# EDGAR Filing Document

**Accession Number:** 0001286087
**File Stem:** 0001133228-26-000177
**Filing Date:** 2026-1
**Character Count:** 79224
**Document Hash:** 1df20c9744ac7025b747e22221eed6c5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-000177.hdr.sgml**: 20260108

**ACCESSION NUMBER**: 0001133228-26-000177

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 26

**CONFORMED PERIOD OF REPORT**: 20251031

**FILED AS OF DATE**: 20260108

**DATE AS OF CHANGE**: 20260108

**EFFECTIVENESS DATE**: 20260108

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PERRITT FUNDS INC
- **CENTRAL INDEX KEY:** 0001286087

**ORGANIZATION NAME:**
- **EIN:** 043788672
- **STATE OF INCORPORATION:** MD

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-21556
- **FILM NUMBER:** 26518076

**BUSINESS ADDRESS:**
- **STREET 1:** 300 S. WACKER DRIVE
- **STREET 2:** SUITE 600
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606
- **BUSINESS PHONE:** 312-669-1650

**MAIL ADDRESS:**
- **STREET 1:** 300 S. WACKER DRIVE
- **STREET 2:** SUITE 600
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606

## Series and Classes Contracts Data

### Perritt MicroCap Opportunities Fund (Series ID: S000039929)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000123834 | Investor Class | PRCGX           |

?xml version='1.0' encoding='ASCII'? 2025-11-05222280_PerrittMicroCapOpportunitiesFund_TF_TSRAnnual

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 **<u>811-21556</u>**

**<u>Perritt Funds, Inc.</u>**

(Exact name of registrant as specified in charter)

**<u>300 South Wacker Drive, Suite 600, Chicago, IL 60606</u>**

(Address of principal executive offices) (Zip code)

**<u>Michael J. Corbett, 300 South Wacker Drive, Suite 600, Chicago, IL 60606</u>**

(Name and address of agent for service)

**<u>1-312-669-1650</u>**

Registrant's telephone number, including area code

Date of fiscal year end: **<u>October 31, 2025</u>**

Date of reporting period: **<u>November 1, 2024 through October 31, 2025</u>**

**<u>Item 1. Reports to Stockholders.</u>**

(a) ---

| | | |
|:---|:---|:---|
| ![image](img244309_202412061548168.jpg) | **Perritt MicroCap Opportunities Fund**  | ![image](img244308_202506241840330.jpg) |
| ![image](img244309_202412061548168.jpg) | PRCGX  | ![image](img244308_202506241840330.jpg) |
| ![image](img244309_202412061548168.jpg) | Annual Shareholder Report \| October 31, 2025  | ![image](img244308_202506241840330.jpg) |

---

This annual shareholder report contains important information about the Perritt MicroCap Opportunities Fund for the period of November 1, 2024, to October 31, 2025. You can find additional information about the Fund at https://www.perrittcap.com/literature/. You can also request this information by contacting us at 1-800-332-3133.

***This report describes changes to the Fund that have occurred since the beginning of the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE PAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Fund Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** |
| Perritt MicroCap Opportunities Fund | $199 | 1.87% |

---

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the year ended October 31, 2025, the Fund's performance relative to the Bloomberg US Micro Cap Total Return Index was aided by its overweight position to the Materials sector, and by individual security selection within the Consumer Staples sector. The primary detractors were the Fund's underweight allocation to the Healthcare sector and individual security selection within the Industrial and Information Technology sectors.

During the period, the strategy continued its overweight allocation to profitable companies relative to the index, as measured by those companies posting positive earnings per share. The portfolios allocation to profitable companies stood at approximately 61% compared to the approximately 24% for the Bloomberg US Micro Cap Total Return Index. This overweight allocation to profitable companies detracted from the Fund's relative performance during the period as investors' risk appetites for unprofitable companies continued and drove performance for those securities following the implementation of interest rate cuts and general investor excitement around certain subsectors.

**HOW DID THE FUND PERFORM** **OVER THE PAST 10 YEARS?** **\***

The $10,000 chart reflects a hypothetical $10,000 investment in shares of the Fund. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.

**CUMULATIVE PERFORMANCE** (Initial Investment of $10,000)

![image](ts6677img003.jpg)

Perritt MicroCap Opportunities Fund PAGE 1 TSR-AR-714402203

------

**ANNUAL AVERAGE TOTAL RETURN (%)**

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Perritt MicroCap Opportunities Fund**  | 12.49 | 13.66 | 6.81 |
| **Bloomberg US Aggregate Equity Total Return Index**  | 20.96 | 16.68 | 14.07 |
| **Bloomberg US Micro Cap Total Return Index**  | 23.66 | 10.57 | 8.18 |

---

Visit https://www.perrittcap.com/literature/ for more recent performance information.

\* *The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.*

**KEY FUND STATISTICS** (as of October 31, 2025)

---

| | |
|:---|:---|
| **Net Assets** | $59959232 |
| **Number of Holdings** | 96 |
| **Net Advisory Fee** | $584613 |
| **Portfolio Turnover** | 17% |

---

**WHAT DID THE FUND INVEST IN?** (as of October 31, 2025)\*

---

| | |
|:---|:---|
| **Top 10 Issuers** | **(%)** |
|  Avino Silver & Gold Mines Ltd.  | 3.6% |
|  Perma-Fix Environmental Services, Inc.  | 3.5% |
|  Bel Fuse, Inc.  | 3.1% |
|  Radiant Logistics, Inc.  | 2.6% |
|  Silvercrest Asset Management Group, Inc.  | 2.6% |
|  Legacy Housing Corp.  | 2.5% |
|  NPK International, Inc.  | 2.5% |
|  EZCORP, Inc.  | 2.1% |
|  McEwen Mining, Inc.  | 2.1% |
|  Endeavour Silver Corp.  | 2.1% |

---

---

| | |
|:---|:---|
| **Top Sectors** | **(%)** |
|  Industrials  | 28.6% |
|  Information Technology  | 16.2% |
|  Materials  | 13.8% |
|  Consumer Discretionary  | 10.8% |
|  Financials  | 9.5% |
|  Cash & Other  | 8.8% |
|  Health Care  | 5.1% |
|  Energy  | 3.3% |
|  Communication Services  | 2.3% |
|  Consumer Staples  | 1.6% |

---

\* Percentages are based on a percent of net assets.

**OTHER MATERIAL FUND CHANGES:**

Subsequent to the end of the fiscal year, the Fund announced a planned merger with the North Star Micro Cap Fund, Inc. The transaction was originally announced November 28, 2025 and is planned to close at the end of February 2026 pending shareholder approval. Following the merger, the North Star Microcap Fund will be the surviving entity.

For additional information about the Fund, including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://www.perrittcap.com/literature/.

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Perritt Capital Management, Inc. documents not be householded, please contact Perritt Capital Management, Inc. at 1-800-332-3133, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Perritt Capital Management, Inc. or your financial intermediary.

Perritt MicroCap Opportunities Fund PAGE 2 TSR-AR-714402203

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

**<u>Item 2. Code of Ethics.</u>**

The registrant has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer. The registrant has not made any substantive amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.

Incorporated by reference to the registrant's Form N-CSR filed January 8, 2010.

**<u>Item 3. Audit Committee Financial Expert.</u>**

The registrant's board of directors has determined that the registrant does not have an audit committee financial expert serving on its board of directors, which functions as the registrant's audit committee since the registrant does not have a separate audit committee.

The board of directors has determined that the members of the board of directors have sufficient background, experience and financial knowledge to fulfill their responsibilities and obligations to the registrant and its shareholders. Accordingly, the board of directors has determined that the search for, and possible appointment of, a person who would satisfy the definition of an audit committee financial expert is not necessary.

**<u>Item 4. Principal Accountant Fees and Services.</u>**

The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. "Audit services" refer to performing an audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. "Audit-related services" refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. "Tax services" refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.

---

| | | |
|:---|:---|:---|
| | FYE 10/31/2025 | FYE 10/31/2024 |
| (a) Audit Fees | $15250 | $20598 |
| (b) Audit-Related Fees | $0 | $0 |
| (c) Tax Fees | $3750 | $8500 |
| (d) All Other Fees | $0 | $0 |

---

(e)(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant.

(e)(2) The percentage of fees billed by Cohen & Company, Ltd**.** applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:

---

| | | |
|:---|:---|:---|
| | FYE 10/31/2025 | FYE 10/31/2024 |
| Audit-Related Fees | 0% | 0% |
| Tax Fees | 0% | 0% |
| All Other Fees | 0% | 0% |

---

(f) Not applicable

(g) The following table indicates the non-audit fees billed or expected to be billed by the registrant's accountant for services to the registrant and to the registrant's investment adviser (and any other controlling entity, etc.—not sub-adviser) for the last two years.

 

---

| | | |
|:---|:---|:---|
| Non-Audit Related Fees | FYE 10/31/2025 | FYE 10/31/2024 |
| Registrant | $0 | $0 |
| Registrant's Investment Adviser | $0 | $0 |

---

(h) The audit committee of the board of trustees/directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser is compatible with maintaining the principal accountant's independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant's independence.

(i) Not applicable

(j) Not applicable

**<u>Item 5. Audit Committee of Listed Registrants.</u>**

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

**<u>Item 6. Investments.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule of Investments is included as part of the report to shareholders filed under Item 7 of this Form.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Not Applicable

**<u>Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.</u>**

(a) ![](perrittlogo.jpg)

**Perritt MicroCap Opportunities Fund** 

Core Financial Statements

October 31, 2025

------

**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  | **Page** |
| [Schedule of Investments](#soi) | [1](#soi) |
| [Statement of Assets and Liabilities](#sal) | [4](#sal) |
| [Statement of Operations](#sop) | [5](#sop) |
| [Statements of Changes in Net Assets](#scna) | [6](#scna) |
| [Financial Highlights](#fihi) | [7](#fihi) |
| [Notes to Financial Statements](#notes) | [8](#notes) |
| [Report of Independent Registered Public Accounting Firm](#report) | [14](#report) |
| [Additional Information](#add) | [15](#add) |
| [Privacy Policy](#privacy) | [16](#privacy) |

---

------

**[**TABLE OF CONTENTS**](#TOC)**

**Perritt MicroCap Opportunities Fund** 

**Schedule of Investments** 

**October 31, 2025** 

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| **COMMON STOCKS - 93.0%**<br>|  |  |
| **Aerospace & Defense - 0.6%**<br>|  |  |
| VirTra, Inc.<sup>(a)</sup> | 58264 | $354245  |
| **Air Freight & Logistics - 2.6%**<br>|  |  |
| Radiant Logistics, Inc.<sup>(a)</sup> | 260000 | 1573000  |
| **Automobile Components - 1.6%**<br>|  |  |
| Motorcar Parts of America, Inc.<sup>(a)</sup> | 57000 | 972420  |
| **Banks - 1.1%**<br>|  |  |
| First Internet Bancorp | 16500 | 292710  |
| Flushing Financial Corp. | 25000 | 341750  |
|  |  | 634460  |
| **Capital Markets - 4.8%**<br>|  |  |
| Heritage Global, Inc.<sup>(a)</sup> | 240000 | 352800  |
|  Silvercrest Asset Management Group, Inc. - Class A | 110000 | 1555400  |
| US Global Investors, Inc. - Class A | 400000 | 996000  |
|  |  | 2904200  |
| **Chemicals - 4.3%**<br>|  |  |
| Arq, Inc.<sup>(a)</sup> | 75000 | 498000  |
| Flexible Solutions International, Inc. | 90000 | 815400  |
| Greystone Logistics, Inc.<sup>(a)</sup> | 125000 | 102500  |
|  Northern Technologies International Corp. | 152810 | 1135378  |
|  |  | 2551278  |
| **Commercial Services & Supplies - 4.7%**<br>|  |  |
| CECO Environmental Corp.<sup>(a)</sup> | 12000 | 586680  |
|  Perma-Fix Environmental Services, Inc.<sup>(a)</sup> | 153000 | 2094570  |
| Quest Resource Holding Corp.<sup>(a)</sup> | 90000 | 136800  |
|  |  | 2818050  |
| **Communications Equipment - 2.7%**<br>|  |  |
| Aviat Networks, Inc.<sup>(a)</sup> | 22000 | 549120  |
| BK Technologies Corp.<sup>(a)</sup> | 14000 | 1045940  |
|  |  | 1595060  |
| **Construction & Engineering - 4.4%**<br>|  |  |
| Bowman Consulting Group Ltd.<sup>(a)</sup> | 15000 | 649350  |
| Northwest Pipe Co.<sup>(a)</sup> | 20000 | 1203200  |
| Orion Group Holdings, Inc.<sup>(a)</sup> | 70000 | 753900  |
|  |  | 2606450  |
| **Consumer Finance - 2.1%**<br>|  |  |
| EZCORP, Inc. - Class A<sup>(a)</sup> | 70000 | 1277500  |
| &nbsp;&nbsp;&nbsp; **Consumer Staples Distribution &** <br>**Retail - 0.4%**<br>|  |  |
| HF Foods Group, Inc.<sup>(a)</sup> | 120000 | 259200  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| **Distributors - 1.7%**<br>|  |  |
| Alliance Entertainment Holding Corp.<sup>(a)</sup> | 51273 | $329173  |
| A-Mark Precious Metals, Inc. | 25000 | 664500  |
|  |  | 993673  |
| **Diversified Consumer Services - 2.3%**<br>|  |  |
| Carriage Services, Inc. | 10000 | 447000  |
| Lincoln Educational Services Corp.<sup>(a)</sup> | 25000 | 485500  |
| Universal Technical Institute, Inc.<sup>(a)</sup> | 15000 | 445800  |
|  |  | 1378300  |
| **Diversified REITs - 0.6%**<br>|  |  |
| Modiv Industrial, Inc. | 23000 | 331660  |
| **Electrical Equipment - 3.3%**<br>|  |  |
| LSI Industries, Inc. | 38000 | 869820  |
| Power Solutions International, Inc.<sup>(a)</sup> | 5000 | 428100  |
| SKYX Platforms Corp.<sup>(a)</sup> | 110000 | 193600  |
| Ultralife Corp.<sup>(a)</sup> | 65000 | 456950  |
|  |  | 1948470  |
|  **Electronic Equipment, Instruments & Components - 5.5%**<br>|  |  |
| Bel Fuse, Inc. - Class B | 12000 | 1847880  |
| Coda Octopus Group, Inc.<sup>(a)</sup> | 45000 | 461250  |
| Powerfleet, Inc.<sup>(a)</sup> | 190000 | 969000  |
|  |  | 3278130  |
| **Energy Equipment & Services - 3.7%**<br>|  |  |
| Forum Energy Technologies, Inc.<sup>(a)</sup> | 10000 | 267800  |
| Natural Gas Services Group, Inc. | 17000 | 473280  |
| NPK International, Inc.<sup>(a)</sup> | 120000 | 1476000  |
|  |  | 2217080  |
| **Financial Services - 1.1%**<br>|  |  |
| Paysign, Inc.<sup>(a)</sup> | 30000 | 154950  |
| Usio, Inc.<sup>(a)</sup> | 340000 | 499800  |
|  |  | 654750  |
| **Food Products - 0.6%**<br>|  |  |
| Alico, Inc. | 11000 | 387310  |
| **Health Care Equipment & Supplies - 0.7%**<br>|  |  |
| Modular Medical, Inc.<sup>(a)</sup> | 85000 | 42067  |
| Sensus Healthcare, Inc.<sup>(a)</sup> | 125586 | 400619  |
|  |  | 442686  |
| **Health Care Providers & Services - 2.7%**<br>|  |  |
| InfuSystem Holdings, Inc.<sup>(a)</sup> | 75000 | 777000  |
| Quipt Home Medical Corp.<sup>(a)</sup> | 90000 | 220500  |
| Viemed Healthcare, Inc.<sup>(a)</sup> | 100000 | 646000  |
|  |  | 1643500  |
| **Hotels, Restaurants & Leisure - 0.3%**<br>|  |  |
| Century Casinos, Inc.<sup>(a)</sup> | 104000 | 199680  |

---

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

1<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Perritt MicroCap Opportunities Fund** 

**Schedule of Investments** 

**October 31, 2025(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| **COMMON STOCKS - (Continued)** | **COMMON STOCKS - (Continued)** | **COMMON STOCKS - (Continued)** |
| **Household Durables - 2.5%**<br>|  |  |
| Legacy Housing Corp.<sup>(a)</sup> | 68000 | $1526940  |
| **Interactive Media & Services - 0.7%**<br>|  |  |
| DHI Group, Inc.<sup>(a)</sup> | 225000 | 436500  |
| **IT Services - 3.1%**<br>|  |  |
| Data Storage Corp.<sup>(a)</sup> | 40000 | 167600  |
| Information Services Group, Inc. | 123883 | 682596  |
| Research Solutions, Inc.<sup>(a)</sup> | 305518 | 989878  |
|  |  | 1840074  |
| **Machinery - 5.6%**<br>|  |  |
| Aebi Schmidt Holding AG | 30004 | 334545  |
| Gencor Industries, Inc.<sup>(a)</sup> | 37367 | 507817  |
| Mayville Engineering Co., Inc.<sup>(a)</sup> | 30000 | 534600  |
| Miller Industries, Inc. | 26000 | 1043640  |
| Taylor Devices, Inc.<sup>(a)</sup> | 7000 | 320390  |
| TechPrecision Corp.<sup>(a)</sup> | 50000 | 246500  |
| Twin Disc, Inc. | 25000 | 391500  |
|  |  | 3378992  |
| **Media - 1.6%**<br>|  |  |
| Creative Realities, Inc.<sup>(a)</sup> | 160000 | 468800  |
| Perion Network Ltd.<sup>(a)</sup> | 50000 | 465000  |
|  |  | 933800  |
| **Metals & Mining - 9.5%**<br>|  |  |
| Ascent Industries Co.<sup>(a)</sup> | 24000 | 291840  |
| Atlas Lithium Corp.<sup>(a)</sup> | 45000 | 240750  |
| Avino Silver & Gold Mines Ltd.<sup>(a)</sup> | 465000 | 2162250  |
| Endeavour Silver Corp.<sup>(a)</sup> | 150000 | 1230000  |
| McEwen Mining, Inc.<sup>(a)</sup> | 68000 | 1246440  |
| United States Antimony Corp.<sup>(a)</sup> | 30000 | 242100  |
| Vox Royalty Corp. | 70000 | 298900  |
|  |  | 5712280  |
|  **Mortgage Real Estate Investment Trusts (REITs) - 0.4%**<br>|  |  |
|  Chicago Atlantic Real Estate Finance, Inc. | 20000 | 257200  |
| **Oil, Gas & Consumable Fuels - 2.1%**<br>|  |  |
| Evolution Petroleum Corp. | 150000 | 657000  |
| Vaalco Energy, Inc. | 65000 | 255450  |
| Vitesse Energy, Inc. | 15000 | 326250  |
|  |  | 1238700  |
| **Personal Care Products - 0.6%**<br>|  |  |
| Nature's Sunshine Products, Inc.<sup>(a)</sup> | 25000 | 337000  |
| **Pharmaceuticals - 1.7%**<br>|  |  |
| Assertio Holdings, Inc.<sup>(a)</sup> | 210000 | 156324  |
| Aytu BioPharma, Inc.<sup>(a)</sup> | 20000 | 45400  |
| Biote Corp.<sup>(a)</sup> | 100000 | 287000  |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| High Tide, Inc.<sup>(a)</sup> | 100000 | $311000  |
| Medexus Pharmaceuticals, Inc.<sup>(a)</sup> | 125000 | 244762  |
|  |  | 1044486  |
| **Professional Services - 4.0%**<br>|  |  |
| Asure Software, Inc.<sup>(a)</sup> | 40000 | 354000  |
| DLH Holdings Corp.<sup>(a)</sup> | 140000 | 870800  |
| Hudson Global, Inc.<sup>(a)</sup> | 55000 | 606100  |
| IBEX Holdings Ltd.<sup>(a)</sup> | 10000 | 373700  |
| Where Food Comes From, Inc.<sup>(a)</sup> | 13000 | 163670  |
|  |  | 2368270  |
|  **Semiconductors & Semiconductor Equipment - 1.2%**<br>|  |  |
| Photronics, Inc.<sup>(a)</sup> | 30000 | 717000  |
| **Software - 3.0%**<br>|  |  |
| Consensus Cloud Solutions, Inc.<sup>(a)</sup> | 12000 | 351840  |
| Mitek Systems, Inc.<sup>(a)</sup> | 60000 | 552600  |
| NetSol Technologies, Inc.<sup>(a)</sup> | 100000 | 439000  |
| Ooma, Inc.<sup>(a)</sup> | 40000 | 449200  |
|  |  | 1792640  |
| **Specialty Retail - 0.5%**<br>|  |  |
| Build-A-Bear Workshop, Inc. | 5000 | 271100  |
|  **Technology Hardware, Storage & Peripherals - 0.7%**<br>|  |  |
| Immersion Corp. | 62000 | 414780  |
| **Textiles, Apparel & Luxury Goods - 1.9%**<br>|  |  |
| Lakeland Industries, Inc. | 44000 | 724240  |
| Superior Group of Cos., Inc. | 45000 | 420300  |
|  |  | 1144540  |
| **Trading Companies & Distributors - 0.9%**<br>|  |  |
| BlueLinx Holdings, Inc.<sup>(a)</sup> | 5000 | 327200  |
| Karat Packaging, Inc. | 10000 | 240200  |
|  |  | 567400  |
| **Water Utilities - 1.2%**<br>|  |  |
| Global Water Resources, Inc. | 35000 | 347200  |
| Pure Cycle Corp.<sup>(a)</sup> | 35000 | 385350  |
|  |  | 732550  |
| &nbsp;&nbsp;&nbsp; **TOTAL COMMON STOCKS** <br>**(Cost $32,413,908)** |  | 55735354  |
| &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS - 93.0%** <br>**(Cost $32,413,908)** |  | 55735354  |
| Money Market Deposit Account - 7.3%<sup>(b)</sup> |  | 4385454  |
| &nbsp;&nbsp;&nbsp; Liabilities in Excess of Other <br>Assets - (0.3)% |  | (161576)  |
| **TOTAL NET ASSETS - 100.0%** |  | $59959232 |

---

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

2<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Perritt MicroCap Opportunities Fund** 

**Schedule of Investments** 

**October 31, 2025(Continued)** 

Par amount is in USD unless otherwise indicated.

Percentages are stated as a percent of net assets.

The Global Industry Classification Standard ("GICS<sup>®</sup>") was developed by and/or is the exclusive property of MSCI, Inc. ("MSCI") and Standard & Poor's Financial Services LLC ("S&P"). GICS<sup>®</sup> is a service mark of MSCI and S&P and has been licensed for use by U.S. Bank Global Fund Services.

REIT - Real Estate Investment Trust

<sup>(a)</sup> Non-income producing security.

<sup>(b)</sup> The U.S. Bank Money Market Deposit Account (the "MMDA") is a short-term vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on market conditions and is subject to change daily. The rate as of October 31, 2025 was 3.61%. 

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

3<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Perritt MicroCap Opportunities Fund** 

**Statement of Assets and Liabilities** 

**October 31, 2025** 

---

| | |
|:---|:---|
| **ASSETS:**<br>|  |
| Investments, at value | $55735354  |
| Cash - interest bearing deposit account | 4385454  |
| Interest receivable | 14939  |
| Dividends receivable | 3771  |
| Dividend tax reclaims receivable | 1100  |
| Receivable for fund shares sold | 30  |
| Prepaid expenses and other assets | 16623  |
| &nbsp;&nbsp;&nbsp; **Total assets** | 60157271  |
| **LIABILITIES:**<br>|  |
| Payable to adviser | 51690  |
| Payable for capital shares redeemed | 36513  |
| Payable for audit fees | 32000  |
| Payable for transfer agent fees and expenses | 18853  |
| Payable for fund administration and accounting fees | 15809  |
| Payable for printing and mailing | 12400  |
| Payable to directors | 12000  |
| Payable for chief compliance officer fees | 11625  |
| Payable for expenses and other liabilities | 7149  |
| &nbsp;&nbsp;&nbsp; **Total liabilities** | 198039  |
| **NET ASSETS** | $59959232  |
| **NET ASSETS CONSISTS OF:**<br>|  |
| Capital stock ($0.0001 per share) | $225  |
| Additional paid-in capital | 31983335  |
| Total distributable earnings | 27975672  |
| &nbsp;&nbsp;&nbsp; **Total net assets** | $59959232  |
| Net assets | $59959232  |
| Capital shares issued and outstanding (100,000,000 shares authorized, 0.0001 par value) | 2250042  |
| Net asset value per share | $26.65  |
| **COST:**<br>|  |
| &nbsp;&nbsp;&nbsp; Investments, at cost | $32413908 |

---

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

4<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt MicroCap Opportunities Fund** 

**Statement of Operations** 

**For the Year Ended October 31, 2025** 

---

| | |
|:---|:---|
| **INVESTMENT INCOME:**<br>|  |
| Dividend income | $849028  |
| Less: Dividend withholding taxes | (1781)  |
| Interest income | 108207  |
| &nbsp;&nbsp;&nbsp; **Total investment income** | 955454  |
| **EXPENSES:**<br>|  |
| Investment advisory fee | 584613  |
| Transfer agent fees | 127820  |
| Fund administration and accounting fees | 109778  |
| Legal fees | 66304  |
| Directors' fees | 50708  |
| Chief compliance officer fees | 46695  |
| Audit fees | 34030  |
| Federal and state registration fees | 30164  |
| Reports to shareholders | 20379  |
| Custodian fees | 8897  |
| Compliance fees | 5431  |
| Other expenses and fees | 9924  |
| &nbsp;&nbsp;&nbsp; Total expenses | 1094743  |
| **Net Investment Loss** | (139289)  |
| **REALIZED AND UNREALIZED GAIN (LOSS)**<br>|  |
| Net realized gain (loss) from:<br>|  |
| &nbsp;&nbsp;&nbsp; Investments | 5374409  |
| Net realized gain (loss) | 5374409  |
| Net change in unrealized appreciation (depreciation) on:<br>|  |
| &nbsp;&nbsp;&nbsp; Investments | 1112826  |
| Net change in unrealized appreciation (depreciation) | 1112826  |
| **Net realized and unrealized gain (loss)** | 6487235  |
| **NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS** | $6347946 |

---

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

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt MicroCap Opportunities Fund** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended October 31,**  | **Year Ended October 31,**  |
|  | **2025** | **2024**  |
| **OPERATIONS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Net investment income (loss) | $(139289) | $(216777)  |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) | 5374409 | 4229023  |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | 1112826 | 4448659  |
| &nbsp;&nbsp;&nbsp; **Net increase (decrease) in net assets from operations** | 6347946 | 8460905  |
| **DISTRIBUTIONS TO SHAREHOLDERS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; From earnings |  | (8059299)  |
| &nbsp;&nbsp;&nbsp; **Total distributions to shareholders** |  | (8059299)  |
| **CAPITAL TRANSACTIONS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | 1837600 | 1998681  |
| &nbsp;&nbsp;&nbsp; Shares issued in reinvestment of distributions |  | 7851878  |
| &nbsp;&nbsp;&nbsp; Shares issued in the reorganization (Note 8) |  | 9217519  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | (10319817) | (8275555)  |
| &nbsp;&nbsp;&nbsp; Redemption fees | 480 | 174  |
| &nbsp;&nbsp;&nbsp; **Net increase (decrease) in net assets from capital transactions** | (8481737) | 10792697  |
| **NET INCREASE (DECREASE) IN NET ASSETS** | (2133791) | 11194303  |
| **NET ASSETS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Beginning of the year | 62093023 | 50898720  |
| &nbsp;&nbsp;&nbsp; End of the year | $59959232 | $62093023  |
| **SHARES TRANSACTIONS**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | 77665 | 81416  |
| &nbsp;&nbsp;&nbsp; Shares issued in reinvestment of distributions |  | 336145  |
| &nbsp;&nbsp;&nbsp; Shares issued in the reorganization (Note 8) |  | 385389  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | (448993) | (340128)  |
| &nbsp;&nbsp;&nbsp; **Total increase (decrease) in shares outstanding** | (371328) | 462822 |

---

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

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt MicroCap Opportunities Fund** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended October 31,**  | **Year Ended October 31,**  | **Year Ended October 31,**  | **Year Ended October 31,**  | **Year Ended October 31,**  |
|  | **2025** | **2024** | **2023** | **2022** | **2021**  |
| **PER SHARE DATA:**<br>|  |  |  |  |  |
| Net asset value, beginning of year | $23.69 | $23.58 | $23.68 | $32.02 | $19.51  |
| **INVESTMENT OPERATIONS:**<br>|  |  |  |  |  |
| Net investment income (loss)<sup>(a)</sup> | (0.06) | (0.10) | 0.10 | (0.11) | (0.15)  |
|  Net realized and unrealized gain (loss) on investments<sup>(b)</sup> | 3.02 | 4.01 | 0.56 | (3.95) | 12.66  |
| **Total from investment operations** | 2.96 | 3.91 | 0.66 | (4.06) | 12.51  |
| Net realized gains |  | (3.80) | (0.76) | (4.28) | —  |
| **Total distributions** |  | (3.80) | (0.76) | (4.28) | —  |
| Redemption fee per share | 0.00<sup>(c)</sup> | 0.00<sup>(c)</sup> | 0.00<sup>(c)</sup> | 0.00<sup>(c)</sup> | 0.00<sup>(c)</sup>  |
| **Net asset value, end of year** | $26.65 | $23.69 | $23.58 | $23.68 | $32.02  |
| TOTAL RETURN | 12.49% | 17.56% | 2.76% | -14.95% | 64.12%  |
| **SUPPLEMENTAL DATA AND RATIOS:**<br>|  |  |  |  |  |
| Net assets, end of year (in thousands) | $59959 | $62093 | $50899 | $54739 | $72496  |
| Ratio of expenses to average net assets | 1.87% | 1.73% | 1.65% | 1.56% | 1.56%  |
|  Ratio of net investment income (loss) to average net assets | (0.24)% | (0.41)% | 0.39% | (0.43)% | (0.53)%  |
| Portfolio turnover rate | 17% | 14% | 21% | 23% | 24% |

---

<sup>(a)</sup> Net investment income per share has been calculated based on average shares outstanding during the years.

<sup>(b)</sup> Realized and unrealized gains and losses per share in the caption are balancing amounts necessary to reconcile the change in net asset value per share for the years, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the years.

<sup>(c)</sup> Amount represents less than $0.005 per share. 

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

7<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt Funds, Inc.** 

**Notes to Financial Statements** 

**October 31, 2025** 

1. Organization

Perritt Funds, Inc. (the "Corporation") was organized on March 19, 2004 as a Maryland corporation and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Corporation currently has one series, of the Perritt MicroCap Opportunities Fund ("MicroCap Fund" or the "Fund"), which is a diversified fund. Perritt MicroCap Opportunities Fund, Inc., the predecessor to the MicroCap Fund, commenced operations on April 11, 1988. As part of a plan of reorganization, on February 28, 2013, Perritt MicroCap Opportunities Fund, Inc. merged into the MicroCap Fund, a series within the Corporation. The MicroCap Fund's investment objective is to invest in mainly common stocks of companies with market capitalizations that are below $500 million at the time of the initial purchase. The Fund is 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."

2. Summary of Significant Accounting Policies

&nbsp;&nbsp;&nbsp;&nbsp;A. Cash and cash equivalents include cash and
 overnight investments in interest-bearing demand deposits with a financial institution with maturities of three months or less. The Fund
 maintains deposits with a high quality financial institution in an amount that is in excess of federally insured limits.

&nbsp;&nbsp;&nbsp;&nbsp;B. Exchange-listed securities are generally valued
 at the last sales price reported by the principal security exchange on which the security is traded, or if no sale is reported, the mean
 between the latest bid and ask price unless the Fund's investment advisor believes that the mean does not represent a fair value,
 in which case the securities are fair valued as set forth below. Securities listed on NASDAQ are valued at the NASDAQ Official Closing
 Price. Demand notes, commercial paper, U.S. Treasury Bills and warrants are stated at fair value using market prices if available, or
 a pricing service when such prices are believed to reflect fair value. The money market deposit account is valued at amortized cost. Securities
 for which market quotations are not readily available are valued at their fair value as determined in good faith by the Fund's investment
 advisor. The Fund's fair value procedures allow for the use of certain methods performed by the Fund's investment advisor
 to value those securities for which market quotations are not readily available, at a price that a Fund might reasonably expect to receive
 upon a sale of such securities. For example, these methods may be based on a multiple of earnings, or a discount from market of a similar
 freely traded security, or a yield to maturity with respect to debt issues, or a combination of these and other methods.

&nbsp;&nbsp;&nbsp;&nbsp;C. Net realized gains and losses on securities
 are computed using specific identification, specifically the first in first out method.

&nbsp;&nbsp;&nbsp;&nbsp;D. Dividend income is recognized on the ex-dividend
 date, and interest income is recognized on the accrual basis. Withholding taxes on foreign dividends and capital gains, which are included
 as a component of net investment income and realized gain (loss) on investments, respectively, have been provided for in accordance with
 the Fund's understanding of the applicable country's tax rules and rates. Discounts and premiums on securities purchased are
 amortized over the life of the respective securities using the interest method. Distributions received from real estate investment trusts
 ("REITs") are classified as investment income or realized gains based on the U.S. income tax characteristics of the distribution.
 Return of capital distributions received from REIT securities and partnerships are recorded as an adjustment to the cost of the security
 and thus may impact unrealized or realized gains or losses on the security. Investment and shareholder transactions are recorded on the
 trade date.

&nbsp;&nbsp;&nbsp;&nbsp;E. Provision has not been made for federal income
 tax since the Fund has elected to be taxed as a "regulated investment company" and intend to distribute substantially all
 income to their shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment
 companies.

&nbsp;&nbsp;&nbsp;&nbsp;F. The financial statements are prepared in conformity
 with accounting principles generally accepted in the United States of America ("GAAP"), which 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 reported amounts of increases and decreases in net assets from operations during the reporting
 period. Actual results could differ from those estimates.

8<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt Funds, Inc.** 

**Notes to Financial Statements** 

**October 31, 2025(Continued)** 

In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

&nbsp;&nbsp;&nbsp;&nbsp;G. Dividends from net investment income and net
 realized capital gains, if any, are declared and paid annually. Distributions to shareholders are recorded on the ex-dividend date. The
 Fund may utilize earnings and profit distributed to shareholders on redemption of shares as part of the dividends paid deduction. The
 Fund may periodically make reclassifications among certain of their capital accounts as a result of the timing and characterization of
 certain income and realized gain distributions, including reclassifying net operating loss, as determined annually in accordance with
 federal tax regulations which may differ from GAAP. The MicroCap Fund has reclassified the components of its capital accounts for the
 year ended October 31, 2025 by increasing paid-in capital by $132,934 and decreasing distributable earnings/(losses) by $132,934. These
 adjustments were primarily due to the utilization of earnings and profits distributed to shareholders on redemptions of shares.

&nbsp;&nbsp;&nbsp;&nbsp;H. As of and during the year ended October 31,
 2025, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related
 to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended October 31, 2025, the Fund
 did not incur any interest or penalties. The Fund is not subject to examination by U.S. federal tax authorities for any tax years before
 2022.

&nbsp;&nbsp;&nbsp;&nbsp;I. The Fund operates as a single segment entity.
 The Fund's income, expenses, assets, and performance are regularly monitored and assessed by Michael Corbett, who serves as the
 chief operating decision maker, using the information presented in the financial statements and financial highlights.

3. Security Valuation

GAAP establishes an authoritative definition of fair value and sets out a hierarchy for measuring fair value. GAAP also requires additional disclosures about the various inputs used to develop the measurements of fair value. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical securities that the Fund has the ability to access.

Level 2 – Other significant observable inputs (including quoted prices for similar securities or the identical security on an inactive market, interest rates, prepayment speeds, credit risk, etc.).

Level 3 – Significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Fund's investments as of October 31, 2025:

**Perritt MicroCap Opportunities Fund** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| **Investments in Securities**<br>|  |  |  |  |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| &nbsp;&nbsp;&nbsp; Communication Services | $1370300 | $— | $— | $1370300 |
| &nbsp;&nbsp;&nbsp; Consumer Discretionary | 6486653 |  |  | 6486653  |
| &nbsp;&nbsp;&nbsp; Consumer Staples | 983510 |  |  | 983510  |
| &nbsp;&nbsp;&nbsp; Energy | 1979780 |  | —  | 1979780  |
| &nbsp;&nbsp;&nbsp; Financial | 5728110 |  |  | 5728110  |
| &nbsp;&nbsp;&nbsp; Health Care | 3130672 |  |  | 3130672  |
| &nbsp;&nbsp;&nbsp; Industrials | 17090877 |  | —  | $17090877  |
| &nbsp;&nbsp;&nbsp; Information Technology | 9637684 |  |  | 9637684  |
| &nbsp;&nbsp;&nbsp; Materials | 8263558 |  |  | 8263558  |
| &nbsp;&nbsp;&nbsp; Real Estate | 311660 | —  |  | 311660  |

---

9<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt Funds, Inc.** 

**Notes to Financial Statements** 

**October 31, 2025(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| &nbsp;&nbsp;&nbsp; Utilities | $732550 | $— | $— | $732550  |
| **Total Common Stocks** | 55735354 |  |  | 55735354  |
| **Total Investments in Securities** | $55735354 | $— | $—  | $55735354 |

---

Please refer to the Schedule of Investments for additional information regarding the composition of the amounts listed above.

Rule 2a-5 under the 1940 Act permits fund boards to designate a fund's investment advisor to perform fair value determinations, subject to board oversight and certain other conditions. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act and requires a fund to fair value a portfolio investment when a market quotation is not readily available. The Board of Directors has designated the Funds' investment advisor as its valuation designee to perform fair value determinations.

4. Investment Advisory Agreement

For the Fund, the Corporation entered into an investment advisory agreement (collectively, the "Agreements") with Perritt Capital Management, Inc. (the "Advisor"), with whom certain officers and directors of the Corporation are affiliated, to furnish investment advisory services to the Fund. Under the terms of the Agreements, the MicroCap Fund pays the Advisor a monthly fee at the annual rate of 1.00% of the Fund's daily average net assets. At October 31, 2025, the MicroCap Fund had fees due to the Advisor of $51,690. For the year ended October 31, 2025, the MicroCap Fund had incurred advisory fees of $584,613.

The Advisor manages the Fund's investments subject to the supervision of the Fund's Board of Directors. The Advisor is responsible for investment decisions and supplies investment research and portfolio management. Under the Agreements, the Advisor, at its own expense and without reimbursement from the Fund, will furnish office space and all necessary office facilities, equipment and personnel for making the investment decisions necessary for managing the Fund and maintaining their organization, will pay the salaries and fees of all officers and directors of the Fund (except the Chief Compliance Officer's salary and the fees paid to disinterested directors) and will bear all sales and promotional expenses of the Fund.

The officers of the Fund are affiliated with the Advisor. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Fund or the Advisor for serving their respective roles. The Fund pays the salary associated with the office of the Chief Compliance Officer. Such fees are included on the Statements of Operations within chief compliance officer fees.

The Fund reimbursed the Advisor $32,295 for fees paid to financial intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services that the financial intermediaries provided to their clients, who are beneficial owners of shares of the Fund. The financial intermediaries are the record owners of the Fund on the Fund's records through omnibus accounts, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees are fees that the Fund is obligated to pay to such intermediaries, and the fees may vary based on, for example, the nature of services provided. The fees paid to such intermediaries by the Fund are only a portion of the full fee that is paid to the intermediaries, and the Advisor is obligated to pay the remaining amount. In determining the portion of the fees paid to the intermediaries that the Fund is obligated to pay, the Fund has used the "avoided cost" method, which is one of several permissible methods to determine the fees are reasonable. Based on this method, the Fund's Board of Directors determines a fee per sub-account that it believes approximates the transfer agency fee that would otherwise have been payable by the Fund if such intermediaries did not maintain the sub-account. These amounts are included within transfer agent fees on the Statement of Operations.

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**Perritt Funds, Inc.** 

**Notes to Financial Statements** 

**October 31, 2025(Continued)** 

5. Investment Transactions

Purchases and sales of securities, excluding short-term investments, for the year ended October 31, 2025, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Purchases** | **Purchases** | **Sales**  | **Sales**  |
|  | **U.S.**<br>**Governments** | **Other** | **U.S.**<br>**Governments** | **Other**  |
| MicroCap Fund | $— | $9344415 | $— | $20850571 |

---

6. Federal Income Tax Matters

As of October 31, 2025, the components of distributable earnings on a tax basis were as follows:

---

| | |
|:---|:---|
|  | **MicroCap**<br>**Fund**  |
| Cost of investments for tax purposes | $32437074  |
| Gross tax unrealized appreciation | 25231621  |
| Gross tax unrealized depreciation | (1933341)  |
| Net unrealized appreciation on investments | 23298280  |
| Distributable ordinary income | 356958  |
| Distributable long-term capital gains | 4423796  |
| Other accumulated losses | (103362)  |
| Total Distributable Earnings/(Losses) | $27975672 |

---

The difference between book and tax basis distributable earnings is primarily related to the deferral of losses on wash sales, REIT adjustments, and tax adjustments on Passive Foreign Investments Companies ("PFICs").

A regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first day of the next taxable year. Qualified late year losses are ordinary losses which occur during the portion of the Fund's taxable year subsequent to December 31.

At October 31, 2025, the MicroCap Fund deferred, on a tax basis, late year ordinary losses of $103,362. During the year ended October 31, 2025, the MicroCap Fund did not utilize capital loss carryforwards. The Fund had no capital loss carryforward for the year ended October 31, 2025.

The tax composition of distributions paid during the years ended October 31, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Ordinary Income** | **Ordinary Income** | **Long-term Capital Gains** | **Long-term Capital Gains** |
|  | **2025** | **2024** | **2025** | **2024**  |
| MicroCap Fund | $— | $539629 | $— | $7519670 |

---

On November 21, 2025, the Fund paid the following Long-Term capital gains distributions:

---

| | |
|:---|:---|
| **Fund**  | **Long-Term**  |
| Perritt MicroCap Opportunities Fund | $1.97924 |

---

The Fund designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Fund related to net capital gain to zero for the tax year ended October 31, 2025.

7. Restricted Securities

The Fund may own investment securities which are unregistered and thus restricted as to resale. These securities are valued by the Fund after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer's financial performance. Where future disposition of these securities requires registration

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**Perritt Funds, Inc.** 

**Notes to Financial Statements** 

**October 31, 2025(Continued)** 

under the Securities Act of 1933, the Fund has the right to include these securities in such registration, generally without cost to the Fund. The Fund has no right to require registration of the unregistered securities they hold. As of October 31, 2025, the Fund did not hold any restricted securities.

Under the Fund's organizational documents, their officers and directors are indemnified by the Fund against certain liabilities arising out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. Currently, the Fund expects the risk of loss to be remote.

8. Reorganization

Effective October 25, 2024, the Perritt Ultra MicroCap Fund reorganized into the Perritt MicroCap Fund, respectively (the "October Reorganization"). The MicroCap Fund was deemed to be the accounting survivor for financial reporting purposes, and as a result, the financial statements and financial highlights of the MicroCap Fund reflect the operations of the MicroCap Fund for the periods prior to the October Reorganization.

As a tax-free reorganization, any unrealized appreciation or depreciation on the securities on the date of reorganization was treated as a non-taxable event, thus the cost basis of the securities held reflect their historical cost basis as of the date of the reorganization. Immediately prior to the October Reorganization, the net assets, fair value of investments, net unrealized appreciation/(depreciation) and fund shares outstanding of the MicroCap Fund and the Ultra MicroCap Fund were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Net Assets** | **Fair Value of** <br>**Investments** | **Net Unrealized** <br>**Appreciation/**<br>**Depreciation** | **Shares** <br>**Outstanding**  |
| Perritt MicroCap Fund | $53665023 | $52819635 | $19869469 | 2244261  |
| Perritt Ultra MicroCap Fund | $9217519 | $8490667 | $2899050 | 589854 |

---

In connection with the October Reorganization, the net assets of the Ultra MicroCap Fund were acquired by the MicroCap Fund on October 25, 2024. The acquisition was accomplished by a tax-free exchange of all shares of the Ultra MicroCap Fund for shares of the MicroCap Fund as described in the prior table. For financial reporting purposes, the MicroCap Fund is deemed to be the accounting survivor. The assets received and shares issued by the MicroCap Fund were recorded at market value and, where not available, fair value; and, the cost basis of the investments received from the Ultra MicroCap Fund were carried forward to align ongoing reporting of the MicroCap Funds' realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Information with respect to the net assets and other relevant operating data for the MicroCap Fund and the Ultra MicroCap Fund on the merger date are included below:

---

| | | |
|:---|:---|:---|
| **Before October Reorganization** | **Perritt Ultra** <br>**MicroCap Fund** | **Perritt MicroCap**<br>**Opportunities Fund**  |
| **Total Fund**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares | &nbsp;&nbsp; 589854 | &nbsp;&nbsp;&nbsp; 2243756  |
| &nbsp;&nbsp;&nbsp; Net Assets | &nbsp;&nbsp; $9217519 | &nbsp;&nbsp;&nbsp; $53665023  |
| &nbsp;&nbsp;&nbsp; Net Asset Value | &nbsp;&nbsp; $15.63 | &nbsp;&nbsp;&nbsp; $23.94 |

---

---

| | | |
|:---|:---|:---|
| **After October Reorganization** | **Perritt Ultra** <br>**MicroCap Fund** | **Perritt MicroCap**<br>**Opportunities Fund**  |
| **Total Fund**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares | 0 | &nbsp;&nbsp;&nbsp; 2629145  |
| &nbsp;&nbsp;&nbsp; Net Assets | $0 | &nbsp;&nbsp;&nbsp; $62882543  |
| &nbsp;&nbsp;&nbsp; Net Asset Value | $0 | &nbsp;&nbsp;&nbsp; $23.92  |
| &nbsp;&nbsp;&nbsp; Exchange Ratio | 0.65336260 | &nbsp;&nbsp;&nbsp; — |

---

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt Funds, Inc.** 

**Notes to Financial Statements** 

**October 31, 2025(Continued)** 

Assuming the acquisition had been completed on November 1, 2023, the beginning g of the annual reporting period of the MicroCap Fund, the Ultra MicroCap Fund's pro forma results of operation for the period ended October 31, 2024 are as follow:\*

---

| | |
|:---|:---|
| Net Investment Income | $(322329)  |
| Net Realized Gains on Investments | $4696065  |
| Net Unrealized Appreciation on Investments | $5739413  |
| Net Increase in Net Assets Resulting from Operaions | $10113149 |

---

\* This information is unaudited.

9. Line of Credit Arrangement

The MicroCap Fund is a party to uncommitted line of credit arrangement with U.S. Bank, N.A. with an expiration date of December 1, 2025, under which the MicroCap Fund may borrow up to $2,500,000, subject to certain restrictions and covenants. Interest is charged on borrowings at the prevailing Prime Rate which was 7.00% as of October 31, 2025. The Fund has borrowed under these arrangements from time to time to increase the efficiency of cash flow management. For the year ended October 31, 2025, the MicroCap Fund did not borrow on the line of credit. As of October 31, 2025, the MicroCap Fund had no outstanding borrowings on the line of credit. Interest charged on the borrowings is recorded as other expense in the Statement of Operations.

10. Redemption Fee

The Fund charges a 2.00% redemption fee to those who buy and sell shares within 90 calendar days or less. The redemption fee is retained for the benefit of long-term shareholders, and recorded as additional capital in the Statements of Changes in Net Assets.

11. Transactions with Affiliates

During the year ended October 31, 2025, MicroCap Fund did not hold any securities that were considered affiliated.

The Fund is permitted to purchase or sell securities to another Fund under specified conditions outlined in procedures adopted by the Board of Directors. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another Fund complies with Rule 17a-7 of the 1940 Act. For the year ended October 31, 2025, the MicroCap Fund did not engage in securities transactions pursuant to Rule 17a-7 of the 1940 Act.

12. Subsequent Events

Subsequent to the end of the fiscal year, the Fund announced a planned merger with the North Star Micro Cap Fund. The transaction was publicly announced November 28, 2025 and is expected to close on February 27, 2026. The transaction is subject to shareholder approval. Following the merger, the North Star Micro Cap Fund will be the surviving entity.

13<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**PERRITT FUNDS, INC.** 

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Shareholders and Board of Directors of

Perritt Funds, Inc.

<u>Opinion on the Financial Statements</u>

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Perritt Funds, Inc., comprising Perritt MicroCap Opportunities Fund (the "Fund"), as of October 31, 2025, 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 then ended, the financial highlights for each of the five years in the period then ended, 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 Fund as of October 31, 2025, the results of its 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

<u>Basis for Opinion</u>

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund'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 Fund 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.

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 October 31, 2025, by correspondence with the custodian. 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.

We have served as the Fund's auditor since 2009.

![](efp-20952_sign.jpg)

COHEN & COMPANY, LTD.

Cleveland, Ohio

December 26, 2025

14<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt Funds, Inc.** 

**Additional Information** 

**Qualified Dividend Income/Dividends Received Deductions (Unaudited)** 

For the fiscal year ended October 31, 2025, certain dividends paid by the Fund may be subject to a maximum tax rate of 23.8%, as provided for by the Jobs and Growth Tax Reconciliation Act of 2003. The percentage of dividends declared from ordinary income designated as qualified dividend income was as follows:

---

| | |
|:---|:---|
| **Fund Name** | **Qualified**<br>**Dividend Income**  |
| Perritt MicroCap Opportunities Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00% |

---

For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended October 31, 2025 was as follows:

---

| | |
|:---|:---|
| **Fund Name** | **Dividends**<br>**Received** <br>**Deductions**  |
| Perritt MicroCap Opportunities Fund | &nbsp;&nbsp;&nbsp; 0.00% |

---

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for the Fund were as follows:

---

| | |
|:---|:---|
| **Fund Name** | **Short-Term** <br>**Capital Gains**  |
| Perritt MicroCap Opportunities Fund | &nbsp;&nbsp;&nbsp;&nbsp; 0.00% |

---

The Statement of Additional Information (SAI) includes additional information about the Fund's directors and is available, without charge, upon request, by calling 1-800-331-8936.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds' Form N-PORT reports are available on the Commission's website at http://www.sec.gov.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling the Advisor at 1-800-331-8936 and on the Securities and Exchange Commission's website at http://www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-800-331-8936 and on the Securities and Exchange Commission's website at http://www.sec.gov.

Household Delivery of Shareholder Documents: To reduce expenses, the Fund may mail only one copy of the Fund's prospectus, SAI and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call the Funds at 1-800-331-8936 or contact your financial institution. You will begin receiving individual copies thirty days after receiving your request.

Electronic Delivery of Shareholder Documents: You may choose to receive the Fund's prospectus and annual and semi-annual reports electronically. To sign up for electronic delivery, visit www.icsdelivery.com and select the first letter of your brokerage firm's name. Then, select your brokerage institution from the list that follows, fill out the appropriate information and provide an e-mail address where you would like your information sent. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial advisor.

15<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Perritt Funds, Inc.** 

**Privacy Policy** 

We collect the following nonpublic personal information about you:

&nbsp;&nbsp;&nbsp;&nbsp;• Information we receive from you on or in applications
 or other forms, including but not limited to, your name, address, phone number, and social security number; and

&nbsp;&nbsp;&nbsp;&nbsp;• Information about your transactions with us,
 our affiliates or others, including but not limited to, your account number and balance, parties to transactions, cost basis information
 and other financial information.

We do not disclose any nonpublic personal information about our current or former shareholders to nonaffiliated third parties, except as permitted by law. For example, we are permitted by law to disclose all the information we collect to our transfer agent to process your transactions. Furthermore, we restrict access to your nonpublic personal information to those persons who require such information to provide products or services to you. We maintain physical, electronic, and procedural safeguards through our transfer agent, U.S. Bank Global Fund Services, that comply with federal standards to guard your nonpublic personal information.

In the event that you hold shares of the Funds through a financial intermediary, including, but not limited to, a broker-dealer, bank or trust company, the privacy policy of your financial intermediary would govern how your nonpublic personal information would be shared with nonaffiliated third parties.

16<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

![](perritt_logo.jpg)

**Investment Advisor** 

**Perritt Capital Management, Inc.** 

**300 South Wacker Drive, Suite 600** 

**Chicago, IL 60606-6703** 

**800-331-8936** 

**Independent Registered** 

**Public Accounting Firm** 

**Cohen & Company, Ltd.** 

**1350 Euclid Avenue** 

**Cleveland, OH 44115** 

**Legal Counsel** 

**Foley & Lardner LLP** 

**777 East Wisconsin Avenue** 

**Milwaukee, WI 53202** 

**Custodian** 

**U.S. Bank, NA** 

**1555 North River Center Drive, Suite 302** 

**Milwaukee, WI 53212** 

**Transfer Agent** 

**and Dividend Disbursing Agent** 

**U.S. Bancorp Fund Services, LLC,** 

**doing business as U.S. Bank Global Fund Services** 

**P.O. Box 701** 

**Milwaukee, WI 53201-0701** 

**Distributor** 

**Quasar Distributors, LLC** 

**111 East Kilbourn Avenue, Suite 2200** 

**Milwaukee, WI 53202** 

For assistance with your existing account, call our Shareholder Service Center at 1-800-332-3133.

The Funds' Statements of Additional Information contain information about the Funds' directors and are available

without charge upon request by calling 1-800-332-3133.

------

**[**TABLE OF CONTENTS**](#TOC)**

(This Page Intentionally Left Blank.)

------

**[**TABLE OF CONTENTS**](#TOC)**

![](perrittfunds_02.jpg)

**MicroCap Opportunities Fund – PRCGX** 

**Minimum Initial Investment $1,000** 

**IRA Minimum Initial Investment $250** 

**Dividend Reinvestment Plan** 

**Systematic Withdrawal Plan** 

**Automatic Investment Plan** 

**Retirement Plans Including:** 

---

| | |
|:---|:---|
| • **IRA**  | • **Roth IRA**  |
| • **SEP-IRA**  | • **Coverdell Education**  |
| • **Simple IRA**  | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Account** |

---

**2% redemption fee imposed for shares held ninety (90) calendar days or less.** 

**This report is authorized for distribution only to shareholders and others who have received a copy of the prospectus of the Perritt MicroCap Opportunities Fund.** 

**300 S. Wacker Drive • Suite 600 • Chicago, IL 60606-6703** 

**Tel 312-669-1650 • 800-331-8936 • Fax: 312-669-1235** 

**E-mail: info@PerrittCap.com** 

**Web Site: www.perrittcap.com**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial Highlights are included within the financial statements filed under Item 7(a) of this Form.

**<u>Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.</u>**

There were no changes in or disagreements with accountants during the period covered by this report.

**<u>Item 9. Proxy Disclosure for Open-End Investment Companies.</u>**

There were no matters submitted to a vote of shareholders during the period covered by this report.

**<u>Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.</u>**

See Item 7(a).

**<u>Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.</u>**

Not applicable

**<u>Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.</u>**

Not applicable to open-end investment companies.

**<u>Item 13. Portfolio Managers of Closed-End Management Investment Companies.</u>**

 

Not applicable to open-end investment companies.

**<u>Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.</u>**

Not applicable to open-end investment companies.

**<u>Item 15. Submission of Matters to a Vote of Security Holders.</u>**

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.

**<u>Item 16. Controls and Procedures.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant's President/Principal Executive Officer and Treasurer/Principal Financial Officer have reviewed the Registrant's
 disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of
 a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under
 the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are
 effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported
 and made known to them by others within the Registrant and by the Registrant's service provider.

&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act)
 that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the
 Registrant's internal control over financial reporting.

**<u>Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies</u>**

Not applicable to open-end investment companies.

**<u>Item 18. Recovery of Erroneously Awarded Compensation.</u>**

Not applicable

**<u>Item 19. Exhibits.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;*(a)* [(1) *Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit.* Incorporated by reference to the registrant's Form N-CSR filed January 8, 2010.](https://www.sec.gov/Archives/edgar/data/1286087/000089418910000055/coe.htm)

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant's securities are listed. Not Applicable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(3) *A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).* Filed herewith.](per-efp20952_ex99cert.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) *Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.* Not applicable to open-end investment companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Change in the registrant's independent public accountant. Provide the information called for by Item 4 of Form 8-K under the Exchange
 Act (17 CFR 249.308). Unless otherwise specified by Item 4, or related to and necessary for a complete understanding of information not
 previously disclosed, the information should relate to events occurring during the reporting period. Not applicable to open-end investment
 companies.

 

&nbsp;&nbsp;&nbsp;&nbsp;*(b)* [*Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* Furnished herewith.](per-efp20952_ex99906cert.htm)

**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) Perritt Funds, Inc.

---

| | |
|:---|:---|
| By (Signature and Title)\* | /s/ Michael J. Corbett |
|  | Michael J. Corbett, President (Principal Executive Officer) |

---

Date <u>1/7/2026</u>

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/ Michael J. Corbett |
|  | Michael J. Corbett, President (Principal Executive Officer) |

---

Date <u>1/7/2026</u>

---

| | |
|:---|:---|
| By (Signature and Title)\*)\* | /s/ Matthew Brackmann |
|  | Matthew Brackmann, Treasurer (Principal Financial Officer) |

---

Date <u>1/7/2026</u>

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

## Ex-99.Cert

**EX.99.CERT**

**<u>CERTIFICATIONS</u>**

I, Michael J. Corbett, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of Perritt Funds, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report
based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee
of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | 1/7/2026 | /s/ Michael J. Corbett |
|  |  | Michael J. Corbett |
|  |  | President (Principal Executive Officer) |

---

**<u>CERTIFICATIONS</u>**

I, Matthew Brackmann, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of Perritt Funds, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report
based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee
of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | 1/7/2026 | /s/ Matthew Brackmann |
|  |  | Matthew Brackmann |
|  |  | Treasurer (Principal Financial Officer) |

---

## Exhibit 99.906

**EX.99.906CERT**

**<u>Certification Pursuant to Section 906 of the Sarbanes-Oxley Act</u>**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of the Perritt Funds, Inc., does hereby certify, to such officer's knowledge, that the report on Form N-CSR of the Perritt Funds, Inc. for the year ended October 31, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, and that the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Perritt Funds, Inc. for the stated period.

---

| | |
|:---|:---|
| /s/ Michael J. Corbett | /s/ Matthew Brackmann |
| Michael J. Corbett | Matthew Brackmann |
| President (Principal Executive Officer), Perritt Funds, Inc. | Treasurer (Principal Financial Officer), Perritt Funds, Inc. |

---

Dated: <u>1/7/2026</u>

This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by Perritt Funds, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934.