Mill City Ventures III (MCVT) 10-K 17 Apr 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2023	Jun. 30, 2022
Cover [Abstract]
Entity Registrant Name	MILL CITY VENTURES III, LTD.
Entity Central Index Key	0001425355
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		6,185,255
Entity Public Float			$ 5,625,200
Document Annual 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
Entity Address Address Line 2	#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
Icfr Auditor Attestation Flag	false
Auditor Name	Boulay PLLP
Auditor Location	Minneapolis, Minnesota
Security 12g Title	Common stock, $0.001 par value per share
Auditor Firm Id	542

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Investments, at fair value: Non-control/non-affiliate investments (cost: $17,359,804 and $13,933,057 respectively)	$ 16,708,432	$ 14,098,675
Cash	1,089,641	1,936,148
Note receivable, related party	250,000	250,000
Prepaid expenses	49,219	83,674
Interest and dividend receivables	250,879	324,350
Right-of-use operating lease asset	16,398	4,984
Deferred taxes	201,000	0
Total Assets	18,565,569	16,697,831
LIABILITIES
Accounts payable	136,514	64,028
Dividend payable	0	100
Payable for purchase of investments	0	1,900,000
Operating lease liability	16,562	5,654
Deferred interest income	70,154	0
Accrued income tax	0	1,269,000
Deferred taxes	0	45,000
Total Liabilities	223,230	3,283,782
SHAREHOLDERS EQUITY (NET ASSETS)
Common stock, par value $0.001 per share (111,111,111 authorized; 6,185,255 and 4,795,739 outstanding)	12,215	10,790
Additional paid-in capital	15,043,291	10,694,163
Accumulated deficit	(1,159,665)	(1,159,665)
Accumulated undistributed investment loss	(615,960)	(1,877,667)
Accumulated undistributed net realized gains on investment transactions	5,713,829	5,580,810
Net unrealized appreciation (depreciation) in value of investments	(651,371)	165,618
Total Shareholders' Equity (Net Assets)	18,342,339	13,414,049
Total Liabilities and Shareholders' Equity	$ 18,565,569	$ 16,697,831
Net Asset Value Per Common Share	$ 2.97	$ 2.80

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Balance Sheets
Investments at Amortized Cost	$ 17,359,804	$ 13,933,057
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	111,111,111	111,111,111
Common stock, shares outstanding	6,185,255	4,795,739

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Investment Income
Interest income	$ 4,199,453	$ 2,656,201
Total Investment Income	4,199,453	2,656,201
Operating Expenses
Professional fees	1,592,218	453,440
Payroll	541,590	556,432
Insurance	111,110	108,165
Occupancy	73,146	66,459
Director's fees	177,073	120,000
Interest expense	195,893	9,511
Other general and administrative	67,847	40,744
Total Operating Expenses	2,758,877	1,354,751
Net Investment Gain	1,440,576	1,301,450
Realized and Unrealized Gain (Loss) on Investments
Net realized gain on investments	133,019	4,118,001
Net change in unrealized depreciation on investments	(816,989)	(1,533,703)
Net Realized and Unrealized Gain (Loss) on Investments	(683,970)	2,584,298
Net Increase in Net Assets Resulting from Operations Before Taxes	756,606	3,885,748
Provision For Income Taxes	178,869	1,054,698
Net Increase in Net Assets Resulting from Operations	$ 577,737	$ 2,831,050
Net Increase in Net Assets Resulting from Operations per share:
Basic and diluted	$ 0.11	$ 0.59
Weighted-average number of common shares outstanding - basic and diluted	5,333,028	4,795,242

Statements of Shareholders' Equ

Statements of Shareholders' Equity - USD ($)	Total	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Undistributed Net Investment Loss [Member]	Accumulated Undistributed Net Realized Gain on Investments Transactions	Net Unrealized Appreciation (Depreciation) in value of Investments	Common Stock
Balance, shares at Dec. 31, 2020							4,793,739
Balance, amount at Dec. 31, 2020	$ 11,640,887	$ 10,673,014	$ (1,159,665)	$ (2,124,419)	$ 2,541,850	$ 1,699,321	$ 10,786
Dividend Declared	(1,079,041)	0	0	0	(1,079,041)	0
Common shares issued in consideration for expense payment, shares							2,000
Common shares issued in consideration for expense payment, amount	21,153	21,149	0	0			$ 4
Undistributed net investment gain	246,752	0	0	246,752	0	0	0
Undistributed net realized gain on investment transactions	4,118,001	0	0	0	4,118,001	0	0
Depreciation in value of investments	(1,533,703)	0	0	0	0	(1,533,703)	$ 0
Balance, shares at Dec. 31, 2021							4,795,739
Balance, amount at Dec. 31, 2021	13,414,049	10,694,163	(1,159,665)	(1,877,667)	5,580,810	165,618	$ 10,790
Common shares issued in consideration for expense payment, shares							77,777
Common shares issued in consideration for expense payment, amount	159,443	159,365	0	0			$ 78
Undistributed net investment gain	1,261,707	0	0	1,261,707	0	0	0
Undistributed net realized gain on investment transactions	133,019	0	0	0	133,019	0	0
Depreciation in value of investments	(816,989)	0	0	0	0	(816,989)	$ 0
Common shares issued in public offering net of underwriting costs and warrants, shares							1,250,000
Common shares issued in public offering net of underwriting costs and warrants, amount	3,840,622	3,839,372	0	0			$ 1,250
Warramts issued to underwriter	201,173	201,173
Common shares issued in reverse stock split rounding, shares							735
Common shares issued in reverse stock split rounding, amount	0	0					$ 0
Common shares issued in stock-based compensation, shares							61,004
Common shares issued in stock-based compensation, amount	149,315	149,218	0	0			$ 97
Balance, shares at Dec. 31, 2022							6,185,255
Balance, amount at Dec. 31, 2022	$ 18,342,339	$ 15,043,291	$ (1,159,665)	$ (615,960)	$ 5,713,829	$ (651,371)	$ 12,215

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net increase in net assets resulting from operations	$ 577,737	$ 2,831,050
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Net change in unrealized depreciation on investments	816,989	1,533,703
Net realized gain on investments	(133,019)	(4,118,001)
Purchases of investments	(23,558,458)	(27,029,292)
Proceeds from sales of investments	20,264,731	22,188,562
Deferred income taxes	(246,000)	(213,000)
Stock-based compensation to employees and vendors	308,758	15,403
Changes in operating assets and liabilities:
Prepaid expenses and other assets	23,041	(21,475)
Interest and dividends receivable	(73,471)	(258,439)
Receivable for investment sales	0	19,313
Payable for investment purchase	(1,900,000)	1,900,000
Accounts payable and other liabilities	83,294	10,804
Deferred interest income	70,154	0
Accrued income taxes	(1,269,000)	1,255,278
Net cash used in operating activities	(4,888,302)	(1,886,094)
Cash flows from financing activities:
Proceeds from public offering, net of underwriting discounts and offering costs	4,041,795	0
Proceeds from line of credit	9,793,800	0
Repayments on line of credit	(9,793,800)	0
Payments for common stock dividend	0	(1,618,337)
Net cash provided (used) by financing activities	4,041,795	(1,618,337)
Net decrease in cash	(846,507)	(3,504,431)
Cash, beginning of period	1,936,148	5,440,579
Cash, end of period	1,089,641	1,936,148
Supplemental disclosure of cash flow information:
Cash paid for income taxes	428,948	32,398
Cash paid for interest	195,894	9,511
Non-cash financing activities:
Common shares issued as consideration for investment	$ 0	$ 5,750

Investment Schedule

Investment Schedule - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Total Cash, Percentage of Net Assets	5.94%	14.43%
Total Investment, Percentage of Net Assets	91.09%	105.10%
Total Investments, Cost	$ 17,359,804	$ 13,933,057
Total Investments at Fair Value	16,708,432	14,098,675
Total Cash, Cost	1,089,641	1,936,148
Total Cash, Fair Value	1,089,641	1,936,148
Total Investments and Cash, Cost	18,449,445	15,869,205
Total Investments and Cash, Fair Value	$ 17,798,073	$ 16,034,823
Total Investments and Cash, Percentage of Net Assets	97.03%	119.53%
Represents the member information pertaining to short term banking loans.
Total Investments, Cost	$ 15,486,625	$ 11,655,750
Total Investments at Fair Value	$ 15,285,932	$ 11,650,000
Total Investments, Percentage of Net Assets	83.33%	86.85%
Represents the member information pertaining to other equity securities.
Total Investments, Cost	$ 822,500	$ 812,500
Total Investments at Fair Value	$ 222,500	$ 812,500
Total Investments, Percentage of Net Assets	1.21%	6.05%
Represents the member information pertaining to other equity securities. | Consumer
Total Investments, Cost	$ 212,500	$ 212,500
Total Investments at Fair Value	$ 212,500	$ 212,500
Total Investments, Percentage of Net Assets	1.16%	1.58%
Represents the member information pertaining to other equity securities. | Financial
Total Investments, Cost	$ 610,000	$ 600,000
Total Investments at Fair Value	$ 10,000	$ 600,000
Total Investments, Percentage of Net Assets	0.05%	4.47%
Warrants One | Healthcare
Total Investments, Cost	$ 679	$ 679
Total Investments, Percentage of Net Assets	0%	0%
Represents the member information pertaining to 15% secured loans. | Consumer
Total Investments, Cost	$ 2,900,000
Total Investments at Fair Value	$ 2,873,893
Total Investments, Percentage of Net Assets	15.67%
Represents the member information pertaining to 15% secured loans. | Represents the member information pertaining to short term banking loans. | Real Estate
Total Investments, Cost	$ 745,000	$ 700,000
Total Investments at Fair Value	$ 746,354	$ 700,000
Total Investments, Percentage of Net Assets	4.07%	5.22%
Represents the member information pertaining to 15% secured loans. | Represents the member information pertaining to short term banking loans. | Consumer
Total Investments, Cost	$ 5,000,000	$ 1,250,000
Total Investments at Fair Value	$ 4,975,955	$ 1,250,000
Total Investments, Percentage of Net Assets	27.13%	9.32%
Represents the member information pertaining to 15% secured loans. | Represents the member information pertaining to short term banking loans. | Consumer
Total Investments, Cost	$ 400,000
Total Investments at Fair Value	$ 398,635
Total Investments, Percentage of Net Assets	2.17%
Represents the member information pertaining to 15% secured loans. | Represents the member information pertaining to short term banking loans. | Tailwinds LLC Member
Total Investments, Cost		$ 3,000,000
Total Investments at Fair Value		$ 3,000,000
Total Investments, Percentage of Net Assets		22.36%
Represents the member information pertaining to 18% secured loans. | Represents the member information pertaining to short term banking loans. | Consumer
Total Investments, Cost	$ 2,250,000
Total Investments at Fair Value	$ 2,255,625
Total Investments, Percentage of Net Assets	12.30%
Represents the member information pertaining to 52% secured loans | Represents the member information pertaining to short term banking loans. | Financial
Total Investments, Cost		$ 500,000
Total Investments at Fair Value		$ 500,000
Total Investments, Percentage of Net Assets		3.73%
Represents the member information pertaining to 12% secured loans. | Represents the member information pertaining to short term banking loans. | Financial
Total Investments, Cost	$ 500,000	$ 500,000
Total Investments at Fair Value	$ 345,421	$ 500,000
Total Investments, Percentage of Net Assets	1.88%	3.73%
Represents the member information pertaining to 23% secured loans. | Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to litigation financing.
Total Investments, Cost		$ 1,805,750
Total Investments at Fair Value		$ 1,800,000
Total Investments, Percentage of Net Assets		13.42%
Represents the member information pertaining to 33% secured loans. | Represents the member information pertaining to short term banking loans. | Financial
Total Investments, Cost	$ 2,479,125
Total Investments at Fair Value	$ 2,478,030
Total Investments, Percentage of Net Assets	13.51%
Represents the member information pertaining to 15% convertible note. | Information Technology
Total Investments, Cost	$ 212,500
Investments at Fair Value	$ 213,656
Total Investments, Percentage of Net Assets	1.16%
Represents the member information pertaining to Alatus Development, LLC. | Represents the member information pertaining to 15% secured loans. | Represents the member information pertaining to short term banking loans. | Real Estate
Total Investments, Cost		$ 3,900,000
Total Investments at Fair Value		$ 3,900,000
Total Investments, Percentage of Net Assets		29.07%
Represents the member information pertaining to Alatus Development, Corp. | Represents the member information pertaining to 15% secured loans. | Represents the member information pertaining to short term banking loans. | Real Estate
Total Investments, Cost	$ 1,000,000
Total Investments at Fair Value	$ 998,363
Total Investments, Percentage of Net Assets	5.44%
Preferred Stock
Total Investments, Cost	$ 1,050,000	$ 1,050,000
Total Investments at Fair Value	$ 1,200,000	$ 1,200,000
Total Investments, Percentage of Net Assets	6.55%	8.95%
Preferred Stock | Information Technology
Total Investments, Cost	$ 150,000	$ 150,000
Investments at Fair Value	$ 300,000	$ 300,000
Total Investments, Percentage of Net Assets	1.64%	2.24%
Preferred Stock | Represents information pertaining to the Wisdom Gaming, Inc.
Total Investments, Cost	$ 900,000	$ 900,000
Total Investments at Fair Value	$ 900,000	$ 900,000
Total Investments, Percentage of Net Assets	4.91%	6.71%
Common Stock | Financial
Total Investments, Cost		$ 414,128
Total Investments at Fair Value		$ 436,175
Total Investments, Percentage of Net Assets		3.25%

ORGANIZATION

ORGANIZATION	12 Months Ended
	Dec. 31, 2022
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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of estimates: The presentation of certain items in the financial statements for the year ended December 31, 2021, has been changed to conform to the classifications used in 2022. These reclassifications had no effect on shareholders’ equity or net increase in net assets as previously recorded. Cash deposits: 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 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 not be able to realize our deferred income tax assets, 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. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. Our evaluation was performed for the tax years ended December 31, 2019 through 2021, which are the tax years that remain subject to examination by the tax jurisdictions as of December 31, 2022. 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 in placed on non-accrual status. Allocation of net gains and losses: Management and service fees:

NET GAIN PER COMMON SHARE

NET GAIN PER COMMON SHARE	12 Months Ended
	Dec. 31, 2022
NET GAIN PER COMMON SHARE
NET GAIN PER COMMON SHARE	NOTE 3 — NET GAIN PER COMMON SHARE Basic net gain (loss) per common share is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted-average number of common shares outstanding during the period. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net gain per common share follows: For the Year Ended December 31, 2022 2021 Numerator: Net increase in net assets resulting from operations $ 577,737 $ 2,831,050 Denominator: Weighted-average number of common shares outstanding 5,333,028 4,795,242 Basic and diluted net gain per common share $ 0.11 $ 0.59 At December 31, 2022 and 2021, the Company did not have any options or warrants outstanding or any other dilutive common equivalent shares other than conditional option grants (for an aggregate of 870,000 shares of common stock) that were, at December 31, 2022, unexercisable and subject to voiding in the absence of shareholder approval of the related 2022 Stock Incentive Plan. The Company’s shareholders subsequently approved the plan on January 20, 2023 at a special meeting of shareholders called for that purpose.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
LEASES
LEASES	NOTE 4 — LEASES We are subject to two non-cancelable operating leases for office space expiring April 2, 2023. These leases do not have significant lease escalations, holidays, concessions, leasehold improvements, or other build-out clauses. Further, the leases do not contain contingent rent provisions. The leases do not include options to renew. Because our lease does not provide an implicit rate, we use our incremental borrowing rate in determining the present value of the lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The weighted-average discount rate as of December 31, 2022 and December 31, 2021 was 4.5% and the weighted-average remaining lease term is one year. Rent expense for office facilities for the year ended December 31, 2022 and 2021 was $73,146 and $66,459, respectively. The components of our operating leases were as follows for the years ended December 31: 2022 2021 Operating lease costs $ 21,291 $ 19,116 Variable lease cost 18,325 17,613 Short-term lease cost 33,530 29,730 Total $ 73,146 $ 66,459 Supplemental balance sheet information consisted of the following at December 31: Operating Lease 2022 2021 Right-of-use assets $ 16,398 $ 4,984 Operating Lease Liability $ 16,562 $ 5,654 Less: short term portion (16,562 ) (5,654 ) Long term portion $ — $ — Maturity analysis under lease agreements consisted of the following as of December 31: 2022 2021 2022 $ - $ 5,698 2023 16,675 — Total lease payments 16,675 5,698 Less: Present value discount (113 ) (44 ) Present value of lease liabilities $ 16,562 $ 5,654 Supplemental cash flow information related to leases for the years ended December 31: 2022 2021 Operating cash outflow from operating leases $ 75,146 $ 66,459

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	12 Months Ended
	Dec. 31, 2022
SHAREHOLDERS EQUITY
SHAREHOLDERS' EQUITY	NOTE 5—SHAREHOLDERS’ EQUITY At December 31, 2022 a total of 6,185,255 shares of common stock were issued and outstanding. At December 31, 2021 a total of 4,795,739 shares of common stock were issued and outstanding. On August 9, 2022, the Company effected a stock combination (reverse stock split) of its common shares on a 1-for-2.25 basis such that every 2.25 shares of common stock issued and outstanding on that date were combined into one share of common stock. Any fractional share resulting from the reverse stock split was rounded up to the nearest whole share. The reverse stock split was approved by the Company's Board of Directors in accordance with Minnesota law and resulted in a proportionate reduction in the number of authorized shares of capital stock available for issuance under the Company's articles of incorporation. This reduction was affected pursuant to the filing of articles of amendment with the Minnesota Secretary of State indicating that the Company, on a post-reverse-split basis, is authorized to issue up to 111,111,111 shares of capital stock. On August 11, 2022, the Company completed its public offer and sale of 1,250,000 common shares pursuant to a registration statement filed with the SEC and declared effective on August 9, 2022. Shares were sold by the Company at $4.00 per share, resulting in gross proceeds of $5,000,000. As part of the registered public offering, the Company granted the underwriters a 45-day option to purchase up to 187,500 additional common shares at the offering price, less underwriting discounts which option was not exercised. In connection with the offering, the Company issued the underwriter a five-year warrant to purchase up to 75,000 common shares at the per-share price of $5.00. Net proceeds to the Company after the payment of underwriting discounts, underwriting expenses, and the Company's own offering-related expenses were approximately $4,041,000. In connection with the public offering, the Company 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. During 2022, there were 1,389,516 shares issued by the Company.

INVESTMENTS

INVESTMENTS	12 Months Ended
	Dec. 31, 2022
INVESTMENTS
INVESTMENTS	NOTE 6 — INVESTMENTS The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of December 31, 2022 (together with the corresponding percentage of total portfolio investments): As of December 31, 2022 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 15,486,625 89.2 % $ 15,285,932 91.5 % Preferred Stock 1,050,000 6.1 1,200,000 7.2 Warrants 679 - - - Other Equity 822,500 4.7 222,500 1.3 Total $ 17,359,804 100.0 % $ 16,708,432 100.0 % The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of December 31, 2021 (together with the corresponding percentage of total portfolio investments): As of December 31, 2021 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 11,655,750 83.7 % $ 11,650,000 82.6 % Preferred Stock 1,050,000 7.5 1,200,000 8.5 Common Stock 414,128 3.0 436,175 3.1 Warrants 679 - - - Other Equity 812,500 5.8 812,500 5.8 Total $ 13,933,057 100.0 % $ 14,098,675 100.0 % The following table shows the composition of our investment portfolio by industry grouping, based on fair value as of December 31, 2022: As of December 31, 2022 Investments at Fair Value Percentage of Fair Value Business Services $ 7,231,580 43.3 % Consumer 4,385,028 26.2 Financial 2,833,451 17.0 Information Technology 513,656 3.1 Real Estate 1,744,717 10.4 Total $ 16,708,432 100.0 % The following table shows the composition of our investment portfolio by industry grouping, based on fair value as of December 31, 2021: As of December 31, 2021 Investments at Fair Value Percentage of Fair Value Consumer $ 2,362,500 16.8 % Financial 3,836,175 27.2 Information Technology 300,000 2.1 Real Estate 7,600,000 53.9 Total $ 14,098,675 100.0 %

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 7 — 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 December 31, 2022, according to the fair value hierarchy: As of December 31, 2022 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ - $ - $ 15,285,932 $ 15,285,932 Preferred Stock - - 1,200,000 1,200,000 Warrants - - - - Other Equity - - 222,500 222,500 Total $ - $ - $ 16,708,432 $ 16,708,432 The following table presents the fair value measurements of our portfolio investments by major class, as of December 31, 2021, according to the fair value hierarchy: As of December 31, 2021 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ - $ - $ 11,650,000 $ 11,650,000 Preferred Stock - - 1,200,000 1,200,000 Common Stock 436,175 - - 436,175 Warrants - - - - Other Equity - - 812,500 812,500 Total $ 436,175 $ - $ 13,662,500 $ 14,098,675 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, 2022: For the year ended December 31, 2022 ST Non-banking Loans Preferred Stock Common Stock Warrants Other Equity Balance as of January 1, 2022 $ 11,650,000 $ 1,200,000 $ - $ - $ 812,500 Net change in unrealized depreciation (200,693 ) - - - (600,000 ) Purchases and other adjustments to cost 23,548,458 - - - 10,000 Sales and redemptions (19,711,833 ) - - - - Balance as of December 31, 2022 $ 15,285,932 $ 1,200,000 $ - $ - $ 222,500 The net change in unrealized depreciation for the year ended December 31, 2022 attributable to Level 3 portfolio investments still held as of December 31, 2022 is $651,371, and is included in net change in unrealized depreciation on investments on the statement of operations. 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, 2021: For the year ended December 31, 2021 ST Non-banking Loans Preferred Stock Common Stock Warrants Other Equity Balance as of January 1, 2021 $ 2,789,000 $ 300,000 $ — $ — $ 278,897 Net change in unrealized appreciation — — — — — Purchases and other adjustments to cost 24,765,333 900,000 — — 812,500 Sales and redemptions (15,904,333 ) — — — (278,897 ) Balance as of December 31, 2021 $ 11,650,000 $ 1,200,000 $ — $ — $ 812,500 The net change in unrealized appreciation for the year ended December 31, 2021 attributable to Level 3 portfolio investments still held as of December 31, 2021 is $0, and is included in net change in unrealized appreciation (depreciation) on investments on the statement of operations. The following table lists our Level 3 investments held as of December 31, 2022 and the unobservable inputs used to determine their valuation: Security Type 12/31/22 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 15,285,932 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-33 % Other Equity 222,500 last secured funding known by company Preferred Stock 1,200,000 last funding secured by company economic changes since last funding $ 16,708,432 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, 2021: Security Type 12/31/21 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 11,650,000 discounted cash flow determining private company credit rating 12-44 % Other Equity 812,500 last secured funding known by company economic changes since last funding Preferred Stock 1,200,000 last funding secured by company economic changes since last funding $ 13,662,500 There were no transfers between levels during the years ended December 31, 2022 and 2021.

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Dec. 31, 2022
LINE OF CREDIT
LINE OF CREDIT	NOTE 8 – LINE OF CREDIT On January 3, 2022, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Eastman Investment, Inc., a Nevada corporation, and Lyle A. Berman, as trustee of the Lyle A. Berman Revocable Trust (collectively, the “Lenders”). Mr. Berman is a director of our Company. 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. Amounts drawn under the Loan Agreement accrue interest at the per annum rate of 8%, and all our obligations under the Loan Agreement are secured by a grant of a collateral security interest in substantially all of our assets. As a Lender, Mr. Berman is obligated to furnish only one-half of the aggregate $5 million available under the Loan Agreement. The Loan Agreement has a five-year term ending on January 3, 2027, at which time all amounts owing under the Loan Agreement will become due and payable; subject, however, to each Lender’s right, including Mr. Berman, to terminate the Loan Agreement, solely with respect to such Lender’s obligation to provide further credit, at any time after January 3, 2023. In the event that a Lender, including Mr. Berman, terminates its lending obligations, the Loan Agreement requires that we repay such Lender, prior to the five-year maturity date, with the proceeds derived from specified investments. During the period January 3 to June 30, 2022, the Loan Agreement provided for us to pay a quarterly unused commitment fee equal to one-quarter of one percent of the amount of credit available but unused under the Loan Agreement, and requires us to pay such fee in the form of shares of our common stock based on our net asset value per share on the last day of the applicable fiscal quarter. The Loan Agreement grants the Lenders piggyback registration rights subject to customary terms, conditions and exceptions. Beginning July 1, 2022, we became obligated under the Loan Agreement to pay the quarterly unused commitment fee in cash. At December 31, 2022, the balance outstanding on the line was $0.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2022
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 9 – 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: · On August 10, 2018, we entered into a loan transaction with Elizabeth Zbikowski who, along with her husband Scott Zbikowski, owned and continues to own approximately 534,445 shares of our common stock. In the transaction, we obtained a two-year promissory note in the principal amount of $250,000, which was subsequently amended such that the note presently matures on August 30, 2023. The promissory note bears interest payable monthly at the rate of 10% per annum. The note is secured by the debtors’ pledge to us of 277,778 shares of our common stock. The pledged shares are held in physical custody for us by Millennium Trust Company, as our custodial agent. · On January 3, 2022, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Eastman Investment, Inc., a Nevada corporation, and Lyle A. Berman, as trustee of the Lyle A. Berman Revocable Trust (collectively, the “Lenders”). Mr. Berman is a director of our Company. 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. See note 8 above for further details.

RETIREMENT SAVINGS PLANS

RETIREMENT SAVINGS PLANS	12 Months Ended
	Dec. 31, 2022
RETIREMENT SAVINGS PLANS
RETIREMENT SAVINGS PLANS	NOTE 10 — RETIREMENT SAVINGS PLANS Our three full-time employees are eligible to participate in a qualified defined contribution 401(k) plan whereby they may elect to have a specified portion of their salary contributed to the plan. We will make a safe harbor match equal to 100% of their elective deferrals up to a maximum of 5% of eligible earnings in addition to our option to make discretionary contributions to the plan. We made aggregate contributions to the plan totaling $14,063 and $11,250 for the years ended 2022 and 2021, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
INCOME TAXES
INCOME TAXES	NOTE 11 — INCOME TAXES Presently, we are a “C-corporation” for tax purposes and have booked an income tax provision for the years ended December 31, 2022 and 2021. Income taxes as of December 31, 2022, and 2021 are described below. December 31 2022 2021 Current taxes Federal $ 406,700 $ 909,530 State 18,169 358,168 Deferred taxes Federal (246,000 ) (213,000 ) State — — Provision for income taxes $ 178,869 $ 1,054,698 A reconciliation of income tax provisions at the U.S. statutory rate for fiscal year 2022 and 2021 is as follows: 2022 2021 Rate reconciliation: Tax expense at U.S. statutory rate $ 185,887 $ 1,080,213 Change in deferred tax rate 450 (8,796 ) Provision-to-return reconciliation (18,536 ) (14,743 ) Other 11,068 (1,976 ) Income tax provision $ 178,869 $ 1,054,698 As of December 31, 2022 and 2021 we had a deferred tax asset of $201,000 and a deferred tax liability of $45,000, respectively. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021 were as follows: December 31 2022 2021 Deferred tax components Unrealized (gain) loss on marketable securities $ 156,550 $ (46,660 ) Depreciation 1,781 2,458 R&D and foreign credits 43,828 — Lease liability (39 ) — Other (1,120 ) (798 ) Net deferred tax asset (liability) $ 201,000 $ (45,000 )

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS	12 Months Ended
	Dec. 31, 2022
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS	NOTE 12 — FINANCIAL HIGHLIGHTS The following is a schedule of financial highlights for the years ended December 31, 2022 through 2018: Year Ended December 31, 2022 2021 2020 2019 2018 Per Share Data (1) Net asset value at beginning of period $ 2.80 2.44 2.05 2.30 1.96 Net investment gain (loss) 0.23 0.27 0.11 (0.14 ) (0.11 ) Net realized and unrealized gains (0.11 ) 0.54 0.41 0.00 0.45 Provision for income taxes (0.03 ) (0.23 ) (0.05 ) 0.00 0.00 Stock-based compensation 0.05 0.00 (0.02 ) 0.00 0.00 Repurchase of common stock 0.00 0.00 0.05 0.00 0.00 Other changes in equity 0.03 0.00 0.00 0.00 0.00 Payment of common stock dividend 0.00 (0.22 ) (0.11 ) (0.11 ) 0.00 Net asset value at end of period $ 2.97 2.80 2.44 2.05 2.30 Ratio / Supplemental Data Per share market value of investments at end of period $ 2.73 2.95 1.40 0.36 2.03 Shares outstanding at end of period 6,185,255 4,795,739 4,793,739 4,918,845 4,918,845 Average weighted shares outstanding for the period 5,333,028 4,795,242 4,830,691 4,918,845 4,918,845 Net assets at end of period $ 18,342,339 13,414,049 11,640,887 10,068,533 11,278,889 Average net assets (2) $ 15,733,550 13,155,207 10,504,563 11,473,535 10,341,702 Total investment return 3.57 % 24.07 % 23.08 % (5.88 )% 17.24 % Portfolio turnover rate (3) 128.80 % 168.67 % 61.11 % 7.63 % 26.93 % Ratio of operating expenses to average net assets (3) (17.53 )% (10.30 )% (7.16 )% (7.27 )% (6.59 )% Ratio of net investment income (loss) to average net assets (3) 9.16 % 9.89 % 5.35 % (5.86 )% (5.13 )% (1) Per-share data was derived using the weighted-average 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2022
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 13 — SUBSEQUENT EVENTS On January 26, 2022, we made a loan in the principal amount of $2,500,000 and obtained a 180-day promissory note bearing interest at 18% per annum.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of estimates	Use of estimates: The presentation of certain items in the financial statements for the year ended December 31, 2021, has been changed to conform to the classifications used in 2022. These reclassifications had no effect on shareholders’ equity or net increase in net assets as previously recorded.
Cash deposits	Cash deposits:
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	Income taxes: 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 not be able to realize our deferred income tax assets, 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. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. Our evaluation was performed for the tax years ended December 31, 2019 through 2021, which are the tax years that remain subject to examination by the tax jurisdictions as of December 31, 2022.
Revenue recognition	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 in placed on non-accrual status.
Allocation of net gains and losses	Allocation of net gains and losses:
Management and service fees	Management and service fees:

NET GAIN PER COMMON SHARE (Tabl

NET GAIN PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
NET GAIN PER COMMON SHARE
Summary of reconciliation of the numerator and denominator used in the calculation of basic and diluted net gain (loss) per common share	For the Year Ended December 31, 2022 2021 Numerator: Net increase in net assets resulting from operations $ 577,737 $ 2,831,050 Denominator: Weighted-average number of common shares outstanding 5,333,028 4,795,242 Basic and diluted net gain per common share $ 0.11 $ 0.59

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
LEASES
Summary of components of our operating lease	2022 2021 Operating lease costs $ 21,291 $ 19,116 Variable lease cost 18,325 17,613 Short-term lease cost 33,530 29,730 Total $ 73,146 $ 66,459
Summary of supplemental balance sheet information	Operating Lease 2022 2021 Right-of-use assets $ 16,398 $ 4,984 Operating Lease Liability $ 16,562 $ 5,654 Less: short term portion (16,562 ) (5,654 ) Long term portion $ — $ —
Summary of maturity analysis under lease agreements	2022 2021 2022 $ - $ 5,698 2023 16,675 — Total lease payments 16,675 5,698 Less: Present value discount (113 ) (44 ) Present value of lease liabilities $ 16,562 $ 5,654
Schedule of Supplemental cash flow information related to leases	2022 2021 Operating cash outflow from operating leases $ 75,146 $ 66,459

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2022
INVESTMENTS
Schedule of investments by major class, at amortized cost and fair value	As of December 31, 2022 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 15,486,625 89.2 % $ 15,285,932 91.5 % Preferred Stock 1,050,000 6.1 1,200,000 7.2 Warrants 679 - - - Other Equity 822,500 4.7 222,500 1.3 Total $ 17,359,804 100.0 % $ 16,708,432 100.0 % As of December 31, 2021 Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 11,655,750 83.7 % $ 11,650,000 82.6 % Preferred Stock 1,050,000 7.5 1,200,000 8.5 Common Stock 414,128 3.0 436,175 3.1 Warrants 679 - - - Other Equity 812,500 5.8 812,500 5.8 Total $ 13,933,057 100.0 % $ 14,098,675 100.0 %
Schedule of investments by industry grouping, based on fair value	As of December 31, 2022 Investments at Fair Value Percentage of Fair Value Business Services $ 7,231,580 43.3 % Consumer 4,385,028 26.2 Financial 2,833,451 17.0 Information Technology 513,656 3.1 Real Estate 1,744,717 10.4 Total $ 16,708,432 100.0 % As of December 31, 2021 Investments at Fair Value Percentage of Fair Value Consumer $ 2,362,500 16.8 % Financial 3,836,175 27.2 Information Technology 300,000 2.1 Real Estate 7,600,000 53.9 Total $ 14,098,675 100.0 %

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of fair value measurements of our investments by major class according to the fair value hierarchy	As of December 31, 2022 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ - $ - $ 15,285,932 $ 15,285,932 Preferred Stock - - 1,200,000 1,200,000 Warrants - - - - Other Equity - - 222,500 222,500 Total $ - $ - $ 16,708,432 $ 16,708,432 As of December 31, 2021 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ - $ - $ 11,650,000 $ 11,650,000 Preferred Stock - - 1,200,000 1,200,000 Common Stock 436,175 - - 436,175 Warrants - - - - Other Equity - - 812,500 812,500 Total $ 436,175 $ - $ 13,662,500 $ 14,098,675
Schedule of reconciliation of the beginning and ending fair value balances for our Level 3 investment assets	For the year ended December 31, 2022 ST Non-banking Loans Preferred Stock Common Stock Warrants Other Equity Balance as of January 1, 2022 $ 11,650,000 $ 1,200,000 $ - $ - $ 812,500 Net change in unrealized depreciation (200,693 ) - - - (600,000 ) Purchases and other adjustments to cost 23,548,458 - - - 10,000 Sales and redemptions (19,711,833 ) - - - - Balance as of December 31, 2022 $ 15,285,932 $ 1,200,000 $ - $ - $ 222,500 For the year ended December 31, 2021 ST Non-banking Loans Preferred Stock Common Stock Warrants Other Equity Balance as of January 1, 2021 $ 2,789,000 $ 300,000 $ — $ — $ 278,897 Net change in unrealized appreciation — — — — — Purchases and other adjustments to cost 24,765,333 900,000 — — 812,500 Sales and redemptions (15,904,333 ) — — — (278,897 ) Balance as of December 31, 2021 $ 11,650,000 $ 1,200,000 $ — $ — $ 812,500
Schedule of Level 3 investments held and the unobservable inputs used to determine their valuation	Security Type 12/31/22 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 15,285,932 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-33 % Other Equity 222,500 last secured funding known by company Preferred Stock 1,200,000 last funding secured by company economic changes since last funding $ 16,708,432 Security Type 12/31/21 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 11,650,000 discounted cash flow determining private company credit rating 12-44 % Other Equity 812,500 last secured funding known by company economic changes since last funding Preferred Stock 1,200,000 last funding secured by company economic changes since last funding $ 13,662,500

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
INCOME TAXES
Schedule of C-corporation Income Tax Provision	December 31 2022 2021 Current taxes Federal $ 406,700 $ 909,530 State 18,169 358,168 Deferred taxes Federal (246,000 ) (213,000 ) State — — Provision for income taxes $ 178,869 $ 1,054,698
Schedule of reconciliation of income tax provisions	2022 2021 Rate reconciliation: Tax expense at U.S. statutory rate $ 185,887 $ 1,080,213 Change in deferred tax rate 450 (8,796 ) Provision-to-return reconciliation (18,536 ) (14,743 ) Other 11,068 (1,976 ) Income tax provision $ 178,869 $ 1,054,698
Schedule of deferred tax assets and liabilities	December 31 2022 2021 Deferred tax components Unrealized (gain) loss on marketable securities $ 156,550 $ (46,660 ) Depreciation 1,781 2,458 R&D and foreign credits 43,828 — Lease liability (39 ) — Other (1,120 ) (798 ) Net deferred tax asset (liability) $ 201,000 $ (45,000 )

FINANCIAL HIGHLIGHTS (Tables)

FINANCIAL HIGHLIGHTS (Tables)	12 Months Ended
	Dec. 31, 2022
FINANCIAL HIGHLIGHTS
Schedule of financial highlights	Year Ended December 31, 2022 2021 2020 2019 2018 Per Share Data (1) Net asset value at beginning of period $ 2.80 2.44 2.05 2.30 1.96 Net investment gain (loss) 0.23 0.27 0.11 (0.14 ) (0.11 ) Net realized and unrealized gains (0.11 ) 0.54 0.41 0.00 0.45 Provision for income taxes (0.03 ) (0.23 ) (0.05 ) 0.00 0.00 Stock-based compensation 0.05 0.00 (0.02 ) 0.00 0.00 Repurchase of common stock 0.00 0.00 0.05 0.00 0.00 Other changes in equity 0.03 0.00 0.00 0.00 0.00 Payment of common stock dividend 0.00 (0.22 ) (0.11 ) (0.11 ) 0.00 Net asset value at end of period $ 2.97 2.80 2.44 2.05 2.30 Ratio / Supplemental Data Per share market value of investments at end of period $ 2.73 2.95 1.40 0.36 2.03 Shares outstanding at end of period 6,185,255 4,795,739 4,793,739 4,918,845 4,918,845 Average weighted shares outstanding for the period 5,333,028 4,795,242 4,830,691 4,918,845 4,918,845 Net assets at end of period $ 18,342,339 13,414,049 11,640,887 10,068,533 11,278,889 Average net assets (2) $ 15,733,550 13,155,207 10,504,563 11,473,535 10,341,702 Total investment return 3.57 % 24.07 % 23.08 % (5.88 )% 17.24 % Portfolio turnover rate (3) 128.80 % 168.67 % 61.11 % 7.63 % 26.93 % Ratio of operating expenses to average net assets (3) (17.53 )% (10.30 )% (7.16 )% (7.27 )% (6.59 )% Ratio of net investment income (loss) to average net assets (3) 9.16 % 9.89 % 5.35 % (5.86 )% (5.13 )%

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative)	12 Months Ended
	Dec. 31, 2022
ORGANIZATION
Maximuum percentage total assets of investment securities	40%

NET GAIN PER COMMON SHARE (Deta

NET GAIN PER COMMON SHARE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
NET GAIN PER COMMON SHARE
Numerator: Net increase in net assets resulting from operations	$ 577,737	$ 2,831,050
Denominator: Weighted-average number of common shares outstanding, basic	5,333,028	4,795,242
Basic and diluted net gain per common share	$ 0.11	$ 0.59

NET GAIN PER COMMON SHARE (De_2

NET GAIN PER COMMON SHARE (Details Narrative)	Dec. 31, 2022 shares
NET GAIN PER COMMON SHARE
common stock outstanding	870,000

LEASES (Details)

LEASES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
LEASES
Operating lease costs	$ 21,291	$ 19,116
Variable lease cost	18,325	17,613
Short-term lease cost	33,530	29,730
Total	$ 73,146	$ 66,459

LEASES (Details 1)

LEASES (Details 1) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
LEASES
Right-of-use assets	$ 16,398	$ 4,984
Operating Leases Liability	16,562	5,654
Less: short term portion	16,562	5,654
Long term portion	$ 0	$ 0

LEASES (Details 2)

LEASES (Details 2) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Maturity analysis under lease agreements
2022	$ 0	$ 5,698
2023	16,675	0
Total lease payments	16,675	5,698
Plus: interest	(113)	(44)
Present value of lease liabilities	$ 16,562	$ 5,654

LEASES (Details 3)

LEASES (Details 3) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
LEASES
Operating cash outflow from operating leases	$ 75,146	$ 66,459

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
LEASES
Rent expense	$ 73,146	$ 66,459
Lease Term	1 year
Weighted-average discount rate	4.50%	4.50%

SHAREHOLDERS EQUITY (Details Na

SHAREHOLDERS EQUITY (Details Narrative) - USD ($)			12 Months Ended
	Aug. 11, 2022	Aug. 09, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Common stock issued			6,185,255	4,795,739
Common stock issued			1,389,516
Reverse stock split Description		common shares on a 1-for-2.25 basis such that every 2.25 shares of common stock issued and outstanding on that date were combined into one share of common stock.
Fair value of warrants			$ 201,173
Common stock, shares outstanding			6,185,255	4,795,739	4,793,739	4,918,845	4,918,845
Post reverse split share issue		111,111,111
Number of common shares sale	1,250,000
Share issue price public offer	$ 4		$ 5
Share gross proceed	$ 5,000,000
Net proceeds amount after expenses	$ 4,041,000
Purchase of common shares			75,000
Underwriter 45 Day [Member]
Share issue price public offer	$ 5
Purchase of common shares	187,500
Underwriter 5 Year [Member]
Purchase of common shares	75,000

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Investments at amortized cost	$ 17,359,804	$ 13,933,057
Investment at fair value	$ 16,708,432	$ 14,098,675
Percentage of fair value	100%	100%
Represents the member information pertaining to short term banking loans.
Investments at amortized cost	$ 15,486,625	$ 11,655,750
Percentage of amortized cost	89.20%	83.70%
Investment at fair value	$ 15,285,932	$ 11,650,000
Percentage of fair value	91.50%	82.60%
Warrants [Member]
Investments at amortized cost	$ 679	$ 679
Preferred Stock
Investments at amortized cost	$ 1,050,000	$ 1,050,000
Percentage of amortized cost	6.10%	7.50%
Investment at fair value	$ 1,200,000	$ 1,200,000
Percentage of fair value	7.20%	8.50%
Common Stocks [Member]
Investments at amortized cost		$ 414,128
Percentage of amortized cost		3%
Investment at fair value		$ 436,175
Percentage of fair value		3.10%
Other Equity [Member]
Investments at amortized cost	$ 822,500	$ 812,500
Percentage of amortized cost	4.70%	5.80%
Investment at fair value	$ 222,500	$ 812,500
Percentage of fair value	1.30%	5.80%

INVESTMENTS (Details 1)

INVESTMENTS (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Percentage of Fair Value	100%	100%
Investment at fair value	$ 16,708,432	$ 14,098,675
Consumer
Percentage of Fair Value	26.20%	16.80%
Investment at fair value	$ 4,385,028	$ 2,362,500
Financial
Percentage of Fair Value	17%	27.20%
Investment at fair value	$ 2,833,451	$ 3,836,175
Information Technology
Percentage of Fair Value	3.10%	2.10%
Investment at fair value	$ 513,656	$ 300,000
Real Estate
Percentage of Fair Value	10.40%	53.90%
Investment at fair value	$ 1,744,717	$ 7,600,000
Business Services
Percentage of Fair Value	43.30%
Investment at fair value	$ 7,231,580

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Other Equity	$ 222,500	$ 812,500
Warrants	0	0
Preferred stock	1,200,000	1,200,000
Common Stock		436,175
Short-term Non-banking Loans	15,285,932	11,650,000
Investment at fair value	16,708,432	14,098,675
Level 2
Other Equity	0	0
Warrants	0	0
Preferred stock	0	0
Common Stock		0
Short-term Non-banking Loans	0	0
Investment at fair value	0	0
Level 3
Other Equity	222,500	812,500
Warrants	0	0
Preferred stock	1,200,000	1,200,000
Common Stock		0
Short-term Non-banking Loans	15,285,932	11,650,000
Investment at fair value	16,708,432	13,662,500
Level 1
Other Equity	0	0
Warrants	0	0
Preferred stock	0	0
Common Stock		436,175
Short-term Non-banking Loans	0	0
Investment at fair value	$ 0	$ 436,175

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - Level 3 - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Preferred Stock
Balance at the beginning	$ 1,200,000	$ 300,000
Purchases and other adjustments to cost		900,000
Balance at the end	1,200,000	1,200,000
Represents the member information pertaining to other equity securities.
Balance at the beginning	812,500	278,897
Net change in unrealized appreciation	600,000
Purchases and other adjustments to cost	10,000	812,500
Sales and redemptions		278,897
Balance at the end	222,500	812,500
Represents the member information pertaining to short term banking loans.
Balance at the beginning	11,650,000	2,789,000
Net change in unrealized appreciation	200,693
Purchases and other adjustments to cost	23,548,458	24,765,333
Sales and redemptions	(19,711,833)	(15,904,333)
Balance at the end	$ 15,285,932	$ 11,650,000

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Investment at fair value	$ 16,708,432	$ 14,098,675
Level 3
Investment at fair value	16,708,432	13,662,500
Represents the member information pertaining to short term banking loans.
Investment at fair value	$ 15,285,932	$ 11,650,000
Represents the member information pertaining to short term banking loans. | Level 3 | Minimum | Interest rate
Interest rate	12	12
Represents the member information pertaining to short term banking loans. | Level 3 | Maximum | Interest rate
Interest rate	33	44
Represents the member information pertaining to other equity securities.
Investments at Fair Value	$ 222,500	$ 812,500
Preferred Stock
Investment at fair value	$ 1,200,000	$ 1,200,000

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Attributable To Level 3 Portfolio Investment [Member]
Net change in unrealized appreciation	$ 651,371	$ 0

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	Dec. 31, 2022	Jan. 03, 2022	Dec. 31, 2021
Line of credit, outstanding	$ 0		$ 0
Revolving line of credit | This member stands for Eastman Investment, Inc. | Represents information pertaining to the loan and security agreement.
Line of credit facility maximum borrowing capacity	$ 5,000,000
Interest rate at per annum	8%
Lyle A. Berman | Revolving line of credit
Line of credit facility maximum borrowing capacity	$ 5,000,000	$ 5,000,000
Lyle A. Berman | Revolving line of credit | Revolving line of credit
Line of credit facility maximum borrowing capacity	$ 5,000,000

RELATEDPARTY TRANSACTIONS (Deta

RELATEDPARTY TRANSACTIONS (Details Narrative) - USD ($)	Aug. 10, 2018	Dec. 31, 2022	Jan. 03, 2022
Lyle A. Berman | Revolving line of credit
Maximum borrowing capacity		$ 5,000,000	$ 5,000,000
Ms Zbikowski Along With Her Husband Scott Zbikowsk
Promissory note term	two-year
Shares of common stock owned by related party	534,445
Principal amount of note obtained	$ 250,000
Debtors' pledge in number of common stock	277,778
Interest payable monthly (as a percent)	10%

RETIREMENT SAVINGS PLANS (Detai

RETIREMENT SAVINGS PLANS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
RETIREMENT SAVINGS PLANS
aggregate contributions For Retirement Plan	$ 14,063	$ 11,250

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current taxes
Federal	$ 406,700	$ 909,530
State	18,169	358,168
Deferred taxes
Federal	(246,000)	213,000
State	0	0
Provision for (benefit from) income taxes	$ 178,869	$ 1,054,698

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
INCOME TAXES
Tax expense at U.S.statutory rate	$ 185,887	$ 1,080,213
Change in valuation allowance	450	(8,796)
Provision-to-return reconciliation	(18,536)	14,743
Temporary differences	9,092
Other	(11,068)	(1,976)
Provision for (benefit from) income taxes	$ 178,869	$ 1,054,698

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
INCOME TAXES
Unrealized (gain) loss on marketable securities	$ (156,550)	$ (46,660)
Depreciation	1,781	2,458
R&D and foreign credits	43,828	0
Lease liability	39	0
Other	(1,120)	(798)
Net deferred tax asset (liability)	$ (201,000)	$ (45,000)

INCOME TAXES (Details And Narra

INCOME TAXES (Details And Narrative) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
INCOME TAXES
Deferred tax assets and Liability	$ 201,000	$ 45,000

FINANCIAL HIGHLIGHTS (Details)

FINANCIAL HIGHLIGHTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Per Share Data (1)
Net asset value at beginning of period	$ 2.80	$ 2.44	$ 2.05	$ 2.30	$ 1.96
Net investment income (loss)	0.23	0.27	0.11	(0.14)	(0.11)
Net realized and unrealized gains	(0.11)	0.54	0.41	0	0.45
Provision for income taxes	(0.03)	(0.23)	(0.05)	0	0
Stock based compensation	0.05	0	(0.02)	0	0
Repurchase of common stock	0	0	0.05	0	0
Other changes in equity	0.03	0	0	0	0
Payment of common stock dividend	0	(0.22)	(0.11)	(0.11)	0
Net asset value at end of period	2.97	2.80	2.44	2.05	2.30
Ratio / Supplemental Data
Per share market value of investments at end of period	$ 2.73	$ 2.95	$ 1.40	$ 0.36	$ 2.03
Shares outstanding at end of period	6,185,255	4,795,739	4,793,739	4,918,845	4,918,845
Average weighted shares outstanding for the period	5,333,028	4,795,242	4,830,691	4,918,845	4,918,845
Net assets at end of period	$ 18,342,339	$ 13,414,049	$ 11,640,887	$ 10,068,533	$ 11,278,889
Average net assets	$ 15,733,550	$ 13,155,207	$ 10,504,563	$ 11,473,535	$ 10,341,702
Total investment return	3.57%	24.07%	23.08%	(5.88%)	17.24%
Portfolio turnover rate	128.80%	168.67%	61.11%	7.63%	26.93%
Ratio of operating expenses to average net assets	(17.53%)	(10.30%)	(7.16%)	(7.27%)	(6.59%)
Ratio of net investment income (loss) to average net assets	9.16%	9.89%	5.35%	(5.86%)	(5.13%)

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	1 Months Ended
	Jan. 26, 2022 USD ($)
SUBSEQUENT EVENTS
Loan Of Principal Amount	$ 2,500,000
Interest Rate	18%