Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 45

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 45
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 Board not in connection with their roles and duties as directors, the Fund pays a rate
of $300 per hour for services rendered.

As of December
31, 2024, we accrued $62,000 in director fees.

  (5)      FEDERAL INCOME TAX MATTERS  

Deferred income tax assets and liabilities
are recorded based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered
or settled. For the tax years ended December 31, 2024, the Company’s U. S Federal statutory tax rate was 21%. The Company is also
subject to the Texas Gross Margin tax of.75% of modified taxable income as determined for Texas purposes. This combination results in
a marginal blended tax rate of approximately 21.6%.

At each of December 31, 2024, and 2023,
the tax effected amount of U. S. Federal net operating loss carryforwards (“ NOLs”) totaled $6.8 and $6.1 million respectively.
As of December 31, 2024, $1.4 million in NOLs will begin to expire in varying amounts between 2036 and 2037, and the remaining $5.4 million
can be carried forward indefinitely.

The Company has determined, after weighing
both positive and negative evidence, that the net deferred tax asset (DTA) for the Company is not more-likely-than-not to be realizable.
Therefore, a valuation allowance of $4.9 million was established at December 31, 2024 to completely offset the DTA as of that date.

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During the current period, the Company
has estimated a taxable loss. This NOL will be carried forwarded indefinitely with no expiration and is fully offset with a valuation
allowance. As such, the Company has not recorded any current income tax expense or benefit for the period. All of the Company’s
federal and state tax returns for 2020 through 2023 remain open to examination.

The provision for income taxes for the years ended December 31, 2024 consisted of the following:

  Years Ended December 31,              2024  
 ──────────────────────────────────────────────
  Current (expense) benefit:                  
  Federal                               $     
  State                                       
  Total current (expense) benefit             
  Deferred (expense) benefit:                 
  Federal                                     
  State                                       
  Total deferred (expense