Equus Total Return, Inc. Files 2023 Annual Report

TL;DR

EQUUS TOTAL RETURN, INC. FILED ITS 2023 10-K. COMMON STOCK TRADED ON NYSE UNDER EQS.

AI Summary

Equus Total Return, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The company, incorporated in Delaware, is registered with the SEC under file number 814-00098. Its principal executive offices are located at 700 Louisiana Street, 48th Floor, Houston, Texas. The company's common stock is traded on the New York Stock Exchange under the symbol EQS.

Why It Matters

This filing provides investors with a comprehensive overview of Equus Total Return, Inc.'s financial performance and business operations for the fiscal year 2023, enabling informed investment decisions.

Risk Assessment

Risk Level: low — This is a standard annual financial filing and does not inherently present new risks.

Key Numbers

• 2023 — Fiscal Year End (The report covers the financial performance up to December 31, 2023.)
• 814-00098 — SEC File Number (Identifies the specific filing with the SEC.)

Key Players & Entities

• Equus Total Return, Inc. (company) — Registrant
• December 31, 2023 (date) — Fiscal year end
• 814-00098 (other) — SEC File Number
• 700 Louisiana Street, 48th Floor, Houston, Texas (location) — Principal executive offices
• EQS (stock_symbol) — Common Stock Trading Symbol
• New York Stock Exchange (company) — Exchange for Common Stock

FAQ

Key Financial Figures

• $9,518,843 — ld by non-affiliates of the registrant: $9,518,843 computed on the basis of $1.52 per shar
• $1.52 — nt: $9,518,843 computed on the basis of $1.52 per share, the closing price of the reg
• $3.55 — Registrant as of December 31, 2023 was $3.55. Indicate by check mark whether the re
• $5.0 million — s with a total enterprise value between $5.0 million and $75.0 million, although we may enga
• $75.0 m — terprise value between $5.0 million and $75.0 million, although we may engage in transa
• $130.00 — il prices reaching a multi-year high of $130.00 per barrel in March 2022, and gas price
• $70.64 — rter of 2023, oil prices increased from $70.64 to $90.79, and thereafter decreased to
• $90 — 23, oil prices increased from $70.64 to $90.79, and thereafter decreased to $71.65
• $71.65 b — to $90.79, and thereafter decreased to $71.65 by the end of the fourth quarter of 2023.
• $2.48 — rter of 2023, gas prices increased from $2.48 to $2.68 before decreasing to $2.58 by
• $2.68 b — 023, gas prices increased from $2.48 to $2.68 before decreasing to $2.58 by the end of
• $2.58 b — rom $2.48 to $2.68 before decreasing to $2.58 by the end of the fourth quarter of 2023.
• $4 million — r (C) has total assets of not more than $4 million and capital and surplus of at least $2
• $2 m — ion and capital and surplus of at least $2 million, or (ii) does

Filing Documents

• f10k_equus12312023.htm (10-K) — 864KB
• ex231_consentofbdo.htm (EX-23.1) — 2KB
• ex311_302ceocertification.htm (EX-31.1) — 10KB
• ex312_302cfocertification.htm (EX-31.2) — 9KB
• ex321_906ceocertification.htm (EX-32.1) — 3KB
• ex322_906cfocertification.htm (EX-32.2) — 3KB
• ex971_equuscomp.htm (EX-97.1) — 17KB
• ex991_eqsenergyfinancials.htm (EX-99.1) — 196KB
• ex992_morganepfinancials.htm (EX-99.2) — 157KB
• image_002.gif (GRAPHIC) — 16KB
• 0001712543-24-000005.txt ( ) — 1285KB

Business

Business 4 Item 1A

Risk Factors

Risk Factors 12 Item 1B Unresolved Staff Comments 24 Item 1C Cybersecurity 24 Item 2

Properties

Properties 25 Item 3

Legal Proceedings

Legal Proceedings 25 Item 4 Mine Safety Disclosures 25 PART II Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6 [Reserved] 27 Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A Quantitative and Qualitative Information About Market Risk 37 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 38 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 68 Item 9A

Controls and Procedures

Controls and Procedures 69 Item 9B Other Information 70 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 71 PART III Item 10 Directors, Executive Officers and Corporate Governance 71 Item 11

Executive Compensation

Executive Compensation 71 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71 Item 13 Certain Relationships and Related Transactions, and Director Independence 71 Item 14 Principal Accountant Fees and Services 71 PART IV Item 15 Exhibits and Financial Statement Schedules 71 Item 16 Form 10-K Summary 71 3 Table of Contents PART I

Business

Item 1. Business Equus Total Return, Inc. (“we,” “us,” “our,” “Equus” the “Company” or the “Fund”), a Delaware corporation, was formed by Equus Investments II, L.P. (the “Partnership”) on August 16, 1991. On July 1, 1992, the Partnership was reorganized and all of the assets and liabilities of the Partnership were transferred to the Fund in exchange for shares of common stock of the Fund. On August 11, 2006, our shareholders approved the change of the Fund’s investment strategy to a total return investment objective. This strategy seeks to provide the highest total return, consisting of capital appreciation and current income. In connection with this strategic investment change, the shareholders also approved the change of name from Equus II Incorporated to Equus Total Return, Inc. We attempt to maximize the return to stockholders in the form of current investment income and long-term capital gains by investing in the debt and equity securities of companies with a total enterprise value between $5.0 million and $75.0 million, although we may engage in transactions with smaller or larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through acquisition or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations. Our income-producing investments consist principally of debt securities, including bonds, subordinated debt, debt convertible into common or preferred stock, or debt combined with warrants and common and preferred stock. Debt and preferred equity financing may also be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with a financing. We seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued by privately-owned companies or smaller public comp

Properties

Properties Our principal executive offices are located at 700 Louisiana St., 48 th Floor, Houston, Texas 77002. Should we remain a BDC and not transform into an operating company or a permanent capital vehicle, we believe our office facilities are suitable and adequate for our operations as currently conducted and contemplated. Business Development Company Requirements Qualifying Assets . As a BDC, we may not acquire any asset other than qualifying assets, as defined by the 1940 Act, unless, at the time the acquisition is made, the value of our qualifying assets represents at least 70% of the value of our total assets. The principal categories of qualifying assets relevant to our business are the following: Securities purchased in transactions not involving any public offering from an issuer that is an eligible portfolio company. An eligible portfolio company is any issuer that (a) is organized and has its principal place of business in the United States, (b) is not an investment company other than a small business investment company wholly-owned by the BDC, and (c) either (i) (A) does not have any class of securities with respect to which a broker or dealer may extend margin credit, (B) is controlled by the BDC either singly or as part of a group and an affiliated person of the BDC is a member of the issuer’s board of directors, or (C) has total assets of not more than $4 million and capital and surplus of at least $2 million, or (ii) does

View Full Filing

View this 10-K filing on SEC EDGAR