EQS · Equus Total Return, Inc.

This filing discloses a material quarterly decline in Equus Total Return, Inc.'s net asset value (NAV), falling $10.0 million to $16.6 million as of December 31, 2025 — a 37% drop in NAV per share to $1.19 from $1.90. The decline was overwhelmingly driven by a $12.35 million reduction in the fair value of its investment in Morgan E&P, Inc., attributed explicitly to a lower forward oil price curve and elimination of reserves due to limited production — indicating fundamental deterioration in the underlying asset’s economic viability. This negative impact was only partially offset by a $1.6 million gain in the value of its CitroTech, Inc. position, which included both 591,039 shares of CITR common stock (post-conversion and partial sale) and a 5-year warrant for 312,500 shares exercisable at $3.00. The CITR valuation increase reflected a 37% rise in the stock’s trading price during the quarter, from $5.89 to $8.08. Notably, no income statement metrics (e.g., revenue, net income, EPS) were disclosed — consistent with Equus’s structure as a business development company reporting primarily on portfolio valuation rather than operating earnings. The magnitude and drivers of the NAV change — particularly the concentrated exposure to Morgan E&P and sensitivity to commodity price assumptions — represent a core risk factor for investors, as highlighted in the press release’s forward-looking statement caution regarding performance uncertainty and SEC filings.