<span item_type="fundamental" item_id="ecb506ceade9266c159816ac50c42136" counter_id="ST/US/EQS" env="prod"></span><span item_type="announcement" item_id="549791064525441409" env="prod"></span><p>EPS: As of FY2025 Q2, the actual value is USD -0.01.</p><p></p><h3>Segment Revenue</h3><ul><li><strong>Investment Income</strong>: $0.4 million for the three months ended June 30, 2025, and $0.3 million for the same period in 2024. For the six months ended June 30, 2025, investment income was $0.7 million compared to $0.6 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li></ul><h3>Operational Metrics</h3><ul><li><strong>Net Investment Loss</strong>: $0.6 million for the three months ended June 30, 2025, compared to $0.9 million for the same period in 2024. For the six months ended June 30, 2025, net investment loss was $1.7 million compared to $2.0 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Compensation Expense</strong>: $0.4 million for the three months ended June 30, 2025, compared to $0.5 million for the same period in 2024. For the six months ended June 30, 2025, compensation expense was $1.0 million compared to $0.9 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Professional Fees</strong>: $0.2 million for the three months ended June 30, 2025, compared to $0.4 million for the same period in 2024. For the six months ended June 30, 2025, professional fees were $0.6 million compared to $0.9 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Transaction Costs</strong>: $0.3 million for the six months ended June 30, 2025, compared to $0 for the same period in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>General and Administrative Expenses</strong>: $0.1 million for the three months ended June 30, 2025, and 2024. For the six months ended June 30, 2025, general and administrative expenses were $0.1 million compared to $0.1 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li></ul><h3>Cash Flow</h3><ul><li><strong>Net Cash Used in Operating Activities</strong>: -$2.2 million for the six months ended June 30, 2025, compared to -$13.6 million for the same period in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Net Cash Provided by Financing Activities</strong>: $2.0 million for the six months ended June 30, 2025, compared to $9.0 million for the same period in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li></ul><h3>Unique Metrics</h3><ul><li><strong>Net Asset Value per Share</strong>: Increased from $2.17 per share as of December 31, 2024, to $2.51 per share as of June 30, 2025, an increase of 15.7%.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Discount to Net Asset Value</strong>: As of June 30, 2025, the common stock was trading at a 45.8% discount to net asset value compared to 49.3% as of December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li></ul><h3>Future Outlook and Strategy</h3><h4>Core Business Focus</h4><ul><li><strong>Investment Strategy</strong>: The Fund aims to maximize return to stockholders through investments in debt and equity securities of companies with a total enterprise value between $5.0 million and $75.0 million. The focus is on companies pursuing growth through acquisition or organically, leveraged buyouts, management buyouts, and recapitalizations of existing businesses or special situations.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Tax Status</strong>: The Fund elected to not qualify as a RIC during the fourth quarter of 2024 and will be subject to normal corporate rates of taxation on its income and gains.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li></ul><h4>Non-Core Business</h4><ul><li><strong>Transformation to Operating Company</strong>: The Fund is evaluating opportunities to transform into an operating company. This transformation is contingent upon entering into a definitive agreement to effect a transformative transaction and receiving shareholder authorization to withdraw its BDC election.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Increase in Authorized Shares</strong>: On January 20, 2021, the Fund increased the number of authorized shares of common stock from 50,000,000 to 100,000,000 and preferred stock from 5,000,000 to 10,000,000 to facilitate the transformation into an operating company.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li></ul><h4>Priority</h4><ul><li><strong>Reduction in Asset Coverage Ratio</strong>: On November 14, 2019, shareholders approved a reduction in the asset coverage ratio from 200% to 150%, allowing the Fund to borrow up to twice the value of its net assets.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li><li><strong>Equity Incentive Plan</strong>: The Fund’s 2016 Equity Incentive Plan aims to promote the interests of the Fund by encouraging officers, employees, and directors to acquire or increase their equity interest in the Fund. The plan permits the award of restricted stock and common stock purchase options.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/878932/000171254325000061/f10q_equus06302025.htm"></span></li></ul>

EQUUS Total Return | 10-Q: FY2025 Q2 EPS: USD -0.01