Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 46

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 46
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) benefit            
  Total benefit (expense):                    
  Federal                                     
  State                                       
  Total benefit (expense)               $     

As of December 31, 2024, the Company has not recorded a reserve
for uncertain tax positions.

The components of the net deferred tax assets (liabilities)
in the Fund’s balance sheets were as follows:

  As of December 31,                                        2024  
 ──────────────────────────────────────────────────────────────────
  Deferred tax assets:                                            
  Charitable Contributions                                 4,347  
  Net operating loss carryforwards                     6,754,679  
  Total Deferred Tax Assets                            6,759,026  
  Valuation allowance                                (4,892,336)  
  Deferred Tax Assets after Valuation Allowance        1,866,690  
  Deferred tax liabilities:                                       
  Mark to Market Unrealized Gain/Loss                (1,866,690)  
  Total net deferred tax assets (liabilities)                  -  

The provision for income taxes varies from the maximum federal statutory
rate of 21% for the year ended December31, 2024, as follows:

  Years Ended December 31,                                           2024  
 ───────────────────────────────────────────────────────────────────────────
  Income tax expense (benefit) at federal statutory rate      (3,939,998)  
  Change in tax status                                          (954,402)  
  Effect of state income taxes                                          -  
  Non-deductible Permanent Items                                    1,935  
  2023 Return to Provision Adjustment                                 128  
  Change in valuation allowance                                 4,892,337  
  Total                                                                 -  

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  TableOfContents  

The
Fund’s accounting policy related to income tax penalties and interest assessments is to accrue for these costs and record a
charge to income tax expenses during the period that the Fund takes an uncertain tax position through resolution with the taxing
authorities or expiration of the applicable statute of limitations.

All of the
Fund’s federal and state tax returns for 2021 through 2024 remain open to examination. We believe that there are no tax positions
taken or expected to be taken that would significantly increase or decrease unrecognized tax benefits within twelve months of the reporting
date.

  (6)      COMMITMENTS AND CONTINGENCIES  

Lease Commitments.
We had an operating lease for office space that expired in September 2014. Our current office space lease is