EQS

You should carefully consider these risks, together with all of the other information included in our annual report Additional risks and uncertainties not presently known to us, or not presently deemed material by us, may also impair our operations and performance.
There is uncertainty regarding the value of our privately held securities.
Our holdings in Morgan E&P are subject to commodity price declines endemic to oil and gas companies.
This means that the operations and earnings of Morgan E&P, Inc.
(“Morgan”) may be significantly affected by changes in prices of oil, gas and natural gas liquids.
The lack of liquidity of our privately held securities may adversely affect our business.
We expect to have limited public information regarding the companies in which we may invest.
The costs of borrowing money may exceed the income from the portfolio securities we purchase with the borrowed money.
We have had net investment losses in the past five years, with a net investment loss of $3.7 million for the year ended December 31, 2025.
We may experience fluctuations in our quarterly results.
The use of leverage will increase our exposure to changes in market rates of interest.
We undertook no such borrowings during 2025.
Because we intend to distribute substantially all of our income and net realized capital gains to our stockholders, if we continue to operate as a BDC, we will need additional capital to finance our growth.
Regulations governing our operation as a BDC affect our ability to, and the way in which we, raise additional capital.
The process is ongoing and, although we believe we will consummate a transaction that would result in the transformation of Equus into an operating company during 2026, we may be wrong.
If we reorganize as an operating company, we will likely not seek to requalify as a RIC under the Code.
We would no longer be required to provide and maintain an investment company blanket bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. · Director Independence .

Gone since FY2024

You should carefully consider these risks, together with all of the other information included in our annual report on Form 10-K, including our financial statements and the related notes thereto.
Additional risks and uncertainties not presently known to us, or not presently deemed material by us, may also impair our operations and performance.
TableOfContents There is uncertainty regarding the value of our privately held securities.
TableOfContents Our holdings in Morgan E&P are subject to commodity price declines endemic to oil and gas companies.
This means that the operations and earnings of Morgan E&P, LLC (“Morgan”) may be significantly affected by changes in prices of oil, gas and natural gas liquids.
TableOfContents The lack of liquidity of our privately held securities may adversely affect our business.
TableOfContents We expect to have limited public information regarding the companies in which we may invest.
TableOfContents The costs of borrowing money may exceed the income from the portfolio securities we purchase with the borrowed money.
We have had net investment losses in the past five years, with a net investment loss of $15.6 million for the year ended December 31, 2024.
TableOfContents We may experience fluctuations in our quarterly results.
TableOfContents The use of leverage will increase our exposure to changes in market rates of interest.
We undertook no such borrowings during the fourth quarter of 2024.
In addition to corporate levels of tax on our income and gains as a non-RIC, our distributions will be taxable as dividends to the extent paid from earnings and profits.
We may also be subject to income tax and/or a 4% excise tax, if we fail to distribute a sufficient portion of our net investment income and net realized capital gains.
To the extent that we generate such income and gains and do not requalify as a RIC, our tax treatment as a regular Subchapter C corporation would have a material adverse effect on the total return, if any, obtainable from an investment in our common stock.
TableOfContents Because we intend to distribute substantially all of our income and net realized capital gains to our stockholders, if we continue to operate as a BDC, we will need additional capital to finance our growth.
TableOfContents Regulations governing our operation as a BDC affect our ability to, and the way in which we, raise additional capital.
The process is ongoing and, although we believe we will consummate a transaction that would result in the transformation of Equus into an operating company during 2025, we may be wrong.
TableOfContents If we reorganize as an operating company, we will likely not seek to req ualify as a RIC under the Code .
We would no longer be required to provide and maintain an investment company blanket bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement.
TableOfContents · Director Independence .

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

Watch EQS. Know when insiders buy.

One email the day a filing lands. Free.