Mill City Ventures III (MCVT) 10-Q12 Nov 242024 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 15, 2024
Cover [Abstract]
Entity Registrant Name	MILL CITY VENTURES III, LTD.
Entity Central Index Key	0001425355
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		6,385,255
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-41472
Entity Incorporation State Country Code	MN
Entity Tax Identification Number	90-0316651
Entity Address Address Line 1	1907 Wayzata Blvd, #205
Entity Address City Or Town	Wayzata
Entity Address State Or Province	MN
Entity Address Postal Zip Code	55391
City Area Code	952
Local Phone Number	479-1923
Entity Interactive Data Current	Yes

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Investments, at fair value: Non-control/non-affiliate investments (cost: $17,208,066 and $18,577,481 respectively)	$ 16,208,065	$ 17,284,676
Cash	3,132,877	376,024
Note receivable	0	250,000
Prepaid expenses	67,637	165,301
Interest and dividend receivables	152,500	264,413
Right-of-use lease asset	0	9,283
Deferred taxes	779,000	757,000
Total Assets	20,340,079	19,106,697
LIABILITIES
Accounts payable	111,178	71,702
Deferred interest income	62,000	0
Accrued payroll liabilities	7,716	435,449
Operating lease liability	0	9,283
Accrued income tax	310,100	0
Total Liabilities	490,994	516,434
SHAREHOLDERS EQUITY (NET ASSETS)
Common stock, par value $0.001 per share (111,111,111 authorized 6,385,255 outstanding)	6,385	6,385
Additional paid-in capital	15,473,121	15,473,121
Additional paid-in capital - stock options	1,460,209	1,460,209
Accumulated deficit	(1,159,665)	(1,159,665)
Accumulated undistributed investment loss	(224,819)	(1,052,183)
Accumulated undistributed net realized gains on investment transactions	5,293,855	5,155,200
Net unrealized depreciation in value of investments	(1,000,001)	(1,292,804)
Total Shareholders' Equity (Net Assets)	19,849,085	18,590,263
Total Liabilities and Shareholders' Equity	$ 20,340,079	$ 19,106,697
Net Asset Value Per Common Share	$ 3.11	$ 2.91

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CONDENSED BALANCE SHEETS
Non control/non affiliate investment cost	$ 17,208,066	$ 18,577,481
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	111,111,111	111,111,111
Common stock, shares outstanding	6,385,255	6,385,255

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investment Income
Interest income	$ 711,022	$ 725,158	$ 2,432,318	$ 2,496,688
Total Investment Income	711,022	725,158	2,432,318	2,496,688
Operating Expenses
Professional fees	190,369	184,008	502,838	601,184
Payroll	148,072	141,040	444,997	1,418,640
Insurance	24,694	26,452	76,186	79,974
Occupancy	11,126	14,890	31,348	55,005
Director's fees	30,000	30,000	90,000	592,968
Interest expense	0	0	320	78,000
Other general and administrative	15,586	24,983	33,304	57,464
Total Operating Expenses	419,847	421,373	1,178,993	2,883,235
Net Investment Gain (Loss)	291,175	303,785	1,253,325	(386,547)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments	(232,585)	0	138,655	(558,629)
Net change in unrealized appreciation (depreciation) on investments	530,693	2,175	292,803	629,491
Net Realized and Unrealized Gain (Loss) on Investments	298,108	2,175	431,458	70,862
Net Increase (Decrease) in Net Assets Resulting from Operations Before Taxes	589,283	305,960	1,684,783	(315,685)
Provision for (Benefit from) Income Taxes	125,500	(63,600)	425,961	(37,922)
Net Increase (Decrease) in Net Assets Resulting from Operations	$ 463,783	$ 369,560	$ 1,258,822	$ (277,763)
Net Increase (Decrease) in Net Assets Resulting from Operations per share:
Basic	$ 0.07	$ 0.06	$ 0.20	$ (0.04)
Diluted	$ 0.07	$ 0.06	$ 0.19	$ (0.04)
Weighted-average number of common shares outstanding - basic	6,385,255	6,241,777	6,385,255	6,204,303
Weighted-average number of common shares outstanding - diluted	6,501,823	6,358,345	6,501,823	6,204,303

CONDENSED STATEMENTS OF SHAREHO

CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Undistributed Net Investment Gain (Loss)	Accumulated Undistributed Net Realized Gain On Investments Transaction	Net Unrealized Appreciation Depreciation In Value Of Investments
Balance, shares at Dec. 31, 2022		6,185,255
Balance, amount at Dec. 31, 2022	$ 17,871,560	$ 12,215	$ 15,043,291	$ (1,159,665)	$ (1,086,739)	$ 5,713,829	$ (651,371)
Issuance of stock options	1,460,209	$ 0	1,460,209	0	0	0	0
Exercise of stock options, shares		200,000
Exercise of stock options, amount	424,000	$ 200	423,800	0	0	0	0
Net investment loss, net of tax benefit of $139,300	(348,625)	0	0	0	(348,625)	0	0
Undistributed net realized loss on investment transactions	(558,629)	0	0	0	0	(558,629)	0
Appreciation in value of investments	629,491	$ 0	0	0	0	0	629,491
Balance, shares at Sep. 30, 2023		6,385,255
Balance, amount at Sep. 30, 2023	19,478,006	$ 12,415	16,927,300	(1,159,665)	(1,435,364)	5,155,200	(21,880)
Balance, shares at Jun. 30, 2023		6,185,255
Balance, amount at Jun. 30, 2023	18,684,446	$ 12,215	16,503,500	1,159,665	(1,802,749)	5,155,200	24,055
Exercise of stock options, shares		200,000
Exercise of stock options, amount	424,000	$ 200	423,800	0	0	0	0
Appreciation in value of investments	2,175	0	0	0	0	0	2,175
Undistributed net investment gain	367,385	$ 0	0	0	367,385	0	0
Balance, shares at Sep. 30, 2023		6,385,255
Balance, amount at Sep. 30, 2023	19,478,006	$ 12,415	16,927,300	(1,159,665)	(1,435,364)	5,155,200	(21,880)
Balance, shares at Dec. 31, 2023		6,385,255
Balance, amount at Dec. 31, 2023	18,590,263	$ 6,385	16,933,330	1,159,665	(1,052,183)	5,155,200	1,292,804
Appreciation in value of investments	292,803	0	0	0	0	0	292,803
Undistributed net investment gain	827,364	0	0	0	827,364	0	0
Undistributed net realized gain on investment transactions	138,655	$ 0	0	0	0	138,655	0
Balance, shares at Sep. 30, 2024		6,385,255
Balance, amount at Sep. 30, 2024	19,849,085	$ 6,385	16,933,330	(1,159,665)	(224,819)	5,293,855	(1,000,001)
Balance, shares at Jun. 30, 2024		6,385,255
Balance, amount at Jun. 30, 2024	19,385,302	$ 6,385	16,933,330	(1,159,665)	(390,494)	5,526,440	(1,530,694)
Undistributed net realized loss on investment transactions	(232,585)	0	0	0	0	(232,585)	0
Appreciation in value of investments	530,693	0	0	0	0	0	530,693
Undistributed net investment gain	165,675	$ 0	0	0	165,675	0	0
Balance, shares at Sep. 30, 2024		6,385,255
Balance, amount at Sep. 30, 2024	$ 19,849,085	$ 6,385	$ 16,933,330	$ (1,159,665)	$ (224,819)	$ 5,293,855	$ (1,000,001)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$ 1,258,822	$ (277,763)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net change in unrealized (appreciation) depreciation on investments	(292,803)	(629,491)
Net realized (gain) loss on investments	(138,655)	558,629
Purchases of investments	(5,106,503)	(11,900,500)
Proceeds from sales of investments	6,614,573	11,124,193
Issuance of stock options	0	1,460,209
Deferred income taxes	(22,000)	(196,000)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	356,947	2,700
Interest and dividends receivable	111,913	31,674
Accounts payable and other liabilities	(397,541)	(654,278)
Accrued income taxes	310,100	0
Deferred interest income	62,000	(70,154)
Net cash provided (used) in operating activities	2,756,853	(550,781)
Cash flows from financing activities:
Proceeds from stock option exercise	0	424,000
Proceeds from line of credit	0	2,750,000
Repayments on line of credit	0	(2,750,000)
Net cash provided by financing activities	0	424,000
Net increase (decrease) in cash	2,756,853	(126,781)
Cash, beginning of period	376,024	1,089,641
Cash, end of period	3,132,877	962,860
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 320	$ 78,000

SCHEDULE OF INVESTMENTS

SCHEDULE OF INVESTMENTS - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Total Investments at Fair Value	$ 16,208,065	$ 17,284,676
Represents information pertaining to the Wisdom Gaming, Inc. [Member] \| Preferred Stock [Member]
Total Investments, Cost	900,000	900,000
Total Investments at Fair Value	$ 0	$ 265,000
Total Investments, Percentage of Net Assets	0%	1.43%
Represents the member information pertaining to short term banking loans. [Member]
Total Investments, Cost	$ 15,650,000	$ 17,357,500
Total Investments at Fair Value	$ 15,715,822	$ 16,961,766
Total Investments, Percentage of Net Assets	73.36%	91.23%
Preferreds Stock [Member]
Total Investments, Cost	$ 1,050,000	$ 1,050,000
Total Investments at Fair Value	$ 0	$ 265,000
Total Investments, Percentage of Net Assets	0%	1.43%
Warrants One [Member] \| Healthcare [Member]
Total Investments, Cost		$ 679
Total Investments at Fair Value		$ 0
Total Investments, Percentage of Net Assets		0%
Total Investment [Member]
Total Investments, Cost	$ 17,208,066	$ 18,577,481
Total Investments at Fair Value	$ 16,208,065	$ 17,284,676
Total Investments, Percentage of Net Assets	75.84%	92.97%
Total Cash [Member]
Total Investments, Cost	$ 3,132,877	$ 376,024
Total Investments at Fair Value	$ 3,132,877	$ 376,024
Total Investments, Percentage of Net Assets	15.78%	2.02%
Total Investments and Cash [Member]
Total Investments, Cost	$ 20,340,943	$ 18,953,505
Total Investments at Fair Value	$ 19,340,942	$ 17,660,700
Total Investments, Percentage of Net Assets	91.62%	94.99%
Represents the member information pertaining to short term banking loans. [Member] \| Real Estate [Member] \| Represents the member information pertaining to 18% secured loans [Member]
Total Investments, Cost		$ 745,000
Total Investments at Fair Value		$ 760,119
Total Investments, Percentage of Net Assets		4.09%
Represents the member information pertaining to short term banking loans. [Member] \| Real Estate [Member] \| Represents the member information pertaining to 18% secured loans [Member] \| Tailwind LLC Secured Loans [Member]
Total Investments, Cost	$ 1,150,000	$ 1,000,000
Total Investments at Fair Value	$ 1,154,217	$ 1,001,954
Total Investments, Percentage of Net Assets	5.81%	5.39%
Represents the member information pertaining to short term banking loans. [Member] \| Real Estate [Member] \| Represents the member information pertaining to 12% secured loans [Member] \| Alatus Development Corp [Member]
Total Investments, Cost	$ 2,000,000	$ 2,000,000
Total Investments at Fair Value	$ 2,017,583	$ 2,010,374
Total Investments, Percentage of Net Assets	10.16%	10.81%
Consumer \| Represents the member information pertaining to short term banking loans. [Member] \| Represents the member information pertaining to 15% secured loans
Total Investments, Cost	$ 10,000,000	$ 10,000,000
Total Investments at Fair Value	$ 10,037,732	$ 10,069,354
Total Investments, Percentage of Net Assets	50.57%	54.16%
Information Technology [Member] \| Preferred Stock [Member]
Total Investments, Cost	$ 150,000	$ 150,000
Total Investments at Fair Value	$ 0	$ 0
Total Investments, Percentage of Net Assets	0%	0%
Consumer [Member] \| Common Stock [Member]
Total Investments, Cost	$ 3,911	$ 159,302
Total Investments at Fair Value	$ 3,735	$ 47,910
Total Investments, Percentage of Net Assets	0.02%	0.26%
Information Technology [Member] \| Represents the member information pertaining to 15% convertible note [Member]
Total Investments, Cost		$ 212,500
Total Investments at Fair Value		$ 213,501
Total Investments, Percentage of Net Assets		1.15%
Financial Services Information [Member] \| Represents the member information pertaining to other equity securities. [Member]
Total Investments, Cost	$ 494,155	$ 10,000
Total Investments at Fair Value	$ 488,508	$ 10,000
Total Investments, Percentage of Net Assets	2.46%	0.05%
Financial [Member] \| Represents the member information pertaining to short term banking loans. [Member] \| Represents the member information pertaining to 12% secured loans [Member]
Total Investments, Cost	$ 10,000	$ 500,000
Total Investments at Fair Value	$ 0	$ 0
Total Investments, Percentage of Net Assets	0%	0%
Represents the member information pertaining to 15% secured loans. \| Consumer
Total Investments, Cost	$ 500,000
Total Investments at Fair Value	$ 502,375
Total Investments, Percentage of Net Assets	2.53%
Represents the member information pertaining to 23% secured loans. [Member] \| Consumer
Total Investments, Cost	$ 2,000,000	$ 2,900,000
Total Investments at Fair Value	$ 2,003,915	$ 2,906,464
Total Investments, Percentage of Net Assets	10.10%	15.63%
Common Stock [Member]
Total Investments, Cost	$ 498,066
Total Investments at Fair Value	$ 492,243
Total Investments, Percentage of Net Assets	2.48%

ORGANIZATION

ORGANIZATION	9 Months Ended
ORGANIZATION	Sep. 30, 2024
ORGANIZATION
ORGANIZATION	NOTE 1 – ORGANIZATION In this report, we generally refer to Mill City Ventures III, Ltd. in the first person “we.” On occasion, we refer to our company in the third person as “Mill City Ventures” or the “Company.” The Company follows accounting and reporting guidance in Accounting Standards (“ASC”) 946. We were incorporated in Minnesota in January 2006. Until December 13, 2012, we were a development-stage company that focused on promoting and placing a proprietary poker game online and into casinos and entertainment facilities nationwide. In 2013, we elected to become a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). We operated as a BDC until we withdrew our BDC election at the end of December 2019. Since that time, we have remained a public reporting company filing periodic reports with the SEC. We engage in the business of providing short-term specialty finance solutions, typically in the form of short-term loans, primarily to small businesses, both private and public, and high-net-worth individuals. To avoid regulation under the 1940 Act, we generally seek to structure our investments so they do not constitute “securities” for purposes of federal securities laws, and we monitor our investments as a whole to ensure that no more than 40% of our total assets consist of “investment securities” as defined under the 1940 Act.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2024
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Use of estimates: Cash and cash equivalents: Valuation of portfolio investments: Due to the inherent uncertainties of valuation, certain estimated fair values may differ significantly from the values that would have been realized had a ready market for these investments existed, and these differences could be material. In addition, such investments are generally less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. Accounting guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Observable inputs must be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available. Assets and liabilities measured at fair value are to be categorized into one of the three hierarchy levels based on the relative observability of inputs used in the valuation. The three levels are defined as follows: · Level 1: · Level 2: · Level 3: Our valuation policy and procedures The estimated fair value of our Level 3 investment assets is determined on a quarterly basis by our Board of Directors. In general, we value our Level 3 equity investments at cost unless circumstances warrant a different approach. Examples of these circumstances includes a situation in which a portfolio company has engaged in a subsequent financing of more than a de minimis When valuing preferred equity investments, we generally view intrinsic value as a key input. Intrinsic value means the value of any conversion feature (if the preferred investment is convertible) or the value of any liquidation or other preference. Discounts to intrinsic value may be applied in cases where the issuer’s financial condition is impaired or, in cases where intrinsic value relating to a conversion is determined to be a key input, to account for resale restrictions applicable to the securities issuable upon conversion. When valuing warrants, our valuation policy and procedures indicate that value will generally be the difference between the closing price of the underlying equity security and the exercise price, after applying an appropriate discount for restriction, if applicable, in situations where the underlying security is marketable. If the underlying security is not marketable, then intrinsic value will be considered consistent with the principles described above. Generally, “out-of-the-money” warrants will be valued at cost or zero. For non-traded (Level 3) debt instruments with a residual maturity less than or equal to 60 days, we will generally value such instruments based on a discounted cash flows approach, considering the straight-line amortized face value of the debt unless justification for impairment exists. For level 3 non-banking loans with a maturity in excess of 60 days, fair value is determined based on the initial purchase price and adjusted as necessary to reflect any changes in the financial strength of the creditor and changes in interest rates in the high-yield credit markets. On a quarterly basis, our management provides members of our Board of Directors with recommendations, if any, to change any existing valuations of our portfolio investments or hierarchy levels for purposes of determining the fair value of such investments based upon the foregoing. In such a case, the Board of Directors would then discuss these materials and, consistent with the policies and approaches outlined above, makes final determinations respecting the valuation and hierarchy levels of our portfolio investments. We made no changes to our valuation policy and procedures during the reporting period. Income taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine we would be able to realize our deferred income tax assets in the future in excess of their recorded amount, we would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. We file income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. We do not believe there will be any material changes in our unrecognized tax positions over the next 12 months. Our evaluation was performed for the tax years ended December 31, 2020 through 2023, which are the tax years that remain subject to examination by major tax jurisdictions as of September 30, 2024. Revenue recognition Interest income, adjusted for amortization of premiums and accretion of discounts, is recorded on an accrual basis. Discounts from and premiums to par value on securities purchased are accreted or amortized, as applicable, into interest income over the life of the related security using the effective-yield method. The amortized cost of investments represents the original cost, adjusted for the accretion of discounts and amortization of premiums, if any. Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more, or when there is reasonable doubt that principal or interest will be collected in full. Loan origination fees are recognized when loans are issued. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past-due principal and interest is paid and, in management’s judgment, are likely to remain current. We may make exceptions to the policy described above if a loan has sufficient collateral value and is in the process of collection. Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Certain investments may have contractual payment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or stated value of the investment on the respective interest- or dividend-payment dates rather than being paid in cash, and generally becomes due at maturity or upon being repurchased by the issuer. PIK interest or dividends is recorded as interest or dividend income, as applicable. If at any point we believe that PIK interest or dividends is not expected be realized, the PIK-generating investment will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status. Allocation of net gains and losses: Stock-based compensation: Management and service fees: We do not incur expenses related to management and service fees. Our executive management team manages our investments as part of their employment responsibilities.

INVESTMENTS

INVESTMENTS	9 Months Ended
INVESTMENTS	Sep. 30, 2024
INVESTMENTS
INVESTMENTS	NOTE 3 – INVESTMENTS The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of September 30, 2024 (together with the corresponding percentage of the fair value of our total portfolio of investments): As of September 30, 2024 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 15,650,000 90.9 % $ 15,715,822 97.0 % Preferred Stock 1,050,000 6.1 — — Common Stock 498,066 2.9 492,243 3.0 Other Equity 10,000 0.1 — — Total $ 17,208,066 100.0 % $ 16,208,065 100.0 % The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of December 31, 2023 (together with the corresponding percentage of the fair value of our total investments): As of December 31, 2023 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 17,357,500 93.4 % $ 16,961,766 98.1 % Preferred Stock 1,050,000 5.6 265,000 1.5 Common Stock 159,302 0.9 47,910 0.3 Warrants 679 — — — Other Equity 10,000 0.1 10,000 0.1 Total $ 18,577,481 100.0 % $ 17,284,676 100.0 % The following table shows the composition of our investment portfolio by industry grouping, based on fair value as of September 30, 2024: As of September 30, 2024 Investments at Fair Value Percentage of Fair Value Business Services $ 10,037,732 61.9 % Consumer 2,510,025 15.5 Financial 488,508 3.0 Information Technology — — Real Estate 3,171,800 19.6 Total $ 16,208,065 100.0 % The following table shows the composition of our investment portfolio by industry grouping, based on fair value as of December 31, 2023: As of December 31, 2023 Investments at Fair Value Percentage of Fair Value Business Services $ 10,069,354 58.3 % Consumer 3,219,374 18.6 Financial 10,000 0.1 Information Technology 213,501 1.2 Real Estate 3,772,447 21.8 Total $ 17,284,676 100.0 %

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Sep. 30, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS Level 3 valuation information The following table presents the fair value measurements of our portfolio investments by major class, as of September 30, 2024, according to the fair value hierarchy: As of September 30, 2024 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ — $ — $ 15,715,822 $ 15,715,822 Preferred Stock — — — — Common Stock 492,243 — — 492,243 Other Equity — — — — Total $ 492,243 $ — $ 15,715,822 $ 16,208,065 The following table presents the fair value measurements of our investment portfolio by major class, as of December 31, 2023, according to the fair value hierarchy: As of December 31, 2023 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ — $ — $ 16,961,766 $ 16,961,766 Preferred Stock — — 265,000 265,000 Common Stock 47,910 — — 47,910 Other Equity — — 10,000 10,000 Total $ 47,910 $ — $ 17,236,766 $ 17,284,676 The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the nine months ended September 30, 2024: For the nine months ended September 30, 2024 ST Non- banking Loans Preferred Stock Other Equity Balance as of January 1, 2024 $ 16,961,766 $ 265,000 $ 10,000 Net change in unrealized appreciation 461,556 (265,000 ) (10,000 ) Purchases and other adjustments to cost 4,123,438 — — Sales and redemptions (5,570,000 ) — — Net realized loss (100,000 ) — — Transfers out of level 3 (160,938 ) — — Balance as of September 30, 2024 $ 15,715,822 $ — $ — The net change in unrealized depreciation for the nine months ended September 30, 2024 attributable to Level 3 portfolio investments still held as of September 30, 2024 is $209,178. The following table lists our Level 3 investments held as of September 30, 2024 and the unobservable inputs used to determine their valuation: Security Type 9/30/24 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 15,715,822 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-36 % Other Equity — last secured funding known by company economic changes since last funding Preferred Stock — last funding secured by company economic changes since last funding $ 15,715,822 The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the year ended December 31, 2023: For the year ended December 31, 2023 ST Non- banking Loans Preferred Stock Other Equity Balance as of January 1, 2023 $ 15,285,932 $ 1,200,000 $ 222,500 Net change in unrealized depreciation (195,041 ) (935,000 ) 600,000 Purchases and other adjustments to cost 12,900,500 — — Realized gain (loss) — — (600,000 ) Transfers between level 3 and level 1 (11,029,625 ) — (212,500 ) Balance as of December 31, 2023 $ 16,961,766 $ 265,000 $ 10,000 The net change in unrealized depreciation for the year ended December 31, 2023 attributable to Level 3 portfolio investments still held as of December 31, 2023 was $1,126.877. The following table lists our Level 3 investments held as of December 31, 2023 and the unobservable inputs used to determine their valuation: Security Type 12/31/23 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 16,961,766 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-23 % Other Equity 10,000 last secured funding known by company Preferred Stock 265,000 last funding secured by company economic changes since last funding $ 17,236,766

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	9 Months Ended
RELATED-PARTY TRANSACTIONS	Sep. 30, 2024
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 5 – RELATED-PARTY TRANSACTIONS We maintain a conflicts of interest and related-party transactions policy requiring (i) certain disclosures be made to our Board of Directors in relation to situations where officers, directors, significant shareholders, or any of their affiliates may enter into transactions with us, and (ii) certain disclosures appear in the reports we prepare and file with the SEC. In this regard, during the period covered by this report we entered into, or remained a party to, the following related-party transactions: · We held a promissory note with two shareholders in the principal amount of $250,000. The promissory note bore interest payable monthly at the rate of 10% per annum. The note was secured by the debtors’ pledge to us of 277,778 shares of common stock. The note was paid in full including all accrued interest on September 26, 2024. · As disclosed in Note 7, a component of our now terminated loan agreement is with a director of our Company.

INCOME TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2024
INCOME TAXES
INCOME TAXES	NOTE 6 – INCOME TAXES We are a C-Corporation for tax purposes and have booked an income tax provision for the periods described below. Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate. As of September 30, 2024 and December 31, 2023, we have a deferred tax asset of $779,000 and $757,000, respectively. As of September 30, 2024, our net deferred tax asset consists of foreign tax credit carryforwards, unrealized investment gain/loss, non-qualified stock option expenses, acquisition costs, depreciable assets, and right of use assets. Our determination of the realizable deferred tax assets and liabilities requires the exercise of significant judgment, based in part on business plans and expectations about future outcomes. As of September 30, 2024 and December 31, 2023 we had accrued income taxes of $310,100 and prepaid income taxes $131,500, respectively. We recorded a provision for income taxes of $426,000 (27 percent effective tax rate) and a benefit from income taxes of $38,000 (27 percent effective tax rate) during the nine months ended September 30, 2024 and September 30, 2023, respectively.

LINE OF CREDIT

LINE OF CREDIT	9 Months Ended
LINE OF CREDIT	Sep. 30, 2024
LINE OF CREDIT
LINE OF CREDIT	NOTE 7 – LINE OF CREDIT The Company had a Loan and Security Agreement (the “Loan Agreement”) with a third party and director (collectively, the Lenders). Under the Loan Agreement, the Lenders made available to us a $5 million revolving line of credit for us to use in the ordinary course of our short-term specialty finance business, of which our director was required to fund one half of the amount. Amounts drawn under the Loan Agreement accrue interest at the per annum rate of 8%, through January 3, 2027, subject to early termination provisions at the Lender’s right at any time after January 3, 2023. Our obligations under the Loan Agreement were secured by a grant of a collateral security interest in substantially all of our assets. At December 31, 2023, the balance outstanding on the line was $0. In January 2024, we terminated the Loan Agreement. Any applicable fees related to early termination of the Agreement were waived.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
STOCK-BASED COMPENSATION	Sep. 30, 2024
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 8 – STOCK-BASED COMPENSATION Our 2022 Stock Incentive Plan authorized the issuance of incentives relating to 900,000 shares of common stock. As of September 30, 2024, incentives relating to the issuance of 870,000 shares have been issued under the Plan, leaving 30,000 shares available for issuance. The following table summarizes the activity for all stock options outstanding for the nine months ended September 30, 2024: Shares Weighted Average Exercise Price Options outstanding at beginning of year 670,000 $ 2.11 Granted — — Exercised — — Forfeited — — Balance at September 30, 2024 670,000 $ 2.11 Options exercisable at September 30: 670,000 $ 2.11 The following table summarizes additional information about stock options outstanding and exercisable at September 30, 2024: Options Outstanding Options Exercisable Options Outstanding Weighted Average R emaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Options Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value 670,000 8.17 $ 2.11 $ 96,900 670,000 $ 2.11 $ 96,900 We recognized stock-based compensation expense for stock options of $0 and $1,460,209 for the nine months ended September 30, 2024 and 2023, respectively.

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	9 Months Ended
SHAREHOLDERS EQUITY	Sep. 30, 2024
SHAREHOLDERS EQUITY
SHAREHOLDERS' EQUITY	NOTE 9 – SHAREHOLDERS’ EQUITY At September 30, 2024, we had 6,385,255 shares of common stock issued and outstanding. In connection with the 2022 public offering, we issued a five-year warrant to the underwriter. The warrant allows the underwriter to purchase up to 75,000 common shares at $5.00 per share. This warrant is exercisable after 180 days, and expires on August 8, 2027. This warrant is equity-classified and the fair value was $201,173 on the offering date.

PER SHARE INFORMATION

PER SHARE INFORMATION	9 Months Ended
PER SHARE INFORMATION	Sep. 30, 2024
PER SHARE INFORMATION
PER-SHARE INFORMATION	NOTE 10 – PER-SHARE INFORMATION Basic net gain (loss) per common share is computed by dividing net increase in net assets resulting from operations by the weighted-average number of common shares outstanding during the period. Diluted net gain (loss) per common share is computed by dividing net increase in net assets resulting from operations by the weighted-average number of dilutive common shares outstanding during the period calculated using the Treasury Stock method. The Treasury Stock method assumes that the proceeds received upon exercise of stock options are used to repurchase stock at the average market price during the period, thereby increasing the number of shares to be added in computing diluted earnings per share. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net gain (loss) per common share is set forth below: For the Three Months Ended September 30, 2024 2023 Basic Diluted Basic Diluted Numerator: Net increase in net assets resulting from operations $ 463,783 $ 463,783 $ 369,560 $ 369,560 Denominator: Weighted-average number of common shares outstanding 6,385,255 6,501,823 6,241,777 6,358,345 Basic and diluted net gain per common share $ 0.07 $ 0.07 $ 0.06 $ 0.06 For the Nine Months Ended September 30, 2024 2023 Basic Diluted Basic Diluted Numerator: Net increase (decrease) in net assets resulting from operations $ 1,258,822 $ 1,258,822 $ (277,763 ) $ (277,763 ) Denominator: Weighted-average number of common shares outstanding 6,385,255 6,501,823 6,204,303 6,204,303 Basic and diluted net gain (loss) per common share $ 0.20 $ 0.19 $ (0.04 ) $ (0.04 )

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS	9 Months Ended
FINANCIAL HIGHLIGHTS	Sep. 30, 2024
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS	NOTE 11 – FINANCIAL HIGHLIGHTS The following is a schedule of financial highlights for the nine months ended September 30, 2024 through 2020: Nine Months Ended September 30, 2024 2023 2022 2021 2020 Per Share Data (1) Net asset value at beginning of period $ 2.91 2.89 2.80 2.43 2.05 Net investment income (loss) 0.20 (0.06 ) 0.18 0.20 0.05 Net realized and unrealized gains (losses) 0.07 0.01 0.02 0.54 0.14 Provision for (benefit from) income taxes (0.07 ) 0.01 (0.05 ) (0.20 ) 0.00 Issuance of stock options 0.00 0.24 0.00 0.00 0.00 Issuance of common stock 0.00 0.05 0.00 0.00 0.00 Stock-based compensation 0.00 0.00 0.05 0.00 0.00 Repurchase of common stock 0.00 0.00 0.00 0.00 0.05 Other changes in equity 0.00 (0.09 ) 0.02 0.00 0.00 Payment of common stock dividend 0.00 0.00 0.00 (0.23 ) 0.00 Net asset value at end of period $ 3.11 3.05 3.02 2.74 2.29 Ratio / Supplemental Data Per share market value of investments at end of period $ 2.54 2.75 2.92 2.30 1.71 Shares outstanding at end of period 6,385,255 6,385,255 6,185,255 4,795,739 4,754,104 Average weighted shares outstanding for the period - basic 6,385,255 6,204,303 5,045,830 4,795,075 4,836,170 Average weighted shares outstanding for the period - diluted 6,501,823 6,320,871 5,045,830 4,795,075 4,836,170 Net assets at end of period $ 19,849,085 — 18,658,595 13,140,835 10,805,062 Average net assets (2) $ 19,199,254 18,661,934 15,081,352 13,090,497 10,220,482 Total investment return (loss) 6.87 % (2.76 )% 6.07 % 22.22 % 8.79 % Portfolio turnover rate (3) 26.60 % 59.61 % 66.81 % 124.55 % 18.18 % Ratio of operating expenses to average net assets (3) (8.12 )% (20.10 )% (19.24 )% (10.31 )% (6.49 )% Ratio of net investment income (loss) to average net assets (3) 8.82 % (2.76 )% 10.09 % 9.87 % 3.35 % Ratio of realized gains (losses) to average net assets (3) 0.97 % (3.98 )% 1.18 % 40.81 % 7.06 % (1) Per-share data was derived using the ending number of shares outstanding for the period. (2) Based on the monthly average of net assets as of the beginning and end of each period presented. (3) Ratios are annualized.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2024
SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation
Use of estimates	Use of estimates:
Cash and cash equivalents	Cash and cash equivalents:
Valuation of portfolio investments	Valuation of portfolio investments: Due to the inherent uncertainties of valuation, certain estimated fair values may differ significantly from the values that would have been realized had a ready market for these investments existed, and these differences could be material. In addition, such investments are generally less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. Accounting guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Observable inputs must be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available. Assets and liabilities measured at fair value are to be categorized into one of the three hierarchy levels based on the relative observability of inputs used in the valuation. The three levels are defined as follows: · Level 1: · Level 2: · Level 3:
Our valuation policy and procedures	Our valuation policy and procedures The estimated fair value of our Level 3 investment assets is determined on a quarterly basis by our Board of Directors. In general, we value our Level 3 equity investments at cost unless circumstances warrant a different approach. Examples of these circumstances includes a situation in which a portfolio company has engaged in a subsequent financing of more than a de minimis When valuing preferred equity investments, we generally view intrinsic value as a key input. Intrinsic value means the value of any conversion feature (if the preferred investment is convertible) or the value of any liquidation or other preference. Discounts to intrinsic value may be applied in cases where the issuer’s financial condition is impaired or, in cases where intrinsic value relating to a conversion is determined to be a key input, to account for resale restrictions applicable to the securities issuable upon conversion. When valuing warrants, our valuation policy and procedures indicate that value will generally be the difference between the closing price of the underlying equity security and the exercise price, after applying an appropriate discount for restriction, if applicable, in situations where the underlying security is marketable. If the underlying security is not marketable, then intrinsic value will be considered consistent with the principles described above. Generally, “out-of-the-money” warrants will be valued at cost or zero. For non-traded (Level 3) debt instruments with a residual maturity less than or equal to 60 days, we will generally value such instruments based on a discounted cash flows approach, considering the straight-line amortized face value of the debt unless justification for impairment exists. For level 3 non-banking loans with a maturity in excess of 60 days, fair value is determined based on the initial purchase price and adjusted as necessary to reflect any changes in the financial strength of the creditor and changes in interest rates in the high-yield credit markets. On a quarterly basis, our management provides members of our Board of Directors with recommendations, if any, to change any existing valuations of our portfolio investments or hierarchy levels for purposes of determining the fair value of such investments based upon the foregoing. In such a case, the Board of Directors would then discuss these materials and, consistent with the policies and approaches outlined above, makes final determinations respecting the valuation and hierarchy levels of our portfolio investments. We made no changes to our valuation policy and procedures during the reporting period.
Income taxes	We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine we would be able to realize our deferred income tax assets in the future in excess of their recorded amount, we would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. We file income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. We do not believe there will be any material changes in our unrecognized tax positions over the next 12 months. Our evaluation was performed for the tax years ended December 31, 2020 through 2023, which are the tax years that remain subject to examination by major tax jurisdictions as of September 30, 2024.
Revenue recognition	Interest income, adjusted for amortization of premiums and accretion of discounts, is recorded on an accrual basis. Discounts from and premiums to par value on securities purchased are accreted or amortized, as applicable, into interest income over the life of the related security using the effective-yield method. The amortized cost of investments represents the original cost, adjusted for the accretion of discounts and amortization of premiums, if any. Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more, or when there is reasonable doubt that principal or interest will be collected in full. Loan origination fees are recognized when loans are issued. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past-due principal and interest is paid and, in management’s judgment, are likely to remain current. We may make exceptions to the policy described above if a loan has sufficient collateral value and is in the process of collection. Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Certain investments may have contractual payment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or stated value of the investment on the respective interest- or dividend-payment dates rather than being paid in cash, and generally becomes due at maturity or upon being repurchased by the issuer. PIK interest or dividends is recorded as interest or dividend income, as applicable. If at any point we believe that PIK interest or dividends is not expected be realized, the PIK-generating investment will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status.
Allocation of net gains and losses	Allocation of net gains and losses:
Stock-based compensation	Stock-based compensation:
Management and service fees	We do not incur expenses related to management and service fees. Our executive management team manages our investments as part of their employment responsibilities.

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
INVESTMENTS (Tables)	Sep. 30, 2024
INVESTMENTS
Schedule of investments by major class, at amortized cost and fair value	As of September 30, 2024 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 15,650,000 90.9 % $ 15,715,822 97.0 % Preferred Stock 1,050,000 6.1 — — Common Stock 498,066 2.9 492,243 3.0 Other Equity 10,000 0.1 — — Total $ 17,208,066 100.0 % $ 16,208,065 100.0 % As of December 31, 2023 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 17,357,500 93.4 % $ 16,961,766 98.1 % Preferred Stock 1,050,000 5.6 265,000 1.5 Common Stock 159,302 0.9 47,910 0.3 Warrants 679 — — — Other Equity 10,000 0.1 10,000 0.1 Total $ 18,577,481 100.0 % $ 17,284,676 100.0 %
Schedule of investments by industry grouping, based on fair value	As of September 30, 2024 Investments at Fair Value Percentage of Fair Value Business Services $ 10,037,732 61.9 % Consumer 2,510,025 15.5 Financial 488,508 3.0 Information Technology — — Real Estate 3,171,800 19.6 Total $ 16,208,065 100.0 % As of December 31, 2023 Investments at Fair Value Percentage of Fair Value Business Services $ 10,069,354 58.3 % Consumer 3,219,374 18.6 Financial 10,000 0.1 Information Technology 213,501 1.2 Real Estate 3,772,447 21.8 Total $ 17,284,676 100.0 %

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2024
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of fair value measurements of our investments by major class according to the fair value hierarchy	As of September 30, 2024 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ — $ — $ 15,715,822 $ 15,715,822 Preferred Stock — — — — Common Stock 492,243 — — 492,243 Other Equity — — — — Total $ 492,243 $ — $ 15,715,822 $ 16,208,065 As of December 31, 2023 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ — $ — $ 16,961,766 $ 16,961,766 Preferred Stock — — 265,000 265,000 Common Stock 47,910 — — 47,910 Other Equity — — 10,000 10,000 Total $ 47,910 $ — $ 17,236,766 $ 17,284,676
Schedule of reconciliation of the beginning and ending fair value balances for our Level 3 investment assets	For the nine months ended September 30, 2024 ST Non- banking Loans Preferred Stock Other Equity Balance as of January 1, 2024 $ 16,961,766 $ 265,000 $ 10,000 Net change in unrealized appreciation 461,556 (265,000 ) (10,000 ) Purchases and other adjustments to cost 4,123,438 — — Sales and redemptions (5,570,000 ) — — Net realized loss (100,000 ) — — Transfers out of level 3 (160,938 ) — — Balance as of September 30, 2024 $ 15,715,822 $ — $ — For the year ended December 31, 2023 ST Non- banking Loans Preferred Stock Other Equity Balance as of January 1, 2023 $ 15,285,932 $ 1,200,000 $ 222,500 Net change in unrealized depreciation (195,041 ) (935,000 ) 600,000 Purchases and other adjustments to cost 12,900,500 — — Realized gain (loss) — — (600,000 ) Transfers between level 3 and level 1 (11,029,625 ) — (212,500 ) Balance as of December 31, 2023 $ 16,961,766 $ 265,000 $ 10,000
Schedule of Level 3 investments held and the unobservable inputs used to determine their valuation	Security Type 9/30/24 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 15,715,822 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-36 % Other Equity — last secured funding known by company economic changes since last funding Preferred Stock — last funding secured by company economic changes since last funding $ 15,715,822 Security Type 12/31/23 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 16,961,766 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-23 % Other Equity 10,000 last secured funding known by company Preferred Stock 265,000 last funding secured by company economic changes since last funding $ 17,236,766

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
STOCK-BASED COMPENSATION (Tables)	Sep. 30, 2024
STOCK-BASED COMPENSATION
Schedule of stock options activity	Shares Weighted Average Exercise Price Options outstanding at beginning of year 670,000 $ 2.11 Granted — — Exercised — — Forfeited — — Balance at September 30, 2024 670,000 $ 2.11 Options exercisable at September 30: 670,000 $ 2.11
Schedule of stock options outstanding and exercisable	Options Outstanding Options Exercisable Options Outstanding Weighted Average R emaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Options Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value 670,000 8.17 $ 2.11 $ 96,900 670,000 $ 2.11 $ 96,900

PER SHARE INFORMATION (Tables)

PER SHARE INFORMATION (Tables)	9 Months Ended
PER SHARE INFORMATION (Tables)	Sep. 30, 2024
PER SHARE INFORMATION
Summary of reconciliation of the numerator and denominator used in the calculation of basic and diluted net gain (loss) per common share	For the Three Months Ended September 30, 2024 2023 Basic Diluted Basic Diluted Numerator: Net increase in net assets resulting from operations $ 463,783 $ 463,783 $ 369,560 $ 369,560 Denominator: Weighted-average number of common shares outstanding 6,385,255 6,501,823 6,241,777 6,358,345 Basic and diluted net gain per common share $ 0.07 $ 0.07 $ 0.06 $ 0.06 For the Nine Months Ended September 30, 2024 2023 Basic Diluted Basic Diluted Numerator: Net increase (decrease) in net assets resulting from operations $ 1,258,822 $ 1,258,822 $ (277,763 ) $ (277,763 ) Denominator: Weighted-average number of common shares outstanding 6,385,255 6,501,823 6,204,303 6,204,303 Basic and diluted net gain (loss) per common share $ 0.20 $ 0.19 $ (0.04 ) $ (0.04 )

FINANCIAL HIGHLIGHTS (Tables)

FINANCIAL HIGHLIGHTS (Tables)	9 Months Ended
FINANCIAL HIGHLIGHTS (Tables)	Sep. 30, 2024
FINANCIAL HIGHLIGHTS
Schedule of financial highlights	Nine Months Ended September 30, 2024 2023 2022 2021 2020 Per Share Data (1) Net asset value at beginning of period $ 2.91 2.89 2.80 2.43 2.05 Net investment income (loss) 0.20 (0.06 ) 0.18 0.20 0.05 Net realized and unrealized gains (losses) 0.07 0.01 0.02 0.54 0.14 Provision for (benefit from) income taxes (0.07 ) 0.01 (0.05 ) (0.20 ) 0.00 Issuance of stock options 0.00 0.24 0.00 0.00 0.00 Issuance of common stock 0.00 0.05 0.00 0.00 0.00 Stock-based compensation 0.00 0.00 0.05 0.00 0.00 Repurchase of common stock 0.00 0.00 0.00 0.00 0.05 Other changes in equity 0.00 (0.09 ) 0.02 0.00 0.00 Payment of common stock dividend 0.00 0.00 0.00 (0.23 ) 0.00 Net asset value at end of period $ 3.11 3.05 3.02 2.74 2.29 Ratio / Supplemental Data Per share market value of investments at end of period $ 2.54 2.75 2.92 2.30 1.71 Shares outstanding at end of period 6,385,255 6,385,255 6,185,255 4,795,739 4,754,104 Average weighted shares outstanding for the period - basic 6,385,255 6,204,303 5,045,830 4,795,075 4,836,170 Average weighted shares outstanding for the period - diluted 6,501,823 6,320,871 5,045,830 4,795,075 4,836,170 Net assets at end of period $ 19,849,085 — 18,658,595 13,140,835 10,805,062 Average net assets (2) $ 19,199,254 18,661,934 15,081,352 13,090,497 10,220,482 Total investment return (loss) 6.87 % (2.76 )% 6.07 % 22.22 % 8.79 % Portfolio turnover rate (3) 26.60 % 59.61 % 66.81 % 124.55 % 18.18 % Ratio of operating expenses to average net assets (3) (8.12 )% (20.10 )% (19.24 )% (10.31 )% (6.49 )% Ratio of net investment income (loss) to average net assets (3) 8.82 % (2.76 )% 10.09 % 9.87 % 3.35 % Ratio of realized gains (losses) to average net assets (3) 0.97 % (3.98 )% 1.18 % 40.81 % 7.06 %

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative)	9 Months Ended
ORGANIZATION (Details Narrative)	Sep. 30, 2024
ORGANIZATION
Maximuum percentage total assets of investment securities	40%

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($)	9 Months Ended	12 Months Ended
INVESTMENTS (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Investment at fair value	$ 16,208,065	$ 17,284,676
Percentage of fair value	100%	100%
Preferreds Stock [Member]
Investments at amortized cost	$ 1,050,000	$ 1,050,000
Percentage of amortized cost	6.10%	5.60%
Investment at fair value	$ 0	$ 265,000
Percentage of fair value	0%	1.50%
Warrants [Member]
Investments at amortized cost		$ 679
Percentage of amortized cost		0%
Investment at fair value		$ 0
Percentage of fair value		0%
Other Equity [Member]
Investments at amortized cost	$ 10,000	$ 10,000
Percentage of amortized cost	0.10%	0.10%
Investment at fair value	$ 0	$ 10,000
Percentage of fair value	0%	0.10%
Common Stocks [Member]
Investments at amortized cost	$ 498,066	$ 159,302
Percentage of amortized cost	2.90%	0.90%
Investment at fair value	$ 492,243	$ 47,910
Percentage of fair value	3%	0.30%
Short Term Loan Non Banking [Member]
Investments at amortized cost	$ 17,208,066	$ 17,357,500
Percentage of amortized cost	90.90%	93.40%
Investment at fair value	$ 16,208,065	$ 17,284,676
Percentage of fair value	97%	98.10%

INVESTMENTS (Details 1)

INVESTMENTS (Details 1) - USD ($)	9 Months Ended	12 Months Ended
INVESTMENTS (Details 1) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Percentage of fair value	100%	100%
Investment at fair value	$ 16,208,065	$ 17,284,676
Business Services [Member]
Percentage of fair value	61.90%	58.30%
Investment at fair value	$ 10,037,732	$ 10,069,354
Consumer [Member]
Percentage of fair value	15.50%	18.60%
Investment at fair value	$ 2,510,025	$ 3,219,374
Real Estate [Member]
Percentage of fair value	19.60%	21.80%
Investment at fair value	$ 3,171,800	$ 3,772,447
Financial [Member]
Percentage of fair value	3%	0.10%
Investment at fair value	$ 488,508	$ 10,000
Information Technology Sectors [Member]
Percentage of fair value	0%	1.20%
Investment at fair value	$ 0	$ 213,501

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Short-term Non-banking Loans	$ 15,715,822	$ 16,961,766
Preferred stock		265,000
Common Stock	492,243	47,910
Other Equity	0	10,000
Total	16,208,065	17,284,676
Level 1 [Member]
Short-term Non-banking Loans	0	0
Preferred stock	0	0
Common Stock	492,243	47,910
Other Equity	0	0
Total	492,243	47,910
Level 2 [Member]
Short-term Non-banking Loans	0	0
Preferred stock	0	0
Common Stock	0	0
Other Equity	0	0
Total	0	0
Level 3 [Member]
Short-term Non-banking Loans	15,715,822	16,961,766
Preferred stock	0	265,000
Common Stock	0	0
Other Equity	0	10,000
Total	$ 15,715,822	$ 17,236,766

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($)	9 Months Ended	12 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Preferreds Stock [Member]
Balance at the beginning balance	$ 265,000	$ 1,200,000
Net change in unrealized appreciation	265,000	935,000
Net change in unrealized appreciation	(265,000)	(935,000)
Purchases and other adjustments to cost	0	0
Sales and redemptions	0
Transfers out of level 3 and level 1	0	0
Balance at the ending balance	0	265,000
Realized gain (loss)	0	0
Other Equity Securities [Member]
Balance at the beginning balance	10,000	222,500
Net change in unrealized appreciation	10,000	600,000
Net change in unrealized appreciation	(10,000)	(600,000)
Purchases and other adjustments to cost	0	0
Sales and redemptions	0
Transfers out of level 3 and level 1	0	(212,500)
Balance at the ending balance	0	10,000
Realized gain (loss)	0	(600,000)
Short Term Non Banking Loans [Member]
Balance at the beginning balance	16,961,766	15,285,932
Net change in unrealized appreciation	461,556	(195,041)
Net change in unrealized appreciation	(461,556)	195,041
Purchases and other adjustments to cost	4,123,438	12,900,500
Sales and redemptions	(5,570,000)
Transfers out of level 3 and level 1	(160,938)	(11,029,625)
Balance at the ending balance	15,715,822	16,961,766
Realized gain (loss)	$ (100,000)	$ 0

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2)	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Investment at fair value	$ 16,208,065	$ 17,284,676
Preferred Stock [Member]
Investment at fair value	0	265,000
Other Equity Securities [Member]
Investment at fair value	0	10,000
Short Term Non Banking Loans [Member]
Investment at fair value	$ 15,715,822	$ 16,961,766
Short Term Non Banking Loans [Member] \| Minimum [Member] \| Interest rate \| Level 3 [Member]
Interest rate	12	12
Short Term Non Banking Loans [Member] \| Maximum [Member] \| Interest rate \| Level 3 [Member]
Interest rate	36	23
Total Lable [Member]
Investment at fair value	$ 15,715,822	$ 17,236,766

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative)	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative)	Sep. 30, 2024 USD ($)
Attributable To Level 3 Portfolio Investment [Member]
Net change in unrealized depreciation	$ 209,178

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	Sep. 30, 2024 USD ($) shares
RELATED-PARTY TRANSACTIONS
Interest payable monthly (as a percent)	10%
Debtors' pledge in number of common stock \| shares	277,778
Principal amount of note obtained \| $	$ 250,000

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	9 Months Ended
INCOME TAXES (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
INCOME TAXES
Deferred tax assets	$ 779,000		$ 757,000
Provision for income taxes	$ 426,000	$ 38,000
Effective Income Tax Rate Reconciliation, Percent	27%	27%
Prepaid income taxes	$ 310,100		$ 131,500

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	Dec. 31, 2023	Jan. 03, 2022
Revolving line of credit [Member] \| This member stands for Eastman Investment, Inc. [Member] \| Represents information pertaining to the loan and security agreement. [Member]
Interest rate at per annum		8%
Director [Member]
Line of credit facility maximum borrowing capacity		$ 5,000,000
Line of Credit [Member]
Balance outstanding line of credit	$ 0

STOCKBASED COMPENSATION (Detail

STOCKBASED COMPENSATION (Details)	9 Months Ended
STOCKBASED COMPENSATION (Details)	Sep. 30, 2024 $ / shares shares
STOCKBASED COMPENSATION (Details)
Shares, Options outstanding at beginning of year \| shares	670,000
Shares, Options outstanding Granted \| shares	0
Shares, Options outstanding Exercised \| shares	0
Shares, Options outstanding Forfeited \| shares	0
Shares, Options outstanding at end of year \| shares	670,000
Shares, Options exercisable at end of year \| shares	670,000
Weighted Average Exercise Price, Options outstanding at beginning of year \| $ / shares	$ 2.11
Weighted Average Exercise Price, Granted \| $ / shares	0
Weighted Average Exercise Price, Exercised \| $ / shares	0
Weighted Average Exercise Price, Forfeited \| $ / shares	0
Weighted Average Exercise Price, Options outstanding at end of year \| $ / shares	2.11
Weighted Average Exercise Price, Options exercisable at end of year \| $ / shares	$ 2.11

STOCKBASED COMPENSATION (Deta_2

STOCKBASED COMPENSATION (Details 1) - USD ($)	9 Months Ended
STOCKBASED COMPENSATION (Details 1) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Options Outstanding	670,000	670,000
Options Outstanding, Weighted Average Exercise Price	$ 2.11	$ 2.11
Options Exercisable	670,000
Options Exercisable, Weighted Average Exercise Price	$ 2.11
Options [Member]
Options Outstanding	670,000
Options Outstanding, Weighted Average Exercise Price	$ 2.11
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 2 months 1 day
Options Outstanding, Aggregate Intrinsic Value	$ 96,900
Options Exercisable	670,000
Options Exercisable, Weighted Average Exercise Price	$ 2.11
Options Exercisable, Aggregate Intrinsic Value	$ 96,900

STOCKBASED COMPENSATION (Deta_3

STOCKBASED COMPENSATION (Details Narrative) - USD ($)	9 Months Ended
STOCKBASED COMPENSATION (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Stock-based compensation expense	$ 0	$ 1,460,209
Authorized shares of common stock	111,111,111		111,111,111
2022 Stock Incentive Plan [Member]
Authorized shares of common stock	900,000
Shares issued	870,000
Leaving shares available for issuance	30,000

SHAREHOLDERS EQUITY (Details Na

SHAREHOLDERS EQUITY (Details Narrative) - USD ($)	9 Months Ended
SHAREHOLDERS EQUITY (Details Narrative) - USD ($)	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
SHAREHOLDERS EQUITY
Warrants Description	The warrant allows the underwriter to purchase up to 75,000 common shares at $5.00 per share. This warrant is exercisable after 180 days, and expires on August 8, 2027
Fair value of warrant	$ 201,173
Common stock, shares outstanding	6,385,255	6,385,255	6,385,255	6,185,255	4,795,739	4,754,104
Common stock, shares issued	6,385,255

PER-SHARE INFORMATION (Details)

PER-SHARE INFORMATION (Details) - USD ($)	3 Months Ended		9 Months Ended
PER-SHARE INFORMATION (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Denominator: Weighted-average number of common shares outstanding, diluted	6,501,823	6,358,345	6,501,823	6,204,303
Denominator: Weighted-average number of common shares outstanding, basic	6,385,255	6,241,777	6,385,255	6,204,303
Basic and diluted net gain per common share	$ 0.07	$ 0.06	$ 0.20	$ (0.04)
Basic [Member]
Numerator: Net increase in net assets resulting from operations	$ 463,783	$ 369,560	$ 1,258,822	$ (277,763)
Denominator: Weighted-average number of common shares outstanding, basic	6,385,255	6,241,777	6,385,255	6,204,303
Basic and diluted net gain per common share	$ 0.07	$ 0.06	$ 0.20	$ (0.04)
Diluted [Member]
Numerator: Net increase in net assets resulting from operations	$ 463,783	$ 369,560	$ 1,258,822	$ (277,763)
Denominator: Weighted-average number of common shares outstanding, diluted	6,501,823	6,358,345	6,501,823	6,204,303
Basic and diluted net gain per common share	$ 0.07	$ 0.06	$ 0.19	$ (0.04)

FINANCIAL HIGHLIGHTS (Details)

FINANCIAL HIGHLIGHTS (Details) - USD ($)	9 Months Ended
FINANCIAL HIGHLIGHTS (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Per Share Data
Net asset value at beginning of period	$ 2.91	$ 2.89	$ 2.80	$ 2.43	$ 2.05
Net investment income (loss)	0.20	(0.06)	0.18	0.20	0.05
Net realized and unrealized gains(losses)	0.07	0.01	0.02	0.54	0.14
Provision for income taxes	(0.07)	0.01	(0.05)	(0.20)	0
Issuance of stock options	0	0.24	0	0	0
Issuance of common stock	0	0.05	0	0	0
Stock-based compensation	0	0	0.05	0	0
Repurchase of common stock	0	0	0	0	0.05
Other change in equity	0	(0.09)	0.02	0	0
Payment of common stock dividend	0	0	0	(0.23)	0
Net asset value at end of period	3.11	3.05	3.02	2.74	2.29
Ratio / Supplemental Data
Per share market value of investments at end of period	$ 2.54	$ 2.75	$ 2.92	$ 2.30	$ 1.71
Shares outstanding at end of period	6,385,255	6,385,255	6,185,255	4,795,739	4,754,104
Average weighted shares outstanding for the period basic	6,385,255	6,204,303	5,045,830	4,795,075	4,836,170
Average weighted shares outstanding for the period diluted	6,501,823	6,320,871	5,045,830	4,795,075	4,836,170
Net assets at end of period	$ 19,849,085	$ 0	$ 18,658,595	$ 13,140,835	$ 10,805,062
Average net assets	$ 19,199,254	$ 18,661,934	$ 15,081,352	$ 13,090,497	$ 10,220,482
Total investment return (loss)	6.87%	(2.76%)	6.07%	22.22%	8.79%
Portfolio turnover rate	26.60%	59.61%	66.81%	124.55%	18.18%
Ratio of operating expenses to average net assets	(8.12%)	(20.10%)	(19.24%)	(10.31%)	(6.49%)
Ratio of net investment income (loss) to average net assets	8.82%	(2.76%)	10.09%	9.87%	3.35%
Ratio of realized gains (losses) to average net assets	0.97%	(3.98%)	1.18%	40.81%	7.06%

STOCKBASED COMPENSATION (Details)	9 Months Ended
STOCKBASED COMPENSATION (Details)	Sep. 30, 2024 $ / shares shares
STOCKBASED COMPENSATION (Details)
Shares, Options outstanding at beginning of year \| shares	670,000
Shares, Options outstanding Granted \| shares	0
Shares, Options outstanding Exercised \| shares	0
Shares, Options outstanding Forfeited \| shares	0
Shares, Options outstanding at end of year \| shares	670,000
Shares, Options exercisable at end of year \| shares	670,000
Weighted Average Exercise Price, Options outstanding at beginning of year \| $ / shares	$ 2.11
Weighted Average Exercise Price, Granted \| $ / shares	0
Weighted Average Exercise Price, Exercised \| $ / shares	0
Weighted Average Exercise Price, Forfeited \| $ / shares	0
Weighted Average Exercise Price, Options outstanding at end of year \| $ / shares	2.11
Weighted Average Exercise Price, Options exercisable at end of year \| $ / shares	$ 2.11