EQUUS Total Return | 10-Q: FY2025 Q3 Revenue: USD 356 K

Revenue: As of FY2025 Q3, the actual value is USD 356 K.

EPS: As of FY2025 Q3, the actual value is USD -0.59.

EBIT: As of FY2025 Q3, the actual value is USD -984 K.

Investment Income: $1.05 million for the nine months ended September 30, 2025, compared to $0.95 million for the same period in 2024.

Net Investment Loss: - $3.12 million for the nine months ended September 30, 2025, compared to - $2.65 million for the same period in 2024.
Compensation Expense: $1.92 million for the nine months ended September 30, 2025, compared to $1.33 million for the same period in 2024.
Professional Fees: $0.84 million for the nine months ended September 30, 2025, compared to $1.17 million for the same period in 2024.
Transaction Costs: $0.31 million for the nine months ended September 30, 2025, compared to $0 for the same period in 2024.
Interest Expense: $0.49 million for the nine months ended September 30, 2025, compared to $0.13 million for the same period in 2024.

Net Cash Used in Operating Activities: - $1.93 million for the nine months ended September 30, 2025, compared to - $15.32 million for the same period in 2024.
Net Cash Provided by Financing Activities: $2.00 million for the nine months ended September 30, 2025, compared to $10.04 million for the same period in 2024.
Cash and Cash Equivalents: $0.33 million as of September 30, 2025, compared to $0.26 million as of December 31, 2024.

Fair Value of Investments: $28.03 million as of September 30, 2025, compared to $27.50 million as of December 31, 2024.
Net Asset Value per Share: $1.90 as of September 30, 2025, compared to $2.17 as of December 31, 2024.

Investment Strategy: The company aims to maximize return to stockholders through investments in debt and equity securities of companies with a total enterprise value between $5.0 million and $75.0 million. The focus is on companies pursuing growth through acquisition or organically, leveraged buyouts, management buyouts, and recapitalizations of existing businesses or special situations.
Tax Status: The company elected not to qualify as a RIC in the fourth quarter of 2024 and will be subject to normal corporate rates of taxation on its income and gains.

Transformation to Operating Company: The company is evaluating opportunities to transform into an operating company and may seek further authorization from shareholders to withdraw its BDC election. This transformation is not expected to occur before December 31, 2025.
Reduction in Asset Coverage Ratio: The company reduced its asset coverage ratio from 200% to 150%, allowing it to borrow up to twice the value of its net assets.

Liquidity and Capital Resources: The company is evaluating the impact of current market conditions on portfolio valuations and income generation. It may require loans, capital investment, or the disposal of certain investments to cover potential cash shortfalls.

Economic Conditions: The company expects U.S. GDP growth to be 3.9% for the third quarter of 2025, with full-year growth projected at 1.9% for 2025 and 1.8% for 2026.
Employment and Housing: The unemployment rate is projected to increase to 4.5% in the fourth quarter of 2025, with a modest slowdown in housing sales due to high borrowing costs.
Consumer Prices and Interest Rates: Inflation is expected to remain stable at around 3.0% for the remainder of 2025, with the Federal Reserve potentially cutting interest rates further in late 2025 or early 2026.