What changed in this filing

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Item 1. Financial Statements

2024-08-14 compared with 2024-05-15 · 149 added, 163 removed, 352 unchanged (47% of the section changed)

2 unchanged sentences

CONDENSED BALANCE SHEETS

March 31, 2024 (unaudited)

June 30, 2024 (unaudited)

December 31, 2023

Investments, at fair value (cost:

$ 18,366,616 and $ 18,577,481 , respectively)

Note receivable, related party

Investments, at fair value:

Non-control/non-affiliate investments (cost:

$ 14,460,679 and

$ 18,577,481 respectively)

Cash and cash equivalents

Note receivable

Prepaid expenses

5 unchanged sentences

Operating lease liability

Accrued income tax

Total Liabilities

1 unchanged sentence

Common stock, par value $ 0.001 per share ( 111,111,111 authorized;

6,385,255 issued and outstanding)

6,385,255 outstanding)

Additional paid-in capital

6 unchanged sentences

Accumulated undistributed net realized gains on investment transactions

Net unrealized appreciation (depreciation) in value of investments

Net unrealized depreciation in value of investments

( 1,530,694 )

7 unchanged sentences

Three Months Ended

March 31, 2024

March 31, 2023

Six Months Ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Investment Income

11 unchanged sentences

Net realized gain (loss) on investments

Net change in unrealized appreciation on investments

Net change in unrealized appreciation (depreciation) on investments

Net Realized and Unrealized Gain on Investments

1 unchanged sentence

$ ( 621,645 )

Provision (Benefit) for Income Taxes

Provision for Income Taxes

Net Increase (Decrease) in Net Assets Resulting from Operations

1 unchanged sentence

Net Increase (Decrease) in Net Assets Resulting from Operations per share:

Basic and diluted

Weighted-average number of common shares outstanding - basic

Weighted-average number of common shares outstanding - diluted

See accompanying Notes to Financial Statements

MILL CITY VENTURES III, LTD.

CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Common Shares

3 unchanged sentences

Accumulated Undistributed Net Realized Gain on Investments Transactions

Net Unrealized Appreciation (Depreciation) in Value of Investments

Net Unrealized Depreciation in value of Investments

Total Shareholders' Equity

Balance as of December 31, 2023

Balance as of March 31, 2024

$ ( 1,159,665 )

3 unchanged sentences

Undistributed net realized gain on investment transactions

Appreciation in value of investments

Depreciation in value of investments

Balance as of June 30, 2024

$ ( 1,159,665 )

$ ( 390,494 )

$ ( 1,530,694 )

Three Months Ended June 30, 2023

Common Shares

Additional Paid In Capital

Accumulated Deficit

Accumulated Undistributed Net Investment Gain (Loss)

Accumulated Undistributed Net Realized Gain on Investments Transactions

Net Unrealized Depreciation in value of Investments

Total Shareholders' Equity

Balance as of March 31, 2023

1 unchanged sentence

$ ( 1,853,206 )

Undistributed net investment gain

Undistributed net realized gain on investment transactions

Depreciation in value of investments

Balance as of June 30, 2023

$ ( 1,159,665 )

Three Months Ended March 31, 2023

$ ( 1,802,749 )

Six Months Ended June 30, 2024

Common Shares

1 unchanged sentence

Accumulated Deficit

Accumulated Undistributed Net Investment Gain (Loss)

Accumulated Undistributed Net Realized Gain on Investments Transactions

Net Unrealized Depreciation in value of Investments

Total Shareholders' Equity

Balance as of December 31, 2023

$ ( 1,159,665 )

$ ( 1,052,183 )

$ ( 1,292,804 )

Undistributed net investment gain

Undistributed net realized gain on investment transactions

Depreciation in value of investments

Balance as of June 30, 2024

$ ( 1,159,665 )

$ ( 390,494 )

$ ( 1,530,694 )

Six Months Ended June 30, 2023

Common Shares

Additional Paid In Capital

Accumulated Deficit

Accumulated Undistributed Net Investment Loss

8 unchanged sentences

Net investment loss, net of tax benefit of $139,300

Net realized loss on investment transactions

Undistributed net realized loss on investment transactions

Appreciation in value of investments

Balance as of March 31, 2023

Balance as of June 30, 2023

$ ( 1,159,665 )

3 unchanged sentences

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

March 31, 2024

March 31, 2023

Six Months Ended

June 30, 2024

June 30, 2023

Cash flows from operating activities:

2 unchanged sentences

Adjustments to reconcile net increase (decrease) in net assets resulting

from operations to net cash provided (used) in operating activities:

Net change in unrealized appreciation on investments

from operations to net cash provided by operating activities:

Net change in unrealized (appreciation) depreciation on investments

Net realized (gain) loss on investments

9 unchanged sentences

Deferred interest income

Net cash provided by (used in) operating activities

( 3,399,812 )

Net cash provided by operating activities

Cash flows from financing activities:

Proceeds from line of credit

Repayments on line of credit

( 2,750,000 )

Net cash provided by financing activities

Net increase (decrease) in cash

Cash, beginning of period

Cash, end of period

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Supplemental disclosure of cash flow information:

Cash paid for income taxes

See accompanying Notes to Financial Statements

MILL CITY VENTURES III, LTD.

CONDENSED SCHEDULE OF INVESTMENTS

MARCH 31, 2024

CONDENSED SCHEDULE OF INVESTMENTS (UNAUDITED)

JUNE 30, 2024

Investment / Industry

4 unchanged sentences

Consumer - 15% secured loans

Intelligent Mapping, LLC

Bankers American Capital Corp

Financial - 12% secured loans

Real Estate - 12% secured loans

Tailwind, LLC

Real Estate - 12% secured loans

Alatus Development Corp

4 unchanged sentences

Total Preferred Stock

Information Technology

Total Investments

Total Cash and cash equivalents

Total Investments and Cash

See accompanying Notes to the Financial Statements

MILL CITY VENTURES III, LTD.

21 unchanged sentences

Total Investments and Cash

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

See accompanying Notes to the Financial Statements

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”) Topic 946 “Financial Services – Investment Companies”.

We were incorporated in Minnesota in January 2006.

11 unchanged sentences

The Company presents its financial statements as 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.

Cash and cash equivalents :

Cash represents cash on hand and demand deposits held at financial institutions.

Cash equivalents include short-term, highly liquid investments of sufficient credit quality that are readily convertible to known amounts of cash and have original maturities of three months or less.

Cash equivalents are carried at cost, plus accrued interest, which approximates fair value.

Cash equivalents are held to meet short-term liquidity requirements, rather than for investment purposes.

Cash and cash equivalents are held at major financial institutions and are subject to credit risk to the extent those balances exceed applicable Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC) limitations.

Valuation of portfolio investments:

14 unchanged sentences

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.

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

Our valuation policy and procedures :

24 unchanged sentences

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.

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

We file income tax returns in the U.S.

Federal jurisdiction and various state jurisdictions.

We do 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, 2020 through 2023, which are the tax years that remain subject to examination by major tax jurisdictions as of March 31, 2024.

We do not believe there will be any material changes in our unrecognized tax positions over the next 12 months.

Our evaluation was performed for the tax years ended December 31, 2020 through 2023, which are the tax years that remain subject to examination by major tax jurisdictions as of June 30, 2024.

Revenue recognition :

27 unchanged sentences

Our executive management team manages our investments as part of their employment responsibilities.

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

NOTE 3 – INVESTMENTS

The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of March 31, 2024 (together with the corresponding percentage of the fair value of our total portfolio of investments):

As of March 31, 2024

The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of June 30, 2024 (together with the corresponding percentage of the fair value of our total portfolio of investments):

As of June 30, 2024

Investments at Amortized Cost

4 unchanged sentences

Preferred Stock

The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of December 31, 2023 (together with the corresponding percentage of the fair value of our total portfolio of investments):

As of December 31, 2023

5 unchanged sentences

Preferred Stock

The following table shows the composition of our investment portfolio by industry grouping, based on fair value as of March 31, 2024:

As of March 31, 2024

The following table shows the composition of our investment portfolio by industry grouping, based on fair value as of June 30, 2024:

As of June 30, 2024

Investments at

1 unchanged sentence

Business Services

Information Technology

The following table shows the composition of our investment portfolio by industry grouping, based on fair value as of December 31, 2023:

4 unchanged sentences

Information Technology

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

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 investment portfolio as of March 31, 2024 may differ materially from values that would have been used had a readily available market for those investments existed.

The following table presents the fair value measurements of our portfolio investments by major class, as of March 31, 2024, according to the fair value hierarchy:

As of March 31, 2024

Due to the inherent uncertainty in the valuation process, the estimate of the fair value of our investments portfolio as of June 30, 2024 may differ materially from values that would have been used had a readily available market for the investments existed.

The following table presents the fair value measurements of our portfolio investments by major class, as of June 30, 2024, according to the fair value hierarchy:

As of June 30, 2024

Short-term Non-banking Loans

Preferred Stock

The following table presents the fair value measurements of our portfolio investments by major class, as of December 31, 2023, according to the fair value hierarchy:

The following table presents the fair value measurements of our investment portfolio by major class, as of December 31, 2023, according to the fair value hierarchy:

As of December 31, 2023

1 unchanged sentence

Preferred Stock

The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the three months ended March 31, 2024:

For the three months ended March 31, 2024

The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the six months ended June 30, 2024:

For the six months ended June 30, 2024

ST Non-banking Loans

4 unchanged sentences

Sales and redemptions

( 4,770,000 )

Transfers out of level 3

Balance as of March 31, 2024

The net change in unrealized appreciation for the three months ended March 31, 2024 attributable to Level 3 portfolio investments still held as of March 31, 2024 was $ 22,243 .

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

The following table lists our Level 3 investments held as of March 31, 2024 and the unobservable inputs used to determine their valuation:

Balance as of June 30, 2024

The net change in unrealized depreciation for the six months ended June 30, 2024 attributable to Level 3 portfolio investments still held as of June 30, 2024 is $ 324,743 .

The following table lists our Level 3 investments held as of June 30, 2024 and the unobservable inputs used to determine their valuation:

Security Type

4 unchanged sentences

determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness

last secured funding known by company

Preferred Stock

last funding secured by company

economic changes since last funding

The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the period ended December 31, 2023:

The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the year ended December 31, 2023:

For the year ended December 31, 2023

4 unchanged sentences

Purchases and other adjustments to cost

Sales and redemptions

( 11,029,625 )

Realized gain (loss)

Transfers between level 3 and level 1

( 11,029,625 )

Balance as of December 31, 2023

14 unchanged sentences

In this regard, during the period covered by this report we entered into, or remained a party to, the following related-party transactions:

On August 10, 2018, we entered into a loan transaction with Elizabeth Zbikowski who, along with her husband Scott Zbikowski, owned and continues to own approximately 534,445 shares of our common stock.

In the transaction, we obtained a two-year promissory note in the principal amount of $ 250,000 , which was subsequently amended such that the note presently matures on July 1, 2024.

We hold a promissory note with two shareholders in the principal amount of $ 250,000 , through January 1, 2025.

The promissory note bears interest payable monthly at the rate of 10 % per annum.

The note is secured by the debtors’ pledge to us of 277,778 shares of our common stock.

The pledged shares are held in physical custody for us by Millennium Trust Company, as our custodial agent.

On January 3, 2022, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Eastman Investment, Inc., a Nevada corporation, and Lyle A.

Berman, as trustee of the Lyle A.

Berman Revocable Trust (collectively, the “Lenders”).

Berman is a director of our Company.

Under the Loan Agreement, the Lenders made available to us a $ 5 million revolving line of credit for us to use in the ordinary course of our short-term specialty finance business.

See note 7 below for further details.

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

The note is secured by the debtors’ pledge to us of 277,778 shares of common stock.

The pledged shares are held in physical custody for us by our custodial agent.

As disclosed in Note 7, a component of our now terminated loan agreement is with a director of our 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.

We are a C-Corporation for tax purposes and have booked an income tax provision for the periods described below.

Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate.

As of March 31, 2024 and December 31, 2023, we have a deferred tax asset of $ 660,000 and $ 757,000 , respectively.

As of March 31, 2024, our net deferred tax asset consists of foreign tax credit carryforwards, unrealized investment gain/loss, non-qualified stock option expenses, acquisition costs, depreciable assets, and right of use assets.

As of June 30, 2024 and December 31, 2023, we have a deferred tax asset of $ 772,000 and $ 757,000 , respectively.

As of June 30, 2024, our net deferred tax asset consists of foreign tax credit carryforwards, unrealized investment gain/loss, non-qualified stock option expenses, acquisition costs, depreciable assets, and right of use assets.

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.

As of March 31, 2024 and December 31, 2023 we had prepaid income taxes of $ 67,700 and $ 131,500 , respectively.

We recorded an increase of income taxes of $ 165,723 ( 30 percent effective tax rate) and a decrease of income taxes of $ 259,300 ( 26 percent effective tax rate) during the three months ended March 2024 and March 2023, respectively.

As of June 30, 2024 and December 31, 2023 we had accrued income taxes of $ 177,600 and prepaid income taxes $ 131,500 , respectively.

We recorded an increase of income taxes of $ 300,000 ( 26 percent effective tax rate) and $ 25,700 ( 26 percent effective tax rate) during the six months ended June 30, 2024 and June 30, 2023, respectively.

NOTE 7 – LINE OF CREDIT

On January 3, 2022, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Eastman Investment, Inc., a Nevada corporation, and Lyle A.

Berman, as trustee of the Lyle A.

Berman Revocable Trust (collectively, the “Lenders”).

Berman is a director of our Company.

Under the Loan Agreement, the Lenders made available to us a $ 5 million revolving line of credit for us to use in the ordinary course of our short-term specialty finance business.

Amounts drawn under the Loan Agreement accrued interest at the per annum rate of 8 %, and all our obligations under the Loan Agreement were secured by a grant of a collateral security interest in substantially all of our assets.

As a Lender, Mr.

Berman was obligated to furnish only one-half of the aggregate $ 5 million available under the Loan Agreement.

The Loan Agreement had a five-year term ending on January 3, 2027, at which time all amounts owing under the Loan Agreement were to become due and payable;

subject, however, to each Lender’s right, including Mr.

Berman, to terminate the Loan Agreement, solely with respect to such Lender’s obligation to provide further credit, at any time after January 3, 2023.

During the period January 3 to June 30, 2022, the Loan Agreement provided for us to pay a quarterly unused commitment fee equal to one-quarter of one percent of the amount of credit available but unused under the Loan Agreement, and initially required us to pay such fee in the form of shares of our common stock based on our net asset value per share on the last day of the applicable fiscal quarter.

Beginning July 1, 2022, however, we became obligated under the Loan Agreement to pay the quarterly unused commitment fee in cash.

The Company had a Loan and Security Agreement (the “Loan Agreement”) with a third party and director (collectively, the Lenders).

Under the Loan Agreement, the Lenders made available to us a $ 5 million revolving line of credit for us to use in the ordinary course of our short-term specialty finance business, of which our director was required to fund one half of the amount.

Amounts drawn under the Loan Agreement accrue interest at the per annum rate of 8 %, through January 3, 2027, subject to early termination provisions at the Lender’s right at any time after January 3, 2023.

Our obligations under the Loan Agreement were secured by a grant of a collateral security interest in substantially all of our assets.

At December 31, 2023, the balance outstanding on the line was $ 0 .

In January 2024, we terminated the Loan Agreement having earlier satisfied all amounts owing thereunder.

In January 2024, we terminated the Loan Agreement.

Any applicable fees related to early termination of the Agreement were waived.

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

NOTE 8 – STOCK-BASED COMPENSATION

The Company’s 2022 Stock Incentive Plan (the “Plan”) authorized the issuance of incentives relating to 900,000 shares of common stock.

As of March 31, 2024, incentives relating to the issuance of 870,000 shares have been issued under the Plan, leaving 30,000 shares available for issuance.

The Plan was amended by the Board of Directors on August 14, 2023, and a registration statement on Form S-8 respecting the Plan was filed with the SEC on August 23, 2023.

The following table summarizes the activity for all stock options outstanding for the three months ended March 31, 2024:

The Company’s 2022 Stock Incentive Plan authorized the issuance of incentives relating to 900,000 shares of common stock.

As of June 30, 2024, incentives relating to the issuance of 870,000 shares have been issued under the Plan, leaving 30,000 shares available for issuance.

The following table summarizes the activity for all stock options outstanding for the six months ended June 30, 2024:

Weighted Average Exercise Price

Options outstanding at beginning of year

Balance at March 31

Options exercisable at March 31:

The following table summarizes additional information about stock options outstanding and exercisable at March 31, 2024:

Balance at June 30, 2024

Options exercisable at June 30:

The following table summarizes additional information about stock options outstanding and exercisable at June 30, 2024:

Options Outstanding

7 unchanged sentences

Aggregate Intrinsic Value

The Company recognized stock-based compensation expense for stock options of $ 0 and $ 1,460,209 for the three months ended March 31, 2024 and 2023, respectively.

The Company recognized stock-based compensation expense for stock options of $ 0 and $ 1,460,209 for the six months ended June 30, 2024 and 2023, respectively.

NOTE 9 – SHAREHOLDERS’ EQUITY

At March 31, 2024, we had 6,385,255 shares of common stock issued and outstanding.

At June 30, 2024, we had 6,385,255 shares of common stock issued and outstanding.

In connection with the 2022 public offering, the Company issued a five-year warrant to the underwriter.

7 unchanged sentences

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 March 31,

For the Three Months Ended June 30,

Net increase in net assets resulting from operations

Weighted-average number of common shares outstanding

Basic and diluted net gain (loss) per common share

For the Six Months Ended June 30,

Net increase (decrease) in net assets resulting from operations

3 unchanged sentences

Basic and diluted net gain (loss) per common share

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

NOTE 11 – OPERATING LEASES

We are party to a non-cancelable operating lease for office space expiring May 31, 2024.

The lease does not have significant lease escalations, holidays, concessions, leasehold improvements, or other build-out clauses.

Further, the lease does not contain contingent rent provisions.

The lease does not include an option 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 March 31, 2024 and March 31, 2023 was 4.5 % and the weighted-average remaining lease term is one year .

Rent expense for office facilities for the three months ended March 31, 2024 and 2023 was $ 10,677 and $ 19,043 , respectively.

The components of our operating leases were as follows for the three months ended March 31:

Operating lease costs

Variable lease cost

Short-term lease cost

Supplemental balance sheet information consisted of the following at March 31:

Operating Lease

Right-of-use assets

Operating Lease Liability

short term portion

Long term portion

Maturity analysis under this lease extension agreement consists of the following as of March 31:

Total lease payments

Present value discount

Present value of lease liabilities

MILL CITY VENTURES III, LTD.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2024

NOTE 11 – FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights for the three months ended March 31, 2024 through 2020:

Three Months Ended March 31,

The following is a schedule of financial highlights for the six months ended June 30, 2024 through 2020:

Six Months Ended June 30,

Per Share Data (1)

2 unchanged sentences

Net realized and unrealized gains (losses)

Provision for (benefit from) income taxes

Provision for income taxes

Issuance of stock options

Repurchase of common stock

Net asset value at end of period

2 unchanged sentences

Shares outstanding at end of period

Average weighted shares outstanding for the period - basic

Average weighted shares outstanding for the period - diluted

Average weighted shares outstanding for the period

Net assets at end of period

Average net assets (2)

Total investment return

Total investment return (loss)

Portfolio turnover rate (3)

1 unchanged sentence

Ratio of net investment income (loss) to average net assets (3)

Ratio of realized gains (losses) to average net assets (3)

(1) Per-share data was derived using the ending number of shares outstanding for the period.

2 unchanged sentences

NOTE 12 – Subsequent Events

In July 2024, the Company purchased, for $ 1.15 million, a 50 % participation interest from Great North Capital Corp.

("Great North") in a secured loan that Great North had made to an unaffiliated borrower named Coventry Holdings of Minnesota, LLC, involved in the development, construction and operation of senior-living communities.

Great North is a Minnesota corporation that is wholly owned by our Chief Executive Officer, Douglas Polinsky.

The transaction was approved by the full Board of Directors of the Company, with Mr.

Polinsky abstaining, after disclosure by Mr.

Polinsky of his relationship and interest in the transaction.

On August 13, 2024, the company entered into a mediated settlement agreement with Innovative Computer Professionals, Inc., pursuant to which the company agreed to accept $ 400,000 in full satisfaction of an outstanding debt principal, accrued but unpaid interest and related collection costs.

The company had earlier written off the full amount of this investment position.

The settlement agreement included a confession of judgment from the debtor, in the full amount of $ 809,181 , if the debtor fails to pay the settlement payment on or before August 23, 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements