owned and controlled by our chairman and chief executive officer, whereby we pay separately for administrative services.
Refer to Note 4 — Related Party Transactions for additional information regarding these related party fees and agreements.
Recent Accounting Pronouncements
In June 2022, the FASB issued Accounting Standards Update 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”), which clarifies the measurement and presentation of fair value for equity securities subject to contractual restrictions that prohibit the sale of the equity security. ASU 2022-03 is effective for annual reporting periods beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. Our adoption of ASU 2022-03 did not have a material impact on our financial position, results of operations or cash flows.
NOTE 3. INVESTMENTS
Fair Value
In accordance with ASC 820, we determine the fair value of our investments to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the following three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.
Level 1 — inputs