GLADSTONE INVESTMENT CORPORATIONDE 10-K

ITEM 9A. CONTROLS AND PROCEDURES a) Disclosure Controls and Procedures As of March 31, 2021 (the end of the period covered by this report), we, including our chief executive officer and chief financial officer, evaluated the effectiveness and design and operation of our disclosure controls and procedures. Based on that evaluation, our management, including the chief executive officer and chief financial officer, concluded that our disclosure controls and procedures were effective at a reasonable assurance level in timely alerting management, including the chief executive officer and chief financial officer, of material information about us required to be included in periodic SEC filings. However, in evaluation of the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. b) Management’s Annual Report on Internal Control over Financial Reporting Refer to Management’s Annual Report on Internal Control over Financial Reporting located in Item 8 of this Form 10-K. c) Attestation Report of the Independent Registered Public Accounting Firm Not Applicable. d) Change in Internal Control over Financial Reporting There were no changes in internal controls for the three months ended March 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHER INFORMATION. Not applicable. 141 Table of Contents PART III We will file a definitive Proxy Statement for our 2021 Annual Meeting of Stockholders (the “2021 Proxy Statement”) with the SEC, pursuant to Regulation 14A, not later than 120 days after the end of our fiscal year. Accordingly, certain information required by Part III has been omitted under General Instruction G(3) to Form 10-K. Only those sections of the 2021 Proxy Statement that specifically address the items set forth herein are incorporated by reference. ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by Item 10 is hereby incorporated by reference from our 2021 Proxy Statement under the captions “ Election of Directors ” and “ Information Regarding the Board of Directors and Corporate Governance. ” ITEM 11. EXECUTIVE COMPENSATION The information required by Item 11 is hereby incorporated by reference from our 2021 Proxy Statement under the captions “ Executive Compensation ” and “ Director Compensation For Fiscal 2021 .” ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by Item 12 is hereby incorporated by reference from our 2021 Proxy Statement under the caption “ Security Ownership of Certain Beneficial Owners and Management .” ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by Item 13 is hereby incorporated by reference from our 2021 Proxy Statement under the captions “ Certain Transactions ” and “ Information Regarding the Board of Directors and Corporate Governance .” ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information required by Item 14 is hereby incorporated by reference from our 2021 Proxy Statement under the caption “ Independent Registered Public Accounting Firm Fees .” 142 Table of Contents PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES a. DOCUMENTS FILED AS PART OF THIS REPORT 1. The following financial statements are filed herewith: Report of Independent Registered Public Accounting Firm 83 Consolidated Statements of Assets and Liabilities as of March 31, 2021 and 2020 85 Consolidated Statements of Operations for the years ended March 31, 2021, 2020, and 2019 86 Consolidated Statements of Changes in Net Assets for the years ended March 31, 2021, 2020, and 2019 88 Consolidated Statements of Cash Flows for the years ended March 31, 2021, 2020, and 2019 89 Consolidated Schedules of Investments as of March 31, 2021 and 2020 91 Notes to Consolidated Financial Statements 105 2. The following financial statement schedule is filed herewith: Schedule 12-14 Investments in and Advances to Affiliates 148 No other financial statement schedules are filed herewith because (1) such schedules are not required or (2) the information has been presented in the aforementioned financial statements. 3. Exhibits The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC: 3.1 Amended and Restated Certificate of Incorporation, incorporated by reference to Exhibit A.2 to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File No. 333-123699), filed May 13, 2005. 3.1.a Certificate of Designation of 6.25% Series D Cumulative Term Preferred Stock Due 2023, incorporated by reference to Exhibit 3.5 to the Registration Statement on Form 8-A (File No. 001-34007), filed September 22, 2016. 3.1.b Certificate of Designation of 6.375% Series E Cumulative Term Preferred Stock Due 2025, incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 814-00704), filed August 16, 2018. 3.1.c Certificate of Increase of Shares Designated as 6.375% Series E Cumulative Term Preferred Stock due 2025 of Gladstone Investment Corporation incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 814-00704), filed May 21, 2020 . 3.2 Second Amended and Restated Bylaws, incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 814-00704), filed May 15, 2020 . 3.3 Certificate of Elimination of 6.25% Series D Cumulative Term Preferred Stock Due 2023* 4.1 Specimen Stock Certificate, incorporated by reference to Exhibit d to Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 (File No. 333-123699), filed June 21, 2005. 143 Table of Contents 4.2 Specimen 6.25% Series D Cumulative Term Preferred Stock Due 2023 Stock Certificate, incorporated by reference to Exhibit 4.5 to the Registration Statement on Form 8-A (File No. 001-34007), filed September 22, 2016. 4.3 Specimen 6.375% Series E Cumulative Term Preferred Stock Due 2025 Stock Certificate incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 814-00704), filed August 16, 2018. 4.4 Indenture, dated as of May 22, 2020, between Gladstone Investment Corporation and UMB Bank, National Association, as trustee incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 814-00704), filed May 22, 2020 . 4.5 Second Supplemental Indenture between Gladstone Investment Corporation and UMB Bank, National Association, dated as of March 2, 2021, incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 814-00704), filed March 2, 2021. 4.6 Description of Securities* 10.1 Stock Transfer Agency Agreement between the Registrant and The Bank of New York, incorporated by reference to Exhibit k.1 to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File No. 333-123699), filed May 13, 2005. 10.2 Custody Agreement between the Registrant and The Bank of New York, incorporated by reference to Exhibit j to Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 (File No. 333-123699), filed June 21, 2005. 10.3 Investment Advisory and Management Agreement between the Registrant and Gladstone Management Corporation, dated June 22, 2005, incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K (File No. 814-00704), filed June 14, 2006. 10.4 Administration Agreement between the Registrant and Gladstone Administration, LLC, dated June 22, 2005, incorporated by reference to Exhibit 10.2 to the Annual Report on Form 10-K (File No. 814-00704), filed June 14, 2006. 10.5 Custodial Agreement by and among Gladstone Business Investment, LLC, the Registrant, Gladstone Management Corporation, The Bank of New York Trust Company, N.A. and Deutsche Bank AG, New York Branch, dated October 19, 2006, incorporated by reference to Exhibit 2.j.2 to Post-Effective Amendment No. 2 to the Registration Statement on Form N-2 (File No. 333-181879), filed June 7, 2013. 10.6 Amendment No. 1 to Custodial Agreement by and among Gladstone Business Investment, LLC, the Registrant, Gladstone Management Corporation, The Bank of New York Trust Company, N.A. and Deutsche Bank AG, New York Branch, dated April 14, 2009, incorporated by reference to Exhibit 2.j.3 to Post-Effective Amendment No. 2 to the Registration Statement on Form N-2 (File No. 333-181879), filed June 7, 2013. 10.7 Fifth Amended and Restated Credit Agreement, dated as of April 30, 2013, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, the Financial Institutions as party thereto, and Key Equipment Finance, Inc., incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 814-00704), filed May 2, 2013. 10.8 Joinder Agreement, dated as of June 12, 2013, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Key Equipment Finance Inc. and EverBank Commercial Finance, Inc., incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 814-00704), filed June 17, 2013. 10.9 Joinder Agreement, dated as of June 12, 2013, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Key Equipment Finance Inc. and AloStar Bank of Commerce, incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K (File No. 814-00704), filed June 17, 2013. 144 Table of Contents 10.10 Amendment No. 1 to Fifth Amended and Restated Credit Agreement, dated as of June 26, 2014, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, the Financial Institutions as party thereto, and Key Equipment Finance, a division of KeyBank National Association, by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 814-00704), filed June 30, 2014. 10.11 Joinder Agreement, dated as of September 19, 2014, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Key Equipment Finance, a division of KeyBank National Association, and East West Bank, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 814-00704), filed September 22, 2014. 10.12 Joinder Agreement, dated as of September 19, 2014, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Key Equipment Finance, a division of KeyBank National Association, and Manufacturers and Traders Trust, incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K (File No. 814-00704), filed September 22, 2014. 10.13 Joinder Agreement, dated as of September 19, 2014, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Key Equipment Finance, a division of KeyBank National Association, and Customers Bank, incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K (File No. 814-00704), filed September 22, 2014. 10.14 Joinder Agreement, dated as of September 19, 2014, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Key Equipment Finance, a division of KeyBank National Association, and Talmer Bank and Trust, incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K (File No. 814-00704), filed September 22, 2014. 10.15 Amendment No. 2 to Fifth Amended and Restated Credit Agreement, dated November 16, 2016, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Keybank National Association, AloStar Bank of Commerce, Manufacturers and Traders Trust, East West Bank, Chemical Bank (as successor in interest to Talmer Bank and Trust) and Customers Bank, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 811-23191), filed November 17, 2016. 10.16 Amendment No. 3 to Fifth Amended and Restated Credit Agreement, dated January 20, 2017, by and among Gladstone Business Investment, LLC, Gladstone Management Corporation, Keybank National Association, AloStar Bank of Commerce, Manufacturers and Traders Trust, East West Bank, Chemical Bank (as successor in interest to Talmer Bank and Trust) and Customers Bank, incorporated by reference to Exhibit 2.k.12 to Post-Effective Amendment No. 3 to the Registration Statement on Form N-2 (File No. 333-204996), filed May 11, 2017. 10.17 Amendment No. 4 to Fifth Amended and Restated Credit Agreement, dated as of August 22, 2018 by and among Gladstone Business Investment, LLC, as Borrower, Gladstone Management Corporation, as Servicer, Keybank National Association, as administrative agent, swingline lender, managing agent and lead arranger and certain other lenders party thereto, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 814-00704), filed August 23, 2018. 10.18 Amendment No. 5 to Fifth Amended and Restated Credit Agreement, dated as of August 10, 2020 by and among Gladstone Business Investment, LLC, as Borrower, Gladstone Management Corporation, as Servicer, KeyBank National Association, as administrative agent, swingline lender, managing agent and lead arranger and certain other lenders party thereto, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 814-00704), filed August 11, 2020. 10.19 Amendment No. 6 to Fifth Amended and Restated Credit Agreement, dated as of March 8, 2021 by and among Gladstone Business Investment, LLC, as Borrower, Gladstone Management Corporation, as Servicer, KeyBank National Association, as administrative agent, swingline lender, managing agent and lead arranger and certain other lenders party thereto, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 814-00704), filed March 8, 2021. 145 Table of Contents 14 Code of Ethics and Business Conduct, updated January 28, 2013, incorporated by reference to Exhibit 2.r to the Post-Effective Amendment No. 2 to the Registration Statement on Form N-2 (File No. 333-181979), filed June 7, 2013. 21* Subsidiaries of the Registrant. 23.1* Consent of Registered Public Accounting Firm 31.1* Certification of Chief Executive Officer filed pursuant to section 302 of The Sarbanes-Oxley Act of 2002. 31.2* Certification of Chief Financial Officer filed pursuant to section 302 of The Sarbanes-Oxley Act of 2002. 32.1† Certification of Chief Executive Officer furnished pursuant to section 906 of The Sarbanes-Oxley Act of 2002. 32.2† Certification of Chief Financial Officer furnished pursuant to section 906 of The Sarbanes-Oxley Act of 2002. * Filed herewith † Furnished herewith Item 16. Form 10-K Summary. None. 146 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GLADSTONE INVESTMENT CORPORATION Date: May 11, 2021 By: /s/ JULIA RYAN Julia Ryan Chief Financial Officer and Treasurer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Date: May 11, 2021 By: /s/ DAVID GLADSTONE David Gladstone Chief Executive Officer and Chairman of the Board of Directors (principal executive officer) Date: May 11, 2021 By: /s/ TERRY LEE BRUBAKER Terry Lee Brubaker Vice Chairman and Chief Operating Officer Date: May 11, 2021 By: /s/ JULIA RYAN Julia Ryan Chief Financial Officer and Treasurer (principal financial and accounting officer) Date: May 11, 2021 By: /s/ ANTHONY W. PARKER Anthony W. Parker Director Date: May 11, 2021 By: /s/ MICHELA A. ENGLISH Michela A. English Director Date: May 11, 2021 By: /s/ PAUL ADELGREN Paul Adelgren Director Date: May 11, 2021 By: /s/ JOHN H. OUTLAND John H. Outland Director Date: May 11, 2021 By: /s/ CAREN D. MERRICK Caren D. Merrick Director Date: May 11, 2021 By: /s/ WALTER H. WILKINSON, JR. Walter H. Wilkinson, Jr. Director 147 Table of Contents SCHEDULE 12-14 GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 AFFILIATE INVESTMENTS—80.9% Secured First Lien Debt—47.6% Beverage, Food, and Tobacco—2.4% Head Country, Inc.—Term Debt (L+10.5%, 12.5% Cash, Due 2/2023) $ 9,050 $ — $ 1,147 $ 9,050 $ — $ — $ — $ 9,050 Chemicals, Plastics, and Rubber—6.0% PSI Molded Plastics, Inc.—Term Debt (L+5.5%, 7.0% Cash, Due 1/2024) (P) 26,618 — 973 — 17,114 — 5,871 22,985 Diversified/Conglomerate Manufacturing—5.4% D.P.M.S., Inc.—Line of Credit, $0 Available (L+6.5%, 9.0% Cash (0.5% Unused Fee), Due 10/2023) 1,500 — 117 1,250 250 — — 1,500 D.P.M.S., Inc.—Term Debt (10.0% Cash, Due 10/2023) (M) 10,796 — 1,095 10,796 — — (5,045 ) 5,751 Edge Adhesives Holdings, Inc.—Line of Credit, $0 available (L+8.0%, 10.0% Cash, Due 9/2021) 1,020 — 87 395 600 — 10 1,005 148 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 Edge Adhesives Holdings, Inc.—Term Debt (L+10.5%, 12.5% Cash, Due 2/2022) $ 9,300 $ — $ 1,179 $ 8,742 $ — $ — $ 419 $ 9,161 Edge Adhesives Holdings, Inc.—Term Debt (L+11.8%, 13.8% Cash, Due 2/2022) 3,000 — 418 2,820 — — 135 2,955 — 2,896 24,003 850 — (4,481 ) 20,372 Diversified/Conglomerate Services—13.3% ImageWorks Display and Marketing Group, Inc. —Term Debt (L+11.0%, 13.0% Cash, Due 11/2022) 22,000 — 2,900 22,000 — — — 22,000 The Maids International, LLC—Line of Credit (N) — — 24 1,000 — (1,000 ) — — The Maids International, LLC—Term Debt (L+10.5%, 12.0% Cash, Due 3/2025) 28,560 — 3,088 28,560 — — — 28,560 — 6,012 51,560 — (1,000 ) — 50,560 149 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 Home and Office Furnishings, Housewares, and Durable Consumer Products—7.1% Old World Christmas, Inc. —Term Debt (L+9.5%, 11/0% Cash, Due 12/2025) (O) $ 27,000 $ — $ 866 $ — $ 27,000 $ — $ — $ 27,000 Leisure, Amusement, Motion Pictures, and Entertainment —2.3% SOG Specialty Knives & Tools, LLC—Term Debt (Due 12/2023) (L) 538 — — 538 — — — 538 SOG Specialty Knives & Tools, LLC—Term Debt (L+4.0%, 6.0% Cash, Due 12/2023) 8,399 — 169 8,399 — — — 8,399 — 169 8,937 — — — 8,937 Personal and Non-Durable Consumer Products (Manufacturing Only) —7.0% The Mountain Corporation —Line of Credit, $0 available (L+5.0%, 9.0% Cash, Due 4/2021) (K) 3,400 — — 3,400 — — — 3,400 Pioneer Square Brands, Inc. —Term Debt (L+12.0%, 13.0% Cash, Due 8/2022) 23,100 — 4,562 23,100 — — 115 23,215 — 4,562 26,500 — — 115 26,615 Telecommunications—4.1% B+T Group Acquisition, Inc.—Line of Credit, $0 available (L+11.0%, 13.0% Cash, Due 12/2021) (K) 2,800 — — 2,632 — — (35 ) 2,597 150 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 B+T Group Acquisition, Inc.—Term Debt (L+11.0%, 13.0% Cash, Due 12/2021) (K) $ 14,000 $ — $ — $ 13,160 $ — $ — $ (175 ) $ 12,985 — — 15,792 — — (210 ) 15,582 Total Secured First Lien Debt $ — $ 16,625 $ 135,842 $ 44,964 $ (1,000 ) $ 1,295 $ 181,101 Secured Second Lien Debt—12.6% Chemicals, Plastics, and Rubber—0.0% PSI Molded Plastics, Inc. —Term Debt (L+5.5%, 7.0% Cash, Due 1/2024) (P) — $ — $ — $ 16,737 $ — $ (17,114 ) $ 377 $ — 151 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 Diversified/Conglomerate Services —12.0% J.R. Hobbs Co.—Atlanta, LLC —Line of Credit, $0 available (L+6.0%, 8.0% Cash, Due 10/2024) $ 10,000 $ — $ 811 $ 10,000 $ — $ — $ (25 ) $ 9,975 J.R. Hobbs Co.—Atlanta, LLC —Term Debt (L+10.3%, 11.8% Cash, Due 10/2024) 36,000 — 4,289 36,000 — — (90 ) 35,910 — 5,100 46,000 — — (115 ) 45,885 Personal and Non-Durable Consumer Products (Manufacturing Only) —0.6% The Mountain Corporation —Term Debt (L+4.0%, 7.0% Cash, Due 4/2024) (K) 11,700 — — 2,572 — — (723 ) 1,849 The Mountain Corporation —Delayed Draw Term Debt, $0 available (L+4.0%, 7.0% Cash, Due 4/2024) (K)(O) 1,500 — — — 1,500 — (1,263 ) 237 — — 2,572 1,500 — (1,986 ) 2,086 Total Secured Second Lien Debt $ — $ 5,100 $ 65,309 $ 1,500 $ (17,114 ) $ (1,724 ) $ 47,971 Preferred Equity—20.7% Beverage, Food, and Tobacco —1.7% Head Country, Inc.—Preferred Stock 4,000 $ — $ — $ 3,495 — $ — $ 2,974 $ 6,469 Chemicals, Plastics, and Rubber —0.0% PSI Molded Plastics, Inc. —Preferred Stock 158,598 — — — 8,000 — (8,000 ) — 152 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 Diversified/Conglomerate Manufacturing—0.0% Channel Technologies Group, LLC —Preferred Stock 2,279 $ — $ — $ — $ — $ — $ — $ — Edge Adhesives Holdings, Inc. —Preferred Stock 8,199 — — — — — — — — — — — — — — Diversified/Conglomerate Services —3.5% ImageWorks Display and Marketing Group, Inc.—Preferred Stock 67,490 — — 8,265 — — 1,554 9,819 J.R. Hobbs Co.—Atlanta, LLC – Preferred Stock 10,920 — — — — — — — The Maids International, LLC— Preferred Stock 6,640 — — 5,339 — — (1,779 ) 3,560 — — 13,604 — — (225 ) 13,379 Home and Office Furnishings, Housewares, and Durable Consumer Products—5.3% Old World Christmas, Inc.—Preferred Stock 6,180 3,544 2,992 19,588 1,270 (7,450 ) 6,840 20,248 Leisure, Amusement, Motion Pictures, and Entertainment —1.8% SOG Specialty Knives & Tools, LLC —Preferred Stock 14,949 — — 390 — — 6,364 6,754 Personal and Non-Durable Consumer Products (Manufacturing Only)—8.4% The Mountain Corporation—Preferred Stock 6,899 — — — — — — — Pioneer Square Brands, Inc.—Preferred Stock 5,502 — 3,173 5,760 — — 26,295 32,055 — 3,173 5,760 — — 26,295 32,055 153 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 Telecommunications—0.0% B+T Group Acquisition, Inc.—Preferred Stock 14,304 $ — $ — $ — $ — $ — $ — $ — Total Preferred Equity $ 3,544 $ 6,165 $ 42,837 $ 9,270 $ (7,450 ) $ 34,248 $ 78,905 Common Equity/Equivalents—0.0% Diversified/Conglomerate Manufacturing—0.0% Channel Technologies Group, LLC—Common Stock 2,319,184 $ — $ — $ — $ — $ — $ — $ — D.P.M.S., Inc.—Common Stock 627 — — — — — — — — — — — — — — Diversified/Conglomerate Services—0.0% Nth Degree Investment Group, LLC—Common Stock 14,360,000 113 — 3,649 — — (3,649 ) — Personal and Non-Durable Consumer Products (Manufacturing Only)—0.0% The Mountain Corporation—Common Stock 751 — — — — — — — Telecommunications—0.0% B+T Group Acquisition, Inc.—Common Stock Warrants 3.5 % — — — — — — — Total Common Equity/Equivalents $ 113 $ — $ 3,649 $ — $ — $ (3,649 ) $ — TOTAL AFFILIATE INVESTMENTS $ 3,657 $ 27,890 $ 247,637 $ 55,734 $ (25,564 ) $ 30,170 $ 307,977 154 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) Company and Investment (A)(B)(C)(D)(E) Principal/ Shares/Units (F)(G) Net Realized Gain (Loss) for Period (Q) Amount of Investment Income (H) Value as of March 31, 2020 Gross Additions (I) Gross Reductions (J) Net Unrealized Appreciation (Depreciation) Value as of March 31, 2021 CONTROL INVESTMENTS—7.2%: Secured Second Lien Debt—3.4% Aerospace and Defense—3.4% Galaxy Tool Holding Corporation—Line of Credit, $0 available (L+4.5%, 6.5% Cash (0.5% Unused Fee), Due 8/2023) $ 5,000 $ — $ 330 $ 5,000 $ — $ — $ — $ 5,000 Galaxy Tool Holding Corporation—Term Debt (L+6.0%, 10.0% Cash, Due 8/2023) 8,000 — 590 5,000 3,000 — — 8,000 $ — $ 920 $ 10,000 $ 3,000 $ — $ — $ 13,000 Preferred Equity—3.8% Aerospace and Defense—3.8% Galaxy Tool Holding Corporation—Preferred Stock 5,517,444 $ — $ — $ 16,158 $ — $ — $ (1,528 ) $ 14,630 Common Equity—0.0% Aerospace and Defense—0.0% Galaxy Tool Holding Corporation—Common Stock 88,843 — — — — — — — TOTAL CONTROL INVESTMENTS $ — $ 920 $ 26,158 $ 3,000 $ — $ (1,528 ) $ 27,630 TOTAL AFFILIATE AND CONTROL INVESTMENTS $ 3,657 $ 28,810 $ 273,795 $ 58,734 $ (25,564 ) $ 28,642 $ 335,607 155 Table of Contents GLADSTONE INVESTMENT CORPORATION INVESTMENTS IN AND ADVANCES TO AFFILIATES (Continued) (AMOUNTS IN THOUSANDS) (A) Certain of the listed securities are issued by affiliate(s) of the indicated portfolio company. The majority of the securities listed, totaling $524.0 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 March 31, 2021, our investment in Funko Acquisition Holdings, LLC (“Funko”) is considered a non-qualifying asset under Section 55 of the 1940 Act and represents less than 0.1% of total investments, at fair value. (B) Common stock, warrants, options and, in some cases, preferred stock are generally non-income-producing and restricted. (C) Unless indicated otherwise, all cash interest rates are indexed to 30-day London Interbank Offered Rate (“LIBOR”), which was 0.1% as of March 31, 2021. 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 LIBOR plus a spread. Due dates represent the contractual maturity date. (D) Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of March 31, 2021. (E) Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the Financial Accounting Standards Board Accounting Standard Codification Topic 820, “ Fair Value Measurements and Disclosures ” 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) Represents the principal balance for debt investments and the number of shares/units held for equity investments. Warrants are represented as a percentage of ownership, as applicable. (H) Represents the total amount of interest, dividend, success fee, or other investment income credited to income for the portion of the year an investment was an affiliate investment or control investment and on accrual status, as appropriate. (I) Gross additions include increases in investments resulting from new portfolio investments, the amortization of discounts and fees, and the exchange of one or more existing securities for one or more new securities. (J) Gross reductions include decreases in investments resulting from principal collections related to investment repayments or sales, the amortization of premiums and acquisition costs, and the exchange of one or more existing securities for one or more new securities. (K) Debt security is on non-accrual status. (L) Debt security does not have a stated current interest rate. (M) Debt security has a fixed interest rate. (N) Investment was exited/paid off during the year ended March 31, 2021. (O) New investment during the year ended March 31, 2021. (P) PSI Molded Plastics, Inc.’s term debt was transferred from second lien to first lien debt during the year ended March 31, 2021. (Q) Net realized gain (loss) excludes amounts related to portfolio companies no longer in the portfolio for the periods presented. ** Information related to the amount of equity in the net profit and loss for the period for the investments listed has not been included in this schedule. This information is not considered to be meaningful due to the complex capital structures of the portfolio companies, with different classes of equity securities outstanding with different preferences in liquidation. These investments are not consolidated, nor are they accounted for under the equity method of accounting. 156