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].

Investment Performance - For the nine months ended September 30, 2022, the company made $13,924,333 in investments and loans, with $10,076,483 in redemptions and repayments, resulting in net investments at amortized cost of $17,913,927[85]. - Investment income for the three months ended September 30, 2022, was $1,115,224, compared to $755,601 for the same period in 2021, representing a 47.7% increase[88]. - The weighted-average interest rate on the loan portfolio was 26%, with interest earned of $2,840,425 for the nine months ended September 30, 2022, compared to $1,756,492 in 2021, a 61.6% increase[90]. - The investment composition by fair value as of September 30, 2022, included $16,040,748 in short-term non-banking loans, representing 88.8% of total investments[86]. Operating Expenses - Operating expenses for the nine months ended September 30, 2022, were $2,227,865, up from $1,023,596 in 2021, indicating a 117.5% increase[88]. - Professional fees for the nine months ended September 30, 2022, totaled $1,309,348, significantly higher than $300,297 in 2021, reflecting a 335.5% increase[91]. Cash Flow - As of September 30, 2022, the company had cash of $1,861,650, a decrease of $74,498 from December 31, 2021[97]. - For the nine months ended September 30, 2022, net cash used in operating activities was $6,429,293, compared to $1,306,775 in 2021, indicating a significant increase in cash outflow[95]. Net Assets - The company recorded a net increase in net assets from operations of $893,993 for the nine months ended September 30, 2022, compared to $2,557,836 in 2021[94]. Public Offering - 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[99].

Table of Contents 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, 2022 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 MILL CITY VENTURES III, LTD. (Exact name of registrant as specified in its charter) Minnesota 90-0316651 ...

Table of Contents 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 March 31, 2022 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 814-00991 (952) 479-1923 (Registrant's telephone number, including area code) N/A (Former name, former address and ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 814-00991 MILL CITY VENTURES III, LTD. (Exact name of registrant as specifie ...

Table of Contents Commission File Number 814-00991 MILL CITY VENTURES III, LTD. (Exact name of registrant as specified in its charter) 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 September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or o 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 814-00991 MILL CITY VENTURES III, LTD. (Exact name of registrant as specified in its char ...

(952) 479-1923 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) Commission File Number 814-00991 MILL CITY VENTURES III, LTD. (Exact name of registrant as specified in its charter) Minnesota 90-0316651 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1907 Wayzata Blvd, #205, Wayzata, Minnesota 55391 (Address of principal executive offices) (Zip Code) (Registrant's telephone number, including area code) N/A (Former ...