Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 8

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 1
Chunk 8
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 of our competitors are not subject to the regulatory restrictions imposed by the 1940 Act imposes onBDCs.

We cannot
assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results
of operations. In addition, because of this competition, we may not be able to take advantage of attractive investment opportunities and
may not be able to identify and make investments that satisfy our investment objectives or meet our investment goals.

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  TableOfContents  

Properties

Our principal
executive offices are located at 700 Louisiana St., 48thFloor, Houston, Texas 77002. Should we remain a BDC and not transform
into an operating company or a permanent capital vehicle, we believe our office facilities are suitable and adequate for our operations
as currently conducted and contemplated.

Business Development CompanyRequirements

Qualifying Assets.
As a BDC, we may not acquire any asset other than qualifying assets, as defined by the 1940 Act, unless, at the time the acquisition is
made, the value of our qualifying assets represents at least 70% of the value of our total assets. The principal categories of qualifying
assets relevant to our business are the following:

  Securities purchased in transactions not involving any public offering                                                                         

  Securities received in exchange for or distributed with respect to securities                                 

  Cash, cash items, government securities, or high quality debt securities  
  maturing in one year or less from the time of investment.                 
 ────────────────────────────────────────────────────────────────────────────

To include certain
securities above as qualifying assets for the purpose of the 70% test, a BDC must make available to the issuer of those securities significant
managerial assistance, such as providing significant guidance and counsel concerning the management, operations, or business objectives
and policies of a portfolio company. We offer to provide significant managerial assistance to each of our portfolio companies.

We may not
change the nature of our business so as to cease to be, or withdraw our election as, a BDC unless authorized by vote of the holders of
the majority of our outstanding voting securities, as defined in the 1940 Act. As noted above, we have previously received this authorization
from our shareholders to withdraw our BDC election and, although this authorization has expired, we expect to receive an additional authorization
by our stockholders in the future. This authorization was a consequence of our plan to effect a transformation of Equus by: (