Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 56

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 9
Chunk 56
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 of the Fund including, in particular, the fair value of portfolio investments
held by the Fund.

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 performed
an assessment of the effectiveness of the Fund’s internal control over financial reporting as of December 31, 2024, based upon criteria
in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“ COSO”).
Based on this assessment, management has concluded that the Fund did not maintain effective internal control over financial reporting
as of December 31, 2024, due to the material weaknesses described below.

A material
weakness was identified in our internal control over financial reporting 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.

Although this
material weakness did not result in a material misstatement of our consolidated financial statements for the periods 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.

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Management
believes that the financial statements included in this Annual Report on Form 10-K 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 audited consolidated financial statements included in this Annual Report on Form 10-K are accurate.

We have begun
the process of, and we are focused on, enhancing effective internal control measures to improve our internal control over financial reporting
and remediate the material weaknesses. Our internal control remediation efforts include the following:

  Enhancing existing controls that address the completeness and accuracy                                                                       

  Enhancing policies and procedures to improve the precision of review                                         

We believe
our planned actions to enhance our processes and controls will address the material weakness, but these actions are subject to ongoing
management evaluation, and we will need a period of execution to demonstrate remediation. We