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Mill City Ventures III(MCVT) - 2023 Q1 - Quarterly Report
MCVTMill City Ventures III(MCVT)2023-05-22 21:17

Investment Activity - For the three months ended March 31, 2023, the company made investments and loans totaling 6,900,500,withredemptionsandrepaymentsof6,900,500, with redemptions and repayments of 3,945,000, resulting in net investments at amortized cost of 19,715,304[82].−Thecompany′stotalinvestmentincomeforthethreemonthsendedMarch31,2023,was19,715,304[82]. - The company's total investment income for the three months ended March 31, 2023, was 864,029, a decrease from 1,000,206inthesameperiodof2022,attributedtoreducedshort−termnon−banklendingactivity[84][86].−Thecompanyrecordedanetdecreaseinnetassetsfromoperationsof1,000,206 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 412,111inthesameperiodof2022[92].−ForthethreemonthsendedMarch31,2023,thecompanyexperienced412,111 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 138,770inrealizedgainsforthesameperiodin2022[90].OperatingExpenses−OperatingexpensesforthethreemonthsendedMarch31,2023,were138,770 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 545,818inthesameperiodof2022,primarilyduetoincreasedpayrollanddirectorfees[84][88].−Thecompanyincurred545,818 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 66,939inthesameperiodof2022,duetoreducedborrowingonthelineofcredit[89].−Thecompanyissued870,00010−yearoptionstodirectors,officers,andconsultants,resultinginanoncashexpenseof66,939 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,adecreaseof439,829, 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 18,293,034inshort−termnon−bankingloans,representing92.818,293,034 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].