UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Minnesota 90-0316651 (State or other jurisdiction of incorporation or organization) FORM 10-Q __________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ___________________ ...

Financial Performance - For the year ended December 31, 2024, the company earned $3,301,119 in interest income, a slight increase from $3,298,635 in 2023[102]. - The net investment gain for 2024 was $1,325,244, a substantial recovery from a net investment loss of $419,998 in 2023[109]. - The net increase in net assets resulting from operations for 2024 was $1,167,726, compared to a decrease of $1,165,506 in 2023, showing a positive shift in financial health[141]. - The net asset value per common share rose to $3.09 in 2024 from $2.91 in 2023, an increase of approximately 6.2%[139]. - The total investment return for 2024 was 6.19%, recovering from a loss of 7.27% in 2023[203]. - The net investment gain for 2024 was $0.21 per share, a recovery from a loss of $0.07 per share in 2023[203]. Operating Expenses - Total operating expenses decreased significantly to $1,975,875 in 2024 from $3,718,633 in 2023, primarily due to reduced legal, accounting, and payroll expenses[102][103]. - Operating expenses decreased to $1,975,875 in 2024 from $3,718,633 in 2023, a reduction of approximately 46.5%[141]. - Director's fees decreased to $300,000 in 2024 from $722,968 in 2023, reflecting the absence of stock-based compensation expenses[107]. - Interest expense dropped to $320 in 2024 from $78,000 in 2023 due to the termination of the line of credit arrangement[108]. - The ratio of operating expenses to average net assets improved to (10.23)% in 2024 from (19.94)% in 2023[203]. Cash Flow and Liquidity - Cash flows from operating activities improved dramatically to $5,650,086 in 2024, compared to a cash outflow of $1,137,617 in 2023[111]. - The company ended 2024 with cash of $6,026,110, a significant increase from $376,024 at the beginning of the year[111]. - The company reported a net cash provided by operating activities of $5,650,086 for 2024, a significant improvement from the net cash used of $1,137,617 in 2023[145]. - The company’s cash position improved significantly to $6,026,110 in 2024 from $376,024 in 2023, reflecting a substantial increase in liquidity[137]. Investments - The company made new investments totaling $5,665,526 in 2024 and refinanced investments amounting to $17,795,000[112]. - As of December 31, 2024, the company's investments at fair value totaled $13,006,231, down from $17,284,676 in 2023, reflecting a decrease of approximately 24.5%[127]. - Total investments as of December 31, 2024, amounted to $19,743,199, with total cash and cash equivalents at $6,026,110, representing 30.50% of total assets[148]. - The fair value of investments categorized as Level 3 was $13,006,231 as of December 31, 2024, with significant unobservable inputs used for valuation[130]. - The fair value of short-term non-banking loans was $13,006,231, accounting for 65.83% of total assets as of December 31, 2024[147]. - The fair value of short-term non-banking loans was $13,006,231, representing 96.7% of the total fair value of investments[182]. Assets and Liabilities - Total assets increased to $20,473,436 in 2024 from $19,106,697 in 2023, representing an increase of about 7.1%[137]. - The total liabilities increased to $715,447 in 2024 from $516,434 in 2023, an increase of approximately 38.5%[139]. - The company’s total assets as of December 31, 2024, were $19,743,199, reflecting a slight increase from the previous year[148]. - The company’s accumulated deficit as of December 31, 2024, was $(1,159,665), unchanged from 2023[145]. Tax and Deferred Tax - For the year ended December 31, 2024, the federal current tax provision was $325,172, compared to $83,402 for 2023, reflecting a significant increase of 290%[200]. - The company reported a net deferred tax asset of $770,000 as of December 31, 2024, an increase from $757,000 in 2023[202]. - The company accounts for income taxes under the asset and liability method, recognizing deferred tax assets and liabilities for expected future tax consequences[167]. Stock and Compensation - The company recognized stock-based compensation expense for stock options on a straight-line basis over the requisite service period[175]. - The company recognized stock-based compensation expense of $1,460,209 for the year ended December 31, 2023[195]. - The company issued new executive employment agreements with a base salary increase to $220,000 per year for key executives[208]. - The weighted average exercise price of stock options outstanding as of December 31, 2024 was $2.11, with 670,000 options outstanding[195]. - The company issued incentives for 870,000 shares under the 2022 Stock Incentive Plan, leaving 30,000 shares available for issuance as of December 31, 2024[194]. Miscellaneous - The company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on the financial statements[177]. - The company maintains cash balances in financial institutions and regulated financial investment brokers, with excess deposits subject to usual banking risks[154]. - The estimated fair value of Level 3 investment assets is determined quarterly, generally valuing equity investments at cost unless circumstances warrant a different approach[161]. - The company held a promissory note with two shareholders amounting to $250,000, which was paid in full on September 26, 2024[201]. - The company entered into an amendment to its loan agreement extending the maturity date to March 28, 2027, with an increased interest rate of 20%[205].

Investment Performance - For the nine months ended September 30, 2024, the company made $5,106,503 in investment purchases and had $6,614,573 in redemptions and repayments, resulting in net investments at amortized cost of $17,208,066[85]. - The company's total investment income for the three months ended September 30, 2024, was $711,022, a decrease of 1.6% from $725,158 in the same period of 2023[89]. - The company experienced $530,693 in unrealized appreciation for the three months ended September 30, 2024, compared to $2,175 in the same period of 2023[94]. Financial Position - As of September 30, 2024, the company had cash and cash equivalents of $3,132,877, an increase of $2,756,853 from December 31, 2023[97]. - The company's portfolio composition by fair value as of September 30, 2024, included 97.0% in short-term non-banking loans and 3.0% in common stock[86]. - The company did not engage in any off-balance sheet arrangements during the nine months ended September 30, 2024[100]. Operational Results - For the nine months ended September 30, 2024, the company recorded a net increase in net assets from operations of $1,258,822, compared to a net decrease of $277,763 in the same period of 2023[95]. - The company had $0 in interest expense for the three months ended September 30, 2024, and $320 for the nine months ended September 30, 2024, a significant decrease from $78,000 in the same period of 2023[92]. - Professional fees for the nine months ended September 30, 2024, were $502,838, a decrease from $601,184 in the same period of 2023, attributed to reduced loan activity[90]. Loan Portfolio - The average interest rate on the company's loan portfolio is 16.2%[89].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________ FORM 10-Q __________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ 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 001-41472 _________________________ ...

Financial Performance - For the three months ended March 31, 2024, the company reported total investment income of $832,667, a decrease from $864,028 in the same period of 2023[87]. - The company recorded a net increase in net assets from operations of $382,103 for the three months ended March 31, 2024, compared to a net decrease of $718,044 in the same period of 2023[93]. - The company had $308,797 in proceeds from the sale of investments for the three months ended March 31, 2024, resulting in $24,495 of realized gains[91]. Cash and Investments - As of March 31, 2024, the company had cash of $504,725, reflecting an increase of $128,701 from December 31, 2023[95]. - The company made $73,438 in investment purchases and had $308,797 in redemptions and repayments during the three months ended March 31, 2024[83]. - The portfolio composition as of March 31, 2024, included $16,770,508 in short-term non-banking loans, representing 97.9% of total investments[84]. Expenses - Professional fees for the three months ended March 31, 2024, were $138,371, compared to $129,851 in the same period of 2023[88]. - Payroll expenses decreased significantly to $151,066 in the three months ended March 31, 2024, from $1,130,439 in the same period of 2023[89]. Loan Portfolio - The average interest rate on the company's loan portfolio was 16.2%[87]. Off-Balance Sheet Arrangements - The company did not engage in any off-balance sheet arrangements during the three months ended March 31, 2024[98].

Financial Performance - For the year ended December 31, 2023, the company earned $3,298,635 in interest income, a decrease of approximately 21.5% from $4,199,453 in 2022[91]. - The company reported a net investment loss of $419,998 for 2023, contrasting with a net investment gain of $800,576 in 2022[100]. - The company reported a net investment loss of $1,165,506 for the year ended December 31, 2023, compared to a net increase of $106,958 in 2022, indicating a significant decline in performance[129]. - The total investment return for 2023 was -7.27%, compared to 1.43% in 2022[205]. - For the year ended December 31, 2023, the net increase in net assets resulting from operations was $(1,165,506), a decrease from $106,958 in 2022[136]. Operating Expenses - Total operating expenses for 2023 were $3,718,633, an increase of about 9.4% compared to $3,398,877 in 2022[93]. - The ratio of operating expenses to average net assets was -19.94% in 2023, compared to -21.73% in 2022[205]. - Rent expense for office facilities decreased from $73,146 in 2022 to $68,421 in 2023[172]. - The company recorded operating lease costs of $21,975 and variable lease costs of $19,572 for the year ended December 31, 2023[173]. Cash Flow and Liquidity - Cash flows from operating activities were $(1,137,617) in 2023, an improvement from $(4,888,302) in 2022[102]. - The company had a net decrease in cash of $713,617 for 2023, compared to a decrease of $846,507 in 2022[102]. - The company expects its current liquidity sources to be sufficient to fund operations through fiscal 2024, following the termination of its $5 million revolving line of credit[104]. - The company reported a net cash decrease of $(713,617) for the year, with cash at the end of the period totaling $376,024, down from $1,089,641 at the end of 2022[136]. Investments - The company made new investments totaling $12,900,500 in 2023 and refinanced investments amounting to $10,857,500[105]. - As of December 31, 2023, the company's investments at fair value totaled $17,284,676, an increase from $16,708,432 in 2022, reflecting a growth of approximately 3.4%[123]. - Total investments as of December 31, 2023, amounted to $18,577,481, with a fair value of $17,284,676, representing 92.97% of total assets[139]. - The company’s investment in Mustang Litigation Funding was $10,000,000, with a fair value of $10,069,354, accounting for 54.16% of total assets[139]. - The company’s investment in Intelligent Mapping, LLC was $2,900,000, with a fair value of $2,906,464, representing 15.63% of total assets[139]. - The company’s investment in short-term non-banking loans increased to $16,961,766 as of December 31, 2023, from $15,285,932 in 2022[186]. Assets and Liabilities - Total assets increased to $19,106,697 in 2023 from $18,734,790 in 2022, representing a growth of about 2%[126]. - The company’s total liabilities decreased to $516,434 in 2023 from $863,230 in 2022, a reduction of about 40%[126]. - The net asset value per common share slightly increased to $2.91 in 2023 from $2.89 in 2022[126]. - The net assets at the end of 2023 were $18,590,263, an increase from $17,871,560 in 2022[205]. Management and Compensation - Executive management compensation rose to $1,848,393 in 2023, up 96.4% from $941,590 in 2022, primarily due to stock option issuance[98]. - The company recognized stock-based compensation expense of $1,460,209 for stock options for the year ended December 31, 2023[194]. - The company did not incur management and service fees, as investments are managed by the executive management team as part of their employment responsibilities[168]. Taxation - The company had a provision for income taxes of -$454,554 in 2023, compared to $9,648 in 2022[200]. - The current federal tax was $83,402 in 2023, down from $268,803 in 2022[200]. - The deferred tax asset increased to $757,000 in 2023 from $201,000 in 2022[204]. Stock and Shareholder Information - The total number of common shares issued and outstanding increased from 6,185,255 at December 31, 2022, to 6,385,255 at December 31, 2023[175]. - The company completed a public offering of 1,250,000 common shares at $4.00 per share, generating gross proceeds of $5,000,000, with net proceeds of approximately $4,041,000 after expenses[177]. - During 2023, the company issued 200,000 shares related to the exercise of stock options, while 1,389,516 shares were issued in 2022[179]. - The company had 30,000 shares available for issuance under the 2022 Stock Incentive Plan as of December 31, 2023[191].

Investment Performance - For the nine months ended September 30, 2023, the company made investment purchases totaling $11,900,500 and had redemptions and repayments of $11,124,193, resulting in net investments at amortized cost of $17,577,481[91] - Total investment income for the three months ended September 30, 2023, was $725,158, a decrease of 35% compared to $1,115,224 for the same period in 2022[98] - For the nine months ended September 30, 2023, total investment income was $2,496,688, down 25.5% from $3,351,935 in the prior year[98] Financial Position - As of September 30, 2023, the company had cash of $962,860, a decrease of $126,781 from December 31, 2022[106] - For the nine months ended September 30, 2023, net cash used in operating activities was $550,781, compared to $6,429,293 for the same period in 2022[105] - The average interest rate on the company's loan portfolio is 15.2%[98] Operational Results - The company recorded a net increase in net assets from operations of $369,560 for the three months ended September 30, 2023[104] - Professional fees for the three months ended September 30, 2023, were $184,008, significantly lower than $916,359 for the same period in 2022[99] - The company had $0 interest expense for the three months ended September 30, 2023, compared to $46,779 for the same period in 2022[101] Portfolio Composition - The portfolio composition as of September 30, 2023, included 92.8% in short-term non-banking loans, totaling $16,296,986[93] Reporting and Compliance - The company filed its Annual Report on Form 10-K on April 17, 2023, related to the year ended December 31, 2022[21] - The report includes a section entitled "Risk Factors" detailing significant uncertainties facing the company[21] - Forward-looking statements in the report are subject to significant uncertainties and should not be regarded as guarantees of future performance[21] - The company undertakes no obligation to update any forward-looking statements after the filing date[21] - The forward-looking statements relate only to events as of the date they are made[21] - The report is excluded from the safe harbor protection provided by Section 21E of the Securities Exchange Act of 1934[21]

Financial Performance - For the six months ended June 30, 2023, the company made net investments at amortized cost of $16,552,481, compared to $15,191,759 for the same period in 2022, reflecting an increase of 8.9%[89] - Total investment income for the three months ended June 30, 2023, was $907,502, a decrease of 26.5% from $1,236,505 in the same period of 2022[93] - Operating expenses for the six months ended June 30, 2023, were $2,461,862, compared to $1,048,073 for the same period in 2022, indicating a significant increase of 134.0%[91] - The company recorded a net decrease in net assets from operations of $647,323 for the six months ended June 30, 2023, compared to a net increase of $930,119 for the same period in 2022[100] - Interest expense decreased to $78,000 for the six months ended June 30, 2023, from $117,853 in the same period of 2022, a reduction of 33.7%[97] Cash and Investments - As of June 30, 2023, the company had cash of $1,101,527, reflecting an increase of $11,886 from December 31, 2022[102] - The company's portfolio composition as of June 30, 2023, included 92.2% in short-term non-banking loans, totaling $15,240,303[90] Professional Fees - The company had $287,325 and $417,176 in professional fees for the three and six months ended June 30, 2023, respectively, compared to $197,591 and $392,989 for the same periods in 2022, representing increases of 45.4% and 6.1%[94] Public Offering and Reporting - The company completed a public offering of 1,250,000 common shares at $4.00 per share, resulting in gross proceeds of $5,000,000[104] - The company filed its Annual Report on Form 10-K on April 17, 2023, related to the year ended December 31, 2022[109] Risk Factors and Forward-Looking Statements - The report includes a section entitled "Risk Factors" detailing significant uncertainties facing the company[109] - Forward-looking statements in the report are subject to significant uncertainties and should not be regarded as guarantees of future performance[109] - The company undertakes no obligation to update any forward-looking statements after the filing date[109] - Forward-looking statements relate only to events as of the date they are made[109] - The report is excluded from the safe harbor protection provided by Section 21E of the Securities Exchange Act of 1934[109]

Investment Activity - For the three months ended March 31, 2023, the company made investments and loans totaling $6,900,500, with redemptions and repayments of $3,945,000, resulting in net investments at amortized cost of $19,715,304[82]. - The company's total investment income for the three months ended March 31, 2023, was $864,029, a decrease from $1,000,206 in the same period of 2022, attributed to reduced short-term non-bank lending activity[84][86]. - The company recorded a net decrease in net assets from operations of $718,044 for the three months ended March 31, 2023, compared to a net increase of $412,111 in the same period of 2022[92]. - For the three months ended March 31, 2023, the company experienced $600,000 in realized losses from investments, compared to $138,770 in realized gains for the same period in 2022[90]. Operating Expenses - Operating expenses for the three months ended March 31, 2023, were $1,889,796, significantly higher than $545,818 in the same period of 2022, primarily due to increased payroll and director fees[84][88]. - The company incurred $34,667 in interest expense for the three months ended March 31, 2023, down from $66,939 in the same period of 2022, due to reduced borrowing on the line of credit[89]. - The company issued 870,000 10-year options to directors, officers, and consultants, resulting in a noncash expense of $1,460,209 for the three months ended March 31, 2023[88]. Cash and Portfolio Composition - As of March 31, 2023, the company had cash of $439,829, a decrease of $649,812 from December 31, 2022, with expectations to redeploy temporary investments into portfolio company investments by December 31, 2023[94]. - The company's portfolio composition as of March 31, 2023, included $18,293,034 in short-term non-banking loans, representing 92.8% of total investments valued at $19,712,356[83]. - The average interest rate on the company's loan portfolio was 18.9%[86].

Financial Performance - For the year ended December 31, 2022, the company earned $4,199,453 in interest income, an increase from $2,656,201 in 2021, representing a growth of approximately 58%[97]. - The company's net investment gain for 2022 was $1,440,576, up from $1,301,450 in 2021, marking an increase of about 11%[106]. - The net increase in net assets resulting from operations was $577,737 in 2022, down from $2,831,050 in 2021, a decrease of about 79.6%[138]. - The company reported a net realized gain on investments of $133,019 in 2022, a decrease from $4,118,001 in 2021[138]. - Basic and diluted net gain per common share for 2022 was $0.11, down from $0.59 in 2021[174]. - The total investment return for the year ended December 31, 2022, was 3.57%, a decrease from 24.07% in 2021[204]. Operating Expenses - Total operating expenses for the year ended December 31, 2022, were $2,758,877, compared to $1,354,751 in 2021, indicating an increase of about 104%[100]. - Legal and accounting expenses surged to $1,592,218 in 2022 from $453,440 in 2021, reflecting an increase of approximately 251% due to costs associated with public offerings[102]. - Director's fees increased to $177,073 in 2022 from $120,000 in 2021, largely due to a one-time stock bonus[104]. - The total rent expense for office facilities increased to $73,146 in 2022 from $66,459 in 2021, reflecting an increase of approximately 10.1%[179]. - The company reported operating cash outflow from operating leases of $75,146 in 2022, compared to $66,459 in 2021, indicating an increase of approximately 13.1%[182]. Cash Flow and Assets - Cash flows used by operating activities were $(4,888,302) for 2022, compared to $(1,886,094) in 2021, indicating a significant increase in cash outflows[108]. - The company had a cash balance of $1,089,641 at the end of 2022, down from $1,936,148 at the end of 2021, representing a decrease of approximately 44%[108]. - Total assets rose to $18,565,569 in 2022, up from $16,697,831 in 2021, indicating an increase of about 11.6%[132]. - The company's cash balance decreased to $1,089,641 in 2022 from $1,936,148 in 2021, a decline of about 43.9%[132]. - The accumulated deficit as of December 31, 2022, was $(1,159,665), unchanged from the previous year, indicating stability in retained earnings[145]. Investments - The fair value of the company's investments increased to $16,708,432 in 2022 from $13,662,500 in 2021, representing a growth of approximately 22.4%[125]. - Total investments as of December 31, 2022, were valued at $16,708,432, representing 91.09% of total assets, with total cash at $1,089,641, or 5.94% of total assets[145]. - The company purchased investments totaling $(23,558,458) in 2022, down from $(27,029,292) in 2021, indicating a reduction in investment activity[143]. - The company’s investment portfolio as of December 31, 2022, totaled $17,359,804 at amortized cost, with short-term non-banking loans comprising 89.2% of the total[187]. - The fair value of the investment portfolio as of December 31, 2022, was $16,708,432, with short-term non-banking loans valued at $15,285,932, representing 91.5% of the total fair value[187]. Financing Activities - The company raised $4,041,795 from a public offering in 2022, which was a new financing activity not present in 2021[143]. - The net cash provided by financing activities in 2022 was $4,041,795, contrasting with $(1,618,337) used in 2021, indicating a positive shift in financing[143]. - The company entered into a $5 million revolving line of credit in January 2022, with an interest rate of 8% per annum, to support its short-term specialty finance business[108]. - The balance outstanding on the line of credit was $0 as of December 31, 2022[198]. Shareholder Information - As of December 31, 2022, the company had 6,185,255 shares of common stock issued and outstanding, an increase from 4,795,739 shares as of December 31, 2021, representing a growth of approximately 29%[182]. - The company completed a public offering of 1,250,000 common shares at $4.00 per share, resulting in gross proceeds of $5,000,000 and net proceeds of approximately $4,041,000 after expenses[184]. - The company reported a net asset value at the end of 2022 of $2.97 per share, up from $2.80 at the end of 2021, representing a 6.1% increase[204]. Tax and Compliance - The company reported a provision for income taxes of $178,869 for the year ended December 31, 2022, significantly lower than $1,054,698 in 2021[202]. - The company operates under the Investment Company Act of 1940, having previously been a business development company until December 2019[149]. - The company does not incur management and service fees, as investments are managed by the executive management team as part of their employment responsibilities[173].