Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 51

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 51
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 Accounts payable and accrued liabilities                                           22                   (5                   7  
  Due to Parent                                                                      2                  (224                   —  
  Net cash used in operating                                                         (64                (130                (527  
  Cash flows from investing activities:                                                                                           
  Investment in oil & gas properties                                                 —                    (4                 (58  
  Net cash used in investing activities                                              —                    (4                 (58  
  Cash flows from financing activities:                                                                                           
  Capital contribution                                                               —                     —                 150  
  Net cash provided by investing                                                     —                     —                 150  
  Net decrease in cash                                                               (64                (134                (435  
  Cash and cash equivalents at beginning of period                                   71                  205                 640  
  Cash and cash equivalents at end of period            $                            7        $           71      $          205  

  66  

  TableOfContents  

  (9)      MORGAN E& P, LLC  

Morgan E& P,
LLC (“ Morgan”) was organized by the Fund on April 3, 2023 as a Delaware limited liability company and a wholly-owned subsidiary
of the Fund. During 2023, Morgan acquired 5,897 net acres, in the Bakken/Three Forks formation in the Williston Basin of North Dakota,
and acquired approximately 810 additional net acres during the second quarter of 2024. The acreage and associated mineral rights were
acquired from Pro Energy I LLC (“ Pro Energy”) who received a carried working interest of 20% in the acquired acreage.

In May 2023,
we entered into an agreement with Morgan to provide it up to $10.0 million in senior debt financing, subject to a schedule of disbursements
and draws that we determine. This amount was subsequently amended in 2024 to $10.5 million. As of December 31, 2024, Morgan had drawn
the full $10.5 million under this facility.

During the
fourth quarter of 2024, Morgan entered into an agreement to acquire the carried working interest held by Pro Energy in exchange for a
payment of $2.4 million in cash.

Below is summarized
audited condensed consolidated financial information for Morgan E& P, LLC as of December 31, 2024 and 2023 and for the year ended December
31, 2024 and the period from inception (April 3, 2023) through December 31,