EQUUS TOTAL RETURN, INC.
For the period ended Sep 30, 2025. Filed Nov 20, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 20, 2025
EQS$0.64+2.2%Stored close · as of Nov 4, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-15.
0001712543-25-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-20.
0000878932-25-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 53 previous paragraphs and 53 current paragraphs.
28 unchanged; 20 reworded; 5 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report
Mergers and Acquisitions. Global merger and acquisition activity in the quarter ended September 30, 2025 has rebounded significantly, with total transaction value up 234% as compared to the third quarter of 2024 and substantial increases in large deal volume in the third quarter of 2025 as compared to the third quarter of 2024. Merger and acquisition activity and transaction values in September 2025 were up 41% and 110%, respectively, as compared to September 2024 activity increasing 41% in September 2025 as compared to September 2025. Technology, energy, life sciences, and telecommunications represented the sectors which experienced the most significant increases in deal activity during the third quarter of 2025. Heading into 2026, expectations for increased consolidation remain high, driven largely by transactions in the technology sector, especially in AI, cloud infrastructure, and financial services. (Sources: Ernst & Young; Bloomberg).
Current report
Professional fees were $0.3 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively and $0.8 million and $1.2 million for the nine months ended September 2025 and 2024, respectively.
Current report
Change in Unrealized Depreciation on Warrant Liability
Current report
During the nine months ended September 30, 2025, with respect to the warrants issued, we recognized depreciation of the warrant liability of $1.1 million.
Removed paragraphs (5)
Previous report
Morgan undertook significant capital expenditures for oil and gas development during the third and fourth quarters of 2023. During 2024, Morgan undertook an additional $6.4 million in capital expenditures, principally consisting of accruals and additional costs related to the development of its initial two wells. The company is expected to incur additional capital expenditures related to drilling and completion of additional wells in the second half of 2025.
Previous report
Mergers and Acquisitions. Global merger and acquisition activity in 2024 totaled approximately $2.2 trillion, a modest increase from $2.1 trillion in 2023, though still significantly below the $4.1 trillion peak in 2021. Financial services, materials, industrials, and information technology remained the most active sectors throughout the year. Heading into 2025, expectations for increased consolidation were high, particularly before the shift in U.S. trade policy in the first quarter of 2025. That optimism was initially validated, with first quarter 2025 deal volume reaching $699 billion, the highest quarterly total since 2021, driven largely by transactions in the technology sector, especially in AI, cloud infrastructure, and financial services. In the second quarter of 2025, deal activity remained elevated, with an estimated $645 billion in volume, suggesting continued momentum. However, some analysts caution that this strength may reflect a backlog of deals initiated in late 2024, and uncertainty surrounding trade policy and interest rates has led to more conservative forecasts for the second half of the year. (Sources: Ernst & Young; Bloomberg).
Previous report
Professional fees were $0.2 million and $0.4 million for the three months ended June 30, 2025 and 2024, respectively and $0.6 million and $0.9 million for the six months ended June 2025 and 2024, respectively.
Previous report
General and administrative expenses were comparable and were $0.1 million for the three months ended June 30, 2025 and 2024 and $0.1 million for the six months ended June 30, 2025 and 2024.
Previous report
On July 1, 2025, the Fund’s Board of Directors approved the issuance of an aggregate of 419,523 restricted shares of Equus common stock pursuant to the Fund’s 2016 Equity Incentive Plan. As of the filing date of this Report on Form 10-Q, such shares have not yet been issued.
Reworded paragraphs (20)
Previous wording
On June 13, 2016, our shareholders approved the adoption of our 2016 Equity Incentive Plan (“Incentive Plan”). On January 10, 2017, the SEC issued an order approving the Incentive Plan and certain awards intended to be made thereunder. The Incentive Plan is intended to promote the interests of the Fund by encouraging officers, employees, and directors of the Fund and its affiliates to acquire or increase their equity interest in the Fund and to provide a means whereby they may develop a proprietary interest in the development and financial success of the Fund, to encourage them to remain with and devote their best efforts to the business of the Fund, thereby advancing the interests of the Fund and its stockholders. The Incentive Plan is also intended to enhance the ability of the Fund and its affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Fund. The Incentive Plan permits the award of restricted stock as well as common stock purchase options. The maximum number of shares of common stock that are subject to awards granted under the Incentive Plan is 2,434,728 shares. The term of the Incentive Plan will expire on June 13, 2026. On March 17, 2017, we granted awards of restricted stock under the Plan to certain of our directors and executive officers in the aggregate amount of 844,500 shares. The awards were each subject to a vesting requirement over a 3-year period unless the recipient thereofwas terminated or removed from their position as a director or executive officer without “cause”, or as a result of constructive termination, as such terms are defined in the respective award agreements entered into by each of the recipients and the Fund. As of June 30, 2020, all awards granted under the Incentive Plan were fully vested. We account for share-based compensation using the fair value method, as prescribed by ASC 718. Accordingly, for restricted stock awards, we measure the grant date fair value based upon the market price of our common stock on the date of the grant and amortize the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term. SeeSubsequent Events below, where the Board of Directors approved the issuance of additional shares of restricted stock under the Incentive Plan.
Current wording
On June 13, 2016, our shareholders approved the adoption of our 2016 Equity Incentive Plan (“Incentive Plan”). On January 10, 2017, the SEC issued an order approving the Incentive Plan and certain awards intended to be made thereunder. The Incentive Plan is intended to promote the interests of the Fund by encouraging officers, employees, and directors of the Fund and its affiliates to acquire or increase their equity interest in the Fund and to provide a means whereby they may develop a proprietary interest in the development and financial success of the Fund, to encourage them to remain with and devote their best efforts to the business of the Fund, thereby advancing the interests of the Fund and its stockholders. The Incentive Plan is also intended to enhance the ability of the Fund and its affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Fund. The Incentive Plan permits the award of restricted stock as well as common stock purchase options. The maximum number of shares of common stock that are subject to awards granted under the Incentive Plan is 2,434,728 shares. The term of the Incentive Plan will expire on June 13, 2026. On March 17, 2017, we granted awards of restricted stock under the Plan to certain of our directors and executive officers in the aggregate amount of 844,500 shares. These awards were each subject to a vesting requirement over a 3-year period unless the recipient thereof was terminated or removed from their position as a director or executive officer without “cause”, or as a result of constructive termination, as such terms are defined in the respective award agreements entered into by each of the recipients and the Fund. During the quarter ended September 30, 2025, we awarded an additional 380,523 shares of restricted stock under the Incentive Plan. As of September 30, 2020, all awards granted under the Incentive Plan, including the new awards recently granted, were fully-vested. We account for share-based compensation using the fair value method, as prescribed by ASC 718. Accordingly, for restricted stock awards, we measure the grant date fair value based upon the market price of our common stock on the date of the grant and amortize the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term. In the case of the most recent awards under the Incentive Plan which were fully-vested, we recognized share-based compensation expense on the date of grant, based on the number of restricted shares awarded and our closing trading price per share on such date.
Previous wording
Impact of Economic and Geopolitical Events on the Oil and Gas Sector. Beginning in the second quarter of 2022, crude prices began a steady decline following increases that were largely due to increased post-Covid demand and the buildup and subsequent invasion of Ukraine by Russian forces. Prices began to increase and fall in successive quarters between the third quarter of 2023 and the third quarter of 2024 before stabilizing, and stood at $65.11 as of June 30, 2025. Natural gas prices experienced high volatility in 2022 before collapsing in 2023 and then steadily increasing each quarter thereafter with a modest decrease in the second quarter of 2025, finishing the quarter ended June 30, 2025 at $3.26 per MMBTU. Relative oil price stability has been a significant factor in increased consolidation activity in the Williston Basin region in North Dakota where Morgan E&P, LLC holds its development rights.
Current wording
Impact of Economic and Geopolitical Events on the Oil and Gas Sector. Beginning in the second quarter of 2022, crude prices began a steady decline following increases that were largely due to increased post-Covid demand and the buildup and subsequent invasion of Ukraine by Russian forces. Prices began a rise and fall in successive quarters between the third quarters of 2023 and the fourth quarter of 2024 before experiencing a slow and steady decline from the end of 2024 and throughout 2025, and stood at $63.17 as of September 30, 2025. Natural gas prices experienced high volatility in 2022 before collapsing in 2023 and then steadily increasing each quarter thereafter until the first quarter of 2025 before declining in the second and third quarters of 2025, finishing the quarter ended September 30, 2025 at $3.12 per MMBTU. Relative oil and gas price stability has been a significant factor in increased consolidation activity in the Williston Basin region in North Dakota where Morgan E&P, Inc. holds its development rights.
Previous wording
The U.S. Economy. U.S. GDP increased sharply in the second quarter of 2025, growing at an annualized rate of 3.0% as compared to a 0.5% contraction in the first quarter of 2025. Second quarter 2025 GDP growth surpassed consensus estimates of 2.3% for the period and was almost double the increase of 1.6% generated during the second quarter of 2024. The principal drivers of the recovery were a steep decline in imports—down 30.3% after a 37.9% surge in the first quarter of 2025—and a renewed acceleration in consumer spending, which rose 1.4% compared to 0.5% in the prior quarter. Federal spending continued to decline, but gains in private-sector activity, including manufacturing and auto output, helped offset the drag. The Congressional Budget Office continues to project full-year GDP growth of 1.9% for 2025, with a modest slowdown to 1.8% in 2026. (Sources: Bureau of Economic Analysis; The Congressional Budget Office).
Current wording
The U.S. Economy. U.S. GDP is expected to increase at an annualized rate of 3.9% for the third quarter of 2025 as compared to an increase of 3.8% for the second quarter of 2025 and a 0.5% contraction in the first quarter of the year. Actual GDP results for the third quarter of 2025 have been delayed due to the shutdown of the federal government. Consensus estimates for the third quarter of 2025 have varied significantly, but the actual growth rate is expected to be almost a full percentage point higher than the third quarter of 2024 which saw annualized GDP growth of 2.8%. The principal drivers of the increases over the second and third quarters of 2025 were consumer spending and gains in private-sector activity, including manufacturing and auto output. The Congressional Budget Office continues to project full-year GDP growth of 1.9% for 2025, with a modest slowdown to 1.8% in 2026. (Sources: Federal Reserve Bank of Atlanta; Bureau of Economic Analysis; The Congressional Budget Office).
Previous wording
Employment and Housing. The U.S. added 73,000 jobs in July 2025, capping a weak second quarter in which job growth averaged just 35,000 per month—its slowest pace since early 2020. The unemployment rate held steady at 4.2%, unchanged from April, but downward revisions to May and June figures revealed that only 19,000 and 14,000 jobs were added in those months, respectively. The labor force participation rate edged down to 62.2% in July, reflecting a modest decline from 62.6% in April. The Congressional Budget Office now projects the unemployment rate will average 4.3% for 2025, rising to 4.5% in early 2026. Persistently high borrowing costs continue to suppress sales volumes of both new and existing homes, with housing starts down 11.4% in March and inventory levels remaining historically low. Despite these headwinds, mid-level home prices have continued to rise, outpacing inflation and driven by constrained supply. Conflicting economic signals—such as stable unemployment amid weak job creation and negative revisions—have kept mortgage rates elevated, with the 30-year fixed rate averaging 6.8% in April. Acquisition and refinancing activity is unlikely to rebound meaningfully until late 2025 or early 2026 (Sources: Bureau of Labor Statistics; Congressional Budget Office).
Current wording
Employment and Housing. The U.S. added an estimated 57,000 jobs in October 2025 after a relatively weak third quarter in which job growth averaged just 37,000 per month—almost as slow as the 35,000 per month averaged in the second quarter of 2025 which was the slowest hiring pace since early 2020. The unemployment rate in October 2025 held relatively steady at 4.3%, unchanged from September and August 2025. The labor force participation rate also held steady at 62.3% as of August 31, 2025 which remained relatively unchanged from the end of the second quarter of 2025. The Congressional Budget Office now projects the unemployment rate for the fourth quarter of 2025 will increase to 4.5 before tapering to 4.2% for 2026 and 4.4% for 2027. Persistently high borrowing costs relative to the pandemic lows continue to suppress sales volumes of both new and existing homes, with existing home sales presently at only 2.8% of available inventory, its lowest level in decades. Despite these headwinds, mid-level home prices have continued to rise, outpacing inflation and driven by constrained supply. Conflicting economic signals—such as stable unemployment amid weak job creation and negative revisions—have kept mortgage rates elevated, with the 30-year fixed rate averaging 6.25% in October 2025. Acquisition and refinancing activity is unlikely to rebound meaningfully until early 2026 (Sources: Federal Reserve Bank of Chicago; Bureau of Labor Statistics; Congressional Budget Office).
Previous wording
Consumer Prices. After experiencing substantial increases in 2022 and into 2023, consumer price growth continued to moderate through 2024 and into the first half of 2025. As of June 2025, the consumer price index was up 2.2% over the previous 12-month period, down from 2.4% in March and 2.8% in February, marking the sixth consecutive quarter of relatively stable inflation. However, following the implementation of new tariffs in the first and second quarters of 2025, many analysts now anticipate upward pressure on prices, with inflation expected to accelerate through the second half of 2025 and into 2026. (Sources: Bureau of Economic Analysis; Bureau of Labor Statistics; Morgan Stanley Research; Goldman Sachs).
Current wording
Consumer Prices. After experiencing substantial increases in 2022 and into 2023, consumer price growth continued to moderate through 2024 and into the first nine months of 2025. As of October 2025, the consumer price index was up 3.0% over the previous 12-month period, up from 2.9% in September and August 2025, marking the ninth consecutive quarter of relatively stable inflation. Consensus estimates for the remainder of 2025 are that inflation will remain consistent with the previous 10 months of the year. Thus far, the effect of the current administration’s tariff policy remains muted, but many analysts still anticipate upward pressure on prices, with inflation expected to accelerate in 2026. (Sources: Bureau of Economic Analysis; Bureau of Labor Statistics; Morgan Stanley Research; Goldman Sachs).
Previous wording
Interest Rates. Principally as a response to declining rates of GDP growth and inflation, on September 18, 2024, the Federal Reserve cut interest rates for the first time in four years, decreasing the federal funds rate by 50 basis points, and indicated that further cuts may be on the horizon. However, with stable unemployment and inflation data, the Federal Reserve declined to reduce the rate further in the Federal Open Market Committee’s May and July 2025 meetings. Given the uncertainty regarding the U.S. economy and the implementation of tariffs, commentators are mixed in forecasting further rate cuts in the second half of 2025. (Sources: The Wall Street Journal; The Federal Reserve Board).
Current wording
Interest Rates. Principally as a response to weaker employment figures and restrained inflation, the Federal Reserve cut interest rates in each of the FOMC’s September and October 2025 meetings by 25 basis points each time, with the federal funds rate range now down to between 3.75% and 4.00%. However, the Federal Reserve Chair declined to signal its intention to further reduce rates in its upcoming December 2025 meeting. Given the uncertainty regarding the U.S. economy and the effect of current tariff policy, commentators are mixed in forecasting further rate cuts in late 2025 or early 2026. (Sources: The Wall Street Journal; The Federal Reserve Board).
Previous wording
Private Equity. Private equity activity, both in the U.S. and globally, continued to soften in the first half of 2025, with deal volume declining from $464 billion in the fourth quarter of 2024 to $445 billion in the first quarter of 2025 and an estimated $428 billion in the second quarter of 2025. The U.S. remained the dominant market, accounting for approximately half of global totals. Fundraising trends remained subdued, extending the three-year decline that began in 2022, as limited partners exercised greater caution amid macroeconomic uncertainty. While average transaction size increased—driven by a handful of large-cap deals—overall deal volume in the second quarter of 2025 reached its lowest level since 2020. Despite persistent uncertainty surrounding global trade policies and interest rate trajectories, analysts now project a modest 1.2% increase in total private equity activity for 2025 compared to 2024, though still roughly 12.5% below the 2018–2019 annual average. (Sources: Statista; Ernst & Young).
Current wording
Private Equity. Private equity activity during the first half of 2025 continued a softening trend which began in the fourth quarter 2024. However, beginning in August 2025 and continuing through the end of September 2025, private equity activity increased sharply as compared to the first half of the year, with PE funds contributing substantially to the rise in mergers and acquisition activity described above. Overall, PE transactions increased 28% in the third quarter of 2025 as compared to the second quarter of 2025, and 38% as compared to the third quarter of 2024. PE fundraising trends, however, remained subdued, extending the three-year decline that began in 2022, as limited partners exercised greater caution amid macroeconomic uncertainty. Despite persistent uncertainty surrounding global trade policies and interest rate trajectories, analysts now project an 8% increase in total private equity activity for all of 2025 compared to 2024 and a further increase of 5% in 2026. (Sources: Foley & Lardner; Ernst & Young).
Previous wording
During the six months ended June 30, 2025, our net asset value increased from $2.17 per share to $2.51 per share, an increase of 15.7%. As of June 30, 2025, our common stock is trading at a 45.8% discount to our net asset value as compared to 49.3% as of December 31, 2024.
Current wording
During the nine months ended September 30, 2025, our net asset value decreased from $2.17 per share to $1.90 per share, a decrease of 12.4%. As of September 30, 2025, our common stock is trading at a 15.6% premium to our net asset value as compared to 49.3% discount to our net asset value as of December 31, 2024.
Previous wording
Net investment loss was $0.6 million and $0.9 million for the three months ended June 30, 2025 and 2024, respectively and $1.7 million and $2.0 million for the six months ended June 30, 2025 and 2024, respectively primarily due to a decrease in professional fees and professional liability expenses.
Current wording
Net investment loss was $1.4 million and $0.7 million for the three months ended September 30, 2025 and 2024, respectively, and $3.1 million and $2.7 million for the nine months ended September 30, 2025 and 2024, respectively, primarily due to an increase in compensation expense due additional shares issued under the equity incentive plan and an increase in interest expense related to the amortization of the debt discount, offset by a decrease in professional liability expenses.
Previous wording
Total investment income was comparable at $0.4 million and $0.3 million for the three months ended June 30, 2025 and 2024, respectively, and $0.7 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Total investment income was comparable at $0.4 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively, and $1.0 million and $0.9 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Compensation expense was $0.4 million and $0.5 million for the three months ended June 30, 2025 and 2024, respectively and $1.0 million and $0.9 million for the six months ended June 30, 2025 and 2024 respectively, due to the officer bonuses related to dispositions.
Current wording
Compensation expense was $0.9 million and $0.4 million for the three months ended September 30, 2025 and 2024, respectively and $1.9 million and $1.3 million for the nine months ended September 30, 2025 and 2024 respectively, due to the officer bonuses related to dispositions and shares issued under the Equity Incentive Plan.
Previous wording
Transaction costs, relating to the issuance of a convertible promissory note described in Note 5 of the financial statement footnotes above were $0.3 million for the six months ended June 30, 2025 as compared to $0 for the six months ended June 30, 2024.
Current wording
Transaction costs, relating to the issuance of a convertible promissory note described in Note 5 of the financial statement footnotes above were $0.3 million for the nine months ended September 30, 2025 as compared to $0 for the nine months ended September 30, 2024.
Previous wording
During the six months ended June 30, 2025, we recorded a decrease of $0.7 million in fair value of our equity holding in Morgan E&P, LLC (“Morgan”).
Current wording
During the nine months ended September 30, 2025, we recorded a decrease of $0.7 million in fair value of our equity holding in Morgan E&P, Inc. (“Morgan”).
Previous wording
On February 10, 2025, we purchased from General Enterprise Ventures, Inc., a developer of fire suppression products (“GEVI”), a 1-year senior convertible promissory note bearing interest at the rate of 10% per annum, in exchange for $1.5 million in cash (“GEVI Note”). Contemporaneously with the purchase of the GEVI Note, the Fund also received a common stock purchase warrant (“GEVI Warrant”) to acquire an aggregate of 1,875,000 shares of GEVI common stock at an exercise price of $0.50 per share. The shares of GEVI are publicly traded and, as of June 30, 2025, the closing trading price of GEVI shares was $1.95 as compared to $1.20 at March 31, 2025. Accordingly, during the three months ended June 30, 2025, we recorded an increase of $2.8 million in the fair value of the GEVI Note and a $2.0 million increase in the fair value of the GEVI Warrant.
Current wording
On February 10, 2025, we purchased from General Enterprise Ventures, Inc., a developer of fire suppression products (“GEVI”), a 1-year senior convertible promissory note bearing interest at the rate of 10% per annum, in exchange for $1.5 million in cash (“GEVI Note”). Contemporaneously with the purchase of the GEVI Note, the Fund also received a common stock purchase warrant (“GEVI Warrant”) to acquire an aggregate of 1,875,000 shares of GEVI common stock at an exercise price of $0.50 per share. On August 28, 2025, GEVI effected a 1-for-6 reverse split of its outstanding shares, which therefore increased the exercise price of the GEVI Warrant to $3.00 per share and reduced the number of shares subject to the GEVI Warrant to 312,500 shares. On September 22, 2025, we converted the GEVI Note, inclusive of $1.5 million in principal and $93,699 in interest, as accrued, into an aggregate of 664,041 post reverse-split shares of GEVI common stock. The shares of GEVI are publicly traded and, as of September 30, 2025, the closing trading price of GEVI shares was $5.89 per share ($0.98 on a pre-split basis) as compared to $11.70 per share ($1.95 on a pre-split basis) at June 30, 2025. Accordingly, during the three months ended September 30, 2025, we recorded a decrease of $3.4 million in the fair value of the GEVI Note and a $2.0 million decrease in the fair value of the GEVI Warrant.
Previous wording
On March 3, 2025, we sold Equus Energy to North American Energy Opportunities Corp., a developer of upstream oil and gas assets (“NAEOC”). The consideration provided by NAEOC consisted of $1.25 million in cash and 27,500 shares of preferred stock, redeemable within 6 months of the date of issuance at $100.00 per share based upon fulfillment of certain conditions.
Current wording
On March 3, 2025, we sold Equus Energy to North American Energy Opportunities Corp., a developer of upstream oil and gas assets (“NAEOC”). The consideration provided by NAEOC consisted of $1.25 million in cash and 27,500 shares of preferred stock, redeemable within 6 months of the date of issuance at $100.00 per share based upon fulfillment of certain conditions. The redemption conditions were not fulfilled by the 6-month deadline and, accordingly, at September 30, 2025, we valued the NAEOC preferred stock at $0.
Previous wording
At March 31, 2025, we valued our preferred stock in NAEOC at $2.7 million. Because the conditions to redemption of the preferred stock have not yet been fulfilled, we recorded a decrease of $2.7 million in the fair value of this investment during the three months ended June 30, 2025.
Current wording
At March 31, 2025, we valued our preferred stock in NAEOC at $2.7 million. Because the conditions to redemption of the preferred stock were not fulfilled by the redemption deadline of August 31, 2025, we recorded a realized loss of $2.7 million during the nine months ended September 30, 2025.
Previous wording
During the six months ended June 30, 2025, with respect to our holding in Equus Energy, LLC, we recorded a reversal of the unrealized depreciation of $4.1 million of the fair value of this investment.
Current wording
During the nine months ended September 30, 2025, with respect to our holding in Equus Energy, LLC, we recorded a reversal of the unrealized depreciation of $4.1 million of the fair value of this investment as a result of the sale of this investment.
Previous wording
During the six months ended June 30, 2024, we made a $2.2 million follow-on debt investment in Morgan E&P, LLC (“Morgan”). During this period, we also recorded an increase of $3.4 million in the fair value of our equity holding in Morgan. The increase was primarily due to the reclassification of a significant portion of Morgan’s proved reserves as proved developed producing, as well as the acquisition of approximately 810 additional net acres.
Current wording
During the nine months ended September 30, 2024, we made a $2.2 million follow-on debt investment in Morgan. During this period, we also recorded a decrease of $3.6 million in the fair value of our equity holding in Morgan. The decrease was primarily due to declines in oil prices, as well as declines in production during the period.
Previous wording
During the six months ended June 30, 2024, with respect to our holding in Equus Energy, LLC, we recorded no change in the fair value of this investment.
Current wording
During the nine months ended September 30, 2024, with respect to our holding in Equus Energy, LLC, we recorded a decrease of $2.0 million in the fair value of our investment. The decrease was primarily due to the decrease in oil prices during the period.****
Previous wording
Management performed an evaluation of the Fund’s activity through the date the financial statements were issued, noting the following subsequent event:
Current wording
Management performed an evaluation of the Fund’s activity through the date the financial statements were issued, noting no subsequent events.