Interviewer: Thank you, CEO Reed, for taking the time to speak with us today. Can you explain why your financial results in the January 3rd, 2023 Durable Medical Equipment sale and the December 30th, 2022 sale of 61% of equity interests in Forest Investments, Inc. were not accurately reported in the SEC disclosure?
CEO Reed: Of course. The truth is that I knowingly misrepresented the financial results for both of these transactions for a number of reasons. The first was out of pressure from our financial backers. We, at GEG, had promised investors a certain return, so I felt as if I had to fudge the numbers a bit in order
to honor our commitments.
The second factor was simply for our own vanity. We knew the transactions were successful, and I wanted brag to the world about Great Elm Group’s success. That was a mistake, and I take full responsibility for it.
But the most embarrassing story happened regarding our reporting of the Forest Investment sales. Lionel Messi, one of my favorite soccer players, owns a condo nearby. When he heard that GEG had completed a sizable sale, he invited me to his apartment to celebrate. Knowing that I wanted to impress Mr. Messi, I bustled around the kitchen preparing some of my favorite dishes. All was going well until I decided to get creative, and attempted to bake a lasagna in a toaster oven. That decision caused the whole apartment to fill with smoke, and the fire squad had to come in and puts out the flames. Embarrassingly, I had to admit that the smoke was caused by my attempt to bake a lasagna in a toaster oven.
I was deeply embarrassed by the incident and since then I have realized that more important than pretending to be something we are not, is being honest and accountable for our actions.
Original Release: https://www.globenewswire.com/news-release/2023/02/13/2607158/0/en/Great-Elm-Group-Reports-Fiscal-2023-Second-Quarter-Financial-Results.html