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

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 25
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 investments are Level 3 investments in accordance with Accounting Standards Codification Topic 820 and utilize
inputs that are unobservable and significant to the fair value measurement.  Management engaged an independent third-party valuation
firm and reserve engineers to assist in the determination of the fair value estimate of the Fund’s limited liability company Investments.

We
identified the valuation of the Fund’s limited liability company investments as a critical audit matter. The principal considerations
for our determination are significant judgments involved in the determination of (i) the valuation techniques utilized to value these
investments which include the guideline transaction method, guideline public company method, the discounted cash flow method and
transaction price method, and (ii) the use of unobservable inputs in these valuation techniques, which include, acreage value multiples,
estimated future production, proved reserve multiple, daily production multiple and discount rate. Auditing these elements was
complex because it involved especially subjective auditor judgment, including the use of personnel with specialized skill and knowledge.

The
primary procedures we performed to address this critical audit matter included:

  Testing                                                                                           

  Utilizing                                                                                    

/s/ BDO USA, P. C.

We have served as the Fund's auditor since 2014.

Houston, Texas

April 10,2025

  40  

  TableOfContents  

EQUUS TOTAL RETURN, INC. BALANCE
SHEETS

                                                                                                                                                                                                            December 31,                   December 31,               
                                                                                                                                                                                                            2024                           2023                       
  (in thousands, except shares and per share amounts)                                                                                                                                                                                                                 
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Assets                                                                                                                                                                                                                                                              
  Investments in portfolio securities at fair value:                                                                                                                                                                                                                  
  Control investments (cost at $18,611 and $16,364, respectively)                                                                                                                                           $                  27,500      $                  40,853  
  Total investments in portfolio securities at fair value                                                                                                                                                                      27,500                         40,853  
  U. S. Treasury Bills                                                                                                                                                                                                              —                         44,955  
  Cash and cash equivalents                                                                                                                                                                                                       262                          6,533  
  Restricted cash                                                                                                                                                                                                                   —                            450  
  Accounts receivable from affiliates                                                                                                                                                                                             678                            139  
  Accrued interest                                                                                                                                                                                                              1,470                            225  
  Other assets                                                                                                                                                                                                                     26