N-CSR 1 hcm-funds_ncsr.htm N-CSR

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 811-22655

Northern Lights Fund Trust III

(Exact name of registrant as specified in charter)

225 Pictoria Drive, Suite 450 Cincinnati, OH 45246

(Address of principal executive offices) (Zip code)

Eric Kane

80 Arkay Drive, Hauppauge, NY 11788

(Name and address of agent for service)

Registrant's telephone number, including area code: 631-470-2688

Date of fiscal year end: 6/30

Date of reporting period: 6/30/21

Item 1. Reports to Stockholders.

HCM Tactical Growth Fund

Class A Shares: HCMGX

Class I Shares: HCMIX

Class R Shares: HCMSX

Investor Class Shares: HCMDX

HCM Dividend Sector Plus Fund

Class A Shares: HCMNX

Class I Shares: HCMQX

Class R Shares: HCMZX

Class A1 Shares: HCMWX

Investor Class Shares: HCMPX

HCM Income Plus Fund

Class A Shares: HCMEX

Class I Shares: HCMLX

Investor Class Shares: HCMKX

Annual Report

June 30, 2021

1-855-969-8464

www.howardcmfunds.com

Distributed by Northern Lights Distributors, LLC

Member FINRA/SIPC

(HOWARD CAPITAL MANAGEMENT LOGO)

Annual Report

We are pleased to present you with the HCM Tactical Growth Fund, HCM Dividend Sector Plus Fund, and HCM Income Plus Fund Annual Report for the year ended June 30, 2021.

The fiscal year featured a world pandemic, vaccine roll outs, reopening of economies, and attempts to return to pre-pandemic lifestyles. The second quarter of 2021 witnessed a major turnaround in the employment numbers as May saw national unemployment levels drop to 5.8% and June added another 850,000 jobs. Small businesses have struggled to fill jobs as many of the previously laid off workers moved to other sectors. With unemployment benefits owing to the pandemic set to expire in September, many will likely be looking for work at that time. Furthermore, worries over the emerging “Delta” variant of COVID-19 are still looming large, even as the vaccination drive gathers steam. While the country grapples with the expectation of returning to normalcy with reopening of businesses as well as public spaces becoming fully accessible again, this overall cautious optimism needs to be sustained to achieve the envisioned progress.

Supply chain issues continue to put pressure on prices with no end in sight; supply simply can not keep up with demand. This demand is being supported by fiscal stimulus announced by the Biden administration and the continued purchase of $120 billion of Treasury and mortgage securities a month. We have observed a massive increase in the M2 money supply that is approximately 32% higher than pre-COVID levels. We believe the huge increase in the money supply will drive inflation over the long term. We are somewhat concerned that inflation and inflation expectations are running above the Fed’s long-term target of 2%, but we have not hit maximum employment yet. We think the Fed should not be overly concerned with a low-2s inflation expectation-reading for a quarter or two.

Expansionary monetary policy may drive inflation over the long term but the near-term consumer spending and available cash for investments can jump start the economy and push the markets higher. We have continuously discussed and analyzed the cash buildup for retail and institutional investors alike. Bullish retail investors poured nearly $28 billion in the stock market in June, the largest monthly inflow since 2014. Additionally, nearly 20 million new retail brokerage accounts have been added in the past year and a half. We believe the substantial cash buildup coupled with the millions of new investors entering the market can easily continue to set new highs. Everyone knows we love new highs. The only way a stock, bond, commodity, or an index can double in value is to hit new highs the whole way up.

One year performance, as of 6/30/2021, for the A-share of our mutual funds is as follows: Tactical Growth: 65.30%; Dividend Sector Plus: 59.55%; Income Plus: 32.85%. The HCM BuyLine®, our proprietary quantitative model that helps us determine when and how much to be invested in the equity market, has remained positive since mid-April 2020. We have maintained a bullish outlook on technology and growth stocks through their consolidation in the beginning of the 2021 calendar year. The technology sector has picked up momentum recently which is panning out very well for us. We see this continuing into the third and fourth quarter of the year. As we look beyond the reporting period, we remain cautiously optimistic. We see the markets, along with the economy, continuing the recovery we are experiencing now. The HCM BuyLine® will be our compass and we are confident it will lead us in the right direction.

Thank you for being a shareholder of the HCM Tactical Growth Fund, HCM Dividend Sector Plus Fund, and HCM Income Plus Fund.

Sincerely,
Vance Howard

1145 Hembree Road, Roswell, GA 30076 | www.howardcm.com | P: 770-642-4902 | F: 770-642-4906

HCM Tactical Growth Fund

PORTFOLIO REVIEW (Unaudited)(Continued)

June 30, 2021

The Fund’s performance figures* for the period ended June 30, 2021 compared to its benchmarks:

				Annualized
		Annualized	Annualized	Inception** -
	One Year	Three Year	Five Year	June 30, 2021
HCM Tactical Growth Fund – Class A	65.30%	24.54%	26.51%	16.53%
HCM Tactical Growth Fund – Class A with load	55.76%	22.09%	25.03%	15.54%
HCM Tactical Growth Fund – Class I	65.70%	24.63%	26.56%	16.56%
HCM Tactical Growth Fund – Class R	65.26%	24.52%	26.49%	16.51%
HCM Tactical Growth Fund – Investor Class	64.13%	23.60%	25.57%	15.77%
S&P 500 TR Index***	40.79%	18.67%	17.65%	14.17%
HFRX Equity Hedge Index****	20.40%	3.52%	4.83%	3.00%

Performance data quoted here represents past performance. The performance comparison includes reinvestment of all dividends and capital gain distributions and has been adjusted for the Class A maximum applicable sales charge of 5.75%. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s total annual operating expenses are 2.22% for Class A shares, 1.97% for Class I shares, and 2.97% for Investor Class shares as per the November 1, 2020 prospectus. The Fund’s total annual operating expenses, before fee waiver and expense reimbursement, are 2.76% for Class R shares per the July 8, 2014 prospectus. Redemptions made in less than 30 days of purchase may be assessed a redemption fee of 1.00%. For performance information current to the most recent month-end, please call toll-free 1-855-969-8464.

Inception date is July 30, 2014.

***

The S&P 500 TR Index is a widely accepted, unmanaged index of U.S. stock market performance which does not take into account charges, fees and other expenses. Investors cannot invest directly in an index or benchmark.

****

The HFRX Equity Hedge Index is an unmanaged index designed to measure daily performance representative of long-short equity hedge funds. Indices are adjusted for the reinvestment of capital gains and income dividends. Investors cannot invest directly in an index or benchmark.

HCM Tactical Growth Fund

PORTFOLIO REVIEW (Unaudited)(Continued)

June 30, 2021

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

HCM Tactical Growth Fund

PORTFOLIO REVIEW (Unaudited)(Continued)

June 30, 2021

The Fund’s holdings by industry sector and investment type as of June 30, 2021 were as follows:

Industry Sector/Investment Type	% of Net Assets
Exchange Traded Funds
Equity - Large Cap Blend		53.4	%
Equity - Large Cap Growth		35.5	%
Equity - Broad Market Blend		3.6	%
Equity - Broad Market Growth		1.1	%
Common Stocks
Automotive		1.5	%
E-Commerce Discretionary		0.9	%
Semiconductors		0.5	%
Technology Hardware		0.3	%
Advertising		0.1	%
Beverages		0.1	%
Home Construction		0.1	%
Industrial Support Services		0.1	%
Internet Media Services		0.1	%
Retail - Discretionary		0.1	%
Software		0.1	%
Specialty Finance		0.1	%
Technology Services		0.1	%
Tobacco		0.1	%
Money Market Fund		0.0	%
Other Assets Less Liabilities		2.2	%
		100.0	%

Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.

HCM Dividend Sector Plus Fund

PORTFOLIO REVIEW (Unaudited)

June 30, 2021

The Fund’s performance figures* for the period ended June 30, 2021, compared to its benchmark:

				Annualized
		Annualized	Annualized	Inception** -
	One Year	Three Year	Five Year	June 30, 2021
HCM Dividend Sector Plus Fund – Class A	59.55%	18.68%	18.66%	16.57%
HCM Dividend Sector Plus Fund – Class A with load	50.36%	16.35%	17.26%	15.48%
HCM Dividend Sector Plus Fund – Class I	60.00%	18.93%	18.81%	16.69%
HCM Dividend Sector Plus Fund – Class R	59.55%	18.78%	18.72%	16.62%
HCM Dividend Sector Plus Fund – Class A1	59.14%	18.48%	18.49%	16.44%
HCM Dividend Sector Plus Fund – Class A1 with load	50.04%	16.15%	17.09%	15.35%
HCM Dividend Sector Plus Fund – Investor Class	58.40%	17.80%	17.79%	15.75%
S&P 500 TR Index***	40.79%	18.67%	17.65%	14.78%

Performance data quoted here represents past performance. The performance comparison includes reinvestment of all dividends and capital gain distributions and has been adjusted for the Class A and Class A1 maximum applicable sales charge of 5.75%. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s total annual operating expenses are 2.09% for Class A shares, 2.24% for Class A1 shares, 1.84% for Class I shares and 2.84% for Investor Class shares per the November 1, 2020 prospectus. The Fund’s total annual operating expenses, before fee waiver and expense reimbursements, are 2.36% for Class R shares per the March 3, 2015 prospectus. Redemptions made less than 30 days of purchase may be assessed a redemption fee of 1.00%. For performance information current to the most recent month-end, please call toll-free 1-855-969-8464.

Inception date is March 11, 2015.

***

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

HCM Dividend Sector Plus Fund

PORTFOLIO REVIEW (Unaudited)(Continued)

June 30, 2021

The Fund’s holdings by industry sector and investment type as of June 30, 2021 were as follows:

Industry Sector/Investment Type	% of Net Assets
Exchange Traded Funds
Equity - Large Cap Blend		81.3	%
Equity - Broad Market Blend		11.9	%
Common Stocks
Electric Utilities		0.4	%
Health Care Facilities & Services		0.4	%
Entertainment Content		0.3	%
Oil & Gas Producers		0.3	%
Technology Services		0.3	%
Banking		0.2	%
Containers & Packaging		0.2	%
Insurance		0.2	%
Oil & Gas Services & Equipment		0.2	%
Aerospace & Defense		0.1	%
Automotive		0.1	%
Beverages		0.1	%
Chemicals		0.1	%
Food		0.1	%
Home & Office Products		0.1	%
Home Construction		0.1	%
Industrial Support Services		0.1	%
Metals & Mining		0.1	%
Publishing & Broadcasting		0.1	%
Retail - Consumer Staples		0.1	%
Retail - Discretionary		0.1	%
Semiconductors		0.1	%
Technology Hardware		0.1	%
Tobacco		0.1	%
Transportation & Logistics		0.1	%
Money Market Fund		0.0	%
Other Assets Less Liabilities		2.7	%
		100.0	%

Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.

HCM Income Plus Fund

PORTFOLIO REVIEW (Unaudited)

June 30, 2021

The Fund’s performance figures* for the period ended June 30, 2021, compared to its benchmark:

			Annualized	Annualized
		Annualized	Inception** -	Inception*** -
	One Year	Three Year	June 30, 2021	June 30, 2021
HCM Income Plus Fund – Class A	32.85%	17.03%	13.55%	—
HCM Income Plus Fund – Class A with load	25.22%	14.74%	12.11%	—
HCM Income Plus Fund – Class I	33.15%	—	—	29.77%
HCM Income Plus Fund – Investor Class	31.93%	16.12%	12.75%	—
Bloomberg Barclays US Aggregate Bond Index ****	(0.33)%	5.34%	3.58%	3.55%

Performance data quoted here represents past performance. The performance comparison includes reinvestment of all dividends and capital gain distributions and has been adjusted for the Class A maximum applicable sales charge of 5.75%. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s total annual operating expenses, before fee waiver and expense reimbursements, are 1.70% for Class A shares, 2.45% for Investor Class shares, and 1.45% for Class I shares, per the November 1, 2020 prospectus. Redemptions made less than 30 days of purchase may be assessed a redemption fee of 1.00%. For performance information current to the most recent month-end, please call toll-free 1-855-969-8464.

Inception date for Class A and Investor Class is November 9, 2016.

***

Inception date for Class I is September 11, 2019.

****

The Bloomberg Barclays US Aggregate Bond Index is a market capitalization-weighted index, meaning the securities in the index are weighted according to the market size of each bond type. The index includes treasury securities, government agency bonds, mortgage-backed bonds, corporate bonds, and a small amount of foreign bonds traded in the U.S. Investors cannot invest directly in an index or benchmark.

HCM Income Plus Fund

PORTFOLIO REVIEW (Unaudited)(Continued)

June 30, 2021

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

The Fund’s holdings by industry sector and investment type as of June 30, 2021 were as follows:

Industry Sector/Investment Type	% of Net Assets
Exchange Traded Funds
Equity - Large Cap Growth		39.1	%
Fixed Income - Convertible		38.7	%
Fixed Income - Corporate		11.0	%
Fixed Income - Aggregate		7.6	%
Money Market Fund		0.0	%
Other Assets Less Liabilities		3.6	%
		100.0	%

Please refer to the Portfolio of Investments in this Annual Report for a detailed listing of the Fund’s holdings.

HCM Tactical Growth Fund

PORTFOLIO OF INVESTMENTS

June 30, 2021

Shares			Fair Value
		COMMON STOCKS - 4.2%
		ADVERTISING - 0.1%
	10,598	Omnicom Group, Inc.	$	847,734

		AUTOMOTIVE - 1.5%
	17,922	Tesla, Inc. *		12,181,583

		BEVERAGES - 0.1%
	7,197	Monster Beverage Corporation *		657,446

		E-COMMERCE - DISCRETIONARY - 0.9%
	1,977	Amazon.com, Inc. *		6,801,196
	12,335	eBay, Inc.		866,040
				7,667,236
		HOME CONSTRUCTION - 0.1%
	7,907	Lennar Corp.		785,561

		INDUSTRIAL SUPPORT SERVICES - 0.1%
	1,550	WW Grainger, Inc.		678,900

		INTERNET MEDIA SERVICES - 0.1%
	370	Alphabet, Inc. *		927,338

		RETAIL - DISCRETIONARY - 0.1%
	3,865	Lowe’s Companies, Inc.		749,694

		SEMICONDUCTORS - 0.5%
	13,910	Intel Corp.		780,907
	2,446	KLA Corp.		793,018
	7,448	Maxim Integrated Products, Inc.		784,721
	1,199	NVIDIA Corp.		959,320
	4,331	Qualcomm, Inc.		619,030
	4,397	Xilinx, Inc.		635,982
				4,572,978
		SOFTWARE - 0.1%
	2,884	Microsoft Corp.		781,276

		SPECIALTY FINANCE - 0.1%
	5,521	American Express Co.		912,235

		TECHNOLOGY HARDWARE - 0.3%
	5,071	Apple, Inc.		694,524
	14,287	Cisco Systems, Inc.		757,211
	5,390	Garmin Ltd.		779,610
				2,231,345
		TECHNOLOGY SERVICES - 0.1%
	2,674	PayPal Holdings, Inc. *		779,418

		TOBACCO - 0.1%
	7,567	Philip Morris International, Inc.		749,965

		TOTAL COMMON STOCKS (Cost $30,995,974)		34,522,709

See accompanying notes to financial statements.

HCM Tactical Growth Fund

PORTFOLIO OF INVESTMENTS(Continued)

June 30, 2021

Shares			Fair Value
		EXCHANGE TRADED FUNDS - 93.6%
		EQUITY - 93.6%
	183,156	Amplify Transformational Data Sharing ETF	$	8,731,046
	256,360	Invesco QQQ Trust Series 1		90,861,675
	182,662	iShares Biotechnology ETF		29,892,636
	1,023,317	iShares US Technology ETF		101,717,710
	2,721,201	ProShares Ultra QQQ		195,409,444
	557,799	ProShares Ultra Technology		53,710,466
	1,553,354	ProShares Ultra S&P500		185,377,266
	417,677	Vanguard Mega Cap Growth ETF		96,642,104
		TOTAL EXCHANGE TRADED FUNDS (Cost $479,834,333)		762,342,347

		SHORT-TERM INVESTMENT - 0.0%
		MONEY MARKET FUND - 0.0%
	182,651	BlackRock Liquidity Funds FedFund Portfolio, Retail Class 0.01% + (Cost $182,651)		182,651

		TOTAL INVESTMENTS - 97.8% (Cost $511,012,958)	$	797,047,707
		OTHER ASSETS LESS LIABILITIES - 2.2%		17,524,279
		NET ASSETS - 100.0%	$	814,571,986

Money market fund; interest rate reflects seven-day effective yield on June 30, 2021.

Non-income producing security.

ETF - Exchange Traded Fund.

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

PORTFOLIO OF INVESTMENTS

June 30, 2021

Shares			Fair Value
		COMMON STOCKS - 4.1%
		AEROSPACE & DEFENSE - 0.1%
	3,725	Huntington Ingalls Industries, Inc.	$	785,044
	2,105	Lockheed Martin Corporation		796,427
				1,581,471
		AUTOMOTIVE - 0.1%
	15,563	BorgWarner, Inc.		755,428
	13,569	General Motors Company *		802,878
				1,558,306
		BANKING - 0.2%
	10,567	Comerica, Inc.		753,850
	19,579	Fifth Third Bancorp		748,505
	5,050	M&T Bank Corporation		733,815
				2,236,170
		BEVERAGES - 0.1%
	13,828	Molson Coors Beverage Company *		742,425

		CHEMICALS - 0.1%
	14,646	CF Industries Holdings, Inc.		753,537

		CONTAINERS & PACKAGING - 0.2%
	12,869	International Paper Company		788,998
	14,349	Sealed Air Corporation		850,178
	13,965	Westrock Company		743,217
				2,382,393
		ELECTRIC UTILITIES - 0.4%
	32,459	AES Corporation (The)		846,206
	32,374	CenterPoint Energy, Inc.		793,810
	14,350	Edison International		829,717
	17,945	Exelon Corporation		795,143
	23,094	NRG Energy, Inc.		930,688
				4,195,564
		ENTERTAINMENT CONTENT - 0.3%
	25,930	Discovery, Inc. - Series A *		795,532
	27,676	Discovery, Inc. - Series B *		802,051
	21,800	Fox Corporation		809,434
	22,580	Fox Corporation		794,816
				3,201,833
		FOOD - 0.1%
	6,078	J M Smucker Company (The)		787,527
	10,382	Tyson Foods, Inc.		765,776
				1,553,303
		HEALTH CARE FACILITIES & SERVICES - 0.4%
	14,190	Cardinal Health, Inc.		810,107
	11,495	Centene Corporation *		838,330
	1,887	Humana, Inc.		835,413
	3,100	Laboratory Corp of America Holdings *		855,135
	6,312	Quest Diagnostics, Inc.		832,995
				4,171,980
		HOME & OFFICE PRODUCTS - 0.1%
	3,468	Whirlpool Corporation		756,093

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

PORTFOLIO OF INVESTMENTS (Continued)

June 30, 2021

Shares			Fair Value
		HOME CONSTRUCTION - 0.1%
	14,452	PulteGroup, Inc.	$	788,646

		INDUSTRIAL SUPPORT SERVICES - 0.1%
	2,504	United Rentals, Inc. *		798,801

		INSURANCE - 0.2%
	6,049	Allstate Corporation (The)		789,032
	5,079	Assurant, Inc.		793,238
				1,582,270
		METALS & MINING - 0.1%
	11,424	Newmont Corporation		724,053

		OIL & GAS PRODUCERS - 0.3%
	46,714	Cabot Oil & Gas Corporation		815,626
	63,542	Marathon Oil Corporation		865,442
	29,758	Williams Companies, Inc. (The)		790,075
				2,471,143
		OIL & GAS SERVICES & EQUIPMENT - 0.2%
	34,008	Halliburton Company		786,265
	31,373	Baker Hughes Company		717,500
				1,503,765
		PUBLISHING & BROADCASTING - 0.1%
	32,620	News Corporation		794,297

		RETAIL - CONSUMER STAPLES - 0.1%
	21,647	Kroger Company (The)		829,297

		RETAIL - DISCRETIONARY - 0.1%
	6,959	Best Buy Company, Inc.		800,146

		SEMICONDUCTORS - 0.1%
	14,509	Intel Corporation		814,535

		TECHNOLOGY HARDWARE - 0.1%
	26,394	HP, Inc.		796,835
	50,991	Hewlett Packard Enterprise Company		743,449
				1,540,284
		TECHNOLOGY SERVICES - 0.3%
	32,715	Western Union Company (The)		751,464
	30,049	Nielsen Holdings plc		741,309
	21,201	DXC Technology Company *		825,567
				2,318,340
		TOBACCO - 0.1%
	16,352	Altria Group, Inc.		779,663

		TRANSPORTATION & LOGISTICS - 0.1%
	2,702	FedEx Corporation		806,088

		TOTAL COMMON STOCKS (Cost $41,003,284)		39,684,403

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

PORTFOLIO OF INVESTMENTS (Continued)

June 30, 2021

Shares			Fair Value

		EXCHANGE TRADED FUNDS - 93.2%
		EQUITY - 93.2%
	1,005,108	iShares Select Dividend ETF	$	117,215,695
	3,283,076	ProShares Ultra QQQ *		235,757,688
	1,903,259	ProShares Ultra S&P500		227,134,929
	715,122	Vanguard Dividend Appreciation ETF		110,693,734
	1,105,179	Vanguard High Dividend Yield ETF		115,789,604
	873,689	WisdomTree US LargeCap Dividend Fund		105,122,260
		TOTAL EXCHANGE TRADED FUNDS (Cost $578,501,238)		911,713,910

		SHORT-TERM INVESTMENT - 0.0%
		MONEY MARKET FUND - 0.0%
	344,333	BlackRock Liquidity Funds FedFund Portfolio, Retail Class 0.01% + (Cost $344,333)		344,333

		TOTAL INVESTMENTS - 97.3% (Cost $619,848,855)	$	951,742,646
		OTHER ASSETS LESS LIABILITIES - 2.7%		26,311,585
		NET ASSETS - 100.0%	$	978,054,231

Money market fund; interest rate reflects seven-day effective yield on June 30, 2021.

Non-income producing security.

ETF - Exchange Traded Fund.

See accompanying notes to financial statements.

HCM Income Plus Fund

PORTFOLIO OF INVESTMENTS

June 30, 2021

Shares			Fair Value
		EXCHANGE TRADED FUNDS - 96.4%
		EQUITY - 39.1%
	290,925	Invesco QQQ Trust Series 1	$	103,112,548
	432,585	Vanguard Mega Cap Growth ETF		100,091,517
				203,204,065

		FIXED INCOME - 57.3%
	744,033	iShares Core Total USD Bond Market ETF		39,798,325
	987,071	iShares Convertible Bond ETF		100,651,630
	650,927	iShares iBoxx High Yield Corporate Bond ETF		57,307,613
	1,158,043	SPDR Bloomberg Barclays Convertible Securities ETF		100,437,070
				298,194,638

		TOTAL EXCHANGE TRADED FUNDS (Cost $385,753,853)		501,398,703

		SHORT-TERM INVESTMENT - 0.0%
		MONEY MARKET FUND - 0.0%
	117,067	BlackRock Liquidity Funds FedFund Portfolio, Retail Class 0.01% + (Cost $117,067)		117,067

		TOTAL INVESTMENTS - 96.4% (Cost $385,870,920)	$	501,515,770
		OTHER ASSETS LESS LIABILITIES - 3.6%		18,780,568
		NET ASSETS - 100.0%	$	520,296,338

Money market fund; interest rate reflects seven-day effective yield on June 30, 2021.

ETF - Exchange Traded Fund.

See accompanying notes to financial statements.

The HCM Funds

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2021

	HCM Tactical		HCM Dividend		HCM Income Plus
	Growth Fund		Sector Plus Fund		Fund
ASSETS
Investment securities:
At cost	$	511,012,958	$	619,848,855	$	385,870,920
At fair value	$	797,047,707	$	951,742,646	$	501,515,770
Cash and cash equivalents		17,720,710		26,775,254		18,036,568
Margin Deposit Held at Broker		10,008		—		—
Receivable for Fund shares sold		1,361,795		1,447,883		1,727,491
Dividends and interest receivable		118,686		54,390		115,654
Prepaid expenses		97,032		93,580		64,741
TOTAL ASSETS		816,355,938		980,113,753		521,460,224

LIABILITIES
Payable for Fund shares redeemed		590,722		623,006		503,055
Investment advisory fees payable		784,520		949,429		387,698
Distribution (12b-1) fees payable		259,952		308,119		152,307
Payable to related parties		41,994		48,147		31,482
Accrued expenses and other liabilities		106,764		130,821		89,344
TOTAL LIABILITIES		1,783,952		2,059,522		1,163,886
NET ASSETS	$	814,571,986	$	978,054,231	$	520,296,338

Net Assets Consist Of:
Paid in capital	$	523,944,241	$	693,795,232	$	405,640,975
Accumulated earnings		290,627,745		284,258,999		114,655,363
NET ASSETS	$	814,571,986	$	978,054,231	$	520,296,338

See accompanying notes to financial statements.

The HCM Funds

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

June 30, 2021

	HCM Tactical			HCM Dividend			HCM Income Plus
	Growth Fund			Sector Plus Fund			Fund
Net Asset Value Per Share:
Class A Shares:
Net Assets	$	626,800,164		$	739,010,878		$	416,353,591
Shares of beneficial interest outstanding		23,965,206			38,789,829			25,615,096
Net asset value (Net Assets ÷ Shares Outstanding) and redemption price per share (a)	$	26.15		$	19.05		$	16.25
Maximum offering price per share (maximum sales charge of 5.75%)	$	27.75		$	20.21		$	17.25

Class I Shares:
Net Assets	$	7,960,271		$	33,183,120		$	6,600,303
Shares of beneficial interest outstanding		303,446			1,735,498			405,970
Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share (a)	$	26.23		$	19.12		$	16.26

Class R Shares:
Net Assets	$	29		$	26
Shares of beneficial interest outstanding		1			1
Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share (a)	$	26.16	*	$	19.05	*

Class A1 Shares:
Net Assets				$	5,340
Shares of beneficial interest outstanding					279
Net asset value (Net Assets ÷ Shares Outstanding) and redemption price per share (a)				$	19.16	*
Maximum offering price per share (maximum sales charge of 5.75%)				$	20.33

Investor Class Shares:
Net Assets	$	179,811,522		$	205,854,867		$	97,342,444
Shares of beneficial interest outstanding		7,202,879			11,080,406			6,084,349
Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share (a)	$	24.96		$	18.58		$	16.00

(a)

Redemptions of shares held less than 30 days may be assessed a redemption fee of 1.00%

NAV may not recalculate due to rounding of shares.

See accompanying notes to financial statements.

The HCM Funds

STATEMENTS OF OPERATIONS

For the Year Ended June 30, 2021

	HCM Tactical			HCM Dividend			HCM Income Plus
	Growth Fund			Sector Plus Fund			Fund
INVESTMENT INCOME
Dividends	$	1,596,879		$	9,575,965		$	5,461,571
Interest		3,569			3,006			3,004
TOTAL INVESTMENT INCOME		1,600,448			9,578,971			5,464,575

EXPENSES
Investment advisory fees		6,360,611			8,157,368			3,317,656
Distribution (12b-1) fees:
Class A		982,255			1,257,485			695,504
Class A1		—			130			—
Investor Class		1,128,002			1,331,801			684,538
Administrative services fees		245,612			308,352			173,349
Transfer agent fees		157,739			164,240			152,796
Accounting services fees		82,201			108,823			64,388
Registration fees		68,418			75,317			65,284
Third party administrative servicing fees		62,073			83,273			48,999
Custodian fees		48,618			62,665			36,651
Audit fees		19,583			19,625			19,604
Printing and postage expenses		19,561			26,735			19,561
Compliance officer fees		17,646			20,452			14,152
Trustees fees and expenses		14,378			14,929			14,082
Legal fees		11,900			11,900			11,900
Insurance expense		9,001			12,870			6,515
Other expenses		6,347			7,467			5,291
TOTAL EXPENSES		9,233,945			11,663,432			5,330,270

NET EXPENSES		9,233,945			11,663,432			5,330,270
NET INVESTMENT INCOME (LOSS)		(7,633,497	)		(2,084,461	)		134,305

REALIZED AND UNREALIZED GAIN ON INVESTMENTS

Net realized gain from investments		13,328,201			5,054,989			1,497,033
Net change in unrealized appreciation on investments		234,089,207			284,940,379			84,754,436
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS		247,417,408			289,995,368			86,251,469

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	239,783,911		$	287,910,907		$	86,385,774

See accompanying notes to financial statements.

HCM Tactical Growth Fund

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	June 30, 2021			June 30, 2020
FROM OPERATIONS
Net investment loss	$	(7,633,497	)	$	(3,261,568	)
Net realized gain from investments		13,328,201			26,739,833
Net change in unrealized appreciation on investments		234,089,207			35,771,236
Net increase in net assets resulting from operations		239,783,911			59,249,501

DISTRIBUTIONS TO SHAREHOLDERS
Total distributions paid:
Class A		(11,877,525	)		—
Class I		(73,255	)		—	+
Class R		(1	)		—	+
Investor Class		(3,408,130	)		—
Net decrease in net assets resulting from distributions to shareholders		(15,358,911	)		—

FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold:
Class A		307,637,999			52,102,058
Class I		8,199,824			—
Investor Class		81,741,088			22,746,089
Net asset value of shares issued in reinvestment of distributions:
Class A		10,619,303			—
Class I		73,255			—
Class R		1			—
Investor Class		3,377,613			—
Redemption fee proceeds:
Class A		39,889			10,678
Class I		298			—
Investor Class		11,364			438
Payments for shares redeemed:
Class A		(82,821,818	)		(81,454,736	)
Class I		(1,620,115	)		—
Investor Class		(15,959,887	)		(11,702,627	)
Net increase (decrease) in net assets resulting from shares of beneficial interest		311,298,814			(18,298,100	)

TOTAL INCREASE IN NET ASSETS		535,723,814			40,951,401

NET ASSETS
Beginning of Year		278,848,172			237,896,771
End of Year	$	814,571,986		$	278,848,172

Amount represents less than $0.50

See accompanying notes to financial statements.

HCM Tactical Growth Fund

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	Year Ended			Year Ended
	June 30, 2021			June 30, 2020
SHARE ACTIVITY
Class A:
Shares Sold		13,960,814			3,735,473
Shares Reinvested		494,158			—
Shares Redeemed		(3,787,110	)		(5,951,194	)
Net increase (decrease) in shares of beneficial interest outstanding		10,667,862			(2,215,721	)

Class I:
Shares Sold		373,422			—
Shares Reinvested		3,404			—
Shares Redeemed		(73,381	)		—
Net increase in shares of beneficial interest outstanding		303,445			—

Class R:
Shares Reinvested		—	+		—
Net increase in shares of beneficial interest outstanding		—	+		—

Investor Class:
Shares Sold		3,870,428			1,636,299
Shares Reinvested		164,041			—
Shares Redeemed		(769,042	)		(863,352	)
Net increase in shares of beneficial interest outstanding		3,265,427			772,947

Amount represents less than one share.

See accompanying notes to financial statements.

The HCM Dividend Sector Plus Fund

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	June 30, 2021			June 30, 2020
FROM OPERATIONS
Net investment loss	$	(2,084,461	)	$	(437,788	)
Net realized gain from investments		5,054,989			4,157,683
Net change in unrealized appreciation on investments		284,940,379			35,293,971
Net increase in net assets resulting from operations		287,910,907			39,013,866

DISTRIBUTIONS TO SHAREHOLDERS
From return of capital:
Class A		—			(133,105	)
Class I		—			(20	)
Class R		—			—	+
Class A1		—			(32	)
Investor Class		—			(24,366	)
Total distributions paid:
Class A		—			(2,446,345	)
Class I		—			(513	)
Class R		—			—	+
Class A1		—			(494	)
Investor Class		—			(69,145	)
Net decrease in net assets resulting from distributions to shareholders		—			(2,674,020	)

FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold:
Class A		289,071,355			71,616,541
Class I		34,738,514			99,354
Class A1		5,088			7,361
Investor Class		92,471,633			31,284,830
Net asset value of shares issued in reinvestment of distributions:
Class A		—			2,131,973
Class I		—			533
Class R		—			—	+
Class A1		—			526
Investor Class		—			92,602
Redemption fee proceeds:
Class A		39,454			13,757
Class I		1,407			—
Class A1		3			—
Investor Class		10,504			1,843
Payments for shares redeemed:
Class A		(98,902,827	)		(154,190,809	)
Class I		(8,086,555	)		(108,099	)
Class A1		(50,465	)		(47,868	)
Investor Class		(19,664,912	)		(16,062,832	)
Net increase (decrease) in net assets resulting from shares of beneficial interest		289,633,199			(65,160,288	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		577,544,106			(28,820,442	)

NET ASSETS
Beginning of Year		400,510,125			429,330,567
End of Year	$	978,054,231		$	400,510,125

Amount represents less than $0.50

See accompanying notes to financial statements.

The HCM Dividend Sector Plus Fund

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	Year Ended			Year Ended
	June 30, 2021			June 30, 2020
SHARE ACTIVITY
Class A:
Shares Sold		17,869,608			6,274,846
Shares Reinvested		—			173,472
Shares Redeemed		(6,298,748	)		(13,501,060	)
Net increase (decrease) in shares of beneficial interest outstanding		11,570,860			(7,052,742	)

Class I:
Shares Sold		2,214,562			8,626
Shares Reinvested		—			43
Shares Redeemed		(479,065	)		(8,669	)
Net increase in shares of beneficial interest outstanding		1,735,497			—

Class R:
Shares Reinvested		—			—	+
Net increase in shares of beneficial interest outstanding		—			—	+

Class A1:
Shares Sold		319			643
Shares Reinvested		—			42
Shares Redeemed		(3,040	)		(4,124	)
Net decrease in shares of beneficial interest outstanding		(2,721	)		(3,439	)

Investor Class:
Shares Sold		5,939,234			2,768,235
Shares Reinvested		—			7,640
Shares Redeemed		(1,296,545	)		(1,420,358	)
Net increase in shares of beneficial interest outstanding		4,642,689			1,355,517

Amount represents less than one share.

See accompanying notes to financial statements.

The HCM Income Plus Fund

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	June 30, 2021			June 30, 2020
FROM OPERATIONS
Net investment income	$	134,305		$	468,687
Net realized gain from investments		1,497,033			5,778,634
Net change in unrealized appreciation on investments		84,754,436			27,847,096
Net increase in net assets resulting from operations		86,385,774			34,094,417

DISTRIBUTIONS TO SHAREHOLDERS
Total distributions paid:
Class A		(1,541,156	)		(1,154,028	)
Class I		(11,866	)		—	+
Investor Class		(183,833	)		(39,801	)
Net decrease in net assets resulting from distributions to shareholders		(1,736,855	)		(1,193,829	)

FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold:
Class A		246,347,911			37,112,864
Class I		7,180,911			95,460
Investor Class		53,009,867			19,111,936
Net asset value of shares issued in reinvestment of distributions:
Class A		1,367,233			990,620
Class I		11,866			—	+
Investor Class		181,142			39,096
Redemption fee proceeds:
Class A		37,186			7,304
Class I		360			—
Investor Class		9,171			613
Payments for shares redeemed:
Class A		(64,262,719	)		(66,221,804	)
Class I		(1,028,318	)		—
Investor Class		(11,767,548	)		(7,677,021	)
Net increase (decrease) in net assets resulting from shares of beneficial interest		231,087,062			(16,540,932	)

TOTAL INCREASE IN NET ASSETS		315,735,981			16,359,656

NET ASSETS
Beginning of Year		204,560,357			188,200,701
End of Year	$	520,296,338		$	204,560,357

Amount represents less than $0.50

See accompanying notes to financial statements.

The HCM Income Plus Fund

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	Year Ended			Year Ended
	June 30, 2021			June 30, 2020
SHARE ACTIVITY
Class A:
Shares Sold		16,422,577			3,417,087
Shares Reinvested		90,068			91,050
Shares Redeemed		(4,307,539	)		(6,240,264	)
Net increase (decrease) in shares of beneficial interest outstanding		12,205,106			(2,732,127	)

Class I:
Shares Sold		465,326			7,866
Shares Reinvested		782			—	+
Shares Redeemed		(68,004	)		—
Net increase in shares of beneficial interest outstanding		398,104			7,866

Investor Class:
Shares Sold		3,618,545			1,719,992
Shares Reinvested		12,076			3,620
Shares Redeemed		(798,656	)		(721,251	)
Net increase in shares of beneficial interest outstanding		2,831,965			1,002,361

Amount represents less than one share.

See accompanying notes to financial statements.

HCM Tactical Growth Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Class A	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	16.32		$	12.80		$	14.68		$	11.64		$	8.75
Activity from investment operations:
Net investment loss (1)		(0.29	)		(0.17	)		(0.10	)		(0.17	)		(0.09	)
Net realized and unrealized gain (loss) on investments		10.80			3.69			(1.19	)		3.21			2.98
Total from investment operations		10.51			3.52			(1.29	)		3.04			2.89
Less distributions from:
Net realized gains		(0.68	)		—			(0.59	)		—			—
Total distributions		(0.68	)		—			(0.59	)		—			—
Paid-in-Capital From Redemption Fees (6)		0.00			0.00			0.00			0.00			0.00
Net asset value, end of year	$	26.15		$	16.32		$	12.80		$	14.68		$	11.64
Total return (2)		65.30	%		27.50	%		(8.36	)%		26.12	%		33.03	%
Net assets, at end of year (000s)	$	626,800		$	216,981		$	198,595		$	137,794		$	51,916
Ratio of gross expenses to average net assets (3)(4)		1.65	%		1.71	%		1.73	%		1.80	% (8)		2.06	%
Ratio of net expenses to average net assets (4)		1.65	%		1.71	%		1.73	%		1.97	% (7)		1.99	%
Ratio of net investment loss to average net assets (4)(5)		(1.33	)%		(1.25	)%		(0.75	)%		(1.26	)%		(0.87	)%
Portfolio Turnover Rate		23	%		140	%		532	%		18	%		67	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

Total returns shown are historical in nature and assume changes in share price, reinvestment of dividends and distributions, if any, and exclude the effect of applicable sales charges and redemption fees. Had the adviser not absorbed a portion of the Fund expenses for the year ended June 30, 2017, total returns would have been lower.

(3)

Represents the ratio of expenses to average net assets absent fee waivers, expense reimbursements and/or expense recaptures by the adviser.

(4)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(5)

Recognition of net investment income (loss) by the Fund is affected by the timing of declaration of dividends by the underlying investments in which the Fund invests as well as timing of subscriptions and redemptions within each share class.

(6)

Amount represents less than $0.005 per share.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

See accompanying notes to financial statements.

HCM Tactical Growth Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Class I	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	16.33		$	12.81		$	14.69		$	11.65		$	8.76
Activity from investment operations:
Net investment income (loss) (1)		(0.25	)		0.07			0.08			0.08			0.02
Net realized and unrealized gain (loss) on investments		10.83			3.45			(1.37	)		2.96			2.87
Total from investment operations		10.58			3.52			(1.29	)		3.04			2.89
Less distributions from:
Net realized gains		(0.68	)		—			(0.59	)		—			—
Total distributions		(0.68	)		—			(0.59	)		—			—
Net asset value, end of year	$	26.23		$	16.33		$	12.81		$	14.69		$	11.65
Total return (2)		65.70	%		27.48	%		(8.35	)%		26.09	%		32.99	%
Net assets, at end of year (000s)	$	7,960		$	16	(6)	$	14	(6)	$	15	(6)	$	12	(6)
Ratio of gross expenses to average net assets (3)(4)		1.40	%		1.46	%		1.48	%		1.55	% (8)		1.81	%
Ratio of net expenses to average net assets (4)		1.40	%		1.46	%		1.48	%		1.72	% (7)		1.74	%
Ratio of net investment income (loss) to average net assets (4)(5)		(1.08	)%		0.47	%		0.56	%		0.59	%		(0.62	)%
Portfolio Turnover Rate		23	%		140	%		532	%		18	%		67	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers, expense reimbursements and/or expense recaptures by the adviser.

(4)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(5)

(6)

Actual net assets, not truncated.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

See accompanying notes to financial statements.

HCM Tactical Growth Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Class R	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	16.33		$	12.81		$	14.69		$	11.65		$	8.76
Activity from investment operations:
Net investment income (1)		0.03			0.07			0.08			0.08			0.02
Net realized and unrealized gain (loss) on investments		10.48			3.45			(1.37	)		2.96			2.87
Total from investment operations		10.51			3.52			(1.29	)		3.04			2.89
Less distributions from:
Net realized gains		(0.68	)		—			(0.59	)		—			—
Total distributions		(0.68	)		—			(0.59	)		—			—
Net asset value, end of year	$	26.16		$	16.33		$	12.81		$	14.69		$	11.65
Total return (2)		65.26	%		27.48	%		(8.35	)%		26.09	%		32.99	%
Net assets, at end of year (000s) (6)	$	29		$	16		$	14		$	15		$	12
Ratio of gross expenses to average net assets (3)(4)(9)		1.50	%		1.56	%		1.58	%		1.65	% (8)		1.91	%
Ratio of net expenses to average net assets (4)(9)		1.50	%		1.56	%		1.58	%		1.82	% (7)		1.84	%
Ratio of net investment income (loss) to average net assets (4)(5)(9)		(1.18	)%		0.47	%		0.56	%		0.59	%		(0.72	)%
Portfolio Turnover Rate		23	%		140	%		532	%		18	%		67	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers, expense reimbursements and/or expense recaptures by the adviser.

(4)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(5)

(6)

Actual net assets, not truncated.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

(9)

The ratio presented is adjusted for 12b-1 fee class allocations and is based upon the expected expense level for the class provided in the Fund’s prospectus.

See accompanying notes to financial statements.

HCM Tactical Growth Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Investor Class	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	15.71		$	12.42		$	14.37		$	11.48		$	8.69
Activity from investment operations:
Net investment loss (1)		(0.44	)		(0.27	)		(0.20	)		(0.27	)		(0.18	)
Net realized and unrealized gain (loss) on investments		10.37			3.56			(1.16	)		3.16			2.97
Total from investment operations		9.93			3.29			(1.36	)		2.89			2.79
Less distributions from:
Net realized gains		(0.68	)		—			(0.59	)		—			—
Total distributions		(0.68	)		—			(0.59	)		—			—
Paid-in-Capital From Redemption Fees (6)		0.00			0.00			0.00			0.00			0.00
Net asset value, end of year	$	24.96		$	15.71		$	12.42		$	14.37		$	11.48
Total return (2)		64.13	%		26.49	%		(9.04	)%		25.17	%		32.11	%
Net assets, at end of year (000s)	$	179,812		$	61,867		$	39,302		$	26,838		$	4,265
Ratio of gross expenses to average net assets (3)(4)		2.40	%		2.46	%		2.48	%		2.55	% (8)		2.81	%
Ratio of net expenses to average net assets (4)		2.40	%		2.46	%		2.48	%		2.72	% (7)		2.74	%
Ratio of net investment loss to average net assets (4)(5)		(2.08	)%		(1.98	)%		(1.48	)%		(2.02	)%		(1.62	)%
Portfolio Turnover Rate		23	%		140	%		532	%		18	%		67	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers, expense reimbursements and/or expense recaptures by the adviser.

(4)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(5)

Recognition of net investment loss by the Fund is affected by the timing of declaration of dividends by the underlying investments in which the Fund invests as well as timing of subscriptions and redemptions within each share class.

(6)

Amount represents less than $0.005 per share.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Class A	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	11.94		$	10.93		$	13.05		$	12.81		$	10.80
Activity from investment operations:
Net investment income (loss) (1)		(0.03	)		0.00	(6)		0.20			0.29			0.29
Net realized and unrealized gain (loss) on investments		7.14			1.10			(0.98	)		1.29			2.42
Total from investment operations		7.11			1.10			(0.78	)		1.58			2.71
Less distributions from:
Net investment income		—			(0.09	)		(0.24	)		(0.22	)		(0.20	)
Return of capital		—			(0.00	) (6)		—			—			—
Net realized gains		—			(0.00	) (6)		(1.10	)		(1.12	)		(0.50	)
Total distributions		—			(0.09	)		(1.34	)		(1.34	)		(0.70	)
Paid-in-Capital From Redemption Fees (6)		0.00			0.00			0.00			0.00			0.00
Net asset value, end of year	$	19.05		$	11.94		$	10.93		$	13.05		$	12.81
Total return (2)		59.55	%		10.06	%		(4.80	)%		12.26	%		25.37	%
Net assets, at end of year (000s)	$	739,011		$	324,964		$	374,600		$	374,192		$	219,218
Ratio of gross expenses to average net assets (3)(5)(9)		1.64	%		1.69	%		2.19	%		2.54	%		2.32	% (8)
Ratio of net expenses to average net assets (5)(10)		1.64	%		1.69	%		2.19	%		2.54	%		2.33	% (7)
Ratio of net investment income (loss) to average net assets (4)(5)		(0.18	)%		(0.01	)%		1.67	%		2.20	%		2.33	%
Portfolio Turnover Rate		2	%		129	%		220	%		127	%		100	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(4)

Recognition of net investment income(loss) by the Fund is affected by the timing of declaration of dividends by the underlying investments in which the Fund invests as well as timing of subscriptions and redemptions within each share class.

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(6)

Amount represents less than $0.005 per share.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

(9)	Ratio of gross expenses to average net assets (excluding interest expense)	1.69	%	1.71	%	1.75	%

(10)	Ratio of net expenses to average net assets (excluding interest expense)	1.69	%	1.71	%	1.76	%

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Class I	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	11.95		$	10.93		$	13.05		$	12.81		$	10.80
Activity from investment operations:
Net investment income (1)		0.03			0.02			0.29			0.47			0.18
Net realized and unrealized gain (loss) on investments		7.14			1.12			(1.07	)		1.11			2.53
Total from investment operations		7.17			1.14			(0.78	)		1.58			2.71
Less distributions from:
Net investment income		—			(0.12	)		(0.24	)		(0.22	)		(0.20	)
Return of capital		—			(0.00	) (6)		—			—			—
Net realized gains		—			(0.00	) (6)		(1.10	)		(1.12	)		(0.50	)
Total distributions		—			(0.12	)		(1.34	)		(1.34	)		(0.70	)
Paid-in-Capital From Redemption Fees		0.00	(6)		—			—			—			—
Net asset value, end of year	$	19.12		$	11.95		$	10.93		$	13.05		$	12.81
Total return (2)		60.00	%		10.44	%		(4.80	)%		12.25	%		25.37	%
Net assets, at end of year (000s)	$	33,183		$	17	(9)	$	15	(9)	$	16	(9)	$	14	(9)
Ratio of gross expenses to average net assets (3)(5)(10)		1.39	%		1.44	%		2.19	%		2.54	%		2.33	% (8)
Ratio of net expenses to average net assets (5)(11)		1.39	%		1.44	%		2.19	%		2.54	%		2.33	% (7)
Ratio of net investment income to average net assets (4)(5)		0.18	%		0.17	%		2.51	%		3.55	%		2.33	%
Portfolio Turnover Rate		2	%		129	%		220	%		127	%		100	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(4)

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(6)

Amount represents less than $0.005 per share.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

(9)

Actual net assets, not truncated.

(10)	Ratio of gross expenses to average net assets (excluding interest expense)	1.69	%	1.95	%	1.75	%

(11)	Ratio of net expenses to average net assets (excluding interest expense)	1.69	%	1.95	%	1.75	%

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Class R	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	11.94		$	10.93		$	13.05		$	12.81		$	10.80
Activity from investment operations:
Net investment income (1)		0.18			0.09			0.28			0.45			0.38
Net realized and unrealized gain (loss) on investments		6.93			1.04			(1.06	)		1.13			2.33
Total from investment operations		7.11			1.13			(0.78	)		1.58			2.71
Less distributions from:
Net investment income		—			(0.12	)		(0.24	)		(0.22	)		(0.20	)
Return of capital		—			(0.00	) (6)		—			—			—
Net realized gains		—			(0.00	) (6)		(1.10	)		(1.12	)		(0.50	)
Total distributions		—			(0.12	)		(1.34	)		(1.34	)		(0.70	)
Net asset value, end of year	$	19.05		$	11.94		$	10.93		$	13.05		$	12.81
Total return (2)		59.55	%		10.32	%		(4.80	)%		12.26	%		25.37	%
Net assets, at end of year (000s) (9)	$	26		$	17		$	15		$	16		$	14
Ratio of gross expenses to average net assets (3)(5)(10)(12)		1.49	%		1.54	%		2.04	%		2.39	%		2.18	% (8)
Ratio of net expenses to average net assets (5)(11)(12)		1.49	%		1.54	%		2.04	%		2.39	%		2.18	% (7)
Ratio of net investment income to average net assets (4)(5)(12)		1.00	%		0.76	%		2.37	%		3.42	%		2.56	%
Portfolio Turnover Rate		2	%		129	%		220	%		127	%		100	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(4)

Recognition of net investment income by the Fund is affected by the timing of declaration of dividends by the underlying investments in which the Fund invests as well as timing of subscriptions and redemptions within each share class.

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(6)

Amount represents less than $0.005 per share.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

(9)

Actual net assets, not truncated.

(10)	Ratio of gross expenses to average net assets (excluding interest expense)	1.54	%	1.80	%	1.60	%

(11)	Ratio of net expenses to average net assets (excluding interest expense)	1.54	%	1.80	%	1.60	%

(12)

The ratio presented is adjusted for 12b-1 fee class allocations and is based upon the expected expense level for the class provided in the Fund’s prospectus.

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Class A1	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	12.04		$	11.02		$	13.04		$	12.80		$	10.80
Activity from investment operations:
Net investment income (loss) (1)		(0.09	)		(0.03	)		0.18			0.62			0.24
Net realized and unrealized gain (loss) on investments		7.21			1.12			(0.97	)		0.94			2.46
Total from investment operations		7.12			1.09			(0.79	)		1.56			2.70
Less distributions from:
Net investment income		—			(0.07	)		(0.13	)		(0.20	)		(0.20	)
Net realized gains		—			(0.00	) (6)		(1.10	)		(1.12	)		(0.50	)
Total distributions		—			(0.07	)		(1.23	)		(1.32	)		(0.70	)
Paid-in-Capital From Redemption Fees		0.00	(6)		—			—			—			—
Net asset value, end of year	$	19.16		$	12.04		$	11.02		$	13.04		$	12.80
Total return (2)		59.14	%		9.94	%		(4.94	)%		12.11	%		25.27	%
Net assets, at end of year (000s)	$	5		$	36		$	71		$	568		$	501
Ratio of gross expenses to average net assets (3)(5)(9)(11)		1.79	%		1.84	%		2.34	%		2.69	%		2.48	% (8)
Ratio of net expenses to average net assets (3)(5)(10)(11)		1.79	%		1.84	%		2.34	%		2.69	%		2.48	% (7)
Ratio of net investment income (loss) to average net assets (4)(5)		(0.60	)%		(0.21	)%		1.50	%		4.66	%		1.89	%
Portfolio Turnover Rate		2	%		129	%		220	%		127	%		100	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(4)

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(6)

Amount represents less than $0.005 per share.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

(9)	Ratio of gross expenses to average net assets (excluding interest expense)	1.84	%	1.86	%	1.90	%

(10)	Ratio of net expenses to average net assets (excluding interest expense)	1.84	%	1.86	%	1.90	%

(11)

The ratio presented is adjusted for 12b-1 fee class allocations and is based upon the expected expense level for the class provided in the Fund’s prospectus.

See accompanying notes to financial statements.

HCM Dividend Sector Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Year

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Investor Class	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017
Net asset value, beginning of year	$	11.73		$	10.76		$	12.87		$	12.67		$	10.74
Activity from investment operations:
Net investment income (loss) (1)		(0.14	)		(0.08	)		0.11			0.19			0.19
Net realized and unrealized gain (loss) on investments		6.99			1.07			(0.96	)		1.27			2.41
Total from investment operations		6.85			0.99			(0.85	)		1.46			2.60
Less distributions from:
Net investment income		—			(0.02	)		(0.16	)		(0.14	)		(0.17	)
Net realized gains		—			(0.00	) (6)		(1.10	)		(1.12	)		(0.50	)
Total distributions		—			(0.02	)		(1.26	)		(1.26	)		(0.67	)
Paid-in-Capital From Redemption Fees (6)		0.00			0.00			0.00			0.00			0.00
Net asset value, end of year	$	18.58		$	11.73		$	10.76		$	12.87		$	12.67
Total return (2)		58.40	%		9.18	%		(5.48	)%		11.44	%		24.49	%
Net assets, at end of year (000s)	$	205,855		$	75,510		$	54,659		$	44,423		$	23,328
Ratio of gross expenses to average net assets (3)(5)(9)(11)		2.39	%		2.44	%		2.94	%		3.29	%		3.08	% (8)
Ratio of net expenses to average net assets (5)(10)(11)		2.39	%		2.44	%		2.94	%		3.29	%		3.08	% (7)
Ratio of net investment income (loss) to average net assets (4)(5)		(0.90	)%		(0.69	)%		0.92	%		1.46	%		1.56	%
Portfolio Turnover Rate		2	%		129	%		220	%		127	%		100	%

(1)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(2)

(3)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(4)

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain/(loss) on investments.

(6)

Amount represents less than $0.005 per share.

(7)

Represents the ratio of expenses to average net assets after adviser recapture of waived/reimbursed fees from prior periods.

(8)

Represents the ratio of expenses to average net assets before adviser recapture of waived/reimbursed fees from prior periods.

(9)	Ratio of gross expenses to average net assets (excluding interest expense)	2.44	%	2.46	%	2.14	%

(10)	Ratio of net expenses to average net assets (excluding interest expense)	2.44	%	2.46	%	2.14	%

(11)

The ratio presented is adjusted for 12b-1 fee class allocations and is based upon the expected expense level for the class provided in the Fund’s prospectus.

See accompanying notes to financial statements.

HCM Income Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Period

	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
Class A	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017 (1)
Net asset value, beginning of period	$	12.30		$	10.25		$	10.96		$	10.35		$	10.00
Activity from investment operations:
Net investment income (2)		0.02			0.05			0.16			0.13			0.15
Net realized and unrealized gain (loss) on investments		4.01			2.09			(0.24	)		0.69			0.26
Total from investment operations		4.03			2.14			(0.08	)		0.82			0.41
Less distributions from:
Net investment income		(0.04	)		(0.09	)		(0.14	)		(0.19	)		(0.06	)
Net realized gains		(0.04	)		—			(0.49	)		(0.02	)		—
Total distributions		(0.08	)		(0.09	)		(0.63	)		(0.21	)		(0.06	)
Paid-in-Capital From Redemption Fees (7)		0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	16.25		$	12.30		$	10.25		$	10.96		$	10.35
Total return (3)		32.85	%		20.95	%		(0.25	)%		8.03	%		4.11	% (9)
Net assets, at end of period (000s)	$	416,354		$	164,911		$	165,377		$	126,850		$	68,027
Ratio of gross expenses to average net assets (4)(5)(8)		1.38	%		1.48	%		1.46	%		1.52	%		1.66	%
Ratio of net expenses to average net assets (5)(8)		1.38	%		1.48	%		1.46	%		1.52	%		1.66	%
Ratio of net investment income to average net assets (5)(6)(8)		0.19	%		0.38	%		1.47	%		1.24	%		2.28	%
Portfolio Turnover Rate		5	%		196	%		563	%		65	%		26	% (9)

(1)

The HCM Income Plus Fund’s Class A shares commenced operations on November 9, 2016.

(2)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(3)

(4)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain on investments.

(6)

(7)

Amount represents less than $0.005 per share.

(8)

Annualized for periods less than one year.

(9)

Not annualized.

See accompanying notes to financial statements.

HCM Income Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Period

	Year Ended			Period Ended
Class I	June 30, 2021			June 30, 2020 (1)
Net asset value, beginning of period	$	12.30		$	10.32
Activity from investment operations:
Net investment income (loss)(2)		(0.01	)		0.03
Net realized and unrealized gain on investments		4.08			2.04
Total from investment operations		4.07			2.07
Less distributions from:
Net investment income		(0.07	)		(0.09	)
Net realized gains		(0.04	)		—
Total distributions		(0.11	)		(0.09	)
Paid-in-Capital From Redemption Fees		0.00	(9)		—
Net asset value, end of period	$	16.26		$	12.30
Total return (3)		33.15	%		20.13	% (8)
Net assets, at end of period (000s)	$	6,600		$	96,770
Ratio of gross expenses to average net assets (4)(5)(7)		1.13	%		1.23	%
Ratio of net expenses to average net assets (5)(7)		1.13	%		1.23	%
Ratio of net investment income (loss) to average net assets (5)(6)(7)		(0.08	)%		0.28	%
Portfolio Turnover Rate		5	%		196	% (8)

(1)

The HCM Income Plus Fund’s Class I shares commenced operations on September 11, 2019.

(2)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(3)

(4)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain on investments.

(6)

(7)

Annualized for periods less than one year.

(8)

Not annualized.

(9)

Amount represents less than $0.005 per share

See accompanying notes to financial statements.

HCM Income Plus Fund

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout each Period

	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
Investor Class	June 30, 2021			June 30, 2020			June 30, 2019			June 30, 2018			June 30, 2017 (1)
Net asset value, beginning of period	$	12.16		$	10.14		$	10.87		$	10.31		$	10.00
Activity from investment operations:
Net investment income (loss) (2)		(0.08	)		(0.04	)		0.07			0.03			0.10
Net realized and unrealized gain (loss) on investments		3.96			2.08			(0.23	)		0.71			0.27
Total from investment operations		3.88			2.04			(0.16	)		0.74			0.37
Less distributions from:
Net investment income		—			(0.02	)		(0.08	)		(0.16	)		(0.06	)
Net realized gains		(0.04	)		—			(0.49	)		(0.02	)		—
Total distributions		(0.04	)		(0.02	)		(0.57	)		(0.18	)		(0.06	)
Paid-in-Capital From Redemption Fees (7)		0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	16.00		$	12.16		$	10.14		$	10.87		$	10.31
Total return (3)		31.93	%		20.12	%		(1.05	)% (8)		7.27	%		3.72	% (10)
Net assets, at end of period (000s)	$	97,342		$	39,553		$	22,824		$	14,980		$	3,501
Ratio of gross expenses to average net assets (4)(5)(9)		2.13	%		2.23	%		2.21	%		2.27	%		2.41	%
Ratio of net expenses to average net assets (5)(9)		2.13	%		2.23	%		2.21	%		2.27	%		2.41	%
Ratio of net investment income (loss) to average net assets (5)(6)(9)		(0.55	)%		(0.41	)%		0.72	%		0.28	%		1.58	%
Portfolio Turnover Rate		5	%		196	%		563	%		65	%		26	% (10)

(1)

The HCM Income Plus Fund’s Investor Class shares commenced operations on November 9, 2016.

(2)

Per share amounts calculated using the average shares method, which more appropriately presents the per share data for each period.

(3)

(4)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the adviser.

(5)

Does not include the expenses of other investment companies in which the Fund invests, as these expenses are included in the realized and unrealized gain on investments.

(6)

(7)

Amount represents less than $0.005 per share.

(8)

Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. Adjustments may apply to some but not all years and classes.

(9)

Annualized for periods less than one year.

(10)

Not annualized.

See accompanying notes to financial statements.

The HCM Funds

NOTES TO FINANCIAL STATEMENTS

June 30, 2021

ORGANIZATION

The HCM Tactical Growth Fund (“HTGF”), HCM Dividend Sector Plus Fund (“HDSPF”), and HCM Income Plus Fund (“HIPF”) (each a “Fund” and collectively the “Funds”) are each a diversified series of shares of beneficial interest of Northern Lights Fund Trust III (the “Trust”), a Delaware statutory trust organized on December 5, 2011 under the laws of the state of Delaware. The Trust is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”), as an open-end management investment company. HTGF’s and HDSPF’s investment objective is to seek long-term capital appreciation. HIPF’s investment objective is to seek total return. HTGF commenced operations on July 30, 2014. HDSPF commenced operations on March 11, 2015. HIPF commenced operations on November 9, 2016.

HTGF, HDSPF and HIPF offer Class A, Class I and Investor Class shares. HTGF and HDSPF also offer Class R shares. HDSPF also offers Class A1 shares. Class I shares in HIPF and Class R shares in HDSPF and HTGF are not currently available for sale. Class I, Class R and Investor Class shares are offered at net asset value. Class A and Class A1 shares are offered at net asset value plus a maximum sales charge of 5.75%. HTGF’s Investor Class shares were formerly known as Class C shares. Each class represents an interest in the same assets of each Fund and classes are identical except for differences in their sales charge structures and ongoing service and distribution charges. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plans. Each Fund’s income, expenses (other than class specific distribution fees) and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Funds in preparation of the financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements 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 income and expenses for the year. Actual results could differ from those estimates. The Funds are each an investment company and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standards Update (“ASU”) 2013-08.

Securities Valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the primary exchange on the business day the value is being determined, or in the case of securities listed on the NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale, such securities shall be valued at the mean between the current bid and ask prices on the day of valuation. Investments in open-end investment non-exchange traded companies are valued at net asset value. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost.

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

Valuation of Fund of Funds – The Funds may invest in portfolios of open-end or closed-end investment companies (the “Underlying Funds”). Underlying open-end non-exchange traded investment companies are valued at their respective net asset values as reported by such investment companies. The Underlying Funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the boards of the Underlying Funds. The shares of many closed-end investment companies, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company purchased by the Funds will not change.

The Funds may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued using the “fair value” procedures approved by the Trust’s Board of Trustees (the “Board”). The Board has delegated execution of these procedures to a fair value committee composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser. The committee may also enlist third party consultants such as a valuation specialist at a public accounting firm, valuation consultant or financial officer of a security issuer on an as -needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

Fair Valuation Process – As noted above, the fair value committee is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source); (ii) securities for which, in the judgment of the adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the adviser to make such a judgment include, but are not limited to, the following: only a bid price or an ask price is available; the spread between bid and ask prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to each Fund’s calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private investments or non-traded securities are valued via inputs from the adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the adviser is unable to obtain a current bid from such independent dealers or other

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

independent parties, the fair value committee shall determine the fair value of such security using each following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Fund’s holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.

Options Transactions – Each Fund is subject to equity price risk in the normal course of pursuing its investment objective and may purchase or sell options to help hedge against this risk. Each Fund may write call options only if it (i) owns an offsetting position in the underlying security or (ii) has an absolute or immediate right to acquire that security without additional cash consideration or exchange of other securities held in its portfolio. When a Fund writes a call option, an amount equal to the premium received is included in the statement of assets and liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option. If an option expires on its stipulated expiration date or if a Fund enters into a closing purchase transaction, a gain or loss is realized. If a written call option is exercised, a gain or loss is realized for the sale of the underlying security and the proceeds from the sale are increased by the premium originally received. As writer of an option, a Fund has no control over whether the option will be exercised and, as a result, retains the market risk of an unfavorable change in the price of the security underlying the written option. When a Fund purchases an option, an amount equal to the premium paid by the Fund is recorded as an investment and is subsequently adjusted to the current value of the option purchased. If an option expires on the stipulated expiration date or if a Fund enters into a closing sale transaction, a gain or loss is realized. If a call option is exercised, the cost of the security acquired is increased by the premium paid for the call. If a put option is exercised, a gain or loss is realized from the sale of the underlying security, and the proceeds from such a sale are decreased by the premium originally paid. Written and purchased options are non- income producing securities. With purchased options, there is minimal counterparty credit risk to the fund since these options are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded options, guarantees against a possible default.

There are no derivative instruments held by the Funds at the end of the period. In addition, no derivative instruments were held by the Funds for the period July 1, 2020 through June 30, 2021.

The Funds utilize various methods to measure the fair value of all their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Funds have 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

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

instrument in 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 Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, 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.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of June 30, 2021 for each Fund’s assets measured at fair value:

HCM Tactical Growth Fund
Assets*	Level 1		Level 2		Level 3		Total
Common Stocks	$	34,522,709	$	—	$	—	$	34,522,709
Exchange Traded Funds		762,342,347		—		—		762,342,347
Short-Term Investment		182,651		—		—		182,651
Total	$	797,047,707	$	—	$	—	$	797,047,707

HCM Dividend Sector Plus Fund
Assets*	Level 1		Level 2		Level 3		Total
Common Stocks	$	39,684,403	$	—	$	—	$	39,684,403
Exchange Traded Funds		911,713,910		—		—		911,713,910
Short-Term Investment		344,333		—		—		344,333
Total	$	951,742,646	$	—	$	—	$	951,742,646

HCM Income Plus Fund
Assets*	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	501,398,703	$	—	$	—	$	501,398,703
Short-Term Investment		117,067		—		—		117,067
Total	$	501,515,770	$	—	$	—	$	501,515,770

The Funds did not hold any Level 2 or 3 securities during the period.

See Portfolio of Investments for industry classification.

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

Security Transactions and Related Income – Investment security transactions are accounted for on a trade date basis. Cost is determined and realized gains and losses are based upon the specific identification method for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Purchase discounts and premiums on securities are accreted and amortized over the life of the respective securities.

Dividends and Distributions to Shareholders – Dividends from net investment income, if any, are declared and paid quarterly. Distributable net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g., deferred losses) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Any such reclassifications will have no effect on net assets, results from operations, or net asset value per share of the Funds. Dividends and distributions to shareholders are recorded on the ex-dividend date.

Credit Facility – HDSPF has entered into a revolving line of credit agreement with BNP Paribas for investment purposes subject to the limitations of the 1940 Act for borrowings. The maximum amount of borrowing allowed under the agreement is up to 33 1/3% of HDSPF’s daily market value. Borrowings under this agreement bear interest on the outstanding principal at a rate equal to the interest rate. In the event of default, all loans will bear interest at a rate equal to 5.00% in excess of the interest rate specified or 1M Libor plus 140 bps, per annum, on the principal balance outstanding. There is no maturity on the line of credit and can be recalled at any time. During the year ended June 30, 2021, HDSPF did not draw on the line of credit. As a result, average borrowings and the average interest rate on the line during the year ended June 30, 2021 was $0 and 0%, respectively. As of June 30, 2021, HDSPF had no borrowings outstanding. HDSPF can withdraw against collateral as outlined in the Fund’s margin agreement.

Federal Income Taxes – The Funds have qualified income and intend to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to their shareholders. Therefore, no provision for federal income tax is required. The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years June 30, 2018 – June 30, 2020, or expected to be taken in the Funds’ June 30, 2021 tax returns. The Funds have identified their major tax jurisdictions as U.S. federal, Ohio (Nebraska in prior years) and foreign jurisdictions where the Funds make significant investments; however, the Funds are 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 HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

Exchange Traded Funds – The Funds may invest in exchange traded funds (“ETFs”). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.

Please refer to the Funds’ prospectus for a full listing of risks associated with these investments.

Expenses – Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.

Indemnification – The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.

INVESTMENT TRANSACTIONS

For the year ended June 30, 2021 cost of purchases and proceeds from sales of portfolio securities, other than short-term investments and U.S. government securities, were as follows:

Portfolio	Purchases		Sales
HCM Tactical Growth Fund	$	392,575,981	$	113,470,827
HCM Dividend Sector Plus Fund		278,010,570		12,000,134
HCM Income Plus Fund		234,498,691		16,089,529

INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES

Howard Capital Management, Inc. serves as the Funds’ investment adviser (the “Adviser”). Pursuant to advisory agreements with the Trust, on behalf of each Fund, the Adviser, under the oversight of the Board, directs the daily operations of the Funds and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Funds pay the Adviser an investment advisory fee, computed and accrued daily and paid monthly, at an annual rate of 1.25% of each Fund’s average daily net assets for HTGF and HDSPF and 0.95% for HIPF. For the year ended June 30, 2021, the Adviser earned investment advisory fees of $6,360,611, $8,157,368 and $3,317,656 for HTGF, HDSPF and HIPF, respectively.

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

Pursuant to written contracts (the “Waiver Agreements”), the Adviser has agreed, at least until October 31, 2021, for HTGF, HDSPF and HIPF, to waive a portion of its advisory fee and has agreed to reimburse HTGF, HDSPF and HIPF for other expenses to the extent necessary so that the total expenses incurred by the Funds (excluding front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs such as interest and dividend expenses on securities sold short, taxes, or extraordinary expenses, such as litigation expenses, not incurred in the ordinary course of each Fund’s business) do not exceed the following amounts per annum of the average daily net assets of each class of shares:

				Class	Investor
	Class A	Class I	Class R	A1	Class
HTGF	1.99%	1.74%	1.84%	N/A	2.74%
HDSPF	1.99%	1.74%	1.84%	2.14%	2.74%
HIPF	1.99%	1.74%	N/A	N/A	2.74%

These fee waivers and reimbursements are subject to possible recoupment from each Fund by the Adviser in future years (within the three years after the fees have been waived or reimbursed) if such recoupment can be achieved within the lesser of the expense limitation in place at the time of waiver and the expense limitation in place at the time of recapture. The Board may terminate this expense reimbursement arrangement upon 60 days written notice to the Adviser. HIPF has not met the expense limitation in any previous years, and therefore has no waivers eligible for future recoupment. During the year ended June 30, 2021, the Adviser waived $0 in fees pursuant to the Waiver Agreements for HTGF, HDSPF and HIPF. There are no previously waived expenses eligible for recoupment as of June 30, 2021 for HTGF, HDSPF, and HIPF.

Distributor – The Trust, on behalf of the Funds, has adopted the Trust’s Master Distribution and Shareholder Servicing Plans (the “Plans”) pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that a monthly service and/or distribution fee is calculated by the Funds at an annual rate of 0. 25%, 1.00% and 0.10% of the average daily net assets attributable to Class A, Investor Class and Class R shares, respectively, for HTGF, 0.25%, 0.40%, 1.00%, and 0.10% of the average daily net assets attributable to Class A, Class A1, Investor Class and Class R shares, respectively for HDSPF, and 0.25% and 1.00% of the average daily net assets attributable to Class A and Investor Class shares, respectively for HIPF and is paid to Northern Lights Distributors, LLC to provide compensation for ongoing distribution-related activities or services and/or maintenance of the Funds’ shareholder accounts, not otherwise required to be provided by the Adviser. Class R shares are not currently accruing fees as they are not currently available for sale. During the year ended June 30, 2021, pursuant to the Plans, distribution fees for Class A shares, Class A1 shares and Investor Class shares were as follows:

Portfolio	Class A		Class A1		Investor Class
HCM Tactical Growth Fund	$	982,255	$	—	$	1,128,002
HCM Dividend Sector Plus Fund		1,257,485		130		1,331,801
HCM Income Plus Fund		695,504		—		684,538

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

The Distributor acts as each Fund’s principal underwriter in a continuous public offering of the Funds’ shares. On sales of HTGF’s Class A shares for the year ended June 30, 2021, the Distributor received $311,161 from front-end sales charge of which $45,368 was retained by the principal underwriter or other affiliated broker-dealers. On sales of HDSPF’s Class A shares for the year ended June 30, 2021, the Distributor received $249,851 from front-end sales charge of which $ 38,027 was retained by the principal underwriter or other affiliated broker-dealers. On sales of HIPF’s Class A shares for the year ended June 30, 2021, the Distributor received $204,449 from front-end sales charge of which $30,150 was retained by the principal underwriter or other affiliated broker-dealers.

In addition, certain affiliates of the Distributor provide services to the Funds as follows:

Gemini Fund Services, LLC (“GFS”) – GFS, an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to separate servicing agreements with GFS, the Funds pay GFS customary fees for providing administration, fund accounting and transfer agency services to the Funds. Certain officers of the Trust are also officers of GFS and are not paid any fees directly by either Funds for serving in such capacities.

Northern Lights Compliance Services, LLC (“NLCS”) – NLCS, an affiliate of GFS and the Distributor, provides a chief compliance officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from each Fund.

Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of GFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Trust on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the Funds.

DISTRIBUTION TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of distributions paid for the years ended June 30, 2021 and June 30, 2020 was as follows:

For the Year Ended June 30, 2021:
	Ordinary		Long-Term		Return		Tax-Exempt
Portfolio	Income		Capital Gains		of Capital		Income		Total
HCM Tactical Growth Fund	$	—	$	15,358,911	$	—	$	—	$	15,358,911
HCM Dividend Sector Plus Fund		—		—		—		—		—
HCM Income Plus Fund		1,678,115		58,740		—		—		1,736,855

For the Year Ended June 30, 2020:
	Ordinary		Long-Term		Return		Tax-Exempt
Portfolio	Income		Capital Gains		of Capital		Income		Total
HCM Tactical Growth Fund	$	—	$	—	$	—	$	—	$	—
HCM Dividend Sector Plus Fund		2,431,629		84,868		157,523		—		2,674,020
HCM Income Plus Fund		1,193,829		—		—		—		1,193,829

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

As of June 30, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

	Undistributed		Undistributed		Undistributed		Post October Loss			Capital Loss			Other				Total
	Ordinary		Ordinary		Long-Term		and			Carry			Book/Tax		Unrealized		Accumulated
Portfolio	Tax-Exempt Income		Income		Capital Gains		Late Year Loss			Forwards			Differences		Appreciation		Earnings
HCM Tactical Growth Fund	$	—	$	—	$	12,717,784	$	(4,960,309	)	$	—		$	—		282,870,270	$	290,627,745
HCM Dividend Sector Plus Fund		—		—		—		(1,683,319	)		(31,128,246	)		—		317,070,564		284,258,999
HCM Income Plus Fund		—		—		1,438,293		(1,065,197	)		—			—		114,282,267		114,655,363

The difference between book basis and tax basis unrealized appreciation, undistributed net investment income, and accumulated net realized gains from investments is primarily attributable to the tax deferral of losses on wash sales and C-corporation return of capital distributions.

Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Funds incurred and elected to defer such late year losses as follows:

	Late Year
Portfolio	Losses
HCM Tactical Growth Fund	$	4,960,309
HCM Dividend Sector Plus Fund		1,683,319
HCM Income Plus Fund		1,065,197

At June 30, 2021, the Funds utilized capital loss carry forwards (“CLCF”) for federal income tax purposes as follows:

	Non-Expiring
Portfolio	Short-Term		Long-Term		Total		CLCF Utilized
HCM Tactical Growth Fund	$	—	$	—	$	—	$	—
HCM Dividend Sector Plus Fund		19,855,947		11,272,299		31,128,246		4,817,836
HCM Income Plus Fund		—		—		—		—

Permanent book and tax differences, primarily attributable to the book/tax treatment of the net operating losses resulted in reclassification for the year ended June 30, 2021 as follows:

	Paid
	In			Accumulated
Portfolio	Capital			Earnings
HCM Tactical Growth Fund	$	(4,182,762	)	$	4,182,762
HCM Dividend Sector Plus Fund		(1,040,042	)		1,040,042
HCM Income Plus Fund		—			—

REDEMPTION FEES

The Funds may assess a short-term redemption fee of 1.00% of the total redemption amount if a shareholder sells their shares after holding them for less than 30 days. The redemption fee is paid

The HCM Funds

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2021

directly to the specific Fund in which the short-term redemption fee occurs. For the year ended June 30, 2021, HTGF, HDSPF, and HIPF assessed $51,551, $51,368, and $46,717 respectively, in redemption fees.

AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS

			Unrealized		Unrealized			Net Unrealized
Portfolio	Tax Cost		Appreciation		Depreciation			Appreciation
HCM Tactical Growth Fund	$	514,177,437	$	287,319,748	$	(4,449,478	)	$	282,870,270
HCM Dividend Sector Plus Fund		634,672,082		333,542,952		(16,472,388	)		317,070,564
HCM Income Plus Fund		387,233,503		115,680,731		(1,398,464	)		114,282,267

SUBSEQUENT EVENTS

Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued.

Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements.

Report of Independent Registered Public Accounting Firm

To the Shareholders of HCM Tactical Growth Fund, HCM Dividend Sector Plus Fund, and HCM Income Plus Fund and the Board of Trustees of Northern Lights Fund Trust III

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of HCM Tactical Growth Fund, HCM Dividend Sector Plus Fund, and HCM Income Plus Fund (collectively, the Funds), including the portfolios of investments, as of June 30, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the related notes to the financial statements (collectively, the financial statements). We have also audited the financial highlights for each of the periods indicated in the table below. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of June 30, 2021, the results of their operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

	Statements of	Statements of Changes
Fund Name	Operations	in Net Assets	Financial Highlights
HCM Tactical Growth Fund	For the year ended June 30, 2021	For the years ended June 30, 2021 and 2020	For the years ended June 30, 2021, 2020, 2019, 2018 and 2017.
HCM Dividend Sector Plus Fund	For the year ended June 30, 2021	For the years ended June 30, 2021 and 2020	For the years ended June 30, 2021, 2020, 2019, 2018 and 2017.
HCM Income Plus Fund	For the year ended June 30, 2021	For the years ended June 30, 2021 and 2020	For the years ended June 30, 2021, 2020, 2019, 2018, and for the period November 9, 2016 (commencement of operations) to June 30, 2017.

Basis for Opinion

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of June 30, 2021, by correspondence with the custodians. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ RSM US LLP

We have served as the auditor of one or more Howard Capital Management, Inc. investment companies since 2015.

Denver, Colorado

August 30, 2021

The HCM Funds

EXPENSE EXAMPLES (Unaudited)

June 30, 2021

As a shareholder of the HCM Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and/or redemptions of Class A shares; (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2021 through June 30, 2021.

Actual Expenses

The “Actual” table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The “Hypothetical” table below provide information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not any Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning		Ending		Expense Paid		Expense Ratio
	Account Value		Account Value		During Period *		During Period**
Actual	1/1/2021		6/30/2021		1/1/2021 - 6/30/2021		1/1/2021 - 6/30/2021
HCM Tactical Growth Fund - Class A	$	1,000.00	$	1,194.10	$	8.98	1.65%
HCM Tactical Growth Fund - Class I		1,000.00		1,195.50		7.62	1.40%
HCM Tactical Growth Fund - Class R		1,000.00		1,194.00		8.16	1.50%
HCM Tactical Growth Fund - Investor Class		1,000.00		1,189.70		13.03	2.40%

HCM Dividend Sector Plus Fund - Class A		1,000.00		1,199.60		8.89	1.63%
HCM Dividend Sector Plus Fund - Class A1		1,000.00		1,197.50		9.70	1.78%
HCM Dividend Sector Plus Fund - Class I		1,000.00		1,201.80		7.53	1.38%
HCM Dividend Sector Plus Fund - Class R		1,000.00		1,199.60		6.71	1.23%
HCM Dividend Sector Plus Fund - Investor Class		1,000.00		1,195.60		6.70	2.13%

HCM Income Plus - Class A		1,000.00		1,064.20		8.60	1.68%
HCM Income Plus - Class I		1,000.00		1,065.50		7.32	1.43%
HCM Income Plus - Investor Class		1,000.00		1,060.30		12.41	2.43%

The HCM Funds

EXPENSE EXAMPLES (Unaudited)(Continued)

June 30, 2021

	Beginning		Ending		Expense Paid		Expense Ratio
	Account Value		Account Value		During Period *		During Period**
Hypothetical	1/1/2021		6/30/2021		1/1/2021 - 6/30/2021		1/1/2021 - 6/30/2021
(5% return before expenses)
HCM Tactical Growth Fund - Class A	$	1,000.00	$	1,016.61	$	8.25	1.65%
HCM Tactical Growth Fund - Class I		1,000.00		1,017.85		7.00	1.40%
HCM Tactical Growth Fund - Class R		1,000.00		1,017.36		7.50	1.50%
HCM Tactical Growth Fund - Investor Class		1,000.00		1,012.89		11.98	2.40%

HCM Dividend Sector Plus Fund - Class A		1,000.00		1,016.71		8.15	1.63%
HCM Dividend Sector Plus Fund - Class A1		1,000.00		1,015.97		8.90	1.78%
HCM Dividend Sector Plus Fund - Class I		1,000.00		1,017.95		6.90	1.38%
HCM Dividend Sector Plus Fund - Class R		1,000.00		1,018.70		6.16	1.23%
HCM Dividend Sector Plus Fund - Investor Class		1,000.00		1,014.23		6.14	2.13%

HCM Income Plus - Class A		1,000.00		1,016.46		8.40	1.68%
HCM Income Plus - Class I		1,000.00		1,017.70		7.15	1.43%
HCM Income Plus - Investor Class		1,000.00		1,012.74		12.13	2.43%

Expenses are equal to the average account value over the period, multiplied by each Fund’s annualized expense ratio, multiplied by the number of days in the period (181) divided by the number of days in the fiscal year (365).

Annualized

THE HCM FUNDS

SUPPLEMENTAL INFORMATION (Unaudited)

June 30, 2021

Renewal of Advisory Agreement – HCM Dividend Sector Plus Fund, HCM Income Plus Fund and HCM Tactical Growth Fund*

In connection with a meeting held on February 16-17, 2021, the Board, including a majority of the Trustees who are not “interested persons” as that term is defined in the 1940 Act, discussed the renewal of the investment advisory agreements (the “Advisory Agreements”) between Adviser and the Trust, with respect to HCM Dividend Sector Plus Fund (“HCM DSP”), HCM Income Plus Fund (“HCM IP”) and HCM Tactical Growth Fund (“HCM TG” and collectively, the “HCM Funds”). In considering the renewal of the Advisory Agreements, the Board reviewed materials specifically relating to the HCM Funds and the Advisory Agreements.

The Board discussed the Adviser’s presentation and materials. The Board relied upon the advice of independent legal counsel and its own business judgment in determining the material factors to be considered in evaluating the Advisory Agreements and the weight to be given to each such factor. The Board’s conclusions were based on an evaluation of all of the information provided and were not the result of any one factor. Moreover, each trustee may have afforded different weight to the various factors in reaching his or her conclusions with respect to the Advisory Agreements.

Nature, Extent and Quality of Services. The Board recognized that the Adviser had approximately $2.3 billion in total assets under management. The Board noted the broad investment experience and academic credentials of the Adviser’s investment personnel. The Board discussed how the Adviser utilized a proprietary quantitative model to determine when and in which market sectors HCM Funds should be invested and augmented its models with third-party research on interest rate direction, international markets and macroeconomic factors. The Board reviewed the Adviser’s risk management plan that employed stop losses, closely monitored the market during times of market growth, and used mathematical market ratios in an effort to avoid major market downturns. The Board noted that the Adviser had defined inputs in its proprietary model to ensure compliance with each HCM Fund’s investment limitations, and that trades were verified weekly by the Adviser’s chief compliance officer and two third-party compliance consultants. The Board observed that the Adviser selected broker/dealers on the basis of best execution and had sufficient insurance coverage.

With respect to HCM DSP, HCM IP and HCM TG, the Board observed that the Adviser quantitatively analyzed over 200 exchange traded funds, a large selection of mutual funds and a wide range of stocks of any capitalization for inclusion in each of the portfolios of HCM DSP, HCM IP and HCM TG. The Board discussed that the Adviser made adjustments to those portfolios based on its analysis.

THE HCM FUNDS

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

June 30, 2021

The Board concluded that it could expect the Adviser to continue providing quality service to HCM Funds and their respective shareholders.

Performance.

HCM DSP—The Board acknowledged that HCM DSP was a five-star Morningstar rated fund that outperformed its peer group and Morningstar category across all periods and outperformed its benchmark over the 1-year, 5-year and since inception periods. The Board recognized HCM DSP’s positive returns for each time period. The Board concluded the Adviser provided reasonable returns to HCM DSP and its shareholders.

HCM IP—The Board observed that HCM IP earned a five-star rating from Morningstar and significantly outperformed its peer group, Morningstar category and benchmark across all periods. The Board concluded the Adviser provided reasonable returns to HCM IP and its shareholders.

HCM TG—The Board acknowledged that HCM TG was a five-star Morningstar rated fund that outperformed its peer group, Morningstar category and benchmark across all periods. The Board concluded the Adviser provided reasonable returns to HCM TG and its shareholders.

Fees and Expenses.

HCM DSP— The Board observed that the advisory fee for HCM DSP was the highest of its peer group and its Morningstar category. The Board noted that the net expense ratio for HCM DSP was the highest of its peer group but well below the high of its Morningstar category. The Board discussed the Adviser’s rationale that its proprietary model commanded a premium, and that as a concentrated fund, HCM DSP required greater expertise, time, and research to be managed effectively. The Board acknowledged that construction of HCM DSP’s portfolio required peer group, market sector and stock valuation research and that the Adviser closely monitored the amount of HCM DSP’s leverage and its exposure to equities. The Board concluded that the advisory fee for HCM DSP was not unreasonable.

HCM IP—The Board observed that the advisory fee for HCM IP was the highest of its peer group but below the high of its Morningstar category and that HCM IP’s net expense ratio was the highest of its peer group and Morningstar category. The Board discussed the Adviser’s rationale that its proprietary model commanded a premium, and that additional research and expertise were needed to execute to construct HCM IP’s portfolio and implement a successful trading plan. The Board concluded that the advisory fee for HCM IP was not unreasonable.

HCM TG—The Board commented that the advisory fee for HCM TG was higher than the Morningstar category and peer group averages and medians, but well below the highs of each. The Board noted that the net expense ratio for HCM TG was higher than the Morningstar category and peer group averages and medians, but well below the highs of each. The Board discussed the Adviser’s rationale that its proprietary model commanded a premium, and that

THE HCM FUNDS

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

June 30, 2021

additional research and expertise were needed to execute to construct HCM TG’s portfolio and implement a successful trading plan. The Board concluded that the advisory fee for HCM TG was not unreasonable.

Economies of Scale.

The Board noted that each of HCM DSP, HCM IP and HCM TG had grown in size and were nearing the point where applicable breakpoints would be considered pursuant to an agreement with a representative of the Adviser. The Board recognized the Adviser’s view that each of these HCM Funds had not yet achieved meaningful economies but that the Adviser anticipated doing so as each of HCM DSP, HCM IP and HCM TG exceeded $1 billion in assets under management. The Board agreed to revisit this issue at that time.

Profitability . The Board reviewed the Adviser’s profitability analysis in connection with its advisory services provided to each of the HCM Funds and noted that the Adviser had earned a reasonable profit in connection with each HCM Fund. The Board concluded that the Adviser’s profitability for any of the HCM Funds was not excessive.

Conclusion. Having requested and reviewed such information from the Adviser as the Board believed to be reasonably necessary to evaluate the terms of the Advisory Agreements, and as assisted by the advice of independent counsel, the Board concluded that renewal of each Advisory Agreement was in the best interests of the HCM Funds and their respective shareholders.

Due to timing of the contract renewal schedule, these deliberations may or may not relate to the current performance results of the HCM Funds.

The HCM Funds

SUPPLEMENTAL INFORMATION (Unaudited)

June 30, 2021

LIQUIDITY RISK MANAGEMENT PROGRAM

The Funds have adopted and implemented a written liquidity risk management program as required by Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act. The program is reasonably designed to assess and manage the Funds’ liquidity risk, taking into consideration, among other factors, the Funds’ investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources.

During the year ended June 30, 2021, the Trust’s Liquidity Risk Management Program Committee (the “Committee”) reviewed the Funds’ investments and determined that the Funds held adequate levels of cash and highly liquid investments to meet shareholder redemption activities in accordance with applicable requirements. Accordingly, the Committee concluded that (i) the Funds’ liquidity risk management program is reasonably designed to prevent violations of the Liquidity Rule and (ii) the Funds’ liquidity risk management program has been effectively implemented.

The HCM Funds

SUPPLEMENTAL INFORMATION (Unaudited)

June 30, 2021

The Trustees and officers of the Trust, together with information as to their principal business occupations during the past five years and other information, are shown below. The business address of each Trustee and officer is 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246. All correspondence to the Trustees and Officers should be directed to c/o Gemini Fund Services, LLC, P.O. Box 541150, Omaha, NE 68154.

Independent Trustees
Name, Address, Year of Birth	Position(s) Held with Registrant	Length of Service and Term	Principal Occupation(s) During Past 5 Years	Number of Funds Overseen In The Fund Complex*	Other Directorships Held During Past 5 Years**
Patricia Luscombe 1961	Trustee	Since January 2015, Indefinite	Managing Director of the Valuations and Opinions Group, Lincoln International LLC (since August 2007).	5	Northern Lights Fund Trust III (for series not affiliated with the Fund since 2015); Monetta Mutual Funds (since November 2015).
John V. Palancia 1954	Trustee, Chairman	Trustee, since February 2012, Indefinite; Chairman of the Board since May 2014.	Retired (since 2011); Formerly, Director of Global Futures Operations Control, Merrill Lynch, Pierce, Fenner & Smith, Inc. (1975-2011).	5	Northern Lights Fund Trust III (for series not affiliated with the Fund since 2012); Northern Lights Fund Trust (since 2011); Northern Lights Variable Trust (since 2011); Alternative Strategies Fund (since 2012).
Mark H. Taylor 1964	Trustee, Chairman of the Audit Committee	Since February 2012, Indefinite	Director, Lynn Pippenger School of Accountancy, Muma College of Business, University of South Florida (since August 2019); Chair, Department of Accountancy and Andrew D. Braden Professor of Accounting and Auditing, Weatherhead School of Management, Case Western Reserve University (2009-2019); Vice President- Finance, American Accounting Association (2017-2020); President, Auditing Section of the American Accounting Association (2012-15); AICPA Auditing Standards Board Member (2009-2012). Former Academic Fellow, United States Securities and Exchange Commission (2005-2006).	5	Northern Lights Fund Trust III (for series not affiliated with the Fund since 2012); Northern Lights Fund Trust (since 2007); Northern Lights Variable Trust (since 2007); Alternative Strategies Fund (since June 2010).
Jeffery D. Young 1956	Trustee	Since January 2015, Indefinite	Co-owner and Vice President, Latin America Agriculture Development Corp. (since May 2015); Formerly Asst. Vice President - Transportation Systems, Union Pacific Railroad Company (June 1976 to April 2014); President, Celeritas Rail Consulting (since June 2014).	5	Northern Lights Fund Trust III (for series not affiliated with the Fund since 2015);PS Technology, Inc. (2010-2013).

As of June 30, 2021, the Trust was comprised of 32 active portfolios managed by 16 unaffiliated investment advisers. The term “Fund Complex” applies only to the Funds. The Funds do not hold themselves out as related to any other series within the Trust for investment purposes, nor do they share the same investment adviser with any other series.

Only includes directorships held within the past 5 years in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 or subject to the requirements of Section 15(d) of the Securities Exchange Act of 1934, or any company registered as an investment company under the 1940 Act.

6/30/21-NLFT III-v1

The HCM Funds

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

June 30, 2021

Officers of the Trust

Name, Address, Year of Birth	Position(s) Held with Registrant	Length of Service and Term	Principal Occupation(s) During Past 5 Years
Richard Malinowski 1983	President	Since August 2017, indefinite	Senior Vice President and Senior Managing Counsel, Gemini Fund Services, LLC, (since 2020); Senior Vice President Legal Administration, Gemini Fund Services, LLC (2017-2020); Vice President and Counsel (2016- 2017) and AVP and Staff Attorney (2012-2016).
Brian Curley 1970	Treasurer	Since February 2013, indefinite	Vice President, Gemini Fund Services, LLC (since 2015), Assistant Vice President, Gemini Fund Services, LLC (2012-2014); Senior Controller of Fund Treasury, The Goldman Sachs Group, Inc. (2008-2012); Senior Associate of Fund Administration, Morgan Stanley (1999-2008).
Eric Kane 1981	Secretary	Since November 2013, indefinite	Vice President and Managing Counsel, Gemini Fund Services, LLC (since 2020); Vice President and Counsel, Gemini Fund Services, LLC (2017-2020), Assistant Vice President, Gemini Fund Services, LLC (2014- 2017), Staff Attorney, Gemini Fund Services, LLC (2013-2014), Law Clerk, Gemini Fund Services, LLC (2009-2013), Legal Intern, NASDAQ OMX (2011), Hedge Fund Administrator, Gemini Fund Services, LLC (2008), Mutual Fund Accountant/Corporate Action Specialist, Gemini Fund Services, LLC (2006-2008).
William Kimme 1962	Chief Compliance Officer	Since February 2012, indefinite	Senior Compliance Officer of Northern Lights Compliance Services, LLC (since 2011); Due Diligence and Compliance Consultant, Mick & Associates (2009- 2011); Assistant Director, FINRA (2000-2009).

The Funds’ Statement of Additional Information includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-855-969-8464.

6/30/21-NLFT III-v1

PRIVACY NOTICE

NORTHERN LIGHTS FUND TRUST III

Rev. February 2014

FACTS

WHAT DOES NORTHERN LIGHTS FUND TRUST III DO WITH YOUR PERSONAL INFORMATION?

Why?

Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

¡ Social Security number and income

¡ assets, account transfers and transaction history

¡ investment experience and risk tolerance

When you are no longer our customer, we continue to share your information as described in this notice.

How?

All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Northern Lights Fund Trust III chooses to share and whether you can limit this sharing.

Reasons we can share your personal information	Does Northern Lights Fund Trust III share?	Can you limit this sharing?
For our everyday business purposes– such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	YES	NO
For our marketing purposes– to offer our products and services to you	NO	We don’t share
For joint marketing with other financial companies	NO	We don’t share
For our affiliates’ everyday business purposes– information about your transactions and experiences	NO	We don’t share
For our affiliates’ everyday business purposes– information about your creditworthiness	NO	We don’t share
For our affiliates to market to you	NO	We don’t share
For nonaffiliates to market to you	NO	We don’t share

Questions?

Call 1-888-339-4230

Page 2

What we do
How does Northern Lights Fund Trust III protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.
How does Northern Lights Fund Trust III collect my personal information?	We collect your personal information, for example, when you ¡ open an account or give us contact information ¡ provide account information or give us your income information ¡ make deposits or withdrawals from your account We also collect your personal information from other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only ¡ sharing for affiliates’ everyday business purposes—information about your creditworthiness ¡ affiliates from using your information to market to you ¡ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing

Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. ¡ Northern Lights Fund Trust III does not share with our affiliates.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. ¡ Northern Lights Fund Trust III does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ¡ Northern Lights Fund Trust III doesn’t jointly market.

PROXY VOTING POLICY

Information regarding how the Funds voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that the Funds used to determine how to vote proxies is available without charge, upon request, by calling 1-888-985-9830 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N- PORT, within sixty days after the end of the period. Form N-PORT reports are available at the SEC’s website at www.sec.gov.

INVESTMENT ADVISER

Howard Capital Management, Inc.

1145 Hembree Road

Roswell, Georgia 30076

ADMINISTRATOR

Gemini Fund Services, LLC

4221 North 203rd Street, Suite 100

Elkhorn, Nebraska 68022-3474

HCMF-AR21

Item 2. Code of Ethics.

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b) For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:

(1)

Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2)

Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;

(3) Compliance with applicable governmental laws, rules, and regulations;

(4)

The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and

(5) Accountability for adherence to the code.

(c) Amendments: During the period covered by the report, there have not been any amendments to the provisions of the code of ethics.

(d) Waivers: During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics.

(e) The Code of Ethics is not posted on Registrant’ website.

(f) A copy of the Code of Ethics is attached as an exhibit.

Item 3. Audit Committee Financial Expert.

(a)(1)ii The Registrant’s board of trustees has determined that Mark H. Taylor is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Taylor is independent for purposes of this Item 3.

(a)(2) Not applicable.

(a)(3) In this regard, no member of the audit committee was identified as having all of the required technical attributes identified in instruction 2 (b) to item 3 of Form N-CSR to qualify as an “audit committee financial expert,” whether through the type of specialized education or experience required by that instruction. At this time, the board believes the experience provided by each member of the audit committee collectively offers the fund adequate oversight by its audit committee given the fund’s level of financial complexity. The board will from time to time reexamine such belief.

Item 4. Principal Accountant Fees and Services.

(a)

Audit Fees

2021 – $46,500

2020 – $46,500

(b)

Audit-Related Fees

2021 – None

2020 – None

(c)

Tax Fees

2021 – $10,200

2020 – $10,200

Preparation of Federal & State income tax returns, assistance with calculation of required income, capital gain and excise distributions and preparation of Federal excise tax returns.

(d)

All Other Fees

2021 - None

2020 - None

(e)

(1) Audit Committee’s Pre-Approval Policies

The registrant’s Audit Committee is required to pre-approve all audit services and, when appropriate, any non-audit services (including audit-related, tax and all other services) to the registrant. The registrant’s Audit Committee also is required to pre-approve, when appropriate, any non-audit services (including audit-related, tax and all other services) to its adviser, or any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant, to the extent that the services

may be determined to have an impact on the operations or financial reporting of the registrant. Services are reviewed on an engagement by engagement basis by the Audit Committee.

(2)

Percentages of Services Approved by the Audit Committee

2021 2020

Audit-Related Fees: 0.00% 0.00%

Tax Fees: 0.00% 0.00%

All Other Fees: 0.00% 0.00%

(f)

During the audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

(g)

The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant:

2021 - $0,000

2020 - $0,000

(h) The registrant's audit committee has considered whether the provision of non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.

Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.

Item 6. Schedule of Investments. Schedule of investments in securities of unaffiliated issuers is included under Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Funds. Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders. None

Item 11. Controls and Procedures.

(a) Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(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 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. - Not applicable to open-end investment companies.

Item 13. Exhibits.

(a)(1) Code of Ethics herewith.

(a)(2) Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith.

(a)(3) Not applicable for open-end investment companies.

(b) Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.

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.

(Registrant) Northern Lights Fund Trust III

By (Signature and Title)

/s/ Rich Malinowski

Rich Malinowski, Principal Executive Officer/President

Date 9/8/21

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 (Signature and Title)

/s/ Rich Malinowski

Rich Malinowski, Principal Executive Officer/President

Date 9/8/21

By (Signature and Title)

/s/ Brian Curley

Brian Curley, Principal Financial Officer/Treasurer

Date 9/8/21