Acquisition Overview - Equasens Group acquires a 90% majority stake in Calimed SAS, a cloud-based medical Practice Management Software (PMS) provider, to strengthen its position in the French healthcare software market [15][1] - Calimed will become part of Equasens' Medical Solutions Division, which already serves over 25,000 users with a comprehensive range of software solutions for medical and paramedical professions [5][16] Strategic Goals - The acquisition aims to increase Equasens' market share in the French PMS market and expand its portfolio of online solutions to support the digital transition of medical practices [1] - Equasens plans to integrate Calimed's innovative modules, such as "Follow-Up" for pre-, per-, and post-operative monitoring, into its existing software range [6] - The company aims to establish easy-care as the market-leading software by leveraging synergies between Calimed and Equasens' existing solutions [21] Market Potential - The French private medical practice software market is fragmented, with significant potential for consolidation, and Equasens' Medical Solutions Division is currently the third-largest player [8] - There are 200,000 practitioners in France, including 115,000 in private practice, indicating considerable growth potential for Equasens' solutions [8] Product Innovations - Calimed's software features advanced pre-, per-, and post-operative questionnaire management and automatic data integration into Electronic Patient Records, offering time savings for surgeons [2] - Equasens plans to integrate innovative modules like the AI Loquii voice consultation assistant and PandaLab Pro inter-professional messaging system into the easy-care solution [6] - Starting in 2025, Calimed users will gain access to new digital services, such as digital prescriptions, through a gateway between Calimed and easy-care [9] Synergies and Growth - Calimed's business model is based on recurring SaaS subscription revenues, with nearly 4,000 active users and excellent customer retention rates [3] - Equasens will leverage its Private Health Cloud infrastructure, certified for hosting healthcare data, to enhance Calimed's offerings [7] - The acquisition will enable Equasens to accelerate the deployment of easy-care and recruit new clients more effectively, starting in 2025 [6] Industry Trends - The healthcare system is undergoing a digital transformation, with digital solutions emerging as a key lever for cost optimization, streamlined care pathways, and improved coordination between professionals [19] - New regulations are driving innovation and investment in open, secure, and interoperable healthcare solutions [19] Company Background - Equasens Group, founded over 35 years ago, employs over 1,300 people across Europe and is a leader in digital healthcare solutions [11] - The company's mission is to facilitate the day-to-day work of healthcare professionals through professional software, applications, and digital solutions [11]

Financial Summary - As of September 30, 2024, the net assets of Equus Total Return, Inc. were reported at $40.2 million, a decrease from $49.8 million as of June 30, 2024 [1] - The net asset value per share decreased to $2.96 from $3.66 during the same period [1] - The number of shares outstanding remained constant at 13,586 [1] Portfolio Performance - The fair value of the equity holding in Morgan E&P decreased by $7.0 million, from $26.0 million as of June 30, 2024, to $19.0 million as of September 30, 2024, primarily due to a 17.6% decrease in oil prices and a decline in production from its operating wells [1] - The fair value of the holding in Equus Energy decreased by $2.0 million, from $10.0 million to $8.0 million, also largely attributed to the decrease in oil prices during the quarter [2] Company Overview - Equus Total Return, Inc. operates as a business development company and is traded as a closed-end fund on the New York Stock Exchange under the symbol "EQS" [3]

Core Insights - Equus Total Return, Inc. reported net assets of $49.8 million as of June 30, 2024, with a net asset value per share increase to $3.66 from $3.38 as of March 31, 2024 [1] Financial Summary - Net assets as of June 30, 2024: $49,792,000, up from $45,892,000 as of March 31, 2024 [1] - Net asset value per share increased to $3.66 from $3.38 in the previous quarter [1] - Shares outstanding remained constant at 13,586 [1] - Historical net assets and net asset value per share for previous quarters: - 12/31/2023: Net assets $48,287,000, Net asset value per share $3.55 - 9/30/2023: Net assets $47,128,000, Net asset value per share $3.49 - 6/30/2023: Net assets $40,051,000, Net asset value per share $2.96 [1] Portfolio Performance - The increase in fair value of Morgan E&P contributed significantly to the portfolio's performance, with Morgan's equity valued at approximately $26.0 million as of June 30, 2024, an increase of $4.75 million from March 31, 2024 [1] - Morgan E&P, LLC was formed as a wholly-owned subsidiary, acquiring approximately 5,897 net acres in the Bakken/Three Forks formation in North Dakota, with an additional 810 net acres acquired in Q2 2024 [1]

Investment Strategy - Equus Total Return, Inc. aims to maximize returns through investments in companies with a total enterprise value between $5.0 million and $75.0 million [147]. - The company’s investment strategy includes debt securities, subordinate debt, and equity-oriented securities to achieve capital appreciation [147]. - The Fund's liquidity initiatives included internalizing management and modifying investment strategies to enhance shareholder value and protect capital [162]. Financial Performance - The net asset value per share increased from $3.55 to $3.66, a rise of 3.1%, while common stock traded at a 63.9% discount to net asset value as of June 30, 2024 [161]. - The Fund recorded a net investment loss of $0.9 million for the three months ended June 30, 2024, unchanged from the same period in 2023 [169]. - Compensation expenses increased to $0.5 million for Q2 2024 from $0.4 million in Q2 2023, while professional fees rose to $0.4 million from $0.1 million in the same period [169]. Economic Indicators - U.S. GDP increased at an annualized rate of 2.8% in Q2 2024, surpassing consensus estimates of 2.1% [156]. - The unemployment rate rose to 4.3% in July 2024, with predictions of reaching 4.7% before tapering off to 4.5% in 2025 [157]. - As of June 30, 2024, the consumer price index increased by 3.0% over the previous 12 months, down from 3.3% in May 2024 [158]. - The Federal Reserve raised the federal funds rate to 5.5% in July 2023, the highest in 22 years, with expectations for a potential decrease of at least 25 basis points in September 2024 due to rising unemployment and decreasing consumer prices [159]. Market Activity - Global merger and acquisition activity increased to $555 billion in Q1 2024 and $552 billion in Q2 2024, with 8,551 transactions, indicating a potential continuation of consolidations in healthcare, technology, and energy sectors [160]. - Private equity activity saw a 24% increase in aggregate deal value, rising from $250 billion in H1 2023 to $310 billion in H1 2024, with a focus on AI-driven enterprises and energy infrastructure [161]. Company Operations - In 2024, Morgan undertook $5.5 million in capital expenditures for oil and gas development, primarily for its initial two wells [155]. - Equus Energy plans to secure equity or debt financing, request operators to shut-in wells, or sell certain oil and gas holdings to conserve cash resources [154]. - The company is evaluating opportunities to transform into an operating company, with a potential shareholder authorization expected in 2024 or 2025 [149]. Risk Management - The Fund's investments are subject to financial market risks, including interest rate changes and foreign currency fluctuations, without the use of derivative instruments to mitigate these risks [173]. - Management identified a material weakness in internal control over financial reporting as of June 30, 2024, which could lead to potential misstatements in portfolio valuations [179]. Asset Management - 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 [150]. - A follow-on debt investment of $2.2 million was made in Morgan E&P, LLC, with a $3.4 million increase in the fair value of equity holdings due to reclassification of reserves and acquisition of additional acreage [170].

Core Viewpoint - Equus Total Return, Inc. reported a decrease in net assets and net asset value per share as of March 31, 2024, alongside operational developments in its subsidiary Morgan E&P, LLC [1] Financial Summary - As of March 31, 2024, net assets were $45.9 million, down from $48.3 million as of December 31, 2023 [1] - Net asset value per share decreased to $3.38 from $3.55 over the same period [1] - The number of shares outstanding remained constant at 13,586 [1] - Comparative net assets over the last four quarters show a steady increase from $34.1 million in March 2023 to $45.9 million in March 2024 [1] Operational Developments - Morgan E&P, LLC acquired 5,897.52 net leasehold acres in the Bakken/Three Forks formation and began production on two wells drilled in Q4 2023 [1] - Morgan's debt increased by $2.2 million during the first quarter of 2024 [1] - The fair value of Morgan decreased by $1.35 million to $21.25 million due to various qualitative and quantitative factors [1][2] Valuation Support - The Company utilized a third-party valuation firm to assist in determining the fair value of its investment in Morgan [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period to Commission File Number 814-00098 EQUUS TOTAL RETURN, INC. (Exact name of registrant as specified in its charter) Delaware 76-0345915 (State or other jurisdiction of incorp ...

HOUSTON, April 03, 2024 (GLOBE NEWSWIRE) -- Equus Total Return, Inc. (NYSE:EQS) ("Equus" or the "Company") reports net assets as of December 31, 2023, of $48.3 million. Net asset value per share increased to $3.55 as of December 31, 2023, from $3.49 as of September 30, 2023. Comparative data is summarized below (in thousands, except per share amounts): As of the Quarter Ended12/31/20239/30/20236/30/20233/31/202312/31/2022 Net assets$48,287$47,128$40,051$34,106$35,237Shares outstanding13,58613,51813,51813,51 ...

Investment Strategy and Goals - Equus Total Return, Inc. aims to maximize total return for shareholders through current investment income and long-term capital gains by investing in debt and equity securities of companies with total enterprise values between $5.0 million and $75.0 million [14]. - The investment strategy focuses on cash-producing investments, primarily in debt or preferred equity financing, to generate regular income [21]. - The company seeks to invest in companies with experienced management teams and significant management ownership to align interests and maximize shareholder value [24]. - Equus targets companies with a history of profitability or a reasonable expectation of returning to profitability in the near future [26]. - The company conducts thorough due diligence on potential investments, including financial reviews and management interviews [30]. Market Conditions and Economic Impact - In Q3 2023, oil prices increased from $70.64 to $90.79 per barrel, while gas prices rose from $2.48 to $2.68 before ending the quarter at $2.58 [17]. - The company faces risks related to economic conditions, including the ongoing impact of the coronavirus, which may negatively affect financial resources [61]. - An economic downturn could adversely affect small and medium-sized companies, which are the primary market for the company's investments [93]. - The operational results of portfolio investments in oil and gas are subject to commodity price fluctuations, which can significantly impact financial performance [71]. Financial Performance and Valuation - The company reported a net investment loss of $4.0 million for the year ended December 31, 2023 [90]. - The net increase in net assets resulting from operations for 2023 was $12.9 million, compared to a net decrease of $1.1 million in 2022 [222]. - The net asset value per share rose to $3.55 in 2023, up from $2.61 in 2022, reflecting a growth of 36.0% [219]. - The fair value of total investments as of December 31, 2023, was $85,808,000, with control investments representing 47.6% of total investments [234]. - The fair value of control investments increased from $15,650,000 at the beginning of 2023 to $40,853,000 by year-end, reflecting a change in unrealized appreciation of $16,950,000 and purchases of $8,253,000 [278]. Regulatory Compliance and Taxation - Equus intends to maintain its status as a Business Development Company (BDC) and a Regulated Investment Company (RIC) to avoid corporate-level income tax on investment income [15]. - The company must maintain at least 70% of its total assets in qualifying assets as defined by the 1940 Act to retain its BDC status [46]. - The company incurs a 4.0% nondeductible Federal excise tax if it does not distribute at least 98.2% of its net income consisting of capital gains within a year [55]. - The company must derive at least 90% of its gross income from specific sources to maintain its status as a RIC under the Code [101]. - Failure to maintain RIC status could result in income tax liabilities and a loss of tax benefits for stockholders [103]. Investment Risks and Challenges - The company competes with numerous public and private equity funds, facing significant competition from larger firms with greater resources [43]. - The lack of liquidity in privately held securities may hinder the company's ability to liquidate investments when needed [76]. - The company may not realize gains from equity investments, as market values may fall below estimated fair values before sales occur [69]. - The company may not be able to raise additional capital on favorable terms due to regulatory constraints and market conditions [107]. - The company has historically faced challenges in borrowing against a portfolio of illiquid, private securities, impacting its ability to secure financing [88]. Corporate Governance and Management - Management believes current market conditions necessitate a more active role in managing investments and seeking liquidity events to enhance shareholder value [19]. - The Board reviews valuation policies quarterly and may engage independent valuation firms for assessments of privately-held investments [42]. - The Audit Committee reviews preliminary valuations and recommends fair values to the Board for final approval, ensuring a thorough oversight process [4]. Cash Flow and Capital Management - The company had a net cash provided by financing activities of $39,058,000 in 2023, compared to $3,498,000 in 2022 [227]. - The total cash and cash equivalents at the end of the period decreased to $6,983,000 from $19,284,000 in 2022, representing a decline of 63.7% [227]. - The company had $44.9 million in borrowing under margin accounts as of December 31, 2023, compared to $6.0 million in 2022 [219]. Sector Focus and Asset Allocation - As of December 31, 2023, the "Energy" segment accounted for 84.6% of the company's net asset value and 43.7% of total assets [203]. - The company’s investments in the energy sector accounted for 84.6% of total assets as of December 31, 2023 [240]. - The company invested 37.6% of its assets in qualifying investments under the Investment Company Act of 1940 as of December 31, 2022 [247]. Valuation Methodology - The fair value hierarchy categorizes investments into three levels, with Level 1 having the highest priority based on quoted prices in active markets, while Level 3 includes unobservable inputs requiring significant management judgment [268][270]. - The company employs a discounted cash flow method for Level 3 investments, considering factors such as market transactions, growth rates, and capitalization rates [272]. - The fair value of equity securities in portfolio companies may also be assessed using a market approach, applying valuation multiples from publicly-traded comparable firms [274].

HOUSTON, Feb. 14, 2024 (GLOBE NEWSWIRE) -- Equus Total Return, Inc. (NYSE:EQS) ("Equus") today announced that its wholly-owned subsidiary Morgan E&P, LLC ("Morgan"), has received from Cawley, Gillespie & Associates, Inc. ("CG&A") an updated reserve estimate as of January 1, 2024. Morgan continues to acquire mineral rights in the Bakken/Three Forks formation in the Williston Basin of North Dakota, and on December 18, 2023, announced an increase in its acreage in this area from 4,747.52 net acres to 5,976.84 ...

Completes Sale of Wellbore Working Interest For $5.6 MillionGross Oil Production Over 1,000 Barrels Per Day HOUSTON, Feb. 13, 2024 (GLOBE NEWSWIRE) --  Equus Total Return, Inc. (NYSE:EQS) ("Equus") today announced that Morgan E&P, LLC ("Morgan"), a wholly-owned subsidiary of Equus, has completed its first two wells in Billings County, North Dakota, the Baranko 1-28H and the Obrigewitch 1-33H. Morgan received its drilling permits from the North Dakota Industrial Commission ("NDIC") in September 2023 and succ ...