Mill City Ventures III(MCVT) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2025, were $1,013,945, a 43% increase compared to $711,022 for the same period in 2024 [124]. - Total revenues for the nine months ended September 30, 2025, were $2,740,006, representing a 13% increase from $2,432,318 in 2024 [136]. - Portfolio investment income decreased to $1,726,061, down 29% from $2,432,318 in the prior year, primarily due to a change in accounting presentation [140]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $64,676,420, a significant increase from $121,739 in the same period in 2024, resulting in an operating loss of $(63,662,475) [124]. - Total operating expenses surged to $64,895,400, an increase of 8,581% compared to $747,535 in the previous year [137]. - Professional fees increased to $758,065, up 51% from $502,838 in the previous year, due to higher costs associated with a new strategy [141]. Cash Flow - Cash and cash equivalents as of September 30, 2025, were $42,700,411, an increase of $36,674,301 from December 31, 2024 [151]. - Net cash used in operating activities was $1,782,339 for the nine months ended September 30, 2025, compared to net cash provided of $1,248,783 in 2024 [148]. - Net cash used in investing activities was $250,229,041, primarily due to purchases related to the SUI strategy [149]. - Net cash provided in financing activities was $288,685,681, related to proceeds from a Private Placement and stock options [150]. Investment and Portfolio - The company made $8,247,139 in portfolio investment purchases during the nine months ended September 30, 2025, compared to $5,106,503 in the same period in 2024 [119]. - The portfolio composition as of September 30, 2025, included 43.1% in short-term non-banking loans and 49.6% in commercial business loans [120]. - The average portfolio loan rate increased to 20.5%, contributing to higher origination fees on current loan portfolio extensions [128]. Digital Assets and Staking - As of September 30, 2025, the company held 106 million SUI tokens valued at $344.5 million, equating to approximately $3.26 per token [107]. - The company generated approximately $1 million in staking rewards for the three months ended September 30, 2025, reflecting an annualized yield of 2.2% [125]. - SUI staking revenue generated approximately $1 million from 287,599 SUI tokens earned on 49,251,995 staked tokens, reflecting a staking yield of 2.2% [138]. - The unrealized loss on digital assets for the three months ended September 30, 2025, was $60,763,592, reflecting significant volatility in the market [134]. - Unrealized loss on digital assets amounted to $60,763,592, with a net unrealized loss after amortization of deferred income [146]. Treasury Strategy - The company’s treasury strategy is supported by an exclusive relationship with the Sui Foundation, positioning it uniquely in the market [106]. - Stock-based compensation for the three months ended September 30, 2025, amounted to $2,261,737, reflecting expenses related to a $450 million private placement [130].