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Mill City Ventures III Ltd (MCVT+4.23%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations in providing short-term specialty finance solutions to private businesses, micro- and small-cap public companies, and high-net-worth individuals. The company focuses on high-interest short-term lending arrangements, often secured by collateral or personal guarantees.
For the year ended December 31, 2024, Mill City Ventures reported interest income of $3,301,119, a slight increase from $3,298,635 in 2023. The company earned $2,758,744 from 10 different short-term loans and $542,375 in related origination fees.
Operating expenses totaled $1,975,875 for the year, down from $3,718,633 in 2023. The decrease was attributed to reduced legal, accounting, payroll, and director fees, as well as the absence of stock-based compensation expenses.
Net investment gain for 2024 was $1,325,244, compared to a net investment loss of $419,998 in 2023. The improvement was primarily due to the absence of stock-based compensation expenses in 2024.
The company's net assets increased by $1,167,726 as of December 31, 2024, primarily due to the reduction in operating expenses.
Mill City Ventures' investment portfolio at the end of 2024 was valued at $13,453,561, with $13,006,231 in short-term non-banking loans and $447,330 in common stock.
The company reported cash and cash equivalents of $6,026,110 at year-end, an increase from $376,024 at the end of 2023, due to cash flows from operating activities.
In 2024, Mill City Ventures made new investments totaling $5,665,526 and refinanced or extended the term of investments totaling $17,795,000.
The company terminated its $5 million revolving line of credit in January 2024 and expects its cash and cash equivalents to be sufficient to fund operations through 2025.
Mill City Ventures identified a material weakness in its internal controls over financial reporting, related to the proper accounting for transactions in accordance with GAAP, and plans to remediate this by retaining an accounting expert.
The filing also notes that Mill City Ventures entered into new executive employment agreements with its CEO and CFO, effective January 1, 2025, with base annual salaries set at $220,000.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Mill City Ventures III Ltd annual 10-K report dated March 10, 2025. To report an error, please email earnings@qz.com.