Thu, Apr 10, 8:02 PM (16 days ago)
**Equus Total Return, Inc. (EQS) - 2024 Financial Summary** **Financial Performance:** - **Revenue:** $1.3 million (2024) vs. $0.3 million (2023). - **Net Income:** Net investment loss of $3.3 million (2024) vs. $4.0 million (2023). - **Operating Expenses:** $4.6 million (2024) vs. $4.3 million (2023). - **Earnings per Share (EPS):** -$1.38 (2024) vs. $0.96 (2023). **Strategic Overview:** - **Investment Objective:** Maximize total return through capital appreciation and current income. - **Market Position:** Focus on debt and equity securities of small to middle-market companies. - **Future Outlook:** Evaluating transformation into an operating company or permanent capital vehicle. **Risk Factors:** - **Market Risks:** Volatility in oil and gas sector, commodity price fluctuations. - **Operational Risks:** Dependence on external financing, potential liquidity issues. - **Financial Condition:** Seeking liquidity through portfolio sales and external financing. **Market Position Changes:** - **Stock Performance:** Trading at a 62.9% discount to net asset value (2024). - **Dividends:** No dividends declared in 2024. **Financial Condition:** - **Assets:** $29.9 million (2024) vs. $93.5 million (2023). - **Liabilities:** $426,000 (2024) vs. $45,260,000 (2023). - **Net Assets:** $29,510,000 (2024) vs. $48,287,000 (2023). **Key Investments:** - **Morgan E&P, LLC:** $23.5 million (2024) vs. $30.853 million (2023). - **Equus Energy, LLC:** $4.0 million (2024) vs. $10.0 million (2023). **Subsequent Events:** - **Issuance of Convertible Note and Warrants:** $2.0 million (2025). - **New Portfolio Investment:** $1.5 million (2025). - **Sale of Equus Energy:** $4.0 million (2025). **Regulatory Status:** - **BDC Status:** Evaluating withdrawal to transform into an operating company. - **RIC Status:** Elected not to qualify as a RIC in Q4 2024, subject to corporate tax. **Conclusion:** Equus Total Return, Inc. faces significant challenges in 2024, including financial losses and market volatility. The company is exploring strategic transformations to enhance shareholder value and address liquidity concerns. The future outlook depends on successful execution of these strategies and market conditions.