Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 2

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 1
Chunk 2
---
2 before
collapsing in 2023 and have thereafter remained relatively stable, finishing the year ended December 31, 2024 at $3.40 per MMBTU. Recent
oil price stability has been a significant factor in increased consolidation activity in the Williston Basin region in North Dakota where
Morgan E& P, LLC holds its development rights.

Authorization
to Withdraw BDC Election. Holders of a majority of our outstanding common stock have previously approved our cessation as a BDC under
the 1940 Act and have authorized our Board to cause the Fund’s withdrawal of its election to be classified as a BDC, effective as
of a date designated by the Board and our Chief Executive Officer. Although this authorization has since expired, we expect to receive
an additional authorization from our stockholders in the future. This authorization is a consequence of our expressed intent to transform
Equus into an operating company or a permanent capital vehicle. Notwithstanding any such authorization to withdraw our BDC election, we
will not submit any such withdrawal unless and until Equus has entered into a definitive agreement to effect a transformative transaction.
Further, even if we are again authorized to withdraw our election as a BDC, we will require a subsequent affirmative vote from holders
of a majority of our outstanding voting shares to enter into any such definitive agreement or change the nature of our business. While
we are presently evaluating various opportunities that could enable us to accomplish this transformation, we cannot assure you that we
will be able to do so within any particular time period or at all. Moreover, we cannot assure you that the terms of any such transformative
transaction would be acceptable to us.

Outlook.
Our Board and management of the Fund (“ Management”) continue to believe that current market conditions and recent portfolio
performance dictate the need to pursue a more active role in the management of our remaining investments and to seek liquidity events
at the appropriate time to protect and enhance shareholder value. These activities include continuous monitoring and intensive reviews
of portfolio company performance and expectations, providing follow-on capital when necessary, and the exploration of liquidity events
for certain portfolio companies to position the Fund to maximize investment returns and, to the extent we intend to remain a BDC, actively
pursuing suitable new investments for the Fund.

InvestmentObjective

To the extent
we remain a BDC and do not complete the transformation of Equus into an operating company as described above, our investment objective
is to maximize the total return to our stockholders in the