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  <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.5pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->
  
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  <P STYLE="font: 13.5pt Times New Roman, Times, Serif; margin: 0.25in 0 0; text-align: center"><B>UNITED STATES </B></P>
  
  <P STYLE="font: 13.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549 </B></P>
  
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  <P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>FORM 10-Q </B></P>
  
  <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 1pt 3in"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 9pt 0 0">(Mark One)</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings"><B>x</B></FONT></TD><TD><B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">For the quarterly period ended March 31,
  2013</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">or</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt"><FONT STYLE="font-family: Wingdings"><B>&#168;</B></FONT></TD><TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">For the transition period <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
  to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">Commission File Number 814-00098</P>
  
  <P STYLE="font: 6pt/4pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: left; border-bottom: Black 1pt solid">&#9;&nbsp;</P>
  
  <P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Exact name of registrant as specified in
  its charter) </B></P>
  
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  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
  <TR>
      <TD STYLE="width: 50%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 50%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
      <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt"><B>76-0345915</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>
          <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(State or other jurisdiction of</B></P>
          <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>incorporation or organization)</B></P></TD>
      <TD>
          <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(I.R.S. Employer</B></P>
          <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Identification No.)</B></P></TD></TR>
  <TR>
      <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt"><B>Eight Greenway Plaza, Suite 930 Houston, Texas</B></FONT></TD>
      <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt"><B>77046</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>(Address of principal executive offices)</B></FONT></TD>
      <TD STYLE="font: 7.5pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7.5pt"><B>(Zip Code)</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Registrant&rsquo;s telephone number,
  including area code:&nbsp;(713)&nbsp;529-0900</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B></B></P>
  
  <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 1pt 3in"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the registrant
  (1)&nbsp;has filed all reports required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the
  preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2)&nbsp;has been subject
  to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">x</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
  <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the registrant
  has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
  and posted pursuant to Rule 405 of Regulation S-T (&sect;232.405 of this chapter) during the preceding 12 months (or for such shorter
  period that the registrant was required to submit and post such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
  <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the registrant
  is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &ldquo;accelerated filer and
  large accelerated filer&rdquo; in Rule 12b-2 of the Exchange Act.</P>
  
  <P STYLE="font: 13.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
  <TR>
      <TD STYLE="width: 25%; font-size: 0.5pt">&nbsp;</TD>
      <TD STYLE="width: 21%; font-size: 0.5pt">&nbsp;</TD>
      <TD STYLE="width: 26%; font-size: 0.5pt">&nbsp;</TD>
      <TD STYLE="width: 28%; font-size: 0.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Large accelerated filer <FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD>
      <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 10pt">Accelerated filer <FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD>
      <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 10pt">Non-accelerated filer <FONT STYLE="font-family: Wingdings">x</FONT></FONT></TD>
      <TD STYLE="padding-bottom: 0.75pt; text-align: left; font-size: 10pt; vertical-align: top"><FONT STYLE="font-size: 10pt">Smaller
  Reporting Company <FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Indicate by check mark whether the registrant
  is a shell company.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;
  <FONT STYLE="font-family: Wingdings">x</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">There were 10,561,646 shares of the registrant&rsquo;s
  common stock, $.001 par value, outstanding, as of May 15, 2013.</P>
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">EQUUS TOTAL RETURN, INC.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(A Delaware Corporation)</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><A NAME="TableOfContents"></A>INDEX</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
      <TD STYLE="width: 93%; font-size: 0.5pt">&nbsp;</TD>
      <TD STYLE="width: 7%; font-size: 0.5pt; text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="padding-left: 0.1in; font-size: 4pt; line-height: 2pt">&nbsp;</TD>
      <TD STYLE="padding-left: 0.1in; text-align: center; vertical-align: bottom">
          <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><B>PAGE</B></P>
  <!-- Field: Rule-Page --><DIV STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_001">PART I.&nbsp;FINANCIAL INFORMATION</A></FONT></TD>
      <TD STYLE="text-align: center; padding-left: 0.1in; font-size: 4pt; line-height: 2pt; vertical-align: bottom">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_002">Item&nbsp;1. Financial Statements</A></FONT></TD>
      <TD STYLE="text-align: center; padding-left: 0.1in; font-size: 4pt; line-height: 2pt; vertical-align: bottom">&nbsp;</TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 60pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_018">Balance Sheets</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">3</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 60pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_003">Statements of Operations</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 60pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_004">Statements of Changes in Net Assets</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">5</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 60pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_005">Statements of Cash Flows</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">6</FONT></TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 60pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_006">Supplemental Information&mdash;Selected Per Share Data and Ratios</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">7</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 60pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_007">Schedule of Investments</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">8</FONT></TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 60pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_009">Notes to Financial Statements</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_010">Item&nbsp;2. Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">22</FONT></TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_011">Item&nbsp;3. Quantitative and Qualitative Disclosure about Market Risk</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">26</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_012">Item&nbsp;4. Controls and Procedures</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">27</FONT></TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_013">PART II.&nbsp;OTHER INFORMATION</A></FONT></TD>
      <TD STYLE="text-align: center; padding-left: 0.1in; line-height: 2pt; vertical-align: bottom">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_014">Item 1. Legal Proceedings</A> &#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">27</FONT></TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_015">Item 1A. Risk Factors</A> &#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">28</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_016">Item&nbsp;6. Exhibits</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">29</FONT></TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_017">SIGNATURE</A>&#9;</FONT></TD>
      <TD NOWRAP STYLE="text-align: center; padding-bottom: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">30</FONT></TD></TR>
  </TABLE>
  
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  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
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  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS TOTAL RETURN, INC. </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_018"></A><U>BALANCE SHEETS </U></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font-size: 9pt"><A NAME="a_001"></A>&nbsp;</FONT><FONT STYLE="font-size: 10pt"><B><U>Part
  I. Financial Information</U></B></FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U><A NAME="a_002"></A>Item&nbsp; 1.</U>&nbsp;&nbsp;&nbsp;<U>Financial Statements
  </U></B></P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
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      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">March 31,</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">2013</P></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">December 31,</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">2012</P></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt; font-weight: bold">(in thousands, except per share amounts)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">(Unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>Assets</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Investments in portfolio securities at fair value:</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 64%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments (cost at&nbsp;&nbsp;$15,569 and $15,479 respectively)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">6,893</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">7,419</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments (cost at $350 and $350 respectively)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments (cost at $10,616 and $10,625 respectively)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,582</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,663</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in portfolio securities at fair value</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,232</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Cash and cash equivalents</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,761</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,687</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Accounts receivable and other</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">221</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Accrued interest receivable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">167</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">293</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,774</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,283</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Liabilities and net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">321</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">214</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable to related parties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">37</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">194</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">358</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Commitments and contingencies</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,416</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">32,875</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Net assets consist of:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,495</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,495</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed net investment losses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,179</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,408</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized depreciation of portfolio securities, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,910</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,222</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,416</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">32,875</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Shares of common stock issued and outstanding, $.001 par value, 50,000 shares authorized</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">Shares of preferred stock issued and outstanding, $.001 par value, 5,000 shares authorized</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Net asset value per share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.97</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.11</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B>&nbsp;</B></FONT></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT><FONT STYLE="font-size: 10pt">The accompanying notes are an integral part of these financial statements. </FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS TOTAL RETURN, INC.</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U><A NAME="a_003"></A>STATEMENTS OF OPERATIONS </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-align: center; color: Red"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Three
      months ended March 31,</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 11.5pt; font-weight: bold"><FONT STYLE="font-size: 10pt">(in thousands,
      except per share amounts)</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2013</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">2012</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Investment income (loss), net:</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income (loss), net:</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 64%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control
      investments</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">(132</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">140</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate
      investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">36</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">87</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      interest income (loss), net</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(96</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">227</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest from
      temporary cash investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment
      income (loss), net</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(96</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">227</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD><FONT STYLE="font-size: 10pt">Expenses:</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional fees</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">268</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">283</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation expense</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">239</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">199</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Director fees and expenses</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">102</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">140</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">38</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">72</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mailing, printing and other expenses</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">23</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">675</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">725</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Net investment loss</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(771</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(498</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Net unrealized depreciation of portfolio securities:</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,910</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,398</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(17,222</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(17,399</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Net change in unrealized depreciation
      of portfolio securities</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">(688</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">Net decrease in net assets resulting from
      operations</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">(1,459</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">(497</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">Net decrease in net assets resulting from operations
      per share:</FONT></TD><TD STYLE="font-size: 11pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 11pt; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
      and diluted</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">(0.14</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">(0.05</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">Weighted average shar</FONT>es outstanding:</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
      <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
      <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 11pt; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
      and diluted</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">10,562</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">10,562</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-align: center; color: Red"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">The accompanying notes are an integral
  part of these financial statements.</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 4 -->
      <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD><TD STYLE="text-align: center; width: 34%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS TOTAL RETURN, INC. </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U><A NAME="a_004"></A>STATEMENTS OF CHANGES IN NET ASSETS </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-align: center; color: Red"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended March 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; text-align: left">Net decrease in net assets resulting from operations</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(1,459</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">(497</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Net assets at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">32,875</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,148</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net assets at end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,416</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">37,651</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-align: center; color: Red"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">The accompanying notes are an integral
  part of these financial statements.</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 5 -->
      <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD><TD STYLE="text-align: center; width: 34%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS TOTAL RETURN, INC. </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U><A NAME="a_005"></A>STATEMENTS OF CASH FLOWS </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-align: center; color: Red"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended March 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt; font-weight: bold">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Reconciliation of decrease in net assets resulting from operations to net cash</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;used in operating activities:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 64%; text-align: left">Net decrease in net assets resulting from operations</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">(1,459</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">(497</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Adjustments to reconcile net decrease in net assets resulting from operations to net cash</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;used in operating activities:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) depreciation of portfolio securities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">688</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of portfolio securities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(90</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments received from portfolio securities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of temporary cash investments, net</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,020</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts receivable and other</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(150</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(53</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accrued interest receivable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">126</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(227</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">163</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable to related parties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(157</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">48</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Net cash used in operating activities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(926</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,517</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Cash flows from financing activities:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under margin account</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments under margin account</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(6,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Net decrease in cash and cash equivalents</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(926</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(517</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Cash and cash equivalents at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">23,687</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">16,813</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents at end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">22,761</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">16,296</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Supplemental disclosure of cash flow information:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-align: center; color: Red"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">The accompanying notes are an integral
  part of these financial statements.</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
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  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS TOTAL RETURN, INC. </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U><A NAME="a_006"></A>SUPPLEMENTAL INFORMATION&mdash;SELECTED PER
  SHARE DATA AND RATIOS </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended March 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 64%; text-align: left">Investment income (loss), net</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">(0.01</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">0.02</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.06</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.07</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Net investment loss</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.07</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.05</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Net realized gain (loss)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Net change in unrealized depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Net decrease in net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.14</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.05</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Net assets at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3.11</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3.61</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net assets at end of period, basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.97</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.56</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>Weighted average number of shares outstanding during period,</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">in thousands</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>Market price per share:</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Beginning of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.36</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.24</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">End of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.16</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.27</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Selected information and ratios:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Ratio of expenses to average net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.10</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.91</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0; padding-left: 10pt">Ratio of net investment loss to average net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.40</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.31</TD><TD STYLE="text-align: left">%)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Ratio of net decrease in net assets resulting from operations to average net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.54</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.31</TD><TD STYLE="text-align: left">%)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Total return on market price <FONT STYLE="font: normal 10pt Times New Roman, Times, Serif; color: windowtext"><SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.47</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.34</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Sans-Serif; color: Red"></FONT></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 9pt 0 0"><FONT STYLE="font-size: 7pt"><SUP>(1)</SUP></FONT><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;Total
  return = [(ending market price per share - beginning price per share) / beginning market price per share</FONT><FONT STYLE="font-size: 9pt">].</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">The accompanying notes are an integral
  part of these financial statements.</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
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  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_007"></A>SCHEDULE OF INVESTMENTS </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>March 31, 2013 </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited) </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; background-color: White; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 1pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 1pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 1pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 1pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 1pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 1pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">Name&nbsp;and&nbsp;Location&nbsp;of&nbsp;</FONT></TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;Date&nbsp;of&nbsp;Initial&nbsp;</FONT></TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;Cost of&nbsp;</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;Fair&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; text-align: left">
      <TD STYLE="font-weight: bold; text-decoration: underline"><FONT STYLE="font-size: 7pt">Portfolio&nbsp;Company&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;Industry&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;Investment&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;Investment&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;Principal&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;Investment&nbsp;</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-decoration: none; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"><U>Value
      </U><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-variant: normal; color: windowtext"><B><SUP>(1)</SUP></B></FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD COLSPAN="6" STYLE="font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Control
      Investments:&nbsp;&nbsp;Majority-owned <SUP>(3)</SUP>:&nbsp;</FONT></TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">Equus Energy, LLC <BR>
      Houston, TX</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Energy&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">December 2011<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Member interest (100%)&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD STYLE="text-align: right; border-top-color: windowtext; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,050<BR>
      &nbsp;</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top-color: windowtext; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,623</FONT><BR>
  <FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
  </TR>
  <TR STYLE="background-color: White">
      <TD STYLE="text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">Equus Media Development Company, LLC<BR>
      Houston, TX</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">Media&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;January 2007&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">Member interest (100%)&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,000<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;<BR>
      &nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;146<BR>
      &nbsp;</FONT></TD>
  </TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Spectrum Management, LLC Carrolton,
      TX</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Business products and services&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;December&nbsp;1999&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">285,000 units of Class&nbsp;A member interest (92.1%/82.5% fully diluted)&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,850</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">16% subordinated promissory notes due 11/11  <SUP>(5)</SUP>&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,669</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,669</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,519</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124</FONT></TD></TR>
  <TR>
      <TD COLSPAN="4" STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Total
      Control Investments: Majority-owned (represents 79.9% of total investments at fair value)&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;15,569</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;6,893</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">Affiliate Investments <SUP>(4)</SUP>:&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD><FONT STYLE="font-size: 7pt">PalletOne, Inc&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
  Bartow, FL</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Shipping products and services&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;October 2001&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">350,000&nbsp;shares&nbsp;of&nbsp;common stock (18.70%)&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top-color: windowtext; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top-color: windowtext; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Total
      Affiliate Investments (represents 1.7% of total investments at fair value)&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">Non-Affiliate Investments
      (less than 5% owned):</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">The Bradshaw Group Richardson, TX</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Business products and services</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">May 2000</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">576,828&nbsp;Class&nbsp;B&nbsp;shares&nbsp;(12.25%)
      preferred     stock</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,795</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">38,750 Class C shares preferred stock</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">788,649 Class D shares 15% preferred stock</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">2,218,109 Class E shares 8% preferred stock</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 12pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 12pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 12pt; vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Warrant to buy 2,229,450 shares of common stock through 5/16</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 12pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 12pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 12pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 12pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">1,795</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top-color: windowtext; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="border-top: Black 1pt solid"><FONT STYLE="font-size: 7pt">Infinia Corporation&nbsp;&nbsp;<BR>
  Ogden, UT</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Alternative energy</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">June 2007</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">115,180 shares common stock (0.06%)</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">8,000</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR>
      <TD STYLE="font-size: 4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; vertical-align: top; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Option to purchase 16,000 shares of common stock at $6.50 per
      share through 12/12</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top-color: windowtext; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">8,000</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="border-top: Black 1pt solid"><FONT STYLE="font-size: 7pt">Orco Property Group&nbsp;&nbsp;&nbsp;<BR>
  Paris,
      France</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Real estate</FONT></TD>
      <TD STYLE="text-align: center; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">April 2011</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">73,666 shares common stock</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">125</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">202</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">10% Promissory note due <BR>
  2/2018 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal; font-variant: normal; color: windowtext"><SUP>(2)</SUP></FONT></FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;696</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;696</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">1,380</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="font-size: 4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">821</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,582</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="border-top: Black 1pt solid"><FONT STYLE="font-size: 7pt">Trulite, Inc.&nbsp;&nbsp;&nbsp;&nbsp;<BR>
  Columbia,
      SC</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Alternative energy</FONT></TD>
      <TD STYLE="text-align: center; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">August 2008</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Warrants to buy 8,934,211 shares
      of common stock at $0.01 - $0.38 per share through 11/15</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">Total
      Non-Affiliate Investments (represents 18.4% of total investments at fair value)</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;10,616</FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,582</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">Total Investment in Portfolio Securities</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;26,535</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;8,625</FONT></TD></TR>
  </TABLE>
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><SUP></SUP></P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 18.35pt"><SUP>(1)</SUP></TD>
      <TD>See Note 3 to the financial statements, Valuation
  of Investments.</TD>
  </TR>
  </TABLE>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(2)</SUP></TD><TD>Income-producing.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(3)</SUP></TD><TD>Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more
  than 50% of the voting securities of the company.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(4)</SUP></TD><TD>Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least
  5% but not more than 25% voting securities of the company.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(5)</SUP></TD><TD>Non-income producing.</TD></TR></TABLE>
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">The accompanying notes are an integral
  part of these financial statements.</P>
  
  
  <!-- Field: Page; Sequence: 8 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS &ndash; (Continued)
  </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>March 31, 2013 </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited) </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Except for our holding of ordinary shares
  of Orco Property Group S.A. (&ldquo;OPG&rdquo;), substantially all of our portfolio securities are restricted from public sale
  without prior registration under the Securities Act of 1933 or other relevant foreign regulatory authority. We negotiate certain
  aspects of the method and timing of the disposition of our investment in each portfolio company, including registration rights
  and related costs.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">We may invest up to 30% of our assets
  in non-qualifying portfolio investments, as permitted by the Investment Company Act of 1940 (hereafter, the &ldquo;1940 Act&rdquo;).
  Specifically, we may invest up to 30% of our assets in entities that are not considered &ldquo;eligible portfolio companies&rdquo;
  (as defined in the 1940 Act), including companies located outside of the United States, entities that are operating pursuant to
  certain exceptions under the 1940 Act, and publicly-traded entities with a market capitalization exceeding $250 million. As of
  March 31, 2013, except for our holdings in OPG, all of our investments are in enterprises that are considered eligible portfolio
  companies under the 1940 Act, and for which we provide significant managerial assistance.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Our investments in portfolio securities
  consist of the following types of securities as of March 31, 2013 (in thousands):</P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-indent: 24.5pt; color: Red"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Type of Securities</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value as<BR>
   Percentage of</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: normal 11pt Times New Roman, Times, Serif; color: windowtext"><B>Net
                                                                                  Assets</B></FONT></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 46%; text-align: left">Limited liability company investments</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">12,900</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">6,769</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">21.6</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Secured and subordinated debt</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,365</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,504</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.8</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,475</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">352</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.1</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Preferred stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,795</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">0.0</TD><TD STYLE="text-align: left; padding-bottom: 1pt">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">26,535</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,625</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27.5</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0; text-indent: 24.5pt; color: Red"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Interest payments are being received and/or accrued on notes with
  a fair value of $1.4 million, while accrued interest has been impaired on notes receivable included in secured and subordinated
  debt with a fair value of $0.1 million.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The following is a summary by industry of
  the Fund&rsquo;s investments in portfolio securities as of March 31, 2013 (in thousands):</P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0 45pt; text-align: center; color: Red"><B></B></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value as<BR>
      Percentage of <BR>
      <FONT STYLE="font: normal 11pt Times New Roman, Times, Serif; color: windowtext"><B>Net Assets</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%">Energy</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">6,623</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">21.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Real estate</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,582</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Business products and services</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.4</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Shipping products and services</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.5</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">Media</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">146</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">0.5</TD><TD STYLE="text-align: left; padding-bottom: 1pt">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,625</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27.5</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 9pt 0 0 45pt; text-align: center; color: Red"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0 81pt; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">The accompanying notes are an integral
  part of these financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0 81pt; text-align: center">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 9 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>EQUUS
  TOTAL RETURN, INC.</B></FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_008"></A><B>SCHEDULE OF INVESTMENTS </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER&nbsp;31, 2012</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; background-color: #CCEEFF; border-collapse: collapse">
  <TR STYLE="background-color: white">
      <TD NOWRAP STYLE="width: 26%; padding-right: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 7pt"><B>Name and Location of </B></FONT></TD>
      <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 7pt"><B>Date of Initial </B></FONT></TD>
      <TD NOWRAP STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD>
      <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 7pt"><B>Cost of </B></FONT></TD>
      <TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD>
      <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 7pt"><B>Fair </B></FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD NOWRAP STYLE="padding-right: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt"><B><U>Portfolio Company </U></B></FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"><B><U>Industry </U></B></FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"><B><U>Investment </U></B></FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"><B><U>Investment </U></B></FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"><B><U>Principal </U></B></FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"><B><U>Investment </U></B></FONT></TD>
      <TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt"><B><U>Value<SUP>(</SUP></U><SUP>1)</SUP></B></FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
  <TR STYLE="background-color: white">
      <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt"><FONT STYLE="font-size: 7pt"><B>Control Investments: Majority-owned <SUP>(3)</SUP>: </B></FONT></TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Equus Energy, LLC</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Houston, TX</P></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Energy </FONT></TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7pt">December 2011</FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Member interest (100%) </FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">7,050 </FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">6,855 </FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Equus Media Development Company, LLC</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Houston, TX</P></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Media </FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7pt">January 2007 </FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Member interest (100%) </FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">3,000 </FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">146 </FONT></TD></TR>
  <TR>
      <TD STYLE="padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Spectrum Management, LLC</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Carrolton, TX</P></TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">Business products and services </FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">December 1999</FONT></TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">285,000 units of Class A member interest (92.1%/82.5% fully diluted) </FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">2,850 </FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">16% subordinated promissory notes due 11/11<SUP>(5)</SUP> </FONT></TD>
      <TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">2,579</FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">2,579 </FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">418</FONT></TD></TR>
  <TR>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">5,429 </FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">418</FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD COLSPAN="4" STYLE="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt"><FONT STYLE="font-size: 7pt"><B>Total Control Investments: Majority-owned (represents 80.4% of total investments at fair value) </B></FONT></TD>
      <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>15,479</B></FONT></TD>
      <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>7,419</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt"><B>Affiliate Investments <SUP>(4)</SUP>: </B></FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">PalletOne, Inc.</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Bartow, FL</P></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Shipping products and services </FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7pt">October 2001 </FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">350,000 shares of common stock (18.70%) </FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">350 </FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">150 </FONT></TD></TR>
  <TR>
      <TD COLSPAN="4" STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt"><B>Total Affiliate Investments (represents 1.6% of total investments at fair value) </B></FONT></TD>
      <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>350 </B></FONT></TD>
      <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>150 </B></FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt"><FONT STYLE="font-size: 7pt"><B>Non-Affiliate Investments (less than 5% owned):</B></FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">The Bradshaw Group</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Richardson, TX</P></TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">Business products and services</FONT></TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">May 2000</FONT></TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">576,828 Class B shares (12.25%)</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">preferred stock</P></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">1,795 </FONT></TD>
      <TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR>
      <TD STYLE="text-align: left; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">38,750 Class C shares preferred stock</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">788,649 Class D shares 15% preferred stock</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">2,218,109 Class E shares 8% preferred stock</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR>
      <TD STYLE="text-align: left; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top">&nbsp;</TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">Warrant to buy 2,229,450 shares of common stock through 5/16</FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">1,795</FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="border-top: black 1pt solid; padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Infinia Corporation</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Ogden, UT</P></TD>
      <TD STYLE="vertical-align: top; border-top: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Alternative energy</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; border-top: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7pt">June 2007</FONT></TD>
      <TD STYLE="border-top: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">115,180 shares common stock (0.06%)</FONT></TD>
      <TD STYLE="border-top: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-top: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-top: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">8,000</FONT></TD>
      <TD STYLE="vertical-align: top; border-top: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-top: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="text-align: left; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top">&nbsp;</TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">Option to purchase 16,000 shares of common stock at $6.50 per share through 12/12</FONT></TD>
      <TD>&nbsp;</TD>
      <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">8,000</FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Orco Property Group S.A.</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Paris, France</P></TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">Real estate</FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">April 2011</FONT></TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">73,666 shares common stock</FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">125</FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">238</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">10% Promissory note due 2/18<SUP> (2)</SUP></FONT></TD>
      <TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$ </FONT></TD>
      <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">705 </FONT></TD>
      <TD>&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">705</FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">1,425 </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">830</FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">1,663 </FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; text-align: left; vertical-align: top">
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Trulite, Inc.</P>
          <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">Columbia, SC</P></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Alternative energy</FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 7pt">August 2008</FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">Warrants to buy 8,934,211 shares of common stock at $0.01 - $0.38 per share through 11/15</FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid">&nbsp;</TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt">- </FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt"><FONT STYLE="font-size: 7pt"><B>Total Non-Affiliate Investments (represents 18.0% of total investments at fair value)</B></FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>10,625</B></FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>1,663</B></FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt"><B>Total Investment in Portfolio Securities</B></FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>26,454</B></FONT></TD>
      <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">$</FONT></TD>
      <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 7pt"><B>9,232</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 18.35pt"><SUP>(1)</SUP></TD>
      <TD>See Note 3 to the financial statements, Valuation
  of Investments.</TD>
  </TR>
  </TABLE>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(2)</SUP></TD><TD>Income-producing.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(3)</SUP></TD><TD>Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more
  than 50% of the voting securities of the company.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(4)</SUP></TD><TD>Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least
  5% but not more than 25% voting securities of the company.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 7.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 18.35pt"><SUP>(5)</SUP></TD><TD>Non-income producing.</TD></TR></TABLE>
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 18.35pt; text-align: center; text-indent: -18.35pt">The accompanying
  notes are an integral part of these financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  
  <!-- Field: Page; Sequence: 10 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>EQUUS TOTAL RETURN,
  INC.</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>SCHEDULE OF INVESTMENTS
  &ndash; (Continued)</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B>DECEMBER 31, 2012</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt"><B><I>(in thousands, except
  share data)</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Substantially all of our portfolio securities
  are restricted from public sale without prior registration under the Securities Act of 1933. We negotiate certain aspects of the
  method and timing of the disposition of our investment in each portfolio company, including registration rights and related costs.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We may invest up to 30% of our assets in non-qualifying
  portfolio investments, as permitted by the 1940 Act. Specifically, we may invest up to 30% of our assets in entities that are not
  considered &ldquo;eligible portfolio companies&rdquo; (as defined in the 1940 Act), including companies located outside of the
  United States, entities that are operating pursuant to certain exceptions under the 1940 Act, and publicly-traded entities with
  a market capitalization exceeding $250 million. As of December 31, 2012, except for our holdings in OPG, all of our investments
  are in enterprises that are considered eligible portfolio companies under the 1940 Act, and for which we provide significant managerial
  assistance.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our investments in portfolio securities consist
  of the following types of securities as of December 31, 2012 (in thousands):</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 9pt"><B>Type of Securities</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 9pt"><B>Cost</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 9pt"><B>Fair Value</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid">
          <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Fair Value as Percentage of</B></P>
          <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Net Assets</B></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="width: 46%; padding-left: 0; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">Limited liability company investments</FONT></TD>
      <TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">12,900</FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">7,001</FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">21.3</FONT></TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Secured and subordinated debt</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">3,284</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1,843</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">5.6</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Common stock</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">8,475</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">388</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1.2</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Preferred stock</FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1,795</FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">0.0</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Total</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">26,454</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">9,232</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">28.1</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Interest payments are being received and/or
  accrued on notes with a fair value of $1.4 million, while accrued interest has been impaired on notes receivable included in secured
  and subordinated debt with a fair value of $0.4 million.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following is a summary by industry of our
  investments in portfolio securities as of December 31, 2012 (in thousands):</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 9pt"><B>Industry</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 9pt"><B>Fair Value</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 9pt"><B>Fair Value as Percentage of <BR>
  Net Assets</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0; width: 58%"><FONT STYLE="font-size: 9pt">Energy</FONT></TD>
      <TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">6,855</FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">20.8</FONT></TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Real estate</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1,663</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">5.1</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Business products and services</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">418</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1.3</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Shipping products and services</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">150</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">0.5</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Media</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">146</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">0.4</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Alternative energy</FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">0.0</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Total</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">9,232</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">28.1</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">%</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral part
  of these financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 11 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS TOTAL RETURN, INC.</U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U><A NAME="a_009"></A>NOTES TO FINANCIAL STATEMENTS </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>March 31, 2013 </U></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Unaudited)</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(1)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Description of Business and Basis of Presentation </U></B></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Description of Business</B>&mdash; Equus
  Total Return, Inc. (<FONT STYLE="color: black"><I>&ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus,&rdquo; the
  &ldquo;Company,&rdquo; and the &ldquo;Fund</I></FONT>&rdquo;), a Delaware corporation, was formed by Equus Investments II, L.P.
  (the &ldquo;Partnership&rdquo;) on August 16, 1991. On July 1, 1992, the Partnership was reorganized and all of the assets and
  liabilities of the Partnership were transferred to the Fund in exchange for shares of common stock of the Fund. Our shares trade
  on the New York Stock Exchange under the symbol &lsquo;EQS&rsquo;. On August 11, 2006, our shareholders approved a change of the
  Fund&rsquo;s investment strategy to a total return investment objective. This new strategy seeks to provide the highest total return,
  consisting of capital appreciation and current income. In connection with this strategic investment change, the shareholders also
  approved the change of name from Equus II Incorporated to Equus Total Return, Inc.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We attempt to maximize the return to stockholders
  in the form of current investment income and long-term capital gains by investing in the debt and equity securities of companies
  with a total enterprise value of between $5.0 million and $75.0 million, although we may engage in transactions with smaller or
  larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through acquisition
  or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations. Our income-producing
  investments consist principally of debt securities including subordinate debt, debt convertible into common or preferred stock,
  or debt combined with warrants and common and preferred stock. <FONT STYLE="color: black">Debt and preferred equity financing may
  also be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with the
  financing. </FONT>We seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued
  by privately-owned companies in transactions negotiated directly with such companies.<FONT STYLE="color: black"> Given market conditions
  over the past several years and the performance of our portfolio, our management and Board of Directors believe it is prudent to
  continue to review alternatives to refine and further clarify the current strategies.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We elected to be treated as a Business Development
  Company (&ldquo;BDC&rdquo;) under the Investment Company Act of 1940 (&ldquo;1940 Act&rdquo;). We currently qualify as a regulated
  investment company (&ldquo;RIC&rdquo;) for federal income tax purposes and, therefore, are not required to pay corporate income
  taxes on any income or gains that we distribute to our stockholders. We have certain wholly owned taxable subsidiaries (&ldquo;Taxable
  Subsidiaries&rdquo;) each of which holds one or more portfolio investments listed on our Schedules of Investments. The purpose
  of these Taxable Subsidiaries is to permit us to hold certain income-producing investments or portfolio companies organized as
  limited liability companies, or LLCs, (or other forms of pass-through entities) and still satisfy the RIC tax requirement that
  at least 90% of our gross revenue for income tax purposes must consist of investment income. Absent the Taxable Subsidiaries, a
  portion of the gross income of these income-producing investments or of any LLC (or other pass-through entity) portfolio investment,
  as the case may be, would flow through directly to us for the 90% test. To the extent that such income did not consist of investment
  income, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant federal income taxes.
  The income of the LLCs (or other pass-through entities) owned by Taxable Subsidiaries is taxed to the Taxable Subsidiaries and
  does not flow through to us, thereby helping us preserve our RIC status and resultant tax advantages. We do not consolidate the
  Taxable Subsidiaries for income tax purposes and they may generate income tax expense because of the Taxable Subsidiaries&rsquo;
  ownership of the portfolio investments. We reflect any such income tax expense on our Statements of Operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><B>Basis of Presentation</B>&mdash;In accordance
  with Article 6 of Regulation S-X under the Securities Act of 1933 and Securities Exchange Act of 1934, we do not consolidate portfolio
  company investments, including those in which we have a controlling interest. Our interim unaudited financial statements were prepared
  in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information
  and in accordance with the requirements of reporting on Form 10-Q and Article 10 of Regulation S-X, under the Securities Exchange
  Act of 1934, as amended. Accordingly, they are unaudited and exclude some disclosures required for annual financial statements.
  Management believes it has made all adjustments, consisting solely of normal recurring accruals, necessary for the fair presentation
  of these interim financial statements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The results of operations for the three months
  ended March 31, 2013 are not necessarily indicative of results that ultimately may be achieved for the year. The interim unaudited
  financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in
  the Fund&rsquo;s Form 10-K for the fiscal year ended December&nbsp;31, 2012, as filed with the Securities and Exchange Commission
  (&ldquo;SEC&rdquo;).</P>
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(2)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Liquidity and Financing Arrangements </U></B></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Liquidity</B>&mdash;There are several factors
  that may materially affect our liquidity during the reasonably foreseeable future. We view this period as the twelve month period
  from the date of the financial statements in this Form 10-Q, <I>i.e</I>., the period through March 31, 2014.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We are evaluating the impact of current market
  conditions on our portfolio company valuations and their ability to provide current income. We have followed valuation techniques
  in a consistent manner; however, we are cognizant of current market conditions that might affect future valuations of portfolio
  securities. We believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements and to finance
  routine capital expenditures through the next twelve months. &nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Cash and Cash Equivalents</B>&mdash;As of
  March 31, 2013, we had cash and cash equivalents of $22.8 million. We had $8.6 million of our net assets of $31.4 million invested
  in portfolio securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2012, we had cash and cash
  equivalents of $23.7 million. We had $9.2 million of our net assets of $32.9 million invested in portfolio securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Dividends</B>&mdash; We will pay out net
  investment income and/or realized capital gains, if any, on an annual basis as required under the 1940 Act.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Investment Commitments</B>&mdash;As of March
  31, 2013, we had no outstanding commitments to our portfolio company investments.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Under certain circumstances, we may be called
  on to make follow-on investments in certain portfolio companies. If we do not have sufficient funds to make follow-on investments,
  the portfolio company in need of the investment may be negatively impacted. Also, our equity interest in the estimated fair value
  of the portfolio company could be reduced.</P>
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>RIC Borrowings, Restricted Cash and Temporary
  Cash Investments</B>&mdash;We may periodically borrow sufficient funds to maintain the Fund&rsquo;s RIC status by utilizing a margin
  account with a securities brokerage firm. There is no assurance that such arrangement will be available in the future. If we are
  unable to borrow funds to make qualifying investments, we may no longer qualify as a RIC. We would then be subject to corporate
  income tax on the Fund&rsquo;s net investment income and realized capital gains, and distributions to stockholders would be subject
  to income tax as ordinary dividends. Failure to continue to qualify as a RIC could be materially adverse to us and our stockholders.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We had no RIC borrowings or restricted cash
  as of March 31, 2013 and December 31, 2012, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Certain Risks and Uncertainties</B>&mdash;
  Economic conditions since 2008 and resulting market dislocations have resulted in a significant decline in the availability of
  debt and equity. Generally, the limited amount of available debt financing has shorter maturities, higher interest rates and fees,
  and more restrictive terms than debt facilities available in the past. In addition, during these years and continuing into the
  first three months of 2013, the price of our common stock continued to fall well below our net asset value, thereby making it undesirable
  to issue additional shares of our common stock. Because of these challenges, our near-term strategies shifted from originating
  debt and equity investments to preserving liquidity necessary to meet our operational needs. Key initiatives that we have previously
  undertaken to provide necessary liquidity include monetizations, the suspension of dividends and the internalization of management.
  Although we cannot assure you that such initiatives will be sufficient, we believe we have sufficient liquidity to meet our 2013
  operating requirements.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(3)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Significant Accounting Policies </U></B></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following is a summary of significant accounting
  policies followed by the Fund in the preparation of its financial statements:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Use of Estimates</B>&mdash;The preparation
  of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts
  and disclosures in the financial statements. Although we believe the estimates and assumptions used in preparing these financial
  statements and related notes are reasonable in light of known facts and circumstances, actual results could differ from those estimates.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Valuation of Investments</B>&mdash;Portfolio
  investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the determination
  of net assets. Valuations of portfolio securities are performed in accordance with accounting principles generally accepted in
  the United States of America and the financial reporting policies of the SEC. The applicable methods prescribed by such principles
  and policies are described below:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Publicly-traded portfolio securities</I>&mdash;Investments
  in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
  the valuation date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Privately-held portfolio securities</I>&mdash;The
  fair value of investments for which no market exists is determined on the basis of procedures established in good faith by our
  Board of Directors. As a general principle, the current &ldquo;fair value&rdquo; of an investment would be the amount we might
  reasonably expect to receive for it upon its current sale, in an orderly manner. Appraisal valuations are necessarily subjective
  and the estimated values arrived at by the Fund may differ materially from amounts actually received upon the disposition of portfolio
  securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Thinly Traded and Over-the-Counter Securities</I>&mdash;Generally,
  we value securities that are traded in the over-the-counter market or on a stock exchange at the average of the prevailing bid
  and ask prices on the date of the relevant period end. However, we may apply a discount to the market value of restricted or thinly
  traded public securities to reflect the impact that these restrictions have on the value of these securities. We review factors,
  including the trading volume, total securities outstanding and our percentage ownership of securities to determine whether the
  trading levels are active (Level 1) or inactive (Level 2) or unobservable (Level 3). These types of securities represented 16.0%
  and 15.4% of our investments in portfolio securities as of March 31, 2013 and December 31, 2012, respectively. We utilized independent
  pricing services with certain of our fair value estimates. To corroborate &ldquo;bid/ask&rdquo; quotes from independent pricing
  services, we perform a market-yield approach to validate prices obtained or obtain other evidence.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the first twelve months after an investment
  is made, the original investment value is utilized to determine the fair value unless significant developments have occurred during
  this twelve month period which would indicate a material effect on the portfolio company (such as results of operations or changes
  in general market conditions). After the twelve month period, or if material events have occurred within the twelve month period,
  we consider a two-step process when appraising investments of privately held companies. The first step involves determining the
  enterprise value of the portfolio company. During this step, we consider three different valuation approaches: a market approach,
  an income approach, and an asset approach. The particular facts and circumstances of each portfolio company determine which approach,
  or combination of approaches, will be utilized. The second step when appraising equity investments of privately held companies
  involves allocating value to the various debt and equity securities of the company. We allocate value to these securities based
  on their relative priorities. For equity securities such as warrants, we may also incorporate alternative methodologies including
  the Black-Scholes Option Pricing Model.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Market approach</B>&mdash;The market approach
  typically employed by our management calculates the enterprise value of a company as&nbsp;a multiple of earnings before interest,
  taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;) generated by the company for the trailing twelve month period.&nbsp;
  Adjustments to the company&rsquo;s EBITDA, including those for non-recurring items, may be considered. Multiples are estimated
  based on current market conditions and past experience in the private company marketplace and are subjective in nature. We will
  apply liquidity and other discounts it deems appropriate to equity valuations where applicable. We may also use, when available,
  third-party transactions in a portfolio company&rsquo;s securities as the basis of valuation (the &ldquo;private market method&rdquo;).
  The private market method will be used only with respect to completed transactions or firm offers made by sophisticated, independent
  investors.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Income approach</B>&mdash;The income approach
  typically utilized by our management calculates the enterprise value of a company utilizing a discounted cash flow model incorporating
  projected future cash flows of the company.&nbsp; Projected future cash flows consider the historical performance of the company
  as well as current and projected market participant performance. Discount rates are estimated based on current market conditions
  and past experience in the private company marketplace and are subjective in nature. We will apply liquidity and other discounts
  we deem appropriate to equity valuations where applicable.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Asset approach</B>&mdash;We consider the
  asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances indicative of
  a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow to meet the principal
  and interest payments on its indebtedness; 2) is not successful in refinancing its debt upon&nbsp;maturity; 3) we believe the credit
  quality of a loan has deteriorated due to changes in the business and underlying asset or market conditions which may result in
  the company&rsquo;s inability to meet future obligations; or 4) the portfolio company&rsquo;s reorganization or bankruptcy. Consideration
  is also given as to whether a liquidation event would be orderly or forced.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We base adjustments upon such factors as the
  portfolio company&rsquo;s earnings, cash flow and net worth, the market prices for similar securities of comparable companies,
  an assessment of the company&rsquo;s current and future financial prospects and various other factors and assumptions. In the case
  of unsuccessful operations, we may base a portfolio company&rsquo;s fair value upon the company&rsquo;s estimated liquidation value.
  Fair valuations are necessarily subjective, and management&rsquo;s estimate of fair value may differ materially from amounts actually
  received upon the disposition of its portfolio securities. Also, any failure by a portfolio company to achieve its business plan
  or obtain and maintain its financing arrangements could result in increased volatility and result in a significant and rapid change
  in its value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our general intent is to hold our loans to
  maturity when appraising our privately held debt investments. As such, we believe that the fair value will not exceed the cost
  of the investment. However, in addition to the previously described analysis involving allocation of value to the debt instrument,
  we perform a yield analysis to determine if a debt security has been impaired.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Audit Committee of the Board of Directors
  may engage independent, third-party valuation firms to conduct independent appraisals and review management&rsquo;s preliminary
  valuations of each privately-held investment in order to make their own independent assessment. Any third-party valuation data
  would be considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair values
  for all privately-held securities based on all relevant factors to the Board of Directors for final approval.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Because of the inherent uncertainty of the
  valuation of portfolio securities which do not have readily ascertainable market values, amounting to $8.4 million and $9.0 million
  as of March 31, 2013 and December 31, 2012, respectively, our fair value determinations may materially differ from the values that
  would have been used had a ready market existed for the securities. As of March 31, 2013 and December 31, 2012 respectively, one
  of the Fund&rsquo;s portfolio investments, the 73,666 ordinary shares of Orco Property Group, S.A. (&ldquo;OPG&rdquo;), was publicly
  listed on the NYSE Euronext Paris Exchange.<FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif"> </FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On a daily basis, we adjust our net asset value
  for the changes in the value of our publicly held securities, if applicable, and material changes in the value of private securities,
  generally determined on a quarterly basis or as announced in a press release, and reports those amounts to Lipper Analytical Services,
  Inc. Weekly and daily net asset values appear in various publications, including <I>Barron&rsquo;s </I>and <I>The Wall Street Journal</I>.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Foreign Exchange</B>&mdash;We record temporary
  changes in foreign exchange rates of portfolio securities denominated in foreign currencies as changes in fair value. These changes
  are therefore reflected as unrealized gains or losses until realized.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Investment Transactions</B>&mdash;Investment
  transactions are recorded on the accrual method. Realized gains and losses on investments sold are computed on a specific identification
  basis.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We classify our investments in accordance with
  the requirements of the 1940 Act. Under the 1940 Act, &ldquo;Control Investments&rdquo; are defined as investments in companies
  in which we own more than 25% of the voting securities or maintain greater than 50% representation on the portfolio company&rsquo;s
  governing board. Under the 1940 Act, &ldquo;Affiliate Investments&rdquo; are defined as those non-control investments in companies
  in which we own between 5% and 25% of the voting securities. Under the 1940 Act, &ldquo;Non-affiliate Investments&rdquo; are defined
  as investments that are neither Control Investments nor Affiliate Investments.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Interest Income Recognition</B>&mdash;We
  record interest income, adjusted for amortization of premium and accretion of discount, on an accrual basis to the extent that
  we expect to collect such amounts. We stop accruing interest on investments when we determine that interest is no longer collectible.
  We may also impair the accrued interest when we determine that all or a portion of the current accrual is uncollectible. If we
  receive any cash after determining that interest is no longer collectible, we treat such cash as payment on the principal balance
  until the entire principal balance has been repaid, before we recognize any additional interest income. We accrete or amortize
  discounts and premiums on securities purchased over the life of the respective security using the effective yield method. The amortized
  cost of investments represents the original cost adjusted for the accretion of discount and/or amortization of premium on debt
  securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Payment in Kind Interest (PIK)</B>&mdash;We
  have loans in our portfolio that may pay PIK interest. We add PIK interest, if any, computed at the contractual rate specified
  in each loan agreement, to the principal balance of the loan and record it as interest income. To maintain our status as a RIC,
  we must pay out to stockholders this non-cash source of income in the form of dividends even if we have not yet collected any cash
  in respect of such investments.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Cash Flows</B>&mdash;For purposes of the
  Statements of Cash Flows, we consider all highly liquid temporary cash investments purchased with an original maturity of three
  months or less to be cash equivalents. We include our investing activities within cash flows from operations. We exclude &ldquo;Restricted
  Cash&nbsp;&amp; Temporary Cash Investments&rdquo; used for purposes of complying with RIC requirements from cash equivalents. See
  Note 2 for further discussion of the Fund&rsquo;s RIC borrowings.</P>
  
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Income Taxes</B>&mdash;We intend to comply
  with the requirements of the Internal Revenue Code necessary for us to qualify as a RIC. So long as we comply with these requirements,
  we generally will not be subject to corporate-level federal income taxes on otherwise taxable income (including net realized capital
  gains) distributed to stockholders. Therefore, we did not record a provision for federal income taxes in our financial statements.
  We borrow money from time to time to maintain our tax status under the Internal Revenue Code as a RIC. See Note 2 for further
  discussion of our RIC borrowings.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">All corporations incorporated in the
  State of Delaware are required to file an Annual Report and to pay a franchise tax. As a result, we paid Delaware Franchise tax
  in the amount of $0.01 million, for the year ended December 31, 2012.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Texas margin tax applies to legal entities
  conducting business in Texas. The margin tax is based on our Texas sourced taxable margin. The tax is calculated by applying a
  tax rate to a base that considers both revenue and expenses and therefore has the characteristics of an income tax. As a result,
  we did not owe state income tax for the year ended December 31, 2012.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Fair Value Measurement</B>&mdash;Fair value
  is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
  market participants at the measurement date. We have categorized all investments recorded at fair value based upon the level of
  judgment associated with the inputs used to measure their fair value. Hierarchical levels, directly related to the amount of subjectivity
  associated with the inputs to fair valuation of these assets and liabilities, are as follows:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Level 1&mdash;Inputs are unadjusted, quoted
  prices in active markets for identical assets at the measurement date. The types of assets carried at Level 1 fair value generally
  are equities listed in active markets.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Level 2&mdash;Inputs (other than quoted prices
  included in Level 1) are either directly or indirectly observable for the asset in connection with market data at the measurement
  date and for the extent of the instrument&rsquo;s anticipated life. Fair valued assets that are generally included in this category
  are warrants held in a public company.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Level 3&mdash;Inputs reflect our best estimate
  of what market participants would use in pricing the asset at the measurement date. It includes prices or valuations that require
  inputs that are both significant to the fair value measurement and unobservable. Generally, assets carried at fair value and included
  in this category are debt, warrants and/or other equity investments held in a private company. As previously described, we consider
  a two step process when appraising investments of privately held companies. The first step involves determining the enterprise
  value of the portfolio company. During this step, we consider three different valuation approaches: a market approach, an income
  approach, and a cost approach. The particular facts and circumstances of each portfolio company determine which approach, or combination
  of approaches, will be utilized. The second step when appraising equity investments of privately held companies involves allocating
  value to the various debt and equity securities of the company. We allocate value to these securities based on their relative priorities.
  For equity securities such as warrants, we may also incorporate alternative methodologies including the Black-Scholes Option Pricing
  Model. Yield analysis is also employed to determine if a debt security has been impaired.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We will record unrealized depreciation on investments
  when we determine that the fair value of a security is less than its cost basis, and will record unrealized appreciation when we
  determine that the fair value is greater than its cost basis.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of March 31, 2013, investments measured
  at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input to the valuations:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="11" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements as of March 31, 2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Quoted Prices in <BR>
  Active Markets for <BR>
  Identical Assets<BR>
   (Level 1)</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Significant
      Other<BR>  Observable Inputs <BR> (Level 2)</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Significant<BR>
   Unobservable<BR>
   Inputs <BR>
  (Level 3)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>Assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;&nbsp;Investments:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 45%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">6,893</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">6,893</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,582</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">202</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,380</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total investments</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,625</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">202</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,423</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-indent: 4.5pt; color: Red"></P>
  
  
  <!-- Field: Page; Sequence: 16 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2012, investments measured
  at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input to the valuations:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Fair
      Value Measurements As of December 31, 2012</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt"><B><I>(in
      thousands)</I></B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Total</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Quoted
      Prices in</B><BR>
      <B>Active Markets for</B><BR>
      <B>Identical Assets</B><BR>
      <B>(Level 1)</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Significant
      Other</B><BR>
      <B>Observable Inputs</B><BR>
      <B>(Level 2)</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Significant</B><BR>
      <B>Unobservable</B><BR>
      <B>Inputs </B><BR>
      <B>(Level 3)</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Assets</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">&nbsp;&nbsp;Investments:</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0; width: 45%"><FONT STYLE="font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">7,419</FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 11%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">7,419</FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">150</FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">150</FONT></TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt"></FONT></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1,663</FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">238</FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif"></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif"></TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1,425</FONT></TD>
      <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-left: 0"><FONT STYLE="font-size: 9pt">Total investments</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">9,232</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">238</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: right"><FONT STYLE="font-size: 9pt">&mdash; </FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">8,994</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table provides a reconciliation
  of fair value changes during the three months ended March 31, 2013 for all investments for which we determine fair value using
  unobservable (Level 3) factors:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 9pt/110% Sans-Serif; margin: 0; color: Red"><B></B></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="15" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair value measurements using significant unobservable inputs (Level 3)</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Control Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 40%"><FONT STYLE="font-size: 9pt">Fair value as of December&nbsp;31, 2012</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">7,419</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">150</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">1,425</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">8,994</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">Change in unrealized appreciation (depreciation)</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">(616</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">(36</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">(652</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">Purchases of portfolio securities</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">90</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">90</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">Proceeds from sales/dispositions</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">(9</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">(9</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">Fair value as of March 31, 2013</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">6,893</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">150</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">1,380</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">8,423</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt/110% Sans-Serif; margin: 0; color: Red"><B></B></P>
  
  <P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table provides a reconciliation
  of fair value changes during the three months ended March 31, 2012 for all investments for which we determine fair value using
  unobservable (Level 3) factors:</P>
  
  <P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD COLSPAN="15" STYLE="border-bottom: black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Fair value measurements using significant unobservable inputs (Level 3)</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt"><B><I>(in thousands)</I></B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Control Investments</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Affiliate Investments</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Non-affiliate Investments</B></FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt"><B>Total</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="width: 40%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">Fair value as of December&nbsp;31, 2011</FONT></TD>
      <TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">13,298</FONT></TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">150</FONT></TD>
      <TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">5,734</FONT></TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 3%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">19,182</FONT></TD>
      <TD STYLE="width: 1%; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">Change in unrealized appreciation (depreciation)</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">(13</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">)</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">14</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">1</FONT></TD>
      <TD STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">Proceeds from sales/dispositions</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">(70</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">)</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">(70</FONT></TD>
      <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">Fair value as of March 31, 2012</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">13,215</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">150</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">5,748</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 9pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 9pt">19,113</FONT></TD>
      <TD STYLE="padding-bottom: 2.5pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  </TABLE>
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Significant Unobservable Inputs</B> &mdash;
  Our investment portfolio is not composed of homogeneous debt and equity securities that can be valued with a small number of inputs.
  Instead, the majority of our investment portfolio is composed of complex debt and equity securities with distinct contract terms
  and conditions. As such, our valuation of each investment in our portfolio is unique and complex, often factoring in numerous different
  inputs, including historical and forecasted financial and operational performance of the portfolio company, project cash flows,
  market multiples comparable market transactions, the priority of our securities compared with those of other investors, credit
  risk, interest rates, independent valuations and reviews and other inputs.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The following table summarizes the significant
  observable inputs in the fair value measurements of our level 3 investments by category of investment and valuation technique as
  of March 31, 2013:</P>
  
  
  <!-- Field: Page; Sequence: 17 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-indent: 24.5pt; color: Red"><B></B></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD>&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Range</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Valuation Techniques</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Unobservable Inputs</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Minimum</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maximum</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 31%; text-align: left">Secured and subordinated debt</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">1,504</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 15%; text-align: center">Yield Analysis</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 25%; text-align: center">Market interest rate</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
      <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-size: 8pt; text-align: right">5.4</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
      <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-size: 8pt; text-align: right">12.4</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">Pending Transaction</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">Discount for lack of marketability</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">5</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">15</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">Asset Approach</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">Recovery rate</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">0</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">100</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">Pending Transaction</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">Discount</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">0</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">100</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Limited liability company investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,769</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: center; padding-bottom: 1pt">Asset Approach</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: center; padding-bottom: 1pt">Recovery rate</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">0</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">100</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,423</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt Sans-Serif; margin: 0; text-indent: 24.5pt; color: Red"><B></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(4)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Related Party Transactions and Agreements </U></B></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Except as noted below, as compensation for
  services to the Fund, each Independent Director receives an annual fee of $20,000 paid quarterly in arrears, a fee of $2,000 for
  each meeting of the Board of Directors attended in person, a fee of $1,000 for participation in each telephonic meeting of the
  Board and a fee of $1,000 for each committee meeting attended, and reimbursement of all out-of-pocket expenses relating to attendance
  at such meetings. A quarterly fee of $15,000 is paid to the Chairman of the Audit Committee and a quarterly fee of $3,750 is paid
  to the Chairman of the Independent Directors. We may also pay other one-time or recurring fees to members of our Board of Directors
  in special circumstances. None of our interested directors receive annual fees for their service on the Board of Directors.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In November, 2011, Equus Energy, LLC, a wholly-owned
  subsidiary of the Fund, entered into a consulting agreement with Global Energy Associates, LLC (&ldquo;Global Energy&rdquo;) to
  provide consulting services for energy related investments. Henry W. Hankinson, Director, is a managing partner and co-founder
  of Global Energy. Payments to Global Energy totaled $18,750 for each of the three months ended March 31, 2013 and 2012.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In respect of services provided to the Fund
  by members of the Board not in connection with their roles and duties as directors, the Fund pays a rate of $250 per hour for services
  rendered.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(5)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Dividends</U> </B></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We will pay out net investment income and/or
  realized capital gains, if any, on an annual basis as required under the 1940 Act.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(6)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Portfolio Securities </U></B></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the three months ended March 31,
  2013, we capitalized legal and consulting expenses of $0.1 million relating to Spectrum Management. We also received a
  semi-annual interest payment of $0.03 million and a 5.75% partial principal repayment of $9,000 in respect of our &euro;1.2
  million [$1.5 million] in OPG notes.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the three months ended March 31, 2013,
  we did not realize any significant gains or losses on sales of portfolio securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Net unrealized depreciation on investments
  increased $0.7 million during the three months ended March 31, 2013, to a net unrealized depreciation of $17.9 million.&nbsp; Such
  decrease in unrealized depreciation is largely due to the following changes:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Decrease in fair value of Equus Energy LLC of $0.2 million due to operating expenses<FONT STYLE="color: black">.</FONT></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD><TD><FONT STYLE="font-size: 10pt; color: black">Decrease in fair value of OPG of $0.1 million due to a decline in stock price and
  foreign exchange translation.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD><TD><FONT STYLE="font-size: 10pt; color: black">Decrease in fair value of Spectrum Management, Inc. (&ldquo;Spectrum&rdquo;) of
  $0.4 million due to adecline in operating performance.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the three months ended March 31, 2012,
  we made no follow-on investments, nor realized any significant gains or losses on sales of portfolio securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 18 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Net unrealized depreciation on investments
  remained relatively unchanged during the three months ended March 31, 2012, at a net unrealized depreciation of $17.4 million.
  Such decrease in depreciation is largely due to the following changes:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 8.5pt">(i)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Increase in fair market value of ConGlobal Industries Holding, Inc. (&ldquo;ConGlobal&rdquo;)
  of $0.3 million due to improved productivity.</FONT></TD></TR></TABLE>
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 8.5pt">(ii)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Decrease in the fair market value of Spectrum of $0.2 million due to the continued decline in
  operating performance and liquidity issues.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
  <TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(7)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Equus Energy</U></B></FONT></TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"></P>
  
  <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt"></FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">Equus Energy, LLC (&ldquo;Equus
  Energy&rdquo;) was formed in November 2011 as a wholly-owned subsidiary of the Fund to make investments in companies in the
  energy sector, with particular emphasis on income-producing oil &amp; gas properties. In December 2011, we contributed
  $250,000 to the capital of Equus Energy. <FONT STYLE="color: black">On December 27, 2012 we invested an additional $6.8
  million in Equus Energy for the purpose of additional working capital and to fund the purchase of $6.6 million in working
  interests in 150 producing and non-producing oil and gas wells. The working interests include associated development rights of approximately 23,000 acres situated on 15
  separate properties in Texas and Oklahoma. The working interests range from a <I>de minimus</I> amount to 50% of the
  leasehold that includes these wells.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="color: black">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">The wells are operated by a number of experienced
  operators, including a major multinational oil and gas conglomerate which has operating responsibility for all of Equus Energy&rsquo;s
  40 producing well interests located in the Conger Field, a productive oil and gas field on the edge of the Permian Basin that
  has experienced successful gas and hydrocarbon extraction in multiple formations. Equus Energy, which holds a 50% working interest
  in each of these Conger Field wells, has partnered with the operator in an aggressive recompletion program of existing Conger
  Field wells to the Wolfcamp formation, a zone containing oil as well as gas and natural gas liquids. One recompletion has been
  effected since the closing date of the acquisition, with additional recompletions scheduled for the remainder of 2013 and beyond.
  Part of Equus Energy&rsquo;s acreage rights described above also includes a 50% working interest in possible new drilling to the
  base of the Canyon formation (appx. 8,500 feet) on 2,400 acres in the Conger Field. Also included in the interests acquired by
  Equus Energy are working interests of 7.5% and 2.5% in the Burnell and North Pettus Units, respectively, which collectively comprise
  approximately 13,000 acres are located in the area known as the &ldquo;Eagle Ford Shale&rdquo; play.</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt"><FONT STYLE="color: black"></FONT></FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt"><FONT STYLE="color: black">&nbsp;</FONT></FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">We do
  not consolidate Equus Energy  or its wholly owned subsidiaries and accordingly only the value of our investment in Equus
  Energy is included on our statement of assets and liabilities. Our investment in Equus Energy  is valued in accordance with
  our normal valuation procedures and is based on the values of the underlying assets held by EQS Energy Holdings, Inc. a
  wholly-owned subsidiary of Equus Energy, net of associated liabilities.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"></P>
  
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">Below is summarized consolidated
  financial information for Equus Energy as of March 31, 2013 and December 31, 2012 and for the three months ended March 31,
  2013 (in thousands).</FONT></P>
  
  <P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">March 31, 2013</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">December 31, 2012</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(unaudited)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(unaudited)</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; text-align: left">ASSETS</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Current assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">628</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt; padding-bottom: 1pt">Oil and gas properties, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,930</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,899</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt; padding-left: 20pt; width: 56%">TOTAL ASSETS</TD>
      <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 20pt; width: 8%"></TD><TD STYLE="border-bottom: Black 2.5pt double; width: 1%">$</TD>
      <TD STYLE="text-align: right; border-bottom: Black 2.5pt double; width: 12%">7,941</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right; width: 1%"></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; width: 6%">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 1%">$</TD>
      <TD STYLE="text-align: right; border-bottom: Black 2.5pt double; width: 14%">7,527</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right; width: 1%"></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND MEMBERS' CAPITAL</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Current liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,144</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">499</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Asset retirement obligations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">174</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">173</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt; padding-left: 20pt">TOTAL LIABILITIES</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,318</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">672</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt; padding-left: 20pt"> MEMBERS' CAPITAL</TD>
      <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 20pt"></TD><TD STYLE="border-bottom: Black 1pt solid">$</TD>
      <TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,623</TD><TD STYLE="padding-bottom: 1pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">$</TD>
      <TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,855</TD><TD STYLE="padding-bottom: 1pt; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt; padding-left: 20pt"><B>TOTAL LIABILITIES AND MEMBERS' CAPITAL</B></TD>
      <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 20pt"></TD><TD STYLE="border-bottom: Black 2.5pt double">$</TD>
      <TD STYLE="text-align: right; border-bottom: Black 2.5pt double">7,941</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double">$</TD>
      <TD STYLE="text-align: right; border-bottom: Black 2.5pt double">7,527</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right"></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">Revenue and direct operating expenses
       for      the various oil and gas assets included in the accompanying statements represent the net
       collective      working      and revenue      interests acquired by  Equus Energy. The revenue and direct operating
       expenses presented      herein relate      only to the      interests in the producing oil and natural gas properties and do      not represent all of      the oil and      natural gas operations of all of these properties.
       Direct operating expenses      include lease operating      expenses and production      and other related taxes. General and
       administrative expenses,      depreciation, depletion and      amortization      (&ldquo;DD&amp;A&rdquo;) of oil and gas
       properties and federal and state      taxes have been excluded from      direct operating      expenses in the accompanying
       statements of revenues and direct      operating expenses because the      allocation of certain expenses      would be
       arbitrary and would not be indicative of      what such costs would have been had Equus Energy been operated as
       a stand alone entity.<FONT STYLE="font-size: 10pt"><B> </B>The      statements of revenues      and direct operating expenses
       presented      are not indicative of the financial condition or      results of operations of       Equus Energy on a
       go forward basis due to      changes in the business and the      omission of various operating      expenses.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt"><B></B></FONT></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Three months ended</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">March 31, 2013</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(unaudited)</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">OPERATING REVENUES:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="width: 70%; text-align: left; padding-left: 0">Total operating revenue</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 23%; text-align: right">605</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 0">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">OPERATING EXPENSES:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 0; padding-bottom: 1pt">Direct operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">328</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 0">OPERATING PROFIT</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">277</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 0">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 0">Depletion, depreciation and amortization</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">322</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 0">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">187</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>NET INCOME (LOSS)</B></TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(232</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt"><B></B></FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P></DIV>
  
  
  <P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
  
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  <P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <DIV><P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 1.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
  
  
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt"><B>Critical
  Accounting Policies for Equus Energy</B>&mdash;Equus Energy and its wholly-owned subsidiary EQS Energy Holdings, Inc.
  (collectively &ldquo;the Company&rdquo;) follow the <I>Full Cost Method of Accounting</I> for oil and gas properties. Under
  the full cost method, all costs associated with property acquisition, exploration, and development activities are
  capitalized. Capitalized costs include lease acquisitions, geological and geophysical work, delay rentals, costs of drilling,
  completing and equipping successful and unsuccessful oil and gas wells and directly related costs. Gains or losses are
  normally not recognized on the sale or other disposition of oil and gas properties. Gains or losses are normally reflected
  as an adjustment to the full cost pool.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">The
  capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and
  estimated cost of dismantlement and abandonment, net of salvage value, are amortized on a unit-of-production method over the
  estimated productive life of the proved oil and gas reserves. Unevaluated oil and gas properties are excluded from this
  calculation.&nbsp; Depletion and depreciation expense for the Company&rsquo;s oil and gas properties totaled $0.3 million for
  the quarter ending March 31, 2013.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">Capitalized
  oil and gas property costs are limited to an amount (the ceiling limitation) equal to the sum of the following:</FONT></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 9pt 0 6pt 45pt; text-indent: 0in"><FONT STYLE="font-size: 10pt">(a)&nbsp;&nbsp;
  As of March 31, 2013 the present value of estimated future net revenue from the projected production of proved oil and gas reserves,
  calculated at the simple arithmetic average, first-day-of-the-month prices during the twelve-month period before the balance sheet
  date&nbsp; (with consideration of price changes only to the extent provided by contractual arrangements) and a discount factor
  of 10%;</FONT></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-indent: 0in"><FONT STYLE="font-size: 10pt">(b)&nbsp;&nbsp;
  The cost of investments in unproved and unevaluated properties excluded from the costs being amortized; and</FONT></P>
  
  <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 9pt 0 6pt 45pt; text-indent: 0in"><FONT STYLE="font-size: 10pt">(c)&nbsp;&nbsp;
  The lower of cost or estimated fair value of unproved properties included in the costs being amortized.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">When
  it is determined that oil and gas property costs exceed the ceiling limitation, an impairment charge is recorded to reduce its
  carrying value to the ceiling limitation.&nbsp; The Company did not recognize an impairment loss on their oil and gas properties
  during 2012 or during the three months ended March 31, 2013.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><FONT STYLE="font-size: 10pt">The costs
  of certain unevaluated leasehold acreage and certain wells being drilled are not amortized. The Company excludes all costs until
  proved reserves are found or until it is determined that the costs are impaired. Costs not amortized are periodically assessed
  for possible impairments or reductions in value. If a reduction in value has occurred, costs being amortized are increased.&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><B>Revenue Recognition&mdash;</B>Revenues
  are recognized for oil and natural gas sales under the sales method of accounting. Under this method, revenues are recognized
  on production as it is taken and delivered to its purchasers. The volumes sold may be more or less than the volumes entitled to,
  based on the owner&rsquo;s net interest in the Assets. These differences result from production imbalances, which are not significant,
  and are reflected as adjustments to prove reserves and future cash flows in the unaudited supplementary oil and gas information
  included herein.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><B>Accounting Policy on
  Depletion&mdash;</B>The Company employs the Units of Production method whereby depletion of proved oil and gas properties is
  computed on the units-of-production method, where capitalized costs, as adjusted for future development costs and asset
  retirement obligations, are amortized over the total estimated proved reserves.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><B>Asset Retirement Obligations&mdash; </B>The
  fair value of asset retirement obligations are recorded in the period in which they are incurred if a reasonable estimate of fair
  value can be made, and the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset.&nbsp;
  The fair value of the asset retirement obligation is measured using expected future cash outflows discounted at the Company&rsquo;s
  credit-adjusted risk-free interest rate.&nbsp; Fair value, to the extent possible, should include a market risk premium for unforeseeable
  circumstances.&nbsp; No market risk premium was included in the Company&rsquo;s asset retirement obligation fair value estimate
  since a reasonable estimate could not be made. &nbsp;The liability is accreted to its then present value each period, and the
  capitalized cost is depleted or amortized over the estimated recoverable reserves using the units-of-production method.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
  <TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><B>(8)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B><U>Subsequent Events</U></B></FONT></TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Management performed an evaluation of the Fund&rsquo;s
  activity through the date the financial statements were issued, noting no subsequent events.</P></DIV>
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"></P></DIV>
  
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  <DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt"><A NAME="a_010"></A><B><U>Item&nbsp;2.</U>&nbsp;&nbsp;&nbsp;<U>Management&rsquo;s
  Discussion and Analysis of Financial Condition and Results of Operations </U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U>Overview </U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Equus Total Return, Inc. (<FONT STYLE="color: black"><I>&ldquo;we,&rdquo;
  &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus,&rdquo; the &ldquo;Company,&rdquo; and the &ldquo;Fund</I></FONT>&rdquo;), a
  Delaware corporation, was formed by Equus Investments II, L.P. (the &ldquo;Partnership&rdquo;) on August 16, 1991. On July 1, 1992,
  the Partnership was reorganized and all of the assets and liabilities of the Partnership were transferred to the Fund in exchange
  for shares of common stock of the Fund. Our shares trade on the New York Stock Exchange under the symbol EQS. On August 11, 2006,
  our shareholders approved the change of the Fund&rsquo;s investment strategy to a total return investment objective. This new strategy
  seeks to provide the highest total return, consisting of capital appreciation and current income. In connection with this strategic
  investment change, the shareholders also approved the change of name from Equus II Incorporated to Equus Total Return, Inc.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We attempt to maximize the return to stockholders
  in the form of current investment income and long-term capital gains by investing in the debt and equity securities of companies
  with a total enterprise value of between $5.0 million and $75.0 million, although we may engage in transactions with smaller or
  larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through acquisition
  or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations. Our income-producing
  investments consist principally of debt securities including subordinate debt, debt convertible into common or preferred stock,
  or debt combined with warrants and common and preferred stock. <FONT STYLE="color: black">Debt and preferred equity financing may
  also be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with the
  financing. </FONT>We seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued
  by privately-owned companies in transactions negotiated directly with such companies.<FONT STYLE="color: black"> Given market conditions
  over the past several years and the performance of our portfolio, our management and Board of Directors believe it is prudent to
  continue to review alternatives to refine and further clarify the current strategies.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We elected to be treated as a Business
  Development Company (&ldquo;BDC&rdquo;) under the Investment Company Act of 1940 Act (&ldquo;1940 Act&rdquo;). We currently
  qualify as a regulated investment company (&ldquo;RIC&rsquo;) for federal income tax purposes and, therefore, are not
  required to pay corporate income taxes on any income or gains that we distribute to our stockholders. We have certain wholly
  owned Taxable Subsidiaries each of which holds one or more portfolio investments listed on our Schedules of Investments. The
  purpose of these Taxable Subsidiaries is to permit us to hold certain income-producing investments or portfolio companies
  organized as limited liability companies, or LLCs, (or other forms of pass-through entities) and still satisfy the RIC tax
  requirement that at least 90% of our gross revenue for income tax purposes must consist of investment income. Absent the
  Taxable Subsidiaries, a portion of the gross income of these income-producing investments or of any LLC (or other
  pass-through entity) portfolio investment, as the case may be, would flow through directly to us for the 90% test. To the
  extent that such income did not consist of investment income, it could jeopardize our ability to qualify as a RIC and,
  therefore, cause us to incur significant federal income taxes. The income of the LLCs (or other pass-through entities)
  owned by Taxable Subsidiaries is taxed to the Taxable Subsidiaries and does not flow through to us, thereby helping us preserve
  our RIC status and resultant tax advantages. We do not consolidate the Taxable Subsidiaries for income tax purposes and they may
  generate income tax expense because of the Taxable Subsidiaries&rsquo; ownership of the portfolio investments. We reflect any
  such income tax expense on our Statements of Operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt"><B>Critical Accounting Policies
  </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 22.5pt 0 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our financial statements are based on the selection
  and application of significant accounting policies, which require management to make significant estimates and assumptions. We
  believe that the following are some of the more critical judgment areas in the application of our accounting policies that currently
  affect our financial condition and results of operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Valuation of Investments</B>&mdash; Portfolio
  investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the determination
  of net assets. Valuations of portfolio securities are performed in accordance with accounting principles generally accepted in
  the United States of America and the financial reporting policies of the SEC. The applicable methods prescribed by such principles
  and policies are described below:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Publicly-traded portfolio securities</I>&mdash;Investments
  in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
  the valuation date.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Privately-held portfolio securities</I>&mdash;The
  fair value of investments for which no market exists is determined on the basis of procedures established in good faith by our
  Board of Directors. As a general principle, the current &ldquo;fair value&rdquo; of an investment would be the amount we might
  reasonably expect to receive for it upon its current sale, in an orderly manner. Appraisal valuations are necessarily subjective
  and the estimated values arrived at by the Fund may differ materially from amounts actually received upon the disposition of portfolio
  securities.</P></DIV>
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <!-- Field: Page; Sequence: 22 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Thinly Traded and Over-the-Counter Securities</I>&mdash;Generally,
  we value securities that are traded in the over-the-counter market or on a stock exchange at the average of the prevailing bid
  and ask prices on the date of the relevant period end. However, we may apply a discount to the market value of restricted or thinly
  traded public securities to reflect the impact that these restrictions have on the value of these securities. We review factors,
  including the trading volume, total securities outstanding and our percentage ownership of securities to determine whether the
  trading levels are active (Level 1) or inactive (Level 2) or unobservable (Level 3). These types of securities represented 16.0%
  and 15.4% of our investments in portfolio securities as of March 31, 2013 and December 31, 2012, respectively. We utilized independent
  pricing services with certain of our fair value estimates. To corroborate &ldquo;bid/ask&rdquo; quotes from independent pricing
  services, we perform a market-yield approach to validate prices obtained or obtain other evidence.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the first twelve months after an investment
  is made, the original investment amount is utilized to determine the fair value unless significant developments have occurred during
  this twelve month period which would indicate a material effect on the portfolio company (such as results of operations or changes
  in general market conditions). After the twelve month period, or if material events have occurred within the twelve month period,
  Fund management considers a two-step process when appraising investments of privately held companies. The first step involves determining
  the enterprise value of the portfolio company. During this step, our management considers three different valuation approaches:
  a market approach, an income approach, and an asset approach. The particular facts and circumstances of each portfolio company
  determine which approach, or combination of approaches, will be utilized. The second step when appraising equity investments of
  privately held companies involves allocating value to the various debt and equity securities of the company. Fund management allocates
  value to these securities based on their relative priorities. For equity securities such as warrants, the Fund may also incorporate
  alternative methodologies including the Black-Scholes Option Pricing Model.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Market approach</B>&mdash;The market approach
  typically employed by our management calculates the enterprise value of a company as&nbsp;a multiple of earnings before interest,
  taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;) generated by the company for the trailing twelve month period.&nbsp;
  Adjustments to the company&rsquo;s EBITDA, including those for non-recurring items, may be considered. Multiples are estimated
  based on current market conditions and past experience in the private company marketplace and are subjective in nature. We will
  apply liquidity and other discounts we deem appropriate to equity valuations where applicable. We may also use, when available,
  third-party transactions in a portfolio company&rsquo;s securities as the basis of valuation (the &ldquo;private market method&rdquo;).
  The private market method will be used only with respect to completed transactions or firm offers made by sophisticated, independent
  investors.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Income approach</B>&mdash;The income approach
  typically utilized by our management calculates the enterprise value of a company utilizing a discounted cash flow model incorporating
  projected future cash flows of the company.&nbsp; Projected future cash flows consider the historical performance of the company
  as well as current and projected market participant performance. Discount rates are estimated based on current market conditions
  and past experience in the private company marketplace and are subjective in nature. We will apply liquidity and other discounts
  we deem appropriate to equity valuations where applicable.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Asset approach</B>&mdash;We consider the
  asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances indicative of
  a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow to meet the principal
  and interest payments on its indebtedness; 2) is not successful in refinancing its debt upon&nbsp;maturity; 3) we believe the
  credit quality of a loan has deteriorated due to changes in the business and underlying asset or market conditions which may result
  in the company&rsquo;s inability to meet future obligations; or 4) the portfolio company&rsquo;s reorganization or bankruptcy.
  Consideration is also given as to whether a liquidation event would be orderly or forced.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We base adjustments upon such factors as the
  portfolio company&rsquo;s earnings, cash flow and net worth, the market prices for similar securities of comparable companies,
  an assessment of the company&rsquo;s current and future financial prospects and various other factors and assumptions. In the case
  of unsuccessful operations, we may base a portfolio company&rsquo;s fair value upon the company&rsquo;s estimated liquidation value.
  Fair valuations are necessarily subjective, and management&rsquo;s estimate of fair value may differ materially from amounts actually
  received upon the disposition of its portfolio securities. Also, any failure by a portfolio company to achieve its business plan
  or obtain and maintain its financing arrangements could result in increased volatility and result in a significant and rapid change
  in its value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our general intent is to hold our loans to
  maturity when appraising its privately held debt investments. As such, we believe that the fair value will not exceed the cost
  of the investment. However, in addition to the previously described analysis involving allocation of value to the debt instrument,
  we perform a yield analysis to determine if a debt security has been impaired.</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  
  <!-- Field: Page; Sequence: 23 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Audit Committee of the Board of Directors
  may engage independent, third-party valuation firms to conduct independent appraisals and review management&rsquo;s preliminary
  valuations of each privately-held investment in order to make their own independent assessment. Any third-party valuation data
  would be considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair values
  for all privately-held securities based on all relevant factors to the Board of Directors for final approval.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Because of the inherent uncertainty of the
  valuation of portfolio securities which do not have readily ascertainable market values, amounting to $8.4 million and $9.0 million
  as of March 31, 2013 and December 31, 2012, respectively, our fair value determinations may materially differ from the values that
  would have been used had a ready market existed for the securities. As of March 31, 2013 and December 31, 2012, respectively, one
  of the Fund&rsquo;s portfolio investments, the 73,666 ordinary shares of OPG, was publicly listed on the NYSE Euronext Paris Exchange<FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">.</FONT></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On a daily basis, we adjust our net asset value
  for the changes in the value of our publicly held securities, if applicable, and material changes in the value of private securities,
  generally determined on a quarterly basis or as announced in a press release, and reports those amounts to Lipper Analytical Services,
  Inc. Weekly and daily net asset values appear in various publications, including Barron&rsquo;s and <I>The Wall Street Journal</I>.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Federal Income Taxes </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We intend to comply with the requirements of
  the Internal Revenue Code necessary for us to qualify as a RIC. So long as we comply with these requirements, we generally will
  not be subject to corporate-level federal income taxes on otherwise taxable income (including net realized capital gains) distributed
  to stockholders. Therefore, we did not record a provision for federal income taxes in our financial statements. As of December
  31, 2012, we had a capital loss carry-forward of $29.3 million which may be used to offset future capital gains. We may borrow
  money from time to time to maintain our status as a RIC under the Internal Revenue Code. See Note 2 for further discussion of our
  RIC borrowings.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Interest Income Recognition</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We record interest income, adjusted for amortization
  of premium and accretion of discount, on an accrual basis to the extent that we expect to collect such amounts. We stop accruing
  interest on investments when we determine that interest is no longer collectible. We may also impair the accrued interest when
  we determine that all or a portion of the current accrual is uncollectible. If we receive any cash after determining that interest
  is no longer collectible, we treat such cash as payment on the principal balance until the entire principal balance has been repaid,
  before we recognize any additional interest income. We accrete or amortize discounts and premiums on securities purchased over
  the life of the respective security using the effective yield method. The amortized cost of investments represents the original
  cost adjusted for the accretion of discount and/or amortization of premium on debt securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Payment in Kind Interest </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We have loans in our portfolio that may pay
  PIK interest. We add PIK interest, if any, computed at the contractual rate specified in each loan agreement, to the principal
  balance of the loan and record it as interest income. To maintain the Fund&rsquo;s status as a RIC, we must pay out to our stockholders
  this non-cash source of income in the form of dividends even if we have not yet collected any cash in respect of such investments.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Current Market Conditions </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Overall economic conditions in the United States
  have improved since 2009, albeit marginally. However, the economic recovery has been hampered by slower growth and persistent high
  unemployment relative to historical levels. The U.S. Congressional Budget Office is forecasting continuing sluggish growth for
  the remainder of 2013, with a projected unemployment rate exceeding 7.5% at year end. Additionally, future economic expansion and
  business investment is threatened by perceptions of higher taxes and healthcare costs, as well as the high levels of government
  deficit spending.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Notwithstanding a sharp downturn in merger
  and acquisition (&ldquo;M&amp;A&rdquo;) activity during the first quarter of 2013, market conditions for business transactions
  including mergers and acquisitions and private equity investments have improved since 2010, as corporations have been deleveraging
  and are holding significant amounts of cash and many have begun to focus on acquisitions as part of future growth plans. Private
  equity firms have access to historically large amounts of committed capital as private equity activity has been lower than anticipated
  for nearly three years.</P>
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <DIV></DIV>
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
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  <P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <DIV></DIV>
  
  
  <P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Consistent with other companies in the financial
  services sector, our performance has been adversely affected. Between December 31, 2008 and December 31, 2012 our net asset value
  declined from $9.16 per share to $3.11 per share. This further impacted the trading price of our common stock, as it declined approximately
  21.9% and 10.4% during 2010 and 2011, respectively, before increasing 5.36% in 2012. As of March 31, 2013, the closing price of
  our common stock closed was $2.16, which is a discount of 27.3% to our net asset value.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Over the past several years, we have executed
  certain initiatives to enhance liquidity, achieve a lower operational cost structure, provide more assistance to portfolio companies
  and realize certain of our portfolio investments. Specifically, we changed the composition of our Board of Directors and management,
  terminated certain of our follow-on investments, internalized the management of the Fund, suspended our managed distribution policy,
  modified our investment strategy to pursue shorter term liquidation opportunities, pursued non-cash investment opportunities, and
  sold certain of our legacy and underperforming investment holdings. We believe these actions continue to be necessary to protect
  capital and liquidity during this turbulent economic period in order to preserve and enhance shareholder value. Because our management
  is internalized, certain of our expenses should not increase commensurate with an increase in the size of the Fund and, therefore,
  we expect to achieve efficiencies in our cost structure if we are able to grow the Fund.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Liquidity and Capital Resources </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We generate cash primarily from maturities,
  sales of securities and borrowings, as well as capital gains realized upon the sale of portfolio investments. We use cash primarily
  to make additional investments, either in new companies or as follow-on investments in the existing portfolio companies and to
  pay the dividends to our stockholders.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Because of the nature and size of the portfolio
  investments, we may periodically borrow funds to make qualifying investments to maintain our tax status as a RIC. We often borrow
  such funds by utilizing a margin account with a securities brokerage firm. There is no assurance that such arrangement will be
  available in the future. If the Fund is unable to borrow funds to make qualifying investments, it may no longer qualify as a RIC.
  The Fund would then be subject to corporate income tax on its net investment income and realized capital gains, and distributions
  to stockholders would be subject to income tax as ordinary dividends.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Fund has the ability to borrow funds and
  issue forms of senior securities representing indebtedness or stock, such as preferred stock, subject to certain restrictions.
  Net taxable investment income and net taxable realized gains from the sales of portfolio investments are intended to be distributed
  at least annually, to the extent such amounts are not reserved for payment of expenses and contingencies or to make follow-on or
  new investments.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Fund reserves the right to retain net long-term
  capital gains in excess of net short-term capital losses for reinvestment or to pay contingencies and expenses. Such retained amounts,
  if any, will be taxable to the Fund as long-term capital gains and stockholders will be able to claim their proportionate share
  of the federal income taxes paid on such gains as a credit against their own federal income tax liabilities. Stockholders will
  also be entitled to increase the adjusted tax basis of their Fund shares by the difference between their undistributed capital
  gains and their tax credit.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P></DIV>
  
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We are evaluating the impact of current market
  conditions on our portfolio company valuations and their ability to provide current income. We have followed valuation techniques
  in a consistent manner; however, we are cognizant of current market conditions that might affect future valuations of portfolio
  securities. We believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements and to
  finance routine capital expenditures through the next twelve months. &nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Results of Operations </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Investment Income and Expense </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Net investment loss was $0.8 million and $0.5&nbsp;million
  for the three months ended March&nbsp;31, 2013 and March&nbsp;31, 2012, respectively. The net investment loss for the three months
  ended March 31, 2013 resulted from the $0.1 million investment loss, due to the impairment of accrued interest income from Spectrum
  Management LLC, along with the operating expenses for the quarter totaling $0.7 million. The increase in net investment loss generated
  at March&nbsp;31, 2013 compared to March&nbsp;31, 2012 is due primarily to the decrease in total investment income.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Total income (loss) from portfolio securities
  was ($0.1) million and $0.2 million for the three months ended March 31, 2013 and 2012, respectively. The $0.3 million decrease
  was primarily due to the impairment of accrued interest receivable of Spectrum Management, LLC.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 25 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Total expenses were relatively unchanged at
  $0.7 million for the three months ended March 31, 2013 and 2012, respectively.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Realized Gains and Losses on Sales of Portfolio Securities </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the three months ended March&nbsp;31,
  2013 and 2012, we did not realize any net capital gains or losses.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 31.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Changes in Unrealized Appreciation/Depreciation of Portfolio
  Securities </B></P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Net unrealized depreciation on investments
  increased $0.7 million during the three months ended March 31, 2013, to a net unrealized depreciation of $17.9 million.&nbsp; Such
  decrease in unrealized depreciation is largely due to the following changes:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Decrease in fair value of Equus Energy LLC of $0.2 million due to operating expenses<FONT STYLE="color: black">.</FONT></FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD><TD><FONT STYLE="font-size: 10pt; color: black">Decrease in fair value of OPG of $0.1 million due to adecline in stock price and
  foreign exchange translation.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD><TD><FONT STYLE="font-size: 10pt; color: black">Decrease in fair value of Spectrum of $0.4 million due to adecline in operating
  performance.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Net unrealized depreciation on investments
  remained relatively unchanged during the three months ended March 31, 2012, at a net unrealized depreciation of $17.4 million.
  Such decrease in depreciation is largely due to the following changes:</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Increase in fair value of ConGlobal of $0.3 million due to improved productivity.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD><TD><FONT STYLE="font-size: 10pt">Decrease in the fair value of Spectrum of $0.2 million due to the continued decline in operating
  performance and liquidity issues.</FONT></TD></TR></TABLE>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Dividends </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We will pay out net investment income and/or
  realized capital gains, if any, on an annual basis as required under the Investment Company Act of 1940.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Portfolio Investments </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the three months ended March 31,
  2013, we capitalized legal and consulting expenses of $0.1 million relating to Spectrum Management. We also received a
  semi-annual interest payment of $0.03 million and a 5.75% partial principal repayment of $9,000 in respect of our &euro;1.2
  million [$1.5 million] in OPG notes.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During the three month ended March 31, 2012,
  we made no new or follow-on investments.</P></DIV>
  </P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U>Subsequent Events</U> </B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Management performed an evaluation of the Fund&rsquo;s
  activity through the date the financial statements were issued, noting no subsequent events.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_011"></A><U>Item&nbsp; 3.</U>&nbsp;&nbsp;&nbsp;<U>Quantitative and Qualitative Disclosure
  about Market Risk </U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We are subject to financial market risks, including
  changes in interest rates with respect to investments in debt securities and outstanding debt payable, as well as changes in marketable
  equity security prices. In the future, in addition to our investment in OPG shares and the New OPG Notes, we may invest in companies
  outside the United States, including in Europe and Asia, which would give rise to exposure to foreign currency value fluctuations.
  We do not use derivative financial instruments to mitigate any of these risks. The return on investments is generally not affected
  by foreign currency fluctuations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our investments in portfolio securities consist
  of some fixed-rate debt securities. Since the debt securities are generally priced at a fixed rate, changes in interest rates do
  not directly affect interest income. In addition, changes in market interest rates are not typically a significant factor in the
  determination of fair value of these debt securities, since the securities are generally held to maturity. We determine their fair
  values based on the terms of the relevant debt security and the financial condition of the issuer.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P></DIV>
  
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  <DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">A major portion of our investment portfolio
  consists of debt and equity investments in private companies. Modest changes in public market equity prices generally do not significantly
  impact the estimated fair value of these investments. However, significant changes in market equity prices can have a longer-term
  effect on valuations of private companies, which could affect the carrying value and the amount and timing of gains or losses realized
  on these investments. A small portion of the investment portfolio also consists of common stock in publicly traded companies. These
  investments are directly exposed to equity price risk, in that a hypothetical ten percent change in these equity prices would result
  in a similar percentage change in the fair value of these securities.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We are classified as a &ldquo;non-diversified&rdquo;
  investment company under the 1940 Act, which means we are not limited in the proportion of our assets that may be invested in the
  securities of a single user. The value of one segment called &ldquo;Energy&rdquo; includes one portfolio company and was 21.0%
  of the net asset value and 76.8% of our investments in portfolio company securities (at fair value) as of March 31, 2013. Changes
  in business or industry trends or in the financial condition, results of operations, or the market&rsquo;s assessment of any single
  portfolio company will affect the net asset value and the market price of our common stock to a greater extent than would be the
  case if we were a &ldquo;diversified&rdquo; company holding numerous investments.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt"><A NAME="a_012"></A><B><U>Item&nbsp; 4.</U>&nbsp;&nbsp;&nbsp;<U>Controls
  and Procedures </U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Fund maintains disclosure controls and
  other procedures that are designed to ensure that information required to be disclosed by the Fund in the reports that it files
  or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC&rsquo;s
  rules and forms, and that such information is accumulated and communicated to the Fund&rsquo;s management, including its Chief
  Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Fund&rsquo;s management, with the participation
  of the Fund&rsquo;s Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the design and operations
  of the Fund&rsquo;s &ldquo;disclosure controls and procedures&rdquo; (as defined in Rule 13a-15(e) under the Securities Exchange
  Act of 1934) as of March 31, 2013. Based on their evaluation, the Fund&rsquo;s Chief Executive Officer and Chief Financial Officer
  concluded that the Fund&rsquo;s disclosure controls and procedures were effective at a reasonable assurance level. There has been
  no change in the Fund&rsquo;s internal control over financial reporting during the quarter ended March 31, 2013, that has materially
  affected, or is reasonably likely to materially affect, the Fund&rsquo;s internal control over financial reporting.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U><A NAME="a_013"></A>Part II. Other Information </U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt"><B><U><A NAME="a_014"></A>Item&nbsp; 1.</U>&nbsp;&nbsp;&nbsp;<U>Legal
  Proceedings </U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On April&nbsp;26, 2010, the Securities and
  Exchange Commission (&ldquo;SEC&rdquo;) subpoenaed records of the Fund in connection with certain trades in the Fund&rsquo;s shares
  by SPQR Capital LLP, SAE Capital Ltd., Versatile Systems Inc., Mobiquity Investments Limited, and anyone associated with those
  entities. The Fund has fully cooperated with the SEC&rsquo;s request.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In January 2006, we sold our 31.5% ownership
  interest in Champion Window, Inc. (&ldquo;Champion&rdquo;), a portfolio company of the Fund, to Atrium Companies Inc. (&ldquo;Atrium&rdquo;)
  pursuant to a Stock Purchase Agreement (&ldquo;SPA&rdquo;) dated December 22, 2005. The SPA contained certain limited rights of
  indemnification for Atrium in connection with its purchase of such ownership interest.</P>
  
  
  
  
  <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Atrium filed suit in the District Court of
  Harris County, Texas against two former officers of Atrium&rsquo;s subsidiary, Champion, alleging, amongst other matters, that
  the former officers breached their fiduciary duties to Champion by hiring undocumented workers. This action was commenced primarily
  as a result of an investigation by the U.S. Immigration and Customs Enforcement agency (&ldquo;ICE&rdquo;) into Atrium&rsquo;s
  hiring practices. On March 12, 2012, to protect its interests, we filed a Petition in Intervention in the State Court Action seeking
  a declaration from the Court that Equus did not owe any obligation to indemnify Atrium or Champion for any penalties, costs or
  fees associated with the investigation by ICE.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On March 16, 2012, Atrium and Champion filed
  a claim with the American Arbitration Association in Dallas, Texas, against Equus and a number of the other sellers under the SPA.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P></DIV>
  
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  <DIV></DIV><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In the Arbitration Action, Atrium and Champion
  seek damages arising from Equus&rsquo; and the other sellers&rsquo; indemnity obligations set forth in the SPA. Atrium claims it
  is entitled to indemnification under the SPA for costs it has incurred in responding to an ongoing investigation by ICE. Atrium
  entered into a Non-Prosecution Agreement with ICE. It appears that one condition of the Non-Prosecution Agreement required Atrium
  to pay ICE $2,000,000. Atrium and Champion asserted two counts of breach of contract against Equus, both arising out of the alleged
  obligation to indemnify Atrium and Champion pursuant to certain provisions of the SPA. Atrium and Champion also asserted claims
  for fraudulent inducement against two former officers and directors of Champion. Through the arbitration, Atrium and Champion seek
  to recover an unspecified amount in the form of alleged &ldquo;losses, damages, assessments, penalties, interest, reasonable attorneys&rsquo;
  and accountants&rsquo; fees, settlement costs, and other costs and expenses arising directly or indirectly out of or incident to,&rdquo;
  the alleged breach of the indemnity provisions in the SPA. As a consequence of their fraudulent inducement claim against the two
  former officers and directors, Atrium and Champion alternatively seek equitable rescission of the SPA and exemplary damages from
  the two former officers and directors.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Atrium and Champion have yet to specify the
  amount of damages they seek from Equus or the other sellers pursuant to the alleged indemnity obligations under the SPA. Atrium
  and Champion have disclosed the payment of $2 million to ICE to resolve the investigation and avoid prosecution for their hiring
  practices.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We intend to vigorously contest the claims
  and deny that we owe any indemnity obligations to Atrium or Champion and further deny that the Fund is in any way liable to Atrium
  or Champion. To the extent Atrium and Champion are able to establish a right to an indemnity, we will contest the amount of the
  claimed indemnity, inasmuch as we believe (among other defenses) that the indemnity obligation can only exist, if at all, with
  respect to damages arising as a direct and proximate result of employees who were hired prior to the closing date of the 2006 sale
  of Champion and remained in continuous employment after the 2006 sale, and not to any employee who may have been hired in the six
  years after the sale.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">While we believe the Atrium claim is without
  merit and we intend to vigorously dispute the claim, there is a reasonable possibility of an adverse ruling which may require the
  Fund to indemnify Atrium. If Equus is required to indemnify Atrium and Champion, we estimate that such indemnity obligation could
  vary from $2.0 million to $3.0 million. Pursuant to the SPA, the indemnification obligation of Equus and the other sellers is several
  and not joint, and any such indemnity, however uncertain, would likely be reduced proportionately to our percentage ownership in
  Champion at the time of sale, which was 31.5% of Champion&rsquo;s shares outstanding.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On August 12, 2012, Paula Douglass filed a
  lawsuit against the Fund and members of the Board of Directors in the District Court of Harris County, Texas. Ms. Douglass&rsquo;
  complaint alleges various causes of action, including minority shareholder oppression, dilution, and breach of fiduciary duty,
  and seeks unspecified damages and attorney&rsquo;s fees. We consider the lawsuit as being without merit and intend to defend the
  matter vigorously.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">From time to time, the Fund is also a party
  to certain proceedings incidental to the normal course of our business including the enforcement of our rights under contracts
  with our portfolio companies. While the outcome of these legal proceedings cannot at this time be predicted with certainty, we
  do not expect that these proceedings will have a material effect upon the Fund&rsquo;s financial condition or results of operations.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt"><B><U><A NAME="a_015"></A>Item&nbsp;1A.</U>&nbsp;&nbsp;&nbsp;<U>Risk
  Factors </U></B></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">There have been no material changes in the
  Fund&rsquo;s risk factors from the disclosure set forth in the Annual Report on Form 10-K for the year ended December&nbsp;31,
  2012.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Readers should carefully consider these risks
  and all other information contained in the annual report on Form 10-K, including the Fund&rsquo;s financial statements and the
  related notes thereto. The risks and uncertainties described below are not the only ones facing the Fund. Additional risks and
  uncertainties not presently known to the Fund, or not presently deemed material by the Fund, may also impair its operations and
  performance.</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 28 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.75in"><B><U><A NAME="a_016"></A>Item&nbsp; 6.</U>&nbsp;&nbsp;&nbsp;<U>Exhibits
  </U></B></P>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">3.</TD><TD>Articles of Incorporation and by-laws</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">(a)</TD><TD>Restated Certificate of Incorporation of the Fund, as amended. [Incorporated by reference to Exhibit 3(a) to Registrant&rsquo;s
  Annual Report on Form 10-K for the year ended December&nbsp;31, 2007]</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">(b)</TD><TD>Certificate of Merger dated June&nbsp;30, 1993, between the Fund and Equus Investments Incorporated [Incorporated by reference
  to Exhibit 3(c) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2007]</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">(c)</TD><TD>Amended and Restated Bylaws of the Fund. [Incorporated by reference to Exhibit 3(b) to Registrant&rsquo;s Current Report on
  Form 8-K filed on December 16, 2010.]</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 13.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">10.</TD><TD>Material Contracts.</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">(c)</TD><TD>Safekeeping Agreement between the Fund and Amegy Bank dated August&nbsp;16, 2008.&nbsp;[Incorporated by reference to Exhibit&nbsp;10(c)
  to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2008.]</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">(d)</TD><TD>Form of Indemnification Agreement between the Fund and its directors and certain officers. [Incorporated by reference to Exhibit
  10(d) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2011.]</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">(e)</TD><TD>Form of Release Agreement between the Fund and certain of its officers and former officers. [Incorporated by reference to Exhibit
  10(h) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2004.]</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">(f)</TD><TD>Code of Ethics of the Fund (Rule 17j-1) [Incorporated by reference to Exhibit 10(f) to Registrant&rsquo;s Annual Report on
  Form 10-K for the year ended December&nbsp;31, 2009.]</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 13.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">31.</TD><TD>Rule 13a-14(a)/15d-14(a) Certifications</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">1.</TD><TD><A HREF="ex311_ceo302cert.htm">Certification by Chief Executive Officer</A></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">2.</TD><TD><A HREF="ex312_cfocert.htm">Certification by Chief Financial Officer</A></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 13.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">32.</TD><TD>Section&nbsp;1350 Certifications</TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">1.</TD><TD><A HREF="ex321_ceo906cert.htm">Certification by Chief Executive Officer</A></TD></TR></TABLE>
  
  <TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
  <TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 30.6pt">2.</TD><TD><A HREF="ex322_cfo906cert.htm">Certification by Chief Financial Officer</A></TD></TR></TABLE>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 29 -->
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  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_017"></A>SIGNATURE</P>
  
  <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">Pursuant to the requirements of Section&nbsp;13
  or 15(d) of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed by the undersigned, thereunto
  duly authorized.</P>
  
  <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
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      <TD STYLE="width: 40%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; padding-left: 0.1in; font: 4pt/2pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font: 4pt/2pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;EQUUS TOTAL RETURN, INC.</FONT></TD></TR>
  <TR>
      <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Date: May 15, 2013</FONT></TD>
      <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font: 4pt/2pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom">
          <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">/s/ John A. Hardy</P>
  <!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; padding-left: 0.1in; font: 4pt/2pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font: 4pt/2pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt"><B>John A. Hardy</B></FONT></TD></TR>
  <TR>
      <TD STYLE="vertical-align: top; padding-left: 0.1in; font: 4pt/2pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; padding-left: 0.1in; font: 4pt/2pt Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt"><B>Chief Executive Officer</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
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metadata_documents: [{"type": "10-Q", "sequence": "1", "filename": "f10q_equus31331.htm", "description": "FORM 10-Q", "secsgml_size_bytes": 438869}]
metadata_filer: {"company-data": {"conformed-name": "EQUUS TOTAL RETURN, INC.", "cik": "0000878932", "irs-number": "760345915", "state-of-incorporation": "DE", "fiscal-year-end": "0604"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "814-00098", "film-number": "13847058"}, "business-address": {"street1": "EIGHT GREENWAY PLAZA", "street2": "SUITE 930", "city": "HOUSTON", "state": "TX", "zip": "77046", "phone": "7135290900"}, "mail-address": {"street1": "EIGHT GREENWAY PLAZA", "street2": "SUITE 930", "city": "HOUSTON", "state": "TX", "zip": "77046"}, "former-company": {"former-conformed-name": "EQUUS II INC", "date-changed": "19970422"}}
text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C. 20549
  FORM 10-Q
  (Mark One)
  x
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the quarterly period ended March 31,
  2013
  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
  incorporation or organization)
  (I.R.S. Employer
  Identification No.)
  Eight Greenway Plaza, Suite 930 Houston, Texas
  77046
  (Address of principal executive offices)
  (Zip Code)
  Registrant's telephone number,
  including area code: (713) 529-0900
  Indicate by check mark whether the registrant
  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
  preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject
  to such filing requirements for the past 90 days.    Yes
  x
  No
  ¨
  Indicate by check mark whether the registrant
  has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
  and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter
  period that the registrant was required to submit and post such files).    Yes
  ¨
  No
  ¨
  Indicate by check mark whether the registrant
  is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and
  large accelerated filer" in Rule 12b-2 of the Exchange Act.
  Large accelerated filer
  ¨
  Accelerated filer
  ¨
  Non-accelerated filer
  x
  Smaller
  Reporting Company
  ¨
  Indicate by check mark whether the registrant
  is a shell company.    Yes
  ¨
  No
  x
  There were 10,561,646 shares of the registrant's
  common stock, $.001 par value, outstanding, as of May 15, 2013.
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  (A Delaware Corporation)
  INDEX
  PAGE
  PART I. FINANCIAL INFORMATION
  Item 1. Financial Statements
  Balance Sheets
  3
  Statements of Operations
  4
  Statements of Changes in Net Assets
  5
  Statements of Cash Flows
  6
  Supplemental Information—Selected Per Share Data and Ratios
  7
  Schedule of Investments
  8
  Notes to Financial Statements
  12
  Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
  22
  Item 3. Quantitative and Qualitative Disclosure about Market Risk
  26
  Item 4. Controls and Procedures
  27
  PART II. OTHER INFORMATION
  Item 1. Legal Proceedings
  27
  Item 1A. Risk Factors
  28
  Item 6. Exhibits
  29
  SIGNATURE
  30
  Table of Contents
  2
  EQUUS TOTAL RETURN, INC.
  BALANCE SHEETS
  Part
  I. Financial Information
  Item  1.
  Financial Statements
  March 31,
  2013
  December 31,
  2012
  (in thousands, except per share amounts)
  (Unaudited)
  Assets
  Investments in portfolio securities at fair value:
  Control investments (cost at  $15,569 and $15,479 respectively)
  $
  6,893
  $
  7,419
  Affiliate investments (cost at $350 and $350 respectively)
  150
  150
  Non-affiliate investments (cost at $10,616 and $10,625 respectively)
  1,582
  1,663
  Total investments in portfolio securities at fair value
  8,625
  9,232
  Cash and cash equivalents
  22,761
  23,687
  Accounts receivable and other
  221
  71
  Accrued interest receivable
  167
  293
  Total assets
  31,774
  33,283
  Liabilities and net assets
  Accounts payable and accrued liabilities
  321
  214
  Accounts payable to related parties
  37
  194
  Total liabilities
  358
  408
  Commitments and contingencies
  Net assets
  $
  31,416
  $
  32,875
  Net assets consist of:
  Common stock, par value
  $
  10
  $
  10
  Capital in excess of par value
  61,495
  61,495
  Undistributed net investment losses
  (12,179
  )
  (11,408
  )
  Unrealized depreciation of portfolio securities, net
  (17,910
  )
  (17,222
  )
  Total net assets
  $
  31,416
  $
  32,875
  Shares of common stock issued and outstanding, $.001 par value, 50,000 shares authorized
  10,562
  10,562
  Shares of preferred stock issued and outstanding, $.001 par value, 5,000 shares authorized
  —
  —
  Net asset value per share
  $
  2.97
  $
  3.11
  The accompanying notes are an integral part of these financial statements.
  Table of Contents
  3
  EQUUS TOTAL RETURN, INC.
  STATEMENTS OF OPERATIONS
  (Unaudited)
  Three
      months ended March 31,
  (in thousands,
      except per share amounts)
  2013
  2012
  Investment income (loss), net:
  Interest income (loss), net:
  Control
      investments
  $
  (132
  )
  $
  140
  Affiliate investments
  —
  —
  Non-affiliate
      investments
  36
  87
  Total
      interest income (loss), net
  (96
  )
  227
  Interest from
      temporary cash investments
  —
  —
  Total investment
      income (loss), net
  (96
  )
  227
  Expenses:
  Professional fees
  268
  283
  Compensation expense
  239
  199
  Director fees and expenses
  102
  140
  General and administrative expense
  38
  72
  Mailing, printing and other expenses
  23
  25
  Taxes
  5
  5
  Interest expense
  —
  1
  Total
      expenses
  675
  725
  Net investment loss
  (771
  )
  (498
  )
  Net unrealized depreciation of portfolio securities:
  End of period
  (17,910
  )
  (17,398
  )
  Beginning of period
  (17,222
  )
  (17,399
  )
  Net change in unrealized depreciation
      of portfolio securities
  (688
  )
  1
  Net decrease in net assets resulting from
      operations
  $
  (1,459
  )
  $
  (497
  )
  Net decrease in net assets resulting from operations
      per share:
  Basic
      and diluted
  $
  (0.14
  )
  $
  (0.05
  )
  Weighted average shar
  es outstanding:
  Basic
      and diluted
  10,562
  10,562
  The accompanying notes are an integral
  part of these financial statements.
  Table of Contents
  4
  EQUUS TOTAL RETURN, INC.
  STATEMENTS OF CHANGES IN NET ASSETS
  (Unaudited)
  Three months ended March 31,
  (in thousands)
  2013
  2012
  Net decrease in net assets resulting from operations
  $
  (1,459
  )
  $
  (497
  )
  Net assets at beginning of period
  32,875
  38,148
  Net assets at end of period
  $
  31,416
  $
  37,651
  The accompanying notes are an integral
  part of these financial statements.
  Table of Contents
  5
  EQUUS TOTAL RETURN, INC.
  STATEMENTS OF CASH FLOWS
  (Unaudited)
  Three months ended March 31,
  (in thousands)
  2013
  2012
  Reconciliation of decrease in net assets resulting from operations to net cash
  used in operating activities:
  Net decrease in net assets resulting from operations
  $
  (1,459
  )
  $
  (497
  )
  Adjustments to reconcile net decrease in net assets resulting from operations to net cash
  used in operating activities:
  Net change in unrealized (appreciation) depreciation of portfolio securities
  688
  (1
  )
  Changes in operating assets and liabilities:
  Purchase of portfolio securities
  (90
  )
  —
  Principal payments received from portfolio securities
  9
  70
  Sales of temporary cash investments, net
  —
  (2,020
  )
  Increase in accounts receivable and other
  (150
  )
  (53
  )
  (Increase) decrease in accrued interest receivable
  126
  (227
  )
  Increase in accounts payable and accrued liabilities
  107
  163
  Increase (decrease) in accounts payable to related parties
  (157
  )
  48
  Net cash used in operating activities
  (926
  )
  (2,517
  )
  Cash flows from financing activities:
  Borrowings under margin account
  —
  8,000
  Repayments under margin account
  —
  (6,000
  )
  Net cash provided by financing activities
  —
  2,000
  Net decrease in cash and cash equivalents
  (926
  )
  (517
  )
  Cash and cash equivalents at beginning of period
  23,687
  16,813
  Cash and cash equivalents at end of period
  $
  22,761
  $
  16,296
  Supplemental disclosure of cash flow information:
  Interest paid
  $
  —
  $
  1
  Income taxes paid
  $
  5
  $
  5
  The accompanying notes are an integral
  part of these financial statements.
  Table of Contents
  6
  EQUUS TOTAL RETURN, INC.
  SUPPLEMENTAL INFORMATION—SELECTED PER
  SHARE DATA AND RATIOS
  (Unaudited)
  Three months ended March 31,
  2013
  2012
  Investment income (loss), net
  $
  (0.01
  )
  $
  0.02
  Expenses
  0.06
  0.07
  Net investment loss
  (0.07
  )
  (0.05
  )
  Net realized gain (loss)
  —
  —
  Net change in unrealized depreciation
  (0.07
  )
  —
  Net decrease in net assets
  (0.14
  )
  (0.05
  )
  Net assets at beginning of period
  3.11
  3.61
  Net assets at end of period, basic and diluted
  $
  2.97
  $
  3.56
  Weighted average number of shares outstanding during period,
  in thousands
  10,562
  10,562
  Market price per share:
  Beginning of period
  $
  2.36
  $
  2.24
  End of period
  $
  2.16
  $
  2.27
  Selected information and ratios:
  Ratio of expenses to average net assets
  2.10
  %
  1.91
  %
  Ratio of net investment loss to average net assets
  (2.40
  %)
  (1.31
  %)
  Ratio of net decrease in net assets resulting from operations to average net assets
  (4.54
  %)
  (1.31
  %)
  Total return on market price
  (1)
  (8.47
  %)
  1.34
  %
  (1)
  Total
  return = [(ending market price per share - beginning price per share) / beginning market price per share
  ].
  The accompanying notes are an integral
  part of these financial statements.
  Table of Contents
  7
  EQUUS TOTAL RETURN, INC.
  SCHEDULE OF INVESTMENTS
  March 31, 2013
  (Unaudited)
  (in thousands, except share data)
  Name and Location of
  Date of Initial
  Cost of
  Fair
  Portfolio Company
  Industry
  Investment
  Investment
  Principal
  Investment
  Value
  (1)
  Control
      Investments:  Majority-owned
  (3)
  :
  Equus Energy, LLC
  Houston, TX
  Energy
  December 2011
  Member interest (100%)
  $
  7,050
  $
  6,623
  Equus Media Development Company, LLC
  Houston, TX
  Media
  January 2007
  Member interest (100%)
  3,000
  146
  Spectrum Management, LLC Carrolton,
      TX
  Business products and services
  December 1999
  285,000 units of Class A member interest (92.1%/82.5% fully diluted)
  2,850
  -
  16% subordinated promissory notes due 11/11
  (5)
  $
  2,669
  2,669
  124
  5,519
  124
  Total
      Control Investments: Majority-owned (represents 79.9% of total investments at fair value)
  $
  15,569
  $
  6,893
  Affiliate Investments
  (4)
  :
  PalletOne, Inc
  Bartow, FL
  Shipping products and services
  October 2001
  350,000 shares of common stock (18.70%)
  $
  350
  $
  150
  Total
      Affiliate Investments (represents 1.7% of total investments at fair value)
  $
  350
  $
  150
  Non-Affiliate Investments
      (less than 5% owned):
  The Bradshaw Group Richardson, TX
  Business products and services
  May 2000
  576,828 Class B shares (12.25%)
      preferred     stock
  $
  1,795
  $
  -
  38,750 Class C shares preferred stock
  -
  -
  788,649 Class D shares 15% preferred stock
  -
  -
  2,218,109 Class E shares 8% preferred stock
  -
  -
  Warrant to buy 2,229,450 shares of common stock through 5/16
  -
  -
  1,795
  -
  Infinia Corporation
  Ogden, UT
  Alternative energy
  June 2007
  115,180 shares common stock (0.06%)
  8,000
  -
  Option to purchase 16,000 shares of common stock at $6.50 per
      share through 12/12
  -
  -
  8,000
  -
  Orco Property Group
  Paris,
      France
  Real estate
  April 2011
  73,666 shares common stock
  125
  202
  10% Promissory note due
  2/2018
  (2)
  $
  696
  696
  1,380
  821
  1,582
  Trulite, Inc.
  Columbia,
      SC
  Alternative energy
  August 2008
  Warrants to buy 8,934,211 shares
      of common stock at $0.01 - $0.38 per share through 11/15
  -
  -
  Total
      Non-Affiliate Investments (represents 18.4% of total investments at fair value)
  $
  10,616
  $
  1,582
  Total Investment in Portfolio Securities
  $
  26,535
  $
  8,625
  (1)
  See Note 3 to the financial statements, Valuation
  of Investments.
  (2)
  Income-producing.
  (3)
  Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more
  than 50% of the voting securities of the company.
  (4)
  Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least
  5% but not more than 25% voting securities of the company.
  (5)
  Non-income producing.
  The accompanying notes are an integral
  part of these financial statements.
  Table of Contents
  8
  EQUUS TOTAL RETURN, INC.
  SCHEDULE OF INVESTMENTS – (Continued)
  March 31, 2013
  (Unaudited)
  Except for our holding of ordinary shares
  of Orco Property Group S.A. ("OPG"), substantially all of our portfolio securities are restricted from public sale
  without prior registration under the Securities Act of 1933 or other relevant foreign regulatory authority. We negotiate certain
  aspects of the method and timing of the disposition of our investment in each portfolio company, including registration rights
  and related costs.
  We may invest up to 30% of our assets
  in non-qualifying portfolio investments, as permitted by the Investment Company Act of 1940 (hereafter, the "1940 Act").
  Specifically, we may invest up to 30% of our assets in entities that are not considered "eligible portfolio companies"
  (as defined in the 1940 Act), including companies located outside of the United States, entities that are operating pursuant to
  certain exceptions under the 1940 Act, and publicly-traded entities with a market capitalization exceeding $250 million. As of
  March 31, 2013, except for our holdings in OPG, all of our investments are in enterprises that are considered eligible portfolio
  companies under the 1940 Act, and for which we provide significant managerial assistance.
  Our investments in portfolio securities
  consist of the following types of securities as of March 31, 2013 (in thousands):
  Type of Securities
  Cost
  Fair Value
  Fair Value as
  Percentage of
  Net
                                                                                  Assets
  Limited liability company investments
  $
  12,900
  $
  6,769
  21.6
  %
  Secured and subordinated debt
  3,365
  1,504
  4.8
  %
  Common stock
  8,475
  352
  1.1
  %
  Preferred stock
  1,795
  —
  0.0
  %
  Total
  $
  26,535
  $
  8,625
  27.5
  %
  Interest payments are being received and/or accrued on notes with
  a fair value of $1.4 million, while accrued interest has been impaired on notes receivable included in secured and subordinated
  debt with a fair value of $0.1 million.
  The following is a summary by industry of
  the Fund's investments in portfolio securities as of March 31, 2013 (in thousands):
  Industry
  Fair Value
  Fair Value as
  Percentage of
  Net Assets
  Energy
  $
  6,623
  21.1
  %
  Real estate
  1,582
  5.0
  %
  Business products and services
  124
  0.4
  %
  Shipping products and services
  150
  0.5
  %
  Media
  146
  0.5
  %
  Total
  $
  8,625
  27.5
  %
  The accompanying notes are an integral
  part of these financial statements.
  Table of Contents
  9
  EQUUS
  TOTAL RETURN, INC.
  SCHEDULE OF INVESTMENTS
  DECEMBER 31, 2012
  (in thousands, except share data)
  Name and Location of
  Date of Initial
  Cost of
  Fair
  Portfolio Company
  Industry
  Investment
  Investment
  Principal
  Investment
  Value
  (
  1)
  Control Investments: Majority-owned
  (3)
  :
  Equus Energy, LLC
  Houston, TX
  Energy
  December 2011
  Member interest (100%)
  $
  7,050
  $
  6,855
  Equus Media Development Company, LLC
  Houston, TX
  Media
  January 2007
  Member interest (100%)
  3,000
  146
  Spectrum Management, LLC
  Carrolton, TX
  Business products and services
  December 1999
  285,000 units of Class A member interest (92.1%/82.5% fully diluted)
  2,850
  -
  16% subordinated promissory notes due 11/11
  (5)
  $
  2,579
  2,579
  418
  5,429
  418
  Total Control Investments: Majority-owned (represents 80.4% of total investments at fair value)
  $
  15,479
  $
  7,419
  Affiliate Investments
  (4)
  :
  PalletOne, Inc.
  Bartow, FL
  Shipping products and services
  October 2001
  350,000 shares of common stock (18.70%)
  $
  350
  $
  150
  Total Affiliate Investments (represents 1.6% of total investments at fair value)
  $
  350
  $
  150
  Non-Affiliate Investments (less than 5% owned):
  The Bradshaw Group
  Richardson, TX
  Business products and services
  May 2000
  576,828 Class B shares (12.25%)
  preferred stock
  $
  1,795
  $
  -
  38,750 Class C shares preferred stock
  -
  -
  788,649 Class D shares 15% preferred stock
  -
  -
  2,218,109 Class E shares 8% preferred stock
  -
  -
  Warrant to buy 2,229,450 shares of common stock through 5/16
  -
  -
  1,795
  -
  Infinia Corporation
  Ogden, UT
  Alternative energy
  June 2007
  115,180 shares common stock (0.06%)
  8,000
  -
  Option to purchase 16,000 shares of common stock at $6.50 per share through 12/12
  -
  -
  8,000
  -
  Orco Property Group S.A.
  Paris, France
  Real estate
  April 2011
  73,666 shares common stock
  125
  238
  10% Promissory note due 2/18
  (2)
  $
  705
  705
  1,425
  830
  1,663
  Trulite, Inc.
  Columbia, SC
  Alternative energy
  August 2008
  Warrants to buy 8,934,211 shares of common stock at $0.01 - $0.38 per share through 11/15
  -
  -
  Total Non-Affiliate Investments (represents 18.0% of total investments at fair value)
  $
  10,625
  $
  1,663
  Total Investment in Portfolio Securities
  $
  26,454
  $
  9,232
  (1)
  See Note 3 to the financial statements, Valuation
  of Investments.
  (2)
  Income-producing.
  (3)
  Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more
  than 50% of the voting securities of the company.
  (4)
  Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least
  5% but not more than 25% voting securities of the company.
  (5)
  Non-income producing.
  The accompanying
  notes are an integral part of these financial statements.
  Table of Contents
  10
  EQUUS TOTAL RETURN,
  INC.
  SCHEDULE OF INVESTMENTS
  – (Continued)
  DECEMBER 31, 2012
  (in thousands, except
  share data)
  Substantially all of our portfolio securities
  are restricted from public sale without prior registration under the Securities Act of 1933. We negotiate certain aspects of the
  method and timing of the disposition of our investment in each portfolio company, including registration rights and related costs.
  We may invest up to 30% of our assets in non-qualifying
  portfolio investments, as permitted by the 1940 Act. Specifically, we may invest up to 30% of our assets in entities that are not
  considered "eligible portfolio companies" (as defined in the 1940 Act), including companies located outside of the
  United States, entities that are operating pursuant to certain exceptions under the 1940 Act, and publicly-traded entities with
  a market capitalization exceeding $250 million. As of December 31, 2012, except for our holdings in OPG, all of our investments
  are in enterprises that are considered eligible portfolio companies under the 1940 Act, and for which we provide significant managerial
  assistance.
  Our investments in portfolio securities consist
  of the following types of securities as of December 31, 2012 (in thousands):
  Type of Securities
  Cost
  Fair Value
  Fair Value as Percentage of
  Net Assets
  Limited liability company investments
  $
  12,900
  $
  7,001
  21.3
  %
  Secured and subordinated debt
  3,284
  1,843
  5.6
  %
  Common stock
  8,475
  388
  1.2
  %
  Preferred stock
  1,795
  —
  0.0
  %
  Total
  $
  26,454
  $
  9,232
  28.1
  %
  Interest payments are being received and/or
  accrued on notes with a fair value of $1.4 million, while accrued interest has been impaired on notes receivable included in secured
  and subordinated debt with a fair value of $0.4 million.
  The following is a summary by industry of our
  investments in portfolio securities as of December 31, 2012 (in thousands):
  Industry
  Fair Value
  Fair Value as Percentage of
  Net Assets
  Energy
  $
  6,855
  20.8
  %
  Real estate
  1,663
  5.1
  %
  Business products and services
  418
  1.3
  %
  Shipping products and services
  150
  0.5
  %
  Media
  146
  0.4
  %
  Alternative energy
  —
  0.0
  %
  Total
  $
  9,232
  28.1
  %
  The accompanying notes are an integral part
  of these financial statements.
  Table of Contents
  11
  EQUUS TOTAL RETURN, INC.
  NOTES TO FINANCIAL STATEMENTS
  March 31, 2013
  (Unaudited)
  (1)
  Description of Business and Basis of Presentation
  Description of Business
  — Equus
  Total Return, Inc. (
  "we," "us," "our," "Equus," the
  "Company," and the "Fund
  "), a Delaware corporation, was formed by Equus Investments II, L.P.
  (the "Partnership") on August 16, 1991. On July 1, 1992, the Partnership was reorganized and all of the assets and
  liabilities of the Partnership were transferred to the Fund in exchange for shares of common stock of the Fund. Our shares trade
  on the New York Stock Exchange under the symbol 'EQS'. On August 11, 2006, our shareholders approved a change of the
  Fund's investment strategy to a total return investment objective. This new strategy seeks to provide the highest total return,
  consisting of capital appreciation and current income. In connection with this strategic investment change, the shareholders also
  approved the change of name from Equus II Incorporated to Equus Total Return, Inc.
  We attempt to maximize the return to stockholders
  in the form of current investment income and long-term capital gains by investing in the debt and equity securities of companies
  with a total enterprise value of between $5.0 million and $75.0 million, although we may engage in transactions with smaller or
  larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through acquisition
  or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations. Our income-producing
  investments consist principally of debt securities including subordinate debt, debt convertible into common or preferred stock,
  or debt combined with warrants and common and preferred stock.
  Debt and preferred equity financing may
  also be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with the
  financing.
  We seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued
  by privately-owned companies in transactions negotiated directly with such companies.
  Given market conditions
  over the past several years and the performance of our portfolio, our management and Board of Directors believe it is prudent to
  continue to review alternatives to refine and further clarify the current strategies.
  We elected to be treated as a Business Development
  Company ("BDC") under the Investment Company Act of 1940 ("1940 Act"). We currently qualify as a regulated
  investment company ("RIC") for federal income tax purposes and, therefore, are not required to pay corporate income
  taxes on any income or gains that we distribute to our stockholders. We have certain wholly owned taxable subsidiaries ("Taxable
  Subsidiaries") each of which holds one or more portfolio investments listed on our Schedules of Investments. The purpose
  of these Taxable Subsidiaries is to permit us to hold certain income-producing investments or portfolio companies organized as
  limited liability companies, or LLCs, (or other forms of pass-through entities) and still satisfy the RIC tax requirement that
  at least 90% of our gross revenue for income tax purposes must consist of investment income. Absent the Taxable Subsidiaries, a
  portion of the gross income of these income-producing investments or of any LLC (or other pass-through entity) portfolio investment,
  as the case may be, would flow through directly to us for the 90% test. To the extent that such income did not consist of investment
  income, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant federal income taxes.
  The income of the LLCs (or other pass-through entities) owned by Taxable Subsidiaries is taxed to the Taxable Subsidiaries and
  does not flow through to us, thereby helping us preserve our RIC status and resultant tax advantages. We do not consolidate the
  Taxable Subsidiaries for income tax purposes and they may generate income tax expense because of the Taxable Subsidiaries'
  ownership of the portfolio investments. We reflect any such income tax expense on our Statements of Operations.
  Basis of Presentation
  —In accordance
  with Article 6 of Regulation S-X under the Securities Act of 1933 and Securities Exchange Act of 1934, we do not consolidate portfolio
  company investments, including those in which we have a controlling interest. Our interim unaudited financial statements were prepared
  in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information
  and in accordance with the requirements of reporting on Form 10-Q and Article 10 of Regulation S-X, under the Securities Exchange
  Act of 1934, as amended. Accordingly, they are unaudited and exclude some disclosures required for annual financial statements.
  Management believes it has made all adjustments, consisting solely of normal recurring accruals, necessary for the fair presentation
  of these interim financial statements.
  The results of operations for the three months
  ended March 31, 2013 are not necessarily indicative of results that ultimately may be achieved for the year. The interim unaudited
  financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in
  the Fund's Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission
  ("SEC").
  Table of Contents
  12
  (2)
  Liquidity and Financing Arrangements
  Liquidity
  —There are several factors
  that may materially affect our liquidity during the reasonably foreseeable future. We view this period as the twelve month period
  from the date of the financial statements in this Form 10-Q,
  i.e
  ., the period through March 31, 2014.
  We are evaluating the impact of current market
  conditions on our portfolio company valuations and their ability to provide current income. We have followed valuation techniques
  in a consistent manner; however, we are cognizant of current market conditions that might affect future valuations of portfolio
  securities. We believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements and to finance
  routine capital expenditures through the next twelve months.
  Cash and Cash Equivalents
  —As of
  March 31, 2013, we had cash and cash equivalents of $22.8 million. We had $8.6 million of our net assets of $31.4 million invested
  in portfolio securities.
  As of December 31, 2012, we had cash and cash
  equivalents of $23.7 million. We had $9.2 million of our net assets of $32.9 million invested in portfolio securities.
  Dividends
  — We will pay out net
  investment income and/or realized capital gains, if any, on an annual basis as required under the 1940 Act.
  Investment Commitments
  —As of March
  31, 2013, we had no outstanding commitments to our portfolio company investments.
  Under certain circumstances, we may be called
  on to make follow-on investments in certain portfolio companies. If we do not have sufficient funds to make follow-on investments,
  the portfolio company in need of the investment may be negatively impacted. Also, our equity interest in the estimated fair value
  of the portfolio company could be reduced.
  RIC Borrowings, Restricted Cash and Temporary
  Cash Investments
  —We may periodically borrow sufficient funds to maintain the Fund's RIC status by utilizing a margin
  account with a securities brokerage firm. There is no assurance that such arrangement will be available in the future. If we are
  unable to borrow funds to make qualifying investments, we may no longer qualify as a RIC. We would then be subject to corporate
  income tax on the Fund's net investment income and realized capital gains, and distributions to stockholders would be subject
  to income tax as ordinary dividends. Failure to continue to qualify as a RIC could be materially adverse to us and our stockholders.
  We had no RIC borrowings or restricted cash
  as of March 31, 2013 and December 31, 2012, respectively.
  Certain Risks and Uncertainties
  —
  Economic conditions since 2008 and resulting market dislocations have resulted in a significant decline in the availability of
  debt and equity. Generally, the limited amount of available debt financing has shorter maturities, higher interest rates and fees,
  and more restrictive terms than debt facilities available in the past. In addition, during these years and continuing into the
  first three months of 2013, the price of our common stock continued to fall well below our net asset value, thereby making it undesirable
  to issue additional shares of our common stock. Because of these challenges, our near-term strategies shifted from originating
  debt and equity investments to preserving liquidity necessary to meet our operational needs. Key initiatives that we have previously
  undertaken to provide necessary liquidity include monetizations, the suspension of dividends and the internalization of management.
  Although we cannot assure you that such initiatives will be sufficient, we believe we have sufficient liquidity to meet our 2013
  operating requirements.
  (3)
  Significant Accounting Policies
  The following is a summary of significant accounting
  policies followed by the Fund in the preparation of its financial statements:
  Use of Estimates
  —The preparation
  of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts
  and disclosures in the financial statements. Although we believe the estimates and assumptions used in preparing these financial
  statements and related notes are reasonable in light of known facts and circumstances, actual results could differ from those estimates.
  Table of Contents
  13
  Valuation of Investments
  —Portfolio
  investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the determination
  of net assets. Valuations of portfolio securities are performed in accordance with accounting principles generally accepted in
  the United States of America and the financial reporting policies of the SEC. The applicable methods prescribed by such principles
  and policies are described below:
  Publicly-traded portfolio securities
  —Investments
  in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
  the valuation date.
  Privately-held portfolio securities
  —The
  fair value of investments for which no market exists is determined on the basis of procedures established in good faith by our
  Board of Directors. As a general principle, the current "fair value" of an investment would be the amount we might
  reasonably expect to receive for it upon its current sale, in an orderly manner. Appraisal valuations are necessarily subjective
  and the estimated values arrived at by the Fund may differ materially from amounts actually received upon the disposition of portfolio
  securities.
  Thinly Traded and Over-the-Counter Securities
  —Generally,
  we value securities that are traded in the over-the-counter market or on a stock exchange at the average of the prevailing bid
  and ask prices on the date of the relevant period end. However, we may apply a discount to the market value of restricted or thinly
  traded public securities to reflect the impact that these restrictions have on the value of these securities. We review factors,
  including the trading volume, total securities outstanding and our percentage ownership of securities to determine whether the
  trading levels are active (Level 1) or inactive (Level 2) or unobservable (Level 3). These types of securities represented 16.0%
  and 15.4% of our investments in portfolio securities as of March 31, 2013 and December 31, 2012, respectively. We utilized independent
  pricing services with certain of our fair value estimates. To corroborate "bid/ask" quotes from independent pricing
  services, we perform a market-yield approach to validate prices obtained or obtain other evidence.
  During the first twelve months after an investment
  is made, the original investment value is utilized to determine the fair value unless significant developments have occurred during
  this twelve month period which would indicate a material effect on the portfolio company (such as results of operations or changes
  in general market conditions). After the twelve month period, or if material events have occurred within the twelve month period,
  we consider a two-step process when appraising investments of privately held companies. The first step involves determining the
  enterprise value of the portfolio company. During this step, we consider three different valuation approaches: a market approach,
  an income approach, and an asset approach. The particular facts and circumstances of each portfolio company determine which approach,
  or combination of approaches, will be utilized. The second step when appraising equity investments of privately held companies
  involves allocating value to the various debt and equity securities of the company. We allocate value to these securities based
  on their relative priorities. For equity securities such as warrants, we may also incorporate alternative methodologies including
  the Black-Scholes Option Pricing Model.
  Market approach
  —The market approach
  typically employed by our management calculates the enterprise value of a company as a multiple of earnings before interest,
  taxes, depreciation and amortization ("EBITDA") generated by the company for the trailing twelve month period. 
  Adjustments to the company's EBITDA, including those for non-recurring items, may be considered. Multiples are estimated
  based on current market conditions and past experience in the private company marketplace and are subjective in nature. We will
  apply liquidity and other discounts it deems appropriate to equity valuations where applicable. We may also use, when available,
  third-party transactions in a portfolio company's securities as the basis of valuation (the "private market method").
  The private market method will be used only with respect to completed transactions or firm offers made by sophisticated, independent
  investors.
  Income approach
  —The income approach
  typically utilized by our management calculates the enterprise value of a company utilizing a discounted cash flow model incorporating
  projected future cash flows of the company.  Projected future cash flows consider the historical performance of the company
  as well as current and projected market participant performance. Discount rates are estimated based on current market conditions
  and past experience in the private company marketplace and are subjective in nature. We will apply liquidity and other discounts
  we deem appropriate to equity valuations where applicable.
  Asset approach
  —We consider the
  asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances indicative of
  a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow to meet the principal
  and interest payments on its indebtedness; 2) is not successful in refinancing its debt upon maturity; 3) we believe the credit
  quality of a loan has deteriorated due to changes in the business and underlying asset or market conditions which may result in
  the company's inability to meet future obligations; or 4) the portfolio company's reorganization or bankruptcy. Consideration
  is also given as to whether a liquidation event would be orderly or forced.
  Table of Contents
  14
  We base adjustments upon such factors as the
  portfolio company's earnings, cash flow and net worth, the market prices for similar securities of comparable companies,
  an assessment of the company's current and future financial prospects and various other factors and assumptions. In the case
  of unsuccessful operations, we may base a portfolio company's fair value upon the company's estimated liquidation value.
  Fair valuations are necessarily subjective, and management's estimate of fair value may differ materially from amounts actually
  received upon the disposition of its portfolio securities. Also, any failure by a portfolio company to achieve its business plan
  or obtain and maintain its financing arrangements could result in increased volatility and result in a significant and rapid change
  in its value.
  Our general intent is to hold our loans to
  maturity when appraising our privately held debt investments. As such, we believe that the fair value will not exceed the cost
  of the investment. However, in addition to the previously described analysis involving allocation of value to the debt instrument,
  we perform a yield analysis to determine if a debt security has been impaired.
  The Audit Committee of the Board of Directors
  may engage independent, third-party valuation firms to conduct independent appraisals and review management's preliminary
  valuations of each privately-held investment in order to make their own independent assessment. Any third-party valuation data
  would be considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair values
  for all privately-held securities based on all relevant factors to the Board of Directors for final approval.
  Because of the inherent uncertainty of the
  valuation of portfolio securities which do not have readily ascertainable market values, amounting to $8.4 million and $9.0 million
  as of March 31, 2013 and December 31, 2012, respectively, our fair value determinations may materially differ from the values that
  would have been used had a ready market existed for the securities. As of March 31, 2013 and December 31, 2012 respectively, one
  of the Fund's portfolio investments, the 73,666 ordinary shares of Orco Property Group, S.A. ("OPG"), was publicly
  listed on the NYSE Euronext Paris Exchange.
  On a daily basis, we adjust our net asset value
  for the changes in the value of our publicly held securities, if applicable, and material changes in the value of private securities,
  generally determined on a quarterly basis or as announced in a press release, and reports those amounts to Lipper Analytical Services,
  Inc. Weekly and daily net asset values appear in various publications, including
  Barron's
  and
  The Wall Street Journal
  .
  Foreign Exchange
  —We record temporary
  changes in foreign exchange rates of portfolio securities denominated in foreign currencies as changes in fair value. These changes
  are therefore reflected as unrealized gains or losses until realized.
  Investment Transactions
  —Investment
  transactions are recorded on the accrual method. Realized gains and losses on investments sold are computed on a specific identification
  basis.
  We classify our investments in accordance with
  the requirements of the 1940 Act. Under the 1940 Act, "Control Investments" are defined as investments in companies
  in which we own more than 25% of the voting securities or maintain greater than 50% representation on the portfolio company's
  governing board. Under the 1940 Act, "Affiliate Investments" are defined as those non-control investments in companies
  in which we own between 5% and 25% of the voting securities. Under the 1940 Act, "Non-affiliate Investments" are defined
  as investments that are neither Control Investments nor Affiliate Investments.
  Interest Income Recognition
  —We
  record interest income, adjusted for amortization of premium and accretion of discount, on an accrual basis to the extent that
  we expect to collect such amounts. We stop accruing interest on investments when we determine that interest is no longer collectible.
  We may also impair the accrued interest when we determine that all or a portion of the current accrual is uncollectible. If we
  receive any cash after determining that interest is no longer collectible, we treat such cash as payment on the principal balance
  until the entire principal balance has been repaid, before we recognize any additional interest income. We accrete or amortize
  discounts and premiums on securities purchased over the life of the respective security using the effective yield method. The amortized
  cost of investments represents the original cost adjusted for the accretion of discount and/or amortization of premium on debt
  securities.
  Payment in Kind Interest (PIK)
  —We
  have loans in our portfolio that may pay PIK interest. We add PIK interest, if any, computed at the contractual rate specified
  in each loan agreement, to the principal balance of the loan and record it as interest income. To maintain our status as a RIC,
  we must pay out to stockholders this non-cash source of income in the form of dividends even if we have not yet collected any cash
  in respect of such investments.
  Cash Flows
  —For purposes of the
  Statements of Cash Flows, we consider all highly liquid temporary cash investments purchased with an original maturity of three
  months or less to be cash equivalents. We include our investing activities within cash flows from operations. We exclude "Restricted
  Cash & Temporary Cash Investments" used for purposes of complying with RIC requirements from cash equivalents. See
  Note 2 for further discussion of the Fund's RIC borrowings.
  Table of Contents
  15
  Income Taxes
  —We intend to comply
  with the requirements of the Internal Revenue Code necessary for us to qualify as a RIC. So long as we comply with these requirements,
  we generally will not be subject to corporate-level federal income taxes on otherwise taxable income (including net realized capital
  gains) distributed to stockholders. Therefore, we did not record a provision for federal income taxes in our financial statements.
  We borrow money from time to time to maintain our tax status under the Internal Revenue Code as a RIC. See Note 2 for further
  discussion of our RIC borrowings.
  All corporations incorporated in the
  State of Delaware are required to file an Annual Report and to pay a franchise tax. As a result, we paid Delaware Franchise tax
  in the amount of $0.01 million, for the year ended December 31, 2012.
  Texas margin tax applies to legal entities
  conducting business in Texas. The margin tax is based on our Texas sourced taxable margin. The tax is calculated by applying a
  tax rate to a base that considers both revenue and expenses and therefore has the characteristics of an income tax. As a result,
  we did not owe state income tax for the year ended December 31, 2012.
  Fair Value Measurement
  —Fair value
  is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
  market participants at the measurement date. We have categorized all investments recorded at fair value based upon the level of
  judgment associated with the inputs used to measure their fair value. Hierarchical levels, directly related to the amount of subjectivity
  associated with the inputs to fair valuation of these assets and liabilities, are as follows:
  Level 1—Inputs are unadjusted, quoted
  prices in active markets for identical assets at the measurement date. The types of assets carried at Level 1 fair value generally
  are equities listed in active markets.
  Level 2—Inputs (other than quoted prices
  included in Level 1) are either directly or indirectly observable for the asset in connection with market data at the measurement
  date and for the extent of the instrument's anticipated life. Fair valued assets that are generally included in this category
  are warrants held in a public company.
  Level 3—Inputs reflect our best estimate
  of what market participants would use in pricing the asset at the measurement date. It includes prices or valuations that require
  inputs that are both significant to the fair value measurement and unobservable. Generally, assets carried at fair value and included
  in this category are debt, warrants and/or other equity investments held in a private company. As previously described, we consider
  a two step process when appraising investments of privately held companies. The first step involves determining the enterprise
  value of the portfolio company. During this step, we consider three different valuation approaches: a market approach, an income
  approach, and a cost approach. The particular facts and circumstances of each portfolio company determine which approach, or combination
  of approaches, will be utilized. The second step when appraising equity investments of privately held companies involves allocating
  value to the various debt and equity securities of the company. We allocate value to these securities based on their relative priorities.
  For equity securities such as warrants, we may also incorporate alternative methodologies including the Black-Scholes Option Pricing
  Model. Yield analysis is also employed to determine if a debt security has been impaired.
  We will record unrealized depreciation on investments
  when we determine that the fair value of a security is less than its cost basis, and will record unrealized appreciation when we
  determine that the fair value is greater than its cost basis.
  As of March 31, 2013, investments measured
  at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input to the valuations:
  Fair Value Measurements as of March 31, 2013
  (in thousands)
  Total
  Quoted Prices in
  Active Markets for
  Identical Assets
  (Level 1)
  Significant
      Other
  Observable Inputs
  (Level 2)
  Significant
  Unobservable
  Inputs
  (Level 3)
  Assets
  Investments:
  Control investments
  $
  6,893
  $
  —
  $
  —
  $
  6,893
  Affiliate investments
  150
  —
  —
  150
  Non-affiliate investments
  1,582
  202
  —
  1,380
  Total investments
  $
  8,625
  $
  202
  $
  —
  $
  8,423
  Table of Contents
  16
  As of December 31, 2012, investments measured
  at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input to the valuations:
  Fair
      Value Measurements As of December 31, 2012
  (in
      thousands)
  Total
  Quoted
      Prices in
  Active Markets for
  Identical Assets
  (Level 1)
  Significant
      Other
  Observable Inputs
  (Level 2)
  Significant
  Unobservable
  Inputs
  (Level 3)
  Assets
  Investments:
  Control investments
  $
  7,419
  $
  —
  $
  —
  $
  7,419
  Affiliate investments
  150
  —
  —
  150
  Non-affiliate investments
  1,663
  238
  —
  1,425
  Total investments
  $
  9,232
  $
  238
  $
  —
  $
  8,994
  The following table provides a reconciliation
  of fair value changes during the three months ended March 31, 2013 for all investments for which we determine fair value using
  unobservable (Level 3) factors:
  Fair value measurements using significant unobservable inputs (Level 3)
  (in thousands)
  Control Investments
  Affiliate Investments
  Non-affiliate Investments
  Total
  Fair value as of December 31, 2012
  $
  7,419
  $
  150
  $
  1,425
  $
  8,994
  Change in unrealized appreciation (depreciation)
  (616
  )
  —
  (36
  )
  (652
  )
  Purchases of portfolio securities
  90
  —
  —
  90
  Proceeds from sales/dispositions
  —
  —
  (9
  )
  (9
  )
  Fair value as of March 31, 2013
  $
  6,893
  $
  150
  $
  1,380
  $
  8,423
  The following table provides a reconciliation
  of fair value changes during the three months ended March 31, 2012 for all investments for which we determine fair value using
  unobservable (Level 3) factors:
  Fair value measurements using significant unobservable inputs (Level 3)
  (in thousands)
  Control Investments
  Affiliate Investments
  Non-affiliate Investments
  Total
  Fair value as of December 31, 2011
  $
  13,298
  $
  150
  $
  5,734
  $
  19,182
  Change in unrealized appreciation (depreciation)
  (13
  )
  —
  14
  1
  Proceeds from sales/dispositions
  (70
  )
  —
  —
  (70
  )
  Fair value as of March 31, 2012
  $
  13,215
  $
  150
  $
  5,748
  $
  19,113
  Significant Unobservable Inputs
  —
  Our investment portfolio is not composed of homogeneous debt and equity securities that can be valued with a small number of inputs.
  Instead, the majority of our investment portfolio is composed of complex debt and equity securities with distinct contract terms
  and conditions. As such, our valuation of each investment in our portfolio is unique and complex, often factoring in numerous different
  inputs, including historical and forecasted financial and operational performance of the portfolio company, project cash flows,
  market multiples comparable market transactions, the priority of our securities compared with those of other investors, credit
  risk, interest rates, independent valuations and reviews and other inputs.
  The following table summarizes the significant
  observable inputs in the fair value measurements of our level 3 investments by category of investment and valuation technique as
  of March 31, 2013:
  Table of Contents
  17
  Range
  (in thousands)
  Fair Value
  Valuation Techniques
  Unobservable Inputs
  Minimum
  Maximum
  Secured and subordinated debt
  $
  1,504
  Yield Analysis
  Market interest rate
  5.4
  %
  12.4
  %
  Pending Transaction
  Discount for lack of marketability
  5
  %
  15
  %
  Asset Approach
  Recovery rate
  0
  %
  100
  %
  Common stock
  150
  Pending Transaction
  Discount
  0
  %
  100
  %
  Limited liability company investments
  6,769
  Asset Approach
  Recovery rate
  0
  %
  100
  %
  $
  8,423
  (4)
  Related Party Transactions and Agreements
  Except as noted below, as compensation for
  services to the Fund, each Independent Director receives an annual fee of $20,000 paid quarterly in arrears, a fee of $2,000 for
  each meeting of the Board of Directors attended in person, a fee of $1,000 for participation in each telephonic meeting of the
  Board and a fee of $1,000 for each committee meeting attended, and reimbursement of all out-of-pocket expenses relating to attendance
  at such meetings. A quarterly fee of $15,000 is paid to the Chairman of the Audit Committee and a quarterly fee of $3,750 is paid
  to the Chairman of the Independent Directors. We may also pay other one-time or recurring fees to members of our Board of Directors
  in special circumstances. None of our interested directors receive annual fees for their service on the Board of Directors.
  In November, 2011, Equus Energy, LLC, a wholly-owned
  subsidiary of the Fund, entered into a consulting agreement with Global Energy Associates, LLC ("Global Energy") to
  provide consulting services for energy related investments. Henry W. Hankinson, Director, is a managing partner and co-founder
  of Global Energy. Payments to Global Energy totaled $18,750 for each of the three months ended March 31, 2013 and 2012.
  In respect of services provided to the Fund
  by members of the Board not in connection with their roles and duties as directors, the Fund pays a rate of $250 per hour for services
  rendered.
  (5)
  Dividends
  We will pay out net investment income and/or
  realized capital gains, if any, on an annual basis as required under the 1940 Act.
  (6)
  Portfolio Securities
  During the three months ended March 31,
  2013, we capitalized legal and consulting expenses of $0.1 million relating to Spectrum Management. We also received a
  semi-annual interest payment of $0.03 million and a 5.75% partial principal repayment of $9,000 in respect of our €1.2
  million [$1.5 million] in OPG notes.
  During the three months ended March 31, 2013,
  we did not realize any significant gains or losses on sales of portfolio securities.
  Net unrealized depreciation on investments
  increased $0.7 million during the three months ended March 31, 2013, to a net unrealized depreciation of $17.9 million.  Such
  decrease in unrealized depreciation is largely due to the following changes:
  (i)
  Decrease in fair value of Equus Energy LLC of $0.2 million due to operating expenses
  .
  (ii)
  Decrease in fair value of OPG of $0.1 million due to a decline in stock price and
  foreign exchange translation.
  (iii)
  Decrease in fair value of Spectrum Management, Inc. ("Spectrum") of
  $0.4 million due to adecline in operating performance.
  During the three months ended March 31, 2012,
  we made no follow-on investments, nor realized any significant gains or losses on sales of portfolio securities.
  Table of Contents
  18
  Net unrealized depreciation on investments
  remained relatively unchanged during the three months ended March 31, 2012, at a net unrealized depreciation of $17.4 million.
  Such decrease in depreciation is largely due to the following changes:
  (i)
  Increase in fair market value of ConGlobal Industries Holding, Inc. ("ConGlobal")
  of $0.3 million due to improved productivity.
  (ii)
  Decrease in the fair market value of Spectrum of $0.2 million due to the continued decline in
  operating performance and liquidity issues.
  (7)
  Equus Energy
  Equus Energy, LLC ("Equus
  Energy") was formed in November 2011 as a wholly-owned subsidiary of the Fund to make investments in companies in the
  energy sector, with particular emphasis on income-producing oil & gas properties. In December 2011, we contributed
  $250,000 to the capital of Equus Energy.
  On December 27, 2012 we invested an additional $6.8
  million in Equus Energy for the purpose of additional working capital and to fund the purchase of $6.6 million in working
  interests in 150 producing and non-producing oil and gas wells. The working interests include associated development rights of approximately 23,000 acres situated on 15
  separate properties in Texas and Oklahoma. The working interests range from a
  de minimus
  amount to 50% of the
  leasehold that includes these wells.
  The wells are operated by a number of experienced
  operators, including a major multinational oil and gas conglomerate which has operating responsibility for all of Equus Energy's
  40 producing well interests located in the Conger Field, a productive oil and gas field on the edge of the Permian Basin that
  has experienced successful gas and hydrocarbon extraction in multiple formations. Equus Energy, which holds a 50% working interest
  in each of these Conger Field wells, has partnered with the operator in an aggressive recompletion program of existing Conger
  Field wells to the Wolfcamp formation, a zone containing oil as well as gas and natural gas liquids. One recompletion has been
  effected since the closing date of the acquisition, with additional recompletions scheduled for the remainder of 2013 and beyond.
  Part of Equus Energy's acreage rights described above also includes a 50% working interest in possible new drilling to the
  base of the Canyon formation (appx. 8,500 feet) on 2,400 acres in the Conger Field. Also included in the interests acquired by
  Equus Energy are working interests of 7.5% and 2.5% in the Burnell and North Pettus Units, respectively, which collectively comprise
  approximately 13,000 acres are located in the area known as the "Eagle Ford Shale" play.
  We do
  not consolidate Equus Energy  or its wholly owned subsidiaries and accordingly only the value of our investment in Equus
  Energy is included on our statement of assets and liabilities. Our investment in Equus Energy  is valued in accordance with
  our normal valuation procedures and is based on the values of the underlying assets held by EQS Energy Holdings, Inc. a
  wholly-owned subsidiary of Equus Energy, net of associated liabilities.
  Table of Contents
  19
  Below is summarized consolidated
  financial information for Equus Energy as of March 31, 2013 and December 31, 2012 and for the three months ended March 31,
  2013 (in thousands).
  As of
  March 31, 2013
  December 31, 2012
  (unaudited)
  (unaudited)
  ASSETS
  Current assets
  $
  1,011
  $
  628
  Oil and gas properties, net
  6,930
  6,899
  TOTAL ASSETS
  $
  7,941
  $
  7,527
  LIABILITIES AND MEMBERS' CAPITAL
  Current liabilities
  $
  1,144
  $
  499
  Asset retirement obligations
  174
  173
  TOTAL LIABILITIES
  1,318
  672
  MEMBERS' CAPITAL
  $
  6,623
  $
  6,855
  TOTAL LIABILITIES AND MEMBERS' CAPITAL
  $
  7,941
  $
  7,527
  Revenue and direct operating expenses
       for      the various oil and gas assets included in the accompanying statements represent the net
       collective      working      and revenue      interests acquired by  Equus Energy. The revenue and direct operating
       expenses presented      herein relate      only to the      interests in the producing oil and natural gas properties and do      not represent all of      the oil and      natural gas operations of all of these properties.
       Direct operating expenses      include lease operating      expenses and production      and other related taxes. General and
       administrative expenses,      depreciation, depletion and      amortization      ("DD&A") of oil and gas
       properties and federal and state      taxes have been excluded from      direct operating      expenses in the accompanying
       statements of revenues and direct      operating expenses because the      allocation of certain expenses      would be
       arbitrary and would not be indicative of      what such costs would have been had Equus Energy been operated as
       a stand alone entity.
  The      statements of revenues      and direct operating expenses
       presented      are not indicative of the financial condition or      results of operations of       Equus Energy on a
       go forward basis due to      changes in the business and the      omission of various operating      expenses.
  Three months ended
  March 31, 2013
  (unaudited)
  OPERATING REVENUES:
  Total operating revenue
  $
  605
  OPERATING EXPENSES:
  Direct operating expenses
  328
  OPERATING PROFIT
  277
  Depletion, depreciation and amortization
  322
  General and administrative
  187
  NET INCOME (LOSS)
  $
  (232
  )
  Table of Contents
  20
  Critical
  Accounting Policies for Equus Energy
  —Equus Energy and its wholly-owned subsidiary EQS Energy Holdings, Inc.
  (collectively "the Company") follow the
  Full Cost Method of Accounting
  for oil and gas properties. Under
  the full cost method, all costs associated with property acquisition, exploration, and development activities are
  capitalized. Capitalized costs include lease acquisitions, geological and geophysical work, delay rentals, costs of drilling,
  completing and equipping successful and unsuccessful oil and gas wells and directly related costs. Gains or losses are
  normally not recognized on the sale or other disposition of oil and gas properties. Gains or losses are normally reflected
  as an adjustment to the full cost pool.
  The
  capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and
  estimated cost of dismantlement and abandonment, net of salvage value, are amortized on a unit-of-production method over the
  estimated productive life of the proved oil and gas reserves. Unevaluated oil and gas properties are excluded from this
  calculation.  Depletion and depreciation expense for the Company's oil and gas properties totaled $0.3 million for
  the quarter ending March 31, 2013.
  Capitalized
  oil and gas property costs are limited to an amount (the ceiling limitation) equal to the sum of the following:
  (a)  
  As of March 31, 2013 the present value of estimated future net revenue from the projected production of proved oil and gas reserves,
  calculated at the simple arithmetic average, first-day-of-the-month prices during the twelve-month period before the balance sheet
  date  (with consideration of price changes only to the extent provided by contractual arrangements) and a discount factor
  of 10%;
  (b)  
  The cost of investments in unproved and unevaluated properties excluded from the costs being amortized; and
  (c)  
  The lower of cost or estimated fair value of unproved properties included in the costs being amortized.
  When
  it is determined that oil and gas property costs exceed the ceiling limitation, an impairment charge is recorded to reduce its
  carrying value to the ceiling limitation.  The Company did not recognize an impairment loss on their oil and gas properties
  during 2012 or during the three months ended March 31, 2013.
  The costs
  of certain unevaluated leasehold acreage and certain wells being drilled are not amortized. The Company excludes all costs until
  proved reserves are found or until it is determined that the costs are impaired. Costs not amortized are periodically assessed
  for possible impairments or reductions in value. If a reduction in value has occurred, costs being amortized are increased.
  Revenue Recognition—
  Revenues
  are recognized for oil and natural gas sales under the sales method of accounting. Under this method, revenues are recognized
  on production as it is taken and delivered to its purchasers. The volumes sold may be more or less than the volumes entitled to,
  based on the owner's net interest in the Assets. These differences result from production imbalances, which are not significant,
  and are reflected as adjustments to prove reserves and future cash flows in the unaudited supplementary oil and gas information
  included herein.
  Accounting Policy on
  Depletion—
  The Company employs the Units of Production method whereby depletion of proved oil and gas properties is
  computed on the units-of-production method, where capitalized costs, as adjusted for future development costs and asset
  retirement obligations, are amortized over the total estimated proved reserves.
  Asset Retirement Obligations—
  The
  fair value of asset retirement obligations are recorded in the period in which they are incurred if a reasonable estimate of fair
  value can be made, and the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. 
  The fair value of the asset retirement obligation is measured using expected future cash outflows discounted at the Company's
  credit-adjusted risk-free interest rate.  Fair value, to the extent possible, should include a market risk premium for unforeseeable
  circumstances.  No market risk premium was included in the Company's asset retirement obligation fair value estimate
  since a reasonable estimate could not be made.  The liability is accreted to its then present value each period, and the
  capitalized cost is depleted or amortized over the estimated recoverable reserves using the units-of-production method.
  (8)
  Subsequent Events
  Management performed an evaluation of the Fund's
  activity through the date the financial statements were issued, noting no subsequent events.
  Table of Contents
  21
  Item 2.
  Management's
  Discussion and Analysis of Financial Condition and Results of Operations
  Overview
  Equus Total Return, Inc. (
  "we,"
  "us," "our," "Equus," the "Company," and the "Fund
  "), a
  Delaware corporation, was formed by Equus Investments II, L.P. (the "Partnership") on August 16, 1991. On July 1, 1992,
  the Partnership was reorganized and all of the assets and liabilities of the Partnership were transferred to the Fund in exchange
  for shares of common stock of the Fund. Our shares trade on the New York Stock Exchange under the symbol EQS. On August 11, 2006,
  our shareholders approved the change of the Fund's investment strategy to a total return investment objective. This new strategy
  seeks to provide the highest total return, consisting of capital appreciation and current income. In connection with this strategic
  investment change, the shareholders also approved the change of name from Equus II Incorporated to Equus Total Return, Inc.
  We attempt to maximize the return to stockholders
  in the form of current investment income and long-term capital gains by investing in the debt and equity securities of companies
  with a total enterprise value of between $5.0 million and $75.0 million, although we may engage in transactions with smaller or
  larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through acquisition
  or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations. Our income-producing
  investments consist principally of debt securities including subordinate debt, debt convertible into common or preferred stock,
  or debt combined with warrants and common and preferred stock.
  Debt and preferred equity financing may
  also be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with the
  financing.
  We seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued
  by privately-owned companies in transactions negotiated directly with such companies.
  Given market conditions
  over the past several years and the performance of our portfolio, our management and Board of Directors believe it is prudent to
  continue to review alternatives to refine and further clarify the current strategies.
  We elected to be treated as a Business
  Development Company ("BDC") under the Investment Company Act of 1940 Act ("1940 Act"). We currently
  qualify as a regulated investment company ("RIC') for federal income tax purposes and, therefore, are not
  required to pay corporate income taxes on any income or gains that we distribute to our stockholders. We have certain wholly
  owned Taxable Subsidiaries each of which holds one or more portfolio investments listed on our Schedules of Investments. The
  purpose of these Taxable Subsidiaries is to permit us to hold certain income-producing investments or portfolio companies
  organized as limited liability companies, or LLCs, (or other forms of pass-through entities) and still satisfy the RIC tax
  requirement that at least 90% of our gross revenue for income tax purposes must consist of investment income. Absent the
  Taxable Subsidiaries, a portion of the gross income of these income-producing investments or of any LLC (or other
  pass-through entity) portfolio investment, as the case may be, would flow through directly to us for the 90% test. To the
  extent that such income did not consist of investment income, it could jeopardize our ability to qualify as a RIC and,
  therefore, cause us to incur significant federal income taxes. The income of the LLCs (or other pass-through entities)
  owned by Taxable Subsidiaries is taxed to the Taxable Subsidiaries and does not flow through to us, thereby helping us preserve
  our RIC status and resultant tax advantages. We do not consolidate the Taxable Subsidiaries for income tax purposes and they may
  generate income tax expense because of the Taxable Subsidiaries' ownership of the portfolio investments. We reflect any
  such income tax expense on our Statements of Operations.
  Critical Accounting Policies
  Our financial statements are based on the selection
  and application of significant accounting policies, which require management to make significant estimates and assumptions. We
  believe that the following are some of the more critical judgment areas in the application of our accounting policies that currently
  affect our financial condition and results of operations.
  Valuation of Investments
  — Portfolio
  investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the determination
  of net assets. Valuations of portfolio securities are performed in accordance with accounting principles generally accepted in
  the United States of America and the financial reporting policies of the SEC. The applicable methods prescribed by such principles
  and policies are described below:
  Publicly-traded portfolio securities
  —Investments
  in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
  the valuation date.
  Privately-held portfolio securities
  —The
  fair value of investments for which no market exists is determined on the basis of procedures established in good faith by our
  Board of Directors. As a general principle, the current "fair value" of an investment would be the amount we might
  reasonably expect to receive for it upon its current sale, in an orderly manner. Appraisal valuations are necessarily subjective
  and the estimated values arrived at by the Fund may differ materially from amounts actually received upon the disposition of portfolio
  securities.
  Table of Contents
  22
  Thinly Traded and Over-the-Counter Securities
  —Generally,
  we value securities that are traded in the over-the-counter market or on a stock exchange at the average of the prevailing bid
  and ask prices on the date of the relevant period end. However, we may apply a discount to the market value of restricted or thinly
  traded public securities to reflect the impact that these restrictions have on the value of these securities. We review factors,
  including the trading volume, total securities outstanding and our percentage ownership of securities to determine whether the
  trading levels are active (Level 1) or inactive (Level 2) or unobservable (Level 3). These types of securities represented 16.0%
  and 15.4% of our investments in portfolio securities as of March 31, 2013 and December 31, 2012, respectively. We utilized independent
  pricing services with certain of our fair value estimates. To corroborate "bid/ask" quotes from independent pricing
  services, we perform a market-yield approach to validate prices obtained or obtain other evidence.
  During the first twelve months after an investment
  is made, the original investment amount is utilized to determine the fair value unless significant developments have occurred during
  this twelve month period which would indicate a material effect on the portfolio company (such as results of operations or changes
  in general market conditions). After the twelve month period, or if material events have occurred within the twelve month period,
  Fund management considers a two-step process when appraising investments of privately held companies. The first step involves determining
  the enterprise value of the portfolio company. During this step, our management considers three different valuation approaches:
  a market approach, an income approach, and an asset approach. The particular facts and circumstances of each portfolio company
  determine which approach, or combination of approaches, will be utilized. The second step when appraising equity investments of
  privately held companies involves allocating value to the various debt and equity securities of the company. Fund management allocates
  value to these securities based on their relative priorities. For equity securities such as warrants, the Fund may also incorporate
  alternative methodologies including the Black-Scholes Option Pricing Model.
  Market approach
  —The market approach
  typically employed by our management calculates the enterprise value of a company as a multiple of earnings before interest,
  taxes, depreciation and amortization ("EBITDA") generated by the company for the trailing twelve month period. 
  Adjustments to the company's EBITDA, including those for non-recurring items, may be considered. Multiples are estimated
  based on current market conditions and past experience in the private company marketplace and are subjective in nature. We will
  apply liquidity and other discounts we deem appropriate to equity valuations where applicable. We may also use, when available,
  third-party transactions in a portfolio company's securities as the basis of valuation (the "private market method").
  The private market method will be used only with respect to completed transactions or firm offers made by sophisticated, independent
  investors.
  Income approach
  —The income approach
  typically utilized by our management calculates the enterprise value of a company utilizing a discounted cash flow model incorporating
  projected future cash flows of the company.  Projected future cash flows consider the historical performance of the company
  as well as current and projected market participant performance. Discount rates are estimated based on current market conditions
  and past experience in the private company marketplace and are subjective in nature. We will apply liquidity and other discounts
  we deem appropriate to equity valuations where applicable.
  Asset approach
  —We consider the
  asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances indicative of
  a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow to meet the principal
  and interest payments on its indebtedness; 2) is not successful in refinancing its debt upon maturity; 3) we believe the
  credit quality of a loan has deteriorated due to changes in the business and underlying asset or market conditions which may result
  in the company's inability to meet future obligations; or 4) the portfolio company's reorganization or bankruptcy.
  Consideration is also given as to whether a liquidation event would be orderly or forced.
  We base adjustments upon such factors as the
  portfolio company's earnings, cash flow and net worth, the market prices for similar securities of comparable companies,
  an assessment of the company's current and future financial prospects and various other factors and assumptions. In the case
  of unsuccessful operations, we may base a portfolio company's fair value upon the company's estimated liquidation value.
  Fair valuations are necessarily subjective, and management's estimate of fair value may differ materially from amounts actually
  received upon the disposition of its portfolio securities. Also, any failure by a portfolio company to achieve its business plan
  or obtain and maintain its financing arrangements could result in increased volatility and result in a significant and rapid change
  in its value.
  Our general intent is to hold our loans to
  maturity when appraising its privately held debt investments. As such, we believe that the fair value will not exceed the cost
  of the investment. However, in addition to the previously described analysis involving allocation of value to the debt instrument,
  we perform a yield analysis to determine if a debt security has been impaired.
  Table of Contents
  23
  The Audit Committee of the Board of Directors
  may engage independent, third-party valuation firms to conduct independent appraisals and review management's preliminary
  valuations of each privately-held investment in order to make their own independent assessment. Any third-party valuation data
  would be considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair values
  for all privately-held securities based on all relevant factors to the Board of Directors for final approval.
  Because of the inherent uncertainty of the
  valuation of portfolio securities which do not have readily ascertainable market values, amounting to $8.4 million and $9.0 million
  as of March 31, 2013 and December 31, 2012, respectively, our fair value determinations may materially differ from the values that
  would have been used had a ready market existed for the securities. As of March 31, 2013 and December 31, 2012, respectively, one
  of the Fund's portfolio investments, the 73,666 ordinary shares of OPG, was publicly listed on the NYSE Euronext Paris Exchange
  .
  On a daily basis, we adjust our net asset value
  for the changes in the value of our publicly held securities, if applicable, and material changes in the value of private securities,
  generally determined on a quarterly basis or as announced in a press release, and reports those amounts to Lipper Analytical Services,
  Inc. Weekly and daily net asset values appear in various publications, including Barron's and
  The Wall Street Journal
  .
  Federal Income Taxes
  We intend to comply with the requirements of
  the Internal Revenue Code necessary for us to qualify as a RIC. So long as we comply with these requirements, we generally will
  not be subject to corporate-level federal income taxes on otherwise taxable income (including net realized capital gains) distributed
  to stockholders. Therefore, we did not record a provision for federal income taxes in our financial statements. As of December
  31, 2012, we had a capital loss carry-forward of $29.3 million which may be used to offset future capital gains. We may borrow
  money from time to time to maintain our status as a RIC under the Internal Revenue Code. See Note 2 for further discussion of our
  RIC borrowings.
  Interest Income Recognition
  We record interest income, adjusted for amortization
  of premium and accretion of discount, on an accrual basis to the extent that we expect to collect such amounts. We stop accruing
  interest on investments when we determine that interest is no longer collectible. We may also impair the accrued interest when
  we determine that all or a portion of the current accrual is uncollectible. If we receive any cash after determining that interest
  is no longer collectible, we treat such cash as payment on the principal balance until the entire principal balance has been repaid,
  before we recognize any additional interest income. We accrete or amortize discounts and premiums on securities purchased over
  the life of the respective security using the effective yield method. The amortized cost of investments represents the original
  cost adjusted for the accretion of discount and/or amortization of premium on debt securities.
  Payment in Kind Interest
  We have loans in our portfolio that may pay
  PIK interest. We add PIK interest, if any, computed at the contractual rate specified in each loan agreement, to the principal
  balance of the loan and record it as interest income. To maintain the Fund's status as a RIC, we must pay out to our stockholders
  this non-cash source of income in the form of dividends even if we have not yet collected any cash in respect of such investments.
  Current Market Conditions
  Overall economic conditions in the United States
  have improved since 2009, albeit marginally. However, the economic recovery has been hampered by slower growth and persistent high
  unemployment relative to historical levels. The U.S. Congressional Budget Office is forecasting continuing sluggish growth for
  the remainder of 2013, with a projected unemployment rate exceeding 7.5% at year end. Additionally, future economic expansion and
  business investment is threatened by perceptions of higher taxes and healthcare costs, as well as the high levels of government
  deficit spending.
  Notwithstanding a sharp downturn in merger
  and acquisition ("M&A") activity during the first quarter of 2013, market conditions for business transactions
  including mergers and acquisitions and private equity investments have improved since 2010, as corporations have been deleveraging
  and are holding significant amounts of cash and many have begun to focus on acquisitions as part of future growth plans. Private
  equity firms have access to historically large amounts of committed capital as private equity activity has been lower than anticipated
  for nearly three years.
  Table of Contents
  24
  Consistent with other companies in the financial
  services sector, our performance has been adversely affected. Between December 31, 2008 and December 31, 2012 our net asset value
  declined from $9.16 per share to $3.11 per share. This further impacted the trading price of our common stock, as it declined approximately
  21.9% and 10.4% during 2010 and 2011, respectively, before increasing 5.36% in 2012. As of March 31, 2013, the closing price of
  our common stock closed was $2.16, which is a discount of 27.3% to our net asset value.
  Over the past several years, we have executed
  certain initiatives to enhance liquidity, achieve a lower operational cost structure, provide more assistance to portfolio companies
  and realize certain of our portfolio investments. Specifically, we changed the composition of our Board of Directors and management,
  terminated certain of our follow-on investments, internalized the management of the Fund, suspended our managed distribution policy,
  modified our investment strategy to pursue shorter term liquidation opportunities, pursued non-cash investment opportunities, and
  sold certain of our legacy and underperforming investment holdings. We believe these actions continue to be necessary to protect
  capital and liquidity during this turbulent economic period in order to preserve and enhance shareholder value. Because our management
  is internalized, certain of our expenses should not increase commensurate with an increase in the size of the Fund and, therefore,
  we expect to achieve efficiencies in our cost structure if we are able to grow the Fund.
  Liquidity and Capital Resources
  We generate cash primarily from maturities,
  sales of securities and borrowings, as well as capital gains realized upon the sale of portfolio investments. We use cash primarily
  to make additional investments, either in new companies or as follow-on investments in the existing portfolio companies and to
  pay the dividends to our stockholders.
  Because of the nature and size of the portfolio
  investments, we may periodically borrow funds to make qualifying investments to maintain our tax status as a RIC. We often borrow
  such funds by utilizing a margin account with a securities brokerage firm. There is no assurance that such arrangement will be
  available in the future. If the Fund is unable to borrow funds to make qualifying investments, it may no longer qualify as a RIC.
  The Fund would then be subject to corporate income tax on its net investment income and realized capital gains, and distributions
  to stockholders would be subject to income tax as ordinary dividends.
  The Fund has the ability to borrow funds and
  issue forms of senior securities representing indebtedness or stock, such as preferred stock, subject to certain restrictions.
  Net taxable investment income and net taxable realized gains from the sales of portfolio investments are intended to be distributed
  at least annually, to the extent such amounts are not reserved for payment of expenses and contingencies or to make follow-on or
  new investments.
  The Fund reserves the right to retain net long-term
  capital gains in excess of net short-term capital losses for reinvestment or to pay contingencies and expenses. Such retained amounts,
  if any, will be taxable to the Fund as long-term capital gains and stockholders will be able to claim their proportionate share
  of the federal income taxes paid on such gains as a credit against their own federal income tax liabilities. Stockholders will
  also be entitled to increase the adjusted tax basis of their Fund shares by the difference between their undistributed capital
  gains and their tax credit.
  We are evaluating the impact of current market
  conditions on our portfolio company valuations and their ability to provide current income. We have followed valuation techniques
  in a consistent manner; however, we are cognizant of current market conditions that might affect future valuations of portfolio
  securities. We believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements and to
  finance routine capital expenditures through the next twelve months.
  Results of Operations
  Investment Income and Expense
  Net investment loss was $0.8 million and $0.5 million
  for the three months ended March 31, 2013 and March 31, 2012, respectively. The net investment loss for the three months
  ended March 31, 2013 resulted from the $0.1 million investment loss, due to the impairment of accrued interest income from Spectrum
  Management LLC, along with the operating expenses for the quarter totaling $0.7 million. The increase in net investment loss generated
  at March 31, 2013 compared to March 31, 2012 is due primarily to the decrease in total investment income.
  Total income (loss) from portfolio securities
  was ($0.1) million and $0.2 million for the three months ended March 31, 2013 and 2012, respectively. The $0.3 million decrease
  was primarily due to the impairment of accrued interest receivable of Spectrum Management, LLC.
  Table of Contents
  25
  Total expenses were relatively unchanged at
  $0.7 million for the three months ended March 31, 2013 and 2012, respectively.
  Realized Gains and Losses on Sales of Portfolio Securities
  During the three months ended March 31,
  2013 and 2012, we did not realize any net capital gains or losses.
  Changes in Unrealized Appreciation/Depreciation of Portfolio
  Securities
  Net unrealized depreciation on investments
  increased $0.7 million during the three months ended March 31, 2013, to a net unrealized depreciation of $17.9 million.  Such
  decrease in unrealized depreciation is largely due to the following changes:
  (i)
  Decrease in fair value of Equus Energy LLC of $0.2 million due to operating expenses
  .
  (ii)
  Decrease in fair value of OPG of $0.1 million due to adecline in stock price and
  foreign exchange translation.
  (iii)
  Decrease in fair value of Spectrum of $0.4 million due to adecline in operating
  performance.
  Net unrealized depreciation on investments
  remained relatively unchanged during the three months ended March 31, 2012, at a net unrealized depreciation of $17.4 million.
  Such decrease in depreciation is largely due to the following changes:
  (i)
  Increase in fair value of ConGlobal of $0.3 million due to improved productivity.
  (ii)
  Decrease in the fair value of Spectrum of $0.2 million due to the continued decline in operating
  performance and liquidity issues.
  Dividends
  We will pay out net investment income and/or
  realized capital gains, if any, on an annual basis as required under the Investment Company Act of 1940.
  Portfolio Investments
  During the three months ended March 31,
  2013, we capitalized legal and consulting expenses of $0.1 million relating to Spectrum Management. We also received a
  semi-annual interest payment of $0.03 million and a 5.75% partial principal repayment of $9,000 in respect of our €1.2
  million [$1.5 million] in OPG notes.
  During the three month ended March 31, 2012,
  we made no new or follow-on investments.
  Subsequent Events
  Management performed an evaluation of the Fund's
  activity through the date the financial statements were issued, noting no subsequent events.
  Item  3.
  Quantitative and Qualitative Disclosure
  about Market Risk
  We are subject to financial market risks, including
  changes in interest rates with respect to investments in debt securities and outstanding debt payable, as well as changes in marketable
  equity security prices. In the future, in addition to our investment in OPG shares and the New OPG Notes, we may invest in companies
  outside the United States, including in Europe and Asia, which would give rise to exposure to foreign currency value fluctuations.
  We do not use derivative financial instruments to mitigate any of these risks. The return on investments is generally not affected
  by foreign currency fluctuations.
  Our investments in portfolio securities consist
  of some fixed-rate debt securities. Since the debt securities are generally priced at a fixed rate, changes in interest rates do
  not directly affect interest income. In addition, changes in market interest rates are not typically a significant factor in the
  determination of fair value of these debt securities, since the securities are generally held to maturity. We determine their fair
  values based on the terms of the relevant debt security and the financial condition of the issuer.
  Table of Contents
  26
  A major portion of our investment portfolio
  consists of debt and equity investments in private companies. Modest changes in public market equity prices generally do not significantly
  impact the estimated fair value of these investments. However, significant changes in market equity prices can have a longer-term
  effect on valuations of private companies, which could affect the carrying value and the amount and timing of gains or losses realized
  on these investments. A small portion of the investment portfolio also consists of common stock in publicly traded companies. These
  investments are directly exposed to equity price risk, in that a hypothetical ten percent change in these equity prices would result
  in a similar percentage change in the fair value of these securities.
  We are classified as a "non-diversified"
  investment company under the 1940 Act, which means we are not limited in the proportion of our assets that may be invested in the
  securities of a single user. The value of one segment called "Energy" includes one portfolio company and was 21.0%
  of the net asset value and 76.8% of our investments in portfolio company securities (at fair value) as of March 31, 2013. Changes
  in business or industry trends or in the financial condition, results of operations, or the market's assessment of any single
  portfolio company will affect the net asset value and the market price of our common stock to a greater extent than would be the
  case if we were a "diversified" company holding numerous investments.
  Item  4.
  Controls
  and Procedures
  The Fund maintains disclosure controls and
  other procedures that are designed to ensure that information required to be disclosed by the Fund in the reports that it files
  or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's
  rules and forms, and that such information is accumulated and communicated to the Fund's management, including its Chief
  Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
  The Fund's management, with the participation
  of the Fund's Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the design and operations
  of the Fund's "disclosure controls and procedures" (as defined in Rule 13a-15(e) under the Securities Exchange
  Act of 1934) as of March 31, 2013. Based on their evaluation, the Fund's Chief Executive Officer and Chief Financial Officer
  concluded that the Fund's disclosure controls and procedures were effective at a reasonable assurance level. There has been
  no change in the Fund's internal control over financial reporting during the quarter ended March 31, 2013, that has materially
  affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting.
  Part II. Other Information
  Item  1.
  Legal
  Proceedings
  On April 26, 2010, the Securities and
  Exchange Commission ("SEC") subpoenaed records of the Fund in connection with certain trades in the Fund's shares
  by SPQR Capital LLP, SAE Capital Ltd., Versatile Systems Inc., Mobiquity Investments Limited, and anyone associated with those
  entities. The Fund has fully cooperated with the SEC's request.
  In January 2006, we sold our 31.5% ownership
  interest in Champion Window, Inc. ("Champion"), a portfolio company of the Fund, to Atrium Companies Inc. ("Atrium")
  pursuant to a Stock Purchase Agreement ("SPA") dated December 22, 2005. The SPA contained certain limited rights of
  indemnification for Atrium in connection with its purchase of such ownership interest.
  Atrium filed suit in the District Court of
  Harris County, Texas against two former officers of Atrium's subsidiary, Champion, alleging, amongst other matters, that
  the former officers breached their fiduciary duties to Champion by hiring undocumented workers. This action was commenced primarily
  as a result of an investigation by the U.S. Immigration and Customs Enforcement agency ("ICE") into Atrium's
  hiring practices. On March 12, 2012, to protect its interests, we filed a Petition in Intervention in the State Court Action seeking
  a declaration from the Court that Equus did not owe any obligation to indemnify Atrium or Champion for any penalties, costs or
  fees associated with the investigation by ICE.
  On March 16, 2012, Atrium and Champion filed
  a claim with the American Arbitration Association in Dallas, Texas, against Equus and a number of the other sellers under the SPA.
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  27
  In the Arbitration Action, Atrium and Champion
  seek damages arising from Equus' and the other sellers' indemnity obligations set forth in the SPA. Atrium claims it
  is entitled to indemnification under the SPA for costs it has incurred in responding to an ongoing investigation by ICE. Atrium
  entered into a Non-Prosecution Agreement with ICE. It appears that one condition of the Non-Prosecution Agreement required Atrium
  to pay ICE $2,000,000. Atrium and Champion asserted two counts of breach of contract against Equus, both arising out of the alleged
  obligation to indemnify Atrium and Champion pursuant to certain provisions of the SPA. Atrium and Champion also asserted claims
  for fraudulent inducement against two former officers and directors of Champion. Through the arbitration, Atrium and Champion seek
  to recover an unspecified amount in the form of alleged "losses, damages, assessments, penalties, interest, reasonable attorneys'
  and accountants' fees, settlement costs, and other costs and expenses arising directly or indirectly out of or incident to,"
  the alleged breach of the indemnity provisions in the SPA. As a consequence of their fraudulent inducement claim against the two
  former officers and directors, Atrium and Champion alternatively seek equitable rescission of the SPA and exemplary damages from
  the two former officers and directors.
  Atrium and Champion have yet to specify the
  amount of damages they seek from Equus or the other sellers pursuant to the alleged indemnity obligations under the SPA. Atrium
  and Champion have disclosed the payment of $2 million to ICE to resolve the investigation and avoid prosecution for their hiring
  practices.
  We intend to vigorously contest the claims
  and deny that we owe any indemnity obligations to Atrium or Champion and further deny that the Fund is in any way liable to Atrium
  or Champion. To the extent Atrium and Champion are able to establish a right to an indemnity, we will contest the amount of the
  claimed indemnity, inasmuch as we believe (among other defenses) that the indemnity obligation can only exist, if at all, with
  respect to damages arising as a direct and proximate result of employees who were hired prior to the closing date of the 2006 sale
  of Champion and remained in continuous employment after the 2006 sale, and not to any employee who may have been hired in the six
  years after the sale.
  While we believe the Atrium claim is without
  merit and we intend to vigorously dispute the claim, there is a reasonable possibility of an adverse ruling which may require the
  Fund to indemnify Atrium. If Equus is required to indemnify Atrium and Champion, we estimate that such indemnity obligation could
  vary from $2.0 million to $3.0 million. Pursuant to the SPA, the indemnification obligation of Equus and the other sellers is several
  and not joint, and any such indemnity, however uncertain, would likely be reduced proportionately to our percentage ownership in
  Champion at the time of sale, which was 31.5% of Champion's shares outstanding.
  On August 12, 2012, Paula Douglass filed a
  lawsuit against the Fund and members of the Board of Directors in the District Court of Harris County, Texas. Ms. Douglass'
  complaint alleges various causes of action, including minority shareholder oppression, dilution, and breach of fiduciary duty,
  and seeks unspecified damages and attorney's fees. We consider the lawsuit as being without merit and intend to defend the
  matter vigorously.
  From time to time, the Fund is also a party
  to certain proceedings incidental to the normal course of our business including the enforcement of our rights under contracts
  with our portfolio companies. While the outcome of these legal proceedings cannot at this time be predicted with certainty, we
  do not expect that these proceedings will have a material effect upon the Fund's financial condition or results of operations.
  Item 1A.
  Risk
  Factors
  There have been no material changes in the
  Fund's risk factors from the disclosure set forth in the Annual Report on Form 10-K for the year ended December 31,
  2012.
  Readers should carefully consider these risks
  and all other information contained in the annual report on Form 10-K, including the Fund's financial statements and the
  related notes thereto. The risks and uncertainties described below are not the only ones facing the Fund. Additional risks and
  uncertainties not presently known to the Fund, or not presently deemed material by the Fund, may also impair its operations and
  performance.
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  28
  Item  6.
  Exhibits
  3.
  Articles of Incorporation and by-laws
  (a)
  Restated Certificate of Incorporation of the Fund, as amended. [Incorporated by reference to Exhibit 3(a) to Registrant's
  Annual Report on Form 10-K for the year ended December 31, 2007]
  (b)
  Certificate of Merger dated June 30, 1993, between the Fund and Equus Investments Incorporated [Incorporated by reference
  to Exhibit 3(c) to Registrant's Annual Report on Form 10-K for the year ended December 31, 2007]
  (c)
  Amended and Restated Bylaws of the Fund. [Incorporated by reference to Exhibit 3(b) to Registrant's Current Report on
  Form 8-K filed on December 16, 2010.]
  10.
  Material Contracts.
  (c)
  Safekeeping Agreement between the Fund and Amegy Bank dated August 16, 2008. [Incorporated by reference to Exhibit 10(c)
  to Registrant's Annual Report on Form 10-K for the year ended December 31, 2008.]
  (d)
  Form of Indemnification Agreement between the Fund and its directors and certain officers. [Incorporated by reference to Exhibit
  10(d) to Registrant's Annual Report on Form 10-K for the year ended December 31, 2011.]
  (e)
  Form of Release Agreement between the Fund and certain of its officers and former officers. [Incorporated by reference to Exhibit
  10(h) to Registrant's Annual Report on Form 10-K for the year ended December 31, 2004.]
  (f)
  Code of Ethics of the Fund (Rule 17j-1) [Incorporated by reference to Exhibit 10(f) to Registrant's Annual Report on
  Form 10-K for the year ended December 31, 2009.]
  31.
  Rule 13a-14(a)/15d-14(a) Certifications
  1.
  Certification by Chief Executive Officer
  2.
  Certification by Chief Financial Officer
  32.
  Section 1350 Certifications
  1.
  Certification by Chief Executive Officer
  2.
  Certification by Chief Financial Officer
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  29
  SIGNATURE
  Pursuant to the requirements of Section 13
  or 15(d) of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed by the undersigned, thereunto
  duly authorized.
  EQUUS TOTAL RETURN, INC.
  Date: May 15, 2013
  /s/ John A. Hardy
  John A. Hardy
  Chief Executive Officer
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  30