Mon, Aug 19, 8:58 PM (148 days ago)
For the quarter ending June 30, 2024, Equus Total Return, Inc. reported a net increase in net assets from operations of $3.9 million, reflecting a substantial unrealized appreciation of $4.75 million in control investments, primarily due to acquisitions in the energy sector. Investment income surged to $331,000 compared to $12,000 in the prior year, driven by interest from control investments and U.S. Treasury bills. However, the company experienced a net investment loss of $880,000, consistent with previous periods, mainly due to rising professional fees and compensation expenses. Total assets increased to $103.8 million, with cash and equivalents dropping to $1.9 million, as a significant portion was tied up in U.S. Treasury bills. The net asset value per share rose to $3.66 from $3.55. Despite this, the stock traded at a 63.9% discount to NAV, indicating market skepticism. The company continues to face liquidity challenges and is evaluating its operational strategies, including a potential transformation into an operating company. The ongoing geopolitical and economic volatility in the oil and gas sector remains a significant risk factor for future performance.