Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 53

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 53
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 offer is accepted by the holder. If, when applying this criterion, the convertible debt instrument had been
exchanged or modified (without being deemed substantially different) within the one-year period leading up to the offer acceptance date,
an entity should compare the terms provided in the inducement offer with the terms that existed one year before the offer acceptance date.
The amendments do not change the other criteria that are required to be satisfied to account for a settlement transaction as an induced
conversion. The amendments in this Update also make additional clarifications to assist stakeholders in applying the guidance. Under the
amendments, the incorporation, elimination, or modification of a VWAP formula does not automatically cause a settlement to be accounted
for as an extinguishment; an entity should instead assess whether the form and amount of conversion consideration are preserved (that
is, provided for in the inducement offer) using the fair value of an entity’s shares as of the offer acceptance date. The amendments
in this Update also clarify that the induced conversion guidance applies to a convertible debt instrument that is not currently convertible
as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. This update
will be effective for financial statements issued for fiscal years beginning after December 15, 2025. Early adoption is permitted for
all entities that have adopted the amendments in update 2020-06. The Fund is currently evaluating the impact of this standard on the
consolidated financial statements.

Accounting
Standards Recently Adopted - On January 1, 2024, we adopted ASU 2023-07, “ Segment Reporting (Topic 280):
Improvements to Reportable Segment Disclosures”. The amendments in this ASU require improved reportable segment information on
an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. SeeNote 3 - Segmentsfor the incremental disclosures.

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  TableOfContents  

  (11)      SUBSEQUENT EVENTS  

Our Management
performed an evaluation of the Fund’s activity through the date the financial statements were issued, noting the following subsequent
events:

Issuance
of Convertible Note and Warrants. On February 10, 2025, we issued a 1-year senior convertible promissory note bearing interest at
the rate of 10.0% per annum in exchange for $2.0 million in cash (“ Equus Note”). The Equus Note is convertible into shares