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].
Mill City Ventures III(MCVT) - 2023 Q1 - Quarterly Report