Mon, May 19, 8:04 PM (56 days ago)
**Equus Total Return, Inc. (EQS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total investment income was $338,000, up from $283,000 in Q1 2024. - **Expenses:** Total expenses were $1,448,000, an increase from $1,373,000 in Q1 2024. - **Profit Margins:** Net investment loss was $1,110,000, slightly improved from $1,090,000 in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $1,595,000, compared to $11,418,000 in Q1 2024. - **Earnings Changes:** Net increase in net assets resulting from operations was $3,943,000, a significant improvement from a decrease of $2,395,000 in Q1 2024. **Key Metrics:** - **Net Asset Value (NAV) per Share:** Increased from $2.17 to $2.52. - **Market Price per Share:** Decreased from $1.46 to $1.01. - **Discount to NAV:** Increased from 49.3% to 59.9%. **Quarterly Performance Discussion:** - **Investment Activities:** Completed new investments and sales, including the sale of Equus Energy and the purchase of a convertible note from General Enterprise Ventures, Inc. - **Valuation:** Significant changes in unrealized appreciation/depreciation of portfolio securities, notably in Morgan E&P, LLC and General Enterprise Ventures, Inc. - **Liquidity:** Cash and cash equivalents increased to $667,000 from $262,000. **Trends and Uncertainties:** - **Economic Conditions:** Volatile oil and gas prices, economic downturns, and geopolitical events impact portfolio company valuations. - **Operational Challenges:** Going concern uncertainties due to limited cash resources and potential need for additional financing. - **Strategic Shifts:** Evaluation of opportunities to transform into an operating company and potential withdrawal from BDC status. **Future Operations Impact:** - **Transformation Plans:** Potential conversion to an operating company, subject to shareholder approval and market conditions. - **Financial Strategy:** Focus on liquidity, cost management, and strategic investments to enhance shareholder value. **Ticker:** EQS