Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 15

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 7
Chunk 15
---
 such investments are freely transferable, we value them at
the closing market price on the date of valuation. For securities which are of the same class as a class of public securities but are
restricted from free trading (such as Rule 144 stock), we establish our valuation by discounting the closing market price to reflect the
estimated impact of illiquidity caused by such restrictions. We generally hold investments in debt securities to maturity. Accordingly,
we determine the fair value of debt securities on the basis of the terms of the debt securities and the financial condition of the issuer.
We value certificates of deposit at their face value, plus interest accrued to the date of valuation.

Our Board reviews
the valuation policies on a quarterly basis to determine their appropriateness and reserves the right to hire and, from time to time,
utilizes independent valuation firms to review Management’s valuation methodology or to conduct an independent valuation.

Competition

We compete with
a large number of public and private equity and mezzanine funds and other financing sources, including traditional financial services
companies such as finance companies and commercial banks. Many of our competitors are substantially larger and have considerably greater
financial, technical and marketing resources. Our competitors may have a lower cost of funds and many have access to funding sources not
available to us. In addition, certain of our competitors may have higher risk tolerances or different risk assessments, which could allow
them to consider a wider variety of investments and establish more relationships and build their respective market shares. In addition,
many of our competitors are not subject to the regulatory restrictions imposed by the 1940 Act imposes onBDCs.

We cannot
assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results
of operations. In addition, because of this competition, we may not be able to take advantage of attractive investment opportunities and
may not be able to identify and make investments that satisfy our investment objectives or meet our investment goals.

   8  

  TableOfContents  

Properties