SUI Group Holdings Ltd. 10-Q

ITEM 1.FINANCIAL STATEMENTS MILL CITY VENTURES III, LTD. CONDENSED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 ​ ​ ​ (unaudited) ​ December 31, 2020 ASSETS ​ ​ ​ ​ Investments, at fair value: ​ $ 11,057,453 ​ $ 6,667,897 Non-control/non-affiliate investments (cost: $ 10,562,451 and $ 4,968,576 respectively) ​ ​ Cash ​ 3,594,508 ​ 5,440,579 Note receivable ​ 250,000 ​ 250,000 Prepaid expenses ​ 128,682 ​ 43,838 Receivable for sale of investments ​ 60,080 ​ 19,313 Interest and dividend receivables ​ 471,340 ​ 65,911 Right-of-use lease asset ​ 9,661 ​ 23,345 Total Assets ​ $ 15,571,724 ​ $ 12,510,883 ​ ​ ​ ​ ​ ​ ​ LIABILITIES ​ ​ Accounts payable ​ $ 27,616 ​ $ 32,917 Dividend payable ​ 1,079,041 ​ 539,296 Payable for purchase of investments ​ ​ 30,689 ​ ​ — Lease liability ​ 10,843 ​ 26,061 Accrued income tax expense ​ 1,141,700 ​ 13,722 Deferred taxes ​ 141,000 ​ 258,000 Total Liabilities ​ 2,430,889 ​ 869,996 Commitments and Contingencies ​ ​ ​ ​ ​ ​ ​ ​ ​ SHAREHOLDERS EQUITY (NET ASSETS) ​ ​ Common stock, par value $ 0.001 per share ( 250,000,000 authorized;  10,790,413 and 10,785,913 outstanding) ​ 10,790 ​ 10,786 Additional paid-in capital ​ 10,694,163 ​ 10,673,014 Accumulated deficit ​ ( 1,159,665 ) ​ ( 1,159,665 ) Accumulated undistributed investment loss ​ ( 2,181,001 ) ​ ( 2,124,419 ) Accumulated undistributed net realized gains on investment transactions ​ 5,281,546 ​ 2,541,850 Net unrealized appreciation in value of investments ​ 495,002 ​ 1,699,321 Total Shareholders' Equity (Net Assets) ​ 13,140,835 ​ 11,640,887 Total Liabilities and Shareholders' Equity ​ $ 15,571,724 ​ $ 12,510,883 Net Asset Value Per Common Share ​ $ 1.22 ​ $ 1.08 ​ See accompanying Notes to Financial Statements ​ - 3 - ​ Table of Contents MILL CITY VENTURES III, LTD. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, ​ September 30, ​ September 30, ​ September 30, ​ 2021 2020 2021 2020 Investment Income ​ ​ ​ ​ Interest income ​ $ 755,601 ​ $ 285,338 ​ $ 1,977,992 ​ $ 740,008 Dividend income ​ — ​ 1,696 ​ — ​ 15,461 Total Investment Income ​ 755,601 ​ 287,034 ​ 1,977,992 ​ 755,469 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Expenses ​ ​ ​ ​ Professional fees ​ 79,950 ​ 58,719 ​ 300,297 ​ 133,016 Payroll ​ 80,840 ​ 58,191 ​ 468,266 ​ 174,768 Insurance ​ 27,890 ​ 20,672 ​ 80,023 ​ 61,793 Occupancy ​ 16,689 ​ 16,562 ​ 49,716 ​ 49,693 Director's fees ​ 30,000 ​ 22,500 ​ 90,000 ​ 67,500 Depreciation and amortization ​ — ​ 643 ​ — ​ 1,930 Other general and administrative ​ 4,213 ​ 3,659 ​ 35,294 ​ 11,548 Total Operating Expenses ​ 239,582 ​ 180,946 ​ 1,023,596 ​ 500,248 Net Investment Gain ​ 516,019 ​ 106,088 ​ 954,396 ​ ​ 255,221 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Realized and Unrealized Gain (Loss) on Investments ​ ​ ​ ​ Net realized gain on investments ​ 289,138 ​ 335,440 ​ 3,818,737 ​ 535,164 Net change in unrealized appreciation (depreciation) on investments ​ ( 774,169 ) ​ 141,816 ​ ( 1,204,319 ) ​ 104,411 Net Realized and Unrealized Gain (Loss) on Investments ​ ( 485,031 ) ​ 477,256 ​ 2,614,418 ​ 639,575 Net Increase in Net Assets Resulting from Operations Before Taxes ​ ​ 30,988 ​ ​ 583,344 ​ ​ 3,568,814 ​ ​ 894,796 Provision For (Benefit From) Income Taxes ​ ( 300 ) ​ — ​ 1,010,978 ​ — Net Increase (Decrease) in Net Assets Resulting from Operations ​ $ 31,288 ​ $ 583,344 ​ $ 2,557,836 ​ $ 894,796 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Increase in Net Assets Resulting from Operations per share: ​ ​ ​ ​ Basic and diluted ​ $ 0.00 ​ $ 0.05 ​ $ 0.24 ​ $ 0.08 Weighted-average number of common shares outstanding - basic and diluted ​ 10,790,413 ​ 10,696,735 ​ 10,788,918 ​ 10,881,382 ​ See accompanying Notes to Financial Statements ​ - 4 - ​ Table of Contents MILL CITY VENTURES III, LTD. CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Net Unrealized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Undistributed ​ Appreciation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Undistributed ​ Net Realized Gain ​ (Depreciation) ​ Total ​ ​ Common ​ Par ​ Paid In ​ Accumulated ​ Net Investment ​ on Investments ​ in value of ​ Shareholders' Three Months Ended September 30, 2021 Shares Value Capital Deficit Loss Transactions Investments Equity Balance as of June 30, 2021 ​ 10,790,413 ​ $ 10,790 ​ $ 10,694,163 ​ $ ( 1,159,665 ) ​ $ ( 2,697,320 ) ​ $ 6,071,449 ​ $ 1,269,171 ​ $ 14,188,588 Dividend Declared ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 1,079,041 ) ​ — ​ ( 1,079,041 ) Undistributed net investment gain ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 516,319 ​ ​ — ​ ​ — ​ ​ 516,319 Undistributed net realized gain on investment transactions ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 289,138 ​ ​ — ​ 289,138 Depreciation in value of investments ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 774,169 ) ​ ( 774,169 ) Balance as of September 30, 2021 10,790,413 ​ $ 10,790 ​ $ 10,694,163 ​ $ ( 1,159,665 ) ​ $ ( 2,181,001 ) ​ $ 5,281,546 ​ $ 495,002 ​ $ 13,140,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Net Unrealized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Undistributed ​ Appreciation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Undistributed ​ Net Realized Gain ​ (Depreciation) ​ Total ​ ​ Common ​ ​ ​ ​ Paid In ​ Accumulated ​ Net Investment ​ on Investments ​ in value of ​ Shareholders' Three Months Ended September 30, 2020 Shares Par Value Capital Deficit Loss Transactions Investments Equity Balance as of June 30, 2020 ​ 10,696,735 ​ $ 10,696 ​ $ 10,616,757 ​ $ ( 1,159,665 ) ​ $ ( 2,248,732 ) ​ $ 3,275,540 ​ $ ( 272,878 ) ​ $ 10,221,718 Undistributed net investment gain ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 106,088 ​ ​ — ​ ​ — ​ 106,088 Undistributed net realized gain on investment transactions — ​ — ​ — ​ — ​ — ​ 335,440 ​ — ​ 335,440 Appreciation in value of investments — ​ — ​ — ​ — ​ — ​ — ​ 141,816 ​ 141,816 Balance as of September 30, 2020 10,696,735 ​ $ 10,696 ​ $ 10,616,757 ​ $ ( 1,159,665 ) ​ $ ( 2,142,644 ) ​ $ 3,610,980 ​ $ ( 131,062 ) ​ $ 10,805,062 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Undistributed ​ Unrealized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Undistributed ​ Net Realized Gain ​ Appreciation ​ Total ​ ​ Common ​ ​ ​ Paid In ​ Accumulated ​ Net Investment ​ on Investments ​ in value of ​ Shareholders' Nine Months Ended September 30, 2021 Shares Par Value Capital Deficit Loss Transactions Investments Equity Balance as of December 31, 2020 ​ 10,785,913 ​ $ 10,786 ​ $ 10,673,014 ​ $ ( 1,159,665 ) ​ $ ( 2,124,419 ) ​ $ 2,541,850 ​ $ 1,699,321 ​ $ 11,640,887 Common shares issued in consideration for expense payment 4,500 ​ 4 ​ 21,149 ​ — ​ — ​ — ​ — ​ 21,153 Dividend declared — ​ — ​ — ​ — ​ — ​ ( 1,079,041 ) ​ — ​ ( 1,079,041 ) Undistributed net investment loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 56,582 ) ​ ​ — ​ ​ — ​ ​ ( 56,582 ) Undistributed net realized gain on investment transactions — ​ — ​ — ​ — ​ — ​ 3,818,737 ​ — ​ 3,818,737 Depreciation in value of investments — ​ — ​ — ​ — ​ — ​ — ​ ( 1,204,319 ) ​ ( 1,204,319 ) Balance as of September 30, 2021 10,790,413 ​ $ 10,790 ​ $ 10,694,163 ​ $ ( 1,159,665 ) ​ $ ( 2,181,001 ) ​ $ 5,281,546 ​ $ 495,002 ​ $ 13,140,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Undistributed ​ Net Unrealized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Undistributed ​ Net Realized Gain ​ Appreciation ​ Total ​ ​ Common ​ ​ ​ ​ Paid In ​ Accumulated ​ Net Investment ​ on Investments ​ in value ​ Shareholders' Nine Months Ended September 30, 2020 Shares Par Value Capital Deficit Loss Transactions of Investments Equity Balance as of December 31, 2019 ​ 11,067,402 ​ $ 11,067 ​ $ 10,774,653 ​ $ ( 1,159,665 ) ​ $ ( 2,397,865 ) ​ $ 3,075,816 ​ $ ( 235,473 ) ​ $ 10,068,533 Repurchase of shares ​ ( 370,667 ) ​ ​ ( 371 ) ​ ​ ( 157,896 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ( 158,267 ) Undistributed net investment gain — ​ — ​ — ​ — ​ 255,221 ​ — ​ — ​ 255,221 Undistributed net realized gain on investment transactions — ​ — ​ — ​ — ​ — ​ 535,164 ​ — ​ 535,164 Appreciation in value of investments — ​ — ​ — ​ — ​ — ​ — ​ 104,411 ​ 104,411 Balance as of September 30, 2020 10,696,735 ​ $ 10,696 ​ $ 10,616,757 ​ $ ( 1,159,665 ) ​ $ ( 2,142,644 ) ​ $ 3,610,980 ​ $ ( 131,062 ) ​ $ 10,805,062 ​ See accompanying Notes to Financial Statements ​ - 5 - ​ Table of Contents MILL CITY VENTURES III, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, 2021 September 30, 2020 Cash flows from operating activities: ​ ​ Net increase in net assets resulting from operations ​ $ 2,557,836 ​ $ 894,796 ​ ​ ​ ​ ​ ​ ​ Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: ​ ​ Net change in unrealized appreciation on investments ​ 1,204,319 ​ ( 104,411 ) Net realized gain on investments ​ ( 3,818,737 ) ​ ( 535,164 ) Purchases of investments ​ ( 18,133,352 ) ​ ( 7,655,802 ) Proceeds from sales of investments ​ 16,363,964 ​ 1,858,011 Depreciation & amortization expense ​ — ​ 1,930 Income taxes payable ​ 1,010,978 ​ — Common shares issued as consideration for expense payment ​ 15,403 ​ — ​ ​ ​ ​ ​ ​ ​ Changes in operating assets and liabilities: ​ ​ Prepaid expenses and other assets ​ ( 71,160 ) ​ ( 6,409 ) Interest and dividends receivable ​ ( 405,429 ) ​ ( 100,223 ) Receivable for investment sales ​ ( 40,767 ) ​ ( 127,679 ) Payable for investment purchase ​ 30,689 ​ — Accounts payable and other liabilities ​ ( 20,519 ) ​ ( 13,049 ) Net cash used in operating activities ​ ( 1,306,775 ) ​ ( 5,788,000 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: ​ ​ Payments for repurchase of common stock ​ — ​ ( 158,267 ) Payments for common stock dividend ​ ( 539,296 ) ​ — Net cash used by financing activities ​ ( 539,296 ) ​ ( 158,267 ) Net decrease in cash ​ ( 1,846,071 ) ​ ( 5,946,267 ) Cash, beginning of period ​ 5,440,579 ​ 8,066,656 Cash, end of period ​ $ 3,594,508 ​ $ 2,120,389 ​ ​ ​ ​ ​ ​ ​ Non-cash financing activities: ​ ​ Common shares issued as consideration for investment ​ $ 5,750 ​ $ — Dividend declared to common stock shareholders ​ ​ 1,079,041 ​ — ​ See accompanying Notes to Financial Statements ​ - 6 - ​ Table of Contents MILL CITY VENTURES III, LTD. CONDENSED SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage ​ ​ ​ ​ ​ ​ ​ ​ of Net ​ Investment / Industry Cost Fair Value Assets ​ Short-Term Non-banking Loans ​ ​ ​ ​ ​ Consumer - 15% secured loans ​ ​ ​ ​ ​ ​ ​ ​ ​ AirDog Supplies, Inc. ​ $ 1,250,000 ​ $ 1,250,000 9.51 % Consumer - 20% secured loans ​ 400,000 ​ 400,000 3.04 % Financial - 44% secured loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Benton Financial, LLC ​ 2,082,000 ​ 2,082,000 15.84 % Financial - 40% secured loans ​ ​ ​ Benton Financial, LLC ​ 1,753,333 ​ 1,753,333 13.34 % Financial - 12% secured loans ​ 500,000 ​ 500,000 3.80 % Litigation Financing - 23% secured loans ​ ​ ​ The Cross Law Firm, LLC ​ 1,805,750 ​ 1,800,000 13.70 % Real Estate - 15% secured loans ​ 600,000 ​ 600,000 4.57 % Alatus Development, LLC ​ 1,250,000 ​ 1,250,000 9.51 % Total Short-Term Non-Banking Loans ​ 9,641,083 ​ 9,635,333 73.31 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ ​ ​ Consumer ​ 140,000 ​ 492,000 3.74 % Financial Services ​ 30,689 ​ 30,120 0.23 % Total Common Stock ​ ​ 170,689 ​ ​ 522,120 ​ 3.97 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred Stock ​ ​ ​ Information Technology ​ 150,000 ​ 300,000 2.28 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants ​ ​ ​ Healthcare ​ 679 ​ — 0.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Equity ​ ​ ​ Financial ​ 600,000 ​ 600,000 4.57 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Investments ​ $ 10,562,451 ​ $ 11,057,453 84.13 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Cash ​ 3,594,508 ​ 3,594,508 27.35 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Investments and Cash ​ $ 14,156,959 ​ $ 14,651,961 111.48 % ​ See accompanying Notes to the Financial Statements ​ - 7 - ​ Table of Contents MILL CITY VENTURES III, LTD. SCHEDULE OF INVESTMENTS DECEMBER 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage ​ ​ ​ ​ ​ ​ ​ ​ ​ of Net ​ Investment / Industry Cost Fair Value Assets Short-Term Non-banking Loans ​ ​ ​ ​ ​ Consumer - 20% secured loans ​ $ 400,000 ​ $ 400,000 3.44 % Financial - 44% secured loans ​ 400,000 ​ 400,000 3.44 % Financial - 36% secured loans ​ 500,000 ​ 500,000 4.30 % Real Estate - 15% secured loans ​ ​ ​ Alatus Development, LLC ​ 1,250,000 ​ 1,250,000 10.74 % Other ​ 239,000 ​ 239,000 2.05 % Total Short-Term Non-Banking Loans ​ 2,789,000 ​ 2,789,000 23.97 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ ​ ​ Consumer ​ ​ ​ Ammo, Inc. ​ 1,750,000 ​ 3,300,000 28.34 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred Stock ​ ​ ​ Information Technology ​ 150,000 ​ 300,000 2.58 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants ​ ​ ​ Healthcare ​ 679 ​ — 0.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Equity ​ ​ ​ Leisure & Hospitality ​ 278,897 ​ 278,897 2.40 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Investments ​ $ 4,968,576 ​ $ 6,667,897 57.30 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Cash ​ 5,440,579 ​ 5,440,579 46.74 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Investments and Cash ​ $ 10,409,155 ​ $ 12,108,476 104.04 % ​ ​ ​ ​ - 8 - ​ Table of Contents NOTE 1 – ORGANIZATION In this report, we generally refer to Mill City Ventures III, Ltd. in the first person “we.” On occasion, we refer to our company in the third person as “Mill City Ventures” or the “Company.” The Company follows accounting and reporting guidance in Accounting Standards (“ASC”) 946. We were incorporated in Minnesota in January 2006. Until December 13, 2012, we were a development-stage company that focused on promoting and placing a proprietary poker game online and into casinos and entertainment facilities nationwide. In 2013, we elected to become a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). We operated as a BDC until we withdrew our BDC election on December 27, 2019. As of the time of this filing, we remain a public reporting company that files periodic reports with the SEC. We primarily offer short-term specialty finance solutions to private businesses, small-cap public companies and high-net-worth individuals. To avoid regulation under the 1940 Act, we generally seek to structure our investments so they do not constitute “investment securities” for purposes of federal securities law, and we monitor our investments as a whole to ensure that no more than 40 % of our total assets may consist of investment securities. ​ NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of presentation : The accompanying unaudited condensed financial statements of Mill City Ventures have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the quarter ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The condensed balance sheet as of December 31, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. Use of estimates: The preparation of financial statements in conformity with GAAP requires management and our Board of Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the financial statements, as well as the reported amounts of expenses during the reporting period. Actual results could differ from those estimates, and the differences could be material. For more information, see the “Valuation of portfolio investments” caption below, and “Note 4 – Fair Value of Financial Instruments” below. The Company is an investment company following accounting and reporting guidance in ASC 946. Cash deposits: We maintain our cash balances in financial institutions and with regulated financial investment brokers. Cash on deposit in excess of FDIC and similar coverage is subject to the usual banking risk of funds in excess of those limits. Valuation of investments: We carry our investments in accordance with ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), issued by the Financial Accounting Standards Board (“FASB”), which defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. Fair value is generally based on quoted market prices provided by independent pricing services, broker or dealer quotations, or alternative price sources. In the absence of quoted market prices, broker or dealer quotations, or alternative price sources, investments are measured at fair value as determined by our Board of Directors, or by the Valuation Committee of our Board of Directors, based on, among other things, the input of our executive management, the Audit Committee of our Board of Directors, and any independent third-party valuation experts that may be engaged by management to assist in the valuation of our investments, but in all cases consistent with our written valuation policies and procedures. Due to the inherent uncertainties of valuation, certain estimated fair values may differ significantly from the values that would have been realized had a ready market for these investments existed, and these differences could be material. In addition, such investments are generally less liquid than publicly traded securities. If we were required to liquidate an investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. - 9 - ​ Table of Contents Accounting guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Observable inputs must be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available. Assets and liabilities measured at fair value are to be categorized into one of the three hierarchy levels based on the relative observability of inputs used in the valuation. The three levels are defined as follows: ● Level 1: Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities. ● Level 2: Observable inputs based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets. ● Level 3: Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances. Our valuation policy and procedures : Under our valuation policies and procedures, we evaluate the source of inputs, including any markets in which our investments are trading, and then apply the resulting information in determining fair value. For our Level 1 investment assets, our valuation policy generally requires us to use a market approach, considering the last quoted closing price of a security we own that is listed on a securities exchange, and in a case where a security we own is listed on an over-the-counter market, to average the last quoted bid and ask price on the most active market on which the security is quoted. In the case of traded debt securities the prices for which are not readily available, we may value those securities using a present value approach, at their weighted-average yield to maturity. The estimated fair value of our Level 3 investment assets is determined on a quarterly basis by our Board of Directors, pursuant to our written Valuation Policy and Procedures. These policies and procedures generally require that we value our Level 3 equity investments at fair market value, unless circumstances warrant a different approach. Our Valuation Policy and Procedures provide examples of these circumstances, such as when a company in which we have invested has engaged in a subsequent financing of more than a de minimis size involving sophisticated investors (in which case we may use the price involved in that financing as a determinative input absent other known factors), or when a company is engaged in the process of a transaction that we determine is reasonably likely to occur (in which case we may use the price involved in the pending transaction as a determinative input absent other known factors). Other situations identified in our Valuation Policy and Procedures that may serve as input supporting a change in the valuation of our Level 3 equity investments include (i) a third-party valuation conducted by an independent and qualified professional, (ii) changes in the performance of long-term financial prospects of the company, (iii) a subsequent financing that changes the distribution rights associated with the equity security we hold, or (iv) sale transactions involving comparable companies, but only if further supported by a third-party valuation conducted by an independent and qualified professional. When valuing preferred equity investments, we generally view intrinsic value as a key input. Intrinsic value means the value of any conversion feature (if the preferred investment is convertible) or the value of any liquidation or other preference. Discounts to intrinsic value may be applied in cases where the issuer’s financial condition is impaired or, in cases where intrinsic value relating to a conversion is determined to be a key input, to account for resale restrictions applicable to the securities issuable upon conversion. When valuing warrants, our Valuation Policy and Procedures indicate that value will generally be the difference between closing price of the underlying equity security and the exercise price, after applying an appropriate discount for restriction, if applicable, in situations where the underlying security is marketable. If the underlying security is not marketable, then intrinsic value will be considered consistent with the principles described above. Generally, “out-of-the-money” warrants will be valued at cost or zero. For non-traded (Level 3) debt and loan investments with a residual maturity less than or equal to 60 days, the value will generally be based on a present value approach, considering the straight-line amortized face value of the debt unless justification for impairment exists. The fair value for short-term non-banking loans is determined as the present value of future contractual cash flows discounted at an interest rate that reflects the risks inherent to those cash flows. The discount ranges from 12 % to 47 % and approximate rates currently observed in publicly traded debt markets for debt of similar terms to companies with comparable credit risk. - 10 - ​ Table of Contents On a quarterly basis, our management provides members of our Board of Directors with (i) valuation reports for each investment (which reports include our cost, the most recent prior valuation and any current proposed valuation, and an indication of the valuation methodology used, together with any other supporting materials); (ii) Mill City Ventures’ bank and other statements pertaining to our cash and cash equivalents; (iii) quarter- or period-end statements from our custodial firms holding any of our investments; and (iv) recommendations to change any existing valuations of our investments or hierarchy levels for purposes of determining the fair value of such investments based upon the foregoing. The board then discusses these materials and, consistent with the policies and approaches outlined above, makes final determinations respecting the valuation and hierarchy levels of our investments. We made no changes to our Valuation Policy and Procedures during the reporting period other than to have our entire Board of Directors involved in implementing and discharging those policies and procedures. Income taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine we would be able to realize our deferred income tax assets in the future in excess of their recorded amount, we would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. We file income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. Our evaluation was performed for the tax years ended December 31, 2017 through 2020, which are the tax years that remain subject to examination by major tax jurisdictions as of September 30, 2021. Revenue recognition : Realized gains or losses on the sale of investments are calculated using the specific investment method. Interest income, adjusted for amortization of premiums and accretion of discounts, is recorded on an accrual basis. Discounts from and premiums to par value on securities or other instruments purchased are accreted or amortized, as applicable, into interest income over the life of the related security using the effective-yield method. The amortized cost of investments represents the original cost, adjusted for the accretion of discounts and amortization of premiums, if any. Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more, or when there is reasonable doubt that principal or interest will be collected in full. Loan origination fees are recognized when loans are issued. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past-due principal and interest is paid and, in management’s judgment, are likely to remain current. We may make exceptions to the policy described above if a loan has sufficient collateral value and is in the process of collection. Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by a company in which we have invested and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private companies or on the ex-dividend date for publicly traded companies. Certain investments may have contractual payment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or stated value of the investment on the respective interest- or dividend-payment dates rather than being paid in cash, and generally becomes due at maturity or upon being repurchased by the issuer. PIK interest or dividends is recorded as interest or dividend income, as applicable. If at any point we believe that PIK interest or dividends is not expected be realized, the PIK-generating investment will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment in placed on non-accrual status. - 11 - ​ Table of Contents Allocation of net gains and losses: All income, gains, losses, deductions and credits for any investment are allocated in a manner proportionate to the shares owned. Recently adopted accounting pronouncements: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, which is fiscal 2021 for us, with early adoption permitted. The adoption of the ASU effective January 1, 2021 did not have a material impact on the Company’s financial statements. NOTE 3 – INVESTMENTS The following table shows the composition of our investments by major class, at amortized cost and fair value, as of September 30, 2021 (together with the corresponding percentage of the fair value of our total investments): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2021 ​ Investments at Percentage of Investments at Percentage of ​ Amortized Cost Amortized Cost Fair Value Fair Value ​ Short-term Non-banking Loans ​ $ 9,641,083 91.3 % $ 9,635,333 87.1 % Preferred Stock ​ 150,000 1.4 ​ 300,000 2.7 ​ Common Stock ​ 170,689 1.6 ​ 522,120 4.7 ​ Warrants ​ 679 — ​ — — ​ Other Equity ​ 600,000 5.7 ​ 600,000 5.5 ​ Total ​ $ 10,562,451 100.0 % $ 11,057,453 100.0 % ​ The following table shows the composition of our investments by major class, at amortized cost and fair value, as of December 31, 2020 (together with the corresponding percentage of the fair value of our total investments): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2020 ​ Investments at Percentage of Investments at Percentage of ​ Amortized Cost Amortized Cost Fair Value Fair Value ​ Short-term Non-banking Loans ​ $ 2,789,000 56.2 % $ 2,789,000 41.8 % Preferred Stock ​ 150,000 3.0 ​ 300,000 4.5 ​ Common Stock ​ 1,750,000 35.2 ​ 3,300,000 49.5 ​ Warrants ​ 679 — ​ — — ​ Other Equity ​ 278,897 5.6 ​ 278,897 4.2 ​ Total ​ $ 4,968,576 100.0 % $ 6,667,897 100.0 % ​ The following table shows the composition of our investments by industry grouping, based on fair value as of September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments at Percentage of ​ Fair Value Fair Value ​ Consumer ​ $ 2,142,000 19.4 % Financial ​ 6,765,453 61.2 ​ Information Technology ​ 300,000 2.7 ​ Real Estate ​ 1,850,000 16.7 ​ ​ ​ — — ​ Total ​ $ 11,057,453 100.0 % ​ - 12 - ​ Table of Contents The following table shows the composition of our investments by industry grouping, based on fair value as of December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2020 ​ Investments at Percentage of ​ Fair Value Fair Value ​ Consumer ​ $ 3,700,000 55.5 % Financial ​ 900,000 13.5 ​ Information Technology ​ 300,000 4.5 ​ Leisure & Hospitality ​ 278,897 4.2 ​ Real Estate ​ 1,489,000 22.3 ​ Total ​ $ 6,667,897 100.0 % ​ ​ ​ NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS Level 3 valuation information : Due to the inherent uncertainty in the valuation process, the estimate of the fair value of our investments as of September 30, 2021 may differ materially from values that would have been used had a readily available market for the securities or investments existed. The following table presents the fair value measurements of our investments by major class, as of September 30, 2021, according to the fair value hierarchy: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2021 ​ Level 1 Level 2 Level 3 Total Short-term Non-banking Loans ​ $ — ​ $ — ​ $ 9,635,333 ​ $ 9,635,333 Preferred Stock ​ — ​ — ​ 300,000 ​ 300,000 Common Stock ​ 522,120 ​ — ​ — ​ 522,120 Warrants ​ — ​ — ​ — ​ — Other Equity ​ — ​ — ​ 600,000 ​ 600,000 Total ​ $ 522,120 ​ $ — ​ $ 10,535,333 ​ $ 11,057,453 ​ The following table presents the fair value measurements of our investments by major class, as of December 31, 2020, according to the fair value hierarchy: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2020 ​ Level 1 Level 2 Level 3 Total Short-term Non-banking Loans ​ $ — ​ $ — ​ $ 2,789,000 ​ $ 2,789,000 Preferred Stock ​ — ​ — ​ 300,000 ​ 300,000 Common Stock ​ 3,300,000 ​ — ​ — ​ 3,300,000 Warrants ​ — ​ — ​ — ​ — Other Equity ​ — ​ — ​ 278,897 ​ 278,897 Total ​ $ 3,300,000 ​ $ — ​ $ 3,367,897 ​ $ 6,667,897 ​ - 13 - ​ Table of Contents The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 investment assets for the nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the nine months ended September 30, 2021 ​ ​ ​ ​ ST ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-banking Preferred Common ​ ​ ​ ​ ​ ​ ​ Loans ​ Stock ​ Stock ​ Warrants ​ Other Equity Balance as of January 1, 2021 ​ $ 2,789,000 ​ $ 300,000 ​ $ — ​ $ — ​ $ 278,897 Net change in unrealized appreciation ​ — ​ — ​ — ​ — ​ — Purchases and other adjustments to cost ​ 17,365,333 ​ — ​ — ​ — ​ 600,000 Sales and redemptions ​ ( 10,519,000 ) ​ — ​ — ​ — ​ ( 278,897 ) Net realized loss ​ — ​ — ​ — ​ — ​ — Balance as of June 30, 2021 ​ $ 9,635,333 ​ $ 300,000 ​ $ — ​ $ — ​ $ 600,000 ​ The net change in unrealized appreciation for the nine months ended September 30, 2021 attributable to Level 3 investments still held as of September 30, 2021 is $ 0 , and is included in net change in unrealized appreciation (depreciation) on investments on the statement of operations. The following table lists our Level 3 investments held as of September 30, 2021 and the unobservable inputs used to determine their valuation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Security Type 9/30/21 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans ​ $ 9,635,333 ​ discounted cash flow ​ determining private company interest rate based on credit ​ 12 - 44 % Other Equity ​ 600,000 last secured funding known by company economic changes since last funding ​ Preferred Stock ​ 300,000 last funding secured by company economic changes since last funding ​ ​ ​ $ 10,535,333 ​ ​ The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 investment assets for the year ended December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, 2020 ​ ​ ​ ​ ST Non-banking Preferred Common ​ ​ ​ ​ Loans ​ Stock ​ Stock ​ Warrants ​ Other Equity Balance as of January 1, 2020 ​ $ — ​ $ 300,000 ​ $ — ​ $ — ​ $ 534,200 Net change in unrealized appreciation ​ — ​ — ​ — ​ — ​ 486,018 Purchases and other adjustments to cost ​ 7,543,000 ​ — ​ — ​ — ​ — Sales and redemptions ​ ( 4,754,000 ) ​ — ​ — ​ — ​ ( 91,313 ) Net realized loss ​ — ​ — ​ — ​ — ​ ( 650,008 ) Balance as of December 31, 2020 ​ $ 2,789,000 ​ $ 300,000 ​ $ — ​ $ — ​ $ 278,897 ​ The net change in unrealized depreciation for the year ended December 31, 2020 attributable to Level 3 investments still held as of December 31, 2020 is $ 0 , and is included in net change in unrealized appreciation (depreciation) on investments on the statement of operations. - 14 - ​ Table of Contents The following table lists our Level 3 investments held as of December 31, 2020 and the unobservable inputs used to determine their valuation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Security Type 12/31/20 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans ​ $ 2,789,000 discounted cash flow determining private company interest rate based on credit 14 - 44 % Other Equity ​ 278,897 last secured funding known by company economic changes since purchase ​ Preferred Stock ​ 300,000 last funding secured by company economic changes since last funding ​ ​ ​ $ 3,367,897 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOTE 5 – RELATED-PARTY TRANSACTIONS We maintain a Code of Ethics and certain other policies relating to conflicts of interest. Nevertheless, from time to time we may hold investments in businesses in which certain members of our management, our Board of Directors, or significant shareholders of ours, are also directly or indirectly invested. Our Board of Directors has adopted a policy to require our disclosure of these instances in our periodic filings with the SEC. Our only related-party transaction requiring disclosure under this policy relates to an August 10, 2018 loan transaction we entered into with Elizabeth Zbikowski. Ms. Zbikowski, along with her husband Scott Zbikowski, owns approximately 1,765,000 shares of our common stock. In the transaction, we obtained a two-year promissory note in the principal amount of $ 250,000 . The promissory note was subsequently amended such that it matures in August 2022. The note bears interest payable monthly at the rate of 10 % per annum and is secured by the debtors’ pledge to us of 625,000 shares of our common stock. The pledged shares are held in physical custody for us by our custodial agent Millennium Trust Company. NOTE 6 – INCOME TAXES Presently, we are a C-corporation for tax purposes and have booked an income tax provision for the periods described below. As of September 30, 2021 and December 31, 2020, we have a deferred tax liability of $ 141,000 and $ 258,000 , respectively. Our determination of the realizable deferred tax assets and liabilities requires the exercise of significant judgment, based in part on business plans and expectations about future outcomes. In the event the actual results differ from these estimates in future periods, we may need to adjust the valuation allowance, which could materially impact our financial position and results of operations. We will continue to assess the need for a valuation allowance in future periods. As of September 30, 2021 and December 31, 2020, we had accrued income taxes of $ 1,141,700 and $ 13,722 respectively. We recorded a benefit from income taxes of approximately $ 300 ( 28.9 percent effective tax rate) and $ 0 ( 0 percent effective tax rate) during the three months ended September 30, 2021 and September 30, 2020, respectively. We recorded income taxes of approximately $ 1,010,978 ( 30.4 percent effective tax rate) and $ 0 ( 0 percent effective tax rate) during the nine months ended September 30, 2021 and September 30, 2020, respectively. Due to the full valuation allowances in periods prior to December 31, 2020, our effective tax rate was expected to be near zero percent, and therefore income tax accruals and expense were not material for those prior periods presented. As of December 31, 2020, we had a federal net operating loss carryfoward (NOL) of approximately $ 351,000 . The federal NOL was completely utilized and offset taxable income as of September 30, 2021. States may vary in their treatment of post-2017 NOLs. The remaining state NOLs are expected to be completely used and offset taxable income by September 30, 2021. The remaining state NOL carryforwards may expire in 2036 and 2037 if not used. NOTE 7 – SHAREHOLDERS’ EQUITY At September 30, 2021, we had 10,790,413 shares of common stock issued and outstanding . - 15 - ​ Table of Contents On September 27, 2021 we announced that our Board of Directors had approved a cash dividend of $ 0.10 per common share. The dividend was paid on October 29, 2021 to shareholders of record as of the close of business on October 15, 2021. On December 8, 2020 we announced that our Board of Directors had approved a cash dividend of $ 0.05 per common share. The dividend was paid on January 4, 2021 to shareholders of record as of the close of business on December 21, 2020. ​ NOTE 8 – PER-SHARE INFORMATION Basic net gain per common share is computed by dividing net increase in net assets resulting from operations by the weighted-average number of common shares outstanding during the period. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net gain (loss) per common share is set forth below: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ September 30, ​ ​ 2021 ​ 2020 Numerator: Net increase in net assets resulting from operations ​ $ 31,288 ​ $ 583,344 Denominator: Weighted-average number of common shares outstanding ​ 10,790,413 ​ 10,696,735 Basic and diluted net gain per common share ​ $ 0.00 ​ $ 0.05 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, ​ ​ 2021 ​ 2020 Numerator: Net increase in net assets resulting from operations ​ $ 2,557,836 ​ $ 894,796 Denominator: Weighted-average number of common shares outstanding ​ ​ 10,788,918 ​ ​ 10,881,382 Basic and diluted net gain per common share ​ $ 0.24 ​ $ 0.08 ​ ​ ​ NOTE 9 – OPERATING LEASES We are subject to two non-cancelable operating leases for office space expiring March 31, 2022. These leases do not have significant lease escalations, holidays, concessions, leasehold improvements, or other build-out clauses. Further, the leases do not contain contingent rent provisions. The leases do not include options to renew. Because our lease does not provide an implicit rate, we use our incremental borrowing rate in determining the present value of the lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The weighted-average discount rate as of December 31, 2020 was 4.5 % and the weighted-average remaining lease term is one year . Under ASC 840, rent expense for office facilities for the three months ended September 30, 2021 and September 30, 2020 was $ 16,689 and $ 16,562 , respectively. The components of our operating lease were as follows for the three and nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ​ Nine Months ​ ​ Ended ​ Ended ​ September 30, 2021 September 30, 2021 Operating lease costs ​ $ 4,779 ​ $ 14,337 Variable lease cost ​ 4,478 ​ 13,082 Short-term lease cost ​ 7,432 ​ 22,297 Total ​ $ 16,689 ​ $ 49,716 ​ - 16 - ​ Table of Contents Supplemental balance sheet information consisted of the following at September 30, 2021: ​ ​ ​ ​ ​ Operating Lease ​ ​ Right-of-use assets ​ $ 9,661 ​ ​ ​ Operating Lease Liability ​ $ 10,843 Less: short term portion ​ ( 10,843 ) Long term portion ​ $ — ​ Maturity analysis under lease agreements consisted of the following as of September 30, 2021: ​ ​ ​ ​ ​ ​ Operating ​ ​ Leases 2021 ​ $ 5,290 2022 ​ 5,449 Total lease payments ​ 10,739 Plus: interest ​ 104 Present value of lease liabilities ​ $ 10,843 ​ ​ ​ NOTE 10 – FINANCIAL HIGHLIGHTS The following is a schedule of financial highlights for the nine months ended September 30, 2021 through 2017: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended June 30, ​ 2021 2020 2019 2018 2017 Per Share Data (1) ​ ​ Net asset value at beginning of period ​ $ 1.08 0.91 1.02 0.87 0.77 ​ Net investment gain (loss) ​ 0.09 0.02 ( 0.05 ) ( 0.04 ) ( 0.04 ) ​ Net realized and unrealized gains (losses) ​ 0.24 0.06 0.01 0.15 0.06 ​ Provision for income taxes ​ ( 0.09 ) 0.00 0.00 0.00 0.00 ​ Repurchase of common stock ​ 0.00 0.02 0.00 0.00 0.04 ​ Payment of common stock dividend ​ ( 0.10 ) 0.00 ( 0.05 ) 0.00 0.00 ​ Net asset value at end of period ​ $ 1.22 1.01 0.93 0.98 0.83 ​ ​ ​ ​ Ratio / Supplemental Data ​ ​ Per share market value of investments at end of period ​ $ 1.02 0.76 0.70 0.82 0.51 ​ Shares outstanding at end of period ​ 10,790,413 10,696,735 11,067,402 11,067,402 12,151,493 ​ Average weighted shares outstanding for the period ​ 10,788,918 10,881,382 11,067,402 11,067,402 12,151,493 ​ Net assets at end of period ​ $ 13,140,835 10,805,062 10,588,689 11,278,889 9,555,551 ​ Average net assets (2) ​ $ 13,090,497 10,220,482 12,304,975 9,955,674 9,504,851 ​ Total investment return ​ 22.22 % 8.79 % ( 8.82 ) % 12.64 % 2.60 % Portfolio turnover rate (3) ​ 124.55 % 18.18 % 7.11 % 11.55 % 11.87 % Ratio of operating expenses to average net assets (3) ​ ( 10.31 ) % ( 6.49 ) % ( 7.70 ) % ( 6.98 ) % ( 7.38 ) % Ratio of net investment income (loss) to average net assets (3) ​ 9.87 % 3.35 % ( 6.40 ) % ( 5.53 ) % ( 5.89 ) % Ratio of realized gains (losses) to average net assets (3) ​ 40.81 % 7.06 % 57.36 % ( 12.79 ) % 16.51 % (1) Per-share data was derived using the ending number of shares outstanding for the period. (2) Based on the monthly average of net assets as of the beginning and end of each period presented. (3) Ratios are annualized. - 17 - ​ Table of Contents NOTE 11 – General Uncertainty On March 11, 2020, the World Health Organization declared the outbreak of the coronavirus (COVID-19) a pandemic. As a result, economic uncertainties and market volatility have arisen which may negatively impact our investment valuations and net increase or decrease in net assets resulting from operations. Other financial impacts could occur though such potential impact is difficult to determine at this time. NOTE 12 – Subsequent Events None ​ - 18 - ​ Table of Contents