Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 47

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 47
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 month-to-month. Rent expense
under the operating lease agreement, inclusive of common area maintenance costs, was $93,000 for the years ended December 31, 2024, 2023, and 2022, respectively. We have no other leases.

Portfolio
Companies. As of December 31, 2024 and, 2023, we had $0 and $1.7 million in outstanding commitments to our portfolio company
investments. Under certain circumstances, we may be called on to make follow-on investments in certain portfolio companies. If we do not
have sufficient funds to make follow-on investments, the portfolio company in need of the investment may be negatively impacted. Also,
our equity interest in the estimated fair value of the portfolio company could be reduced. Follow-on investments may include capital infusions
which are expenditures made directly to the portfolio company to ensure that operations are completed, thereby allowing the portfolio
company to generate cash flows to service the debt.

Legal
Proceedings. From time to time, the Fund is also a party to certain proceedings incidental to the normal course of our business including
the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot at this
time be predicted with certainty, we do not expect that these proceedings will have a material effect upon the Fund’s financial
condition or results of operations.

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  TableOfContents  

  (7)      PORTFOLIO SECURITIES  

2024 PortfolioActivity

The following table summarizes significant
investment activity during the year ended December 31, 2024 (inthousands):

                        Investment                                                                            
                        New                            Existing                                               
  Portfolio             Cash             Non-Cash      Follow-On                   PIK      Total             
  Morgan E& P, LLC      $                $             $                2,247      $        $          2,247  
                        $                $             $                2,247      $        $          2,247  

During 2024,
we recorded a decrease of $15.6 million in net unrealized appreciation, from an unrealized appreciation of $24.5 million at December 31,
2023 to a net unrealized appreciation of $8.9 million at December 31, 2024. Such change in unrealized appreciation resulted primarily
from the decrease in the fair value of our holdings in Morgan E& P, LLC of $9.6 million, principally due to a lower forward price curve
for oil, as