Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 48

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 48
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 well as the reclassification of certain of its proved reserves from producing to non-producing. The change in unrealized appreciation
also resulted from the decrease in fair value of our holding in Equus Energy, LLC of $6.0 million, principally due to various factors,
including (i) decreases in the forward curve for oil and natural gas and its effect on the economic prospects of Equus Energy regarding
future development of its oil and gas properties, and (ii) indications of interest from third parties regarding the possible sale of these
properties during the fourth quarter of 2024. See Subsequent Eventsbelow where we sold our interest in Equus Energy in March 2025
for a combination of cash and preferred stock valued at $4.0 million.

2023 PortfolioActivity

The following table summarizes significant
investment activity during the year ended December 31, 2023 (inthousands):

                        Investment                                                                            
                        New                                       Existing                                    
  Portfolio             Cash                        Non-Cash      Follow-On        PIK      Total             
  Morgan E& P, LLC      $                8,253      $             $                $        $          8,253  
                        $                8.253      $             $                $        $          8,253  

During 2023,
we recorded an increase of $17.0 million in net unrealized appreciation, from an unrealized appreciation of $7.5 million as of December
31, 2022 to a net unrealized appreciation of $24.5 million as of December 31, 2023. Such change in unrealized appreciation resulted primarily
from the increase in the fair value of our holdings in Morgan E& P, LLC of $22.6 million, principally due to substantial increases
in Morgan’s reserves and the reclassification of certain of its proved reserves from undeveloped to producing. The increase in the
fair value of Morgan was offset by the decrease in fair value of our holding in Equus Energy, LLC of $5.7 million, principally due to
decreases in the forward curve for natural gas and its effect on the economic prospects of Equus Energy regarding future development of
its gas properties.

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  TableOfContents  

2022 PortfolioActivity

The following table
summarizes significant investment activity during the year ended December 31, 2022 (in thousands):

                         Investment                                              
                         New              Existing                               
  Portfolio Company                                        Follow-On      Total  
  Equus Energy, LLC      $