Mill City Ventures III, Ltd. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and overall financial condition compared to the previous fiscal period.

For the third quarter of 2024, total investment income was $711,022, a slight decrease from $725,158 in Q3 2023. For the nine months ended September 30, 2024, total investment income also declined to $2,432,318 from $2,496,688 in the same period last year. Despite the decrease in investment income, the company reported a net investment gain of $291,175 for Q3 2024, down from $303,785 in Q3 2023. However, for the nine months ended September 30, 2024, the net investment gain was $1,253,325, a significant recovery from a net investment loss of $(386,547) in the prior year.

Operating expenses for Q3 2024 were $419,847, slightly lower than $421,373 in Q3 2023. Notably, total operating expenses for the nine months ended September 30, 2024, were significantly reduced to $1,178,993 from $2,883,235 in the previous year, indicating a strategic effort to streamline costs.

The net increase in net assets resulting from operations for Q3 2024 was $463,783, compared to $369,560 in Q3 2023. For the nine months ended September 30, 2024, the net increase was $1,258,822, a stark contrast to a net decrease of $(277,763) in the same period of 2023. The net asset value per common share increased to $3.11 as of September 30, 2024, from $2.91 at the end of 2023.

Cash and cash equivalents saw a substantial increase, rising to $3,132,877 as of September 30, 2024, compared to $376,024 at the end of 2023. This increase was primarily driven by net cash provided in operating activities of $2,756,853 for the nine months ended September 30, 2024, compared to net cash used of $(550,781) in the prior year.

The company’s investment portfolio as of September 30, 2024, included total investments at amortized cost of $17,208,066, with a fair value of $16,208,065. Short-term non-banking loans represented a significant portion of the portfolio, accounting for 90.9% of the amortized cost.

Mill City Ventures III, Ltd. continues to focus on providing short-term specialty finance solutions, primarily through secured loans to small businesses and high-net-worth individuals. The company has not engaged in any off-balance sheet arrangements during the reporting period and has acknowledged a material weakness in internal control over financial reporting.