Company: EQS
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001712543-25-000034
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Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 4
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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and
Procedures

We maintain disclosure
controls and other procedures that are designed to ensure that information required to be disclosed by the Fund in the reports that we
file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and
Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, with
the participation of our Fund’s Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the design
and operations of the Fund’s “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Securities
Exchange Act of 1934) as of March 31, 2025. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that the Fund’s disclosure controls and procedures were not effective due to the material weaknesses in internal control over financial
reporting described below.

Material Weakness in Internal Control
over Financing Reporting Existing as March 31, 2025

A material weakness
is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of a company's annual or interim consolidated financial statements will not be prevented or detected on a
timely basis.

Management concluded
that the previously disclosed material weakness relating to the Fund’s controls relating to the design and operation of management
review over the valuation of the Fund’s portfolio investment, including management’s review procedures over the completeness
and accuracy of the underlying data and information supplied to third parties assisting management by recommending a range of reasonable
fair values continued to exist as of March 31, 2025.

Although this material weakness did not result in a material misstatement of our
consolidated financial statements for the periods then presented, there is a possibility that, had the material weakness continued undetected,
it could have led to a material misstatement of portfolio fair values and related disclosures. Accordingly, management has concluded
that this control deficiency constitutes a material weakness.

Management believes
that the financial statements included in this Quarterly Report on Form 10-Q present fairly in all material respects the Fund’s
financial condition, results of its operations, changes in its net assets and its cash flows for the periods presented. We believe that
the consolidated financial statements included in