Mill City Ventures III (MCVT) 10-Q 22 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 15, 2023
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	true
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		6,185,255
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 Interactive Data Current	Yes
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

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Investments, at fair value:	$ 19,712,356	$ 16,708,432
Non-control/non-affiliate investments (cost: $19,715,304 and $17,359,804 respectively)
Cash	439,829	1,089,641
Note receivable, related party	250,000	250,000
Prepaid expenses	267,568	218,440
Interest and dividend receivables	366,391	250,879
Right-of-use operating lease asset	10,903	16,398
Deferred taxes	461,000	201,000
Total Assets	21,508,047	18,734,790
LIABILITIES
Accounts payable	91,038	776,514
Line of credit	2,750,000	0
Operating lease liability	11,067	16,562
Deferred interest income	42,217	70,154
Total Liabilities	2,894,322	863,230
SHAREHOLDERS EQUITY (NET ASSETS)
Common stock, par value $0.001 per share (111,111,111 authorized; 6,185,255 outstanding)	12,215	12,215
Additional paid-in capital	15,043,291	15,043,291
Additional paid-in capital - stock options	1,460,209	0
Accumulated deficit	(1,159,665)	(1,159,665)
Accumulated undistributed investment loss	(1,853,206)	(1,086,739)
Accumulated undistributed net realized gains on investment transactions	5,113,829	5,713,829
Net unrealized appreciation (depreciation) in value of investments	(2,948)	(651,371)
Total Shareholders' Equity (net assets)	18,613,725	17,871,560
Total Liabilities and Shareholders' Equity	$ 21,508,047	$ 18,734,790
Net Asset Value Per Common Share	$ 3.01	$ 2.89

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
CONDENSED BALANCE SHEETS
Investments at Amortized Cost	$ 19,715,304	$ 17,359,804
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	6,185,255

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Investment Income
Interest income	$ 864,028	$ 1,000,206
Total Investment Income	864,028	1,000,206
Operating Expenses
Professional fees	129,851	198,518
Payroll	1,130,439	196,442
Insurance	27,000	30,097
Occupancy	19,043	16,812
Director's fees	532,968	30,000
Interest expense	34,667	66,939
Other general and administrative	15,827	7,010
Total Operating Expenses	1,889,795	545,818
Net Investment Gain (Loss)	(1,025,767)	454,388
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments	(600,000)	138,770
Net change in unrealized appreciation (depreciation) on investments	648,423	(22,047)
Net Realized and Unrealized Gain on Investments	48,423	116,723
Net Increase (Decrease) in Net Assets Resulting from Operations Before Taxes	(977,344)	571,111
Provision (Benefit) for Income Taxes	(259,300)	159,000
Net Increase (Decrease) in Net Assets Resulting from Operations	$ (718,044)	$ 412,111
Net Increase (Decrease) in Net Assets Resulting from Operations per share:
Basic and diluted	$ (0.12)	$ 0.09
Weighted-average number of common shares outstanding - basic and diluted	6,185,255	4,795,739

CONDENSED STATEMENTS OF SHAREHO

CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Undistributed Net Investment Loss	Accumulated Undistributed Net Realized Gain On Investments Transaction	Net Unrealized Appreciation Depreciation In Value Of Investments
Balance, shares at Dec. 31, 2021		4,795,739
Balance, amount at Dec. 31, 2021	$ 13,414,049	$ 10,790	$ 10,694,163	$ (1,159,665)	$ (1,877,667)	$ 5,580,810	$ 165,618
Net investment gain, net of tax of $159,000	295,388	0	0	0	295,388	0	0
Net realized gain on investment transactions	138,770	0	0	0	0	138,770	0
Depreciation in value of investments	(22,047)	$ 0	0	0	0	0	(22,047)
Balance, shares at Mar. 31, 2022		4,795,739
Balance, amount at Mar. 31, 2022	13,826,160	$ 10,790	10,694,163	(1,159,665)	(1,582,279)	5,719,580	143,571
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
Net investment loss, net of tax benefit of $259,300	(766,467)	0	0	0	(766,467)	0	0
Net realized loss on investment transactions	(600,000)	0	0	0	0	(600,000)	0
Appreciation in value of investments	648,423	$ 0	0	0	0	0	648,423
Balance, shares at Mar. 31, 2023		6,185,255
Balance, amount at Mar. 31, 2023	$ 18,613,725	$ 12,215	$ 16,503,500	$ (1,159,665)	$ (1,853,206)	$ 5,113,829	$ (2,948)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$ (718,044)	$ 412,111
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided (used) in operating activities:
Net change in unrealized (appreciation) depreciation on investments	(648,423)	22,047
Net realized (gain) loss on investments	600,000	(138,770)
Purchases of investments	(6,900,500)	(7,025,000)
Proceeds from sales of investments	3,945,000	1,152,898
Issuance of stock options	1,460,209	0
Deferred income taxes	(260,000)	(6,000)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(43,633)	59,000
Interest and dividends receivable	(115,512)	(238,643)
Accounts payable and other liabilities	(690,971)	35,229
Deferred interest income	27,938	272,000
Accrued income taxes	0	165,000
Payable for investment purchase	0	(1,900,000)
Net cash used in operating activities	(3,399,812)	(7,190,128)
Cash flows from financing activities:
Proceeds from line of credit	2,750,000	5,325,000
Net cash provided by financing activities	2,750,000	5,325,000
Net decrease in cash	(649,812)	(1,865,128)
Cash, beginning of period	1,089,641	1,936,148
Cash, end of period	$ 439,829	$ 71,020

Investment Schedule

Investment Schedule - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Total Cash, Percentage of Net Assets	2.40%	6.10%
Total Investment, Percentage of Net Assets	107.46%	93.50%
Total Investments, Cost	$ 19,715,304	$ 17,359,804
Total Investments at Fair Value	19,712,356	16,708,432
Total Cash, Cost	439,829	1,089,641
Total Cash, Fair Value	439,829	1,089,641
Total Investments and Cash, Cost	20,155,133	18,449,445
Total Investments and Cash, Fair Value	$ 20,152,185	$ 17,798,073
Total Investments and Cash, Percentage of Net Assets	109.86%	99.60%
Information Technology | Preferred Stock
Total Investments, Cost	$ 150,000	$ 150,000
Investments at Fair Value	$ 300,000	$ 300,000
Total Investments, Percentage of Net Assets	1.64%	1.68%
Consumer | Common Stock
Total Investments, Cost	$ 212,500
Total Investments at Fair Value	$ 209,322
Total Investments, Percentage of Net Assets	1.14%
Represents information pertaining to the Wisdom Gaming, Inc. | Preferred Stock
Total Investments, Cost	$ 900,000	$ 900,000
Total Investments at Fair Value	$ 900,000	$ 900,000
Total Investments, Percentage of Net Assets	4.91%	5.04%
Represents the member information pertaining to 15% secured loans. | Consumer
Total Investments, Cost	$ 2,900,000	$ 2,900,000
Total Investments at Fair Value	$ 2,892,010	$ 2,873,893
Total Investments, Percentage of Net Assets	15.77%	16.08%
Represents the member information pertaining to 15% convertible note. | Information Technology
Total Investments, Cost	$ 212,500	$ 212,500
Investments at Fair Value	$ 213,456	$ 213,656
Total Investments, Percentage of Net Assets	1.16%	1.20%
Preferreds Stock [Member][
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%	6.72%
Represents the member information pertaining to short term banking loans.
Total Investments, Cost	$ 18,442,125	$ 15,486,625
Total Investments at Fair Value	$ 18,293,034	$ 15,285,932
Total Investments, Percentage of Net Assets	99.72%	85.53%
Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to 15% secured loans. | Consumer
Total Investments, Cost	$ 5,000,000	$ 5,000,000
Total Investments at Fair Value	$ 5,000,678	$ 4,975,955
Total Investments, Percentage of Net Assets	27.26%	27.84%
Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to 15% secured loans. | Consumer
Total Investments, Cost	$ 408,000	$ 400,000
Total Investments at Fair Value	$ 406,994	$ 398,635
Total Investments, Percentage of Net Assets	2.22%	2.23%
Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to 12% secured loans. | Financial
Total Investments, Cost	$ 500,000	$ 500,000
Total Investments at Fair Value	$ 366,079	$ 345,421
Total Investments, Percentage of Net Assets	1.99%	1.93%
Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to 18% secured loans. | Consumer
Total Investments, Cost		$ 2,250,000
Total Investments at Fair Value		$ 2,255,625
Total Investments, Percentage of Net Assets		12.62%
Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to 33% secured loans. | Financial
Total Investments, Cost	$ 1,986,625	$ 2,479,125
Total Investments at Fair Value	$ 1,984,769	$ 2,478,030
Total Investments, Percentage of Net Assets	10.82%	13.87%
Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to 34% secured loans. | Financial
Total Investments, Cost	$ 1,165,000
Total Investments at Fair Value	$ 1,163,911
Total Investments, Percentage of Net Assets	6.35%
Represents the member information pertaining to short term banking loans. | Represents the member information pertaining to 36% secured loans. | Financial
Total Investments, Cost	$ 1,025,000
Total Investments at Fair Value	$ 1,024,042
Total Investments, Percentage of Net Assets	5.58%
Represents the member information pertaining to short term banking loans. | Real Estate | Represents the member information pertaining to 15% secured loans.
Total Investments, Cost	$ 745,000	$ 745,000
Total Investments at Fair Value	$ 747,786	$ 746,354
Total Investments, Percentage of Net Assets	4.07%	4.17%
Represents the member information pertaining to short term banking loans. | Real Estate | Represents the member information pertaining to 15% secured loans. | Represents the member information pertaining to Alatus Development, Corp.
Total Investments, Cost	$ 2,000,000	$ 1,000,000
Total Investments at Fair Value	$ 2,000,418	$ 998,363
Total Investments, Percentage of Net Assets	10.91%	5.59%
Represents the member information pertaining to short term banking loans. | Real Estate | Represents the member information pertaining to 18% secured loans.
Total Investments, Cost	$ 2,500,000
Total Investments at Fair Value	$ 2,492,891
Total Investments, Percentage of Net Assets	13.59%
Represents the member information pertaining to other equity securities.
Total Investments, Cost		$ 822,500
Total Investments at Fair Value		$ 222,500
Total Investments, Percentage of Net Assets		1.25%
Represents the member information pertaining to other equity securities. | Consumer
Total Investments, Cost		$ 212,500
Total Investments at Fair Value		$ 212,500
Total Investments, Percentage of Net Assets		1.19%
Represents the member information pertaining to other equity securities. | Financial
Total Investments, Cost	$ 10,000	$ 610,000
Total Investments at Fair Value	$ 10,000	$ 10,000
Total Investments, Percentage of Net Assets	0.05%	0.06%
Warrants One | Healthcare
Total Investments, Cost	$ 679	$ 679
Total Investments, Percentage of Net Assets	0%	0%

ORGANIZATION

ORGANIZATION	3 Months Ended
	Mar. 31, 2023
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	3 Months Ended
	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The condensed balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K/A for the year ended December 31, 2022. Use of estimates: 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 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 its unrecognized tax positions over the next 12 months. Our evaluation was performed for the tax years ended December 31, 2020 through 2022, which are the tax years that remain subject to examination by major tax jurisdictions as of March 31, 2023. 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	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 (together with the corresponding percentage of the fair value of our total portfolio of investments): Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 18,442,125 93.5 % $ 18,293,034 92.8 % Preferred Stock 1,050,000 5.3 1,200,000 6.1 Common Stock 212,500 1.1 209,322 1.1 Warrants 679 — — — Other Equity 10,000 0.1 10,000 — Total $ 19,715,304 100.0 % $ 19,712,356 100.0 % The following table shows the composition of our investment portfolio by major class, at amortized cost and fair value, as of December 31, 2022 (together with the corresponding percentage of the fair value of our total portfolio of investments): 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 industry grouping, based on fair value as of March 31, 2023: Investments at Fair Value Percentage of Fair Value Business Services $ 5,000,678 25.3 % Consumer 4,408,326 22.4 Financial 4,548,801 23.1 Information Technology 513,456 2.6 Real Estate 5,241,095 26.6 Total $ 19,712,356 100.0 % The following table shows the composition of our investment portfolio 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 %

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023, according to the fair value hierarchy: As of March 31, 2023 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ — $ — $ 18,293,034 $ 18,293,034 Preferred Stock — — 1,200,000 1,200,000 Common Stock 61,645 147,677 — 209,322 Other Equity — — 10,000 10,000 Total $ 61,645 $ 147,677 $ 19,503,034 $ 19,712,356 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 Common Stock — — — — Other Equity — — 222,500 222,500 Total $ — $ — $ 16,708,432 $ 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 three months ended March 31, 2023: For the three months ended March 31, 2023 ST Non-banking Loans Preferred Stock Common Stock Warrants Other Equity Balance as of January 1, 2023 $ 15,285,932 $ 1,200,000 $ — $ — $ 222,500 Net change in unrealized appreciation 51,602 — — — 600,000 Purchases and other adjustments to cost 6,900,500 — — — — Sales and redemptions (3,945,000 ) — — — — Net realized loss — — — — (600,000 ) Transfers out of level 3 — — — — (212,500 ) Balance as of March 31, 2023 $ 18,293,034 $ 1,200,000 $ — $ — $ 10,000 The net change in unrealized appreciation for the three months ended March 31, 2023 attributable to Level 3 portfolio investments still held as of March 31, 2023 was $651,602. The following table lists our Level 3 investments held as of March 31, 2023 and the unobservable inputs used to determine their valuation: Security Type 3/31/23 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 18,293,034 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-36 % Other Equity 10,000 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 $ 19,503,034 The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the period 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 was $651,371. 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

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2023
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: · 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.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2023
INCOME TAXES
INCOME TAXES	NOTE 6 – INCOME TAXES Presently, we are a C-Corporation for tax purposes and have booked an income tax provision for the periods described below. As of March 31, 2023 and December 31, 2022, we have a deferred tax asset of $461,000 and $201,000, respectively. As of March 31, 2023, our net deferred tax asset consists of net operating losses (NOLs), foreign tax credit carryforwards, unrealized investment gain/loss, future tax-deductible stock option expenses, 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 March 31, 2023 and December 31, 2022 we had prepaid income taxes of $178,600 and $179,300, respectively. We recorded a benefit from income taxes of $259,300 (26 percent effective tax rate) and a provision for income taxes of $159,000 (28 percent effective tax rate) during the three months ended March 31, 2023 and March 31, 2022, respectively. As of March 31, 2023, we had a federal NOL of approximately $168,000. The federal NOL may be carried forward to offset future taxable income, subject to applicable provisions of the Internal Revenue Code. Due to tax reform enacted in 2017, NOLs created after 2017 carry forward indefinitely. The estimated federal NOL that does not expire included in the total above is $168,000. States may vary in their treatment of post-2017 NOLs. Minnesota is the only state carrying forward a NOL which was $100,000 at March 31, 2023. The state NOL carryforwards may expire in 2043 if not used.

LINE OF CREDIT

LINE OF CREDIT	3 Months Ended
	Mar. 31, 2023
LINE OF CREDIT
LINE OF CREDIT	NOTE 7 – 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 March 31, 2023 and December 31, 2022, the balance outstanding on the line was $2,750,000 and $0, respectively, with a maturity date of January 3, 2027.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2023
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 8 – STOCK-BASED COMPENSATION The Board approved a 2022 Stock Incentive Plan which authorized 900,000 shares of common stock available to be issued. To date, 870,000 shares were issued under the Plan, leaving 30,000 shares available for issuance. The following table summarizes the activity for all stock options outstanding for the three months ended March 31, 2023: Shares Weighted Average Exercise Price Options outstanding at beginning of year — $ — Granted 870,000 2.11 Exercised — — Forfeited — — Balance at March 31 870,000 $ 2.11 Options exercisable at March 31: 870,000 $ 2.11 Weighted Average Grant Date Fair Value for options granted during the period: $ 1,242,902 The following table summarizes additional information about stock options outstanding and exercisable at March 31, 2023: Options Outstanding Options Exercisable Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Options Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value 870,000 9.85 $ 2.11 $ 175,100 870,000 $ 2.11 $ 175,100 The Company recognized stock-based compensation expense for stock options of $1,460,209 for the three months ended March 31, 2023. The Black-Scholes option-pricing model was used to estimate the fair value of equity-based awards with the following weighted-average assumptions for the three months ended March 31, 2023: 2023 Risk-free interest rate 3.48 % Expected volatility 90.00 % Expected life (years) 5.0 Expected dividend yield — % The inputs for the Black-Scholes valuation model require management’s significant assumptions. The price per share of common stock is determined by using the closing market price on the Nasdaq Capital Market on the grant date. The risk-free interest rates are based on the rate for U.S. Treasury securities at the date of grant with maturity dates approximately equal to the expected life at the grant date. The expected life is based on the simplified method in accordance with the SEC Staff Accounting Bulletin Nos. 107 and 110. The expected volatility is estimated based on historical volatility information of peer companies that are publicly available in combination with the Company’s calculated volatility.

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	3 Months Ended
	Mar. 31, 2023
SHAREHOLDERS EQUITY
SHAREHOLDERS' EQUITY	NOTE 9 – SHAREHOLDERS’ EQUITY At March 31, 2023, we had 6,185,255 shares of common stock 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. All share and per share information has been retrospectively adjusted to reflect the reverse stock split.

PER-SHARE INFORMATION

PER-SHARE INFORMATION	3 Months Ended
	Mar. 31, 2023
PER-SHARE INFORMATION
PER-SHARE INFORMATION	NOTE 10 – PER-SHARE INFORMATION Basic net gain 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. 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 March 31, 2023 2022 Numerator: Net increase (decrease) in net assets resulting from operations $ (718,044 ) $ 412,111 Denominator: Weighted-average number of common shares outstanding 6,185,255 4,795,739 Basic and diluted net gain (loss) per common share $ (0.12 ) $ 0.09

OPERATING LEASES

OPERATING LEASES	3 Months Ended
	Mar. 31, 2023
OPERATING LEASES
OPERATING LEASES	NOTE 11 – OPERATING LEASES We are a party 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 leases do 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 March 31, 2023 and March 31, 2022 was 4.5% and the weighted-average remaining lease term is one year. Rent expense for office facilities for the three months ended March 31, 2023 and 2022 was $19,043 and $16,812, respectively. The components of our operating leases were as follows for the three months ended March 31: Three Months Ended March 31, 2023 March 31, 2022 Operating lease costs $ 5,504 $ 4,779 Variable lease cost 4,905 4,601 Short-term lease cost 8,634 7,432 Total $ 19,043 $ 16,812 Supplemental balance sheet information consisted of the following at March 31: Operating Lease 2023 2022 Right-of-use assets $ 10,903 $ — Operating Lease Liability $ 11,067 $ — Less: short term portion (11,067 ) — Long term portion $ — $ — Maturity analysis under this lease extension agreement consists of the following as of March 31: 2023 2022 2022 $ — $ 18,164 2023 11,226 14,859 Total lease payments 11,226 33,023 Less: Present value discount (159 ) (1,035 ) Present value of lease liabilities $ 11,067 $ 31,988

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS	3 Months Ended
	Mar. 31, 2023
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS	NOTE 12 – FINANCIAL HIGHLIGHTS The following is a schedule of financial highlights for the three months ended March 31, 2023 through 2019: Three Months Ended March 31, 2023 2022 2021 2020 2019 Per Share Data (1) Net asset value at beginning of period $ 2.89 2.79 2.43 2.05 2.30 Net investment income (loss) (0.17 ) 0.09 0.00 0.00 (0.05 ) Net realized and unrealized gains (losses) 0.01 0.02 0.50 (0.07 ) 0.27 Provision for income taxes 0.04 (0.02 ) (0.14 ) 0.00 0.00 Issuance of stock options 0.24 0.00 0.00 0.00 0.00 Repurchase of common stock 0.00 0.00 0.00 0.00 0.00 Payment of common stock dividend 0.00 0.00 0.00 0.00 (0.11 ) Net asset value at end of period $ 3.01 2.88 2.79 1.98 2.41 Ratio / Supplemental Data Per share market value of investments at end of period $ 3.19 4.19 2.81 0.92 1.76 Shares outstanding at end of period 6,185,255 4,795,739 4,794,184 4,918,845 4,918,845 Average weighted shares outstanding for the period 6,185,255 4,795,739 4,793,739 4,918,845 4,918,845 Net assets at end of period $ 18,613,725 13,826,160 13,391,679 9,786,615 11,890,188 Average net assets (2) $ 18,242,642 13,620,104 12,516,283 9,927,574 12,911,895 Total investment return (4.15 )% 3.23 % 14.81 % (3.30 )% 4.90 % Portfolio turnover rate (3) 21.63 % 8.46 % 40.24 % 0.75 % 0.93 % Ratio of operating expenses to average net assets (3) (35.82 )% (15.28 )% (16.20 )% (7.82 )% (6.06 )% Ratio of net investment income (loss) to average net assets (3) (20.92 )% 14.24 % 0.42 % 0.87 % (4.87 )% Ratio of realized gains (losses) to average net assets (3) (12.68 )% 4.20 % 133.32 % 1.00 % 137.57 % (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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation	Basis of presentation The condensed balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K/A for the year ended December 31, 2022.
Use of estimates	Use of estimates:
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	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 its unrecognized tax positions over the next 12 months. Our evaluation was performed for the tax years ended December 31, 2020 through 2022, which are the tax years that remain subject to examination by major tax jurisdictions as of March 31, 2023.
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 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)	3 Months Ended
	Mar. 31, 2023
INVESTMENTS
Schedule of investments by major class, at amortized cost and fair value	Investments at Amortized Cost Percentage of Amortized Cost Investments at Fair Value Percentage of Fair Value Short-term Non-banking Loans $ 18,442,125 93.5 % $ 18,293,034 92.8 % Preferred Stock 1,050,000 5.3 1,200,000 6.1 Common Stock 212,500 1.1 209,322 1.1 Warrants 679 — — — Other Equity 10,000 0.1 10,000 — Total $ 19,715,304 100.0 % $ 19,712,356 100.0 % 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 %
Schedule of investments by industry grouping, based on fair value	Investments at Fair Value Percentage of Fair Value Business Services $ 5,000,678 25.3 % Consumer 4,408,326 22.4 Financial 4,548,801 23.1 Information Technology 513,456 2.6 Real Estate 5,241,095 26.6 Total $ 19,712,356 100.0 % 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 %

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of fair value measurements of our investments by major class according to the fair value hierarchy	As of March 31, 2023 Level 1 Level 2 Level 3 Total Short-term Non-banking Loans $ — $ — $ 18,293,034 $ 18,293,034 Preferred Stock — — 1,200,000 1,200,000 Common Stock 61,645 147,677 — 209,322 Other Equity — — 10,000 10,000 Total $ 61,645 $ 147,677 $ 19,503,034 $ 19,712,356 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 Common Stock — — — — Other Equity — — 222,500 222,500 Total $ — $ — $ 16,708,432 $ 16,708,432
Schedule of reconciliation of the beginning and ending fair value balances for our Level 3 investment assets	For the three months ended March 31, 2023 ST Non-banking Loans Preferred Stock Common Stock Warrants Other Equity Balance as of January 1, 2023 $ 15,285,932 $ 1,200,000 $ — $ — $ 222,500 Net change in unrealized appreciation 51,602 — — — 600,000 Purchases and other adjustments to cost 6,900,500 — — — — Sales and redemptions (3,945,000 ) — — — — Net realized loss — — — — (600,000 ) Transfers out of level 3 — — — — (212,500 ) Balance as of March 31, 2023 $ 18,293,034 $ 1,200,000 $ — $ — $ 10,000 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
Schedule of Level 3 investments held and the unobservable inputs used to determine their valuation	Security Type 3/31/23 FMV Valuation Technique Unobservable Inputs Range ST Non-banking Loans $ 18,293,034 discounted cash flow determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness 12-36 % Other Equity 10,000 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 $ 19,503,034 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

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2023
STOCK-BASED COMPENSATION
Schedule of stock options activity	Shares Weighted Average Exercise Price Options outstanding at beginning of year — $ — Granted 870,000 2.11 Exercised — — Forfeited — — Balance at March 31 870,000 $ 2.11 Options exercisable at March 31: 870,000 $ 2.11 Weighted Average Grant Date Fair Value for options granted during the period: $ 1,242,902
Schedule of stock options outstanding and exercisable	Options Outstanding Options Exercisable Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Options Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value 870,000 9.85 $ 2.11 $ 175,100 870,000 $ 2.11 $ 175,100
Schedule of fair value of equity-based awards	2023 Risk-free interest rate 3.48 % Expected volatility 90.00 % Expected life (years) 5.0 Expected dividend yield — %

PER-SHARE INFORMATION (Tables)

PER-SHARE INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 2022 Numerator: Net increase (decrease) in net assets resulting from operations $ (718,044 ) $ 412,111 Denominator: Weighted-average number of common shares outstanding 6,185,255 4,795,739 Basic and diluted net gain (loss) per common share $ (0.12 ) $ 0.09

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
OPERATING LEASES
Summary of components of our operating lease	Three Months Ended March 31, 2023 March 31, 2022 Operating lease costs $ 5,504 $ 4,779 Variable lease cost 4,905 4,601 Short-term lease cost 8,634 7,432 Total $ 19,043 $ 16,812
Summary of supplemental balance sheet information	Operating Lease 2023 2022 Right-of-use assets $ 10,903 $ — Operating Lease Liability $ 11,067 $ — Less: short term portion (11,067 ) — Long term portion $ — $ —
Summary of maturity analysis under lease agreements	2023 2022 2022 $ — $ 18,164 2023 11,226 14,859 Total lease payments 11,226 33,023 Less: Present value discount (159 ) (1,035 ) Present value of lease liabilities $ 11,067 $ 31,988

FINANCIAL HIGHLIGHTS (Tables)

FINANCIAL HIGHLIGHTS (Tables)	3 Months Ended
	Mar. 31, 2023
FINANCIAL HIGHLIGHTS
Schedule of financial highlights	Three Months Ended March 31, 2023 2022 2021 2020 2019 Per Share Data (1) Net asset value at beginning of period $ 2.89 2.79 2.43 2.05 2.30 Net investment income (loss) (0.17 ) 0.09 0.00 0.00 (0.05 ) Net realized and unrealized gains (losses) 0.01 0.02 0.50 (0.07 ) 0.27 Provision for income taxes 0.04 (0.02 ) (0.14 ) 0.00 0.00 Issuance of stock options 0.24 0.00 0.00 0.00 0.00 Repurchase of common stock 0.00 0.00 0.00 0.00 0.00 Payment of common stock dividend 0.00 0.00 0.00 0.00 (0.11 ) Net asset value at end of period $ 3.01 2.88 2.79 1.98 2.41 Ratio / Supplemental Data Per share market value of investments at end of period $ 3.19 4.19 2.81 0.92 1.76 Shares outstanding at end of period 6,185,255 4,795,739 4,794,184 4,918,845 4,918,845 Average weighted shares outstanding for the period 6,185,255 4,795,739 4,793,739 4,918,845 4,918,845 Net assets at end of period $ 18,613,725 13,826,160 13,391,679 9,786,615 11,890,188 Average net assets (2) $ 18,242,642 13,620,104 12,516,283 9,927,574 12,911,895 Total investment return (4.15 )% 3.23 % 14.81 % (3.30 )% 4.90 % Portfolio turnover rate (3) 21.63 % 8.46 % 40.24 % 0.75 % 0.93 % Ratio of operating expenses to average net assets (3) (35.82 )% (15.28 )% (16.20 )% (7.82 )% (6.06 )% Ratio of net investment income (loss) to average net assets (3) (20.92 )% 14.24 % 0.42 % 0.87 % (4.87 )% Ratio of realized gains (losses) to average net assets (3) (12.68 )% 4.20 % 133.32 % 1.00 % 137.57 %

ORGANIZATION (Details Narrative

ORGANIZATION (Details Narrative)	3 Months Ended
	Mar. 31, 2023
ORGANIZATION
Maximuum percentage total assets of investment securities	40%

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Investments at amortized cost	$ 19,715,304	$ 17,359,804
Percentage of amortized cost	100%	100%
Investment at fair value	$ 19,712,356	$ 16,708,432
Percentage of fair value	100%	100%
Preferreds Stock [Member][
Investments at amortized cost	$ 1,050,000	$ 1,050,000
Percentage of amortized cost	5.30%	6.10%
Investment at fair value	$ 1,200,000	$ 1,200,000
Percentage of fair value	6.10%	7.20%
Represents the member information pertaining to short term banking loans.
Investments at amortized cost	$ 18,442,125	$ 15,486,625
Percentage of amortized cost	93.50%	89.20%
Investment at fair value	$ 18,293,034	$ 15,285,932
Percentage of fair value	92.80%	91.50%
Warrants [Member]
Investments at amortized cost	$ 679	$ 679
Percentage of amortized cost	0%	0%
Investment at fair value	$ 0	$ 0
Percentage of fair value	0%	0%
Other Equity [Member]
Investments at amortized cost	$ 10,000	$ 822,500
Percentage of amortized cost	0.10%	4.70%
Investment at fair value	$ 10,000	$ 222,500
Percentage of fair value	0%	1.30%
Common Stocks [Member]
Investments at amortized cost	$ 212,500
Percentage of amortized cost	1.10%
Investment at fair value	$ 209,322
Percentage of fair value	1.10%

INVESTMENTS (Details 1)

INVESTMENTS (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Investment at fair value	$ 19,712,356	$ 16,708,432
Percentage of fair value	100%	100%
Business Services
Investment at fair value	$ 5,000,678	$ 7,231,580
Percentage of fair value	25.30%	43.30%
Consumer
Investment at fair value	$ 4,408,326	$ 4,385,028
Percentage of fair value	22.40%	26.20%
Financial
Investment at fair value	$ 4,548,801	$ 2,833,451
Percentage of fair value	23.10%	17%
Information Technology
Investment at fair value	$ 513,456	$ 513,656
Percentage of fair value	2.60%	3.10%
Real Estate
Investment at fair value	$ 5,241,095	$ 1,744,717
Percentage of fair value	26.60%	10.40%

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Other Equity	$ 10,000	$ 222,500
Short-term Non-banking Loans	18,293,034	15,285,932
Preferred stock	1,200,000	1,200,000
Common Stock	209,322	0
Total	19,712,356	16,708,432
Investment at fair value	19,712,356	16,708,432
Level 2
Other Equity	0	0
Short-term Non-banking Loans	0	0
Preferred stock	0	0
Common Stock	147,677	0
Total	147,677	0
Level 3
Other Equity	10,000	222,500
Short-term Non-banking Loans	18,293,034	15,285,932
Preferred stock	1,200,000	1,200,000
Common Stock	0
Total	19,503,034	16,708,432
Level 1
Other Equity	0
Short-term Non-banking Loans	0	0
Preferred stock	0	0
Common Stock	61,645	0
Total	61,645	0
Warrants	0	0
Investment at fair value	$ 436,175	$ 0

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Net realized loss	$ (600,000)	$ 138,770
Preferreds Stock [Member][
Balance at the beginning	1,200,000	1,200,000	$ 1,200,000
Purchases and other adjustments to cost	0		0
Balance at the end	1,200,000		1,200,000
Represents the member information pertaining to short term banking loans.
Balance at the beginning	15,285,932	11,650,000	11,650,000
Net change in unrealized depreciation	(51,602)		200,693
Purchases and other adjustments to cost	6,900,500		23,548,458
Sales and redemptions	(3,945,000)		(19,711,833)
Balance at the end	18,293,034		15,285,932
Represents the member information pertaining to other equity securities.
Balance at the beginning	222,500	$ 812,500	812,500
Net change in unrealized depreciation	(600,000)		600,000
Purchases and other adjustments to cost	0		10,000
Sales and redemptions	0		0
Net realized loss	(600,000)		0
Transfers out of level 3	(212,500)		0
Balance at the end	$ 10,000		$ 222,500

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Investment at fair value	$ 19,712,356	$ 16,708,432
Total Lable [Member]
Investment at fair value	19,503,034	16,708,432
Preferred Stock
Investment at fair value	1,200,000	1,200,000
Represents the member information pertaining to short term banking loans.
Investment at fair value	$ 18,293,034	$ 15,285,932
Represents the member information pertaining to short term banking loans. | Minimum | Level 3 | Interest rate
Interest rate	12	12
Represents the member information pertaining to short term banking loans. | Maximum | Level 3 | Interest rate
Interest rate	36	33
Represents the member information pertaining to other equity securities.
Investment at fair value	$ 10,000	$ 222,500

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Attributable To Level 3 Portfolio Investment [Member]
Net change in unrealized appreciation	$ 651,602	$ 651,371

RELATEDPARTY TRANSACTIONS (Deta

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

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
INCOME TAXES
Deferred tax liability	$ 461,000		$ 201,000
Income taxes payable	259,300	$ 159,000
Federal net oprating loss	168,000
Estimated federal net oprating loss	168,000
Carrying forward net oprating loss	$ 100,000
Effective Income Tax Rate Reconciliation, Percent	26%	28%
Prepaid income taxes	$ 178,600		$ 179,300

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Jan. 03, 2022
Line of credit, outstanding	$ 2,750,000	$ 0
Line of credit, maturity date	Jan. 03, 2027
Lyle A. Berman | Revolving line of credit
Line of credit facility maximum borrowing capacity			$ 5
Revolving line of credit | Lyle A. Berman | Revolving line of credit
Line of credit facility maximum borrowing capacity			5,000,000
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%

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
STOCK-BASED COMPENSATION
Granted | shares	870,000
Shares, Options outstanding at end of year | shares	870,000
Shares, Options exercisable at end of year | shares	870,000
Weighted Average Exercise Price, Options outstanding at beginning of year	$ 0
Weighted Average Exercise Price, Granted	2.11
Weighted Average Exercise Price, Exercised	0
Weighted Average Exercise Price, Forfeited	0
Weighted Average Exercise Price, Options outstanding at end of year	2.11
Weighted Average Exercise Price, Options exercisable at end of year	$ 2.11
Weighted Average Grant Date Fair Value for options granted during the period | $	$ 1,242,902

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Options Outstanding	870,000
Options Outstanding, Weighted Average Exercise Price	$ 2.11	$ 0
Options Exercisable	870,000
Options Exercisable, Weighted Average Exercise Price	$ 2.11
Options [Member]
Options Outstanding	870,000
Options Outstanding, Weighted Average Exercise Price	$ 2.11
Options Outstanding, Weighted Average Remaining Contractual Life	9 years 10 months 6 days
Options Outstanding, Aggregate Intrinsic Value	$ 175,100
Options Exercisable	870,000
Options Exercisable, Weighted Average Exercise Price	$ 2.11
Options Exercisable, Aggregate Intrinsic Value	$ 175,100

STOCK-BASED COMPENSATION (Det_3

STOCK-BASED COMPENSATION (Details 2)	3 Months Ended
	Mar. 31, 2023
STOCK-BASED COMPENSATION
Risk-free interest rate	3.48%
Expected volatility	90%
Expected life (years)	5 years
Expected dividend yield	0%

STOCK-BASED COMPENSATION (Det_4

STOCK-BASED COMPENSATION (Details Narrative) - shares	Mar. 31, 2023	Dec. 31, 2022
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) - shares	Aug. 09, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2019
SHAREHOLDERS EQUITY
Common stock issued		6,185,255
Reverse stock split Description	common shares on a 1-for-2.25 basis such that every 2.25 shares of common stock
Common stock, shares outstanding		6,185,255	6,185,255	4,795,739	4,794,184	4,918,845	4,918,845
Post reverse split share issue	111,111,111

PER-SHARE INFORMATION (Details)

PER-SHARE INFORMATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
PER-SHARE INFORMATION
Numerator: Net increase in net assets resulting from operations	$ (718,044)	$ 412,111
Denominator: Weighted-average number of common shares outstanding, basic	6,185,255	4,795,739
Basic and diluted net gain per common share	$ (0.12)	$ 0.09

OPERATING LEASES (Details)

OPERATING LEASES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
OPERATING LEASES
Operating lease costs	$ 5,504	$ 4,779
Variable lease cost	4,905	4,601
Short-term lease cost	8,634	7,432
Total	$ 19,043	$ 16,812

OPERATING LEASES (Details 1)

OPERATING LEASES (Details 1) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
OPERATING LEASES
Right-of-use assets	$ 10,903	$ 16,398
Operating Leases Liability	11,067	0
Less: short term portion	11,067	0
Long term portion	$ 0	$ 0

OPERATING LEASES (Details 2)

OPERATING LEASES (Details 2) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Maturity analysis under lease agreements
2022	$ 0		$ 18,164
2023	11,226		14,859
Total lease payments	11,226		33,023
Plus: interest	(159)		(1,035)
Present value of lease liabilities	$ 11,067	$ 16,562	$ 31,988

OPERATING LEASES (Details Narra

OPERATING LEASES (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2021	Dec. 31, 2022
OPERATING LEASES
Rent expense	$ 19,043	$ 16,812
Lease Term	1 year
Weighted-average discount rate	4.50%		4.50%

FINANCIAL HIGHLIGHTS (Details)

FINANCIAL HIGHLIGHTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2019
Per Share Data (1)
Net asset value at beginning of period	$ 2.89	$ 2.79	$ 2.43	$ 2.05	$ 2.30
Net investment income (loss)	(0.17)	0.09	0	0	(0.05)
Net realized and unrealized gains(losses)	0.01	(0.02)	0.50	(0.07)	0.27
Provision for income taxes	0.04	(0.02)	(0.14)	0	0
Issuance of stock options	0.24	0	0	0	0
Repurchase of common stock	0	0	0	0	0
Payment of common stock dividend	0	0	0	0	(0.11)
Net asset value at end of period	3.01	2.88	2.79	1.98	2.41
Ratio / Supplemental Data
Per share market value of investments at end of period	$ 3.19	$ 4.19	$ 2.81	$ 0.92	$ 1.76
Shares outstanding at end of period	6,185,255	4,795,739	4,794,184	4,918,845	4,918,845
Average weighted shares outstanding for the period	6,185,255	4,795,739	1,793,739	4,918,845	4,918,845
Net assets at end of period	$ 18,613,725	$ 13,826,160	$ 13,391,679	$ 9,786,615	$ 11,890,188
Average net assets	$ 18,242,642	$ 13,620,104	$ 12,516,283	$ 9,927,574	$ 12,911,895
Total investment return	(4.15%)	3.23%	14.81%	(3.30%)	4.90%
Portfolio turnover rate	21.63%	8.46%	40.24%	0.75%	0.93%
Ratio of operating expenses to average net assets	(35.82%)	(15.28%)	(16.20%)	(7.82%)	(6.06%)
Ratio of net investment income (loss) to average net assets	(20.92%)	14.24%	0.42%	0.87%	(4.87%)
Ratio of realized gains (losses) to average net assets	12.68%	4.20%	133.32%	1%	137.57%