EQUUS TOTAL RETURN, INC.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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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.
Jun 30, 2026 · Filed Aug 14, 2026
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 2026-03-31; filed 2026-05-20.
0001712543-26-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001712543-26-000047
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 55 previous paragraphs and 53 current paragraphs.
30 unchanged; 17 reworded; 6 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 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 (6)
Current report
Consumer Prices. Consumer prices rose sharply through the first half of 2026 before easing at the close of the second quarter. Consumer prices stood at 3.5% on an annualized basis in June 2026, down from 4.2% in May 2026, which had been the highest reading since April 2023, and representing the first decline in the annualized rate in five months. On a seasonally adjusted basis, the index declined 0.4% in June 2026, the largest one-month decrease since April 2020, driven principally by a 5.7% decline in energy prices following the temporary ceasefire in the conflict with Iran. Energy costs nonetheless remained 15.7% higher than a year earlier, with gasoline prices up 26.7%. Core inflation, which excludes food and energy, moderated to 2.6% on an annualized basis. Consensus estimates for 2026 are that headline consumer price inflation will average approximately 3.5%, with core inflation of approximately 2.9%. (Sources: Bureau of Labor Statistics; Federal Reserve Bank of Philadelphia Survey of Professional Forecasters; J.P. Morgan Global Research).
Current report
Interest Rates. After cutting the federal funds rate by 25 basis points at each of the FOMC’s September, October and December 2025 meetings, the Federal Reserve has held the target range at 3.50% to 3.75% at each of its meetings during 2026. The June 2026 FOMC meeting held rates steady but also resulted in a raising of the median estimate for the federal funds rate at the end of 2026 to 3.8% from 3.4% in March 2026, indicating that a majority of FOMC participants now anticipate at least one rate increase during 2026. At the July 2026 meeting, the Committee again held rates steady by a vote of 9-3, with three regional Reserve Bank presidents dissenting in favor of a 25 basis point increase. Following that meeting, market pricing reflected a meaningful probability of an increase at the September 2026 meeting, and long-dated yields rose, with the 30-year Treasury reaching its highest level since 2007. (Sources: The Federal Reserve Board; The Wall Street Journal).
Current report
Mergers and Acquisitions. Global merger and acquisition activity reached record levels during the first half of 2026, although the strength of the market was concentrated among the largest transactions. Aggregate global deal value for the six months ended June 30, 2026 was approximately $2.85 trillion, an increase of approximately 50% over the comparable period in 2025 and the highest first-half total on record, notwithstanding a 9% decline in the number of transactions. Transactions involving U.S. targets accounted for approximately $1.5 trillion, or 54%, of global deal value, an increase of approximately 80% year over year. Forty-eight transactions valued at $10 billion or more were announced during the first half of 2026, aggregating approximately $1.3 trillion. Technology remained the most active sector, accounting for approximately 24% of deal value with technology deal value increasing approximately 90% over the prior year, followed by industrials and the energy and power sectors. Valuation multiples remained disciplined, with the median enterprise value to EBITDA multiple holding at approximately 10.2x on a trailing twelve-month basis. Strategic acquirers accounted for a growing share of activity relative to financial sponsors. Expectations for further consolidation over the balance of 2026 remain high, with a majority of surveyed dealmakers anticipating increased merger and financing activity, although capital is expected to remain concentrated in a smaller number of high-conviction transactions. (Sources: LSEG Data & Analytics; PitchBook; Ernst & Young).
Current report
Private Equity. Private equity activity slowed materially during the second quarter of 2026 as geopolitical uncertainty, tighter financing conditions and the spike in energy prices weighed on sponsor activity. U.S. private equity deal value declined to $177.3 billion in the second quarter of 2026, a decrease of 37.5% from the first quarter of 2026 and 23.9% from the second quarter of 2025. Globally, private equity investment totaled approximately $1 trillion across 9,294 transactions during the first half of 2026. The sharpest contraction occurred in software, where deal value fell 65.7% year over year as investors assessed the pace and extent of disruption attributable to artificial intelligence, while energy held firm on structural demand associated with data center development. Exit activity remained constrained, with U.S. exits of $102.6 billion in the second quarter of 2026, a decline of approximately 46% from the first quarter, and global exit counts at their lowest levels in more than a decade. Initial public offerings provided a partial offset, accounting for approximately 31% of U.S. private equity exit value for the quarter, nearly triple the corresponding share for the first quarter. Fundraising remained concentrated among a limited number of established managers and depended on a small number of large closings. Analysts anticipate that improving conditions in the initial public offering market and renewed exit activity among larger sponsors may support a more constructive second half of 2026. (Sources: PitchBook; KPMG).
Current report
Compensation expense was $0.6 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively and $1.2 million and $1.0 million for the six months ended June 30, 2026 and 2025. The increase was due to officer bonuses due to dispositions.
Current report
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.
Removed paragraphs (8)
Previous report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Previous report
Consumer Prices. Following a stable 2025, consumer prices began to edge upward in March 2026 and currently stand at 3.8% on an annualized basis, the highest in nearly three years, largely driven by increases in energy prices and housing costs. Consensus estimates for the remainder of 2026 are that inflation will remain above 3.3% for the remainder of the year. (Sources: Bureau of Economic Analysis; Bureau of Labor Statistics; Morgan Stanley Research; Goldman Sachs).
Previous report
Interest Rates. After cutting interest rates in each of the FOMC’s September and October 2025 meetings by 25 basis points each time, the Fed has since determined to hold rates steady, declining to make further cuts during the remainder of 2025 and the first quarter of 2026. The April 2026 FOMC meeting which declined to cut the federal funds rate further, experienced four dissenting votes, the most in more than three decades. The new incoming Federal Reserve Chair is expected to be more aggressive than his predecessor regarding inflation, and consensus estimates are that he will be less inclined toward early rate cuts in 2026. (Sources: The Wall Street Journal; The Federal Reserve Board).
Previous report
Mergers and Acquisitions. Global merger and acquisition activity strengthened meaningfully through late 2025 and into 2026, with deal volumes and aggregate transaction values continuing to recover from the depressed levels of the prior year. The rebound that began in the third quarter of 2025 — when global deal value surged sharply from 2024 levels and large-cap transactions returned to the market — has carried forward into 2026 as financing conditions stabilized and strategic buyers re-entered the pipeline. Technology, energy, life sciences, and telecommunications remain the most active sectors, with technology-driven transactions, particularly in artificial intelligence, cloud infrastructure, and financial services, continuing to anchor overall deal momentum. Expectations for further consolidation in 2026 remain high, supported by improving credit markets, strong balance-sheet capacity among strategic acquirers, and a growing backlog of private-equity-sponsored transactions preparing to come to market. (Sources: Ernst & Young; Bloomberg).
Previous report
Private Equity. Private equity activity accelerated in the final months of 2025 and continued into 2026 with a more complex but still resilient profile. In the first quarter of 2026, global PE fundraising totaled $161.6 billion, a 15% increase from $140 billion in the fourth quarter of 2025, though still 6% below the $172.7 billion raised in the first quarter of 2025, reflecting a market that is stabilizing but not yet fully recovered. Deal activity showed a similar pattern, as U.S. private-equity investment reached $228 billion in the first quarter of 2026, supported by several large, high-conviction transactions, even as overall deal volume fell to a five-year low, underscoring a shift toward fewer but larger deals. The first quarter of 2026 witnessed 5,100 transactions valued at an aggregate of $481.6 billion, a sequential decline from the unusually strong second half of 2025 but still well above the stagnant levels of earlier years, suggesting normalization rather than contraction. For the remainder of 2026, analysts expect modest year-over-year growth in PE activity, building on the late-2025 rebound while the fundraising environment continues to recover more slowly. (Sources: Foley & Lardner; Ernst & Young).
Previous report
respectively. The decrease was primarily dueto $0.3 million in transaction costs related to the issuance of a convertible promissory note in described in Note 5, offset by an increase in interest expense of $0.1 million.
Previous report
Compensation expense was comparable at $0.6 million for the three months ended March 31, 2026 and 2025, respectively.
Previous report
During the three months ended March 31, 2025, we recorded a $0.1 million decrease in fair value in our investment in NAEOC.
Reworded paragraphs (17)
Previous wording
On June 13, 2016, our shareholders approved the adoption of our 2016 Equity Incentive Plan (“2016 Plan”). On March 19, 2026, our shareholders approved the adoption of our 2025 Equity Incentive Plan (“2025 Plan”, and together with the 2016 Plan, the “Incentive Plans”). The Incentive Plans are 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 Plans are 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 Plans permit 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 2016 Plan is 2,434,728 shares, and the maximum number of shares of common stock that are subject to awards granted under the 2025 Plan are 2,793,338 shares. The term of the 2016 Plan will expire on June 13, 2026 and the term of the 2025 Plan will expire on March 19, 2036. During 2017, we granted awards of restricted stock under the 2016 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. These were fully vested as of September 30, 2020. During 2025, we awarded an additional 380,523 shares of restricted stock under the Incentive Plan to officers of the Fund and to consultants of Morgan. These awards were fully vested at the grant date. No awards have yet been made under the 2025 Plan. 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.
Current wording
On June 13, 2016, our shareholders approved the adoption of our 2016 Equity Incentive Plan (“2016 Plan”). On March 19, 2026, our shareholders approved the adoption of our 2025 Equity Incentive Plan (“2025 Plan”, and together with the 2016 Plan, the “Incentive Plans”). The Incentive Plans are 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 Plans are 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 Plans permit 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 2016 Plan is 2,434,728 shares, and the maximum number of shares of common stock that are subject to awards granted under the 2025 Plan are 2,793,338 shares. The term of the 2016 Plan will expire on June 13, 2026 and the term of the 2025 Plan will expire on March 19, 2036. During 2017, we granted awards of restricted stock under the 2016 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. These were fully vested as of September 30, 2020. During 2025, we awarded an additional 380,523 shares of restricted stock under the Incentive Plan to officers of the Fund and to consultants of Morgan. These awards were fully vested at the grant date. In July 2026, we granted awards under the 2025 Plan of an aggregate of 540,000 shares of restricted stock to two key personnel of Morgan. No other awards have been made under the 2025 Plan. 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 …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Impact of Economic and Geopolitical Events on the Oil and Gas Sector. Oil prices experienced a slow and steady decline beginning in the first quarter of 2024 and continuing until the end of 2025. The conflict in Iran, which commenced in February, 2026, has resulted in dramatically increased spot prices, ending the first quarter of 2026 at $101.30 per barrel. Conversely, since the beginning of 2024, natural gas prices steadily increased before declining in the first three quarters of 2025 and recovering at the end of 2025, and thereafter declining throughout the first three months of 2026, ending the quarter at $2.88 per MMBTU. Prior to the onset of hostilities in the Middle East, relative oil and gas price stability had 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.
Current wording
Impact of Economic and Geopolitical Events on the Oil and Gas Sector. Oil prices experienced a slow and steady decline beginning in the first quarter of 2024 and continuing until the end of 2025. The conflict in Iran, which commenced in February 2026, temporarily resulted in dramatically increased spot prices, ending the first quarter of 2026 at $101.30 per barrel before declining sharply to $69.50 as of June 30, 2026. Conversely, since the beginning of 2024, natural gas prices steadily increased before declining in the first three quarters of 2025, recovering at the end of 2025, and thereafter declining, more or less, throughout the first half of 2026, ending the quarter ended June 30, 2026 at $3.28 per MMBTU. Prior to the onset of hostilities in the Middle East, relative oil and gas price stability had 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 at an annualized rate of 2.0% for the first quarter of 2026 as compared to an increase of 0.5% for the fourth quarter of 2025, below consensus estimates of 2.0% for the quarter. The principal drivers of the increase over the fourth quarter of 2025 were the effect of the government shutdown during the fourth quarter, as well as increases in gross private domestic investment, government spending, and net exports. The Congressional Budget Office has projected full-year GDP growth of 2.2% for 2026, with a slowdown to 1.8% in 2027. (Sources: Federal Reserve Bank of Atlanta; Bureau of Economic Analysis; The Congressional Budget Office).
Current wording
The U.S. Economy. U.S. GDP increased at an annualized rate of 1.5% for the second quarter of 2026 as compared to an increase of 2.1% for the first quarter of 2026, below consensus estimates of 2.1% for the quarter. The slower growth in the second quarter of 2026 was principally due to decreases in government spending and deceleration in investment and exports, partially offset by an increase in consumer spending. The Congressional Budget Office has projected full-year GDP growth of 2.2% for 2026, with a slowdown to 1.8% in 2027. (Sources: Bureau of Economic Analysis; The Congressional Budget Office).
Previous wording
Employment and Housing. The U.S. added an estimated 115,000 jobs in April 2026 as compared to 178,000 jobs added in March 2026. The unemployment rate in April 2026 held relatively steady at 4.3%, unchanged from March 2026. However, the labor force participation rate decreased to 61.8%, the lowest since October 2021. The Congressional Budget Office now projects the unemployment rate for all of 2026 to decrease to 4.2% before increasing slightly to 4.4% in both 2027 and 2028. Persistently high borrowing costs continue to suppress sales volumes of both new and existing homes. Despite these headwinds, mid-level home prices have continued to rise moderately, outpacing inflation and driven by constrained supply. Conflicting economic signals—such as stable unemployment amid inflation pressures and high energy prices—have kept mortgage rates elevated, with the 30-year fixed rate averaging 6.25% to 6.35% in April 2026. Acquisition and refinancing activity is unlikely to rebound meaningfully until 2027 (Sources: Federal Reserve Bank of Chicago; Bureau of Labor Statistics; Congressional Budget Office).
Current wording
Employment and Housing. The U.S. lost an estimated 23,000 jobs in July 2026, as compared to gains of 20,000 jobs in June 2026 and 63,000 jobs in May 2026. Combined payroll growth for May and June 2026 was revised downward by 103,000 jobs from previously reported levels. The unemployment rate declined to 4.1% in July 2026, a thirteen-month low, from 4.2% in June 2026, although the decline was attributable principally to a further contraction of the labor force rather than to job creation. The labor force participation rate fell to 61.4%, the lowest level since February 2021, and average hourly earnings increased 3.2% year over year, the slowest pace since May 2021. The Congressional Budget Office now projects the unemployment rate to reach 4.6% by the end of 2026 before declining gradually to 4.5% in 2027 and 4.4% in 2028. Persistently high borrowing costs continue to suppress sales volumes of both new and existing homes, with existing home sales declining 2.4% in June 2026 to a seasonally adjusted annual rate of 4.09 million units and sales of new single-family homes running 5.6% below June 2025 levels. Despite these headwinds, the median existing-home price reached an all-time high of $440,600 in June 2026, an increase of 1.8% over the prior year and the thirty-sixth consecutive month of year-over-year price increases, although price appreciation now trails wage growth and for-sale inventory has improved to 4.6 months of supply. Conflicting economic signals—such as a softening labor market amid inflation pressures and high energy prices—have kept mortgage rates elevated, with the 30-year fixed rate averaging 6.49% in June 2026 and 6.69% as of August 6, 2026. Acquisition and refinancing activity is unlikely to rebound meaningfully until 2027 (Sources: Bureau of Labor Statistics; Congressional Budget Office; National Association of Realtors; Freddie Mac; U.S. Census Bureau).
Previous wording
During the three months ended March 31, 2026, our net asset value increased from $1.19 per share to $1.50 per share, an increase of 26.1%. As of March 31, 2026, our common stock is trading at a 18.5% discount to our net asset value as compared to 18.5% premium to our net asset value as of December 31, 2025.
Current wording
During the six months ended June 30, 2026, our net asset value was unchanged at $1.19 per share. As of June 30, 2026, our common stock is trading at a 4.0% discount to our net asset value as compared to 18.5% premium to our net asset value as of December 31, 2025.
Previous wording
On February 7, 2025, the Fund issued a one-year senior convertible promissory note bearing interest at 10% per annum in exchange for $2.0 million (“Equus Note”) On February 7, 2026, the Equus Note matured and remains unpaid as of March 31, 2026 and remains unpaid as of March 31, 2026 and continuing until the filing of this Quarterly Report on Form 10-Q.
Current wording
On February 7, 2025, the Fund issued a one-year senior convertible promissory note bearing interest at 10% per annum in exchange for $2.0 million (“Equus Note”) On February 7, 2026, the Equus Note matured and remains unpaid as of June 30, 2026 and continuing until the filing of this Quarterly Report on Form 10-Q. On July 29, 2026, the Fund received a Notice of Event of Default from the holder of the Equus Note.
Previous wording
Net investment loss was $0.9 million and $1.1 million for the three months ended March 31, 2026 and 2025,
Current wording
Net investment loss was $0.9 million and $0.6 million for the three months ended June 30, 2026 and 2025, respectively and $1.8 million and $1.7 million for the six month periods ended June 30, 2026 and 2025, respectively. The increased loss in the second quarter of 2026 was primarily due to $0.2 million in compensation expense and $0.1 million in professional fees.
Previous wording
Total investment income was comparable at $0.3 for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Total investment income was comparable at $0.3 million for each of the three month periods ended June 30, 2026 and 2025, respectively and $0.6 million for each of the six month periods ended June 30, 2026 and 2025, respectively.
Previous wording
Professional fees were comparable at $0.3 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Professional fees were comparable at $0.4 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively and $0.7 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively.
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 and $0.3 million for the three months ended March 31, 2026 and 2025, respectively.
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 and $0.3 million for the three and six months ended June 30, 2026 and 2025, respectively.
Previous wording
During the three months ended March 31, 2026, we recorded an increase of $5.0 million in fair value of our equity holding in Morgan E&P, Inc. (“Morgan”), largely as a result of the substantial increase in oil prices during the quarter, as well as increases in the forward price for oil in future periods.
Current wording
During the six months ended June 30, 2026, we recorded an increase of $2.5 million in fair value of our equity holding in Morgan E&P, Inc. (“Morgan”), largely as a result of a substantial increase in oil prices during the quarter, as well as increases in the forward price for oil in future periods.
Previous wording
During the three months ended March 31, 2026, we recorded a decrease of $0.2 million in fair value of our equity holding in CitroTech. (“CITR”) due to the reversal of the unrealized appreciation of $0.5 million of the fair value of this investment due to the sale of shares, offset by the increase in unrealized appreciation of $0.3 million due to the increase in the closing share price at March 31, 2026.
Current wording
During the six months ended June 30, 2026, we recorded a decrease of $2.9 million in fair value of our equity holding in CitroTech. (“CITR”) due to the reversal of the unrealized appreciation of $1.3 million of the fair value of this investment due to the sale of shares, along with a decrease in unrealized appreciation $1.0 million due to the decrease in the closing share price at June 30, 2026. The fair value of our warrant holding in CITR also decreased, resulting in an unrealized depreciation of $0.6 million at June 30, 2026.
Previous wording
During the three months ended March 31, 2025, we recorded an increase of $1.0 million in fair value of our equity holding in Morgan largely due to significant increases in the short and long-term price of crude oil.
Current wording
During the six months ended June 30, 2025, we recorded an increase of $0.7 million in fair value of our equity holding in Morgan largely due to significant increases in the short and long-term price of crude oil.
Previous wording
During the three months ended March 31,2025, 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.
Current 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 as a result of the sale of this investment.
Previous wording
On February 10, 2025, we purchased from CitroTech, Inc., a developer of fire suppression products (“CITR”), a 1-year senior convertible promissory note bearing interest at the rate of 10% per annum, in exchange for $1.5 million in cash (“CITR Note”). Contemporaneously with the purchase of the CITR Note, the Fund also received a common stock purchase warrant (“CITR Warrant”) to acquire an aggregate of 1,875,000 shares of CITR common stock at an exercise price of $0.50 per share. The shares of CITR are traded on the NYSE American Stock Exchange and, as of March 31, 2025, the closing trading price of CITRI shares was $1.20. Accordingly, during the three months ended March 31, 2025, we recorded an increase of $3.0 million in fair value of the CITR Note and $1.3 million increase in the fair value of the CITR Warrant.
Current wording
On February 10, 2025, we purchased from CitroTech, Inc., a developer of fire suppression products (“CITR”), a 1-year senior convertible promissory note bearing interest at the rate of 10% per annum, in exchange for $1.5 million in cash (“CITR Note”). Contemporaneously with the purchase of the CITR Note, the Fund also received a common stock purchase warrant (“CITR Warrant”) to acquire an aggregate of 1,875,000 shares of CITR common stock at an exercise price of $0.50 per share. The shares of CITR are traded on the NYSE American Stock Exchange and, as June 30, 2025, the closing trading price of CITR shares was $1.95. 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 CITR Warrant.
Previous wording
During the three months ended March 31, 2026, with respect to the warrants issued, we recognized depreciation of the warrant liability of $0.3 million.
Current wording
During the six months ended June 30, 2026, with respect to the warrants issued, we recognized appreciation of the warrant liability of $0.5 million.
Previous wording
Management performed an evaluation of the Fund’s activity through the date the financial statements were issued, noting the following subsequent events:
Current wording
Management performed an evaluation of the Fund’s activity through the date the financial statements were issued, noting the following subsequent event: