Mill City Ventures III Reports Q1 2025 Financial Results with Increased Net Assets

Mill City Ventures III, Ltd. reported its financial results for the first quarter of 2025, revealing a net increase in net assets resulting from operations of $451,746, or $0.07 per share, compared to $382,103, or $0.06 per share, in the same period last year. The company generated total investment income of $778,027, a decrease from $832,667 in the prior year, primarily due to a reduction in interest income from its loan portfolio, which averaged an interest rate of 20.25%. Operating expenses increased to $379,783 from $361,087, driven by higher payroll and professional fees.

In terms of asset management, Mill City Ventures reported total assets of $19,849,016 as of March 31, 2025, down from $20,473,436 at the end of 2024. The decrease was largely attributed to a significant reduction in cash and cash equivalents, which fell to $1,749,089 from $6,026,110. The company’s investments at fair value increased to $16,978,160, up from $13,453,561, reflecting a strategic shift in its investment portfolio. Notably, the company made $3,366,196 in investment purchases during the quarter, compared to only $73,438 in the same period last year.

Mill City Ventures also reported a notable change in its investment strategy, with a focus on short-term non-banking loans and commercial business loans, which now represent 36.7% and 60.4% of its investment portfolio, respectively. The company’s total liabilities decreased significantly to $269,717 from $715,447, primarily due to a reduction in accrued payroll liabilities and accounts payable. The company repurchased 322,482 shares of common stock during the quarter, reflecting its ongoing commitment to returning value to shareholders.

Looking ahead, Mill City Ventures expressed optimism about its investment strategy and operational performance. The company aims to continue providing short-term specialty finance solutions while managing its portfolio to maximize returns. However, it acknowledged the inherent risks associated with market conditions and the performance of its portfolio companies. The management team remains focused on identifying new investment opportunities and maintaining compliance with regulatory requirements as it navigates the evolving financial landscape.