false MP63 Fund Inc N-1A 0001071873 0001071873 2026-03-01 2026-08-31 0001071873 dripx:C000013263Member 2026-03-01 2026-08-31 0001071873 dripx:C000013263Member dripx:BasicMaterialsMember 2026-08-31 0001071873 dripx:C000013263Member dripx:CommunicationServicesMember 2026-08-31 0001071873 dripx:C000013263Member dripx:ConsumerCyclicalMember 2026-08-31 0001071873 dripx:C000013263Member dripx:ConsumerDefensiveMember 2026-08-31 0001071873 dripx:C000013263Member us-gaap:EnergySectorMember 2026-08-31 0001071873 dripx:C000013263Member us-gaap:FinancialServicesSectorMember 2026-08-31 0001071873 dripx:C000013263Member us-gaap:HealthcareSectorMember 2026-08-31 0001071873 dripx:C000013263Member oef:IndustrialSectorMember 2026-08-31 0001071873 dripx:C000013263Member us-gaap:MoneyMarketFundsMember 2026-08-31 0001071873 dripx:C000013263Member us-gaap:RealEstateSectorMember 2026-08-31 0001071873 dripx:C000013263Member us-gaap:TechnologySectorMember 2026-08-31 0001071873 dripx:C000013263Member oef:UtilitiesSectorMember 2026-08-31 0001071873 dripx:C000013263Member 2026-08-31 0001071873 dripx:C000013263Member dripx:MicrosoftCorpMember 2026-08-31 0001071873 dripx:C000013263Member dripx:RtxCorpMember 2026-08-31 0001071873 dripx:C000013263Member dripx:ExxonMobilCorpMember 2026-08-31 0001071873 dripx:C000013263Member dripx:TravelersCompaniesIncMember 2026-08-31 0001071873 dripx:C000013263Member dripx:UnionPacificCorpMember 2026-08-31 0001071873 dripx:C000013263Member dripx:AlphabetIncClassAMember 2026-08-31 0001071873 dripx:C000013263Member dripx:BankOfAmericaCorpMember 2026-08-31 0001071873 dripx:C000013263Member dripx:NextEraEnergyIncMember 2026-08-31 0001071873 dripx:C000013263Member dripx:EmersonElectricCoMember 2026-08-31 0001071873 dripx:C000013263Member dripx:AbbVieIncMember 2026-08-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure dripx:Holdings

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

 

Investment Company Act file number 811-09053

 

The MP 63 Fund, Inc.

(Exact name of registrant as specified in charter)

 

MP 63 Fund, Inc.

111 Pleasant Ridge Road

Harrison, NY 10528

(Address of principal executive offices)(Zip code)

 

MP 63 Fund Inc.

111 Pleasant Ridge Road

Harrison, NY 10528

(Name and address of agent for service)

 

Registrant's telephone number, including area code: (914) 925-0022

 

Date of fiscal year end: February 28

 

Date of reporting period: August 31, 2026

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

Item 1.  Reports to Stockholders.

 

 

 

 
 

 

SEMI-ANNUAL SHAREHOLDER REPORT

August 31, 2026 (Unaudited)

 

MP63 FUND, INC.

DRIPX

 

 

ADDITIONAL INFORMATION

 

This semi-annual shareholder report contains important information about the MP63 Fund, Inc. – DRIPX (the “Fund”) for the period March 1, 2026 to August 31, 2026.

 

You can find additional information about the Fund at www.mp63fund.com. You can also request this information by contacting us at 1-877-676-3386.

 

 

expense Information

 

What were the Fund costs for the past six months?

(based on a hypothetical $10,000 investment)

Fund Name Costs of a $10,000 investment Costs paid as a percentage of a $10,000 investment*
     
MP63 Fund, Inc. $36 0.69%

 

*Annualized

 

 

SECTOR WEIGHTINGS

 

The following chart gives a visual breakdown of the Fund by the sectors the underlying securities represent as a percentage of the portfolio of investments.

 

 

Basic Materials 5.54%
Communication Services 5.52%
Consumer Cyclical 8.16%
Consumer Defensive 7.66%
Energy 6.03%
Financial Services 14.18%
Healthcare 9.99%
Industrials 21.28%
Money Market Fund 1.04%
Real Estate 1.13%
Technology 13.66%
Utilities 5.81%

 

 

 

 

Fund statistics

 

  PORTFOLIO PORTFOLIO ADVISORY FEES
NET ASSETS: HOLDINGS: TURNOVER: PAID BY FUND:
$103,401,358 69 7.81% $176,986

 

 

 

top ten holdings

(% of Net Assets)

 

1. Microsoft Corp. 3.28%
2. RTX Corp. 3.14%
3. Exxon Mobil Corp. 2.66%
4. The Travelers Companies, Inc. 2.64%
5. Union Pacific Corp. 2.43%
6. Alphabet, Inc. Class A 2.36%
7. Bank of America Corp. 2.33%
8. NextEra Energy, Inc. 2.33%
9. Emerson Electric Co. 2.28%
10. AbbVie, Inc. 2.13%
  Total % of Net Assets 25.58%

 

 

 

Householding

 

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your MP63 Fund, Inc. documents not be householded, please contact MP63 Fund, Inc. at 1-877-676-3386, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by MP63 Fund, Inc. or your financial intermediary.

 

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, visit www.mp63fund.com or contact us at 1-877-676-3386.

 

 
 

 

 

Item 2. Code of Ethics.  Not applicable.

 

Item 3. Audit Committee Financial Expert.

 

The registrant's Board of Directors has determined that the registrant does not have an audit committee financial expert. The audit committee members and the full Board determined that, although none of its members meet the technical definition of an audit committee financial expert, the committee has sufficient financial expertise to adequately perform its duties under the Audit Committee Charter without the addition of a qualified expert.

 

Item 4. Principal Accountant Fees and Services. Not applicable.

 

Item 5. Audit Committee of Listed Companies. Not applicable.

 

Item 6.  Schedule of Investments.

 

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 7 of this form.

 

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

 

 

 

 

 

 

 

 

 

 

 

THE MP63 FUND, INC.

 

Ticker: DRIPX

 

 

 

SEMI-ANNUAL FINANCIAL STATEMENTS

August 31, 2026 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

The MP63 Fund, Inc.  
       
      Schedule of Investments
    August 31, 2026 (Unaudited)
       
 Shares      Fair Value
       
 COMMON STOCKS (United States) - 96.18%  
       
 Accident & Health Insurance - 1.71%  
          15,251   Aflac, Inc.  $                1,766,828
       
 Air-Conditioning &  Warm Air Heating Equipment & Commercial & Industrial Refrigeration Equipment - 0.76%  
          10,967   Carrier Global Corp.                       638,499
            1,054   Johnson Controls International PLC                       145,705
                            784,204
 Aircraft Engines & Engine Parts - 3.14%    
          15,614   RTX Corp.                    3,243,496
       
 Beverages - 2.10%  
          14,728   The Coca-Cola Co.                    1,305,932
            6,156   PepsiCo, Inc.                       863,933
                         2,169,865
 Cable & Other Pay Television Services - 1.09%  
          42,418   Comcast Corp., Class A                    1,129,167
       
 Computer Communications Equipment - 1.52%  
          14,186   Cisco Systems, Inc.                    1,567,411
       
 Construction & Mining Machinery - 2.11%  
            2,733   Caterpillar, Inc.                    2,179,486
       
 Construction, Mining & Materials Handling Machinery & Equipment - 1.82%  
            9,710   Dover Corp.                    1,885,973
       
 Converted Paper & Paperboard Prods (No Contaners/Boxes) - 0.77%  
            7,371   Kimberly Clark Corp.                       795,700
       
 Drawing & Insulating of Nonferrous Wire - 1.91%  
          13,252   Corning, Inc.                    1,970,970
       
 Electric & Other Services Combined - 1.76%  
          15,167   Duke Energy Corp.                    1,818,675
       
 Electric Services - 2.33%  
          29,270   Nextera Energy, Inc.                    2,410,092
       
 Electronic Computers - 1.07%  
            3,482   Apple, Inc.                    1,103,272
       
 Electronic & Other Electrical Equipment (No Computer Equipment) - 2.32%  
          15,458   Emerson Electric Co.                    2,356,418
                 46   GE Vernova, Inc.                         41,332
                         2,397,750
 Farm Machinery - 1.66%  
            2,618   Deere & Co.                    1,714,554
       
 Financial Services - 1.22%  
            3,820   American Express Co.                    1,261,249
       
 Fire, Marine & Casualty Insurance - 2.64%  
            7,468   The Travelers Companies, Inc.                    2,732,765
       
 General Industrial Machinery & Equipment - 1.86%  
            6,973   Illinois Tool Works, Inc.                    1,920,155
       
 Grain Mill Products - 0.30%  
            7,651   General Mills, Inc.                       315,221
       
 Guided Missiles & Space Vehicles & Parts - 0.58%  
            1,067   Lockheed Martin Corp.                     598,833
       
 Meat Packing Plants - 0.74%  
          35,206   Hormel Foods Corp.                       769,251
       
 Medical Instruments/Products - 1.43%  
          16,338   Medtronic PLC (Ireland)                    1,481,040
       
 Miscellaneous Manufacturing Industries - 0.78%  
          17,706   Amcor PLC                       812,528
       
 Motor Vehicles & Passenger Car Bodies - 0.17%  
               475   Tesla, Inc. *                       174,776
       
 National Commercial Banks - 8.59%  
          38,899   Bank of America Corp.                    2,409,404
            5,186   Capital One Financial Corp.                    1,112,449
            4,597   JPMorgan Chase & Co.                    1,636,624
            4,609   PNC Financial Services Group, Inc.                    1,104,455
          14,861   Truist Financial Corp.                       736,808
          30,652   US Bancorp                    1,887,550
                         8,887,290
 Natural Gas Distribution - 1.80%  
          22,466   National Fuel Gas Co.                    1,866,026
       
 Paints, Varnishes, Lacquers, Enamels & Allied Products - 1.84%  
          18,293   RPM International, Inc.                    1,904,301
       
 Perfumes, Cosmetics & Other Toilet Preparations - 1.19%  
          13,695   Colgate-Palmolive Co.                    1,230,085
       
 Petroleum Refining - 2.66%  
          17,089   Exxon Mobil Corp.                    2,750,475
       
 Pharmaceutical Preparations - 6.67%  
          14,865   Abbott Laboratories                    1,640,501
            8,596   AbbVie, Inc.                    2,204,186
            4,688   Johnson & Johnson                    1,246,305
          12,218   Merck & Co., Inc.                    1,805,332
                         6,896,324
 Radio & Tv Broadcasting & Communications Equipment - 2.13%  
          12,905   Qualcomm, Inc.                    2,200,044
       
 Railroads, Line-Haul Operating - 2.43%  
            8,359   Union Pacific Corp.                    2,513,301
       
 Refrigeration & Service Industry Machinery - 0.83%  
          12,295   Tennant Co.                       855,732
       
 Refuse Systems - 2.13%  
          10,074   Waste Management, Inc.                    2,205,400
       
 Retail - Catalog & Mail-Order Houses - 2.01%  
            8,007   Amazon.com, Inc. *                    2,079,978
       
 Retail-Eating Places - 1.80%  
          12,129   Yum! Brands, Inc.                    1,859,497
       
 Retail - Lumber & Other Building Materials Dealers - 1.78%  
            4,546   The Home Depot, Inc.                  1,490,315
            1,706   Lowe's Cos., Inc.                       349,218
                         1,839,533
 Retail - Variety Stores - 1.23%  
            1,042   Costco Wholesale Corp.                       983,533
            2,722   Walmart, Inc.                       285,456
                         1,268,989
 Semiconductors & Related Devices - 3.75%  
            2,413   Taiwan Semiconductor Manufacturing Co., Ltd.                    1,002,167
            5,731   Texas Instruments, Inc.                    1,495,275
            6,238   NVIDIA Corp.                    1,377,226
                         3,874,668
 Services - Computer Programming, Data Processing, Etc. - 2.36%  
            7,181   Alphabet, Inc. Class A                    2,436,872
       
 Services - Engineering, Accounting, Research, Management - 1.63%  
          13,252   Paychex, Inc.                    1,687,510
       
 Services - Miscellaneous Amusement & Recreation - 0.61%  
            5,889   The Walt Disney Co.                       633,362
       
 Services - Prepackaged Software - 3.28%  
            6,692   Microsoft Corp. (a)                    3,394,785
       
 Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics - 3.03%  
            6,234   Ecolab, Inc.                    1,765,469
            9,424   The Procter & Gamble Co.                    1,367,611
                         3,133,080
 Steel Works, Blast Furnaces & Rolling Mills (Coke Ovens) - 1.98%  
            8,201   Nucor Corp.                    2,047,298
       
 Surgical & Medical Instruments & Apparatus - 1.88%  
          10,345   Becton Dickinson & Co.                    1,945,998
       
 Telephone Communications (No Radiotelephone) - 0.57%  
          11,740   Verizon Communications, Inc.                       587,235
       
 Television Broadcasting Stations - 0.88%  
          22,220   Versant Media Group, Inc.                       913,686
       
 Water Supply - 1.72%  
          43,076   Essential Utilities, Inc.                    1,773,439
       
 Wholesale-Motor Vehicle Supplies & New Parts - 1.61%  
          12,265   Genuine Parts Co. *                    1,663,993
       
       
 TOTAL FOR COMMON STOCK (Cost $36,726,463) - 96.18%                  99,452,162
       
 LIMITED PARTNERSHIPS (United States) - 1.56%  
       
 Natural Gas Transmission - 1.56%  
          41,666   Enterprise Products Partners LP                    1,617,474
       
 TOTAL FOR LIMITED PARTNERSHIPS (Cost $738,406) - 1.56%                    1,617,474
       
 REAL ESTATE INVESTMENT TRUST (United States) - 1.13%  
            5,485   Simon Property Group, Inc.                    1,164,575
       
 TOTAL FOR REAL ESTATE INVESTMENT TRUST (Cost $694,021) - 1.13%                    1,164,575
       
 MONEY MARKET FUND - 1.04%  
     1,073,335   Fidelity Investments Money Market Funds - Gov't Portfolio, Class I 3.34% (Cost $1,073,335) **(a)  $                1,073,335
       
    TOTAL INVESTMENTS - 99.91% (Cost $39,232,225)                103,307,546
       
    OTHER ASSETS LESS LIABILITIES - 0.09%                         93,812
       
    NET ASSETS - 100.00%  $            103,401,358
       
* Non-income producing securities during the year.  
** Variable rate security; the money market rate shown represents the yield at August 31, 2026.  
(a) All or a portion of this security is held as collateral. Total value of collateral is $2,547,150 representing 2.53% of net assets.  

The accompanying notes are an integral part of these financial statements.

 
 

 

The MP63 Fund, Inc.  
   
Statement of Assets and Liabilities  
August 31, 2026 (Unaudited)  
   
Assets  
     Investments at Fair Value (Cost $39,232,225)  $     103,307,546
     Cash                    2,765
     Deposit with Broker                    1,458
     Receivables  
    Dividends and Interest                150,096
    Investments Sold                          -   
    Shareholder Subscriptions                    1,218
  Prepaid Expenses                  24,884
               Total Assets         103,487,967
Liabilities  
     Payables  
       Investments Purchased                  11,311
    Shareholder Redemptions                    7,659
 Other Accrued Expenses                  16,368
 Accrued Chief Compliance Officer Fees (Note 3)                    1,549
 Accrued Directors Fees (Note 3)                    3,700
 Accrued Administrative and Operating Services Fees (Note 3)                  10,310
 Accrued Accounting, Administration and Transfer Agency Fees (Note 3)                    4,613
 Accrued Advisor Fees (Note 3)                  31,099
               Total Liabilities                  86,609
   
Net Assets  $     103,401,358
   
Net Assets Consist of:  
     Capital Stock, $0.001 par value; 1 billion shares  
          authorized; 3,051,262 shares issued and outstanding  $                3,051
     Additional Paid in Capital           28,231,837
     Distributable Earnings           75,166,470
Net Assets  $     103,401,358
   
Net Asset Value and Offering Price ($103,401,358/3,051,262)  $                33.89
   
Redemption Price Per Share ($33.89 x 0.99)*  $                33.55
   
* The Fund will deduct a 1% redemption fee from redemption proceeds if purchased and redeemed
    within 6 months.  

 

The accompanying notes are an integral part of these financial statements.

 

 
 

 

The MP63 Fund, Inc.  
   
 Statement of Operations  
 For the six months ended August 31, 2026 (Unaudited)  
   
Investment Income:  
     Dividend Income (net of foreign withholding taxes of $2,895)  $         1,008,164
     Interest Income                  20,362
          Total Investment Income             1,028,526
Expenses:  
     Advisor fees (Note 3)                176,986
     Administrative and Operating Services fees (Note 3)                  63,344
     Accounting, Administrative and Transfer Agency fees (Note 3)                  28,958
     Registration fees                  18,950
     Legal fees                  12,197
     Printing and postage expense                    9,324
     Compliance fees (Note 3)                    9,148
     Audit fees                    8,690
     Custody fees                    6,987
     Insurance expense                    5,485
     Miscellaneous expense                    5,017
     Director fees (Note 3)                    4,537
          Total Expenses                349,623
   
Net Investment Income                678,903
   
Realized and Unrealized Gain on Investments:  
     Realized Gain on Investments             6,395,311
     Change in Unrealized Depreciation on Investments               (682,797)
Net Realized and Unrealized Gain on Investments             5,712,514
   
Net Increase in Net Assets from Operations  $         6,391,417
   

 

The accompanying notes are an integral part of these financial statements.

 
 

 

The MP63 Fund, Inc.      
       
Statements of Changes in Net Assets      
  (Unaudited)    
  For the   For the
  Six Months Ended   Year Ended
  August 31, 2026   February 28, 2026
From Operations:      
     Net Investment Income  $                 678,903    $           1,345,372
     Realized Gain on Investments                  6,395,311                 6,189,293
     Change in Unrealized Appreciation (Depreciation) on Investments                    (682,797)                 8,543,858
Increase in Net Assets from Operations                  6,391,417               16,078,523
       
From Distributions to Shareholders:      
      Distributions                               -                  (6,123,051)
Change in Net Assets from Distributions                               -                  (6,123,051)
       
From Capital Share Transactions      
     Proceeds From Sale of Shares                     638,326                 1,937,607
     Shares Issued on Reinvestment of Dividends                               -                    5,956,959
     Cost of Shares Redeemed      
          (net of redemption fees $160 and $0, respectively)                 (4,116,149)             (10,877,325)
Net Decrease from Shareholder Activity                 (3,477,823)               (2,982,759)
       
Net Increase in Net Assets                  2,913,594                 6,972,713
       
Net Assets at Beginning of Period/Year              100,487,764               93,515,051
Net Assets at End of Period/Year  $          103,401,358    $       100,487,764
       
Share Transactions:      
     Issued                       19,971                      66,876
     Reinvested                               -                       203,032
     Redeemed                    (126,801)                  (372,006)
Net Decrease in Shares                    (106,830)                  (102,098)
Shares Outstanding Beginning of Period/Year                  3,158,092                 3,260,190
Shares Outstanding End of Period/Year                  3,051,262                 3,158,092
       

 

The accompanying notes are an integral part of these financial statements.

 

 
 

 

                         
 The MP63 Fund, Inc.                        
                         
Financial Highlights                        
Selected data for a share outstanding throughout the period/year:                        
  (Unaudited)                      
  For the Six   For the   For the   For the   For the   For the  
  Months Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended  
  August 31, 2026   February 28, 2026   February 28, 2025   February 29, 2024   February 28, 2023   February 28, 2022  
Net Asset Value -                        
     Beginning of Period/Year  $                28.68    $                   28.68    $                   27.00    $                   25.10    $                   27.46    $                   25.17  
                         
Net Investment Income ** 0.22   0.43   0.42   0.47   0.43   0.41  
Net Gains (Losses) on Investments (realized and unrealized) 4.99   4.76   2.89   2.25   (1.71)   2.91  
     Total from Investment Operations 5.21   5.19   3.31   2.72   (1.28)   3.32  
                         
                         
Early Redemption Fees 0.00 * 0.00 * 0.00   0.00 * 0.00 * 0.00 *
                         
Distributions (From Net Investment Income) 0.00   (0.42)   (0.53)   (0.46)   (0.44)   (0.41)  
Distributions (From Capital Gains) 0.00   (1.63)   (1.10)   (0.36)   (0.64)   (0.62)  
    Total Distributions 0.00   (2.05)   (1.63)   (0.82)   (1.08)   (1.03)  
                         
Net Asset Value -                        
     End of Period/Year  $                33.89    $                   31.82    $                   28.68    $                   27.00    $                   25.10    $                   27.46  
                         
Total Return (a) 6.51%   18.69%   12.50%   10.93%   (4.71)%   12.98%  
                         
Ratios/Supplemental Data                        
    Net Assets - End of Period/Year (Thousands)                103,401                     100,488                       93,515                       91,299                       89,590                       98,116  
    Ratio of Expenses to Average Net Assets 0.69% *** 0.74%   0.72%   0.73%   0.72%   0.63%  
    Ratio of Net Investment Income to Average Net Assets 1.34% *** 1.47%   1.47%   1.83%   1.66%   1.47%  
    Portfolio Turnover Rate 7.81%   11.02%   17.74%   10.26%   5.90%   5.96%  
                         
                         
(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gain distributions
      and assume no redemption fees.                        
* Amount is less than $0.005                        
** Per share amounts are calculated using the average shares method.                      
*** Annualized                        
 The accompanying notes are an integral part of these financial statements.                      

 

 
 

 

THE MP63 FUND, INC.

Notes to Financial Statements

August 31, 2026 (Unaudited)

 

Note 1. Organization

 

The MP63 Fund, Inc. (the "Fund") is organized as a Maryland Corporation, incorporated on October 13, 1998, and registered as an open-end, diversified, management investment company under the Investment Company Act of 1940, as amended. The Fund's business and affairs are managed by its officers under the direction of its Board of Directors (the “Board”). The Fund's investment objective is to seek long-term capital appreciation for shareholders.

 

NOTE 2. Significant Accounting Policies

 

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund is an investment company that follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 applicable to investment companies.

 

A.     Security Valuation - Portfolio securities traded on a national securities exchange are stated at the last reported sales price or a market’s official close price on the day of valuation. Portfolio securities for which market quotations are readily available are valued at fair value. Portfolio securities for which market quotations are not considered readily available are valued at fair value on the basis of valuations furnished by a pricing service approved by the Board. Portfolio companies during this reporting period are all widely traded and pricing information is readily available. The Board maintains responsibilities for the fair value determinations under Rule 2a-5 under the Investment Company Act of 1940.

 

Mutual Funds must utilize various methods to measure the fair value of most of its investments on a recurring basis. Accounting principles generally accepted in the United States of America (“U.S. GAAP”) establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

 

Level 1 - Unadjusted quoted prices in active markets for identical assets the Fund has the ability to access.

 

Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuating the asset or liability, and would be based on the best information available.

 

To the extent that valuation is based on models or inputs that are less observable or unobservable, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. However, the inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of August 31, 2026:

 

Assets Level 1   Level 2   Level 3   Total
Common Stocks $ 99,452,162   $        -   $        -   $ 99,452,162
Limited Partnerships 1,617,474   -   -   1,617,474
Real Estate Investment Trust 1,164,575   -   -   1,164,575
Money Market Fund 1,073,335   -   -   1,073,335
Total $103,307,546   $        -   $        -   $103,307,546

 

The Fund did not hold any Level 3 assets during the six months ended August 31, 2026. The Fund did not engage in any derivative transactions during the six months ended August 31, 2026.

 

B.      Security Transactions and Related Investment Income - Securities transactions are accounted for on the trade date. Gains and losses on sales of securities are determined on a specific identification basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the appropriate country’s rules and tax rates.

 

C.      Federal Income Taxes - The Fund’s policy is to continue to comply with requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income as dividends to its shareholders. The Fund intends to distribute its net long-term capital gains and net short-term capital gains at least once a year. Therefore, no provision for federal income taxes is required.

 

The Fund recognizes the tax benefits of certain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. As of and during the year ended February 28, 2026, management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in the Fund’s open tax years or expected to be taken in the Fund’s 2026 tax returns. The Fund identifies its major tax jurisdictions as U.S. Federal and certain State tax authorities; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. As of and during the year ended February 28, 2026, the Fund did not incur any interest or penalties.

 

In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amends quantitative and qualitative income tax disclosure requirements in order to increase disclosure consistency, bifurcate income tax information by jurisdiction and remove information that is no longer beneficial. As a result of the Funds’ continued compliance with the IRC requirements of regulated investment companies and the Funds’ limited, exposure to foreign withholding taxes on dividends received, management has determined that there is no material impact of the ASU on the Funds’ financial statements.

 

D.     Dividends and Distributions to Shareholders - The Fund records dividends and distributions to shareholders on the ex-dividend date. The Fund will distribute its net investment income, if any, and net realized capital gains, if any, annually.

 

E.      Cash – The Fund maintains cash at its custodian which, at times, may exceed United States federally insured limits. Financial instruments that potentially subject the Fund to credit risk include cash deposits in excess of federally insured limits.

 

F.      Use of Estimates - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

 

G.     Share Valuation – The net asset value (the “NAV”) is generally calculated as of the close of trading on the New York Stock Exchange (the “Exchange”) (normally 4:00 p.m. Eastern time) every day the Exchange is open. The NAV is calculated by taking the total value of the Fund’s assets, subtracting its liabilities, and then dividing by the total number of shares outstanding, rounded to the nearest cent. The offering price and redemption price per share are equal to the net asset value per share, except for shares redeemed within 6 months.

 

NOTE 3. Investment Advisory Agreement And Other Related Party Transactions

 

The Fund has entered into an investment advisory agreement (the "Agreement") with The Moneypaper Advisor, Inc. (the "Advisor"). Under this Agreement, the Advisor provides the Fund with investment advice and supervises the Fund's investments. As compensation for the services rendered, the Fund pays the Advisor a fee accrued daily based on an annualized rate of 0.35% of the daily net asset value. For the six months ended August 31, 2026, the Advisor earned fees of $176,986. At August 31, 2026, the Fund owed the Advisor $31,099 for advisory fees.

 

The Advisor has voluntarily agreed to waive its fee and to reimburse the Fund for other expenses if the total operating expenses of the Fund exceed an annual rate of 1.25% of average daily net assets. The Advisor did not waive any fees or reimburse the Fund during the six months ended August 31, 2026.

 

The Fund has agreements in place with Mutual Shareholder Services ("MSS") to provide administrative, transfer agency, and fund accounting services. Under these agreements, MSS is paid a certain fixed annual fee for accounting and administration services which increases incrementally at specified asset thresholds, plus blue sky servicing fees paid on a per filing basis. For transfer agency services, MSS receives a fixed fee per account, subject to an annual minimum. For the six months ended August 31, 2026, Fund expenses amounted to $28,958 for MSS services of accounting, administration and transfer agency services. At August 31, 2026, $4,613 was due to MSS for services provided.

 

The Fund entered into an Administrative and Operating Services Agreement with Moneypaper Publications LLC, the parent of the Advisor. Under this agreement, Moneypaper Publications LLC provides services to the Fund that are necessary for operation and not provided by other parties. For these services, the Fund is contractually obligated to pay Moneypaper Publications LLC a flat monthly fee which is not to exceed $18,500. However, Moneypaper Publications LLC has charged the Fund only $10,500 per month for these services since January 1, 2023. Moneypaper Publications LLC does not currently intend to increase the fee, although it may seek to do so in the future. These fund servicing expenses amounted to $63,344 for the six months ended August 31, 2026. At August 31, 2026, the Fund owed $10,310 for fund servicing expenses.

 

Certain officers of the Advisor are also officers and a director of the Fund. One (1) director of the Fund’s four (4) member Board of Directors is the President of the Advisor. The Fund currently pays each Independent Director an annual retainer of $2,000 for regular compensation. The Fund currently does not pay special compensation to any Director. Vita Nelson, as the Interested Director, does not receive any compensation from the Fund for her services as a Director. For the six months ended August 31, 2026, the Fund incurred $4,537 in regular compensation director fees and expenses. The Fund paid the Chief Compliance Officer $9,148 for the six months ended August 31, 2026.

 

NOTE 4. SEGMENT REPORTING

 

       The Fund included herein is deemed to be an individual reporting segment and is not part of a consolidated reporting entity. The objective and strategy of the Fund is used by the investment manager to make investment decisions, and the results of the operations, as shown in the statements of operations and the financial highlights for the Fund is the information utilized for the day-to-day management of the Fund. The Fund is party to the expense agreements as disclosed in the notes to the financial statements and resources are not allocated to the Fund based on performance measurements. Due to the significance of oversight and their role, the Advisor is deemed to be the Chief Operating Decision Maker.

 

NOTE 5. Investment Transactions

 

For the six months ended August 31, 2026, purchases and sales of securities, excluding short-term investments, aggregated $7,760,353 and $9,944,906, respectively.

 

NOTE 6. TaX INFORMATION

 

Cumulative unrealized appreciation (depreciation) on a tax basis amounted to the following: Unrealized appreciation $65,026,217, Unrealized depreciation ($565,296), Net unrealized appreciation $64,460,921.

 

For Federal income tax purposes, the cost of investments owned at February 28, 2026 was $35,334,461. The difference between book and tax cost of investments represents the deferral of losses on wash sales and partnership basis adjustments.

 

Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among the components of net assets in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gain as ordinary income for tax purposes. Due to permanent book to tax differences the following adjustments have been made by management as of February 28, 2026. Reclassifications have no effect on net assets, results of operations or net asset value per share of the Fund.

 

Paid In Capital $  (170)
Distributable Earnings $     170

 

The permanent differences were mainly due to non-deductible partnership expenses.

 

As of February 28, 2026, the components of distributable earnings on a tax basis were as follows: undistributed ordinary income $85,059, undistributed capital gains $4,229,073, net unrealized appreciation $64,460,921, for a total distributable earnings of $68,775,053.

 

The tax character of distributions paid during the fiscal year ended February 28, 2026 was as follows:

Distributions paid from: Ordinary income $1,376,744, Long term capital gains $4,746,307.

 

The tax character of distributions paid during the fiscal year ended February 28, 2025 was as follows:

Distributions paid from: Ordinary income $1,621,185, Long term capital gains $3,534,179.

 

There were no distributions paid for the six months ended August 31, 2026.

 

NOTE 7. INDEMNIFICATIONS

 

In the normal course of business, the Fund enters into contracts that contain general indemnification to other parties. The Fund’s maximum exposure under these contracts is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The Fund expects the risk of loss to be remote.

 

NOTE 8. MARKET RISK

 

Overall market risks may also affect the value of the Fund. Factors such as domestic economic growth and market conditions, interest rate levels and political events affect the securities markets. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, sanctions, recessions and depressions, or other events could have a significant impact on the Fund and its investments, and may impair market liquidity, thereby increasing liquidity risk. The Fund could lose money over short periods due to short-term market movements and over longer periods during more prolonged market downturns. During a general market downturn, multiple asset classes may be negatively affected. Changes in market conditions and interest rates can have the same impact on all types of securities and instruments.

 

NOTE 9. NEW ACCOUNTING PRONOUNCEMENTS

 

In September 2023, the SEC adopted a final rule relating to “Names Rule” under the 1940 Act. The amendments expanded the rule to require more funds to adopt an 80 percent investment policy, including funds with names suggesting a focus in investments with particular characteristics (e.g., growth or value) or with terms that reference a thematic investment focus (e.g., environmental, social, or governance factors). The amendments will require that a fund review its name for compliance with the rule. If needed, a fund may need to adopt an 80 percent investment policy and review its portfolio assets' treatment under such policy at least quarterly. The rule also requires additional prospectus disclosure and reporting and record keeping requirements. The amendments became effective on April 9, 2024. The compliance date is June 11, 2026 for Funds with more than $1 billion in assets and December 11, 2026 for Funds with less than $1 billion in assets. Management is currently evaluating the impact of the new rule.

 

NOTE 10. SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through the date the financial statements were issued. Based upon this evaluation, the Fund has determined no subsequent events have occurred which would require adjustment to or disclosure in the financial statements.

 

 

 

 

 
 

 

THE MP63 FUND, INC.

Additional Information

August 31, 2026 (Unaudited)

 

Information Regarding Proxy Voting

 

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, are available without charge upon request by (1) calling the Fund at 1-877-676-3386 and (2) from Fund’s documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov.

 

Information Regarding Portfolio Holdings

 

The Fund files a complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT.  The Fund’s first and third fiscal quarters end on May 31 and November 30. The Fund’s Form N-PORT’s are available on the SEC’s website at http://sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room).  You may also obtain copies by calling the Fund at 1-877-676-3386.

 

2026 Annual Renewal of the Investment Advisory Agreement between MP 63 Fund, Inc., on behalf of its separate series, the MP 63 Fund (the “Fund”), and Moneypaper Advisor, Inc. (the “Adviser”).

 

The Board of Directors (the “Board”) of MP 63 Fund, Inc., including the Independent Directors voting separately, reviewed and approved the continuance of the Fund’s Investment Advisory Agreement (the “Agreement”) with Moneypaper Advisor, Inc. (the “Adviser”) at a meeting held on April 15, 2026 (the “Meeting”). All of the Directors, including all of the Independent Directors, participated in the Board’s consideration and approval of these matters.

 

At the Meeting, legal counsel to the Independent Directors discussed with the Board, the Independent Directors, and representatives of the Adviser the legal and regulatory framework governing renewal of the Agreement, including the relevant statutory provisions and case law. Counsel reviewed the types of information the Board was required to request and evaluate, and the Adviser was required to furnish, in support of the Board’s consideration. In particular, the Directors requested and reviewed information concerning: (i) the nature, extent, and quality of the services provided by the Adviser; (ii) the investment performance of the Fund and the Adviser; (iii) the costs of the services provided and the profits realized by the Adviser and its affiliates from their relationship with the Fund; (iv) the financial condition of the Adviser; (v) the extent to which economies of scale would be realized as the Fund grows; and (vi) whether fee levels reflect any such economies of scale for the benefit of Fund shareholders. The Board then discussed these factors in detail with counsel and the Adviser.

 

The Board did not identify any single factor or information that was most relevant to its consideration to approve the Agreement, and each Director may have been given different weight to the various factors considered. The following is a summary of the Board’s consideration of various factors:

 

With respect to the nature, extent, and quality of the services provided by the Adviser, the Directors reviewed the background, qualifications, education, and experience of the Adviser’s investment, operational, and compliance personnel. The Directors considered the responsibilities and relevant financial services experience of the personnel supporting the Fund, including portfolio management, research, trading, administration, and compliance. The Directors also reviewed the Adviser’s investment process, which uses information from sources including Bloomberg and Morningstar, together with proprietary analytical tools. The Board considered the Adviser’s role in coordinating services provided to the Fund and noted that the Fund is the Adviser’s only client.

 

After reviewing the materials provided by the Adviser and discussing the nature, extent, and quality of the services provided, the Board concluded that the Adviser’s services were of high quality, reasonable, and consistent with the Board’s expectations and the requirements of the Investment Advisory Agreement.

 

With respect to the Fund’s performance, the Directors reviewed results over various periods against relevant securities indices and comparable mutual funds. The Board considered the Fund’s classification in Morningstar’s Large Cap Value category and reviewed comparisons to the Russell 1000 Value Index and the S&P 500 Index.

 

Among other performance metricks, the Board reviewed the Fund’s performance as of April 1, 2026. For the one-year period, the Fund returned 15.99%, and its annualized three-year return was 11.68%. The Board also reviewed the Fund’s year-to-date return of 3.54%, annualized five-year return of 7.10%, annualized ten-year return of 9.94%, and annualized fifteen-year return of 10.27%. For comparison, the S&P 500 Composite Index returned 18.2% for the one-year period and 18.6% annualized for the three-year period.

 

After considering and discussing the Fund’s performance, the Board concluded that the results demonstrated the Adviser’s ability to manage the Fund’s assets over the long term through different market environments. The Board determined that the Fund’s performance was satisfactory in light of the Fund’s investment strategies and objective.

 

With respect to the fees and expenses paid by the Fund, the Board noted that the Adviser is paid an advisory fee of 0.35% of the Fund’s assets, with no contractual breakpoint schedule. For the twelve-month period from March 31, 2025, through April 1, 2026, the Adviser earned advisory fees of $349,396.53. The Directors reviewed comparative information showing that the Fund’s 0.35% advisory fee was below the fees charged by the comparable funds presented in the review materials. The Board also considered the Fund’s gross expense ratio of 0.23% and net expense ratio of 0.78%, based on the comparative expense schedule, which reported approximately $99.9 million in Fund assets. After discussion, the Board concluded that the Adviser’s fee and the Fund’s total expense ratio were reasonable and acceptable.

 

The Directors considered the other benefits that the Adviser and its affiliates may derive from their relationship with the Fund. The Adviser reported that it does not accept soft-dollar compensation and that the Fund does not pay Rule 12b-1 fees. The Directors also considered the reputational and other intangible benefits associated with the Adviser’s relationship with the Fund.

 

After reviewing and considering the foregoing and other relevant information, the Directors concluded that the other benefits derived by the Adviser and its affiliates from their relationship with the Fund were reasonable.

 

The Directors considered that the Adviser receives no fees related to management of the Fund other than the advisory fee. The Board also reviewed the services provided by the Adviser’s parent company, Moneypaper Publications, LLC, for a monthly fee of $10,500, or $126,000 during the twelve-month period reviewed. These services include preparing shareholder communications and reports; maintaining and reviewing the Fund’s website; assisting the Fund’s Chief Compliance Officer; supporting required Fund filings and service-provider relationships; providing customer service and Spanish-language assistance; and performing other administrative activities for the Fund.

 

The Directors considered these administrative fees as a potential fall-out benefit arising from the Adviser’s relationship with the Fund. The Board noted that the fees were included in the Fund’s total expense ratio and considered the nature and extent of the services provided by Moneypaper Publications, LLC.

 

With respect to the Adviser’s profitability resulting from its relationship with the Fund, the Directors reviewed the Adviser’s financial information and discussed the direct and indirect costs and benefits associated with serving the Fund. The Directors noted that the Fund is the Adviser’s only client and therefore the Adviser’s financial results reflect its relationship with the Fund. The Board also considered the financial condition of the Adviser and its parent company and concluded that the Adviser was financially capable of satisfying its obligations under the Investment Advisory Agreement.

 

After considering these matters, the Board concluded that the costs of the services provided to the Fund and the profits realized by the Adviser and its affiliates from their relationship with the Fund were reasonable.

 

With respect to economies of scale, the Directors noted that the Investment Advisory Agreement does not contain breakpoints that would reduce the advisory fee rate as Fund assets increase. The Directors recognized that breakpoints may be an appropriate means of sharing economies of scale if the Fund experiences substantial asset growth. In light of the Fund’s approximately $99.9 million in net assets as reported in the comparative expense schedule, the current 0.35% advisory fee, and the information presented concerning the costs of serving the Fund, the Board concluded that the Fund had not reached an asset level at which additional breakpoints were necessary. The Board concluded that the fee level was satisfactory and appropriately reflected the current circumstances for the benefit of Fund shareholders.

 

Finally, the Directors reviewed the Fund’s brokerage practices and the Adviser’s soft-dollar practices. The Board noted that the Adviser used Interactive Brokers, selected in part because of its per-share pricing, execution, and reporting practices. The Adviser reported that it did not accept soft-dollar compensation and had no plans to participate in a commission-recapture program. The Directors concluded that the Fund’s brokerage arrangements and commission practices were reasonable.

 

Having requested and received the information that the Directors, including the Independent Directors, believed reasonably necessary to evaluate renewal of the Investment Advisory Agreement, and having received the advice of legal counsel, the Directors exercised their business judgment and concluded that the overall arrangement under the Agreement was reasonable and that continuation of the Agreement was in the best interests of the Fund and its shareholders. The Independent Directors concluded that no single factor was determinative; rather, they considered, weighed, and balanced all the factors discussed above. Following their review of the Agreement with management and an opportunity for the Independent Directors to meet in executive session without representatives of the Adviser present, the Board, including all the Independent Directors voting separately, approved continuation of the Investment Advisory Agreement for an additional annual period.

 

 

 

 

 

 
 

 

 

 

 

 

Investment Adviser

Moneypaper Advisor, Inc.

 

 

Distributor

Arbor Court Capital, LLC

 

 

Transfer Agent, Shareholder Servicing Agent, &

Administrator

Mutual Shareholder Services, LLC

 

 

Custodian

Argent Institutional Trust Company

 

 

Legal Counsel

Ropka Law, LLC

 

 

Independent Registered Public Accounting Firm

Cohen & Company, Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This report is provided for the general information of MP63 Fund, Inc. shareholders. It is not authorized for distribution unless preceded or accompanied by an effective prospectus, which contains more complete information about the Fund.

 

 
 

 

 

 

 

Item 8.  Changes in and Disagreements with Accountants for Open-End Management Investment Companies. Not applicable.

 

Item 9. Proxy Disclosures for Open-End Management Investment Companies. Not applicable.

 

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. The information is included as part of the material filed under Item 7 of this Form.

 

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract. The information is included as part of the material filed under Item 7 of this Form.

 

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable.

 

Item 13.  Portfolio Managers of Closed-End Management Investment Companies. Not applicable.

 

Item 14.  Purchase of Equity Securities By Closed End Management Investment Company and Affiliates. Not applicable.

 

Item 15.  Submission of Matters to a Vote of Security Holders.

No Changes.

 

Item 16.  Controls and Procedures.

 

(a)       The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing of this report.

 

(b)       There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 17.  Securities Lending Activities for Closed-End Management Investment Companies. Not applicable.

 

Item 18. Recovery of Erroneously Awarded Compensation.

(a) Not applicable.

 

(b) Not applicable.

 

Item 19.  Exhibits.

 

(a)(1) Not applicable.

 

(a)(2)Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

(a)(3) Not applicable.

 

(b)Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

 
 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

The MP 63 Fund, Inc.

 

By /s/Vita Nelson

*Vita Nelson

President

(principal executive officer)

 

Date November 6, 2026

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By /s/Vita Nelson

*Vita Nelson

President

(principal executive officer)

 

Date November 6, 2026

 

By /s/Mario Medina

*Mario Medina

Treasurer

(principal financial officer)

 

Date November 6, 2026

 

 

* Print the name and title of each signing officer under his or her signature.


ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

mp63ex99rev.htm

mp63ex906cert.htm

XBRL SCHEMA FILE

XBRL DEFINITION FILE

XBRL LABEL FILE

XBRL PRESENTATION FILE

IDEA: R1.htm

IDEA: R2.htm

IDEA: R3.htm

IDEA: FilingSummary.xml

IDEA: MetaLinks.json

IDEA: mp63ncsrs_htm.xml