Villers-lès-Nancy, 26 September 2025 - 6:00 PM (CET) PRESS RELEASE 2025 half-year results Revenue: €116.0m (+7.4% reported and +6.4% like-for-like)Recurring EBITDA: €29.8m (+5.5%)Current Operating Profit €21.1m (+1.2%) Net Profit: €18.1m (+0.3%)Net Financial Surplus : €98.8m (+€19.2m / 31-12-2024) H1 2025 RESULTS(M€)2024Reported basis2025Reported basisChange / Reported basisRevenue108.0116.08.07.4%Recurring EBITDA28.229.8<td style="width:98.27px;;text-align: center ; vertical-align: middle; vertica ...

[Cover Page and General Information](index=1&type=section&id=Cover%20Page%20and%20General%20Information) This section provides general information about the company, including its filing type, stock exchange listing, and key corporate details - The document is a Quarterly Report on Form 10-Q for the period ended June 30, 2025, filed by EQUUS TOTAL RETURN, INC[1](index=1&type=chunk)[2](index=2&type=chunk) - Equus Total Return, Inc. is a Delaware corporation, listed on the New York Stock Exchange under the symbol 'EQS', and is classified as a non-accelerated filer[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) Common Stock Details | Metric | Value | | :--------------------- | :-------------- | | Common Stock Outstanding | 13,586,173 shares | | Par Value | $.001 | [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed financial statements and related disclosures for the reporting period [Item 1. Unaudited Condensed Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Financial%20Statements) This section presents the unaudited condensed financial statements, including balance sheets, statements of operations, changes in net assets, cash flows, selected per share data, schedules of investments, and detailed notes explaining the company's business, accounting policies, liquidity, and specific investment activities [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and net assets at specific dates Condensed Balance Sheet Highlights (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total assets | $37,066 | $29,936 | | Total liabilities | $2,955 | $426 | | Total net assets | $34,111 | $29,510 | | Net asset value per share | $2.51 | $2.17 | - Total assets increased by **$7,130 thousand (23.8%)** from December 31, 2024, to June 30, 2025, primarily driven by an increase in investments in portfolio securities and accounts receivable from affiliates[9](index=9&type=chunk) - Total liabilities saw a significant increase of **$2,529 thousand (593.7%)** due to the introduction of notes payable and higher accounts payable to related parties[9](index=9&type=chunk) [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) This section details the company's financial performance over specific periods, including revenues, expenses, and net income or loss Condensed Statements of Operations Highlights (in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------------------- | :--------------------------- | :--------------------------- | | Total investment income | $695 | $614 | | Total expenses | $2,415 | $2,584 | | Net investment loss | $(1,720) | $(1,970) | | Net realized (loss) gain | $(4,266) | $75 | | Net change in net unrealized appreciation of portfolio securities | $9,843 | $3,400 | | Net increase (decrease) in net assets from operations | $3,857 | $1,505 | | Basic EPS | $0.28 | $0.11 | - Net increase in net assets resulting from operations significantly improved to **$3,857 thousand** for the six months ended June 30, 2025, compared to **$1,505 thousand** in the prior year, primarily driven by a substantial increase in net unrealized appreciation of portfolio securities[12](index=12&type=chunk) - Net realized loss increased to **$(4,266) thousand** in 2025 from a gain of **$75 thousand** in 2024, indicating dispositions at a loss[12](index=12&type=chunk) [Condensed Statements of Changes in Net Assets](index=5&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Net%20Assets) This section outlines the changes in the company's net assets over a period, reflecting operational results and other transactions Condensed Statements of Changes in Net Assets Highlights (in thousands) | Metric (in thousands) | January 1, 2025 | June 30, 2025 | | :-------------------------------------------------- | :-------------- | :------------ | | Total Net Assets | $29,510 | $34,111 | | Issuance of warrants | — | $744 | | Net increase in net assets resulting from operations | — | $3,943 | | Net decrease in net assets resulting from operations | — | $(86) | - Total net assets increased by **$4,601 thousand** from January 1, 2025, to June 30, 2025, primarily due to a net increase from operations and the issuance of warrants[14](index=14&type=chunk) [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Statements of Cash Flows Highlights (in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | $(2,193) | $(13,555) | | Net cash provided by financing activities | $2,000 | $8,989 | | Net decrease in cash and cash equivalents | $(193) | $(4,566) | | Cash and cash equivalents at end of period | $69 | $2,417 | - Net cash used in operating activities significantly decreased from **$(13,555) thousand** in 2024 to **$(2,193) thousand** in 2025, indicating improved operational cash management or reduced investment outflows[17](index=17&type=chunk) - Financing activities provided **$2,000 thousand** in 2025, primarily from the issuance of notes payable and warrants, a decrease from **$8,989 thousand** in 2024 which included significant borrowings under a margin account[17](index=17&type=chunk) [Supplemental Information—Selected Per Share Data and Ratios](index=7&type=section&id=Supplemental%20Information%E2%80%94Selected%20Per%20Share%20Data%20and%20Ratios) This section provides key per share data and financial ratios, offering insights into the company's performance and valuation metrics Selected Per Share Data and Ratios | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------------- | :--------------------------- | :--------------------------- | | Net assets at end of period, basic and diluted | $2.51 | $3.66 | | Market price per share: End of period | $1.36 | $1.32 | | Ratio of expenses to average net assets | (7.59%) | (5.27%) | | Ratio of net investment loss to average net assets | (5.41%) | (4.02%) | | Ratio of net increase in net assets resulting from operations to average net assets | 12.12% | 3.07% | | Return on net asset value | 15.59% | 3.12% | | Total return on market price | 23.64% | (8.97%) | - Return on net asset value significantly increased to **15.59%** in 2025 from **3.12%** in 2024, and total return on market price turned positive at **23.64%** from **(8.97%)** in the prior year[18](index=18&type=chunk) - The ratio of expenses to average net assets increased to **(7.59%)** in 2025 from **(5.27%)** in 2024, indicating higher relative expenses[18](index=18&type=chunk) [Schedules of Investments](index=8&type=section&id=Schedules%20of%20Investments) This section details the company's investment portfolio, categorizing holdings by type and industry, and their fair values Investment Portfolio by Category (in thousands) | Investment Category | June 30, 2025 (Fair Value, in thousands) | December 31, 2024 (Fair Value, in thousands) | | :---------------------------- | :--------------------------------------- | :------------------------------------------- | | Total Investments | $33,482 | $27,500 | | Control Investments | $22,850 (68.3%) | $27,500 (100%) | | Non-Affiliate Investments | $10,632 (31.7%) | $0 | Investment Portfolio by Industry (June 30, 2025, in thousands) | Industry (June 30, 2025) | Fair Value (in thousands) | Percentage of Net Assets | | :----------------------- | :------------------------ | :----------------------- | | Energy | $22,850 | 67.0% | | Environmental | $10,632 | 31.2% | | Total | $33,482 | 98.2% | - The portfolio diversified in 2025 with the introduction of non-affiliate investments, while control investments decreased in fair value and as a percentage of total investments[22](index=22&type=chunk)[33](index=33&type=chunk) [Notes to Condensed Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed financial statements [(1) Description of Business and Basis of Presentation](index=12&type=section&id=(1)%20Description%20of%20Business%20and%20Basis%20of%20Presentation) Equus Total Return, Inc. operates as a Business Development Company (BDC) with a total return investment objective, focusing on debt and equity securities of small to medium-sized companies. The company elected to cease qualifying as a Regulated Investment Company (RIC) in Q4 2024, making it subject to corporate income taxes - Equus aims to maximize stockholder return through current investment income and long-term capital gains by investing in debt and equity securities of companies with enterprise values between **$5.0 million** and **$75.0 million**[45](index=45&type=chunk) - The company elected to not qualify as a Regulated Investment Company (RIC) in Q4 2024, which means it will be subject to normal corporate income taxes and will not be permitted to deduct distributions paid to stockholders[46](index=46&type=chunk) - The company uses wholly-owned taxable subsidiaries to hold certain income-producing investments or LLCs to satisfy the RIC tax requirement (when applicable) that **90%** of gross revenue must be investment income[47](index=47&type=chunk) [(2) Liquidity and Financing Arrangements; Going Concern](index=13&type=section&id=(2)%20Liquidity%20and%20Financing%20Arrangements%3B%20Going%20Concern) The company faces substantial doubt about its ability to continue as a going concern due to critically low cash reserves and a lack of committed financing to fund operations for the next twelve months. It is evaluating market conditions and potential asset dispositions to address liquidity challenges - As of June 30, 2025, cash and cash equivalents totaled **$0.07 million**, down from **$0.3 million** as of December 31, 2024[52](index=52&type=chunk)[53](index=53&type=chunk)[59](index=59&type=chunk) - Substantial doubt exists about the company's ability to continue as a going concern due to insufficient cash on hand and lack of projected future cash flows to fund operating activities for at least twelve months[59](index=59&type=chunk) - The company's shareholders approved a reduction in the asset coverage ratio to **150%** in November 2019, allowing it to borrow up to twice its net assets, though additional borrowings beyond a convertible note in February 2025 have not been undertaken[55](index=55&type=chunk) [(3) Significant Accounting Policies](index=14&type=section&id=(3)%20Significant%20Accounting%20Policies) This note details the company's significant accounting policies, including the use of estimates, non-consolidation of portfolio investments, and a multi-step process for valuing investments, particularly those without readily available market quotations (Level 3). It also covers fair value measurement hierarchy, investment transactions, income recognition, and recent accounting standard adoptions - The company does not consolidate portfolio company investments, including those with controlling interests, in accordance with Article 6 of Regulation S-X and ASC 946[49](index=49&type=chunk)[62](index=62&type=chunk) - Investments without readily available market quotations are valued using a multi-step process involving yield analysis, enterprise value (EV) analysis, net asset value analysis, liquidation analysis, and discounted cash flow analysis, with independent valuation firms assisting for larger, older investments[64](index=64&type=chunk)[65](index=65&type=chunk)[68](index=68&type=chunk) Fair Value Measurement Category (in thousands) | Fair Value Measurement Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------ | :--------------------------- | :------------------------------- | | Total Investments | $33,482 | $27,500 | | Level 3 Investments | $26,169 | $27,500 | - The company adopted ASU 2023-07 (Segment Reporting) on January 1, 2024, and ASU 2023-09 (Income Taxes) on January 1, 2025, with the latter affecting only financial statement disclosures not required until year-end 2025[104](index=104&type=chunk)[105](index=105&type=chunk) [(4) Related Party Transactions and Agreements](index=24&type=section&id=(4)%20Related%20Party%20Transactions%20and%20Agreements) Independent Directors receive annual fees, meeting fees, and additional annual fees for committee chairs. Directors are also compensated at an hourly rate for services provided outside their direct board duties - Independent Directors receive an annual fee of **$40,000**, **$2,000** for in-person meetings, and **$1,000** for telephonic meetings. Committee chairs receive an additional **$50,000** annual fee[106](index=106&type=chunk) - Directors are compensated at a rate of **$300 per hour** for services provided to the Fund not in connection with their roles as directors[107](index=107&type=chunk) [(5) Issuance of Equus Securities](index=24&type=section&id=(5)%20Issuance%20of%20Equus%20Securities) In February 2025, the Fund issued a $2.0 million senior convertible promissory note (Equus Note) with a 10.0% interest rate, convertible into common stock at $1.50 per share, collateralized by holdings in General Enterprise Ventures, Inc. Concurrently, 1,999,999 common stock purchase warrants were issued at an exercise price of $1.50 per share - On February 7, 2025, the Fund issued a one-year senior convertible promissory note for **$2.0 million cash**, bearing **10.0% interest**, convertible into common stock at **$1.50 per share**[108](index=108&type=chunk) - The Equus Note is collateralized by the Fund's holdings in General Enterprise Ventures, Inc[112](index=112&type=chunk) - Concurrently, the Fund issued two common stock purchase warrants to acquire **1,999,999 shares** at an exercise price of **$1.50 per share**, expiring February 3, 2030[114](index=114&type=chunk)[116](index=116&type=chunk) [(6) Portfolio Securities](index=26&type=section&id=(6)%20Portfolio%20Securities) During the first half of 2025, the company made a new investment in General Enterprise Ventures, Inc. (GEVI) through a convertible note and warrants, and divested its interest in Equus Energy by selling it to North American Energy Opportunities Corp. (NAEOC) - On February 10, 2025, the Fund purchased a **$1.5 million** 1-year senior convertible promissory note from General Enterprise Ventures, Inc. (GEVI) at **10% interest**, convertible at **$0.40 per share**, and received warrants for **1,875,000 GEVI common shares** at **$0.50 per share**[117](index=117&type=chunk) - On March 3, 2025, the Fund sold Equus Energy to North American Energy Opportunities Corp. (NAEOC) for **$1.25 million cash** and **27,500 shares of preferred stock**, redeemable within 6 months upon certain conditions[118](index=118&type=chunk) [(7) Conversion to an Operating Company](index=26&type=section&id=(7)%20Conversion%20to%20an%20Operating%20Company) The company is actively pursuing a transformation into an operating company and may seek shareholder authorization to withdraw its BDC election, though no definitive agreement or withdrawal is expected before December 31, 2025. This strategic shift is supported by an increase in authorized shares - The Fund intends to transform into an operating company and may seek shareholder authorization to withdraw its BDC election, but will not submit withdrawal until a definitive agreement for a transformative transaction is reached[119](index=119&type=chunk) - Shareholders approved an increase in authorized common stock to **100,000,000 shares** and preferred stock to **10,000,000 shares** to facilitate the transformation and evaluate larger acquisition/merger candidates[120](index=120&type=chunk) [(8) 2016 Equity Incentive Plan](index=26&type=section&id=(8)%202016%20Equity%20Incentive%20Plan) The 2016 Equity Incentive Plan, approved by shareholders, allows for awards of restricted stock and common stock purchase options to encourage equity ownership and retain key personnel. All previously granted awards under the plan were fully vested as of June 30, 2020 - The 2016 Equity Incentive Plan aims to promote the interests of the Fund by encouraging officers, employees, and directors to acquire or increase their equity interest[121](index=121&type=chunk) - The plan permits awards of restricted stock and common stock purchase options, with a maximum of **2,434,728 shares** subject to awards[121](index=121&type=chunk) - All awards granted under the Incentive Plan as of March 17, 2017, were fully vested by June 30, 2020[121](index=121&type=chunk) [(9) Morgan E&P, LLC](index=27&type=section&id=(9)%20Morgan%20E%26P%2C%20LLC) Morgan E&P, LLC, a wholly-owned energy subsidiary, continues to expand its acreage in the Williston Basin but faces a going concern issue due to insufficient cash resources and is actively seeking external financing. The Fund does not consolidate Morgan's financials but values its investment based on reserve reports and comparable transactions - Morgan E&P, LLC, a wholly-owned subsidiary, acquired additional acreage in the Bakken/Three Forks formation of the Williston Basin in North Dakota in 2023 and 2024[122](index=122&type=chunk) - Morgan faces substantial doubt about its ability to continue as a going concern due to insufficient cash resources to fund present operations and is seeking external financing[126](index=126&type=chunk) Morgan E&P, LLC Financials (in thousands) | Morgan E&P, LLC Financials (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Total assets | $9,386 | $9,353 | | Total liabilities | $24,058 | $22,916 | | Member's deficit | $(14,672) | $(13,563) | Morgan E&P, LLC Statement of Operations (in thousands) | Morgan E&P, LLC Statement of Operations (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------------------------- | :--------------------------- | :--------------------------- | | Oil and gas revenue | $205 | $2,466 | | Total operating costs and expenses | $680 | $3,945 | | Net loss | $(1,109) | $(2,080) | [(10) Subsequent Events](index=32&type=section&id=(10)%20Subsequent%20Events) Subsequent to the reporting period, the Board of Directors approved the issuance of additional restricted shares under the 2016 Equity Incentive Plan, and Morgan E&P, LLC secured a $3 million loan facility for drilling operations - On July 1, 2025, the Fund's Board of Directors approved the issuance of **419,523 restricted shares** of common stock under the 2016 Equity Incentive Plan[147](index=147&type=chunk) - On August 14, 2025, Morgan E&P, LLC secured a **$3 million loan facility** to fund near-term drilling and work-over operations in the Bakken Shale formation[146](index=146&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, liquidity, and capital resources, discussing key drivers of investment income and expenses, changes in portfolio valuations, and the impact of broader economic and geopolitical events, particularly in the oil and gas sector. It also reiterates the company's strategic shift towards becoming an operating company - The company's investment strategy focuses on maximizing total return through capital appreciation and current income by investing in debt and equity of companies with enterprise values between **$5.0 million** and **$75.0 million**[153](index=153&type=chunk) - The company elected to not qualify as a Regulated Investment Company (RIC) in Q4 2024, making it subject to corporate income taxes and unable to deduct distributions to stockholders[154](index=154&type=chunk) - Management is evaluating opportunities to transform Equus into an operating company and may seek shareholder authorization to withdraw its BDC election, though no definitive agreement or withdrawal is expected before December 31, 2025[156](index=156&type=chunk) Key Financial Performance Indicators (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net investment loss | $(610) | $(880) | $(1,720) | $(1,970) | | Total investment income | $357 | $331 | $695 | $614 | | Compensation expense | $433 | $477 | $1,003 | $905 | | Professional fees | $229 | $367 | $582 | $934 | | Transaction costs | $0 | $0 | $307 | $0 | | Net change in unrealized appreciation/depreciation of portfolio securities | $524 | $4,750 | $9,843 | $3,400 | - Net asset value increased by **15.7%** to **$2.51 per share** as of June 30, 2025, and the common stock traded at a **45.8% discount to NAV**, an improvement from **49.3%** at December 31, 2024[170](index=170&type=chunk) - Crude prices stabilized at **$65.11** and natural gas prices increased to **$3.26 per MMBTU** as of June 30, 2025, contributing to consolidation in the Williston Basin where Morgan E&P, LLC operates[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section outlines the company's exposure to financial market risks, including interest rate fluctuations for debt securities and outstanding debt, and changes in marketable equity security prices. It notes that the company does not use derivative financial instruments to mitigate these risks and that a significant portion of its portfolio consists of private company investments, whose valuations are less directly impacted by public market fluctuations but are sensitive to significant market changes - The company is subject to financial market risks from changes in interest rates (debt securities and outstanding debt) and marketable equity security prices[190](index=190&type=chunk) - The company does not use derivative financial instruments to mitigate market risks[190](index=190&type=chunk) - A major portion of the investment portfolio consists of debt and equity investments in private companies, whose estimated fair values are generally not significantly impacted by modest changes in public market equity prices but can be affected by significant market shifts[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting related to the valuation of portfolio investments. The company is actively implementing remediation efforts to enhance these controls - Management concluded that the Fund's disclosure controls and procedures were not effective as of June 30, 2025[194](index=194&type=chunk) - A material weakness exists in internal control over financial reporting, specifically relating to the design and operation of management review over the valuation of the Fund's portfolio investments, including the completeness and accuracy of underlying data[196](index=196&type=chunk) - Remediation efforts include enhancing existing controls for data completeness and accuracy supplied to third parties for valuation, and improving policies and procedures for review precision and evidence[199](index=199&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, exhibits, and the official signature for the report [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The Fund is occasionally involved in legal proceedings as part of its normal business operations, but management does not anticipate these proceedings will have a material adverse effect on the Fund's financial condition or results of operations - The Fund is a party to certain legal proceedings incidental to the normal course of its business, including enforcing contractual rights with portfolio companies[201](index=201&type=chunk) - Management does not expect these legal proceedings to have a material effect on the Fund's financial condition or results of operations[201](index=201&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section highlights risks associated with the company's planned conversion to an operating company, including those related to the transformation process, potential transactions, and the commercial enterprise it may combine with. Readers are directed to the annual report on Form 10-K for a comprehensive discussion of risks - Efforts to convert Equus into an operating company may subject the Fund to risks associated with the transformation process, potential transactions, and the commercial enterprise it may combine with[202](index=202&type=chunk) - Readers should carefully consider risks detailed in the annual report on Form 10-K for the year ended December 31, 2024, including those related to the operating company transformation and the impact of the coronavirus pandemic on the Fund and its energy investments[203](index=203&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including articles of incorporation, bylaws, material contracts (like the 2016 Equity Incentive Plan), and certifications by the Chief Executive Officer and Chief Financial Officer - Exhibits include Articles of Incorporation, Bylaws, Material Contracts (e.g., Safekeeping Agreement, Indemnification Agreement, Code of Ethics, 2016 Equity Incentive Plan), Rule 13a-14(a)/15d-14(a) Certifications, Rule 1350 Certifications, and Policy Relating to Recovery of Erroneously Awarded Compensation[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [SIGNATURE](index=43&type=section&id=SIGNATURE) This section contains the official signature of the registrant, Equus Total Return, Inc., by its Chief Executive Officer, John A. Hardy, certifying the filing of the report on August 15, 2025 - The report is signed by John A. Hardy, Chief Executive Officer of Equus Total Return, Inc., on August 15, 2025[210](index=210&type=chunk)[211](index=211&type=chunk)

Core Viewpoint - Equus Total Return, Inc. has successfully closed a $3 million term loan facility through its subsidiary Morgan E&P, LLC to fund drilling and work-over operations in the Bakken Shale formation, aiming to enhance production and cash flow in the second half of 2025 [1][2][3] Group 1: Financial and Operational Developments - The $3 million loan will be utilized for near-term drilling and work-over operations on two existing non-producing wells in the Bakken Shale [1] - The funding is expected to accelerate development opportunities, focusing on new well completions and optimizing existing assets, which will increase production volumes and enhance cash flow starting in the latter half of 2025 [2] Group 2: Strategic Importance - The Bakken Shale is recognized for its high-quality crude oil production and long-lived reserves, and Morgan E&P's activities are anticipated to strengthen its presence in this prolific oil-producing basin [3] - The operational advancements are part of Equus' broader energy portfolio strategy, aimed at creating immediate value for shareholders [3]

Core Insights - Equasens Group reported H1 2025 revenue of €116.0 million, reflecting a 7.4% increase on a reported basis and a 6.4% increase like-for-like compared to H1 2024 [3][4][12] Revenue Breakdown - Revenue from the Pharmagest Division was €85.9 million, up 4.7%, accounting for 74.1% of total revenue [9][10] - The Axigate Link Division reported revenue of €16.5 million, an increase of 6.7%, representing 14.2% of total revenue [10][11] - The e-Connect Division saw significant growth, with revenue of €7.5 million, up 36.6%, contributing 6.5% to total revenue [11] - The Medical Solutions Division generated €5.1 million in revenue, a 29.1% increase, with a 2.2% like-for-like growth [12] - The Fintech Division experienced a decline, with revenue of €1.0 million, down 7.6%, accounting for 0.9% of total revenue [15] Revenue by Activity Type - Configurations and hardware sales increased by 9.9% to €47.1 million, driven by strong performance in Pharmagest and e-Connect [7][8] - Maintenance and subscriptions grew by 5.5% to €51.4 million, benefiting from customer loyalty and SaaS offerings [8] - Software and services revenue rose by 6.4% to €17.4 million, supported by license sales and new deployments [8] Geographic Performance - In France, total business activities grew by 3.4% to €74.0 million, with notable growth in electronic labels and pharmacy automation solutions [13] - Italy saw a 16.5% increase in sales to €7.7 million, attributed to the opening of new pharmacies [13] - Germany's sales rose by 11.2% to €3.0 million, driven by medication adherence solutions [13] - Belgium confirmed a return to growth with a 6.4% increase to €1.2 million [13] Strategic Developments - The acquisition of CALIMED SAS contributed €1.1 million to the Medical Solutions Division's revenue [5] - On July 1, 2025, Equasens Group acquired Novaprove and DIS, enhancing the Axigate Link Division's offerings and adding over 300 public healthcare customers [16][17] - The integration of these acquisitions is expected to create synergies and strengthen the Group's position in the healthcare software market [21] Future Outlook - The Group anticipates continued growth in H2 2025, supported by positive commercial momentum across all divisions [18] - Investment efforts since 2024 are yielding results, with successful new software solutions being rolled out [20]

Core Points - Equasens Group announces the departure of Damien Valicon as Deputy Chief Executive Officer and Director of the Pharmagest Division, with François-Pierre Marquier appointed as his successor [2][3] - François-Pierre Marquier has been with Pharmagest since May 2021 and has held various leadership roles, including overseeing the Pharmacy France business since January 2023 [4] - The transition period for François-Pierre Marquier's appointment will be effective after approval from the Board of Directors [3] Company Overview - Equasens Group, founded over 35 years ago, is a leader in digital healthcare solutions, employing over 1,400 people across Europe [6] - The company specializes in business applications that support healthcare professionals in their daily operations, including electronic equipment, digital solutions, and healthcare robotics [7] - Equasens Group aims to improve coordination among healthcare professionals through interoperability solutions, enhancing patient care and system efficiency [8] Strategic Direction - The company follows a two-pronged development strategy that combines organic growth with targeted acquisitions at a European level [9] - Upcoming financial communications include Q2 2025 revenue on July 31, 2025, and H1 2025 results on September 26, 2025 [11]

Core Points - The Ordinary Annual General Meeting of Equasens Group was held on June 25, 2025, with a quorum of 88.83% of shares with voting rights present [1] - The meeting approved the separate parent company and consolidated financial statements for the 2024 financial year [1] Voting Results Summary - **Resolution One**: Approval of the annual financial statements received 13,170,684 votes in favor, with no votes against and 2,441 abstentions [1] - **Resolution Two**: Discharge of directors and Statutory Auditors received 12,831,312 votes in favor, 339,266 votes against, and 2,547 abstentions [1] - **Resolution Three**: Approval of the consolidated financial statements received 13,170,684 votes in favor, with no votes against and 2,441 abstentions [1] - **Resolution Four**: Appropriation of earnings and setting the dividend received 13,138,631 votes in favor, 34,494 votes against [1] - **Resolution Five**: Agreements and commitments under Articles L. 225-38 received 13,101,211 votes in favor, 59,549 votes against, and 12,365 abstentions [2] - **Resolution Six**: Approval of compensation information for corporate officers received 12,507,815 votes in favor, 665,242 votes against, and 68 abstentions [2] - **Resolution Seven**: Approval of compensation for Mr. Thierry Chapusot received 13,115,547 votes in favor, 57,510 votes against, and 68 abstentions [2] - **Resolution Eight**: Approval of compensation for Mr. Denis Supplisson received 10,782,118 votes in favor, 2,390,939 votes against, and 68 abstentions [2] - **Resolution Nine**: Approval of compensation for Mr. Grégoire de Rotalier received 10,782,118 votes in favor, 2,390,939 votes against, and 68 abstentions [2] - **Resolution Ten**: Approval of compensation for Mr. Damien Valicon received 10,762,253 votes in favor, 2,410,804 votes against, and 68 abstentions [2] - **Resolution Eleven**: Approval of the compensation policy for Mr. Thierry Chapusot for 2025 received 13,115,547 votes in favor, 57,510 votes against, and 68 abstentions [3] - **Resolution Twelve**: Approval of the compensation policy for Mr. Denis Supplisson for 2025 received 10,545,572 votes in favor, 2,454,875 votes against [3] - **Resolution Thirteen**: Approval of the compensation policy for Mr. Grégoire de Rotalier for 2025 received 10,537,207 votes in favor, 2,463,240 votes against, and 172,678 abstentions [3] - **Resolution Fourteen**: Approval of the compensation policy for Mr. Damien Valicon for 2025 received 10,537,207 votes in favor, 2,463,240 votes against, and 172,678 abstentions [3] - **Resolution Fifteen**: Approval of the compensation policy for Directors received 13,127,845 votes in favor, 45,212 votes against, and 68 abstentions [3] - **Resolution Sixteen**: Setting total annual compensation for Directors for 2025 received 13,127,845 votes in favor, 45,212 votes against, and 68 abstentions [3] - **Resolution Seventeen**: Authorization to repurchase own shares received 11,297,178 votes in favor, 1,875,947 votes against [3] - **Resolution Eighteen**: Powers for formalities received 13,173,125 votes in favor, with no votes against or abstentions [3] Company Overview - Equasens Group, a leader in digital healthcare solutions, employs over 1,300 people across Europe and has been in operation for over 35 years [4][5] - The company specializes in providing applications that support healthcare professionals, including electronic equipment, digital solutions, and healthcare robotics [5][6] - Equasens Group is listed on Euronext Paris and included in various indexes such as MSCI GLOBAL SMALL CAP and CAC SMALL [7]

Core Viewpoint - Equasens Group has completed the acquisition of two businesses specializing in software solutions for the public healthcare sector, enhancing its position in the hospital and medico-social software market [3][4][10] Acquisition Details - The acquisition was finalized on July 1, 2025, through the AXIGATE LINK Division, covering over 300 customers in the public healthcare sector and generating annual sales of approximately €5 million [3][5][7] - The acquired businesses include the ResUrgences software platform, which manages hospital emergency services, and the DIS range, which provides digital solutions for public healthcare establishments [8][10] Strategic Goals - This acquisition aligns with Equasens' strategy to develop software solutions for public health establishments, capitalizing on numerous renewal and equipment opportunities in the market [6][10] - The integration aims to create a comprehensive technology ecosystem to support the digital transformation of both public and private healthcare establishments [4][10] Product and Service Expansion - The AXIGATE LINK Division will enhance its HOSPILINK solution for hospitals and specialized facilities, optimizing resources and accelerating innovation through technical and commercial synergies [5][9][10] - The short-term objective includes integrating new functionalities from the acquisition into existing product ranges, while the medium-term goal focuses on improving interoperability across various healthcare services [12][13] Leadership Commentary - The CEO of Equasens emphasized the acquisition's role in expanding and diversifying the company's core business, aiming to meet the growing digital needs of healthcare establishments [14] - The Deputy CEO highlighted the acquisition's significance in strengthening the company's presence in the public health sector, enhancing market share, expertise, and product range [14] Integration Timeline - Operational integration of the teams and solutions is set to begin in Q3 2025, with a phased migration plan for customers to Equasens' new technology platforms [15]

Core Points - Equasens Group will hold its Annual Ordinary General Meeting on June 25, 2025, at 5:30 PM at its registered office in Villers-lès-Nancy [2] - The agenda and resolutions for the meeting were published in the French legal announcements on May 16, 2025 [3] - The Meeting Notice was published on June 6, 2025, detailing participation and voting procedures [4] Company Information - Equasens Group, founded over 35 years ago, is a leader in digital healthcare solutions, employing over 1,300 people across Europe [8] - The company provides specialized business applications that support healthcare professionals in various settings, including private practice and healthcare establishments [9] - Equasens Group focuses on interoperability solutions that enhance coordination among healthcare professionals, improving patient care and system efficiency [10] Meeting Logistics - The Annual General Meeting will be broadcast live online, with connection information available 48 hours prior to the meeting [7] - A replay of the meeting will also be accessible on the company's website for later viewing [7] - All relevant documents and voting forms are available on the company's website since June 4, 2025 [5]

Core Viewpoint - Equus Total Return, Inc. has been notified by the NYSE of non-compliance with listing standards due to its Common Stock trading below $1.00 for a consecutive 30-day period, but this notice does not affect its current listing or trading status [1][4]. Group 1: Compliance Notification - The NYSE notified Equus on May 15, 2025, regarding the non-compliance with Section 802.01C of the NYSE Listed Company Manual [1]. - The notice is classified as a deficiency notice and does not imply immediate delisting [1][4]. Group 2: Plans for Compliance - The Company plans to inform the NYSE by May 25, 2025, of its intention to remedy the stock price deficiency and return to compliance [2]. - Equus can regain compliance within six months if it achieves a closing share price of at least $1.00 on the last trading day of any calendar month during the cure period [2]. Group 3: Potential Actions for Compliance - The Company is considering various alternatives to address the stock price non-compliance, including a reverse stock split, which will be proposed at the upcoming annual meeting on June 26, 2025 [3]. - If the Company takes action requiring stockholder approval, the price condition will be deemed cured if the stock price exceeds $1.00 and remains above that level for at least 30 trading days [3]. Group 4: Ongoing Operations - Equus's Common Stock will continue to be listed and traded on the NYSE during the compliance period, provided it meets other listing standards [4]. - The notice is not expected to impact the Company's ongoing business operations or its reporting obligations with the U.S. Securities and Exchange Commission [4]. Group 5: Company Overview - Equus Total Return, Inc. operates as a business development company and trades as a closed-end fund on the NYSE under the symbol "EQS" [5].

Financial Performance - Equus Total Return, Inc. aims to provide the highest total return through capital appreciation and current income [146]. - Net asset value increased from $2.17 per share to $2.52 per share, an increase of 16.0% [165]. - The Fund recorded a net investment loss of $1.1 million for the three months ended March 31, 2025 [174]. - The Fund purchased a senior convertible promissory note from General Enterprise Ventures for $1.5 million, with an increase of $3.0 million in fair value recorded [177]. - The Fund sold Equus Energy for $1.25 million in cash and 27,500 shares of preferred stock [178]. - The Fund recorded a reversal of unrealized depreciation of $4.1 million for its investment in Equus Energy, LLC [179]. - The Fund's common stock is trading at a 59.9% discount to its net asset value as of March 31, 2025 [165]. Economic Indicators - U.S. GDP contracted at an annualized rate of 0.3% in Q1 2025, following a 2.4% increase in Q4 2024, indicating economic challenges [159]. - The unemployment rate remained steady at 4.2% in April 2025, with the Congressional Budget Office predicting a slight increase to 4.5% for the remainder of 2025 [160]. - As of March 2025, the consumer price index increased by 2.4% over the previous 12 months, down from 2.8% in February 2025 [161]. - The introduction of tariffs in Q1 2025 is expected to increase inflation rates throughout the remainder of 2025 and into 2026 [161]. Interest Rates and Monetary Policy - The Federal Reserve cut interest rates by 50 basis points on September 18, 2024, marking the first reduction in four years [162]. Company Strategy and Operations - Equus plans to transform into an operating company, pending shareholder authorization expected in 2025 [153]. - The company has reduced its asset coverage ratio from 200% to 150%, allowing it to borrow up to twice the value of its net assets [154]. - The company has not incurred additional borrowings beyond a margin loan for U.S. Treasury bills since the asset coverage ratio reduction [154]. - The Fund's management has internalized management to achieve efficiencies in its cost structure as it grows [166]. Market Activity - Global merger and acquisition activity in 2024 was approximately $2.2 trillion, a slight increase from $2.1 trillion in 2023 [163]. - Private equity activity decreased from $464 billion in Q4 2024 to $445 billion in Q1 2025, with the U.S. accounting for roughly half of these totals [164]. - Analysts expect overall annual private equity activity to increase by 1.0% in 2025 over 2024, still 13.0% below the 2018-2019 average [164]. Capital Expenditures - In 2024, Morgan E&P, LLC incurred $6.4 million in capital expenditures for oil and gas development, with additional expenditures expected in 2025 [158].