13D Filing: Medallion Capital Inc and Appliance Recycling Centers Of America Inc (ARCI)

Item 5.

Interest in Securities of Issuer

As of August 21, 2017, Medallion Capital
is the beneficial owner of 15,000 shares of common stock of the Company, representing 0.2% of the 6,655,365 shares of common stock
of the Company outstanding as reported on the Company’s Form 10-Q for the quarter ended July 1, 2017 filed with the SEC on
August 21, 2017.

Dean Pickerell, the President of Medallion
Capital, served as a member of the Company’s board of directors until the Company’s annual meeting on May 18, 2015.
Mr. Pickerell did not stand for re-election at that meeting. Mr. Pickerell holds stock options which would entitle him, now or
within 60 days, to purchase 32,000 shares of Company common stock. The stock options and any shares issued upon their exercise
are owned by Mr. Pickerell and not owned by Medallion Capital, and Medallion Capital disclaims any interest in those options or
option shares. Medallion’s right to dispose and vote the 15,000 shares it owns is independent of Mr. Pickerell’s rights
in his option shares.

(b)

Voting and Dispositive Power:

Medallion Capital has sole voting and dispositive power
over all the 15,000 shares owned by it.

(c)

Transactions within 60 days:

There have been no purchases or sales
of the Company’s common stock by Medallion Capital within the last sixty days, except as follows:

(1) On May 5, 2017, Medallion Capital
sold 1,120 shares of common stock on the open market for an average price of $1.10 per share;

(2) On August 18, 2017, Medallion Capital
sold 20,880 shares of common stock on the open market for an average price of $0.62 per share;

(3) On August 21, 2017, Medallion Capital
sold 430,000 shares of common stock on the open market for an average price of $0.61 per share.

(d)

Right to Direct the Receipt of Dividends: Not applicable.

(e)

Last Date on Which Reporting Person Ceased to be a 5% Holder: August 21, 2017.

Item 6.

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

Not Applicable.

Item 7.

Material to be Filed as Exhibits.

None.