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Equus Total Return, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net asset value decrease from $3.55 per share to $2.96 per share. This represents a decline of 16.6%.
Equus reported a net investment loss of $0.7 million for the three months ended September 30, 2024, compared to $1.1 million for the same period in 2023. For the nine months ended September 30, 2024, the net investment loss was $2.7 million, down from $3.1 million in 2023.
Total investment income for the three months ended September 30, 2024, was $0.3 million, compared to $0.04 million in the same period in 2023. For the nine months ended September 30, 2024, total investment income was $0.9 million, up from $0.06 million in 2023.
The company recorded a decrease in the fair value of its equity holding in Morgan E&P, LLC by $3.6 million during the nine months ended September 30, 2024, primarily due to declines in oil prices and production.
Equus Energy, LLC's fair value decreased by $2.0 million during the nine months ended September 30, 2024, also due to declining oil prices.
The filing discusses the company's liquidity and financing arrangements, noting cash and cash equivalents of $1.1 million as of September 30, 2024, with $37.5 million of net assets invested in portfolio securities.
Equus Total Return, Inc. is evaluating opportunities to transform into an operating company. The company may seek shareholder authorization to withdraw its BDC election, contingent upon entering a definitive transformative transaction agreement.
The filing also highlights the company's ongoing efforts to enhance internal controls and address a material weakness in the valuation of its portfolio investments.
Equus does not anticipate paying cash dividends to common stockholders in the near future, maintaining its focus on preserving liquidity and enhancing shareholder value.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Equus Total Return Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.