CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-6027

KAVILCO INCORPORATED

(Exact name of registrant as specified in charter)

1000 Second Avenue, Suite 3320 
Seattle, Washington 98104

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (206) 624-6166

Date of fiscal year end: December 31, 2020

Date of reporting period: December 31, 2020

Explanatory Note

The Registrant is filing this amendment to its Certified Shareholder Report on Form N-CSR for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission on March 8, 2021 (Accession Number 0000859765-21-000007) to include an inadvertently omitted sentence in the Report of the Independent Registered Public Accounting Firm. The accompanying financial statements and other Items from the original N-CSR are unchanged.

ITEM 1. REPORTS TO SHAREHOLDERS.

Kavilco Incorporated (letterhead)

1000 Second Avenue, Suite 3320

Seattle, WA 98104

(206) 624-6166 or

1-800-786-9574

Fax (206) 624-8953

February 26, 2021

 Dear Shareholder,

Enclosed are the audited financial statements for the year ended December 31, 2020. Our accountants, BOO USA, LLP conducted the audit.

The financial statements are presented in a format that all investment companies must adhere to pursuant to Security and Exchange Commission requirements and accounting principles generally accepted in the United States of America. In an investment company, the primary objective of the financial statements is to show how the net asset value changed throughout the year (net asset value is defined as the fair value of securities held, cash, receivables and other assets less liabilities).

Sincerely,

KAVILCO INCORPORATED

 /s/Louis Jones, Sr.

Louis L. Jones, Sr., President

LLJ:cmd encl.

Fax: 206-382-7700

www.bdo.com

Two Union Square, 601 Union Street Suite 2300

Seattle, WA 98101

Report of Independent Registered Public Accounting Firm

Shareholders and Board of Directors

Kavilco Incorporated

Kasaan, Alaska

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Kavilco Incorporated (the Company) as of December 31, 2020, including the schedule of investments, as of December 31, 2020, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period ended December 31, 2020, and the financial highlights for each of the two years in the period ended December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020, and the results of its operations for the year then ended, changes in net assets for each of the two years in the period ended December 31, 2020, and financial highlights for each of the two years in the period ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 Company in accordance with the 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its 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 Company's 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 securities owned as of December 31, 2020, by correspondence with the custodian and brokers. 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.

Other Matter

The financial highlights for the years ended December 31, 2016 through 2018, were audited by other auditors whose report dated February 19, 2019, expressed an unmodified opinion on those statements.

/s/ BDO USA, LLP

We have served as the Company's auditor since 2019.

Seattle, Washington

February 26, 2021

KAVILCO INCORPORATED

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2020

ASSETS
Investments in securities, at fair value (cost $33,653,329)			$      33,925,723
Real estate, at fair value (cost $1,054,089)			6,292,000
Cash and cash equivalents			125,398
Dividends receivable			50,777
Interest receivable			611
Premises and equipment, net			9,949
Prepaid expenses and other assets			56,506
		Total assets	$      40,460,964
LIABILITIES
Accounts payable and accrued expenses			$            37,431
Dividends payable			131,537
Other Liabilities			32,437
		Total liabilities	201,405
NET ASSETS			$      40,259,559
Net assets consist of:
	Distributable earnings		$        5,745,652
	Net Contributed capital		34,513,907
		Total net assets	$      40,259,559
Net asset value per share of Class A and Class B common
	stock ($40,259,559 divided by 12,000 shares outstanding)		$              3,355

KAVILCO INCORPROATED
SCHEDULE OF INVESTMENTS
December 31, 2020
			Principal Amount or Shares	Fair Value
U.S. Common Stock - 80.3%
American Depository Receipts - 2.2%
	Atlantic Power Corp.		2,700	$                5,670
	Eaton Corp, PLC		1,400	168,196
	Enbridge Inc.		11,193	358,064
	GW Pharmaceuticals, PLC		300	34,623
	Invesco Limited		6,300	109,809
	Obsidian Energy, Ltd.		485	325
	Royal Dutch Shell, PLC		4,300	144,523
	Schlumberger, Ltd.		1,200	26,196
	Wheaton Precious Metals Corp.		1,280	53,427
		Total American Depository Receipts		900,833
Consumer Discretionary - 1.0%
	Genuine Parts Co.		3,700	371,591
	Ryman Hospitality Properties, Inc.		600	40,656
		Total Consumer Discretionary		412,247
Consumer Staples - 1.3%
	Coca Cola Company		3,500	191,940
	The Kraft Heinz Company		4,900	169,834
	Walgreens Boots Alliance, Inc.		3,850	153,538
				515,312
Energy - 2.2%
	Chevron Corp.		1,800	152,010
	Diamond Offshore Drilling, Inc.		1,515	260
	Exxon Mobil Corp.		5,000	206,100
	Kinder Morgan, Inc.		19,919	272,293
	Phillips 66		500	34,970
	Plains GP Holdings LP		1,400	11,830
	Valero Energy Corp.		1,170	66,187
	Williams Companies, Inc.		6,784	136,019
		Total Energy		879,669
Financials - 24.4%
	AvalonBay Communities, Inc.		2,350	377,011
	Blackstone Group, Inc.		11,800	764,758
	Citigroup, Inc.		1,040	64,126
	Diversified Healthcare Trust		10,400	42,848
	EPR Properties		2,575	83,688
	Equity Residential Properties Trust		3,000	177,840
	Franklin Resources, Inc.		1,130	28,239
	Healthcare Realty Trust, Inc.		5,425	160,580
	HCP, Inc.		7,700	232,771
	Highwoods Properties, Inc.		1,300	51,519
	Hospitality Properties Trust		13,400	153,966
	Iron Mountain, Inc.		9,600	283,008
	Kimco Realty Corp.		8,400	126,084
	Lamar Advertising Company		6,400	532,608
	LTC Properties, Inc.		10,330	401,940
	Macerich Company		1,577	16,827
	Mack Cali Realty Corp.		5,600	69,776
	National Retail Properties, Inc.		1,470	60,152
	Omega Healthcare Investors, Inc.		5,831	211,782
	Prologis, Inc.		10,827	1,079,019
	Prudential Financial, Inc.		2,260	176,438
	Public Storage, Inc.		1,000	230,930
	Realty Income Corp.		13,055	811,629
	Redwood Trust, Inc.		2,600	22,828
	RMR Group, Inc.		274	10,582
	Sabra Health Care REIT, Inc.		2,970	51,589
	Simon Property Group, Inc.		1,240	105,747
	Spirit Realty Capital, Inc.		3,200	128,544
	Stag Industrial Inc.		15,410	482,641
	T Rowe Price Group, Inc.		5,300	802,367
	Tanger Factory Outlet Center		10,800	107,568
	Truist Financial Corp.		1,480	70,936
	Ventas, Inc.		13,200	647,328
	Vornado Realty Trust		3,290	122,849
	Washington REIT		8,450	182,774
	Wells Fargo & Co.		9,540	287,917
	Welltower, Inc.		8,810	569,302
	Weyerhaeuser Co.		1,900	63,707
		Total Financials		9,794,218
Health Care - 3.2%
	Abbvie, Inc.		2,220	237,873
	Amgen, Inc.		1,880	432,250
	Bristol Myers Squibb		6,900	428,007
	Five Star Senior Living, Inc.		704	4,857
	Pfizer, Inc.		5,000	184,050
	Viatris, Inc.		620	11,619
		Total Health Care		1,298,656
Industrials - 1.6%
	General Electric Co.		24,550	265,140
	Pitney Bowes, Inc.		3,000	18,480
	United Parcel Service		2,170	365,428
	Wabtec Corp.		131	9,589
		Total Industrials		658,637
Information Technology - 3.5%
	Cisco Systems, Inc.		4,300	192,425
	International Business Machines (IBM) Corp.		2,370	298,336
	Paychex, Inc.		9,925	924,811
		Total Information Technology		1,415,572
Master Limited Partnerships - 2.9%
	Alliance Bernstein Holdings LP		1,700	57,409
	CVR Partners LP		476	7,626
	Energy Transfer Partners LP		15,960	98,633
	Enterprise Products Partners LP		20,400	399,636
	Magellan Midstream Partners LP		7,600	322,544
	MPLX LP		2,180	47,197
	Nustar Energy LP		4,100	59,081
	Plains All American Pipeline LP		3,914	32,252
	Suburban Propane Partners LP		3,200	47,552
	Targa Resources Corp.		1,160	30,601
	TC Pipelines LP		2,300	67,735
		Total Master Limited Partnerships		1,170,266
Materials - 0.2%
	International Paper Co		1,900	94,468
Mutual Funds - 2.7%
	Blackrock Global Floating Rate Income Fund		3,179	37,480
	John Hancock Preferred Income Fund		3,284	64,629
	iShares Investment Grade Corp. Bonds		640	88,403
	iShares US Preferred ETF		2,516	96,891
	iShares 1-3 Year Treasury Bond		7,200	621,936
	iShares Gold Trust		1,500	27,195
	iShares Silver Trust		1,500	36,855
	SPDR Barclays High Yield Bond ETF		866	94,342
		Total Mutual Funds		1,067,731
Telecommunication Services - 6.0%
	AT & T, Inc.		29,570	850,434
	Centurylink, Inc.		6,900	67,275
	Consolidated Communications		9,600	46,944
	Verizon Communications		24,540	1,441,725
		Total Telecommunication Services		2,406,378
Utilities - 29.1%
	Alliant Energy Corp.		14,900	767,797
	American Electric Power, Inc.		8,240	686,145
	Centerpoint Energy, Inc.		19,800	428,472
	Consolidated Edison, Inc.		8,100	585,387
	Dominion Energy, Inc.		11,500	864,800
	Duke Energy Corp.		9,695	887,674
	Entergy Corp.		4,170	416,333
	Eversource Energy		10,481	906,712
	Exelon Corp.		6,500	274,430
	Firstenergy Corp.		7,605	232,789
	NextEra Energy, Inc.		12,680	978,262
	OGE Energy Corp.		11,200	356,832
	Oneok, Inc.		1,600	61,408
	PPL Corporation		15,545	438,369
	Public Service Enterprise Group, Inc.		12,000	699,600
	Sempra Energy Corp.		1,740	221,694
	Southern Company		14,730	904,864
	UGI Corp.		4,611	161,201
	WEC Energy Group, Inc.		10,840	997,605
	Xcel Energy, Inc.		12,770	851,376
		Total Utilities		11,721,750
		Total U.S. Common Stock (Cost $32,063,343)		32,335,737
Cash Equivalents - 4.0%
		Total Cash Equivalents (Cost $1,589,986)		1,589,986
Other Net Assets - 15.7%
		Total Other Net Assets (Cost $1,095,925)		6,333,836
		TOTAL NET ASSETS (Cost $34,749,254)		$    40,259,559

  

STATEMENT OF OPERATIONS For the Year Ended December 31, 2020
Investment Income
	Interest		$              4,946
	Dividends		1,354,176
		Total investment income	1,359,122
Expenses
	Salaries and benefits		372,482
	Directors' compensation and expenses		185,921
	Insurance		98,913
	Office and equipment leases		72,237
	General and administrative		71,587
	Professional fees		40,080
	Custodian		11,402
		Total expenses	852,622
		Net investment income	506,500
Realized and Unrealized Gain on Investments
	Net realized gain on investments		306,957
	Net change in unrealized depreciation on investments		(3,843,482)
		Total realized gain and unrealized depreciation on investments	(3,536,525)
		Net operating loss	(3,030,025)
Other Income and Expense, net			229,160
		Net decrease in net assets resulting from operations	$       (2,800,865)

STATEMENT OF CHANGES IN NET ASSETS For the Years Ended December 31, 2020 and 2019
				2020	2019
Increase (Decrease) in Net Assets from Operations
	Net investment income			$           506,500	$           570,102
	Net realized gain on investments			306,957	333,439
	Other income and expense, net			229,160	327,300
	Net change in unrealized appreciation on real estate			-	215,000
	Net change in unrealized appreciation (depreciation) on investments			(3,843,482)	5,263,722
			Net increase (decrease) in net assets resulting from operations	(2,800,865)	6,709,563
Dividends and Distributions to Shareholders				(1,056,000)	(1,356,001)
			Total increase (decrease) in net assets	(3,856,865)	5,353,562
Net Assets
	Beginning of year			44,116,424	38,762,862
	End of year (includes undistributed ordinary income
		of $235,347 and $248,730, respectively)		$      40,259,559	$      44,116,424

KAVILCO INCORPROATED
FINANCIAL HIGHLIGHTS
For the Years Ended December 31, 2020 to 2016
(Unaudited)
Per share operating performance (for a share of Class A and Class B capital stock outstanding):
				Years Ended
				2020	2019	2018	2017	2016
Net asset value, beginning of year				$  3,676	$  3,230	$  3,406	$  3,408	$  3,096
Income from investment and real estate
	Net investment income			42	48	53	56	68
	Net realized and unrealized appreciation (depreciation)
		on investments and real estate		(294)	484	(165)	32	335
Net other income				19	27	17	10	14
			Net increase (decrease) in net assets resulting from operations	(233)	559	(95)	98	417
Less dividends and distributions				(88)	(113)	(81)	(100)	(105)
Net asset value, end of year				$  3,355	$  3,676	$  3,230	$  3,406	$  3,408
Total return				(6.94)%	15.21%	(2.94)%	2.88%	12.24%
Supplemental Data:
	Net assets, end of period (in thousands)			$40,260	$44,116	$38,763	$40,872	$40,900
Ratio to average net assets
	Expenses			2.02%	2.22%	2.22%	2.08%	2.08%
	Net investment income			1.20%	1.38%	1.59%	1.63%	2.10%
Portfolio turnover rate				4.08%	10.50%	11.81%	29.18%	15.39%

NOTES TO FINANCIAL STATEMENTS

Note 1. Organization

Kavilco Incorporated ("the Company") is a village corporation within the Sealaska region organized on November 13, 1973, pursuant to the Alaska Native Claims Settlement Act ("ANCSA") of 1971. Under ANCSA, the Native claims to land in Alaska were settled in exchange for part of the state's land and compensation. Settlement benefits were given to Natives of Alaska villages in the form of ownership shares in village corporations that were organized pursuant to ANCSA. The Company was organized for the purpose of securing and administering the land and benefits for the Natives of the Kasaan village in Alaska. Contributed capital includes receipts from the U.S. government and the state of Alaska under provisions of ANCSA.

On November 1, 1989, the Company began to operate as a self-managed, closed end management investment company, as defined by the Investment Company Act of 1940 ("the Act"). The Company is subject to various restrictions imposed by the Act and the Internal Revenue Code, including restrictions on borrowing, dividend, distribution policies, operations, and reporting requirements. The Company's investment decisions focus primarily on large-cap dividend equity investments and fixed income investments, are made by management under the direction of the Board of Directors.

Note 2. Significant Accounting Policies

New Accounting Pronouncement

In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13- Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which includes amendments intended to improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies and adds certain disclosure requirements and affects companies that are required to include fair value measurement disclosures. The Company adopted Topic 820 effective January 1, 2020, which included the removal of disclosure requirements for the amounts of and the reasons for transfers between Level 1 and Level 2 and disclosure of the policy for timing of transfers between levels. The adoption of Topic 820 does not have a material effect on the financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash on deposit with banks. The Company considers all highly liquid instruments with a maturity of three months or less to be cash equivalents. The Company has cash balances in excess of federally insured limits.

Valuation of Investments

All investments are recorded at estimated fair value, as described in Note 3.

Investment Transactions and Income

Investment transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are computed using the last in, first out (“LIFO”) method. Interest income is recorded on an accrual basis as adjusted for the amortization of discounts and premiums using the effective interest method. Premiums and discounts, including original issue discounts, are amortized for both tax and financial reporting purposes. Dividend income is recorded as of the ex-dividend date. Unrealized gains and losses are included in the statement of operations.

Federal Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction and Alaska State.

The Company's policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute at least 90% of its net investment taxable income to its shareholders. Generally, no federal income tax provision is required for the Company.

The Company records a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. No liability has been recorded for uncertain tax positions or related interest or penalties as of December 31, 2020.

Dividends and Distributions to Shareholders

Dividends and distributions to shareholders are recorded on the payable date. Dividends are generally declared and paid twice a year. Capital gain distributions are generally declared and paid annually. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with accounting principles generally accepted in the United States.

Directors' Compensation and Expenses

Each member of the Board of Directors receives compensation for each board meeting attended during the year, in addition to a per diem allowance. Directors are also reimbursed for such expenses as accommodation, airfare, and car rental related to Board meetings. In addition to meeting related expenses, the Company pays for the medical insurance and out of pocket expenses of certain directors.

Subsequent Events

The Company has evaluated subsequent events through the date these financial statements were available to be issued, which was February 26, 2021, and did not note any items that would adjust the financial statements or require additional disclosure.

Note 3. Fair Value Measurements

Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement determined based on assumptions that market participants would use in pricing an asset or liability. There are three levels that prioritize the inputs used in measuring fair value as follows:

·Level 1: Observable market inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities;

·Level 2: Observable market inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

·Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions.

An asset's or liability's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for assets measured at fair value, including a general description of the asset.

Money Market Funds

Fair value of money market funds is determined using quoted market prices and are categorized in Level 1 of the fair value hierarchy.

Equity Securities (Common Stock)

Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Real Estate

Real estate represents entitlement to the surface estate of real property, for which no readily available market quotation exists. Fair value of real estate is determined by management based on a Certified Forester's opinion as to the current value and status of the land, along with other factors. Other relevant factors include the lack of commercially viable timber due to previous harvest, amount of capital expenditures required for the future growth of timber, location of the property, recent sales of similar real property in the region and market demand and supply for this type of real property during the valuation process. Real estate is included in Level 3 of the fair value hierarchy.

The following table presents information about the Company's investments in securities and real estate measured at fair value as of December 31, 2020:

		Level 1	Level 2	Level 3	Balance
Investments in Securities
	U.S. Common Stock	$  32,335,737			$  32,335,737
	Money Market Fund	1,589,986			1,589,986
		$  33,925,723	$               -	$               -	$  33,925,723
Real Estate		$               -	$               -	$    6,292,000	$    6,292,000

At December 31, 2020, there were no realized gain (loss), cost or purchases, proceeds from sales, or transfers in or out of Level 3 at the end of the reporting period.

Note 4. Real Estate

At December 31, 2020, the Company owns fee title to the surface estate of 22,946 acres of real estate located in southeast Alaska.

As of December 31, 2020, there is no commercially viable timber on the real estate and the Company has no outstanding timber agreements. The last harvest and sale of timber from this land was in 2001.

The financial statements include real estate valued at $6,292,000 in 2020, the value of which was determined by an independent appraisal. There was no change in value of the real estate at December 31, 2020 from December 31, 2019. The board approved the fair value estimate of the real estate.

Note 5. Trading Risk

In the normal course of business, the Company enters into financial transactions involving instruments where there is risk of potential loss due to changes in the market (market risk) or failure of the other party to the transaction to perform (credit risk).

Market risk is the potential change in value caused by fluctuations in market prices of an underlying financial instrument. Subsequent market fluctuations may require selling investments at prices that differ from the values reflected on the statement of assets and liabilities. Market risk is directly impacted by the volatility and liquidity in the markets in which financial instruments are traded. The Company's exposure to market risk may be increased in that a significant portion of its assets may be invested in a relatively small number of investment positions at any one time. Accordingly, appreciation or depreciation in value of investment positions may have a more significant effect on the value of the Company's portfolio than would be the case in a more diversified or hedged portfolio.

Credit risk is the possibility that a loss may occur due to the failure of the counterparty to perform according to the terms of a contract. The Company's exposure to credit risk associated with counterparty nonperformance includes cash deposits that may exceed applicable insurance limits. The Company seeks to control such credit risk by maintaining deposits with only high-quality financial institutions and trading exchange traded financial instruments, which generally do not give rise to significant counterparty exposure due to the requirements of the individual exchanges.

Catastrophe – Force Majeure Risk

The occurrence of catastrophic events (such as hurricanes, earthquakes, pandemics, such as COVID-19, acts of terrorism and other catastrophes) could adversely affect the values recorded in the Company's financial statements.

Note 6. Investment Transactions

Purchases of investment securities (common stock and publicly traded partnerships) aggregated $2,300,482 for the year ended December 31, 2020, and sales and maturities of investment securities (consisting of corporate bonds and common stock) aggregated $1,286,041 for the year ended December 31, 2020.

The U.S. federal income tax basis of the Company's investments is the same as for financial reporting purposes. The gross unrealized appreciation and gross unrealized depreciation for U.S. federal income tax purposes is $6,013,748 and $5,741,354, respectively, as of December 31, 2020.

Note 7. Premises and Equipment

The following is a summary of premises and equipment at December 31, 2020:

Building	$           170,601
Furniture, fixtures, and equipment	92,363
	262,964
Less accumulated depreciation	(253,015)
	$              9,949

All assets are recorded at cost less accumulated depreciation. Depreciation is computed on the method over the estimated useful lives of the related assets, which range from 5 to 15 years. Depreciation expense was $8,391 for the year ended December 31, 2020.

Note 8. Lease Obligation

The Company leases office space under a non-cancelable operating lease agreement, which terminates September 30, 2021. Pursuant to the lease agreement, the Company paid a lease deposit of $3,528 which will be credited to the last month's rent. The right of use asset amounting to $33,880 at December 31, 2020, is included in prepaid expenses and other assets, and the lease liability amounting to $32,437 at December 31, 2020, is included in other liabilities. Future minimum lease commitments under this non-cancelable operating lease are $32,787.

Rent expense for the year ended December 31, 2020, was $42,854.

Note 9. Net Assets

Upon organization of the Company, 100 shares of common stock (Class A) were issued to each qualified shareholder enrolled in the Company pursuant to ANCSA. The Company utilized a roll comprising 120 Alaska Natives eligible to receive stock certificates as certified by the U.S. Secretary of the Interior. Under the provisions of ANCSA, stock dividends paid or other stock grants are restricted, and the stock may not be sold, pledged, assigned, or otherwise alienated, except in certain circumstances by court decree or death, unless approved by a majority of the shareholders. The stock carries voting rights only if the holder hereof is an eligible Alaska Native. Nonvoting common stock (Class B) is issued to non-Native persons who inherit stock or are gifted stock.

The Company's capital structure is as follows:

·Common stock:

-Class A, no par value - Authorized, 1,000,000 shares; issued and outstanding, 10,940.42 shares

-Class B, no par value - Authorized, 500,000 shares; issued and outstanding, 1,059.58 shares

Note 10. Dividends and Distributions to Shareholders

On March 14, 2020, a distribution of $18.00 per share was declared. The dividend was paid on March 24, 2020, to shareholders of record on March 16, 2020.

On November 6, 2020, a distribution of $70.00 per share was declared. The dividend was paid on November 18, 2020, to shareholders of record on November 9, 2020.

The tax character of dividends and distributions paid during 2020 and 2019 were as follows:

		2020	2019
Dividends and distributions paid from:
	Ordinary income	$           935,882	$           995,185
	Long-term capital gain	120,118	360,816
		$        1,056,000	$        1,356,001

As of December 31, 2020, and 2019, the components of distributable earnings on a tax basis were as follows:

		2020	2019
Undistributed ordinary income		$           235,347	$           248,730
Net unrealized appreciation (depreciation) on:
	Investments	272,394	4,119,607
	Real estate	5,237,911	5,237,911
		$        5,745,652	$        9,606,248

Note 11. Schedule of Investments

Investments are categorized by type, country, and industry. The industry category represents management's belief as to the most meaningful presentation of the classification of the principal business of the investees. The percentage of net assets is computed by dividing the fair value of each category by net assets.

Note 12. Pension Plan

Employees of the Company are covered by a defined contribution pension plan. The Company contributes 20% of each participant's compensation to the plan. The Company's contributions during the year ended December 31, 2020, totaled $46,485.

Note 13. Other Income and Expense

The Company earned income of $213,840 and $299,880 for the years ended December 31, 2020, and 2019, respectfully, as a result of ANCSA Section 7(i), which requires regional corporations to distribute 70% of any net revenues derived from timber resources and the subsurface estate to other regional corporations, which then redistribute under Section 7(j) 50% of such amounts to the village corporations and at large shareholders.

Other income also includes $15,320 and $27,420 of lease and rental income for the years ended December 31, 2020 and 2019, respectively.

 

Fax: 206-382-7700

www.bdo.com

Two Union Square, 601 Union Street Suite 2300

Seattle, WA 98101

Report of Independent Registered Public Accounting Firm

Shareholders and Board of Directors Kavilco Incorporated

Kasaan, Alaska

In planning and performing our audit of the financial statements of Kavilco Incorporated ("the Company") as of and for the year ended December 31, 2020, in accordance with the standards established by the Public Company Accounting Oversight Board (United States), we considered the Company's internal control over financial reporting, including controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-CEN, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Management of the Company is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

Our consideration of the Company's internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the Public Company Accounting Oversight Board (United States). However, we noted no deficiencies in the Company's internal control over financial reporting and its operation, including controls for safeguarding securities, that we consider to be a material weakness as defined above as of December 31, 2020.

This report is intended solely for the information and use of management and the Board of Directors of the Company and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.

/s/ BDO USA,LLP

Seattle, Washington

February 26, 2021

ITEM 2. CODE OF ETHICS.

Kavilco adopted a code of ethics on January 29, 1990. The code of ethics was amended on May 9, 2008 and is available on the registrant's website at: www.kavilco.com.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Kavilco Incorporated is subject to the Alaska Native Claims Settlement Act (Act). Pursuant to the Act, Kavilco’s stock and dividends may not be sold, pledged, subjected to a lien or judgment execution, assigned in present or future, or otherwise alienated, except pursuant to court decree of separation or child support. However, the stock can be gifted to a relative provided the recipient is a descendant of an Alaska Native.

The Chief Financial Officer has no control over the financial records of the corporation. The Corporate Secretary maintains the accounting records. Monthly, an independent accountant performs various reconciliations and adjusting journal entries on the corporate books and records.

Kavilco does not have an audit committee. The CFO reviews the entire audited financial statements and various CPA correspondence with the board of directors. Two board members have degrees in business. However, pursuant to SEC regulations their experience would not qualify them as financial experts. The only contentious financial issue that Kavilco has had to deal with since becoming an Investment Company involves the evaluation of our land holdings in Alaska. After a two-year battle with our previous auditors, PricewaterhouseCoopers, and pressure by the Security Exchange Commission, the board relented and increased the value of our land holdings. The CFO opposed this action because it served no practical purpose.

The primary purpose of a financial expert serving on the board of directors is to prevent the gross accounting inequities that were driven by greed and outright thievery at such firms as Qwest Communications, Enron and Tyco. There is no incentive on behalf of management to commit fraud since Kavilco’s stock cannot be publicly traded and we do not have compensation incentives. More importantly, the board of directors is not a rubber stamp for management. Many of the shareholders are related to the directors, which acts as an additional incentive to have a high degree of business probity.

Kavilco has never been involved in financial deceit. This superior track record can only be attributable to the excellent oversight of an active and knowledgeable board of directors. Accordingly, Kavilco does not have an audit committee or a financial expert as defined by the SEC.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

During the period covering the fiscal years ended December 31, 2020 and 2019, BDO performed the following professional services.

	2020		2019
Audit fees	$	22.900	$	19,000
Audit related fees		0		0
Tax fees	$	5,000	$	8,650

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Kavilco is a privately held registered investment company, and accordingly is not subject to the Securities Act of 1933.

ITEM 6. SCHEDULE OF INVESTMENTS.

Please see Schedule of Investments contained in the Report to Shareholders filed under Item 1 of this Form N-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

The board of directors adopted the following resolution during the November 2003 board meeting.

Kavilco Incorporated Resolution 11-14-03b: Proxy Voting Policies

The Securities and Exchange Commission believes the recent corporate scandals have created renewed investor interest in corporate governance issues. In response, the SEC has new rules designed to increase transparency of proxy voting by mutual funds.

RESOLVED, on voting common stock, the Chief Financial Officer is hereby directed to vote the management slate of directors and management’s recommendations on corporate proposals that appear on the proxy.

RESOLVED, where there is a material conflict of interest where the Chief Financial Officer has a business, personal, or family relationship with a public company, voting will be deferred until the next scheduled board of directors meeting at which time the issue will be discussed.

RESOLVED, pursuant to rule 30b1-4 under the Investment Company Act, Kavilco will file form N-PX with the SEC detailing a complete voting record. This filing will be made for a 12-month period commencing on June 30, 2004. In addition, this information will be available on Kavilco’s web site as soon as reasonably practicable, after filing the report with the SEC, which means the same day, absent unforeseen circumstances.

Date: November 14, 2003

/s/ Louis A. Thompson
Louis A. Thompson, President

/s/ John Campbell
John Campbell, Secretary

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

This disclosure requirement is not applicable to registrant .

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

The Alaska Native Claims Settlement Act (ANCSA), which is our primary regulating authority, places numerous restrictions on the Company's stock. Kavilco's stock was given to its shareholders. It can only be transferred by court decree or gifting to a blood relative and cannot be sold or used as collateral. There is no provision in the ANCSA regulations for repurchase of shares.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No matters were voted on by shareholders during the period covered by this report.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s President/Chief Executive Officer and Chief Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the fourth fiscal quarter of the period that has materially affected, or is 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

This item is not applicable to Kavilco Incorporated as we do not lend securities.

ITEM 13. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
13 (a) (1)	Certification of President
13 (a) (2)	Certification of Chief Financial Officer

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): Kavilco Incorporated
By:	/s/ Louis L. Jones, Sr.
	Louis L. Jones, Sr.
	President

Date: February 26, 2021

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

By:	/s/ Scott Burns
	Scott Burns
	Chief Financial Officer
Date: February 26, 2021