Financial Performance - Investment income for the three months ended June 30, 2024, was $888,629, a decrease of 2.9% compared to $907,502 for the same period in 2023[6] - Net investment gain for the three months ended June 30, 2024, was $490,570, an increase of 45.3% from $337,457 for the same period in 2023[6] - The net increase in net assets resulting from operations for the six months ended June 30, 2024, was $795,039, compared to a loss of $647,323 for the same period in 2023[6] - Net investment income for the six months ended June 30, 2024, was $0.15, an increase from a loss of $0.11 in the same period in 2023[57] - Total investment income for the six months ended June 30, 2024, was $1,721,296, down from $1,771,530 in the same period in 2023[66] - Total investment return for the six months ended June 30, 2024, was 4.47%[58] - The company experienced a realized gain of $346,745 from investments for the six months ended June 30, 2024, compared to a realized loss of $558,629 in the same period of 2023[72] Assets and Liabilities - Total assets as of June 30, 2024, were $19,658,150, an increase from $19,106,697 as of December 31, 2023, representing a growth of approximately 2.89%[5] - Cash and cash equivalents increased significantly to $5,424,611 as of June 30, 2024, from $376,024 as of December 31, 2023[4] - Total liabilities decreased to $272,848 as of June 30, 2024, from $516,434 as of December 31, 2023, a reduction of approximately 47.3%[5] - As of June 30, 2024, total shareholders' equity increased to $19,385,302 from $18,972,366 as of March 31, 2024, reflecting a growth of approximately 2.17%[10] - The company had a deferred tax asset of $772,000, up from $757,000 as of December 31, 2023[50] Cash Flow - The company reported net cash provided by operating activities of $5,048,587 for the six months ended June 30, 2024, compared to $11,886 for the same period in 2023[14] - The total cash flow from financing activities was reported as zero for the six months ended June 30, 2024, indicating no new financing activities during this period[14] - As of June 30, 2024, the company had cash and cash equivalents of $5,424,611, reflecting an increase of $5,048,587 from December 31, 2023[76] Investment Portfolio - Total investments as of June 30, 2024, were valued at $12,929,985, representing 66.70% of total assets[16] - The company experienced a net unrealized depreciation in the value of investments amounting to $1,530,694 as of June 30, 2024[10] - The investment portfolio composition as of December 31, 2023, shows total investments at fair value of $17,284,676, with short-term non-banking loans representing 98.1%[40] - The fair value of short-term non-banking loans decreased from $16,961,766 on December 31, 2023, to $12,929,985 by June 30, 2024, indicating a decline of approximately 23.5%[39][40] - The investment portfolio is primarily concentrated in business services, which account for 77.5% of the fair value as of June 30, 2024[41] Shareholder Information - The company had 6,385,255 shares of common stock outstanding as of August 15, 2024[2] - The net asset value per common share increased to $3.04 as of June 30, 2024, up from $2.91 as of December 31, 2023[5] - The per-share net increase in net assets from operations was $0.12 for the six months ended June 30, 2024, compared to a per-share net decrease of $0.10 in the same period in 2023[74] Operating Expenses - Total operating expenses for the six months ended June 30, 2024, were $759,146, down 69.1% from $2,461,862 for the same period in 2023[6] - The ratio of operating expenses to average net assets was (7.90)% for the six months ended June 30, 2024[58] Management and Governance - The management identified a material weakness in internal control over financial reporting as of June 30, 2024[81] - The company does not incur expenses related to management and service fees, as the executive management team manages investments as part of their employment responsibilities[38] Future Outlook - The company anticipates future operating results will depend on the success of its investments and the general economy[79]
Mill City Ventures III(MCVT) - 2024 Q2 - Quarterly Report