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  <P STYLE="font: 13.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES </B></P>
  
  <P STYLE="font: 13.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION
  </B></P>
  
  <P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549 </B></P>
  
  <P STYLE="font: 18pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>FORM 10-Q </B></P>
  
  <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">(Mark One)</P>
  
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      <TD STYLE="width: 1px; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="width: 41px; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: MS Gothic, Helvetica, Sans-Serif; font-size: 10pt; line-height: 115%">&#9746;</FONT></TD>
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">For the quarterly period ended June 30,
  2019</P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">or</P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
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      <TD STYLE="width: 1px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 41px; line-height: 115%"><FONT STYLE="font-family: MS Mincho,serif; font-size: 10pt; line-height: 115%">&#9744;</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">For the transition period to</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center">Commission File Number 814-00098</P>
  
  <P STYLE="font: 24pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Exact name of registrant as specified
  in its charter) </B></P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
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      <TD STYLE="width: 50%; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Delaware</B></FONT></TD>
      <TD STYLE="width: 50%; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>76-0345915</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>
          <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(State or other jurisdiction of</B></P>
          <P STYLE="font: 7.5pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(I.R.S. Employer</B></P>
          <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Identification No.)</B></P></TD></TR>
  <TR>
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>700 Louisiana St., 48<SUP>th</SUP>
          Floor</B></P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Houston, Texas</B></P></TD>
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>77002</B></P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>(Address of principal executive offices)</B></FONT></TD>
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>(Zip Code)</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Former Name, Former Address and
  Former Fiscal Year, if Changed Since Last Report)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Registrant&rsquo;s telephone number,
  including area code: (713) 529-0900</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Securities registered pursuant to
  Section 12(b) of the Act:</B></P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
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  <TR>
      <TD STYLE="vertical-align: bottom; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B><U>Title of each class</U></B></FONT></TD>
      <TD STYLE="vertical-align: top">
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Name of each exchange</B></P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0.6pt; text-align: center"><B><U>on which registered</U></B></P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Common Stock</B></FONT></TD>
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>New York Stock Exchange</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 </FONT><FONT STYLE="font-family: MS Mincho,serif">&#9746;
  </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">No </FONT><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT></P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
  by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes </FONT><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">No
  </FONT><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT></P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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: 8pt/normal 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: top">
      <TD STYLE="width: 17%; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; line-height: 115%">Large accelerated filer </FONT><FONT STYLE="font-family: MS Mincho,serif; font-size: 8pt; line-height: 115%">&#9744;</FONT></TD>
      <TD STYLE="width: 15%; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; line-height: 115%">Accelerated filer </FONT><FONT STYLE="font-family: MS Mincho,serif; font-size: 8pt; line-height: 115%">&#9744;</FONT></TD>
      <TD STYLE="width: 20%; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; line-height: 115%">Non-accelerated filer </FONT><FONT STYLE="font-family: MS Mincho,serif; font-size: 8pt; line-height: 115%">&#9746;</FONT></TD>
      <TD STYLE="width: 25%; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; line-height: 115%">Smaller Reporting Company </FONT><FONT STYLE="font-family: MS Mincho,serif; font-size: 8pt; line-height: 115%">&#9744;</FONT></TD>
      <TD STYLE="width: 23%; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; line-height: 115%">Emerging Growth Company </FONT><FONT STYLE="font-family: MS Mincho,serif; font-size: 8pt; line-height: 115%">&#9744;</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
  an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
  complying with any new or revised financial accounting standards provided pursuant to Section&nbsp;13(a) of the Exchange Act.&nbsp;</FONT><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
  by check mark whether the registrant is a shell company. Yes </FONT><FONT STYLE="font-family: MS Mincho,serif">&#9744;</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">No
  </FONT><FONT STYLE="font-family: MS Mincho,serif">&#9746;</FONT></P>
  
  <P STYLE="font: 5pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">There were 13,518,146
  shares of the registrant&rsquo;s common stock, $.001 par value, outstanding, as of August 14, 2019</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <!-- Field: Page; Sequence: 1 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Delaware Corporation)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="TableOfContents" TITLE="Table of Contents"></A><B>INDEX</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>PAGE</B></FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a001">PART I. FINANCIAL INFORMATION</A></FONT></TD>
      <TD STYLE="vertical-align: bottom; line-height: 115%; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 0.5in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a002">Item 1. Unaudited Condensed Financial Statements</A></FONT></TD>
      <TD STYLE="vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">3</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; text-indent: 1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a002">Condensed Balance Sheets</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">3</FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a003">Condensed Statements of Operations</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">4</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; text-indent: 1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a004">Condensed Statements of Changes in Net Assets</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">5</FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a005">Condensed Statements of Cash Flows</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">6</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; text-indent: 1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a006">Supplemental Information&mdash;Selected Per Share Data and Ratios</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">7</FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a007">Schedules of Investments</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">8</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; text-indent: 1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a008">Notes to Condensed Financial Statements</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">12</FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 0.5in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a009">Item 2. Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">27</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; text-indent: 0.5in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a010">Item 3. Quantitative and Qualitative Disclosure about Market Risk</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">32</FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 0.5in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a011">Item 4. Controls and Procedures</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">32</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a012">PART II. OTHER INFORMATION</A></FONT></TD>
      <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 0.5in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a013">Item 1<FONT STYLE="color: blue">.</FONT> Legal Proceedings</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">33</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
      <TD STYLE="vertical-align: top; text-indent: 0.5in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a014">Item 1A. Risk Factors</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">33</FONT></TD></TR>
  <TR STYLE="background-color: white">
      <TD STYLE="vertical-align: top; text-indent: 0.5in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a015">Item 6. Exhibits</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">34</FONT></TD></TR>
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      <TD STYLE="vertical-align: top; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a016">SIGNATURE</A></FONT></TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">35</FONT></TD></TR>
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      <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
      <TD STYLE="white-space: nowrap; vertical-align: bottom; line-height: 115%; text-align: center">&nbsp;</TD></TR>
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONDENSED BALANCE SHEETS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><U><A NAME="a001"></A>Part I. Financial Information</U></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a002"></A><B><U>Item 1. Unaudited Condensed Financial Statements </U></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></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="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">June 30,</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">2019</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">2018</P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; text-align: left">(in thousands, except per share amounts)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <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: rgb(204,238,255)">
      <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: White">
      <TD STYLE="width: 63%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments (cost at $7,050 and $10,050, respectively)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">10,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">9,210</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments (cost at $350)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,500</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;Non-affiliate investments - related party (cost at $6,737 and $6,579, respectively)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,328</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 $977)</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">977</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">977</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">40,995</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,015</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">Temporary cash investments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,990</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,981</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <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">5,407</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,425</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">Restricted cash</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">270</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">270</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Accounts receivable from affiliates</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">561</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">561</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">Accrued interest and dividend receivable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">489</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">568</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">Other assets</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">258</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">121</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">&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">74,970</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,941</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <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: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">196</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 to related parties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">269</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;Borrowing 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">26,990</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">26,981</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">27,037</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,446</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 (see Note 2)</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">47,933</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">43,495</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Net assets consist of:</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13</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">55,901</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,741</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">(31,114</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(29,327</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;Undistributed net capital (losses) gains</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,748</TD><TD STYLE="text-align: left">)</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized appreciation of portfolio securities, net</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,310</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;Unrealized depreciation of portfolio securities, net - related party</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">(1,719</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">(2,251</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">47,933</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">43,495</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; font-size: 11.5pt; text-align: right">13,518</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">13,518</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">3.55</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">3.22</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  
  <!-- Field: Page; Sequence: 3 -->
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a003"></A><B>CONDENSED STATEMENTS OF OPERATIONS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></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-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">(in thousands, except per share amounts)</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">2019</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">2018</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">2019</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">2018</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Investment income:</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><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;Interest and dividend income:</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><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="width: 44%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments - related party</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">80</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">75</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">80</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">149</TD><TD STYLE="width: 1%; 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;&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">&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">35</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">69</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">110</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">218</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;Interest from temporary cash 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">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">7</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">26</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">12</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">230</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><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>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><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><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;Compensation expense</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">380</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">387</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">779</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">898</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;Professional fees</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><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">406</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">571</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">805</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;Director fees and expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">118</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">202</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">196</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;General and administrative expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">219</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">174</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;Mailing, printing and other expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67</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;Taxes</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</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;Interest expense</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</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</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</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">4</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: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total 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">887</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">1,053</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">1,893</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">2,157</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><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><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: 1pt">Net investment 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">(797</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">(936</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">(1,787</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">(1,927</TD><TD STYLE="padding-bottom: 1pt; 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: 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><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 realized (loss) gain:</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><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;Affiliate investments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,790</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><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,790</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: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary cash 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">23</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</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">33</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</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: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (loss) gain</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">(2,767</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">(1</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">(2,757</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">1</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&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><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><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">Net unrealized appreciation of portfolio securities:</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><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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,812</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,812</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;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">22,811</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">15,862</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">19,310</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">14,498</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 net unrealized appreciation of portfolio securities</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">4,789</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">1,950</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">8,290</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">3,314</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><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 unrealized depreciation of portfolio securities - related party:</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><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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,719</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,575</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,719</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,575</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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">(1,795</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">(1,355</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">(2,251</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">(1,036</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">Net change in net unrealized depreciation of portfolio securities - related party</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">76</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">(220</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">532</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">(539</TD><TD STYLE="padding-bottom: 1pt; 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: 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><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">Net increase in net assets resulting from operations</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,301</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">793</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,278</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">849</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 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><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">Net increase in net assets resulting from operations per share:</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><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; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.10</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.06</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.32</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.06</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">Weighted average shares outstanding:</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><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; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</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">13,518</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">13,518</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">13,518</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">13,518</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <!-- Field: Page; Sequence: 4 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a004"></A><B>CONDENSED STATEMENTS OF CHANGES IN
  NET ASSETS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></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; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; 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">Number of Shares</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">Par 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">Capital in Excess of Par 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">Undistributed Net Investment Losses</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">Undistributed Net Capital (Losses) Gains</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">Unrealized Appreciation of Portfolio Securities, net</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">Unrealized Depreciation of Portfolio Securities - Related Party</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 Net Assets</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 36%">&nbsp;Balances at January 1, 2018</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">13,518</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">13</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">55,304</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">(25,772</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; 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">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">14,498</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">(1,036</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">43,007</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 11pt; text-align: right">&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><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><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><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><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;Share-based incentive compensation</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">197</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">&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">197</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right">&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><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><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><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">&nbsp;Net (decrease) increase in net assets resulting from operations</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><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">(991</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">2</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">1,364</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">(319</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">56</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: right">&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><TD STYLE="font-size: 11.5pt">&nbsp;</TD>
      <TD STYLE="font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11.5pt; 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><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><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>&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="padding-bottom: 2.5pt">&nbsp;Balances at March 31, 2018</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">13,518</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">55,501</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(26,763</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">15,862</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,355</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</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">43,260</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: right">&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><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><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><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;Share-based incentive compensation</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">&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">&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">&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="text-align: right">&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><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><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><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">&nbsp;Net increase (decrease) in net assets resulting from operations</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><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">79</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">(936</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">(1</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">1,950</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">(220</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">872</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&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><TD STYLE="font-size: 11.5pt">&nbsp;</TD>
      <TD STYLE="font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11.5pt; 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><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><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>&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="padding-bottom: 2.5pt">&nbsp;Balances at June 30, 2018</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">13,518</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">13</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">55,580</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(27,699</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">17,812</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,575</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">44,132</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-size: 11pt; text-align: right">&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><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-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><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><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: right">&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><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><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><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;Balances at January 1, 2019</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">55,741</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(29,327</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">19,310</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,251</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">43,495</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right">&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><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><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><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;Share-based incentive compensation</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">80</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">&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">80</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right">&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><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><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><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: 1pt">&nbsp;Net decrease (increase) in net assets resulting from operations</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><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">(990</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">10</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">3,501</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">456</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">2,977</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 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: 11.5pt">&nbsp;</TD>
      <TD STYLE="font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11.5pt; 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><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><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>&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="padding-bottom: 2.5pt">&nbsp;Balances at March 31, 2019</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">13,518</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">13</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">55,821</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(30,317</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">22,811</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,795</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">46,552</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="font-size: 11pt; text-align: right">&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><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-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><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><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;Share-based incentive compensation</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">80</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">&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">80</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: right">&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><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><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><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: 1pt">&nbsp;Net decrease (increase) in net assets resulting from operations</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><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">(797</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">(2,767</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">4,789</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">76</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">1,301</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 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: 11.5pt">&nbsp;</TD>
      <TD STYLE="font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11.5pt; 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><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><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>&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="padding-bottom: 2.5pt">&nbsp;Balances at June 30, 2019</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">13,518</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">55,901</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(31,114</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,748</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">27,600</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,719</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</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">47,933</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 100pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 100pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  
  <!-- Field: Page; Sequence: 5 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a005"></A>CONDENSED STATEMENTS OF CASH FLOWS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; 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">&nbsp;</TD>
      <TD COLSPAN="7" 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-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-size: 10pt; font-weight: bold; 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">2019</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">2018</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>Reconciliation of increase in net assets resulting from operations to net cash</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="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(used in) provided by 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>&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: 69%; text-align: left">Net increase in net assets resulting from operations</TD><TD STYLE="width: 1%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">4,278</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">849</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">Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by 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 realized loss (gain)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,757</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation of portfolio securities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,290</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,314</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;Net change in unrealized depreciation of portfolio securities - related party</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(532</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539</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;Share-based incentive compensation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276</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;Dissolution of portfolio securities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">211</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">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;Purchases of temporary cash investments, net</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,002</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;Accounts receivable from affiliates</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">25</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;Accrued interest and dividend receivable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(80</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(218</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;Other assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(137</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85</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">(172</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">217</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">(246</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">35</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 cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,027</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,495</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">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: White">
      <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">53,967</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,990</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;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">(53,958</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">(36,991</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Net cash provided by (used in) 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">9</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">(6,001</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">Net decrease in cash and cash equivalents</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,019</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,506</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Cash and cash equivalents and restricted cash 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">7,695</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">10,975</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; padding-bottom: 2.5pt">Cash and cash equivalents and restricted cash at end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,677</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,469</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">Non-cash operating and 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: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest or dividends exchanged for portfolio securities - related party</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">159</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">149</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">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: rgb(204,238,255)">
      <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">4</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-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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  
  <!-- Field: Page; Sequence: 6 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a006"></A>SUPPLEMENTAL INFORMATION&mdash;SELECTED
  PER SHARE DATA AND RATIOS</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 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">Six Months Ended June 30,</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: center; border-bottom: Black 1pt solid; vertical-align: bottom">2019</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; vertical-align: bottom">2018</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" STYLE="text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; text-align: left">Investment income</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">0.01</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; 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">0.14</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">0.16</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">(0.13</TD><TD STYLE="text-align: left">)</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></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 realized loss</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.20</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">Net change in unrealized appreciation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.24</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">Net change in unrealized depreciation - related party</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">0.04</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">(0.04</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">Net increase in net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.32</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.06</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Capital transactions:</TD><TD STYLE="color: red">&nbsp;</TD>
      <TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red; text-align: right">&nbsp;</TD><TD STYLE="color: red; 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;Share-based incentive compensation</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;Dilutive effect of shares issued</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: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Increase in net assets resulting from capital transactions</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">0.01</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">0.02</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 increase in net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.33</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</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">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">3.22</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">3.18</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 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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.55</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.26</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>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: White">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in thousands</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">13,518</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">13,518</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>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: White">
      <TD STYLE="padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1.96</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.40</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="padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1.64</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.36</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">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: rgb(204,238,255)">
      <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of expenses to average net assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.14</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.95</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;&nbsp;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">(3.91</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.42</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: 24px">Ratio of net increase 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">9.36</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.95</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total return on market price <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal; font-style: normal"><SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16.33</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.67</TD><TD STYLE="text-align: left">%)</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><FONT STYLE="font-size: 7pt"><SUP>(1)</SUP></FONT>
  <FONT STYLE="font-size: 8pt">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/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 24.5pt">The accompanying
  notes are an integral part of these financial statements.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  
  <!-- Field: Page; Sequence: 7 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a007"></A><B>SCHEDULE OF INVESTMENTS </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>JUNE 30, 2019</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited) </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 7.5pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; width: 29%">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; width: 9%; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; width: 7%; text-align: center; vertical-align: top">Date&nbsp;of&nbsp;Initial</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 29%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 7%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; width: 10%">&nbsp;Cost of&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; width: 6%">&nbsp;Fair&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio&nbsp;Company</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">Industry</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">Investment</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Investment</TD>
      <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Principal</TD>
      <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Investment</TD>
      <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Value<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><SUP>(1)</SUP></B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold">Control Investments:&nbsp;&nbsp;Majority-owned <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal"><B><SUP>(3)</SUP></B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal">:</FONT></B></TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; font-weight: bold; text-align: center">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; font-weight: bold; text-align: center">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
      <TD STYLE="text-align: left; border-top: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Equus Energy, LLC</P>
                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Houston, TX</P></TD>
      <TD STYLE="text-align: center; border-top: Black 1pt solid; vertical-align: top">&nbsp;Energy&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;December 2011&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid">&nbsp;Member interest (100%)&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 4pt; text-align: right; border-top: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid">&nbsp;7,050&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; border-top: Black 1pt solid">10,500</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Control Investments: Majority-owned (represents 15.4% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><B>&nbsp;</B></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">7,050&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">10,500</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Affiliate Investments <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><SUP>(4)</SUP>:</B></FONT></TD>
      <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt"><P STYLE="margin-top: 0; margin-bottom: 0">PalletOne, Inc.</P>
                                                                   <P STYLE="margin-top: 0; margin-bottom: 0">Bartow, FL</P></TD>
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;Shipping products and services&nbsp;</TD>
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;October 2001&nbsp;</TD>
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt">&nbsp;350,000&nbsp;shares&nbsp;of&nbsp;common stock (18.7%)&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 4pt; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt">350&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt">24,500</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Affiliate Investments (represents 34.1% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 4pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><B>&nbsp;</B></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><B>350&nbsp;&nbsp;</B></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">24,500</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid">Non-Affiliate Investments - Related Party (less than 5% owned):</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0">MVC Capital, Inc.</P>
                                      <P STYLE="margin-top: 0; margin-bottom: 0">Purchase, NY</P></TD>
      <TD STYLE="text-align: center; vertical-align: top">Financial services</TD>
      <TD STYLE="text-align: center; vertical-align: top">May 2014</TD>
      <TD STYLE="vertical-align: top">544,813 shares of common stock (1.7%)</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; text-align: right">6,737&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; text-align: right">5,018</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments - Related Party (represents 7.4% of total investments at fair value)</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">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">6,737&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">5,018</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid">Non-Affiliate Investments (less than 5% owned):</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <TD><P STYLE="margin-top: 0; margin-bottom: 0">5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>TH</SUP> Element Tracking, LLC</FONT></P>
                                                                   <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: normal 7.5pt Times New Roman, Times, Serif">Boston, MA</FONT></P></TD>
      <TD STYLE="text-align: center; vertical-align: top">Business products and services</TD>
      <TD STYLE="text-align: center; vertical-align: top">January 2015</TD>
      <TD>14% promissory note due 5/18 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>(2)</SUP></FONT></TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right">&nbsp;977&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right">&nbsp;977&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right">977</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments (represents 1.4% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><B>&nbsp;</B></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><B>977&nbsp;&nbsp;</B></TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">977</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investment in Portfolio Securities</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right">15,114&nbsp;&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right">40,995</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Temporary Cash Investments</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: top; text-align: left; border-bottom: Black 1pt solid">U.S. Treasury Bill</TD>
      <TD STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: top">Government</TD>
      <TD STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: top">  June 2019</TD>
      <TD STYLE="text-align: left; border-bottom: Black 1pt solid; vertical-align: top">UST 0% 7/19</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">26,990&nbsp;&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">26,990&nbsp;&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: right">26,990</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Temporary Cash Investments (represents 40.9% of total investments at fair value)</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><B>&nbsp;</B></TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right">26,990&nbsp;&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right">26,990</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investments</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right">42,104&nbsp;&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><B>$</B></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right">67,985</TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(1) </SUP></FONT></TD>
      <TD STYLE="width: 99%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">See Note 3 to the financial statements, Valuation of Investments.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(2) </SUP></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Non-income-producing.&nbsp;&nbsp;See notes 5 and 9 to the financial statements.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(3) </SUP></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Majority owned investments are generally defined under the 1940 Act as companies in which we own more than 50% of the voting securities of the company.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(4) </SUP></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Affiliate investments are generally defined under the 1940 Act as companies in which we own at least 5% but not more than 25% voting securities of the company.</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0 0 0 0.4in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC. </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS &ndash; (Continued)
  </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>JUNE 30, 2019</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Except for our
  holding of shares of MVC Capital, Inc. (&ldquo;MVC&rdquo;), all of our portfolio securities are restricted from public sale without
  prior registration under the Securities Act of 1933 (hereafter, the &ldquo;Securities Act&rdquo;) or other relevant 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As a business development
  company (&ldquo;BDC&rdquo;) regulated pursuant to the Investment Company Act of 1940 (&ldquo;1940 Act&rdquo;), 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 June 30, 2019, we held 87.8% of our assets
  at fair value in securities of portfolio companies that constituted qualifying investments under the 1940 Act. As of June 30, 2019,
  except for our shares of MVC, all of our investments are in enterprises that are considered eligible portfolio companies under
  the 1940 Act. We provide significant managerial assistance to portfolio companies that comprise 85.4% of the total value of the
  investments in portfolio securities as of June 30, 2019.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 issuer. The value of one segment called &ldquo;Shipping products and
  services&rdquo; includes one portfolio company and was 51.1% of our net asset value, 32.7% of our total assets and 59.8% of our
  investments in portfolio company securities (at fair value) as of June 30, 2019. The value of one segment called &ldquo;Energy&rdquo;
  includes one portfolio company and was 21.9% of our net asset value, 14.0% of our total assets and 25.6% of our investments in
  portfolio company securities (at fair value) as of June 30, 2019. 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Our investments
  in portfolio securities consist of the following types of securities as of June 30, 2019 (in thousands):</P>
  
  <P STYLE="font: 10pt/normal 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 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; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; font-style: normal; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value as Percentage of</P>
                                                                                                                        <P STYLE="margin-top: 0; margin-bottom: 0">Net Assets</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt; font-style: normal"><B><U></U></B></FONT></P></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 46%; text-align: left">Common stock</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">7,087</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">29,518</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">61.6</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Limited liability company investments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,050</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.9</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <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">977</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">977</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.0</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; 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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">15,114</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">40,995</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">85.5</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The following is
  a summary by industry of the Fund&rsquo;s investments in portfolio securities as of June 30, 2019 (in thousands):</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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 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; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; font-style: normal; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value as Percentage of</P>
                                                                                                                        <P STYLE="margin-top: 0; margin-bottom: 0">Net Assets</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt; font-style: normal"><B><U></U></B></FONT></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; text-align: left">Shipping products and services</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">24,500</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">51.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>Energy</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.9</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Financial services</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.5</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Business products and services</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">977</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">2.0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%</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">40,995</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">85.5</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <!-- Field: Page; Sequence: 9 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2018</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>
  
  <P STYLE="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></P>
  
  <P STYLE="font: 9pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; color: red"><B>&nbsp;</B></P>
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 7pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; text-align: left; vertical-align: bottom">Name and location of</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Date of Initial</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Cost of</TD>
      <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Fair</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 38%; text-align: left; vertical-align: bottom">Portfolio&nbsp;Company</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 6%; text-align: center; vertical-align: bottom">Industry</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 9%; text-align: center; vertical-align: bottom">Investment</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 18%; text-align: center; vertical-align: bottom">Investment</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 6%; text-align: center; vertical-align: bottom">Principal</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 9%; text-align: center; vertical-align: bottom">Investment</TD>
      <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; width: 11%; vertical-align: bottom">Value<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><U STYLE="text-decoration: none"><SUP STYLE="text-decoration: none">(1)</SUP></U></B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Control Investments:&nbsp;&nbsp;Majority-owned <FONT STYLE="font: normal 7pt Times New Roman, Times, Serif"><B><SUP>(3)</SUP></B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal">:</FONT></B></TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0">Equus Energy, LLC</P>
                                   <P STYLE="margin-top: 0; margin-bottom: 0">Houston, TX</P></TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;Energy&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;December 2011&nbsp;</TD>
      <TD>&nbsp;Member interest (100%)&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;7,050&nbsp;&nbsp; </TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;9,000</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
      <TD STYLE="text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0">Equus Media Development Company, LLC</P>
                                   <P STYLE="margin-top: 0; margin-bottom: 0">Houston, TX</P></TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;Media&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;January 2007&nbsp;</TD>
      <TD>&nbsp;Member interest (100%)&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,000&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;210</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Control Investments: Majority-owned (represents 14.9% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;&nbsp;&nbsp;10,050&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,210</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold">Affiliate Investments <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><SUP>(4)</SUP>:</B></FONT></TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt"><P STYLE="margin-top: 0; margin-bottom: 0">PalletOne, Inc.</P>
                                                                   <P STYLE="margin-top: 0; margin-bottom: 0">Bartow, FL</P></TD>
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;Shipping products and services&nbsp;</TD>
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;October 2001&nbsp;</TD>
      <TD STYLE="border-top-color: Black; border-top-width: 0.5pt">&nbsp;350,000&nbsp;shares&nbsp;of&nbsp;common stock (18.7%)&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 4pt; text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;20,500</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Affiliate Investments (represents 33.1% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-size: 4pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;350&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;20,500</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid">Non-Affiliate Investments - Related Party (less than 5% owned):</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD></TR>
  <TR STYLE="background-color: White">
      <TD STYLE="vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0">MVC Capital, Inc.</P>
                                      <P STYLE="margin-top: 0; margin-bottom: 0">Purchase, NY</P></TD>
      <TD STYLE="text-align: center; vertical-align: top">Financial services</TD>
      <TD STYLE="text-align: center; vertical-align: top">May 2014</TD>
      <TD STYLE="vertical-align: top">527,138 shares of common stock (1.7%)</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; text-align: right">&nbsp;&nbsp;6,579&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;4,328</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments - Related Party (represents 7.0% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;6,579&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;4,328</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 0.5pt solid">Non-Affiliate Investments (less than 5% owned):</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
      <TD STYLE="border-top: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>TH</SUP> Element Tracking, LLC</FONT></P>
                                                                   <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: normal 7.5pt Times New Roman, Times, Serif">Boston, MA</FONT></P></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">Business products and services</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">January 2015</TD>
      <TD STYLE="border-top: Black 1pt solid">14% promissory note due 5/18 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>(2)</SUP></FONT></TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments (represents 1.5% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investment in Portfolio Securities</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;17,956&nbsp;&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,015</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-weight: bold">Temporary Cash Investments</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
      <TD STYLE="vertical-align: bottom; text-align: left">U.S. Treasury Bill</TD>
      <TD STYLE="text-align: center; vertical-align: top">Government</TD>
      <TD STYLE="text-align: center; vertical-align: top">December 2018</TD>
      <TD STYLE="vertical-align: bottom">UST 0% 1/19</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,981&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;26,981&nbsp;&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: top">$</TD>
      <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,981</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Temporary Cash Investments (represents 43.5% of total investments at fair value)</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;26,981&nbsp;&nbsp;</TD>
      <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,981</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investments</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;44,937&nbsp;&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
      <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,996</TD></TR>
  </TABLE>
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(1) </SUP></FONT></TD>
      <TD STYLE="width: 99%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt">See Note 3 to the financial statements, Valuation of Investments.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(2) </SUP></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Non-income producing.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(3) </SUP></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Majority owned investments are generally defined under the 1940 Act as companies in which we own more than 50% of the voting securities of the company.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(4) </SUP></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Affiliate investments are generally defined under the 1940 Act as companies in which we own at least 5% but not more than 25% voting securities of the company.</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 10 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS &ndash; (Continued)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2018</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>(in thousands, except share data)</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Except for our
  holding of shares of MVC, substantially all of our portfolio securities are restricted from public sale without prior registration
  under the Securities Act or other relevant 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As a BDC, 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, 2018, we had
  invested 87.5% of our assets in securities of portfolio companies that constituted qualifying investments under the 1940 Act. As
  of December 31, 2018, except for our shares of MVC, all of our investments are in enterprises that are considered eligible portfolio
  companies under the 1940 Act. We provide significant managerial assistance to portfolio companies that comprise 84.6% of the total
  value of the investments in portfolio securities as of December 31, 2018.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 issuer. The value of one segment called &ldquo;Shipping products and
  services&rdquo; includes one portfolio company and was 47.1% of our net asset value, 28.9% of our total assets and 58.5% of our
  investments in portfolio company securities (at fair value) as of December 31, 2018. The value of one segment called &ldquo;Energy&rdquo;
  includes one portfolio company and was 20.7% of our net asset value, 12.7% of our total assets and 25.7% of our investments in
  portfolio company securities (at fair value) as of December 31, 2018. 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Our investments
  in portfolio securities consist of the following types of securities as of December 31, 2018 (in thousands):&nbsp;&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal 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: 11pt Calibri, Helvetica, Sans-Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Type of Securities</TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Fair Value as Percentage of</B></P> <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Net Assets</B></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 46%; font-family: Times New Roman, Times, Serif; text-align: left">Common stock</TD><TD STYLE="width: 5%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font-family: Times New Roman, Times, Serif; text-align: right">6,929</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font-family: Times New Roman, Times, Serif; text-align: right">24,828</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; font-family: Times New Roman, Times, Serif; text-align: right">57.1</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">Limited liability company investments</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">10,050</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">9,210</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">21.2</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Secured and subordinated debt</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">977</TD><TD STYLE="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">977</TD><TD STYLE="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">2.2</TD><TD STYLE="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt">Total</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">17,956</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">35,015</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">80.5</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The following is
  a summary by industry of the Fund&rsquo;s investments in portfolio securities as of December 31, 2018 (in thousands):</P>
  
  <P STYLE="font: 10pt/normal 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: 11pt Calibri, Helvetica, Sans-Serif">
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Fair Value as Percentage of</B></P> <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Net Assets</B></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 56%; font-family: Times New Roman, Times, Serif; text-align: left">Shipping products and services</TD><TD STYLE="width: 8%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">20,500</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">47.1</TD><TD STYLE="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Times New Roman, Times, Serif">Energy</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">9,000</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">20.7</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">Financial services</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">4,328</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">9.9</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">Business products and services</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">977</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</TD>
      <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right">2.2</TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">Media</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">210</TD><TD STYLE="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">0.6</TD><TD STYLE="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt">Total</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">35,015</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">80.5</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left">%</TD></TR>
  </TABLE>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral
  part of these financial statements.&nbsp;</P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a008"></A>NOTES TO CONDENSED FINANCIAL STATEMENTS
  </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>JUNE 30, 2019</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Unaudited)</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(1)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Description of Business and Basis of Presentation </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Description
  of Business</B>&mdash;Equus Total Return, Inc. (&ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus&rdquo; and
  the &ldquo;Fund&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 the change of the Fund&rsquo;s investment strategy to a total
  return investment objective. This 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">So long as we remain
  an investment company and not an operating company as contemplated in our <I>Plan of Reorganization</I> described in Note 6 below,
  we will attempt to maximize the return to our 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 may include 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 (or smaller public 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 prudent to continue to review alternatives to refine and further clarify the current strategies.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We elected to be
  treated as a BDC under the 1940 Act. 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 companies. We reflect any such income tax expense on our
  Statements of Operations.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B></B>&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"><B>Basis of Presentation</B>&mdash;In
  accordance with Article 6 of Regulation S-X under the Securities Act and the Securities Exchange Act of 1934, as amended (&ldquo;Exchange
  Act&rdquo;), 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 (&ldquo;GAAP&rdquo;), 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 Exchange Act. Accordingly, they are unaudited and exclude some disclosures
  required for annual financial statements. We believe that we have made all adjustments, consisting solely of normal recurring accruals,
  necessary for the fair presentation of these interim financial statements.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The results of
  operations for the three months ended June 30, 2019 are not necessarily indicative of results that ultimately may be achieved for
  the remainder of 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 Annual Report on Form 10-K for the fiscal year ended December
  31, 2018, as filed with the Securities and Exchange Commission (&ldquo;SEC&rdquo;).</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(2)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Liquidity and Financing Arrangements </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal 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"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"><B>Liquidity</B>&mdash;There
  are several factors that may materially affect our liquidity during the reasonably foreseeable future. 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 the extent we remain a BDC, to finance routine follow-on investments, if any, through the next twelve months.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Cash and Cash
  Equivalents</B>&mdash;As of June 30, 2019, we had cash and cash equivalents of $5.4 million. We had $41.0 million of our net assets
  of $47.9 million invested in portfolio securities.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As of December
  31, 2018, we had cash and cash equivalents of $7.4 million. We had $35.0 million of our net assets of $43.5 million invested in
  portfolio securities</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We exclude &ldquo;Restricted
  Cash and Temporary Cash Investments&rdquo; used for purposes of complying with RIC requirements from cash equivalents.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Restricted Cash
  and Temporary Cash Investments</B>&mdash; As of June 30, 2019, we had $27.2 million of restricted cash and temporary cash investments,
  including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable
  to a RIC to maintain our pass-through tax treatment. Of this amount, $27.3 million was invested in U.S. Treasury bills and $0.3
  million represented a required 1% brokerage margin deposit. These securities were held by a securities brokerage firm and pledged
  along with other assets to secure repayment of the margin loan. The U.S. Treasury bills matured on July 5, 2019 and we subsequently
  repaid this margin loan, plus interest.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As of December
  31, 2018, we had $27.3 million of restricted cash and of temporary cash investments, including primarily the proceeds of a quarter-end
  margin loan that we incurred to maintain the diversification requirements applicable to a RIC. Of this amount, $27.0 million was
  invested in U.S. Treasury bills and $0.3 million represented a required 1% brokerage margin deposit. These securities were held
  by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan. The U.S. Treasury bills
  were sold on January 2, 2019 and we subsequently repaid this margin loan, plus interest.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Dividends</B>&mdash;So
  long as we remain a BDC, we will pay out net investment income and/or realized net capital gains, if any, on an annual basis as
  required under the 1940 Act.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Investment Commitments</B>&mdash;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: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As of June 30,
  2019, we had no outstanding commitments to our portfolio company investments.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal 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"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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. We cannot assure you that any 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. If we remain a BDC and do not become an operating company
  as described in Note 6 &ndash; <I>Plan of Reorganization</I> below, our failure to continue to qualify as a RIC could be materially
  adverse to us and our stockholders.</P>
  
  
  
  <P STYLE="font: 10pt/normal 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">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As of June 30,
  2019, we borrowed $27.0 million to maintain our RIC status by utilizing a margin account with a securities brokerage firm. We collateralized
  such borrowings with restricted cash and temporary cash investments in U.S. Treasury bills of $27.3 million.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As of December
  31, 2018, we borrowed $27.0 million to maintain our RIC status by utilizing a margin account with a securities brokerage firm.
  We collateralized such borrowings with restricted cash and temporary cash investments in U.S. Treasury bills of $27.3 million.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <!-- Field: Page; Sequence: 13 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Certain Risks
  and Uncertainties</B>&mdash;Market and economic volatility which has become endemic in the past few years has constrained the availability
  of debt financing for small and medium-sized companies such as Equus and its portfolio companies. Such debt financing generally
  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 six months of 2019, the price of our common stock remained well below
  our net asset value, thereby making it undesirable to issue additional shares of our common stock below net asset value. 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. We are also evaluating potential opportunities that could enable
  us to effect a change to our business and become an operating company as described in Note 6 &ndash; <I>Plan of Reorganization</I>
  below. We believe we have sufficient liquidity to meet our operating requirements for the remainder of 2019 and the first six months
  of 2020.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(3)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Significant Accounting Policies </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Valuation of
  Investments&mdash;</B>For most of our investments, market quotations are not available. With respect to investments for which market
  quotations are not readily available or when such market quotations are deemed not to represent fair value, our Board has approved
  a multi-step valuation process each quarter, as described below:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 41px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">1.</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Each portfolio company or investment is reviewed by our investment
          professionals;</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">2.</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">With respect to investments with a fair value exceeding $2.5
          million that have been held for more than one year, we engage independent valuation firms to assist our investment professionals.
          These independent valuation firms conduct independent valuations and make their own independent assessments;</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">3.</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Our Management produces a report that summarized each of
          our portfolio investments and recommends a fair value of each such investment as of the date of the report;</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">4.</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Audit Committee of our Board reviews and discusses the
          preliminary valuation of our portfolio investments as recommended by Management in their report and any reports or recommendations
          of the independent valuation firms, and then approves and recommends the fair values of our investments so determined to our Board
          for final approval; and</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">5.</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">The Board discusses valuations and determines the fair value of each portfolio investment in good faith based on the input of our Management, the respective independent valuation firm, as applicable, and the Audit Committee.</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the first
  twelve months after an investment is made, we rely on the original investment amount 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).</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Investments are valued utilizing a yield analysis, enterprise value (&ldquo;EV&rdquo;) analysis, net asset
  value analysis, liquidation analysis, discounted cash flow analysis, or a combination of methods, as appropriate. The yield analysis
  uses loan spreads and other relevant information implied by market data involving identical or comparable assets or liabilities.
  Under the EV analysis, the EV of a portfolio company is first determined and allocated over the portfolio company&rsquo;s securities
  in order of their preference relative to one another (i.e., &ldquo;waterfall&rdquo; allocation). To determine the EV, we typically
  use a market multiples approach that considers relevant and applicable market trading data of guideline public companies, transaction
  metrics from precedent M&amp;A transactions and/or a discounted cash flow analysis. The net asset value analysis is used to derive
  a value of an underlying investment (such as real estate property) by dividing a relevant earnings stream by an appropriate capitalization
  rate. For this purpose, we consider capitalization rates for similar properties as may be obtained from guideline public companies
  and/or relevant</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <!-- Field: Page; Sequence: 14 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">transactions. The liquidation analysis is intended to approximate the net recovery value of an investment
  based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company&rsquo;s
  assets. The discounted cash flow analysis uses valuation techniques to convert future cash flows or earnings to a range of fair
  values from which a single estimate may be derived utilizing an appropriate discount rate. The measurement is based on the net
  present value indicated by current market expectations about those future amounts.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">In applying these
  methodologies, additional factors that we consider in fair value pricing our investments may include, as we deem relevant: security
  covenants, call protection provisions, and information rights; the nature and realizable value of any collateral; the portfolio
  company&rsquo;s ability to make payments; the principal markets in which the portfolio company does business; publicly available
  financial ratios of peer companies; the principal market; and enterprise values, among other factors. 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 assuming a hypothetical current sale of the security to determine if a debt
  security has been impaired.&nbsp;The yield analysis considers changes in interest rates and changes in leverage levels of the portfolio
  company as compared to the market interest rates and leverage levels. Assuming the credit quality of the portfolio company remains
  stable, the Fund will use the value determined by the yield analysis as the fair value for that security if less than the cost
  of the investment.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We 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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Fair Value Measurement&mdash;</B>Fair
  value is 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 and sets out a fair value hierarchy. The fair value hierarchy gives the highest priority to
  quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level
  3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. The three levels
  of the fair value hierarchy are described below:</P>
  
  <P STYLE="font: 10.5pt/normal Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Level 1&mdash;Unadjusted
  quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the
  measurement date.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Level 2&mdash;Inputs
  other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair
  value is determined through the use of models or other valuation methodologies.</P>
  
  <P STYLE="font: 10.5pt/normal Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Level 3&mdash;Inputs
  are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset
  or liability. The inputs into the determination of fair value are based upon the best information under the circumstances and may
  require significant management judgment or estimation.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt">In certain cases,
  the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment&rsquo;s
  level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
  Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers
  factors specific to the investment.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Investments for
  which prices are not observable are generally private investments in the debt and equity securities of operating companies. A primary
  valuation method used to estimate the fair value of these Level 3 investments is the discounted cash flow method (although a liquidation
  analysis, option theoretical, or other methodology may be used when more appropriate). The discounted cash flow approach to determine
  fair value (or a range of fair values) involves applying an appropriate discount rate(s) to the estimated future cash flows using
  various relevant factors depending on investment type, including comparing the latest arm&rsquo;s length or market transactions
  involving the subject security to the selected benchmark credit spread, assumed growth rate (in cash flows), and capitalization
  rates/multiples (for determining terminal values of underlying portfolio companies). The valuation based on the inputs determined
  to be the most reasonable and probable is used as the fair value of the investment. In the case of our investment in Equus Energy,
  we also examine acreage values in comparable transactions and assess the impact upon the working interests held by Equus Energy.
  The determination of fair value using these methodologies may take into consideration a range of factors including, but not limited
  to, the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public</P>
  
  <!-- Field: Page; Sequence: 15 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">
  exchanges for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition
  of the investment and anticipated financing transactions after the valuation date.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">To assess the reasonableness
  of the discounted cash flow approach, the fair value of equity securities, including warrants, in portfolio companies may also
  consider the market approach&mdash;that is, through analyzing and applying to the underlying portfolio companies, market valuation
  multiples of publicly-traded firms engaged in businesses similar to those of the portfolio companies. The market approach to determining
  the fair value of a portfolio company&rsquo;s equity security (or securities) will typically involve: (1) applying to the portfolio
  company&rsquo;s trailing twelve months (or current year projected) EBITDA a low to high range of enterprise value to EBITDA multiples
  that are derived from an analysis of publicly-traded comparable companies, in order to arrive at a range of enterprise values for
  the portfolio company; (2) subtracting from the range of calculated enterprise values the outstanding balances of any debt or equity
  securities that would be senior in right of payment to the equity securities we hold; and (3) multiplying the range of equity values
  derived therefrom by our ownership share of such equity tranche in order to arrive at a range of fair values for our equity security
  (or securities). Application of these valuation methodologies involves a significant degree of judgment by Management.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Due to the inherent
  uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value
  of the investments may differ significantly from the values that would have been used had a ready market existed for such investments
  and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject
  to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If we were required to liquidate
  a portfolio investment in a forced or liquidation sale, we might realize significantly less than the value at which such investment
  had previously been recorded. With respect to Level 3 investments, where sufficient market quotations are not readily available
  or for which no or an insufficient number of indicative prices from pricing services or brokers or dealers have been received,
  we undertake, on a quarterly basis, our valuation process as described above.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We assess the levels
  of the investments at each measurement date, and transfers between levels are recognized on the subsequent measurement date closest
  in time to the actual date of the event or change in circumstances that caused the transfer. There were no transfers among Level
  1, 2 and 3 for the six months ended June 30, 2019 and the year ended December 31, 2018.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As of June 30,
  2019, 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></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 COLSPAN="6">&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 June 30, 2019</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="2" 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"><P STYLE="margin-top: 0; margin-bottom: 0">Quoted Prices in Active Markets for Identical Assets</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">(Level 1)</P></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"><P STYLE="margin-top: 0; margin-bottom: 0">Significant Other Observable Inputs</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">(Level 2)</P></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"><P STYLE="margin-top: 0; margin-bottom: 0">Significant Unobservable Inputs</P>
                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">(Level 3)</P></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="2">Assets</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="2">Investments:</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 40%; text-align: left; padding-left: 10pt">Control investments</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">10,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">10,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 10pt">Affiliate investments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,500</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">24,500</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">Non-affiliate investments - related party</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,018</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">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">977</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">&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">977</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">Total investments</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,995</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,018</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">35,977</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;&nbsp;&nbsp;&nbsp;Temporary cash 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">26,990</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">26,990</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">&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; padding-bottom: 2.5pt">Total investments and temporary cash investments</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">67,985</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">32,008</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">35,977</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 4.5pt">&nbsp;&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 16 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2018, 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="6" STYLE="line-height: 115%">&nbsp;</TD>
      <TD COLSPAN="12" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Fair Value Measurements as of December 31, 2018</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>(in thousands)</I></B></FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid">
          <P STYLE="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Quoted Prices in Active Markets for
          Identical Assets</B></P>
          <P STYLE="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Level 1)</B></P></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid">
          <P STYLE="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Significant Other Observable Inputs</B></P>
          <P STYLE="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Level 2)</B></P></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid">
          <P STYLE="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Significant Unobservable Inputs</B></P>
          <P STYLE="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Level 3)</B></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assets</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;Investments:</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="width: 40%; padding-left: 10pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Control investments</FONT></TD>
      <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,210</FONT></TD>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,210</FONT></TD>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="padding-left: 10pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Affiliate investments</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,500</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,500</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="padding-left: 10pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-affiliate investments - related party</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,328</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,328</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="padding-left: 10pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-affiliate investments</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">977</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">977</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total investments</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">35,015</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,328</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30,687</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary cash investments</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">26,981</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">26,981</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total investments and temporary cash investments</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">61,996</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31,309</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
      <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30,687</FONT></TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD>&nbsp;</TD></TR>
  </TABLE>
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The following table
  provides a reconciliation of fair value changes during the six months ended June 30, 2019 for all investments for which we determine
  fair value using unobservable (Level 3) factors:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Sans-Serif; font-size: 9pt; color: Red">&nbsp;</FONT></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 COLSPAN="6">&nbsp;</TD>
      <TD COLSPAN="13" 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 COLSPAN="5" 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 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%">Fair value as of December&nbsp;31, 2018</TD><TD STYLE="width: 3%">&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="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">9,210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">20,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">977</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="text-align: right">$30,687</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Realized losses</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">(2,790</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><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: right">(2,790)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Change in unrealized appreciation</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">4,291</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000</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: right">8,291</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Proceeds from sales/dispositions</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">(211</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><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: right">(211)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Transfers in (out) of Level 3</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; 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">&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><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: center">-</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="padding-bottom: 2.5pt">Fair value as of June 30, 2019</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; 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="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,500</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">24,500</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">977</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: right">$35,977</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 9pt Sans-Serif; color: Red"></FONT>&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The following table
  provides a reconciliation of fair value changes during the three months ended June 30, 2018 for all investments for which we determine
  fair value using unobservable (Level 3) factors:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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 COLSPAN="6">&nbsp;</TD>
      <TD COLSPAN="13" 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 COLSPAN="5" 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 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%">Fair value as of December&nbsp;31, 2017</TD><TD STYLE="width: 3%">&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="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,212</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">16,686</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">977</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="text-align: right">$25,875</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Change in unrealized appreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,314</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,314</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="padding-bottom: 2.5pt">Fair value as of June 30, 2018</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,212</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">977</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: right">$29,189</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 4.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 17 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The following table
  summarizes the significant non-observable inputs in the fair value measurements of our Level 3 investments by category of investment
  and valuation technique as of June 30, 2019:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></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="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: 15%; text-align: left">Secured and subordinated debt</TD><TD STYLE="width: 2%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 13%; text-align: right">977</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
      <TD STYLE="width: 15%; text-align: center">Yield analysis</TD><TD STYLE="width: 2%">&nbsp;</TD>
      <TD STYLE="width: 15%; text-align: center">Discount for lack of marketability</TD><TD STYLE="width: 2%; font-size: 8pt">&nbsp;</TD>
      <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; font-size: 8pt; text-align: right">0</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD><TD STYLE="width: 2%; font-size: 8pt">&nbsp;</TD>
      <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; font-size: 8pt; text-align: right">0</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0">Income/</P>
                                     <P STYLE="margin-top: 0; margin-bottom: 0">Market approach</P></TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: center">EBITDA Multiple/Discount for lack of marketability/Control premium</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">10</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">32.5</TD><TD STYLE="font-size: 8pt; text-align: left">%</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">10,500</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"><P STYLE="margin-top: 0; margin-bottom: 0">Asset approach</P>
                                                          <P STYLE="margin-top: 0; margin-bottom: 0">Discounted cash flow; Guideline transaction method</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="text-align: center; padding-bottom: 1pt"><P STYLE="margin-top: 0; margin-bottom: 0">Recovery rate</P>
                                                          <P STYLE="margin-top: 0; margin-bottom: 0">Reserve
  adjustment factors Market approach</P></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">75</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="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; 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">35,977</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="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; 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="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; 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 $36.0 million and $30.7 million as of June 30, 2019 and December 31, 2018, respectively, our fair value determinations may materially
  differ from the values that would have been used had a ready market existed for these securities. As of June 30, 2019 and December
  31, 2018, one of our portfolio investments, consisting of 544,813 and 527,138 common shares of MVC, respectively, was publicly
  listed on the NYSE.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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 report those amounts to Lipper Analytical
  Services, Inc. Our net asset value appears in various publications, including <I>Barron&rsquo;s </I>and <I>The Wall Street Journal</I>.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 the Fund owns more than 25% of the voting securities or maintains greater than 50% of the
  board representation. 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. <I>See also Note 4 for discussion of related party
  investment transactions.</I></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">As of June 30,
  2019, we had no outstanding commitments to our portfolio company investments; however, 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. Follow-on investments may include capital infusions which are expenditures made directly
  to the portfolio company to ensure that operations are completed, thereby allowing the portfolio company to generate cash flows
  to service their debt.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 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. 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 will write off uncollectible interest upon the occurrence of a definitive event such as a sale,
  bankruptcy, or reorganization of the relevant portfolio interest.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&mdash;Realized
  gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial
  instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation
  previously recognized, and includes investments written-off during the </FONT></P>
  
  
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"></P>
  
  <!-- Field: Page; Sequence: 18 -->
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> period net of recoveries and realized gains or losses from in-kind redemptions. Net change in
  unrealized appreciation or depreciation reflects the net change in the fair value of the portfolio company investments and financial
  instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial
  instruments to realized gains or losses.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 recorded 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. To the extent we remain BDC and a RIC, we will continue to 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 394.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Share-Based
  Compensation</B>&mdash;We account for our share-based compensation using the fair value method, as prescribed by ASC 718, Compensation&mdash;Stock
  Compensation. Accordingly, for restricted stock awards, we measure the grant date fair value based upon the market price of our
  common stock on the date of the grant and amortize the fair value of the awards as share-based compensation expense over the requisite
  service period, which is generally the vesting term and account for forfeitures as they occur.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Earnings Per
  Share</B>&mdash;Basic and diluted per share calculations are computed utilizing the weighted-average number of shares of common
  stock outstanding for the period. In accordance with ASC 260, Earnings Per Share, the unvested shares of restricted stock awarded
  pursuant to our equity compensation plans are participating securities and, therefore, are included in the basic earnings per share
  calculation. As a result, for all periods presented, there is no difference between diluted earnings per share and basic earnings
  per share amounts.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Taxes</B>&mdash;So
  long as we remain a BDC, we intend to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated
  investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized
  capital gains) which is distributed to stockholders. Therefore, no provision for federal income taxes is recorded in the financial
  statements. We borrow money from time to time to maintain our tax status under the Internal Revenue Code as a RIC. See Note 1 for
  discussion of Taxable Subsidiaries and see Note 2 for further discussion of the Fund&rsquo;s RIC borrowings.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">All corporations
  organized 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 $0.02 million for the year ended December 31, 2018.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 have no provision for margin tax expense for the six months ended June 30, 2019, respectively, and
  we paid $3 thousand in state income tax for the year ended December 31, 2018.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Accounting Standards
  Recently Adopted</B>&mdash; In February 2016, the FASB issued ASU 2016-02, <I>Leases, </I>which requires lessees to recognize on
  the balance sheet a right of use asset, representing its right to use the underlying asset for the lease term, and a lease liability
  for all leases with terms greater than 12 months and the use of practical expedient for leases less than 12 months. The guidance
  also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising
  from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional
  practical expedients that entities may elect to apply. The new guidance is effective for annual periods beginning after December
  15, 2018, and interim periods therein. Early application was permitted. The adoption of ASU 2016-02 did not have an impact on our
  financial statements as we currently have no operating leases as our principal offices are under a month-to-month lease arrangement
  for annual periods beginning after December 15, 2018, and interim periods therein. Early application is permitted. There was no
  impact on the financial position or financial statement disclosures.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Accounting Standards
  Not Yet Adopted</B>&mdash;In June 2016, the FASB issued ASU 2016-13, <I>Financial Instruments-Credit Losses (Topic 326) </I>&mdash;<I>Measurement
  of Credit Losses on Financial Instruments</I>, which amends the financial instruments impairment guidance so that an entity is
  required to measure expected credit losses for </P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">financial assets based on historical experience, current conditions and reasonable
  and supportable forecasts. As such, an entity will use forward-looking information to estimate credit losses. ASU 2016-13 also
  amends the guidance in FASB ASC Subtopic 325-40,Investments -Other, Beneficial Interests in Securitized Financial Assets, related
  to the subsequent measurement of accretable yield recognized as interest income over the life of a beneficial interest in securitized
  financial assets under the effective yield method. ASU 2016-13 effective for public business entities that meet the U.S. GAAP definition
  of an SEC filer, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early
  adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.
  There was no impact on the financial position or financial statement disclosures.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">On August 28, 2018,
  the FASB issued ASU 2018-13, which changes the fair value measurement disclosure requirements of ASC 820. The amendments remove
  certain disclosure requirements and modify certain others. The amendments remove the requirement to disclose (1) the amount of
  and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between
  levels, (3) the valuation processes for Level 3 fair value measurements and (4) the changes in unrealized gains and losses for
  the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. Also, (1)
  in lieu of a roll-forward for Level 3 fair value measurements, an entity is required to disclose transfers into and out of Level
  3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities, (2) for investments in certain entities
  that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee&rsquo;s assets and the
  date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced
  the timing publicly, and (3) the amendments clarify that the measurement uncertainty disclosure is to communicate information about
  the uncertainty in measurement as of the reporting date. Early adoption is permitted. We are currently evaluating the impact of
  ASU 2018-13 on our financial statements and will make any disclosure adjustments in year-end financial statements.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(4)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Related Party Transactions and Agreements </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Except as noted
  below, as compensation for services to the Fund, each Independent Director receives an annual fee of $40,000 paid quarterly in
  arrears, a fee of $2,000 for each meeting of the Board of Directors or committee thereof attended in person, a fee of $1,000 for
  participation in each telephonic meeting of the Board or committee thereof, and reimbursement of all out-of-pocket expenses relating
  to attendance at such meetings. The chair of each of our standing committees (audit, compensation, and nominating and governance)
  also receives an annual fee of $50,000, payable quarterly in arrears. 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. None of our interested directors receive annual fees for their service on the Board of Directors.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We may also pay
  other one-time or recurring fees to members of our Board of Directors in special circumstances. <FONT STYLE="background-color: white">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 $300 per hour for services.&nbsp; </FONT>During each of the six months ended June 30, 2019 and June 30, 2018,
  we paid Kenneth I. Denos, P.C., a professional corporation owned by Kenneth I. Denos, a director of the Fund, $0.2 million for
  services provided to the Fund.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <!-- Field: Page; Sequence: 20 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B>&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(5)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Portfolio Securities </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2019, we received dividends in the form of additional shares of $0.2 million relating to our shareholding
  in MVC.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Also during the
  six months ended June 30, 2019, we dissolved Equus Media Development Company, LLC (&ldquo;EMDC&rdquo;), a wholly-owned subsidiary
  of the Fund and transferred EMDC&rsquo;s assets, consisting of approximately $210,000 in cash and various creative entertainment
  properties, to the Fund.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2019, we recorded a net change in unrealized appreciation of $8.8 million, to a net unrealized appreciation
  of $25.9 million. Such change in unrealized appreciation resulted primarily from the following changes:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 5%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(i)</FONT></TD>
      <TD STYLE="width: 94%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Increase in the fair value of our shareholding in MVC of $0.7 million due to an increase in the share price of MVC and the receipt of dividend payments in the form of additional shares of MVC during the period;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(ii)</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Increase in fair value of our shareholding in PalletOne, Inc. of $4.0 million due to improved operating performance and overall improvement in comparable industry sectors;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(iii)</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Transfer of unrealized depreciation to realized loss of our holdings in EMDC of $2.8 million in connection with the dissolution of EMDC and the transfer of its assets to the Fund; and </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(iv)</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Increase in the fair value of our holdings in Equus Energy, LLC of $1.5 million, principally due to increases in mineral acreage prices proximate to the company&rsquo;s leasehold interests and an increase in the short- and long-term prices for crude oil during the first half of 2019.</FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2018, we received dividends in the form of additional shares of $0.1 million relating to our shareholding
  in MVC.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2018, we recorded a net change in unrealized appreciation of $2.9 million, to a net unrealized appreciation
  of $16.2 million. Such change in unrealized appreciation resulted primarily from the following changes:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 5%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(i)</FONT></TD>
      <TD STYLE="width: 94%">
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Decrease in the fair value of our shareholding in MVC of
          $0.4 million due to a decrease in the share price of MVC, offset by the receipt of dividend payments in the form of additional
          shares of MVC during the period;</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(ii)</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">Increase in fair value of our shareholding in PalletOne, Inc.
          of $2.3 million due to increases in revenue and EBITDA, as well as promising acquisition and growth prospects; and</P>
          <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(iii)</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Increase in the fair value of our holdings in Equus Energy,
          LLC of $1.0 million, principally due to increases in mineral acreage prices proximate to the company&rsquo;s leasehold interests
          and a moderate increase in the short- and long-term prices for crude oil and natural gas.</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 21 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(6)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Plan of Reorganization</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Plan of Reorganization
  and Share Exchange with MVC Capital</B> &mdash;On May 14, 2014, we announced that the Fund intended to effect a reorganization
  pursuant to Section 2(a)(33) of the 1940 Act (hereinafter, the &ldquo;Plan of Reorganization&rdquo;). As a first step to consummating
  the Plan of Reorganization, we sold to MVC Capital, Inc. (&ldquo;MVC&rdquo;) 2,112,000 newly-issued shares of the Fund&rsquo;s
  common stock in exchange for 395,839 shares of MVC (such transaction is hereinafter referred to as the &ldquo;Share Exchange&rdquo;).
  MVC is a business development company traded on the NYSE that provides long-term debt and equity investment capital to fund growth,
  acquisitions and recapitalizations of companies in a variety of industries. The Share Exchange was calculated based on the Fund&rsquo;s
  and MVC&rsquo;s respective net asset value per share. At the time of the Share Exchange, the number of MVC shares received by Equus
  represented approximately 1.73% of MVC&rsquo;s total outstanding shares of common stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Pursuant to the
  terms of a Share Exchange Agreement, dated May 12, 2014, entered into by Equus and MVC which memorialized the Share Exchange, we
  intend to finalize the Plan of Reorganization by pursuing a merger or consolidation with MVC or an operating company, which operating
  company may be a subsidiary or portfolio company of MVC (such transaction is hereinafter referred to as a &ldquo;Consolidation&rdquo;).
  Absent Equus merging or consolidating with/into MVC or a subsidiary thereof, our current intention is for Equus to (i) terminate
  its election to be classified as a BDC under the 1940 Act, and (ii) be restructured as a publicly-traded operating company focused
  on the energy, natural resources, technology, and/or financial services sector. While we are presently evaluating various opportunities
  that could enable us to accomplish a Consolidation, we cannot assure you that we will be able to do so within any particular time
  period or at all. Moreover, we cannot assure you that the terms of any such transaction that would embody a Consolidation would
  be acceptable to us.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Authorization
  to Withdraw BDC Election</B>&mdash;On January 21, 2019, holders of a majority of the outstanding common stock of the Fund approved
  our cessation as a BDC under the 1940 Act and authorized our Board to cause the Fund&rsquo;s withdrawal of its election to be classified
  as a BDC, effective as of a date designated by the Board and our Chief Executive Officer. Although this authorization, which was
  given as a consequence of our Plan of Reorganization, expired on July 31, 2019, we expect to receive an additional authorization
  from our stockholders in the future. Notwithstanding any such authorization to withdraw our BDC election, we will not submit any
  such withdrawal unless and until Equus has entered into a definitive agreement to effect a &ldquo;Consolidation&rdquo;. Further,
  even if we are again authorized to withdraw our election as a BDC, we will require a subsequent affirmative vote from holders of
  a majority of our outstanding voting shares to enter into any such definitive agreement or change the nature of our business.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(7)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>2016 Equity Incentive Plan</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Share-Based
  Incentive Compensation</B>&mdash;On June 13, 2016, our shareholders approved the adoption of our 2016 Equity Incentive Plan (&ldquo;Incentive
  Plan&rdquo;). On January 10, 2017, the SEC issued an order approving the Incentive Plan and certain awards intended to be made
  thereunder. The Incentive Plan is intended to promote the interests of the Fund by encouraging officers, employees, and directors
  of the Fund and its affiliates to acquire or increase their equity interest in the Fund and to provide a means whereby they may
  develop a proprietary interest in the development and financial success of the Fund, to encourage them to remain with and devote
  their best efforts to the business of the Fund, thereby advancing the interests of the Fund and its stockholders. The Incentive
  Plan is also intended to enhance the ability of the Fund and its affiliates to attract and retain the services of individuals who
  are essential for the growth and profitability of the Fund. The Incentive Plan permits the award of restricted stock as well as
  common stock purchase options. The maximum number of shares of common stock that are subject to awards granted under the Incentive
  Plan is 2,434,728 shares. The term of the Incentive Plan will expire on June 13, 2026. On March 17, 2017, we granted awards of
  restricted stock under the Incentive Plan to certain of our directors and executive officers in the aggregate amount of 844,500
  shares. The awards are each subject to a vesting requirement over a 3-year period unless the recipient thereof is terminated or
  removed from their position as a director or executive officer without &ldquo;cause&rdquo;, or as a result of constructive termination,
  as such terms are defined in the respective award agreements entered into by each of the recipients and the Fund. As of March 31,
  2019, 280,000 shares of restricted stock which were granted pursuant to the Incentive Plan, remained unvested. We account for share-based
  compensation using the fair value method, as prescribed by ASC 718. Accordingly, for restricted stock awards, we measure the grant
  date fair value based upon the market price of our common stock on the date of the grant and amortize the fair value of the awards
  as share-based compensation expense over the requisite service period, which is generally the vesting term. For the six months
  ended June 30, 2019 and 2018, we recorded compensation expense of $0.2 million and $0.3 million, respectively, in connection with
  these awards.&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>
  
  <!-- Field: Page; Sequence: 22 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(8)</B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Equus Energy, LLC</B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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 &amp; 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, which presently comprise 141 producing and non-producing oil and gas
  wells. The working interests include associated development rights of approximately 21,520 acres situated on 11 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.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The wells are operated
  by a number of experienced operators, including Chevron USA, Inc., which has operating responsibility for all of Equus Energy&rsquo;s
  40 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, is working with Chevron in a recompletion program of existing Conger Field wells to the Wolfcamp formation,
  a zone containing oil as well as gas and natural gas liquids. 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 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 located in the area known as the &ldquo;Eagle Ford
  Shale&rdquo; play.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Revenue and
  Income</B>&mdash;During the three months ended June 30, 2019, Equus Energy&rsquo;s revenue, operating revenue less direct operating
  expenses, and net loss were $0.2 million, $0.02 million, and ($0.08) million, respectively, as compared to revenue, operating revenue
  less direct operating expenses, and net loss which $0.3 million, $0.05 million, and ($0.1) million, respectively, for the three
  months ended June 30, 2018.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Capital Expenditures</B>&mdash;During
  the three months ended June 30, 2019 and June 30, 2018, Equus Energy&rsquo;s investment, respectively, in capital expenditures
  for small repairs and improvements was not significant. The operators of the various working interest communicated their intent
  to wait until 2019, commensurate with an anticipated gradual rise in the price of crude oil, to commence new drilling and recompletion
  projects.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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
  balance sheets. Our investment in Equus Energy is valued in accordance with our normal valuation procedures and is based in part
  on using a discounted cash flow analysis based on a reserve report prepared for Equus Energy by Lee Keeling &amp; Associates, Inc.,
  an independent petroleum engineering firm, the transactions and values of comparable companies in this sector, and the estimated
  value of leasehold mineral interests associated with the acreage held by Equus Energy. A valuation of Equus Energy was performed
  by a third-party valuation firm, who recommended a value range of Equus Energy consistent with the fair value determined by our
  Management (See <I>Schedule of Investments</I><FONT STYLE="background-color: white">)</FONT>.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 23 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Below is summarized
  consolidated financial information for Equus Energy as of June 30, 2019 and December 31, 2018 and for the six months June 30, 2019
  and 2018, respectively, (in thousands):</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS ENERGY, LLC </U></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Unaudited Condensed Consolidated Balance
  Sheets</U></P>
  
  <P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font-family: Sans-Serif; font-size: 9pt; color: Red"></FONT></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="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">June 30,</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">December 31,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center">&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; vertical-align: bottom">2019</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; vertical-align: bottom">2018</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</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" STYLE="text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>Assets</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Current 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="width: 56%; text-align: left; padding-left: 10pt">Cash and cash equivalents</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">832</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">966</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: 10pt">Accounts receivable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">112</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">127</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; padding-left: 10pt">Other current assets</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">34</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">34</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Total current assets</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">978</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,127</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Oil and gas properties</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,008</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,008</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">Less: accumulated depletion, depreciation and amortization</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">(7,854</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">(7,772</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net oil and gas properties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
      <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">154</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">236</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="2" STYLE="padding-bottom: 2.5pt">Total assets</TD><TD STYLE="border-bottom: Black 2.5pt double">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">$1,132</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">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">$1,363</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"></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: center">&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><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">Liabilities and member's equity</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: White">
      <TD STYLE="text-align: left">Current liabilities:</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; 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">Accounts payable and other</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">170</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">131</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; padding-left: 10pt">Due to affiliate</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">561</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">561</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">731</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">692</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">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">198</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">195</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="2">Total liabilities</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: right; vertical-align: bottom">929</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: right; vertical-align: bottom">887</TD><TD STYLE="text-align: right"></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">Total member's equity</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">203</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">476</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD COLSPAN="2" STYLE="padding-bottom: 2.5pt">Total liabilities and member's equity</TD><TD STYLE="border-bottom: Black 2.5pt double">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">$1,131</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">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">$1,363</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>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 9pt Sans-Serif; color: Red"></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Revenue and direct
  operating expenses for the various oil and gas assets included in the unaudited condensed consolidated statements of operations
  below 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, depletion, depreciation 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 operations 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 operations 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.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 24 -->
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      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS ENERGY, LLC </U></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Unaudited Condensed Consolidated Statements
  of Operations</U></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></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">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June
      30,</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Six
  Months Ended June 30,</P></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; vertical-align: bottom">2019</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; vertical-align: bottom">2018</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; vertical-align: bottom">2019</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; vertical-align: bottom">2018</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">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</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" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
      <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="width: 40%; text-align: left">Operating revenue</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">217</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">282</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">361</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">577</TD><TD STYLE="width: 1%; 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><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><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">Direct operating expenses</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">231</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">393</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">394</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">General and administrative</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">156</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">153</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">Depletion, depreciation, amortization and accretion</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">31</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">104</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">85</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">186</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; padding-left: 20pt">Total operating 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">302</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">394</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">634</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">733</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">Operating loss before income tax expense</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(85</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(112</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(273</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(156</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt">Income tax benefit (expense)</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><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: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(85</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(112</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(273</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
      <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(156</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>
  
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EQUUS ENERGY, LLC</U></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Unaudited Condensed Consolidated Statements
  of Cash Flows</U></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></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="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
      <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD></TR>
  <TR STYLE="vertical-align: bottom">
      <TD STYLE="text-align: center">&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; vertical-align: bottom">2019</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; vertical-align: bottom">2018</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">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left">Cash flows from operating activities:</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; 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="width: 56%; text-align: left">Net loss</TD><TD STYLE="width: 8%">&nbsp;</TD>
      <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">(273</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">(156</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 10pt">Adjustments to reconcile net loss to</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: 20pt">net cash 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>&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: 30pt">Depletion, depreciation, amortization and accretion</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">186</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">Changes in operating assets and liabilites:</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: 20pt">Accounts receivable</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(32</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-left: 20pt">Prepaid expenses and other current assets</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: rgb(204,238,255)">
      <TD STYLE="text-align: left; padding-left: 20pt">Accounts payable and other</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8</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; padding-left: 20pt">Due to affiliate</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">(25</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; padding-left: 30pt">Net cash used in operating 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">(134</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">(19</TD><TD STYLE="padding-bottom: 1pt; 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: 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">Cash flows from investing activities:</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
      <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Investment in oil &amp; gas properties</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">(63</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; padding-left: 20pt">Net cash used in investing 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">(63</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
      <TD STYLE="text-align: left">Net decrease in cash</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(134</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
      <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(82</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">966</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">307</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">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">832</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">225</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>
  
  
  <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
  
  <P STYLE="margin-top: 0; margin-bottom: 0"></P>
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>
  
  <!-- Field: Page; Sequence: 25 -->
      <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
      <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A>&nbsp;</TD></TR></TABLE></DIV>
      <!-- Field: /Page -->
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"><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 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.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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, depreciation, amortization
  and accretion expense for the Company&rsquo;s oil and gas properties totaled $0.03 million and $0.1 million for the three months
  ended June 30, 2019 and 2018, respectively and $0.1 million and $0.2 million for the six months ended June 30, 2019 and June 30,
  2018, respectively .</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Capitalized oil
  and gas property costs are limited to an amount (the ceiling limitation) equal to the sum of the following:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 60px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 60px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(a)</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">As of June 30, 2019, 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%;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(b)</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">The cost of investments in unproved and unevaluated properties excluded from the costs being amortized; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(c)</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">The lower of cost or estimated fair value of unproved properties included in the costs being amortized.</FONT></TD></TR>
  </TABLE>
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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 its oil and gas properties during the three months
  ended June 30, 2019 and 2018, respectively.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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 impairment
  or reduction in value. If a reduction in value has occurred, costs being amortized are increased accordingly.&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"><B>Revenue Recognition</B>&mdash;Revenue
  recognized for oil and natural gas sales under the sales method of accounting. Under this method, revenue is 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 leasehold interest. These differences result from production imbalances, which are not significant, and are reflected
  as adjustments to proven reserves and future cash flows in the unaudited consolidated financial information included herein.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Depreciation,
  Depletion and Amortization</B>&mdash;The Company employs the &ldquo;Units of Production&rdquo; method in calculating depletion
  of its proved oil and gas properties, wherein 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Income Taxes</B>&mdash;A
  limited liability company is not subject to the payment of federal income taxes as components of its income and expenses flow through
  directly to the members. However, the Company is subject to certain state income taxes. 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. Taxable Subsidiaries
  may generate income tax expense because of the Taxable Subsidiaries&rsquo; ownership of the portfolio companies. We reflect any
  such income tax expense on our Statements of Operations.&nbsp; As of June 30, 2019 and 2018, the Company had no federal income
  tax expense.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Asset Retirement
  Obligations</B>&mdash;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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 30px; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>(9) </B></FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Subsequent Events </B></FONT></TD></TR>
  </TABLE>
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Management performed
  an evaluation of the Fund&rsquo;s activity through the date the financial statements were issued, noting the following subsequent
  events:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">On July 5, 2019,
  we sold $27.0 million of U.S. Treasury Bills we acquired on margin in June 2019 and used the proceeds to repay the margin loan.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;<B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a009"></A>Item 2. Management&rsquo;s Discussion and Analysis of
  Financial Condition and Results of Operations</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Equus Total Return,
  Inc. (&ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus,&rdquo; and the &ldquo;Fund&rdquo;), a Delaware corporation,
  was formed on August 16, 1991. Our shares trade on the New York Stock Exchange under the symbol &lsquo;EQS&rsquo;. Our investment
  strategy seeks to provide the highest total return, consisting of capital appreciation and current income.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The information
  contained in this section should be read in conjunction with our financial statements and notes thereto appearing elsewhere in
  this Quarterly Report and in conjunction with the financial statements and notes thereto in the Fund&rsquo;s Form 10-K for the
  year ended December 31, 2018, as filed with the SEC. In addition, some of the statements in this report constitute forward-looking
  statements. The matters discussed in this Quarterly Report, as well as in future oral and written statements by management of Equus,
  that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties
  which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements.
  Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements
  by terminology such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;expects,&rdquo; &ldquo;plans,&rdquo;
  &ldquo;anticipates,&rdquo; &ldquo;could,&rdquo; &ldquo;intends,&rdquo; &ldquo;target,&rdquo; &ldquo;projects,&rdquo; &ldquo;believes,&rdquo;
  &ldquo;estimates,&rdquo; &ldquo;predicts,&rdquo; &ldquo;potential&rdquo; or &ldquo;continue&rdquo; or the negative of these terms
  or other similar words. Important assumptions include our ability to originate new investments, achieve certain margins and levels
  of profitability, and the availability of additional capital. In light of these and other uncertainties, the inclusion of a forward-looking
  statement in this Quarterly Report should not be regarded as a representation by us that our plans or objectives will be achieved.
  The forward-looking statements contained in this Quarterly Report include statements as to:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 60px; padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 30px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">our future operating results;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">our business prospects and the prospects of our existing and prospective portfolio companies; </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">the return or impact of current and future investments;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">our contractual arrangements and other relationships with third parties;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">the dependence of our future success on the general economy and its impact on the industries in which we invest;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">our expected financings and investments;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">our regulatory structure and tax treatment;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">our ability to qualify and operate as a BDC and a RIC, including the impact of changes in laws or regulations governing our operations, or the operations of our portfolio companies;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">the adequacy of our cash resources and working capital;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">the timing of cash flows, if any, from the operations of our portfolio companies;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">the impact of fluctuations in interest rates on our business;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">the valuation of our investments in portfolio companies, particularly those having no liquid trading market;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">our ability to recover unrealized losses; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">&bull;</FONT></TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">market conditions and our ability to access additional capital, if deemed necessary.</FONT></TD></TR>
  </TABLE>
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">There are a number
  of important risks and uncertainties that could cause our actual results to differ materially from those indicated by such forward-looking
  statements. For a discussion of factors that could cause our actual results to differ from forward-looking statements contained
  in this Quarterly Report, please see the discussion in Part II, &ldquo;Item 1A. Risk Factors&rdquo;, and in Part I, &ldquo;Item
  1A. Risk Factors&rdquo; in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. You should not place undue
  reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report relate only to events
  as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect
  events or circumstances occurring after the date this Quarterly Report is filed with the SEC.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <!-- Field: Page; Sequence: 27 -->
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  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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. 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 (and smaller public 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.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We elected to be
  treated as a BDC under the 1940 Act. We currently qualify as a 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&rsquo; ownership of the portfolio
  investments. We reflect any such income tax expense on our Statements of Operations.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0"><B>Plan of Reorganization </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Plan of Reorganization
  and Share Exchange with MVC Capital</B> &mdash;On May 14, 2014, we announced that the Fund intended to effect a reorganization
  pursuant to Section 2(a)(33) of the 1940 Act (hereinafter, the &ldquo;Plan of Reorganization&rdquo;). As a first step to consummating
  the Plan of Reorganization, we sold to MVC Capital, Inc. (&ldquo;MVC&rdquo;) 2,112,000 newly-issued shares of the Fund&rsquo;s
  common stock in exchange for 395,839 shares of MVC (such transaction is hereinafter referred to as the &ldquo;Share Exchange&rdquo;).
  MVC is a business development company traded on the NYSE that provides long-term debt and equity investment capital to fund growth,
  acquisitions and recapitalizations of companies in a variety of industries. The Share Exchange was calculated based on the Fund&rsquo;s
  and MVC&rsquo;s respective net asset value per share. At the time of the Share Exchange, the number of MVC shares received by Equus
  represented approximately 1.73% of MVC&rsquo;s total outstanding shares of common stock.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Pursuant to the
  terms of a Share Exchange Agreement, dated May 12, 2014, entered into by Equus and MVC which memorialized the Share Exchange, we
  intend to finalize the Plan of Reorganization by pursuing a merger or consolidation with MVC or an operating company, which operating
  company may be a subsidiary or portfolio company of MVC (such transaction is hereinafter referred to as a &ldquo;Consolidation&rdquo;).
  Absent Equus merging or consolidating with/into MVC or a subsidiary thereof, our current intention is for Equus to (i) terminate
  its election to be classified as a BDC under the 1940 Act, and (ii) be restructured as a publicly-traded operating company focused
  on the energy, natural resources, technology, and/or financial services sector. While we are presently evaluating various opportunities
  that could enable us to accomplish a Consolidation, we cannot assure you that we will be able to do so within any particular time
  period or at all. Moreover, we cannot assure you that the terms of any such transaction that would embody a &ldquo;Consolidation&rdquo;
  would be acceptable to us.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Authorization
  to Withdraw BDC Election</B>&mdash; On January 21, 2019, holders of a majority of the outstanding common stock of the Fund approved
  our cessation as a BDC under the 1940 Act and authorized our Board to cause the Fund&rsquo;s withdrawal of its election to be classified
  as a BDC, effective as of a date designated by the Board and our Chief Executive Officer. Although this authorization, which was
  given as a consequence of our Plan of Reorganization, expired on July 31, 2019, we expect to receive an additional authorization
  from our stockholders in the future. Notwithstanding any such authorization to withdraw our BDC election, we will not submit any
  such withdrawal unless and until Equus has entered into a definitive agreement to effect a &ldquo;Consolidation&rdquo;. Further,
  even if we are again authorized to withdraw our election as a BDC, we will require a subsequent affirmative vote from holders of
  a majority of our outstanding voting shares to enter into any such definitive agreement or change the nature of our business.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0"><B>2016 Equity Incentive Plan</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">On June 13, 2016,
  our shareholders approved the adoption of our 2016 Equity Incentive Plan (&ldquo;Incentive Plan&rdquo;). On January 10, 2017, the
  SEC issued an order approving the Incentive Plan and certain awards intended to be made thereunder. The Incentive Plan is intended
  to promote the interests of the Fund by encouraging officers, employees, and directors of the Fund and its affiliates to acquire
  or increase their equity interest in the Fund and to provide a means whereby they may develop a proprietary interest in the development
  and financial success of the Fund, to encourage them to remain with and devote their best efforts to the business of the Fund,
  thereby advancing the interests of the Fund and its stockholders. The Incentive Plan is also intended to enhance the ability of
  the Fund and its affiliates to attract and retain the services of individuals who are essential for the growth and profitability
  of the Fund. The Incentive Plan permits the award of restricted stock as well as common stock purchase options. The maximum number
  of shares of common stock that are subject to awards granted under the Incentive Plan is 2,434,728 shares. The term of the Incentive
  Plan will expire on June 13, 2026. On March 17, 2017, we granted awards of restricted stock under the Plan to certain of our directors
  and executive officers in the aggregate amount of 844,500 shares. The awards are each subject to a vesting requirement over a 3-year
  period unless the recipient thereof is terminated or removed from their position as a director or executive officer without &ldquo;cause&rdquo;,
  or as a result of constructive termination, as such terms are defined in the respective award agreements entered into by each of
  the recipients and the Fund. For the three months ended March 31, 2019 and 2018, we recorded compensation expense of $0.08 million
  and $0.2 million, respectively, in connection with these awards.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0"><B>Critical Accounting Policies </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">See the Fund&rsquo;s
  Critical Accounting Policies from the disclosure set forth in the Fund&rsquo;s Annual Report on Form 10-K for the year ended December
  31, 2018.<B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><B><I>Current Market Conditions</I></B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The U.S. economy
  expanded at an annualized rate of 2.1% during the second quarter of 2019, following growth of 3.1% during the first quarter of
  2019 and an increase of 2.9% for all of 2018. The decrease in GDP during the second quarter of 2019 was principally due to decreased
  exports, higher inventories, lower fixed residential and nonresidential investment, and increased imports. Despite rising trade
  tensions, the Conference Board Economic Forecast projects overall GDP growth in 2019 to be 2.5%, decreasing to 2.0% for 2020. The
  U.S. unemployment rate is near a 50-year low, continuing to present a tight labor market for employers. Meanwhile, housing starts
  and building permits slowed during 2018 and have continued to trend downward during the first six months of 2019, which has contrasted
  with strong growth in existing home sales during the same period. Business investment has continued to be a strong contributor
  to GDP growth and is expected to remain largely stable during the remainder of 2019. (Sources: <I>U.S. Dept. of Commerce Bureau
  of Economic Analysis, Bureau of Labor Statistics, Conference Board Leading Economic Index</I>).</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Merger and acquisition
  activity was strong in 2018, with $3.5 trillion in worldwide transactions consummated during the year. Although such activity slowed
  during the first quarter of 2019, it accelerated during the second quarter of 2019, resulting in approximately $2 trillion in global
  transactions announced during the six month period. In the United States, merger and acquisition activity was up 19% in the first
  six months of 2019 as compared to the six months ended June 30, 2018. Market conditions for business transactions during the first
  six months of 2019 have continued to steadily improve, continuing a multi-year trend, as larger corporations have had increased
  access to credit markets and are still holding significant amounts of cash and have focused on acquisitions as part of future growth
  plans. Private equity funds raised almost $46 billion during the first three months of 2019, but did so in an increasingly smaller
  number of vehicles, resulting in larger fund sizes overall. Total investments during the quarter were approximately $202 billion,
  an increase of 3.6% from the first quarter of 2018. Data for the second quarter of 2019 have not yet been released but larger amounts
  of capital have pushed median valuation multiples above 12x during the first six months of 2019, constraining investment yields
  (Sources: <I>The New York Times, The Wall Street Journal, PitchBook</I>).</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2019, our net asset value increased from $3.22 per share to $3.55 per share, an increase of 10.2%. As of
  June 30, 2019, our common stock is trading at a 53.8% discount to our net asset value as compared to 39.1% as of December 31, 2018.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 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,
  to the extent we remain a BDC, we expect to achieve efficiencies in our cost structure if we are able to grow the Fund.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Liquidity and Capital Resources </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0 0 0 0.4in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 believe
  we have followed valuation techniques in a reasonably consistent manner; however, we are cognizant of current market conditions
  that might affect future valuations of portfolio securities. In view of our present status as a BDC and our anticipated transformation
  into an operating company, 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.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Results of Operations </B>&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Investment Income and Expense </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal 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-align: justify; text-indent: 24.5pt">Net investment loss was $0.8 million
  and $0.9 million for the three months ended June 30, 2019 and 2018, respectively, and $1.8 million and $1.9 million for the six
  months ended June 30, 2019 and June 30, 2018, respectively, due to a decline in professional fees for the periods.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Investment income
  was $0.1 million for the three months ended June 30, 2019 and 2018, respectively and $0.1 million and $0.2 million for the six
  months ended June 30, 2019 and 2018. The decrease is due to the decline of interest-bearing investments. Total expense was $0.9
  million and $1.1 million for the three months ended June 30, 2019 and 201, respectively and $1.9 million and $2.2 million for the
  six months ended June 30, 2019. This decrease was mainly due to the decline in compensation expense and professional fees.</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <!-- Field: Page; Sequence: 30 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Realized
  Gains and Losses on Sales of Portfolio Securities</B></FONT>&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2019, we realized a loss of $2.8 million from the dissolution and liquidation of Equus Media Development
  Company LLC (&ldquo;EMDC&rdquo;).</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six months ended June 30,
  2018, we realized a gain of $1.0 thousand from the sale of temporary cash investments.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Changes in Unrealized Appreciation/Depreciation
  of Portfolio Securities</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six months ended June 30,
  2019, we recorded a net change in unrealized appreciation of $8.8 million, to a net unrealized appreciation of $25.9 million. Such
  change in unrealized appreciation resulted primarily from the following changes:</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 5%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(i)</FONT></TD>
      <TD STYLE="width: 94%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Increase in the fair value of our shareholding in MVC of $0.7 million due to an increase in the share price of MVC and the receipt of dividend payments in the form of additional shares of MVC during the period;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(ii)</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Increase in fair value of our shareholding in PalletOne, Inc. of $4.0 million due to improved operating performance and overall improvement in comparable industry sectors;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(iii)</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Transfer of unrealized depreciation to realized loss of our holdings in EMDC of $2.8 million in connection with the liquidation and dissolution of EMDC; and </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(iv)</FONT></TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Increase in the fair value of our holdings in Equus Energy, LLC of $1.5 million, principally due to increases in mineral acreage prices proximate to the company&rsquo;s leasehold interests and an increase in the short- and long-term prices for crude oil during the first half of 2019.</FONT></TD></TR>
  </TABLE>
  
  
  <P STYLE="font: 10pt/normal 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">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2018, we recorded a net change in unrealized appreciation of $2.9 million, to a net unrealized appreciation
  of $16.2 million. Such change in unrealized appreciation resulted primarily from the following changes:</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="width: 5%; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(i)</FONT></TD>
      <TD STYLE="width: 95%">
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Decrease in the fair value of our shareholding in MVC of
          $0.4 million due to a decrease in the share price of MVC, offset by the receipt of dividend payments in the form of additional
          shares of MVC during the period;</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(ii)</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">Increase in fair value of our shareholding in PalletOne, Inc.
          of $2.3 million due to increases in revenue and EBITDA, as well as promising acquisition and growth prospects; and</P>
          <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(iii)</FONT></TD>
      <TD>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Increase in the fair value of our holdings in Equus Energy,
          LLC of $1.0 million, principally due to increases in mineral acreage prices proximate to the company&rsquo;s leasehold interests
          and a moderate increase in the short- and long-term prices for crude oil and natural gas.</P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  </TABLE>
  
  
  <P STYLE="font: 10pt/normal 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">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;<B>Dividends </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Portfolio Securities </B>&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2019, we received dividends in the form of additional shares of $0.2 million relating to our shareholding
  in MVC.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">During the six
  months ended June 30, 2018, we received dividends in the form of additional shares of $0.1 million relating to our shareholding
  in MVC.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Also during the
  six months ended June 30, 2019, we dissolved EMDC, a wholly-owned subsidiary of the Fund and transferred EMDC&rsquo;s assets, consisting
  of approximately $211,000 in cash and various creative entertainment properties, to the Fund.&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Subsequent Events </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We performed an
  evaluation of the Fund&rsquo;s activity through the date the financial statements were issued, noting the following subsequent
  events:</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">On July 5, 2019,
  we sold $27.0 million of U.S. Treasury Bills we acquired on margin in June 2019 and used the proceeds to repay the margin loan.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;&nbsp;&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a010"></A>Item 3. Quantitative and Qualitative Disclosure about
  Market Risk </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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, 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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 could also consist 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt"><B><A NAME="a011"></A>Item 4. Controls and
  Procedures </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">We maintain disclosure
  controls and other procedures that are designed to ensure that information required to be disclosed by the Fund in the reports
  that we file or submit 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 our management, including our
  Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Our management,
  with the participation of our 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 June 30, 2019. Based on their evaluation, our 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 our internal control over financial reporting during the quarter ended June 30, 2019, that has materially
  affected, or is reasonably likely to materially affect, our internal control over financial reporting.&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <!-- Field: Page; Sequence: 32 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a012"></A><B>Part II. Other Information </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt"><FONT STYLE="background-color: white"><B><A NAME="a013"></A>Item
  1. Legal Proceedings&nbsp;</B></FONT></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 55.05pt; text-indent: -55.1pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B>Shareholder
  Complaint</B>&mdash;On November 16, 2016, Samuel Zalmanoff filed a lawsuit against the Fund and members of the Board of Directors
  in the Court of Chancery in the State of Delaware. The lawsuit was filed in connection with the Fund&rsquo;s 2016 Equity Incentive
  Plan (&ldquo;Incentive Plan&rdquo;) which was adopted by the Board of Directors on April 15, 2016, approved by the Equus shareholders
  on June 13, 2016, and approved, with certain standard exceptions, by the Securities and Exchange Commission on January 10, 2017.
  Mr. Zalmanoff&rsquo;s complaint, which purports to be on behalf of all non-affiliate Equus shareholders entitled to vote for the
  Incentive Plan, purports to allege a breach by the Board of Directors of its fiduciary duties of disclosure in connection with
  the Incentive Plan, and seeks an order from the court: (i) enjoining implementation of the Incentive Plan, (ii) requiring the Fund
  to revise its disclosures relating to the Incentive Plan, and (iii) for an award of costs, attorneys&rsquo; fees, and expenses.
  We believe that this lawsuit, and the allegations included therein, are without merit. On September 22, 2017, we filed a motion
  for summary judgment regarding this action, which was granted by the Chancery Court on November 13, 2018. Mr. Zalmanoff appealed
  the Chancery Court ruling to the Delaware Supreme Court. On May 16, 2019, the Delaware Supreme Court affirmed the Chancery Court
  decision and terminated the proceedings.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; 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/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a014"></A><B>Item 1A. Risk Factors </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">In connection with
  our efforts to convert Equus into an operating company in furtherance of our Plan of Reorganization, we may be subject to a number
  of risks associated with this process, the transactions that would embody a Consolidation of Equus with another company, as well
  as specific risks associated with the commercial enterprise with which Equus would seek to combine itself. We intend to identify,
  as will be reasonably possible, such risks and include the same in our subsequent filings and reports with the Commission.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Readers should
  carefully consider these risks and all other information contained in our annual report on Form 10-K for the year ended December
  31, 2018, including the Fund&rsquo;s financial statements and the related notes thereto. Although there have been no changes to
  the risk factors facing the Fund since the filing of our Form 10-K, the risks and uncertainties described therein are not the only
  ones facing the Fund.</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Additional risks
  and uncertainties not presently known to us, or not presently deemed material by us, may also impair our operations and performance.&nbsp;&nbsp;</P>
  
  
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>
  
  
  <!-- Field: Page; Sequence: 33 -->
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      <!-- Field: /Page -->
  
  <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a015"></A>Item 6. Exhibits </B></P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
  
  <P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt"></P>
  
  <TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">3.</FONT></TD>
      <TD COLSPAN="3" STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Articles of Incorporation and by-laws</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(a)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000119312508071101/dex3a.htm">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 31, 2007]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(b)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000119312508071101/dex3b.htm">Certificate of Merger dated June 30, 1993, between the Fund and Equus Investments Incorporated [Incorporated by reference to Exhibit 3(b) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2007]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(c)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt">
          <A HREF="http://www.sec.gov/Archives/edgar/data/878932/000119312508071101/dex3c.htm">Amended and Restated Bylaws of the Fund. [Incorporated by reference to Exhibit 3(c) to Registrant&rsquo;s Current Report on Form 8-K filed on June 30, 2014.]</A>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">10.</FONT></TD>
      <TD COLSPAN="3" STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Material Contracts.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(a)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000119312509069640/dex10c.htm">Safekeeping Agreement between the Fund and Amegy Bank dated August 16, 2008. [Incorporated by reference to Exhibit 10(c) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2008.]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(b)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000139160912000074/ex10d_indemnificationagmnt.htm">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 31, 2011.]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(c)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000119312505062004/dex10h.htm">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 31, 2004.]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(d)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000119312510073579/dex10f.htm">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 31, 2009.]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(e)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000139160914000087/ex10_1shareexchange.htm">Share Exchange Agreement between the Fund and MVC Capital, Inc., dated May 14, 2014. [Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K, filed on May 15, 2014.]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">(f)</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="http://www.sec.gov/Archives/edgar/data/878932/000139160916000471/ex1_2016equityincentiveplan.htm">2016 Equity Incentive Plan, adopted June 13, 2016 [Incorporated by reference to Exhibit 1 to Registrant&rsquo;s Definitive Proxy Statement filed on May 5, 2016.]</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">31.</FONT></TD>
      <TD COLSPAN="3" STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Rule 13a-14(a)/15d-14(a) Certifications</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">1.</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: blue; line-height: 115%"><A HREF="ex311_equusqcertreq063019.htm">Certification by Chief Executive Officer</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">2.</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: blue; line-height: 115%"><A HREF="ex312_equusqcertreq063019.htm">Certification by Chief Financial Officer</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD COLSPAN="3" STYLE="line-height: 115%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
      <TD STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">32.</FONT></TD>
      <TD COLSPAN="3" STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Section 1350 Certifications</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">1.</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: blue; line-height: 115%"><A HREF="ex321_equus906cert063019.htm">Certification by Chief Executive Officer</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
      <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
      <TD STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">2.</FONT></TD>
      <TD COLSPAN="2" STYLE="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: blue; line-height: 115%"><A HREF="ex322_equus906cert063019.htm">Certification by Chief Financial Officer</A></FONT></TD></TR>
  <TR>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
      <TD STYLE="width: 96%; line-height: 115%">&nbsp;</TD></TR>
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  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a016"></A>SIGNATURE</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>
  
  <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">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.</P>
  
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  <TR>
      <TD STYLE="vertical-align: top; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Dated: August 14, 2019</FONT></TD>
      <TD STYLE="vertical-align: bottom; line-height: 115%">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">/s/
      John A. Hardy</FONT></TD></TR>
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      <TD STYLE="vertical-align: bottom; line-height: 115%">&nbsp;</TD>
      <TD STYLE="vertical-align: bottom">
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>John A. Hardy</B></P>
          <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0.75pt; text-align: center"><B>Chief  Executive
          Officer</B></P></TD></TR></TABLE>
  
  
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metadata_documents: [{"type": "10-Q", "sequence": "1", "filename": "f10q_equus063019.htm", "description": "FORM 10-Q", "secsgml_size_bytes": 552705}]
metadata_filer: {"company-data": {"conformed-name": "EQUUS TOTAL RETURN, INC.", "cik": "0000878932", "irs-number": "760345915", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "814-00098", "film-number": "191024274"}, "business-address": {"street1": "700 LOUISIANA STREET", "street2": "48TH FLOOR", "city": "HOUSTON", "state": "TX", "zip": "77002", "phone": "7135290900"}, "mail-address": {"street1": "700 LOUISIANA STREET", "street2": "48TH FLOOR", "city": "HOUSTON", "state": "TX", "zip": "77002"}, "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)
  ☒
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the quarterly period ended June 30,
  2019
  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.)
  700 Louisiana St., 48
  th
  Floor
  Houston, Texas
  77002
  (Address of principal executive offices)
  (Zip Code)
  (Former Name, Former Address and
  Former Fiscal Year, if Changed Since Last Report)
  Registrant's telephone number,
  including area code: (713) 529-0900
  Securities registered pursuant to
  Section 12(b) of the Act:
  Title of each class
  Name of each exchange
  on which registered
  Common Stock
  New York Stock Exchange
  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
  ☒
  No
  ☐
  Indicate
  by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 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
  ☒
  Smaller Reporting Company
  ☐
  Emerging Growth Company
  ☐
  If
  an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
  complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
  ☐
  Indicate
  by check mark whether the registrant is a shell company. Yes
  ☐
  No
  ☒
  There were 13,518,146
  shares of the registrant's common stock, $.001 par value, outstanding, as of August 14, 2019
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  (A Delaware Corporation)
  INDEX
  PAGE
  PART I. FINANCIAL INFORMATION
  Item 1. Unaudited Condensed Financial Statements
  3
  Condensed Balance Sheets
  3
  Condensed Statements of Operations
  4
  Condensed Statements of Changes in Net Assets
  5
  Condensed Statements of Cash Flows
  6
  Supplemental Information—Selected Per Share Data and Ratios
  7
  Schedules of Investments
  8
  Notes to Condensed Financial Statements
  12
  Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
  27
  Item 3. Quantitative and Qualitative Disclosure about Market Risk
  32
  Item 4. Controls and Procedures
  32
  PART II. OTHER INFORMATION
  Item 1
  .
  Legal Proceedings
  33
  Item 1A. Risk Factors
  33
  Item 6. Exhibits
  34
  SIGNATURE
  35
  2
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  CONDENSED BALANCE SHEETS
  (Unaudited)
  Part I. Financial Information
  Item 1. Unaudited Condensed Financial Statements
  June 30,
  2019
  December 31,
  2018
  (in thousands, except per share amounts)
  Assets
  Investments in portfolio securities at fair value:
  Control investments (cost at $7,050 and $10,050, respectively)
  $
  10,500
  $
  9,210
  Affiliate investments (cost at $350)
  24,500
  20,500
  Non-affiliate investments - related party (cost at $6,737 and $6,579, respectively)
  5,018
  4,328
  Non-affiliate investments (cost at $977)
  977
  977
  Total investments in portfolio securities at fair value
  40,995
  35,015
  Temporary cash investments
  26,990
  26,981
  Cash and cash equivalents
  5,407
  7,425
  Restricted cash
  270
  270
  Accounts receivable from affiliates
  561
  561
  Accrued interest and dividend receivable
  489
  568
  Other assets
  258
  121
  Total assets
  74,970
  70,941
  Liabilities and net assets
  Accounts payable
  24
  196
  Accounts payable to related parties
  23
  269
  Borrowing under margin account
  26,990
  26,981
  Total liabilities
  27,037
  27,446
  Commitments and contingencies (see Note 2)
  Net assets
  $
  47,933
  $
  43,495
  Net assets consist of:
  Common stock, par value
  $
  13
  $
  13
  Capital in excess of par value
  55,901
  55,741
  Undistributed net investment losses
  (31,114
  )
  (29,327
  )
  Undistributed net capital (losses) gains
  (2,748
  )
  9
  Unrealized appreciation of portfolio securities, net
  27,600
  19,310
  Unrealized depreciation of portfolio securities, net - related party
  (1,719
  )
  (2,251
  )
  Total net assets
  $
  47,933
  $
  43,495
  Shares of common stock issued and outstanding, $.001 par value, 50,000 shares authorized
  13,518
  13,518
  Shares of preferred stock issued and outstanding, $.001 par value, 5,000 shares authorized
  —
  —
  Net asset value per share
  $
  3.55
  $
  3.22
  The accompanying notes are an integral
  part of these financial statements.
  3
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  CONDENSED STATEMENTS OF OPERATIONS
  (Unaudited)
  Three Months Ended June 30,
  Six Months Ended June 30,
  (in thousands, except per share amounts)
  2019
  2018
  2019
  2018
  Investment income:
  Interest and dividend income:
  Non-affiliate investments - related party
  $
  80
  $
  75
  $
  80
  $
  149
  Non-affiliate investments
  —
  35
  —
  69
  Total interest and dividend income
  80
  110
  80
  218
  Interest from temporary cash investments
  11
  7
  26
  12
  Total investment income
  91
  117
  106
  230
  Expenses:
  Compensation expense
  380
  387
  779
  898
  Professional fees
  214
  406
  571
  805
  Director fees and expenses
  117
  118
  202
  196
  General and administrative expenses
  108
  84
  219
  174
  Mailing, printing and other expenses
  55
  46
  95
  67
  Taxes
  11
  11
  21
  13
  Interest expense
  2
  1
  6
  4
  Total expenses
  887
  1,053
  1,893
  2,157
  Net investment loss
  (797
  )
  (936
  )
  (1,787
  )
  (1,927
  )
  Net realized (loss) gain:
  Affiliate investments
  (2,790
  )
  —
  (2,790
  )
  —
  Temporary cash investments
  23
  (1
  )
  33
  1
  Net realized (loss) gain
  (2,767
  )
  (1
  )
  (2,757
  )
  1
  Net unrealized appreciation of portfolio securities:
  End of period
  27,600
  17,812
  27,600
  17,812
  Beginning of period
  22,811
  15,862
  19,310
  14,498
  Net change in net unrealized appreciation of portfolio securities
  4,789
  1,950
  8,290
  3,314
  Net unrealized depreciation of portfolio securities - related party:
  End of period
  (1,719
  )
  (1,575
  )
  (1,719
  )
  (1,575
  )
  Beginning of period
  (1,795
  )
  (1,355
  )
  (2,251
  )
  (1,036
  )
  Net change in net unrealized depreciation of portfolio securities - related party
  76
  (220
  )
  532
  (539
  )
  Net increase in net assets resulting from operations
  $
  1,301
  $
  793
  $
  4,278
  $
  849
  Net increase in net assets resulting from operations per share:
  Basic and diluted
  $
  0.10
  $
  0.06
  $
  0.32
  $
  0.06
  Weighted average shares outstanding:
  Basic and diluted
  13,518
  13,518
  13,518
  13,518
  The accompanying notes are an integral
  part of these financial statements.
  4
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  CONDENSED STATEMENTS OF CHANGES IN
  NET ASSETS
  (Unaudited)
  Common Stock
  (in thousands)
  Number of Shares
  Par Value
  Capital in Excess of Par Value
  Undistributed Net Investment Losses
  Undistributed Net Capital (Losses) Gains
  Unrealized Appreciation of Portfolio Securities, net
  Unrealized Depreciation of Portfolio Securities - Related Party
  Total Net Assets
  Balances at January 1, 2018
  13,518
  13
  55,304
  (25,772
  )
  —
  14,498
  (1,036
  )
  43,007
  Share-based incentive compensation
  —
  —
  197
  —
  —
  —
  —
  197
  Net (decrease) increase in net assets resulting from operations
  —
  —
  —
  (991
  )
  2
  1,364
  (319
  )
  56
  Balances at March 31, 2018
  13,518
  $
  13
  $
  55,501
  $
  (26,763
  )
  $
  2
  $
  15,862
  $
  (1,355
  )
  $
  43,260
  Share-based incentive compensation
  —
  —
  —
  —
  —
  —
  —
  —
  Net increase (decrease) in net assets resulting from operations
  —
  —
  79
  (936
  )
  (1
  )
  1,950
  (220
  )
  872
  `
  Balances at June 30, 2018
  13,518
  $
  13
  $
  55,580
  $
  (27,699
  )
  $
  1
  $
  17,812
  $
  (1,575
  )
  $
  44,132
  Balances at January 1, 2019
  13,518
  $
  13
  $
  55,741
  $
  (29,327
  )
  $
  9
  $
  19,310
  $
  (2,251
  )
  $
  43,495
  Share-based incentive compensation
  —
  —
  80
  —
  —
  —
  —
  80
  Net decrease (increase) in net assets resulting from operations
  —
  —
  —
  (990
  )
  10
  3,501
  456
  2,977
  `
  Balances at March 31, 2019
  13,518
  $
  13
  $
  55,821
  $
  (30,317
  )
  $
  19
  $
  22,811
  $
  (1,795
  )
  $
  46,552
  Share-based incentive compensation
  —
  —
  80
  —
  —
  —
  —
  80
  Net decrease (increase) in net assets resulting from operations
  —
  —
  —
  (797
  )
  (2,767
  )
  4,789
  76
  1,301
  `
  Balances at June 30, 2019
  13,518
  $
  13
  $
  55,901
  $
  (31,114
  )
  $
  (2,748
  )
  $
  27,600
  $
  (1,719
  )
  $
  47,933
  The accompanying notes are an integral
  part of these financial statements
  5
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  CONDENSED STATEMENTS OF CASH FLOWS
  (Unaudited)
  Six Months Ended June 30,
  (in thousands)
  2019
  2018
  Reconciliation of increase in net assets resulting from operations to net cash
  (used in) provided by operating activities:
  Net increase in net assets resulting from operations
  $
  4,278
  $
  849
  Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:
  Net realized loss (gain)
  2,757
  (1
  )
  Net change in unrealized appreciation of portfolio securities
  (8,290
  )
  (3,314
  )
  Net change in unrealized depreciation of portfolio securities - related party
  (532
  )
  539
  Share-based incentive compensation
  160
  276
  Dissolution of portfolio securities
  211
  Changes in operating assets and liabilities:
  Purchases of temporary cash investments, net
  24
  6,002
  Accounts receivable from affiliates
  —
  25
  Accrued interest and dividend receivable
  (80
  )
  (218
  )
  Other assets
  (137
  )
  85
  Accounts payable and accrued liabilities
  (172
  )
  217
  Accounts payable to related parties
  (246
  )
  35
  Net cash (used in) provided by operating activities
  (2,027
  )
  4,495
  Cash flows from financing activities:
  Borrowings under margin account
  53,967
  30,990
  Repayments under margin account
  (53,958
  )
  (36,991
  )
  Net cash provided by (used in) financing activities
  9
  (6,001
  )
  Net decrease in cash and cash equivalents
  (2,019
  )
  (1,506
  )
  Cash and cash equivalents and restricted cash at beginning of period
  7,695
  10,975
  Cash and cash equivalents and restricted cash at end of period
  $
  5,677
  $
  9,469
  Non-cash operating and financing activities:
  Accrued interest or dividends exchanged for portfolio securities - related party
  $
  159
  $
  149
  Supplemental disclosure of cash flow information:
  Interest paid
  $
  —
  $
  4
  Income taxes paid
  $
  10
  $
  13
  The accompanying notes are an integral
  part of these financial statements.
  6
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  SUPPLEMENTAL INFORMATION—SELECTED
  PER SHARE DATA AND RATIOS
  (Unaudited)
  Six Months Ended June 30,
  2019
  2018
  Investment income
  $
  0.01
  $
  0.02
  Expenses
  0.14
  0.16
  Net investment loss
  (0.13
  )
  (0.14
  )
  Net realized loss
  (0.20
  )
  —
  Net change in unrealized appreciation
  0.61
  0.24
  Net change in unrealized depreciation - related party
  0.04
  (0.04
  )
  Net increase in net assets
  0.32
  0.06
  Capital transactions:
  Share-based incentive compensation
  0.01
  0.02
  Dilutive effect of shares issued
  —
  —
  Increase in net assets resulting from capital transactions
  0.01
  0.02
  Net increase in net assets
  0.33
  0.08
  Net assets at beginning of period
  3.22
  3.18
  Net assets at end of period, basic and diluted
  $
  3.55
  $
  3.26
  Weighted average number of shares outstanding during period,
  in thousands
  13,518
  13,518
  Market price per share:
  Beginning of period
  $
  1.96
  $
  2.40
  End of period
  $
  1.64
  $
  2.36
  Selected information and ratios:
  Ratio of expenses to average net assets
  4.14
  %
  4.95
  %
  Ratio of net investment loss to average net assets
  (3.91
  %)
  (4.42
  %)
  Ratio of net increase in net assets resulting from operations to average net assets
  9.36
  %
  1.95
  %
  Total return on market price
  (1)
  (16.33
  %)
  (1.67
  %)
  (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.
  7
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  SCHEDULE OF INVESTMENTS
  JUNE 30, 2019
  (Unaudited)
  (in thousands, except share data)
  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
  $
  10,500
  Total Control Investments: Majority-owned (represents 15.4% of total investments at fair value)
  $
  7,050
  $
  10,500
  Affiliate Investments
  (4)
  :
  PalletOne, Inc.
  Bartow, FL
  Shipping products and services
  October 2001
  350,000 shares of common stock (18.7%)
  $
  350
  $
  24,500
  Total Affiliate Investments (represents 34.1% of total investments at fair value)
  $
  350
  $
  24,500
  Non-Affiliate Investments - Related Party (less than 5% owned):
  MVC Capital, Inc.
  Purchase, NY
  Financial services
  May 2014
  544,813 shares of common stock (1.7%)
  $
  6,737
  $
  5,018
  Total Non-Affiliate Investments - Related Party (represents 7.4% of total investments at fair value)
  $
  6,737
  5,018
  Non-Affiliate Investments (less than 5% owned):
  5
  TH
  Element Tracking, LLC
  Boston, MA
  Business products and services
  January 2015
  14% promissory note due 5/18
  (2)
  $
  977
  $
  977
  $
  977
  Total Non-Affiliate Investments (represents 1.4% of total investments at fair value)
  $
  977
  $
  977
  Total Investment in Portfolio Securities
  $
  15,114
  $
  40,995
  Temporary Cash Investments
  U.S. Treasury Bill
  Government
  June 2019
  UST 0% 7/19
  $
  26,990
  $
  26,990
  $
  26,990
  Total Temporary Cash Investments (represents 40.9% of total investments at fair value)
  $
  26,990
  $
  26,990
  Total Investments
  $
  42,104
  $
  67,985
  (1)
  See Note 3 to the financial statements, Valuation of Investments.
  (2)
  Non-income-producing.  See notes 5 and 9 to the financial statements.
  (3)
  Majority owned investments are generally defined under the 1940 Act as companies in which we own more than 50% of the voting securities of the company.
  (4)
  Affiliate investments are generally defined under the 1940 Act as companies in which we own at least 5% but not more than 25% voting securities of the company.
  The accompanying notes are an integral
  part of these financial statements.
  8
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  SCHEDULE OF INVESTMENTS – (Continued)
  JUNE 30, 2019
  (Unaudited)
  Except for our
  holding of shares of MVC Capital, Inc. ("MVC"), all of our portfolio securities are restricted from public sale without
  prior registration under the Securities Act of 1933 (hereafter, the "Securities Act") or other relevant 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.
  As a business development
  company ("BDC") regulated pursuant to the Investment Company Act of 1940 ("1940 Act"), 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 June 30, 2019, we held 87.8% of our assets
  at fair value in securities of portfolio companies that constituted qualifying investments under the 1940 Act. As of June 30, 2019,
  except for our shares of MVC, all of our investments are in enterprises that are considered eligible portfolio companies under
  the 1940 Act. We provide significant managerial assistance to portfolio companies that comprise 85.4% of the total value of the
  investments in portfolio securities as of June 30, 2019.
  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 issuer. The value of one segment called "Shipping products and
  services" includes one portfolio company and was 51.1% of our net asset value, 32.7% of our total assets and 59.8% of our
  investments in portfolio company securities (at fair value) as of June 30, 2019. The value of one segment called "Energy"
  includes one portfolio company and was 21.9% of our net asset value, 14.0% of our total assets and 25.6% of our investments in
  portfolio company securities (at fair value) as of June 30, 2019. 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.
  Our investments
  in portfolio securities consist of the following types of securities as of June 30, 2019 (in thousands):
  Type of Securities
  Cost
  Fair Value
  Fair Value as Percentage of
  Net Assets
  Common stock
  $
  7,087
  $
  29,518
  61.6
  %
  Limited liability company investments
  7,050
  10,500
  21.9
  %
  Secured and subordinated debt
  977
  977
  2.0
  %
  Total
  $
  15,114
  $
  40,995
  85.5
  %
  The following is
  a summary by industry of the Fund's investments in portfolio securities as of June 30, 2019 (in thousands):
  Industry
  Fair Value
  Fair Value as Percentage of
  Net Assets
  Shipping products and services
  24,500
  51.1
  %
  Energy
  10,500
  21.9
  %
  Financial services
  5,018
  10.5
  %
  Business products and services
  977
  2.0
  %
  Total
  $
  40,995
  85.5
  %
  The accompanying notes are an integral
  part of these financial statements.
  9
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  SCHEDULE OF INVESTMENTS
  DECEMBER 31, 2018
  (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
  $
  9,000
  Equus Media Development Company, LLC
  Houston, TX
  Media
  January 2007
  Member interest (100%)
  3,000
  210
  Total Control Investments: Majority-owned (represents 14.9% of total investments at fair value)
  $
  10,050
  $
  9,210
  Affiliate Investments
  (4)
  :
  PalletOne, Inc.
  Bartow, FL
  Shipping products and services
  October 2001
  350,000 shares of common stock (18.7%)
  $
  350
  $
  20,500
  Total Affiliate Investments (represents 33.1% of total investments at fair value)
  $
  350
  $
  20,500
  Non-Affiliate Investments - Related Party (less than 5% owned):
  MVC Capital, Inc.
  Purchase, NY
  Financial services
  May 2014
  527,138 shares of common stock (1.7%)
  $
  6,579
  $
  4,328
  Total Non-Affiliate Investments - Related Party (represents 7.0% of total investments at fair value)
  $
  6,579
  $
  4,328
  Non-Affiliate Investments (less than 5% owned):
  5
  TH
  Element Tracking, LLC
  Boston, MA
  Business products and services
  January 2015
  14% promissory note due 5/18
  (2)
  $
  977
  $
  977
  $
  977
  Total Non-Affiliate Investments (represents 1.5% of total investments at fair value)
  $
  977
  $
  977
  Total Investment in Portfolio Securities
  $
  17,956
  $
  35,015
  Temporary Cash Investments
  U.S. Treasury Bill
  Government
  December 2018
  UST 0% 1/19
  $
  26,981
  $
  26,981
  $
  26,981
  Total Temporary Cash Investments (represents 43.5% of total investments at fair value)
  $
  26,981
  $
  26,981
  Total Investments
  $
  44,937
  $
  61,996
  (1)
  See Note 3 to the financial statements, Valuation of Investments.
  (2)
  Non-income producing.
  (3)
  Majority owned investments are generally defined under the 1940 Act as companies in which we own more than 50% of the voting securities of the company.
  (4)
  Affiliate investments are generally defined under the 1940 Act as companies in which we own at least 5% but not more than 25% voting securities of the company.
  The accompanying notes are an integral
  part of these financial statements.
  10
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  SCHEDULE OF INVESTMENTS – (Continued)
  DECEMBER 31, 2018
  (in thousands, except share data)
  Except for our
  holding of shares of MVC, substantially all of our portfolio securities are restricted from public sale without prior registration
  under the Securities Act or other relevant 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.
  As a BDC, 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, 2018, we had
  invested 87.5% of our assets in securities of portfolio companies that constituted qualifying investments under the 1940 Act. As
  of December 31, 2018, except for our shares of MVC, all of our investments are in enterprises that are considered eligible portfolio
  companies under the 1940 Act. We provide significant managerial assistance to portfolio companies that comprise 84.6% of the total
  value of the investments in portfolio securities as of December 31, 2018.
  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 issuer. The value of one segment called "Shipping products and
  services" includes one portfolio company and was 47.1% of our net asset value, 28.9% of our total assets and 58.5% of our
  investments in portfolio company securities (at fair value) as of December 31, 2018. The value of one segment called "Energy"
  includes one portfolio company and was 20.7% of our net asset value, 12.7% of our total assets and 25.7% of our investments in
  portfolio company securities (at fair value) as of December 31, 2018. 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.
  Our investments
  in portfolio securities consist of the following types of securities as of December 31, 2018 (in thousands):
  Type of Securities
  Cost
  Fair Value
  Fair Value as Percentage of
  Net Assets
  Common stock
  $
  6,929
  $
  24,828
  57.1
  %
  Limited liability company investments
  10,050
  9,210
  21.2
  %
  Secured and subordinated debt
  977
  977
  2.2
  %
  Total
  $
  17,956
  $
  35,015
  80.5
  %
  The following is
  a summary by industry of the Fund's investments in portfolio securities as of December 31, 2018 (in thousands):
  Industry
  Fair Value
  Fair Value as Percentage of
  Net Assets
  Shipping products and services
  20,500
  47.1
  %
  Energy
  9,000
  20.7
  %
  Financial services
  4,328
  9.9
  %
  Business products and services
  977
  2.2
  %
  Media
  210
  0.6
  %
  Total
  $
  35,015
  80.5
  %
  The accompanying notes are an integral
  part of these financial statements.
  11
  Table of Contents
  EQUUS TOTAL RETURN, INC.
  NOTES TO CONDENSED FINANCIAL STATEMENTS
  JUNE 30, 2019
  (Unaudited)
  (1)
  Description of Business and Basis of Presentation
  Description
  of Business
  —Equus Total Return, Inc. ("we," "us," "our," "Equus" 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 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.
  So long as we remain
  an investment company and not an operating company as contemplated in our
  Plan of Reorganization
  described in Note 6 below,
  we will attempt to maximize the return to our 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 may include 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 (or smaller public 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 prudent to continue to review alternatives to refine and further clarify the current strategies.
  We elected to be
  treated as a BDC under the 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 companies. 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 and the Securities Exchange Act of 1934, as amended ("Exchange
  Act"), 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 ("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 Exchange Act. Accordingly, they are unaudited and exclude some disclosures
  required for annual financial statements. We believe that we have 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 June 30, 2019 are not necessarily indicative of results that ultimately may be achieved for
  the remainder of 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 Annual Report on Form 10-K for the fiscal year ended December
  31, 2018, as filed with the Securities and Exchange Commission ("SEC").
  12
  Table of Contents
  (2)
  Liquidity and Financing Arrangements
  Liquidity
  —There
  are several factors that may materially affect our liquidity during the reasonably foreseeable future. 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 the extent we remain a BDC, to finance routine follow-on investments, if any, through the next twelve months.
  Cash and Cash
  Equivalents
  —As of June 30, 2019, we had cash and cash equivalents of $5.4 million. We had $41.0 million of our net assets
  of $47.9 million invested in portfolio securities.
  As of December
  31, 2018, we had cash and cash equivalents of $7.4 million. We had $35.0 million of our net assets of $43.5 million invested in
  portfolio securities
  We exclude "Restricted
  Cash and Temporary Cash Investments" used for purposes of complying with RIC requirements from cash equivalents.
  Restricted Cash
  and Temporary Cash Investments
  — As of June 30, 2019, we had $27.2 million of restricted cash and temporary cash investments,
  including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable
  to a RIC to maintain our pass-through tax treatment. Of this amount, $27.3 million was invested in U.S. Treasury bills and $0.3
  million represented a required 1% brokerage margin deposit. These securities were held by a securities brokerage firm and pledged
  along with other assets to secure repayment of the margin loan. The U.S. Treasury bills matured on July 5, 2019 and we subsequently
  repaid this margin loan, plus interest.
  As of December
  31, 2018, we had $27.3 million of restricted cash and of temporary cash investments, including primarily the proceeds of a quarter-end
  margin loan that we incurred to maintain the diversification requirements applicable to a RIC. Of this amount, $27.0 million was
  invested in U.S. Treasury bills and $0.3 million represented a required 1% brokerage margin deposit. These securities were held
  by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan. The U.S. Treasury bills
  were sold on January 2, 2019 and we subsequently repaid this margin loan, plus interest.
  Dividends
  —So
  long as we remain a BDC, we will pay out net investment income and/or realized net capital gains, if any, on an annual basis as
  required under the 1940 Act.
  Investment Commitments
  —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.
  As of June 30,
  2019, we had no outstanding commitments to our portfolio company investments.
  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. We cannot assure you that any 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. If we remain a BDC and do not become an operating company
  as described in Note 6 –
  Plan of Reorganization
  below, our failure to continue to qualify as a RIC could be materially
  adverse to us and our stockholders.
  As of June 30,
  2019, we borrowed $27.0 million to maintain our RIC status by utilizing a margin account with a securities brokerage firm. We collateralized
  such borrowings with restricted cash and temporary cash investments in U.S. Treasury bills of $27.3 million.
  As of December
  31, 2018, we borrowed $27.0 million to maintain our RIC status by utilizing a margin account with a securities brokerage firm.
  We collateralized such borrowings with restricted cash and temporary cash investments in U.S. Treasury bills of $27.3 million.
  13
  Table of Contents
  Certain Risks
  and Uncertainties
  —Market and economic volatility which has become endemic in the past few years has constrained the availability
  of debt financing for small and medium-sized companies such as Equus and its portfolio companies. Such debt financing generally
  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 six months of 2019, the price of our common stock remained well below
  our net asset value, thereby making it undesirable to issue additional shares of our common stock below net asset value. 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. We are also evaluating potential opportunities that could enable
  us to effect a change to our business and become an operating company as described in Note 6 –
  Plan of Reorganization
  below. We believe we have sufficient liquidity to meet our operating requirements for the remainder of 2019 and the first six months
  of 2020.
  (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.
  Valuation of
  Investments—
  For most of our investments, market quotations are not available. With respect to investments for which market
  quotations are not readily available or when such market quotations are deemed not to represent fair value, our Board has approved
  a multi-step valuation process each quarter, as described below:
  1.
  Each portfolio company or investment is reviewed by our investment
          professionals;
  2.
  With respect to investments with a fair value exceeding $2.5
          million that have been held for more than one year, we engage independent valuation firms to assist our investment professionals.
          These independent valuation firms conduct independent valuations and make their own independent assessments;
  3.
  Our Management produces a report that summarized each of
          our portfolio investments and recommends a fair value of each such investment as of the date of the report;
  4.
  The Audit Committee of our Board reviews and discusses the
          preliminary valuation of our portfolio investments as recommended by Management in their report and any reports or recommendations
          of the independent valuation firms, and then approves and recommends the fair values of our investments so determined to our Board
          for final approval; and
  5.
  The Board discusses valuations and determines the fair value of each portfolio investment in good faith based on the input of our Management, the respective independent valuation firm, as applicable, and the Audit Committee.
  During the first
  twelve months after an investment is made, we rely on the original investment amount 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).
  Investments are valued utilizing a yield analysis, enterprise value ("EV") analysis, net asset
  value analysis, liquidation analysis, discounted cash flow analysis, or a combination of methods, as appropriate. The yield analysis
  uses loan spreads and other relevant information implied by market data involving identical or comparable assets or liabilities.
  Under the EV analysis, the EV of a portfolio company is first determined and allocated over the portfolio company's securities
  in order of their preference relative to one another (i.e., "waterfall" allocation). To determine the EV, we typically
  use a market multiples approach that considers relevant and applicable market trading data of guideline public companies, transaction
  metrics from precedent M&A transactions and/or a discounted cash flow analysis. The net asset value analysis is used to derive
  a value of an underlying investment (such as real estate property) by dividing a relevant earnings stream by an appropriate capitalization
  rate. For this purpose, we consider capitalization rates for similar properties as may be obtained from guideline public companies
  and/or relevant
  14
  Table of Contents
  transactions. The liquidation analysis is intended to approximate the net recovery value of an investment
  based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company's
  assets. The discounted cash flow analysis uses valuation techniques to convert future cash flows or earnings to a range of fair
  values from which a single estimate may be derived utilizing an appropriate discount rate. The measurement is based on the net
  present value indicated by current market expectations about those future amounts.
  In applying these
  methodologies, additional factors that we consider in fair value pricing our investments may include, as we deem relevant: security
  covenants, call protection provisions, and information rights; the nature and realizable value of any collateral; the portfolio
  company's ability to make payments; the principal markets in which the portfolio company does business; publicly available
  financial ratios of peer companies; the principal market; and enterprise values, among other factors. 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 assuming a hypothetical current sale of the security to determine if a debt
  security has been impaired. The yield analysis considers changes in interest rates and changes in leverage levels of the portfolio
  company as compared to the market interest rates and leverage levels. Assuming the credit quality of the portfolio company remains
  stable, the Fund will use the value determined by the yield analysis as the fair value for that security if less than the cost
  of the investment.
  We 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.
  Fair Value Measurement—
  Fair
  value is 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 and sets out a fair value hierarchy. The fair value hierarchy gives the highest priority to
  quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level
  3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. The three levels
  of the fair value hierarchy are described below:
  Level 1—Unadjusted
  quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the
  measurement date.
  Level 2—Inputs
  other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair
  value is determined through the use of models or other valuation methodologies.
  Level 3—Inputs
  are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset
  or liability. The inputs into the determination of fair value are based upon the best information under the circumstances and may
  require significant management judgment or estimation.
  In certain cases,
  the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's
  level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
  Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers
  factors specific to the investment.
  Investments for
  which prices are not observable are generally private investments in the debt and equity securities of operating companies. A primary
  valuation method used to estimate the fair value of these Level 3 investments is the discounted cash flow method (although a liquidation
  analysis, option theoretical, or other methodology may be used when more appropriate). The discounted cash flow approach to determine
  fair value (or a range of fair values) involves applying an appropriate discount rate(s) to the estimated future cash flows using
  various relevant factors depending on investment type, including comparing the latest arm's length or market transactions
  involving the subject security to the selected benchmark credit spread, assumed growth rate (in cash flows), and capitalization
  rates/multiples (for determining terminal values of underlying portfolio companies). The valuation based on the inputs determined
  to be the most reasonable and probable is used as the fair value of the investment. In the case of our investment in Equus Energy,
  we also examine acreage values in comparable transactions and assess the impact upon the working interests held by Equus Energy.
  The determination of fair value using these methodologies may take into consideration a range of factors including, but not limited
  to, the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public
  15
  Table of Contents
  exchanges for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition
  of the investment and anticipated financing transactions after the valuation date.
  To assess the reasonableness
  of the discounted cash flow approach, the fair value of equity securities, including warrants, in portfolio companies may also
  consider the market approach—that is, through analyzing and applying to the underlying portfolio companies, market valuation
  multiples of publicly-traded firms engaged in businesses similar to those of the portfolio companies. The market approach to determining
  the fair value of a portfolio company's equity security (or securities) will typically involve: (1) applying to the portfolio
  company's trailing twelve months (or current year projected) EBITDA a low to high range of enterprise value to EBITDA multiples
  that are derived from an analysis of publicly-traded comparable companies, in order to arrive at a range of enterprise values for
  the portfolio company; (2) subtracting from the range of calculated enterprise values the outstanding balances of any debt or equity
  securities that would be senior in right of payment to the equity securities we hold; and (3) multiplying the range of equity values
  derived therefrom by our ownership share of such equity tranche in order to arrive at a range of fair values for our equity security
  (or securities). Application of these valuation methodologies involves a significant degree of judgment by Management.
  Due to the inherent
  uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value
  of the investments may differ significantly from the values that would have been used had a ready market existed for such investments
  and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject
  to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If we were required to liquidate
  a portfolio investment in a forced or liquidation sale, we might realize significantly less than the value at which such investment
  had previously been recorded. With respect to Level 3 investments, where sufficient market quotations are not readily available
  or for which no or an insufficient number of indicative prices from pricing services or brokers or dealers have been received,
  we undertake, on a quarterly basis, our valuation process as described above.
  We assess the levels
  of the investments at each measurement date, and transfers between levels are recognized on the subsequent measurement date closest
  in time to the actual date of the event or change in circumstances that caused the transfer. There were no transfers among Level
  1, 2 and 3 for the six months ended June 30, 2019 and the year ended December 31, 2018.
  As of June 30,
  2019, 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 June 30, 2019
  (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
  $
  10,500
  $
  —
  $
  —
  $
  10,500
  Affiliate investments
  24,500
  —
  —
  24,500
  Non-affiliate investments - related party
  5,018
  5,018
  —
  —
  Non-affiliate investments
  977
  —
  —
  977
  Total investments
  40,995
  5,018
  —
  35,977
  Temporary cash investments
  26,990
  26,990
  —
  —
  Total investments and temporary cash investments
  $
  67,985
  $
  32,008
  $
  —
  $
  35,977
  16
  Table of Contents
  As of December 31, 2018, 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, 2018
  (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
  $
  9,210
  $
  —
  $
  —
  $
  9,210
  Affiliate investments
  20,500
  —
  —
  20,500
  Non-affiliate investments - related party
  4,328
  4,328
  —
  —
  Non-affiliate investments
  977
  —
  —
  977
  Total investments
  35,015
  4,328
  —
  30,687
  Temporary cash investments
  26,981
  26,981
  —
  —
  Total investments and temporary cash investments
  $
  61,996
  $
  31,309
  $
  —
  $
  30,687
  The following table
  provides a reconciliation of fair value changes during the six months ended June 30, 2019 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, 2018
  $
  9,210
  $
  20,500
  $
  977
  $30,687
  Realized losses
  (2,790
  )
  —
  —
  (2,790)
  Change in unrealized appreciation
  4,291
  4,000
  —
  8,291
  Proceeds from sales/dispositions
  (211
  )
  —
  —
  (211)
  Transfers in (out) of Level 3
  —
  —
  —
  -
  Fair value as of June 30, 2019
  $
  10,500
  $
  24,500
  $
  977
  $35,977
  The following table
  provides a reconciliation of fair value changes during the three months ended June 30, 2018 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, 2017
  $
  8,212
  $
  16,686
  $
  977
  $25,875
  Change in unrealized appreciation
  1,000
  2,314
  —
  3,314
  Fair value as of June 30, 2018
  $
  9,212
  $
  19,000
  $
  977
  $29,189
  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.
  17
  Table of Contents
  The following table
  summarizes the significant non-observable inputs in the fair value measurements of our Level 3 investments by category of investment
  and valuation technique as of June 30, 2019:
  Range
  (in thousands)
  Fair Value
  Valuation Techniques
  Unobservable Inputs
  Minimum
  Maximum
  Secured and subordinated debt
  $
  977
  Yield analysis
  Discount for lack of marketability
  0
  %
  0
  %
  Common stock
  24,500
  Income/
  Market approach
  EBITDA Multiple/Discount for lack of marketability/Control premium
  10
  %
  32.5
  %
  Limited liability company investments
  10,500
  Asset approach
  Discounted cash flow; Guideline transaction method
  Recovery rate
  Reserve
  adjustment factors Market approach
  75
  %
  100
  %
  $
  35,977
  Because of the
  inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market values, amounting
  to $36.0 million and $30.7 million as of June 30, 2019 and December 31, 2018, respectively, our fair value determinations may materially
  differ from the values that would have been used had a ready market existed for these securities. As of June 30, 2019 and December
  31, 2018, one of our portfolio investments, consisting of 544,813 and 527,138 common shares of MVC, respectively, was publicly
  listed on the NYSE.
  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 report those amounts to Lipper Analytical
  Services, Inc. Our net asset value appears in various publications, including
  Barron's
  and
  The Wall Street Journal
  .
  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 the Fund owns more than 25% of the voting securities or maintains greater than 50% of the
  board representation. 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.
  See also Note 4 for discussion of related party
  investment transactions.
  As of June 30,
  2019, we had no outstanding commitments to our portfolio company investments; however, 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. Follow-on investments may include capital infusions which are expenditures made directly
  to the portfolio company to ensure that operations are completed, thereby allowing the portfolio company to generate cash flows
  to service their debt.
  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 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. 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 will write off uncollectible interest upon the occurrence of a definitive event such as a sale,
  bankruptcy, or reorganization of the relevant portfolio interest.
  Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation
  —Realized
  gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial
  instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation
  previously recognized, and includes investments written-off during the
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  Table of Contents
  period net of recoveries and realized gains or losses from in-kind redemptions. Net change in
  unrealized appreciation or depreciation reflects the net change in the fair value of the portfolio company investments and financial
  instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial
  instruments to realized gains or losses.
  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 recorded 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. To the extent we remain BDC and a RIC, we will continue to pay out net investment
  income and/or realized capital gains, if any, on an annual basis as required under the 1940 Act.
  Share-Based
  Compensation
  —We account for our share-based compensation using the fair value method, as prescribed by ASC 718, Compensation—Stock
  Compensation. Accordingly, for restricted stock awards, we measure the grant date fair value based upon the market price of our
  common stock on the date of the grant and amortize the fair value of the awards as share-based compensation expense over the requisite
  service period, which is generally the vesting term and account for forfeitures as they occur.
  Earnings Per
  Share
  —Basic and diluted per share calculations are computed utilizing the weighted-average number of shares of common
  stock outstanding for the period. In accordance with ASC 260, Earnings Per Share, the unvested shares of restricted stock awarded
  pursuant to our equity compensation plans are participating securities and, therefore, are included in the basic earnings per share
  calculation. As a result, for all periods presented, there is no difference between diluted earnings per share and basic earnings
  per share amounts.
  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.
  Taxes
  —So
  long as we remain a BDC, we intend to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated
  investment company and, as such, will not be subject to federal income taxes on otherwise taxable income (including net realized
  capital gains) which is distributed to stockholders. Therefore, no provision for federal income taxes is recorded in the financial
  statements. We borrow money from time to time to maintain our tax status under the Internal Revenue Code as a RIC. See Note 1 for
  discussion of Taxable Subsidiaries and see Note 2 for further discussion of the Fund's RIC borrowings.
  All corporations
  organized 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 $0.02 million for the year ended December 31, 2018.
  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 have no provision for margin tax expense for the six months ended June 30, 2019, respectively, and
  we paid $3 thousand in state income tax for the year ended December 31, 2018.
  Accounting Standards
  Recently Adopted
  — In February 2016, the FASB issued ASU 2016-02,
  Leases,
  which requires lessees to recognize on
  the balance sheet a right of use asset, representing its right to use the underlying asset for the lease term, and a lease liability
  for all leases with terms greater than 12 months and the use of practical expedient for leases less than 12 months. The guidance
  also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising
  from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional
  practical expedients that entities may elect to apply. The new guidance is effective for annual periods beginning after December
  15, 2018, and interim periods therein. Early application was permitted. The adoption of ASU 2016-02 did not have an impact on our
  financial statements as we currently have no operating leases as our principal offices are under a month-to-month lease arrangement
  for annual periods beginning after December 15, 2018, and interim periods therein. Early application is permitted. There was no
  impact on the financial position or financial statement disclosures.
  Accounting Standards
  Not Yet Adopted
  —In June 2016, the FASB issued ASU 2016-13,
  Financial Instruments-Credit Losses (Topic 326)
  —
  Measurement
  of Credit Losses on Financial Instruments
  , which amends the financial instruments impairment guidance so that an entity is
  required to measure expected credit losses for
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  Table of Contents
  financial assets based on historical experience, current conditions and reasonable
  and supportable forecasts. As such, an entity will use forward-looking information to estimate credit losses. ASU 2016-13 also
  amends the guidance in FASB ASC Subtopic 325-40,Investments -Other, Beneficial Interests in Securitized Financial Assets, related
  to the subsequent measurement of accretable yield recognized as interest income over the life of a beneficial interest in securitized
  financial assets under the effective yield method. ASU 2016-13 effective for public business entities that meet the U.S. GAAP definition
  of an SEC filer, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early
  adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.
  There was no impact on the financial position or financial statement disclosures.
  On August 28, 2018,
  the FASB issued ASU 2018-13, which changes the fair value measurement disclosure requirements of ASC 820. The amendments remove
  certain disclosure requirements and modify certain others. The amendments remove the requirement to disclose (1) the amount of
  and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between
  levels, (3) the valuation processes for Level 3 fair value measurements and (4) the changes in unrealized gains and losses for
  the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. Also, (1)
  in lieu of a roll-forward for Level 3 fair value measurements, an entity is required to disclose transfers into and out of Level
  3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities, (2) for investments in certain entities
  that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee's assets and the
  date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced
  the timing publicly, and (3) the amendments clarify that the measurement uncertainty disclosure is to communicate information about
  the uncertainty in measurement as of the reporting date. Early adoption is permitted. We are currently evaluating the impact of
  ASU 2018-13 on our financial statements and will make any disclosure adjustments in year-end financial statements.
  (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 $40,000 paid quarterly in
  arrears, a fee of $2,000 for each meeting of the Board of Directors or committee thereof attended in person, a fee of $1,000 for
  participation in each telephonic meeting of the Board or committee thereof, and reimbursement of all out-of-pocket expenses relating
  to attendance at such meetings. The chair of each of our standing committees (audit, compensation, and nominating and governance)
  also receives an annual fee of $50,000, payable quarterly in arrears. 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. None of our interested directors receive annual fees for their service on the Board of Directors.
  We may also pay
  other one-time or recurring fees to members of our Board of Directors in special circumstances.
  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 $300 per hour for services.
  During each of the six months ended June 30, 2019 and June 30, 2018,
  we paid Kenneth I. Denos, P.C., a professional corporation owned by Kenneth I. Denos, a director of the Fund, $0.2 million for
  services provided to the Fund.
  20
  Table of Contents
  (5)
  Portfolio Securities
  During the six
  months ended June 30, 2019, we received dividends in the form of additional shares of $0.2 million relating to our shareholding
  in MVC.
  Also during the
  six months ended June 30, 2019, we dissolved Equus Media Development Company, LLC ("EMDC"), a wholly-owned subsidiary
  of the Fund and transferred EMDC's assets, consisting of approximately $210,000 in cash and various creative entertainment
  properties, to the Fund.
  During the six
  months ended June 30, 2019, we recorded a net change in unrealized appreciation of $8.8 million, to a net unrealized appreciation
  of $25.9 million. Such change in unrealized appreciation resulted primarily from the following changes:
  (i)
  Increase in the fair value of our shareholding in MVC of $0.7 million due to an increase in the share price of MVC and the receipt of dividend payments in the form of additional shares of MVC during the period;
  (ii)
  Increase in fair value of our shareholding in PalletOne, Inc. of $4.0 million due to improved operating performance and overall improvement in comparable industry sectors;
  (iii)
  Transfer of unrealized depreciation to realized loss of our holdings in EMDC of $2.8 million in connection with the dissolution of EMDC and the transfer of its assets to the Fund; and
  (iv)
  Increase in the fair value of our holdings in Equus Energy, LLC of $1.5 million, principally due to increases in mineral acreage prices proximate to the company's leasehold interests and an increase in the short- and long-term prices for crude oil during the first half of 2019.
  During the six
  months ended June 30, 2018, we received dividends in the form of additional shares of $0.1 million relating to our shareholding
  in MVC.
  During the six
  months ended June 30, 2018, we recorded a net change in unrealized appreciation of $2.9 million, to a net unrealized appreciation
  of $16.2 million. Such change in unrealized appreciation resulted primarily from the following changes:
  (i)
  Decrease in the fair value of our shareholding in MVC of
          $0.4 million due to a decrease in the share price of MVC, offset by the receipt of dividend payments in the form of additional
          shares of MVC during the period;
  (ii)
  Increase in fair value of our shareholding in PalletOne, Inc.
          of $2.3 million due to increases in revenue and EBITDA, as well as promising acquisition and growth prospects; and
  (iii)
  Increase in the fair value of our holdings in Equus Energy,
          LLC of $1.0 million, principally due to increases in mineral acreage prices proximate to the company's leasehold interests
          and a moderate increase in the short- and long-term prices for crude oil and natural gas.
  21
  Table of Contents
  (6)
  Plan of Reorganization
  Plan of Reorganization
  and Share Exchange with MVC Capital
  —On May 14, 2014, we announced that the Fund intended to effect a reorganization
  pursuant to Section 2(a)(33) of the 1940 Act (hereinafter, the "Plan of Reorganization"). As a first step to consummating
  the Plan of Reorganization, we sold to MVC Capital, Inc. ("MVC") 2,112,000 newly-issued shares of the Fund's
  common stock in exchange for 395,839 shares of MVC (such transaction is hereinafter referred to as the "Share Exchange").
  MVC is a business development company traded on the NYSE that provides long-term debt and equity investment capital to fund growth,
  acquisitions and recapitalizations of companies in a variety of industries. The Share Exchange was calculated based on the Fund's
  and MVC's respective net asset value per share. At the time of the Share Exchange, the number of MVC shares received by Equus
  represented approximately 1.73% of MVC's total outstanding shares of common stock.
  Pursuant to the
  terms of a Share Exchange Agreement, dated May 12, 2014, entered into by Equus and MVC which memorialized the Share Exchange, we
  intend to finalize the Plan of Reorganization by pursuing a merger or consolidation with MVC or an operating company, which operating
  company may be a subsidiary or portfolio company of MVC (such transaction is hereinafter referred to as a "Consolidation").
  Absent Equus merging or consolidating with/into MVC or a subsidiary thereof, our current intention is for Equus to (i) terminate
  its election to be classified as a BDC under the 1940 Act, and (ii) be restructured as a publicly-traded operating company focused
  on the energy, natural resources, technology, and/or financial services sector. While we are presently evaluating various opportunities
  that could enable us to accomplish a Consolidation, we cannot assure you that we will be able to do so within any particular time
  period or at all. Moreover, we cannot assure you that the terms of any such transaction that would embody a Consolidation would
  be acceptable to us.
  Authorization
  to Withdraw BDC Election
  —On January 21, 2019, holders of a majority of the outstanding common stock of the Fund approved
  our cessation as a BDC under the 1940 Act and authorized our Board to cause the Fund's withdrawal of its election to be classified
  as a BDC, effective as of a date designated by the Board and our Chief Executive Officer. Although this authorization, which was
  given as a consequence of our Plan of Reorganization, expired on July 31, 2019, we expect to receive an additional authorization
  from our stockholders in the future. Notwithstanding any such authorization to withdraw our BDC election, we will not submit any
  such withdrawal unless and until Equus has entered into a definitive agreement to effect a "Consolidation". Further,
  even if we are again authorized to withdraw our election as a BDC, we will require a subsequent affirmative vote from holders of
  a majority of our outstanding voting shares to enter into any such definitive agreement or change the nature of our business.
  (7)
  2016 Equity Incentive Plan
  Share-Based
  Incentive Compensation
  —On June 13, 2016, our shareholders approved the adoption of our 2016 Equity Incentive Plan ("Incentive
  Plan"). On January 10, 2017, the SEC issued an order approving the Incentive Plan and certain awards intended to be made
  thereunder. The Incentive Plan is intended to promote the interests of the Fund by encouraging officers, employees, and directors
  of the Fund and its affiliates to acquire or increase their equity interest in the Fund and to provide a means whereby they may
  develop a proprietary interest in the development and financial success of the Fund, to encourage them to remain with and devote
  their best efforts to the business of the Fund, thereby advancing the interests of the Fund and its stockholders. The Incentive
  Plan is also intended to enhance the ability of the Fund and its affiliates to attract and retain the services of individuals who
  are essential for the growth and profitability of the Fund. The Incentive Plan permits the award of restricted stock as well as
  common stock purchase options. The maximum number of shares of common stock that are subject to awards granted under the Incentive
  Plan is 2,434,728 shares. The term of the Incentive Plan will expire on June 13, 2026. On March 17, 2017, we granted awards of
  restricted stock under the Incentive Plan to certain of our directors and executive officers in the aggregate amount of 844,500
  shares. The awards are each subject to a vesting requirement over a 3-year period unless the recipient thereof is terminated or
  removed from their position as a director or executive officer without "cause", or as a result of constructive termination,
  as such terms are defined in the respective award agreements entered into by each of the recipients and the Fund. As of March 31,
  2019, 280,000 shares of restricted stock which were granted pursuant to the Incentive Plan, remained unvested. We account for share-based
  compensation using the fair value method, as prescribed by ASC 718. Accordingly, for restricted stock awards, we measure the grant
  date fair value based upon the market price of our common stock on the date of the grant and amortize the fair value of the awards
  as share-based compensation expense over the requisite service period, which is generally the vesting term. For the six months
  ended June 30, 2019 and 2018, we recorded compensation expense of $0.2 million and $0.3 million, respectively, in connection with
  these awards.
  22
  Table of Contents
  (8)
  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, which presently comprise 141 producing and non-producing oil and gas
  wells. The working interests include associated development rights of approximately 21,520 acres situated on 11 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 Chevron USA, Inc., which has operating responsibility for all of Equus Energy's
  40 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, is working with Chevron in a recompletion program of existing Conger Field wells to the Wolfcamp formation,
  a zone containing oil as well as gas and natural gas liquids. 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 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 located in the area known as the "Eagle Ford
  Shale" play.
  Revenue and
  Income
  —During the three months ended June 30, 2019, Equus Energy's revenue, operating revenue less direct operating
  expenses, and net loss were $0.2 million, $0.02 million, and ($0.08) million, respectively, as compared to revenue, operating revenue
  less direct operating expenses, and net loss which $0.3 million, $0.05 million, and ($0.1) million, respectively, for the three
  months ended June 30, 2018.
  Capital Expenditures
  —During
  the three months ended June 30, 2019 and June 30, 2018, Equus Energy's investment, respectively, in capital expenditures
  for small repairs and improvements was not significant. The operators of the various working interest communicated their intent
  to wait until 2019, commensurate with an anticipated gradual rise in the price of crude oil, to commence new drilling and recompletion
  projects.
  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
  balance sheets. Our investment in Equus Energy is valued in accordance with our normal valuation procedures and is based in part
  on using a discounted cash flow analysis based on a reserve report prepared for Equus Energy by Lee Keeling & Associates, Inc.,
  an independent petroleum engineering firm, the transactions and values of comparable companies in this sector, and the estimated
  value of leasehold mineral interests associated with the acreage held by Equus Energy. A valuation of Equus Energy was performed
  by a third-party valuation firm, who recommended a value range of Equus Energy consistent with the fair value determined by our
  Management (See
  Schedule of Investments
  )
  .
  23
  Table of Contents
  Below is summarized
  consolidated financial information for Equus Energy as of June 30, 2019 and December 31, 2018 and for the six months June 30, 2019
  and 2018, respectively, (in thousands):
  EQUUS ENERGY, LLC
  Unaudited Condensed Consolidated Balance
  Sheets
  June 30,
  December 31,
  2019
  2018
  Assets
  Current assets:
  Cash and cash equivalents
  $
  832
  $
  966
  Accounts receivable
  112
  127
  Other current assets
  34
  34
  Total current assets
  978
  1,127
  Oil and gas properties
  8,008
  8,008
  Less: accumulated depletion, depreciation and amortization
  (7,854
  )
  (7,772
  )
  Net oil and gas properties
  154
  236
  Total assets
  $1,132
  $1,363
  Liabilities and member's equity
  Current liabilities:
  Accounts payable and other
  $
  170
  $
  131
  Due to affiliate
  561
  561
  Total current liabilities
  731
  692
  Asset retirement obligations
  198
  195
  Total liabilities
  929
  887
  Total member's equity
  203
  476
  Total liabilities and member's equity
  $1,131
  $1,363
  1
  Revenue and direct
  operating expenses for the various oil and gas assets included in the unaudited condensed consolidated statements of operations
  below 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, depletion, depreciation 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 operations 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 operations 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.
  24
  Table of Contents
  EQUUS ENERGY, LLC
  Unaudited Condensed Consolidated Statements
  of Operations
  Three Months Ended June
      30,
  Six
  Months Ended June 30,
  2019
  2018
  2019
  2018
  Operating revenue
  $
  217
  $
  282
  $
  361
  $
  577
  Operating expenses
  Direct operating expenses
  198
  231
  393
  394
  General and administrative
  73
  59
  156
  153
  Depletion, depreciation, amortization and accretion
  31
  104
  85
  186
  Total operating expenses
  302
  394
  634
  733
  Operating loss before income tax expense
  (85
  )
  (112
  )
  (273
  )
  (156
  )
  Income tax benefit (expense)
  —
  —
  —
  —
  Net loss
  $
  (85
  )
  $
  (112
  )
  $
  (273
  )
  $
  (156
  )
  EQUUS ENERGY, LLC
  Unaudited Condensed Consolidated Statements
  of Cash Flows
  Six Months Ended June 30,
  2019
  2018
  Cash flows from operating activities:
  Net loss
  (273
  )
  $
  (156
  )
  Adjustments to reconcile net loss to
  net cash used in operating activities:
  Depletion, depreciation, amortization and accretion
  85
  186
  Changes in operating assets and liabilites:
  Accounts receivable
  15
  (32
  )
  Prepaid expenses and other current assets
  —
  —
  Accounts payable and other
  39
  8
  Due to affiliate
  —
  (25
  )
  Net cash used in operating activities
  (134
  )
  (19
  )
  Cash flows from investing activities:
  Investment in oil & gas properties
  —
  (63
  )
  Net cash used in investing activities
  —
  (63
  )
  Net decrease in cash
  (134
  )
  (82
  )
  Cash and cash equivalents at beginning of period
  966
  307
  Cash and cash equivalents at end of period
  $
  832
  $
  225
  25
  Table of Contents
  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 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, depreciation, amortization
  and accretion expense for the Company's oil and gas properties totaled $0.03 million and $0.1 million for the three months
  ended June 30, 2019 and 2018, respectively and $0.1 million and $0.2 million for the six months ended June 30, 2019 and June 30,
  2018, respectively .
  Capitalized oil
  and gas property costs are limited to an amount (the ceiling limitation) equal to the sum of the following:
  (a)
  As of June 30, 2019, 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 its oil and gas properties during the three months
  ended June 30, 2019 and 2018, respectively.
  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 impairment
  or reduction in value. If a reduction in value has occurred, costs being amortized are increased accordingly.
  Revenue Recognition
  —Revenue
  recognized for oil and natural gas sales under the sales method of accounting. Under this method, revenue is 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 leasehold interest. These differences result from production imbalances, which are not significant, and are reflected
  as adjustments to proven reserves and future cash flows in the unaudited consolidated financial information included herein.
  Depreciation,
  Depletion and Amortization
  —The Company employs the "Units of Production" method in calculating depletion
  of its proved oil and gas properties, wherein capitalized costs, as adjusted for future development costs and asset retirement
  obligations, are amortized over the total estimated proved reserves.
  Income Taxes
  —A
  limited liability company is not subject to the payment of federal income taxes as components of its income and expenses flow through
  directly to the members. However, the Company is subject to certain state income taxes. 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. Taxable Subsidiaries
  may generate income tax expense because of the Taxable Subsidiaries' ownership of the portfolio companies. We reflect any
  such income tax expense on our Statements of Operations.  As of June 30, 2019 and 2018, the Company had no federal income
  tax expense.
  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.
  (9)
  Subsequent Events
  Management performed
  an evaluation of the Fund's activity through the date the financial statements were issued, noting the following subsequent
  events:
  On July 5, 2019,
  we sold $27.0 million of U.S. Treasury Bills we acquired on margin in June 2019 and used the proceeds to repay the margin loan.
  26
  Table of Contents
  Item 2. Management's Discussion and Analysis of
  Financial Condition and Results of Operations
  Equus Total Return,
  Inc. ("we," "us," "our," "Equus," and the "Fund"), a Delaware corporation,
  was formed on August 16, 1991. Our shares trade on the New York Stock Exchange under the symbol 'EQS'. Our investment
  strategy seeks to provide the highest total return, consisting of capital appreciation and current income.
  The information
  contained in this section should be read in conjunction with our financial statements and notes thereto appearing elsewhere in
  this Quarterly Report and in conjunction with the financial statements and notes thereto in the Fund's Form 10-K for the
  year ended December 31, 2018, as filed with the SEC. In addition, some of the statements in this report constitute forward-looking
  statements. The matters discussed in this Quarterly Report, as well as in future oral and written statements by management of Equus,
  that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties
  which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements.
  Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements
  by terminology such as "may," "will," "should," "expects," "plans,"
  "anticipates," "could," "intends," "target," "projects," "believes,"
  "estimates," "predicts," "potential" or "continue" or the negative of these terms
  or other similar words. Important assumptions include our ability to originate new investments, achieve certain margins and levels
  of profitability, and the availability of additional capital. In light of these and other uncertainties, the inclusion of a forward-looking
  statement in this Quarterly Report should not be regarded as a representation by us that our plans or objectives will be achieved.
  The forward-looking statements contained in this Quarterly Report include statements as to:
  •
  our future operating results;
  •
  our business prospects and the prospects of our existing and prospective portfolio companies;
  •
  the return or impact of current and future investments;
  •
  our contractual arrangements and other relationships with third parties;
  •
  the dependence of our future success on the general economy and its impact on the industries in which we invest;
  •
  the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives;
  •
  our expected financings and investments;
  •
  our regulatory structure and tax treatment;
  •
  our ability to qualify and operate as a BDC and a RIC, including the impact of changes in laws or regulations governing our operations, or the operations of our portfolio companies;
  •
  the adequacy of our cash resources and working capital;
  •
  the timing of cash flows, if any, from the operations of our portfolio companies;
  •
  the impact of fluctuations in interest rates on our business;
  •
  the valuation of our investments in portfolio companies, particularly those having no liquid trading market;
  •
  our ability to recover unrealized losses; and
  •
  market conditions and our ability to access additional capital, if deemed necessary.
  There are a number
  of important risks and uncertainties that could cause our actual results to differ materially from those indicated by such forward-looking
  statements. For a discussion of factors that could cause our actual results to differ from forward-looking statements contained
  in this Quarterly Report, please see the discussion in Part II, "Item 1A. Risk Factors", and in Part I, "Item
  1A. Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. You should not place undue
  reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report relate only to events
  as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect
  events or circumstances occurring after the date this Quarterly Report is filed with the SEC.
  27
  Table of Contents
  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 (and smaller public 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 BDC under the 1940 Act. We currently qualify as a 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.
  Plan of Reorganization
  Plan of Reorganization
  and Share Exchange with MVC Capital
  —On May 14, 2014, we announced that the Fund intended to effect a reorganization
  pursuant to Section 2(a)(33) of the 1940 Act (hereinafter, the "Plan of Reorganization"). As a first step to consummating
  the Plan of Reorganization, we sold to MVC Capital, Inc. ("MVC") 2,112,000 newly-issued shares of the Fund's
  common stock in exchange for 395,839 shares of MVC (such transaction is hereinafter referred to as the "Share Exchange").
  MVC is a business development company traded on the NYSE that provides long-term debt and equity investment capital to fund growth,
  acquisitions and recapitalizations of companies in a variety of industries. The Share Exchange was calculated based on the Fund's
  and MVC's respective net asset value per share. At the time of the Share Exchange, the number of MVC shares received by Equus
  represented approximately 1.73% of MVC's total outstanding shares of common stock.
  Pursuant to the
  terms of a Share Exchange Agreement, dated May 12, 2014, entered into by Equus and MVC which memorialized the Share Exchange, we
  intend to finalize the Plan of Reorganization by pursuing a merger or consolidation with MVC or an operating company, which operating
  company may be a subsidiary or portfolio company of MVC (such transaction is hereinafter referred to as a "Consolidation").
  Absent Equus merging or consolidating with/into MVC or a subsidiary thereof, our current intention is for Equus to (i) terminate
  its election to be classified as a BDC under the 1940 Act, and (ii) be restructured as a publicly-traded operating company focused
  on the energy, natural resources, technology, and/or financial services sector. While we are presently evaluating various opportunities
  that could enable us to accomplish a Consolidation, we cannot assure you that we will be able to do so within any particular time
  period or at all. Moreover, we cannot assure you that the terms of any such transaction that would embody a "Consolidation"
  would be acceptable to us.
  28
  Table of Contents
  Authorization
  to Withdraw BDC Election
  — On January 21, 2019, holders of a majority of the outstanding common stock of the Fund approved
  our cessation as a BDC under the 1940 Act and authorized our Board to cause the Fund's withdrawal of its election to be classified
  as a BDC, effective as of a date designated by the Board and our Chief Executive Officer. Although this authorization, which was
  given as a consequence of our Plan of Reorganization, expired on July 31, 2019, we expect to receive an additional authorization
  from our stockholders in the future. Notwithstanding any such authorization to withdraw our BDC election, we will not submit any
  such withdrawal unless and until Equus has entered into a definitive agreement to effect a "Consolidation". Further,
  even if we are again authorized to withdraw our election as a BDC, we will require a subsequent affirmative vote from holders of
  a majority of our outstanding voting shares to enter into any such definitive agreement or change the nature of our business.
  2016 Equity Incentive Plan
  On June 13, 2016,
  our shareholders approved the adoption of our 2016 Equity Incentive Plan ("Incentive Plan"). On January 10, 2017, the
  SEC issued an order approving the Incentive Plan and certain awards intended to be made thereunder. The Incentive Plan is intended
  to promote the interests of the Fund by encouraging officers, employees, and directors of the Fund and its affiliates to acquire
  or increase their equity interest in the Fund and to provide a means whereby they may develop a proprietary interest in the development
  and financial success of the Fund, to encourage them to remain with and devote their best efforts to the business of the Fund,
  thereby advancing the interests of the Fund and its stockholders. The Incentive Plan is also intended to enhance the ability of
  the Fund and its affiliates to attract and retain the services of individuals who are essential for the growth and profitability
  of the Fund. The Incentive Plan permits the award of restricted stock as well as common stock purchase options. The maximum number
  of shares of common stock that are subject to awards granted under the Incentive Plan is 2,434,728 shares. The term of the Incentive
  Plan will expire on June 13, 2026. On March 17, 2017, we granted awards of restricted stock under the Plan to certain of our directors
  and executive officers in the aggregate amount of 844,500 shares. The awards are each subject to a vesting requirement over a 3-year
  period unless the recipient thereof is terminated or removed from their position as a director or executive officer without "cause",
  or as a result of constructive termination, as such terms are defined in the respective award agreements entered into by each of
  the recipients and the Fund. For the three months ended March 31, 2019 and 2018, we recorded compensation expense of $0.08 million
  and $0.2 million, respectively, in connection with these awards.
  Critical Accounting Policies
  See the Fund's
  Critical Accounting Policies from the disclosure set forth in the Fund's Annual Report on Form 10-K for the year ended December
  31, 2018.
  Current Market Conditions
  The U.S. economy
  expanded at an annualized rate of 2.1% during the second quarter of 2019, following growth of 3.1% during the first quarter of
  2019 and an increase of 2.9% for all of 2018. The decrease in GDP during the second quarter of 2019 was principally due to decreased
  exports, higher inventories, lower fixed residential and nonresidential investment, and increased imports. Despite rising trade
  tensions, the Conference Board Economic Forecast projects overall GDP growth in 2019 to be 2.5%, decreasing to 2.0% for 2020. The
  U.S. unemployment rate is near a 50-year low, continuing to present a tight labor market for employers. Meanwhile, housing starts
  and building permits slowed during 2018 and have continued to trend downward during the first six months of 2019, which has contrasted
  with strong growth in existing home sales during the same period. Business investment has continued to be a strong contributor
  to GDP growth and is expected to remain largely stable during the remainder of 2019. (Sources:
  U.S. Dept. of Commerce Bureau
  of Economic Analysis, Bureau of Labor Statistics, Conference Board Leading Economic Index
  ).
  Merger and acquisition
  activity was strong in 2018, with $3.5 trillion in worldwide transactions consummated during the year. Although such activity slowed
  during the first quarter of 2019, it accelerated during the second quarter of 2019, resulting in approximately $2 trillion in global
  transactions announced during the six month period. In the United States, merger and acquisition activity was up 19% in the first
  six months of 2019 as compared to the six months ended June 30, 2018. Market conditions for business transactions during the first
  six months of 2019 have continued to steadily improve, continuing a multi-year trend, as larger corporations have had increased
  access to credit markets and are still holding significant amounts of cash and have focused on acquisitions as part of future growth
  plans. Private equity funds raised almost $46 billion during the first three months of 2019, but did so in an increasingly smaller
  number of vehicles, resulting in larger fund sizes overall. Total investments during the quarter were approximately $202 billion,
  an increase of 3.6% from the first quarter of 2018. Data for the second quarter of 2019 have not yet been released but larger amounts
  of capital have pushed median valuation multiples above 12x during the first six months of 2019, constraining investment yields
  (Sources:
  The New York Times, The Wall Street Journal, PitchBook
  ).
  29
  Table of Contents
  During the six
  months ended June 30, 2019, our net asset value increased from $3.22 per share to $3.55 per share, an increase of 10.2%. As of
  June 30, 2019, our common stock is trading at a 53.8% discount to our net asset value as compared to 39.1% as of December 31, 2018.
  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 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,
  to the extent we remain a BDC, 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 believe
  we have followed valuation techniques in a reasonably consistent manner; however, we are cognizant of current market conditions
  that might affect future valuations of portfolio securities. In view of our present status as a BDC and our anticipated transformation
  into an operating company, 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 $0.9 million for the three months ended June 30, 2019 and 2018, respectively, and $1.8 million and $1.9 million for the six
  months ended June 30, 2019 and June 30, 2018, respectively, due to a decline in professional fees for the periods.
  Investment income
  was $0.1 million for the three months ended June 30, 2019 and 2018, respectively and $0.1 million and $0.2 million for the six
  months ended June 30, 2019 and 2018. The decrease is due to the decline of interest-bearing investments. Total expense was $0.9
  million and $1.1 million for the three months ended June 30, 2019 and 201, respectively and $1.9 million and $2.2 million for the
  six months ended June 30, 2019. This decrease was mainly due to the decline in compensation expense and professional fees.
  30
  Table of Contents
  Realized
  Gains and Losses on Sales of Portfolio Securities
  During the six
  months ended June 30, 2019, we realized a loss of $2.8 million from the dissolution and liquidation of Equus Media Development
  Company LLC ("EMDC").
  During the six months ended June 30,
  2018, we realized a gain of $1.0 thousand from the sale of temporary cash investments.
  Changes in Unrealized Appreciation/Depreciation
  of Portfolio Securities
  During the six months ended June 30,
  2019, we recorded a net change in unrealized appreciation of $8.8 million, to a net unrealized appreciation of $25.9 million. Such
  change in unrealized appreciation resulted primarily from the following changes:
  (i)
  Increase in the fair value of our shareholding in MVC of $0.7 million due to an increase in the share price of MVC and the receipt of dividend payments in the form of additional shares of MVC during the period;
  (ii)
  Increase in fair value of our shareholding in PalletOne, Inc. of $4.0 million due to improved operating performance and overall improvement in comparable industry sectors;
  (iii)
  Transfer of unrealized depreciation to realized loss of our holdings in EMDC of $2.8 million in connection with the liquidation and dissolution of EMDC; and
  (iv)
  Increase in the fair value of our holdings in Equus Energy, LLC of $1.5 million, principally due to increases in mineral acreage prices proximate to the company's leasehold interests and an increase in the short- and long-term prices for crude oil during the first half of 2019.
  During the six
  months ended June 30, 2018, we recorded a net change in unrealized appreciation of $2.9 million, to a net unrealized appreciation
  of $16.2 million. Such change in unrealized appreciation resulted primarily from the following changes:
  (i)
  Decrease in the fair value of our shareholding in MVC of
          $0.4 million due to a decrease in the share price of MVC, offset by the receipt of dividend payments in the form of additional
          shares of MVC during the period;
  (ii)
  Increase in fair value of our shareholding in PalletOne, Inc.
          of $2.3 million due to increases in revenue and EBITDA, as well as promising acquisition and growth prospects; and
  (iii)
  Increase in the fair value of our holdings in Equus Energy,
          LLC of $1.0 million, principally due to increases in mineral acreage prices proximate to the company's leasehold interests
          and a moderate increase in the short- and long-term prices for crude oil and natural gas.
  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 Securities
  During the six
  months ended June 30, 2019, we received dividends in the form of additional shares of $0.2 million relating to our shareholding
  in MVC.
  During the six
  months ended June 30, 2018, we received dividends in the form of additional shares of $0.1 million relating to our shareholding
  in MVC.
  Also during the
  six months ended June 30, 2019, we dissolved EMDC, a wholly-owned subsidiary of the Fund and transferred EMDC's assets, consisting
  of approximately $211,000 in cash and various creative entertainment properties, to the Fund.
  31
  Table of Contents
  Subsequent Events
  We performed an
  evaluation of the Fund's activity through the date the financial statements were issued, noting the following subsequent
  events:
  On July 5, 2019,
  we sold $27.0 million of U.S. Treasury Bills we acquired on margin in June 2019 and used the proceeds to repay the margin loan.
  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, 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.
  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 could also consist 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.
  Item 4. Controls and
  Procedures
  We maintain disclosure
  controls and other procedures that are designed to ensure that information required to be disclosed by the Fund in the reports
  that we file or submit 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 our management, including our
  Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
  Our management,
  with the participation of our 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 June 30, 2019. Based on their evaluation, our 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 our internal control over financial reporting during the quarter ended June 30, 2019, that has materially
  affected, or is reasonably likely to materially affect, our internal control over financial reporting.
  32
  Table of Contents
  Part II. Other Information
  Item
  1. Legal Proceedings
  Shareholder
  Complaint
  —On November 16, 2016, Samuel Zalmanoff filed a lawsuit against the Fund and members of the Board of Directors
  in the Court of Chancery in the State of Delaware. The lawsuit was filed in connection with the Fund's 2016 Equity Incentive
  Plan ("Incentive Plan") which was adopted by the Board of Directors on April 15, 2016, approved by the Equus shareholders
  on June 13, 2016, and approved, with certain standard exceptions, by the Securities and Exchange Commission on January 10, 2017.
  Mr. Zalmanoff's complaint, which purports to be on behalf of all non-affiliate Equus shareholders entitled to vote for the
  Incentive Plan, purports to allege a breach by the Board of Directors of its fiduciary duties of disclosure in connection with
  the Incentive Plan, and seeks an order from the court: (i) enjoining implementation of the Incentive Plan, (ii) requiring the Fund
  to revise its disclosures relating to the Incentive Plan, and (iii) for an award of costs, attorneys' fees, and expenses.
  We believe that this lawsuit, and the allegations included therein, are without merit. On September 22, 2017, we filed a motion
  for summary judgment regarding this action, which was granted by the Chancery Court on November 13, 2018. Mr. Zalmanoff appealed
  the Chancery Court ruling to the Delaware Supreme Court. On May 16, 2019, the Delaware Supreme Court affirmed the Chancery Court
  decision and terminated the proceedings.
  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
  In connection with
  our efforts to convert Equus into an operating company in furtherance of our Plan of Reorganization, we may be subject to a number
  of risks associated with this process, the transactions that would embody a Consolidation of Equus with another company, as well
  as specific risks associated with the commercial enterprise with which Equus would seek to combine itself. We intend to identify,
  as will be reasonably possible, such risks and include the same in our subsequent filings and reports with the Commission.
  Readers should
  carefully consider these risks and all other information contained in our annual report on Form 10-K for the year ended December
  31, 2018, including the Fund's financial statements and the related notes thereto. Although there have been no changes to
  the risk factors facing the Fund since the filing of our Form 10-K, the risks and uncertainties described therein are not the only
  ones facing the Fund.
  Additional risks
  and uncertainties not presently known to us, or not presently deemed material by us, may also impair our operations and performance.
  33
  Table of Contents
  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(b) 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(c) to Registrant's Current Report on Form 8-K filed on June 30, 2014.]
  10.
  Material Contracts.
  (a)
  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.]
  (b)
  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.]
  (c)
  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.]
  (d)
  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.]
  (e)
  Share Exchange Agreement between the Fund and MVC Capital, Inc., dated May 14, 2014. [Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K, filed on May 15, 2014.]
  (f)
  2016 Equity Incentive Plan, adopted June 13, 2016 [Incorporated by reference to Exhibit 1 to Registrant's Definitive Proxy Statement filed on May 5, 2016.]
  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
  34
  Table of Contents
  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.
  Dated: August 14, 2019
  /s/
      John A. Hardy
  John A. Hardy
  Chief  Executive
          Officer
  35