Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 39

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 39
---
                                                                                2,500                                                                  2,500  
  Purchases of portfolio securities                                                                                  150                                                                    150  
  Fair value as of December 31, 2022      $                                                                       15,650      $                          $                              $15,650  

Fair value measurements
can be sensitive to changes in one or more of the valuation inputs. Changes in discount rates, EBITDA or EBITDA multiples (or revenue
or revenue multiples), each in isolation, may change the fair value of certain of our investments. Generally, an increase/(decrease) in
market yields, discount rates, or an increase/(decrease) in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in
a corresponding increase/(decrease), respectively, in the fair value of certain of our investments. In the case of our holdings in Morgan
and Equus Energy, we may also consider acreage value, proved reserve multiples, daily production multiples, and discount rates.

Finally, industry trends, market forecasts, and comparable
transactions in sectors in which we hold a Level 3 investment are also taken into account when assessing the value of these investments.

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  TableOfContents  

The following table summarizes the significant non-observable
inputs in the fair value measurements of our Level 3 investments by category of investment and valuation technique as of December 31,
2024:

                                                                                                                                          Range                                           
  (in thousands)                             Fair Value      Valuation Techniques                 Unobservable Inputs                     Minimum        Maximum        Weighted Average  
  Limited liability company investments                                                                                                                                                   
  Equus Energy, LLC                                                                               Acreage Value (per acre)                $1,000         $4,000         $1,784            
                                                $ 4,000      Guideline Transaction Method         Proved Reserve Multiple                 6.2x           10.8x          8.65x             
                                                                                                  Daily Production Multiple               24,921.7x      45,307.1x      40,787.19x        
                                                             Discounted Cash Flow                 Discount Rate                           10.9%          10.9%          10.9%             
                                                             Transaction Price                                                            $4,000         $4,000         $4,000            
  Morgan E& P, LLC                                           Guideline Public Company Method      Proved Reserve Multiple                 6,415x         7,342x         6,878.5x          
                                                                                                  Daily Production Multiple               29