<SEC-DOCUMENT>0001391609-14-000013.txt : 20140331
<SEC-HEADER>0001391609-14-000013.hdr.sgml : 20140331
<ACCEPTANCE-DATETIME>20140331170614
ACCESSION NUMBER:		0001391609-14-000013
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20131231
FILED AS OF DATE:		20140331
DATE AS OF CHANGE:		20140331

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EQUUS TOTAL RETURN, INC.
		CENTRAL INDEX KEY:			0000878932
		IRS NUMBER:				760345915
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0604

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00098
		FILM NUMBER:		14730955

	BUSINESS ADDRESS:	
		STREET 1:		EIGHT GREENWAY PLAZA
		STREET 2:		SUITE 930
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77046
		BUSINESS PHONE:		7135290900

	MAIL ADDRESS:	
		STREET 1:		EIGHT GREENWAY PLAZA
		STREET 2:		SUITE 930
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77046

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EQUUS II INC
		DATE OF NAME CHANGE:	19970422
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>f10k_equus123113.htm
<DESCRIPTION>FORM 10-K
<TEXT>
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<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 14pt/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: 2.25pt 0 0; text-align: center"><B>FORM 10-K </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0"><B>(Mark One) </B></P>

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    <td style="width: 3%; padding-left: 5.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Wingdings"><b>x</b></font></td>
    <td style="width: 97%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif"><b>ANNUAL REPORT UNDER 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: 2.25pt 0 0; text-align: center"><B>For the year ended December
31, 2013</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0; text-align: center"><B>Or</B></P>

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    <TD STYLE="width: 3%; padding-top: 2.25pt; padding-bottom: 2.25pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Wingdings"><b>&#168;</b></font></td>
    <TD STYLE="width: 97%; padding-top: 2.25pt; padding-bottom: 2.25pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif"><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: 2.25pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center"><B>For the transition period
from to </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Commission File Number 814-00098</B></P>

<P STYLE="font: 18pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>EQUUS TOTAL RETURN, INC.
</B></P>

<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0 0 2.25pt; text-align: center"><B>(Exact name of registrant
as specified in its charter) </B></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Delaware</b></font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif"><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 style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>(I.R.S. Employer Identification No.)</b></font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>8 Greenway Plaza, Suite 930, Houston, Texas</b></font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>77046</b></font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>(Address of principal executive offices)</b></font></td>
    <td style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>(Zip Code)</b></font></td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>(713) 529-0900 </B></P>

<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Registrant&rsquo;s telephone number,
including area code: </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 5pt; text-align: center"><B>Securities registered pursuant
to Section 12(b) of the Act: </B></P>

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<tr>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Title of each class</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 0.75pt; text-align: center"><b>on which registered</b></P></td></tr>
<tr style="vertical-align: top">
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Common Stock</b></font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>New York Stock Exchange</b></font></td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center"><B>Securities registered pursuant
to Section 12(g) of the Act: None </B></P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes </FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
No </FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes </FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
No </FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; 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: Wingdings">x</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
No </FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant&rsquo;s knowledge, in the definitive proxy or information statement incorporated by reference
in Part III of this 10-K. </FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0; text-indent: 24.5pt">Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See
definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo;
in Rule 12b-2 of the Exchange Act.</P>

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<tr style="vertical-align: bottom">
    <td nowrap style="padding-top: 2.25pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Large accelerated filer </font><font style="font: 10pt/115% Wingdings">&#168;</font></td>
    <td style="padding-left: 0.1in; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Accelerated filer </font><font style="font: 10pt/115% Wingdings">&#168;</font></td></tr>
<tr>
    <td style="vertical-align: top; padding-top: 2.25pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Non-accelerated filer </font><font style="font: 10pt/115% Wingdings">x</font><font style="font: 10pt/115% Times New Roman, Times, Serif"> (Do not check if a smaller reporting company)</font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Smaller reporting company </font><font style="font: 10pt/115% Wingdings">&#168;</font></td></tr>
</table>
<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes </FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
No </FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Approximate aggregate market
value of common stock held by non-affiliates of the registrant: <FONT STYLE="background-color: White">$11,904,684</FONT> computed
on the basis of $1.91 per share, closing price of the common stock on the New York Stock Exchange on June 30, 2013. For purposes
of calculating this amount only, all directors and executive officers of the registrant have been treated as affiliates. There
were 10,561,646 shares of the registrant&rsquo;s common stock, $.001 par value, outstanding as of March 28, 2014. The net asset
value of a share of the Registrant as of December 31, 2013 was $3.14</P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 2.25pt 0 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter
period that the registrant was required to submit and post such files). </FONT><FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-indent: 24.5pt">Portions of the Proxy Statement
(to be filed) for the 2014 Annual Shareholder&rsquo;s meeting are incorporated by reference in Parts II and III.</P>


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 33%"><A HREF="#TableOfContents" TITLE="Table of Contents" STYLE="font-style: italic">Table of Contents</A></TD><TD STYLE="text-align: center; width: 34%"><!-- Field: Sequence; Type: Arabic; Name: PageNo; Options: Hidden -->&nbsp;<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B><A NAME="TableOfContents"></A>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="padding-left: 0.1in; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 7.5pt Times New Roman, Times, Serif"><b>Page</b></font></td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_001">PART I</A></font></td>
    <td style="vertical-align: bottom; padding-left: 0.1in">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt">&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_002">Item 1</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Business</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">3</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_003">Item 1A</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Risk Factors</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">9</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_004">Item 1B</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Unresolved Staff Comments</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">17</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_005">Item 2</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Properties</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">17</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_006">Item 3</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Legal Proceedings</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">17</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_007">Item 4</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Mine Safety Disclosures</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">18</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_008">PART II</A></font></td>
    <td style="vertical-align: bottom; padding-left: 0.1in">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt">&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_009">Item 5</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Market
for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</FONT></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">19</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_010">Item 6</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Selected Financial Data</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">20</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_011">Item 7</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">20</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_012">Item 7A</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Quantitative and Qualitative Information About Market Risk</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">33</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_013">Item 8</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Financial Statements and Supplementary Data</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">34</FONT></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_014">Item 9</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">60</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_015">Item 9A</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Controls and Procedures</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">60</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_016">Item 9B</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Other Information</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">61</FONT></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_017">PART III</A></font></td>
    <td style="vertical-align: bottom; padding-left: 0.1in">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt">&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_018">Item 10</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Directors and Executive Officers and Corporate Governance</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">61</FONT></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_019">Item 11</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Executive Compensation</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">61</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_020">Item 12</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">61</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_021">Item 13</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Certain Relationships and Related Transactions and Director Independence</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">62</FONT></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_023">Item 14</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Principal Accountant Fees and Services</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">62</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_023">PART IV</A></font></td>
    <td style="vertical-align: bottom; padding-left: 0.1in">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt">&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_024">Item 15</A></font></td>
    <td style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Exhibits and Financial Statement Schedules</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">62</FONT></td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<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"><A NAME="a_001"></A><B>PART I </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"><B><A NAME="a_002"></A>Item 1. <I>Business </I></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-indent: 24.5pt">Equus Total Return, Inc. (<I>&ldquo;we,&rdquo;
&ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus&rdquo; the &ldquo;Company&rdquo; or the &ldquo;Fund</I>&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. 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-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 bonds, subordinated debt, debt convertible into
common or preferred stock, or debt combined with warrants and common and preferred stock. Debt and preferred equity financing may
also be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with the
financing. We seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued by privately-owned
companies in transactions negotiated directly with such companies. Given market conditions over the past several years and the
performance of our portfolio, our management and board of directors believe it 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-indent: 24.5pt">Equus is a closed-end management investment
company that has elected to be treated as a business development company (hereafter, &ldquo;BDC&rdquo;) under the Investment Company
Act of 1940 (&ldquo;1940 Act&rdquo;). In order to remain a business development company, we must meet certain specified requirements
under the 1940 Act, including investing at least 70% of our assets in eligible portfolio companies and limiting the amount of leverage
we incur. Equus is also a regulated investment company (&ldquo;RIC&rdquo;) under Subchapter M of the U.S. Internal Revenue Code
of 1986. As such, we are not required to pay corporate-level income tax on the Fund&rsquo;s investment income. We intend to maintain
our RIC status, which requires that we qualify annually as a RIC by meeting certain specified requirements. For a discussion of
these requirements necessary to maintain our status as a BDC and as a RIC, please see &ldquo;Business Development Company Requirements&rdquo;
and &ldquo;Regulated Investment Company Tax Status,&rdquo; 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-indent: 24.5pt">Our principal office is located at
Eight Greenway Plaza, Suite 930, Houston, Texas, 77046, and the telephone number is 1-<FONT STYLE="background-color: White">888-358-7575</FONT>.
Our corporate website is located at <I>www.equuscap.com</I>. We make available free of charge on our website our annual report
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports as soon as reasonably
practicable after such material is electronically filed or furnished to the Securities and Exchange Commission (&ldquo;SEC&rdquo;).
Our shares are traded on The New York Stock Exchange under the ticker symbol &ldquo;EQS&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"><B>Significant Developments </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-indent: 24.5pt">Our Board of Directors (sometimes referred
to as the &ldquo;Board&rdquo;) and management of the Fund (&ldquo;Management&rdquo;) continue to believe that current market conditions
and recent portfolio performance dictate the need to pursue a more active role in the management of these investments and to seek
liquidity events at the appropriate time to protect and enhance shareholder value. These activities include continuous monitoring
and intensive reviews of portfolio company performance and expectations, providing follow-on capital when necessary, exploration
of liquidity events for certain portfolio companies to position the Fund to maximize investment returns, and actively pursuing
suitable new investments for the Fund. Consistent with that strategy, the following is a summary of significant developments during
2013:</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="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 36px">&nbsp;</td>
    <TD STYLE="width: 48px; padding-bottom: 10pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">(i)</font></td>
    <TD STYLE="padding-bottom: 6pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">On
    December 27, 2012, we invested an additional $6.8 million in Equus Energy, LLC (&ldquo;Equus Energy&rdquo;), a wholly-owned
    subsidiary of the Fund, for the purpose of additional working capital and to fund the purchase of $6.6 million in working
    interests in 129 producing and non-producing oil and gas wells, including associated development rights of approximately
    21,120 acres situated on 13 separate properties in Texas and Oklahoma. The working interests range from a <i>de minimus</i>
    amount to 50% of the leasehold production of these wells. The wells are operated by a number of experienced operators such as
    Apache, Chesapeake, and Chevron, which has operating responsibility for leasehold interests in the Conger Field, representing
    approximately half of the producing well interests. The assets were purchased from Warren American Oil Company, LLC, a
    Tulsa-based oil &amp; gas firm.&nbsp;&nbsp;Due to improved operating performance in the fourth quarter of 2013, an increase
    in proved developed producing reserves, and the estimated value of the acreage rights associated with certain working
    interests held in the Eagle Ford trend, the fair value of this holding increased from approximately $6.9 million at December
    31, 2012 to $8.0 million at December 31, 2013.</font> </td></tr>
</TABLE>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <TD STYLE="width: 36px">&nbsp;</td>
    <TD STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; width: 48px"><font style="font: 10pt Times New Roman, Times, Serif">(ii)</font></td>
    <TD STYLE="padding-bottom: 6pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">On November 7, 2013, we &nbsp;made a short-term working capital loan of $0.5 million to Security Monitor Holdings, LLC (&ldquo;SMH&rdquo;).&nbsp;&nbsp;The loan matures in May 2014 and bears interest at the rate of 14% per annum.&nbsp;&nbsp;Located just outside of Boston, MA, SMH specializes in managing and improving operations of distressed companies.&nbsp;&nbsp;SMH has been engaged by Spectrum Management, LLC (&ldquo;Spectrum&rdquo;), a portfolio company of the Fund, to turn around its operations and position the company for a possible sale. </font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt"><font style="font: 10pt Times New Roman, Times, Serif">(iii)</font></td>
    <TD STYLE="padding-bottom: 6pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Due
    to a  more stable operating performance and improved customer retention for Spectrum during 2013, the fair value of our
    holdings in Spectrum  increased from $0.4 million at     December 31,     2012 to approximately $2.9     million at
    December 31,     2013.</font></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"><B>Investment Objective </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-indent: 24.5pt">Our investment objective is to maximize
the total 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 small and middle market capitalization companies that are generally not publicly traded at the time of
our investment. As a result of our endeavors in the energy sector, we also seek to purchase working interests and revenue leasehold
interests in oil and gas properties, although we remain open to exploring investment opportunities in a variety of other sectors,
such as real estate. As we grow and develop the Fund, we intend to include investments in progressively larger enterprises.</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"><B>Investment Strategy </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-indent: 24.5pt">Beginning in 2006, we implemented a revised investment strategy
to attempt to strike a balance between the potential for gain and the risk of loss. With respect to capital appreciation, Equus
is a &ldquo;growth-at-reasonable-price&rdquo; investor that seeks to identify and acquire securities that meet our criteria for
selling at reasonable prices. We give priority to cash producing investments wherein we invest principally in debt or preferred
equity financing with the objective of generating regular interest and dividend income back to the Fund. 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. 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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Investment Criteria </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-indent: 24.5pt">Consistent with our investment objective
and strategy, Management evaluates prospective investments based upon the criteria set forth below. We may modify some or all of
these criteria from time to time.</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 63.35pt"><I>Management Competency and Ownership</I>. We
seek to invest in companies with experienced management teams who have demonstrated a track record of successful performance. Further,
we desire to invest in companies with significant management ownership. We believe that significant management ownership in small
capitalization and middle market companies provides appropriate incentives and an alignment of interests for management to maximize
shareholder value. In addition, we will seek to design compensation and incentive arrangements that align the interests of the
portfolio company&rsquo;s management with those of the Fund to enhance potential returns.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63pt"><I>Substantial Target Market</I>. We desire to focus
on companies whose products or services have favorable growth potential and strong competitive positions in their respective markets.
These positions may be as leadership positions within a given industry or market niche positions in which the product or service
has a demonstrated competitive advantage. The market in which a potential portfolio company operates should either be sizeable
or have significant growth potential.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63pt"><I>History of Profitability and Favorable Growth
Potential</I>. We target companies that have demonstrated a history of profitability or a reasonable expectation of a return to
profitability in the near future.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63.35pt"><I>Ability to Provide Regular Cash Interest and
Distributions</I>. We look for companies with strong cash flow models sufficient to provide regular and consistent interest and/or
preferred dividend payments.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63.35pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63.35pt"><I>Management Assistance and Substantial Equity</I>.
Given the requirements of a BDC under the 1940 Act, we seek to invest in companies that will permit substantial managerial assistance
including representation on the board of directors of the company or its equivalent. With regard to equity investments, we desire
to obtain a substantial</P>


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<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 0 0 63.35pt">investment position in portfolio companies. This
position may be as a minority shareholder with certain contractual rights and powers, or as a majority shareholder, and should
otherwise allow us to have substantive input on the direction and strategies of the portfolio company.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63.35pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63.35pt"><I>Plausible Exit and Potential for Appreciation</I>.
Prior to investing in a portfolio company, we will seek to analyze potential exit strategies and pursue those investments with
such strategies as may be achievable.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 63.35pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Investment Operations </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-indent: 24.5pt">Our investment operations consist principally
of the following basic activities:</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"><I>Investment Selection.</I> We expect
that many of our investment opportunities will come from Management, members of our Board, other private equity investors, direct
approaches from prospective portfolio companies and referrals from investment banks, business brokers, commercial, regional and
local banks, attorneys, accountants and other members of the financial community. Subject to the approval of our Board, we may
compensate certain referrals with finder&rsquo;s fees to the extent permissible under applicable law and consistent with industry
practice.</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"><I>Due Diligence.</I> Once a potential
investment is identified, we undertake a due diligence review using information provided by the prospective portfolio companies
and publicly available information. Management may also seek input from consultants, investment bankers and other knowledgeable
sources. The due diligence review will typically include, but is not limited to:</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="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 41px">&nbsp;</td>
    <td style="width: 24px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&bull;</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Review of historical and prospective financial information including audits and budgets;</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-top: 4.5pt"><font style="font: 10pt Times New Roman, Times, Serif">&bull;</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">On-site visits;</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-top: 4.5pt"><font style="font: 10pt Times New Roman, Times, Serif">&bull;</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Interviews with management, employees, customers and vendors of the potential portfolio company;</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-top: 4.5pt"><font style="font: 10pt Times New Roman, Times, Serif">&bull;</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Review of existing loan documents, if any;</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-top: 4.5pt"><font style="font: 10pt Times New Roman, Times, Serif">&bull;</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Background checks on members of management; and</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-top: 4.5pt"><font style="font: 10pt Times New Roman, Times, Serif">&bull;</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Research relating to the company, its management, industry, markets, products and services and competitors.</font></td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Structuring Investments.</I> We typically
negotiate investments in private transactions directly with the owner or issuer of the securities acquired. Management structures
the terms of a proposed investment, including the purchase price, the type of security to be purchased and our future involvement
in the portfolio company&rsquo;s business. We seek to structure the terms of the investment to provide for the capital needs of
the portfolio company while maximizing our opportunities for current income and capital appreciation. In addition, we may invest
with other co-investors including private equity firms, business development companies, small business investment companies, venture
capital groups, institutional investors and individual investors.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Providing Management Assistance and
Monitoring of Investments.</I> Successful private equity investments typically require active monitoring of, and significant participation
in, major business decisions of portfolio companies. In several cases, officers and directors of the Fund serve as members of the
governing boards of portfolio companies. Such management assistance is required of a BDC under the 1940 Act. We seek to provide
guidance and management assistance with respect to such matters as capital structure, acquisitions, budgets, profit goals, corporate
strategy, portfolio management and potential sale of the company or other exit strategies. In connection with their service as
directors of portfolio companies, officers and directors of the Fund may receive and retain directors&rsquo; fees or reimbursement
for expenses incurred, and may participate in incentive stock option plans for non-employee directors, if any. When necessary and
as requested by any portfolio company, Management, on behalf of the Fund, may also assign staff professionals with financial or
management expertise to assist portfolio company management.</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>Follow-On Investments </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-indent: 24.5pt">Following our initial investment, a
portfolio company may request that we make follow-on investments by providing additional equity or loans needed to fully implement
their business plans to develop a new line of business or to recover from unexpected business problems or other purposes. In addition,
follow-on investments may be made to exercise warrants or other preferential rights granted to the Fund or otherwise to increase
our position in a portfolio company. We may make follow-on investments in portfolio companies from cash on hand or borrow all or
a portion of the funds required. If we are unable to make follow-on investments due to lack of available capital, the portfolio
company in need of the investment may be negatively impacted and our equity interest in the portfolio company may be diluted if
outside equity capital is required.</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">&nbsp;</P>


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<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"><B>Disposition of Investments</B></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"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The method and timing of the disposition
of our investments in portfolio companies are critical to our ability to realize capital gains and minimize capital losses. We
may dispose of our portfolio securities through a variety of transactions, including recapitalizations, refinancings, management
buy-outs, repayments from cash flow, acquisitions of portfolio companies by a third party and outright sales of the Fund&rsquo;s
securities in a portfolio company. In addition, we may distribute our portfolio securities in-kind to our stockholders. In structuring
our investments, we endeavor to reach an understanding with the management of the prospective portfolio company as to the appropriate
method and timing of the disposition of the investment. In some cases, we seek registration rights for our portfolio securities
at the time of investment which typically provide that the portfolio company will bear the cost of registration. To the extent
not paid by the portfolio company, the Fund typically bears the costs of disposing of its portfolio investments.</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>Current Portfolio Companies </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-indent: 24.5pt">For a description of our current portfolio
company investments, see &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&ndash;Portfolio
Securities.&rdquo;</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>Valuation </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-indent: 24.5pt">On at least a quarterly basis, Management
values our portfolio investments. These valuations are subject to the approval and adoption of the Board. Valuations of our portfolio
securities at &ldquo;fair value&rdquo; are performed in accordance with accounting principles generally accepted in the United
States of America (&ldquo;GAAP&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-indent: 24.5pt">The fair value of investments for which
no market exists (which includes most of the Fund&rsquo;s investments) is determined through procedures established in good faith
by the Board. As a general principle, the current &ldquo;fair value&rdquo; of an investment is the amount the Fund might reasonably
expect to receive upon its sale in an orderly manner. There are a range of values that are reasonable for such investments at any
particular time.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">We base our adjustments
upon such factors as the portfolio company&rsquo;s earnings, cash flow and net worth, the market prices for similar securities
of comparable companies, an assessment of the company&rsquo;s current and future financial prospects and various other factors
and assumptions. In the case of unsuccessful or substantially declining operations,we   may base a portfolio company&rsquo;s
fair value upon the company&rsquo;s estimated liquidation value. Fair valuations are necessarily subjective, and our
estimate of fair value may differ materially from amounts actually received upon the disposition of its portfolio securities. Also,
any failure by a portfolio company to achieve its business plan or obtain and maintain its financing arrangements could result
in increased volatility and result in a significant and rapid change in its value.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">Our general intent is to hold
our loans to maturity when appraising our privately held debt investments. As such, we believe that the fair value will not exceed
the cost of the investment. However, in addition to the previously described analysis involving allocation of value to the debt
instrument, we perform a yield analysis to determine if a debt security has been impaired.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">The Audit Committee of the
Board of Directors may engage independent, third-party valuation firms to conduct independent appraisals and review management&rsquo;s
preliminary valuations of each privately-held investment in order to make their own independent assessment. Any third-party valuation
data would be considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair
values for all privately-held securities based on all relevant factors to the Board of Directors for final approval.</P>

<P STYLE="font: 10pt/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">To the extent that market quotations
are readily available for our investments and such investments are freely transferable, we value them at the closing market price
on the date of valuation. For securities which are of the same class as a class of public securities but are restricted from free
trading (such as Rule 144 stock), we establish our valuation by discounting the closing market price to reflect the estimated impact
of illiquidity caused by such restriction. We generally hold investments in debt securities to maturity. Accordingly, we determine
the fair value of debt securities on the basis of the terms of the debt securities and the financial condition of the issuer. We
value certificates of deposit at their face value, plus interest accrued to the date of valuation.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24pt">Our Board reviews the valuation
policies on a quarterly basis to determine their appropriateness and reserves the right to hire and from time to time utilizes
independent valuation firms to review Management&rsquo;s valuation methodology or to conduct an independent valuation.</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/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">On a daily basis, we adjust net asset
value for changes in the value of publicly held securities, if any, and for material changes in the value of investments in securities
issued by private companies. We report these amounts to Lipper Analytical Services, Inc. Our weekly and  daily
net asset values appear in various publications, including <I>Barron&rsquo;s </I>and <I>The Wall Street Journal.</I></P>

<P STYLE="font: 10pt/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"><B><I>Competition </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-indent: 24.5pt">We compete with a large number of public
and private equity and mezzanine funds and other financing sources, including traditional financial services companies such as
finance companies and commercial banks. Many of our competitors are substantially larger and have considerably greater financial,
technical and marketing resources than we do. Our competitors may have a lower cost of funds and many have access to funding sources
that are not available to us. In addition, certain of our competitors may have higher risk tolerances or different risk assessments,
which could allow them to consider a wider variety of investments and establish more relationships and build their market shares.
In addition, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC.</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">We cannot assure you that the
competitive pressures we face will not have a material adverse effect on our business, financial condition and results of
operations. In addition, because of this competition, we may not be able to take advantage of attractive investment
opportunities and may not be able to identify and make investments that satisfy our investment objectives or meet our
investment goals.</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>Properties </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-indent: 24.5pt">Our principal executive offices are
located at Eight Greenway Plaza, Suite 930, Houston, Texas 77046. We believe that our office facilities are suitable and adequate
for our operations as currently conducted and contemplated.</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>Business Development Company Requirements </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Qualifying Assets</I>. As a BDC,
we may not acquire any asset other than qualifying assets, as defined by the 1940 Act, unless, at the time the acquisition is made
the value of our qualifying assets represent at least 70% of the value of our total assets. The principal categories of qualifying
assets relevant to our business are the following:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 1px">&nbsp;</td>
    <td style="width: 1px">&nbsp;</td>
    <td style="padding-left: 0.5in; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -0.25in"><font style="font-family: Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">securities purchased in transactions not involving any public offering from an issuer that is an eligible portfolio company. An eligible portfolio company is any issuer that (a) is organized and has its principal place of business in the United States, (b) is not an investment company other than a small business investment company wholly-owned by the BDC, and (c) either (i) (A) does not have any class of securities with respect to which a broker or dealer may extend margin credit, (B) is controlled by the BDC either singly or as part of a group and an affiliated person of the BDC is a member of the issuer&rsquo;s board of directors, or (C) has total assets of not more than $4 million and capital and surplus of at least $2 million, or (ii) does not have any class of securities listed on a national securities exchange, unless the total market capitalization of such issuer does not exceed $250 million. Qualifying assets may also include follow-on investments in a company that was a particular type of eligible portfolio company at the time of the BDC&rsquo;s initial investment, but subsequently did not meet the definition;</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 1px">&nbsp;</td>
    <td style="width: 1px">&nbsp;</td>
    <td style="padding-left: 0.5in; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -0.25in"><font style="font-family: Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">securities received in exchange for or distributed with respect to securities described above, or pursuant to the exercise of options, warrants or rights relating to such securities; and</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 1px">&nbsp;</td>
    <td style="width: 1px">&nbsp;</td>
    <td style="padding-left: 0.5in; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -0.25in"><font style="font-family: Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">cash, cash items, government securities, or high quality debt securities maturing in one year or less from the time of investment.</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-indent: 24.5pt">We may not change the nature of our
business so as to cease to be, or withdraw our election as, a BDC unless authorized by vote of the holders of the majority of our
outstanding voting securities, as defined in the 1940 Act.</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">To include certain securities above
as qualifying assets for the purpose of the 70% test, a BDC must make available to the issuer of those securities significant managerial
assistance, such as providing significant guidance and counsel concerning the management, operations, or business objectives and
policies of a portfolio company. We offer to provide significant managerial assistance to each of our portfolio companies.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Temporary Investments.</I> Pending
investment in portfolio companies, we invest our available funds in interest-bearing bank accounts, money market mutual funds,
U.S. Treasury securities and/or certificates of deposit with maturities of less than one year(collectively, &ldquo;Temporary Investments&rdquo;).
Temporary Investments may also include commercial paper (rated or unrated) and other short-term securities. Temporary Investments
constituting cash, cash items, securities issued or guaranteed by the U.S. Treasury or U.S. Government agencies and high quality
debt securities (commercial paper rated in the two highest rating categories by Moody&rsquo;s Investor Services, Inc. or Standard
&amp; Poor&rsquo;s Corporation, or if not rated, issued by a company having an outstanding debt issue so rated, with maturities
of less than one year at the time of investment) will qualify for determining whether we have 70% of our total assets invested
in qualifying assets or in qualified Temporary Investments for purposes of the BDC provisions of the 1940 Act.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Leverage. </I>We are permitted by
the 1940 Act, under specified conditions, to issue multiple classes of senior debt and a single class of preferred stock senior
to the common stock if our asset coverage, as defined in the 1940 Act, is at least 200% after the issuance of the debt or the senior
stockholders&rsquo; interests. In addition, provisions must be made to prohibit any distribution to common stockholders or the
repurchase of any shares unless the asset coverage ratio is at least 200% at the time of the distribution or repurchase.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Fund Share Sales Below Net Asset
Value</I>. We generally may sell our common stock at a price that is below the prevailing net asset value per share only upon the
approval of the policy by stockholders holding a majority of our issued shares, including a majority of shares held by nonaffiliated
stockholders. We may, in accordance with certain conditions established by the SEC, sell shares below net asset value in connection
with the distribution of rights to all of our stockholders. We may also issue shares at less than net asset value in payment of
dividends to existing stockholders.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>No Redemption Rights.</I> Since we
are a closed-end BDC, our stockholders have no right to present their shares to the Fund for redemption. Recognizing the possibility
that our shares might trade at a discount, our Board has determined that it would be in the best interest of our stockholders for
the Fund to be authorized to attempt to reduce or eliminate a market value discount from net asset value. Accordingly, from time
to time we may, but are not required to, repurchase our shares (including by means of tender offers) to attempt to reduce or eliminate
any discount or to increase the net asset value of our shares.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Affiliated Transactions</I>. Many
of the transactions involving the Fund and its affiliates (as well as affiliates of such affiliates) require the prior approval
of a majority of the independent directors and a majority of the independent directors having no financial interest in the transactions.
However, certain transactions involving closely affiliated persons of the Fund require the prior approval of the SEC.</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>Regulated Investment Company Tax Status </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-indent: 24.5pt">We operate to qualify as a regulated
investment company (&quot;RIC&quot;) under Subchapter M of the Internal Revenue Code of 1986, as amended (the &quot;Code&quot;).
If we qualify as a RIC and annually distribute to our stockholders in a timely manner at least 90% of our investment company taxable
income, we will not be subject to federal income tax on the portion of our taxable income and capital gains we distribute to our
stockholders. Taxable income generally differs from net income as defined by accounting principles generally accepted in the United
States of America due to temporary and permanent timing differences in the recognition of income and expenses, returns of capital
and net unrealized appreciation or depreciation.</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">Generally, in order to maintain our
status as a RIC, we must (i) continue to qualify as a BDC; (ii) distribute to our stockholders in a timely manner at least 90%
of our investment company taxable income, as defined by the Code; (iii) derive in each taxable year at least 90% of our gross investment
company income from dividends, interest, payments with respect to securities loans, gains from the sale of stock or other securities
or other income derived with respect to our business of investing in such stock or securities as defined by the Code; and (iv)
meet investment diversification requirements. The diversification requirements generally require us at the end of each quarter
of the taxable year to have (a) at least 50% of the value of our assets consist of cash, cash items, government securities, securities
of other regulated investment companies and other securities if such other securities of any one issuer do not represent more than
5% of our assets and 10% of the outstanding voting securities of the issuer and (b) no more than 25% of the value of our assets
invested in the securities of one issuer (other than U.S. government securities and securities of other regulated investment companies),
or of two or more issuers that are controlled by us and are engaged in the same or similar or related trades or businesses.</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">In addition, with respect to each calendar
year, if we distribute or have treated as having distributed (including amounts retained but designated as deemed distributed)
in a timely manner 98% of our net capital gain income for each one-year period ending on October 31, and distribute 98.2% of our
investment company net ordinary income for such calendar year (as well as any ordinary income not distributed in prior years),
we will not be subject to the 4% nondeductible Federal excise tax imposed with respect to certain undistributed income of regulated
investment companies.</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/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">If we fail to satisfy the 90% distribution
requirement or otherwise fail to qualify as a regulated investment company in any taxable year, we will be subject to tax in such
year on all of our taxable income, regardless of whether we make any distribution to our stockholders. In addition, in that case,
all of our distributions to our stockholders will be characterized as ordinary income (to the extent of our current and accumulated
earnings and profits). We have distributed and currently intend to distribute sufficient dividends to eliminate our investment
company taxable income; however, none have been necessary in recent years.</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>Custodian </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-indent: 24.5pt">We act as the custodian of our securities
to the extent permitted under the 1940 Act and are subject to the restrictions imposed on self-custodians by the 1940 Act and the
rules and regulations thereunder. We have also entered into an agreement with Amegy Bank with respect to the safekeeping of our
securities. The principal business office of Amegy Bank is 4400 Post Oak Parkway, Houston, Texas 77019.</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>Transfer and Disbursing Agent </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-indent: 24.5pt">We employ American Stock Transfer &amp;
Trust Company as our transfer agent to record transfers of our shares, maintain proxy records and to process distributions. The
principal business office of our transfer agent is 6201 15th Avenue, 2nd Floor, Brooklyn, NY 11219.</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>Certifications </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-indent: 24.5pt">In July 2013, we submitted to the New
York Stock Exchange pursuant to Section 303A.12(a) of its Listed Company Manual, an unqualified certification of our Chief Executive
Officer. In addition, certifications by our Chief Executive Officer and Chief Financial Officer have been filed as exhibits to
this annual report on Form 10-K as required by the Securities Exchange Act of 1934, as amended, and the Sarbanes-Oxley Act of 2002.</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>Forward-Looking Statements </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>All statements contained herein that
are not historical facts including, but not limited to, statements regarding anticipated activity are &ldquo;forward-looking statements&rdquo;
within the meaning of the federal securities laws, involve a number of risks and uncertainties, and are based on the beliefs and
assumptions of Management, based on information currently available to Management. Actual results may differ materially. In some
cases, readers can identify forward-looking statements by words such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo;
&ldquo;expect,&rdquo; &ldquo;objective,&rdquo; &ldquo;plan,&rdquo; &ldquo;intend,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo;
&ldquo;Management believes,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo; &ldquo;project,&rdquo; &ldquo;potential,&rdquo;
&ldquo;forecast,&rdquo; &ldquo;continue,&rdquo; &ldquo;strategy,&rdquo; or &ldquo;position&rdquo; or the negative of such terms
or other variations of them or by comparable terminology. In particular, statements, express or implied, concerning future actions,
conditions, or events, future operating results, or the ability to generate sales, income, or cash flow are forward-looking statements.
</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Among the factors that could cause
actual results to differ materially are the following: (i) changes in the economic conditions in which we operate negatively impacting
our financial resources; (ii) certain of our competitors have substantially greater financial resources than the Fund reducing
the number of suitable investment opportunities offered or reducing the yield necessary to consummate the investment; (iii) there
is uncertainty regarding the value of our privately held securities that require a good faith estimate of fair value for which
a change in estimate could affect the Fund&rsquo;s net asset value; (iv) our investments in securities of privately held companies
may be illiquid which could affect our ability to realize a gain; (v) our portfolio companies could default on their loans or provide
no returns on its investments which could affect the Fund&rsquo;s operating results; (vi) we are dependent on external financing
to grow our business; (vii) our ability to retain key management personnel; (viii) an economic downturn or recession could impair
our portfolio companies and therefore harm our operating results; (iv) our borrowing arrangements impose certain restrictions;
(x) changes in interest rates may affect our cost of capital and net operating income; (xi) we cannot incur additional indebtedness
unless the Fund maintains an asset coverage of at least 200%, which may affect returns to our stockholders; (xii) we may fail to
continue to qualify for our pass-through treatment as a RIC which could have an effect on stockholder returns; (xiii) our common
stock price may be volatile; and (xiv) general business and economic conditions and other risk factors described in its reports
filed from time to time with the Securities and Exchange Commission. We caution readers not to place undue reliance on any such
forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as
such, speak only as of the date made. </I></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><A NAME="a_003"></A>Item 1A. <I>Risk Factors </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-indent: 24.5pt">An investment in our securities involves
certain risks relating to our structure and investment objectives. The risks and uncertainties described below are not the only
ones facing Equus. You should carefully consider these risks, together with all of the other information included in the annual
report on Form 10-K, including our financial statements and the related notes thereto.</P>


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<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">Additional risks and uncertainties not
presently known to us, or not presently deemed material by us, may also impair our operations and performance.</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">If any of the following risks actually
occur, our business, financial condition or results of operations could be materially adversely affected. If that happens, the
trading price of our common stock could decline and you may lose all or part of your investment.</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>Risks Related to Our Investments</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Investments in small capitalization
companies present certain risks that may not exist to the same degree as investments in larger, more established companies and
will cause such investments to be volatile and speculative.</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-indent: 24.5pt">We have invested and may continue to
invest, in private, small and/or new companies that may be in their early stages of development. Investments in these types of
companies involve a number of significant risks, including the following:</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="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 98%; padding-left: 0.5in; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">They typically have shorter operating histories, narrower product lines and smaller market shares than public companies, which tend to render them more vulnerable to competitors&rsquo; actions and market conditions as well as general economic downturns;</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 0.5in; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">They may have no earnings or experienced losses or may have limited financial resources and may be unable to meet their obligations under their securities, which may be accompanied by a deterioration in the value of their equity securities or any collateral or guarantees provided with respect to their debt;</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 0.5in; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">They are more likely to depend on the management talents and efforts of a small group of persons and, as a result, the death, disability, resignation or termination of one or more of those persons could have a material adverse effect on their business and prospects and, in turn, on our investment;</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 0.5in; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">They may have difficulty accessing the capital markets to meet future capital needs;</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 0.5in; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">They generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position; and</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 0.5in; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font: 10pt Times New Roman, Times, Serif">Generally little public information exists regarding these companies, and investors in these companies generally must rely on the ability of the equity sponsor to obtain adequate information for the purposes of evaluating potential returns and making a fully informed investment decision.</font></td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>There is uncertainty regarding
the value of our privately held securities.</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-indent: 24.5pt">Our net asset value is based on the
value we assign to our portfolio investments. Except for our holding of shares and notes of OPG, we determine the value of our
investments in securities for which market quotations are not available as of the end of each calendar quarter, unless there is
a significant event requiring a change in valuation in the interim. Because of the inherent uncertainty of the valuation of portfolio
securities that do not have readily ascertainable market values, our fair value determination may differ materially from the value
that would have been used had a ready market existed for the securities. We determine the fair value of investments for which no
market quotations are available based upon a methodology that we believe reaches a reasonable estimation of fair value. However,
we do not necessarily apply multiple valuation metrics in reaching this determination and, in some cases, we do not obtain any
third party valuations before reaching this determination. Our determinations of the fair value of our investments have a material
impact on our net earnings through the recording of unrealized appreciation or depreciation of investments as well as our assessment
of interest income recognition. Our net asset value could be affected materially if our determinations of the fair value of our
investments differ significantly from values based on a ready market for these securities.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We depend upon Management for
our future investment success.</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-indent: 24.5pt">We depend upon the diligence and skill
of Management to select, structure, close and monitor our investments. Management is responsible for identifying, structuring,
evaluating, monitoring, and disposing of our investments, and the services they collectively provide significantly impact our results
of operations. Our future success will depend to a significant extent on the continued service and coordination of Management.
Our success will depend on our ability to retain our existing Management and to recruit additional other highly qualified individuals.
If we are unable to integrate new investment and management personnel, we may be unable to achieve our desired investment results.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Management may not be able to implement
our investment objective successfully.</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-indent: 24.5pt">Our current portfolio represents a shift
from a regional focus and a record of investing in basic manufacturing and service companies to an investment strategy focused
in a variety of sectors such as energy and real estate. Given recent economic events and changes in our Board and Management, we
have revised our strategy to be more opportunistic, emphasizing investments which generate regular cash income and distributions,
with less regard for a particular industry sector. In order to implement our investment strategy, Management must analyze, conduct
due diligence, invest in, monitor and sell investment interests in industries in which many of them have not previously been involved.
Also, we expect that our investment strategy will continue to require Management to investigate and monitor investments that are
much more broadly dispersed geographically. In addition, Management is required to provide valuations for investments in a broader
range of securities, including debt securities, which may require expertise beyond that previously required. We cannot assure investors
that the overall risk of their investment in the Fund will be reduced as a result of our investment strategy. If we cannot achieve
our investment objective successfully, the value of your investment in our common stock could decline substantially.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We may not realize gains from
our equity investments.</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-indent: 24.5pt">We frequently invest in the equity
securities of our portfolio companies. Also, when we make a loan, we  sometimes receive warrants to acquire stock issued by
the borrower. Ultimately, our goal is to sell these equity interests and realize gains. These equity interests may not
appreciate and, in fact, may depreciate in value. Several of our portfolio companies have experienced net losses in recent
years or have negative net worth as of their most recent available balance sheet date. At December 31, 2013, several of our
portfolio investments had estimated fair values, based upon our valuation methodologies, significantly below the initial cost
of such investments. At December 31, 2013, the cost basis of our portfolio investments was $17.5 million and our estimated
fair value was $13.5 million. Also, the market value of our equity investments may fall below our estimate of the fair value
of such investments before we sell them. Given these factors, there is a risk that we will not realize gains upon the sale of
those or other equity interests that we hold.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We may not be able to make additional
investments in our portfolio companies from time to time, which may dilute our interests in such companies.</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-indent: 24.5pt">After our initial investment in a portfolio
company, we may be called upon from time to time to provide additional funds to such company, or may have the opportunity to increase
our investment in that company through the exercise of a warrant to purchase common stock or through follow-on investments in the
debt or equity of that company. We cannot assure you that we will make, or have sufficient funds to make, any such follow-on investments.
Any decision by us not to make a follow-on investment or any inability on our part to make such an investment may have a negative
impact on a portfolio company in need of investment and may result in a missed opportunity for us to increase our participation
in a successful operation. A decision not to make a follow-on investment may also dilute our equity interest in, or reduce the
expected yield on, our investment.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We have invested in a limited
number of portfolio companies.</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-indent: 24.5pt">The Fund is 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. As a matter of policy, we generally have not initially invested more than 25% of the value of our
net assets in a single portfolio company. In view of the net asset value of the Fund as of December 31, 2013, however, we would
expect that any new investments may exceed this percentage for the immediate future. Moreover, follow-on investments, disproportionate
increases or decreases in the fair value of certain portfolio companies or sales of investments may result in more than 25% of
our net assets being invested in a single portfolio company at a particular time.</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">A consequence of a limited number of
investments is that 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 our 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 a greater number of investments.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>The lack of liquidity of our privately
held securities may adversely affect our business</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-indent: 24.5pt">Our portfolio investments consist principally
of securities that are subject to restrictions on sale because they are not listed or publicly traded securities. If any of these
securities were to become publicly traded, our ability to sell them may still be restricted because we acquired them from the issuer
in &ldquo;private placement&rdquo; transactions or because we may be deemed to be an affiliate of the issuer. We will not be able
to sell these securities publicly without the expense and time required to register the</P>


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<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">securities under the Securities Act and applicable state
securities laws, unless an exemption from such registration requirements is available. In addition, contractual or practical limitations
may restrict our ability to liquidate our securities in portfolio companies because those securities are privately held and we
may own a relatively large percentage of the issuer&rsquo;s outstanding securities. Sales also may be limited by market conditions,
which may be unfavorable for sales of securities of particular issuers or generally. The illiquidity of our investments may preclude
or delay any disposition of such securities, which may make it difficult for us to obtain cash equal to the value at which we record
our investments if the need arises.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We have limited public information
regarding the companies in which we invest.</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-indent: 24.5pt">Except for our holdings in respect of
OPG, our portfolio consists entirely of securities issued by privately-held companies. There is generally little or no publicly
available information about such companies, and we must rely on the diligence of Management to obtain the information necessary
for our decision to invest in them and in order to monitor them effectively. We cannot assure you that such diligence efforts will
uncover all material information about such privately held businesses necessary to make fully informed investment decisions.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our portfolio companies may be
highly leveraged.</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-indent: 24.5pt">Investments in leveraged buyouts and
in highly leveraged companies involve a high degree of business and financial risk and can result in substantial losses. A leveraged
company&rsquo;s income and net assets will tend to increase or decrease at a greater rate than if borrowed money were not used.
The use of leverage by portfolio companies also magnifies the increase or decrease in the value of our investment as compared to
the overall change in the enterprise value of a portfolio company.</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">Many of our portfolio companies have
incurred substantial debt in relation to their equity capital. Such indebtedness generally has a term that will require that the
balance of the loan be refinanced when it matures. If a portfolio company cannot generate adequate cash flow to meet the principal
and interest payments on its debt or is not successful in refinancing the debt upon its maturity, our investment could be reduced
or eliminated through foreclosure on the portfolio company&rsquo;s assets or by the portfolio company&rsquo;s reorganization or
bankruptcy.</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">A substantial portion of the debt incurred
by portfolio companies may bear interest at rates that fluctuate in accordance with a stated interest rate index or the prime lending
rate. The cash flow of a portfolio company may not be sufficient to meet increases in interest payments on its debt. Accordingly,
the profitability of our portfolio companies, as well as the value of our investments in such companies, will depend significantly
upon prevailing interest rates. In recent months the level of interest rates have increased, which will have an adverse effect
on the ability of our portfolio companies to service their floating rate debt and on their profits.</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">Leverage may impair the ability of our
portfolio companies to finance their future operations and capital needs. As a result, the ability of our portfolio companies to
respond to changing business and economic conditions and to business opportunities may be limited.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>The use of leverage may adversely
affect our performance.</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-indent: 24.5pt">We may utilize leverage for the Fund
or its subsidiaries by borrowing or issuing preferred stock or short-term debt securities. Borrowings and other capital generated
from leverage will result in lenders and other creditors with fixed dollar claims on our assets that are superior to the claims
of our common shareholders. If the value of our assets increases, then leveraging would cause the net asset value attributable
to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases,
leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any
increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it
would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have
had we not borrowed. Leverage is generally considered a speculative investment technique.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our business depends on external
financing.</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-indent: 24.5pt">Our business requires a substantial
amount of cash to operate. We may borrow funds to pay contingencies or expenses or to make investments, to maintain our pass-through
tax status as a RIC under Subchapter M of the Code. We are permitted under the 1940 Act to borrow if, immediately after the borrowing,
we have an asset coverage ratio of at least 200%. That is, we may borrow an amount equal to as much as 50% of the fair value of
our total assets (including investments made with borrowed funds). The amount and nature of any such borrowings depend upon a number
of factors over which we have no control, including general economic conditions, conditions in the financial markets and the impact
of the financing on the tax treatment of our stockholders. The use of leverage, even on a short-term basis, could have the effect
of magnifying increases or decreases in our net asset value.</P>


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<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">While the &ldquo;spread&rdquo; between the current yields
on our investments and the cost of any loan would augment the return to our stockholders, if the spread narrows (because of an
increase in the cost of debt or insufficient income on our investments), distributions to our stockholders could be adversely affected.
This may render us unable to meet our obligations to our lenders, which might then require us to liquidate some or all of our investments.
There can be no assurance that we would realize full value for our investments or recoup all of our capital if we needed to liquidate
our portfolio 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-indent: 24.5pt">Many financial institutions are unwilling
to lend against a portfolio of illiquid, private securities. The make-up of our portfolio has made it more difficult for us to
borrow at the level and on the terms that we desire. Our borrowings have historically consisted of a revolving line of credit,
the proceeds of which we may use to provide liquidity for expenses and contingencies and to make new or follow-on investments,
and a line of credit, promissory note or margin account used quarterly to enable us to achieve adequate diversification to maintain
our pass-through tax status as a RIC. Although we believe the Fund&rsquo;s liquidity is sufficient for our operating expenses for
the next twelve months, we could be wrong. If we are wrong, we would have to obtain capital from other sources to pay Fund expenses,
which could involve selling one or more of our portfolio holdings at an inopportune time and at a price that may be less than would
be received if such holding were sold in a more competitive and orderly manner.</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">The costs of borrowing money may exceed
the income from the portfolio securities we purchase with the borrowed money. We will suffer a decline in net asset value if the
investment performance of the additional securities purchased with borrowed money fails to cover their cost to the Fund (including
any interest paid on the money borrowed). A decline in net asset value could affect our ability to make distributions on our common
stock. Our failure to distribute a sufficient portion of our net investment income and net realized capital gains could result
in a loss of pass-through tax status or subject us to a 4% excise tax. If the asset coverage for debt securities issued by the
Fund declines to less than 200% (as a result of market fluctuations or otherwise), we may be required to sell a portion of our
investments when it is disadvantageous to do so. See &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and
Results of Operations.&rdquo;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our net assets have declined substantially
since 2009 and we have had net investment losses in four out of the past five years.</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-indent: 24.5pt">Our net assets have declined from $50.9
million as of December 31, 2009 to $33.2 million as of December 31, 2013. Moreover, we have had net investment losses in four out
of the past five years, with a net investment loss of $3.1 million for the year ended December 31, 2013. We cannot assure you that
we will be able to increase our net assets or generate net investment income. If we fail to increase the Fund&rsquo;s net assets
or generate net investment income, such failure will likely have a material adverse effect upon the Fund, its results of operation,
and its financial condition. You could lose all or a substantial amount of your investment in the Fund as a result.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We may not be able to recommence
our managed distribution policy and you might not receive dividends on your shares.</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-indent: 24.5pt">On March 24, 2009, we announced a suspension
of our managed distribution policy and payment of quarterly dividends for an indefinite period, following the distribution of the
first quarter 2009 dividend paid on March 30, 2009. As originally implemented, the policy provided for quarterly dividends at an
annualized rate equal to 10% of the Fund&rsquo;s market value per share as at the end of the preceding calendar year. We subsequently
undertook certain changes in our Board and Management. These changes have been pursued, in part, with the objective of increasing
the number of attractive investment opportunities to us and revising our investment strategy to include more recurrent cash income
producing investments, all of which could ultimately result in the resumption of our managed distribution policy at some time in
the future. The implementation of these revisions to our investment strategy and the recurrent generation of cash income from our
investments, however, cannot be guaranteed. If we were unable to resume our managed distribution policy and were further unable
to profitably sell or otherwise dispose of our portfolio company investments, you might not receive dividends on your shares.<B><I>
</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We operate in a highly competitive
market for investment opportunities</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-indent: 24.5pt">We compete with a large number of private
equity funds and mezzanine funds, investment banks and other equity and non-equity based investment funds, investment entities,
foreign investors and individuals and other sources of financing, including traditional financial services companies such as commercial
banks. In recent years, the number of investment vehicles seeking small capitalization investments has increased dramatically.
Many of our competitors are substantially larger and have considerably greater financial resources than we do, and some may be
subject to different and frequently less stringent regulation. As our portfolio size increases, we expect that some of our investments
will be larger. We believe that we will face increased competition to participate in these larger transactions. These competitors
may have a lower cost of funds and many have access to funding sources that are not available to us. In addition, some of our competitors
may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments
and establish more relationships and build their</P>


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<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">market shares. As a result of this competition, we may not
be able to take advantage of attractive investment opportunities from time to time. We cannot assure you that the competitive pressures
we face will not have a material adverse effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our investments in foreign securities
may involve significant risks in addition to the risks inherent in U.S. investments.</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-indent: 24.5pt">Our investment strategy contemplates
that a portion of our investments may be made in securities of foreign companies, such as our holdings in OPG. Investing in foreign
companies may expose us to additional risks not typically associated with investing in U.S. companies. These risks may include
fluctuations in foreign currency values, changes in exchange control regulations, political and social instability, expropriation,
imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States,
higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty
in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.</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">Although most of our investments are
denominated in U.S. dollars, any investments that are denominated in a foreign currency are subject to the risk that the value
of a particular currency may change in relation to one or more other currencies. Among the factors that may affect currency values
are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies,
long-term opportunities for investment and capital appreciation and political developments. We may employ hedging techniques to
minimize these risks, but we can offer no assurance that we will, in fact, hedge currency risk or that, if we do, such strategies
will be effective.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>An economic downturn could affect
our operating results.</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-indent: 24.5pt">An economic downturn may adversely affect
companies having an enterprise value varying from $5 to $75 million, which are our primary market for investments. During periods
of volatile economic conditions such as presently exists generally in the United States, these companies often experience decreased
revenues, financial losses, difficulty in obtaining access to financing and increased funding costs. During such periods, these
companies also may have difficulty expanding their businesses and operations and may be unable to meet their debt service obligations
or other expenses as they become due. Any of the foregoing developments could cause the value of our investments in these companies
to decline. In addition, during periods of adverse economic conditions, we may have difficulty accessing financial markets, which
could make it more difficult or impossible for us to obtain funding for additional investments. Any of these events could have
a material adverse effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We may experience fluctuations
in our quarterly results.</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-indent: 24.5pt">We may experience fluctuations in our
quarterly operating results due to a number of factors, including variations in, and the timing of, the recognition of realized
and unrealized gains or losses, the degree to which we encounter competition in our markets, the ability to find and close suitable
investments and general economic conditions. The volatility of our results is exacerbated by our relatively small number of investments.
As a result of these factors, you should not rely on our results for any period as being indicative of performance in future periods.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>The due diligence process that
we undertake in connection with our investments may not reveal all facts that may be relevant in connection with an investment.</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-indent: 24.5pt">Before making our investments, we conduct
due diligence that we deem reasonable and appropriate based on the facts and circumstances applicable to each investment. The objective
of the due diligence process is to identify attractive investment opportunities based on the facts and circumstances surrounding
an investment and to prepare a framework that may be used from the date of an acquisition to drive operational achievement and
value creation. When conducting due diligence, we evaluate a number of important business, financial, tax, accounting, environmental
and legal issues in determining whether or not to proceed with an investment. Our due diligence review with respect to a potential
portfolio company typically includes, but is not limited to, a review of historical and prospective financial information including
audits and budgets, on-site visits and interviews with management, employees, customers and vendors, a review of business plans
and an analysis of the consistency of operations with those plans, and other research relating to the company, management, industry,
markets, products and services, and competitors. Outside consultants, legal advisers, accountants and investment banks are expected
to be involved in the due diligence process in varying degrees depending on the type of investment. Nevertheless, when conducting
due diligence and making an assessment regarding an investment, we are required to rely on resources available to us, including
information provided by the portfolio company and, in some circumstances, third party investigations. The due diligence process
may at times be subjective, including with respect to newly organized companies for which only limited information is available.
Accordingly, we cannot assure you that the due diligence investigation that we will carry out with respect to any investment opportunity
will reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity. We also
cannot assure you that such an investigation will result in an investment being successful.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>Risks Related to Our Business and Structure</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our ability to invest in private
companies may be limited in certain circumstances.</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-indent: 24.5pt">If we are to maintain our status as
a BDC, we must not acquire any assets other than &ldquo;qualifying assets&rdquo; unless, at the time of and after giving effect
to such acquisition, at least 70% of our total assets are qualifying assets. A principal category of qualifying assets relevant
to our business is securities purchased in transactions not involving any public offer from issuers that are eligible portfolio
companies under the 1940 Act. Investments in companies organized outside of the United States or having a principal place of business
outside of the United States are not eligible portfolio companies.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Any failure on our part to maintain
the Fund&rsquo;s status as a BDC could reduce our operating flexibility.</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-indent: 24.5pt">If we do not maintain the Fund&rsquo;s
status as a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would subject us to substantially
more regulatory restrictions under the 1940 Act. This could impose tighter limitations on Equus in terms of the use of leverage
and transactions with affiliated entities. Such developments could correspondingly decrease our operating flexibility.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>We may not continue to qualify
as a RIC under the Code. </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-indent: 24.5pt">To remain entitled to the tax benefits
accorded to RICs under the Code, we must meet certain income source, asset diversification and annual distribution requirements.
To qualify as a RIC, we must derive each taxable year at least 90% of our gross income from dividends, interest, payments with
respect to certain securities loans, gains from the sale of stock or other securities or foreign currencies, or other income derived
with respect to our business of investing in such stock or securities or currencies and net income from interests in certain &ldquo;qualified&rdquo;
publicly traded partnerships. The annual distribution requirement for a RIC is satisfied if we distribute at least 90% of our ordinary
net taxable income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, to our
stockholders on an annual basis. As discussed above in &ldquo;Our business is dependent on external financing,&rdquo; we historically
have borrowed funds necessary to make qualifying investments to satisfy the Subchapter M diversification requirements. If we fail
to satisfy such diversification requirements and cease to qualify for conduit tax treatment, we will be subject to income tax on
our income and gains and will not be permitted to deduct distributions paid to stockholders. In addition, our distributions will
be taxable as dividends to the extent paid from earnings and profits. We may also cease to qualify as a RIC, or 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. The loss of our RIC qualification would have a material adverse effect on the total return, if any, obtainable from an investment
in our common stock.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Because we intend to distribute
substantially all of our income and net realized capital gains to our stockholders, we will need additional capital to finance
our growth.</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-indent: 24.5pt">In order to qualify as a RIC, to avoid
payment of excise taxes and to minimize or avoid payment of income taxes, we intend to distribute to our stockholders substantially
all of our net ordinary income and realized net capital gains except for certain net long-term capital gains (which we may retain,
pay applicable income taxes with respect thereto, and elect to treat as deemed distributions to our stockholders). As a BDC, we
are generally required to meet a coverage ratio of total assets to total senior securities, which includes all of our borrowings
and any preferred stock we may issue in the future, of at least 200%. This requirement limits the amount that we may borrow. Because
we will continue to need capital to grow our investment portfolio, this limitation may prevent us from incurring debt and require
us to issue additional equity at a time when it may be disadvantageous to do so. We cannot assure you that debt and equity financing
will be available to us on favorable terms, or at all, and debt financings may be restricted by the terms of any of our outstanding
borrowings. In addition, as a BDC, except for limited situations such as this offering, we are generally not permitted to issue
equity securities priced below net asset value without stockholder approval. If additional funds are not available to us, we could
be forced to curtail or cease new lending and investment activities, and our net asset value could decline.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our Board of Directors may change
our investment objective, operating policies and strategies without prior notice or stockholder approval. </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-indent: 24.5pt">Our Board of Directors has the authority
to modify or waive certain of our operating policies and strategies without prior notice (except as required by the 1940 Act) and
without stockholder approval. However, absent stockholder approval, we may not change the nature of our business so as to cease
to be, or withdraw our election as, a BDC. We cannot predict the effect any changes to our current operating policies and strategies
would have on our business, operating results and value of our stock. Nevertheless, any such effects may adversely affect our business
and impact our ability to make distributions.</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/115% Times New Roman, Times, Serif; margin: 0"><B>Risks Related to Our Operation as a BDC</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our management team has limited
experience managing a BDC.</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-indent: 24.5pt">The 1940 Act imposes numerous constraints
on the operations of BDCs. For example, BDCs are required to invest at least 70% of their total assets in specified types of securities,
primarily in private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and other
high quality debt investments that mature in one year or less. See &ldquo;Regulation as a Business Development Company.&rdquo;
Our management team&rsquo;s limited experience in managing a portfolio of assets under such constraints may hinder our ability
to take advantage of attractive investment opportunities and, as a result, achieve our investment objective. Furthermore, any failure
to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against us and/or
expose us to claims of private litigants. If we do not remain a BDC, we might be regulated as a closed-end investment management
company under the 1940 Act, which would further decrease our operating flexibility and may prevent us from operating our business
as described in this prospectus. See &ldquo;Regulation as a Business Development Company.&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-indent: 24.5pt">Furthermore, our management team&rsquo;s
limited experience in managing a BDC that qualifies as a RIC, which is subject to operating limitations under the Code, may hinder
our ability to invest in certain assets that might otherwise be part of our investment strategy, thus reducing the return on your
investment. For a description of the requirements to maintain RIC pass-through tax treatment, please see &ldquo;Certain U.S. Federal
Income Tax Considerations.&rdquo;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our ability to enter into transactions
with our affiliates is restricted.</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-indent: 24.5pt">We are prohibited under the 1940 Act
from participating in certain transactions with certain of our affiliates without the prior approval of our independent directors
and, in some cases, the SEC. Any person that owns, directly or indirectly, 5% or more of our outstanding voting securities is our
affiliate for purposes of the 1940 Act, and we generally are prohibited from buying or selling any security from or to such affiliate,
absent the prior approval of our independent directors. The 1940 Act also prohibits certain &ldquo;joint&rdquo; transactions with
certain of our affiliates, which could include investments in the same portfolio company (whether at the same or different times),
without prior approval of our independent directors and, in some cases, the SEC. If a person acquires more than 25% of our voting
securities, we are prohibited from buying or selling any security from or to such person or certain of that person&rsquo;s affiliates,
or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC. Similar restrictions limit
our ability to transact business with our officers or directors or their affiliates.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Regulations governing our operation
as a BDC affect our ability to, and the way in which we, raise additional capital.</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-indent: 24.5pt">Our business requires a substantial
amount of additional capital. We may acquire additional capital from the issuance of senior securities or other indebtedness, the
issuance of additional shares of our common stock or from securitization transactions. However, we may not be able to raise additional
capital in the future on favorable terms or at all. We may issue debt securities or preferred securities, which we refer to collectively
as &ldquo;senior securities,&rdquo; and we may borrow money from banks or other financial institutions, up to the maximum amount
permitted by the 1940 Act. The 1940 Act permits us to issue senior securities or incur indebtedness only in amounts such that our
asset coverage, as defined in the 1940 Act, equals at least 200% after such issuance or incurrence. Our ability to pay dividends
or issue additional senior securities would be restricted if our asset coverage ratio were not at least 200%. If the value of our
assets declines, we may be unable to satisfy this test. If that happens, we may be required to liquidate a portion of our investments
and repay a portion of our indebtedness at a time when such sales may be disadvantageous.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27.35pt 0 0; text-indent: 31.7pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 27.35pt 0 0; text-indent: 31.7pt"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
<I>Senior Securities</I>. As a result of issuing senior securities, we would also be exposed to typical risks associated with leverage,
including an increased risk of loss. If we issue preferred securities they would rank &ldquo;senior&rdquo; to common stock in our
capital structure. Preferred stockholders would have separate voting rights and may have rights, preferences or privileges more
favorable than that of our common stockholders. Furthermore, the issuance of preferred securities could have the effect of delaying,
deferring or preventing a transaction or a change of control that might involve a premium price for our common stockholders or
otherwise be in your best interest.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27.35pt 0 0; text-indent: 31.7pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 27.35pt 0 0; text-indent: 31.7pt"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
<I>Additional Common Stock.</I> Our Board of Directors may decide to issue common stock to finance our operations rather than issuing
debt or other senior securities. As a BDC, we are generally not able to issue our common stock at a price below net asset value
without first obtaining required approvals from our stockholders and our independent directors. In any such case, the price at
which our securities are to be issued and sold may not be less than a price, that in the determination of our Board of Directors,
closely approximates the market value of such securities (less any commission or discount). We may also make rights offerings to
our stockholders at prices per share less than the net asset value per share, </FONT></P>


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<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 27.35pt 0 0">subject to the 1940 Act. If we raise additional
funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage
ownership of our stockholders at that time would decrease, and you may experience dilution.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Changes in the laws or regulations
governing our business, or changes in the interpretations thereof, and any failure by us to comply with these laws or regulations,
could negatively affect the profitability of our operations</I></B><I>.</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-indent: 24.5pt">Changes in the laws or regulations or
the interpretations of the laws and regulations that govern BDCs, RICs or non-depository commercial lenders, could significantly
affect our operations and our cost of doing business. We are subject to federal, state and local laws and regulations and are subject
to judicial and administrative decisions that affect our operations, including our loan originations, maximum interest rates, fees
and other charges, disclosures to portfolio companies, the terms of secured transactions, collection and foreclosure procedures
and other trade practices. If these laws, regulations or decisions change, or if we expand our business into jurisdictions that
have adopted more stringent requirements than those in which we currently conduct business, we may have to incur significant expenses
in order to comply or we might have to restrict our operations. In addition, if we do not comply with applicable laws, regulations
and decisions, we may lose licenses needed for the conduct of our business and be subject to civil fines and criminal penalties,
any of which could have a material adverse effect upon our business, results of operations or financial condition.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27.35pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27.35pt 0 0"><A NAME="a_004"></A><B>Item 1B. <I>Unresolved Staff Comments </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-indent: 24.5pt">None.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27.35pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27.35pt 0 0"><A NAME="a_005"></A><B>Item 2. <I>Properties </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-indent: 24.5pt">We do not own any real estate or other
physical properties. Our principal executive offices are located at Eight Greenway Plaza, Suite 930, Houston, Texas 77046. We believe
that these leased office facilities are suitable and adequate for the business as it is contemplated to be conducted.</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"><A NAME="a_006"></A><B>Item 3. <I>Legal Proceedings</I></B></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"><B>Champion Window Arbitration Claim</B>&mdash;In
January 2006, we sold our 31.5% ownership interest in Champion Window, Inc. (&ldquo;Champion&rdquo;), a portfolio company of the
Fund, to Atrium Companies Inc. (&ldquo;Atrium&rdquo;) pursuant to a Stock Purchase Agreement (&ldquo;SPA&rdquo;) dated December
22, 2005. The SPA contained certain limited rights of indemnification for Atrium in connection with its purchase of such ownership
interest.</P>

<P STYLE="font: 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">More than five years after the closing
of the sale of our Champion interest, Atrium filed suit in the District Court of Harris County, Texas against two former officers
of Atrium&rsquo;s subsidiary, Champion, alleging, amongst other matters, that the former officers breached their fiduciary duties
to Champion by hiring undocumented workers. This action was commenced primarily as a result of an investigation by the U.S. Immigration
and Customs Enforcement agency (&ldquo;ICE&rdquo;) into Atrium&rsquo;s hiring practices. On March 12, 2012, to protect its interests,
we filed a Petition in Intervention in the State Court Action seeking a declaration from the Court that Equus did not owe any obligation
to indemnify Atrium or Champion for any penalties, costs or fees associated with the investigation by ICE.</P>

<P STYLE="font: 10pt/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">On March 16, 2012, Atrium and Champion
filed a claim with the American Arbitration Association in Dallas, Texas, against Equus and a number of the other sellers under
the SPA. In September 2013, all of Atrium and Champion&rsquo;s claims including claims against its former officers described above,
were also consolidated in the Arbitration Action.</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">In the Arbitration Action, Atrium and
Champion seek damages arising from Equus&rsquo; and the other sellers&rsquo; indemnity obligations set forth in the SPA. Atrium
claims it is entitled to indemnification under the SPA for costs it has incurred in responding to an ongoing investigation by ICE.
Atrium entered into a Non-Prosecution Agreement with ICE. It appears that one condition of the Non-Prosecution Agreement required
Atrium to pay ICE $2,000,000. Atrium and Champion asserted two counts of breach of contract against Equus, both arising out of
the alleged obligation to indemnify Atrium and Champion pursuant to certain provisions of the SPA. Atrium and Champion also asserted
claims for fraudulent inducement against two former officers and directors of Champion. Through the arbitration, Atrium and Champion
seek to recover an unspecified amount in the form of alleged &ldquo;losses, damages, assessments, penalties, interest, reasonable
attorneys&rsquo; and accountants&rsquo; fees, settlement costs, and other costs and expenses arising directly or indirectly out
of or incident to,&rdquo; the alleged breach of the indemnity provisions in the SPA. As a consequence of their fraudulent inducement
claim against the two former officers and directors, Atrium and Champion alternatively seek equitable rescission of the SPA and
exemplary damages from the two former officers and directors.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>


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<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">Atrium and Champion have yet to specify
the amount of damages they seek from Equus or the other sellers pursuant to the alleged indemnity obligations under the SPA. Atrium
and Champion have disclosed the payment of $2 million to ICE to resolve the investigation and avoid prosecution for their hiring
practices.</P>

<P STYLE="font: 10pt/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">We filed an answer to Atrium and Champion&rsquo;s
claims on December 6, 2013. In our answer, we denied that we owed any indemnity obligations to Atrium or Champion under the SPA
and further denied that the Fund is in any way liable to Atrium or Champion. To the extent Atrium and Champion are able to establish
a right to an indemnity, we will further contest the amount of the claimed indemnity, inasmuch as we believe (among other defenses)
that the indemnity obligation can only exist, if at all, with respect to damages arising as a direct and proximate result of employees
who were hired prior to the closing date of the 2006 sale of Champion and remained in continuous employment after the 2006 sale,
and not to any employee who may have been hired in the six years after the sale.</P>

<P STYLE="font: 10pt/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">While we believe the Atrium claim is
without merit and we intend to continue to vigorously dispute the claim, there is a reasonable possibility of an adverse ruling
which may require the Fund to indemnify Atrium. If Equus is required to indemnify Atrium and Champion, we estimate that such indemnity
obligation could vary from $2.0 million to $3.0 million. Pursuant to the SPA, the indemnification obligation of Equus and the other
sellers is several and not joint, and any such indemnity, however uncertain, would likely be reduced proportionately to our percentage
ownership in Champion at the time of sale, which was 31.5% of Champion&rsquo;s shares outstanding.</P>

<P STYLE="font: 10pt/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>Indemnification Settlement</B>&mdash;Effective
June 13, 2013, the Fund entered into a settlement agreement with Sam Douglass, a former director and executive officer of the Fund,
in respect of a claim for indemnification pursuant to the General Corporation Law of Delaware and an indemnification agreement
entered into by the Fund with Mr. Douglass on May 3, 2001. The settlement agreement provides for the reimbursement to Mr. Douglass
of actual expenses incurred, excluding any fines or penalties, in connection with an enforcement action initiated by the Securities
and Exchange Commission against Mr. Douglass in 2009. The settlement payment of $125,000 was made on June 24, 2013.</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"><B>Lawsuit Settlement</B>&mdash;On August
12, 2012, Paula Douglass filed a lawsuit against the Fund and members of the Board of Directors in the District Court of Harris
County, Texas. Ms. Douglass&rsquo; complaint alleged various causes of action, including minority shareholder oppression, dilution,
and breach of fiduciary duty, and sought unspecified damages and attorney&rsquo;s fees. Effective June 13, 2013, the Fund entered
into a settlement agreement with Ms. Douglass, Sam Douglass, as well as certain trusts controlled by them. Pursuant to the settlement
agreement and in view of the estimated costs of protracted litigation and the associated disruption to the operations of the Fund,
the Board of Directors approved a payment of $402,254, in complete settlement of the lawsuit, as being in the best interests of
the Fund and its shareholders. The settlement payment was made on July 30, 2013. Ms. Douglass filed a motion to dismiss the lawsuit
with prejudice on August 8, 2013.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Lawsuit
Settlement&mdash;</B>On June 9, 2011, RNR Production, Land and Cattle Company, Inc. (&ldquo;RNR&rdquo;) filed a lawsuit
against the Fund and members of the Board of directors in the district Court of Harris County, Texas, seeking
various monetary and equitable remedies, including a motion for a temporary restraining order against the Fund from holding
its annual meeting of shareholders. The Fund prevailed against the motion but agreed to a nuisance settlement with RNR in
exchange for a one-time payment of $200,000 which was paid on September 2, 2011,</P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Lawsuit
Settlement&mdash;</B>On March 10, 2010, American General Life Insurance Company (&ldquo;American General&rdquo;) filed a
complaint against the Fund in the District Court of Harris County, Texas in connection with an office lease entered into
by our former administrator with American General. The complaint by American General sought to hold the Fund liable for
unpaid rent, improvements, and attorneys&rsquo; fees totaling approximately $450,000. We agreed to a settlement with American
General in exchange for a one-time payment of $120,000, which was paid on June 7, 2011.</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">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 27pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_007"></A><B>Item 4. <I>Mine Safety Disclosures</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-indent: 24.5pt">Not applicable.</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>

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<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 27pt 0 0"><A NAME="a_008"></A><B>PART II </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><B><A NAME="a_009"></A>Item 5.<I> Market for Registrant&rsquo;s Common
Equity, Related Stockholder Matters and Issuer Purchases of Equity Securitie</I></B>s</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.3pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.3pt 0 0; text-indent: 24.5pt">Our common stock is listed
on the New York Stock Exchange under the symbol &ldquo;EQS&rdquo;. We had approximately 2,800 stockholders as of December 31, 2013,
766 of whom were registered holders. Registered holders do not include those stockholders whose stock has been issued in street
name. As of December 31, 2013, our net asset value was $3.14 per share of our common stock.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.3pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.3pt 0 0; text-indent: 24.5pt">The following table reflects
the high and low closing sales prices per share of our common stock on the New York Stock Exchange, net asset value, or NAV and
quarterly dividends declared per share for the two years ended December 31, 2013, by quarter:</P>




<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.3pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 22.3pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid">2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q1</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q2</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q3</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q4</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q1</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q2</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q3</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Q4</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%">High</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.40</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.24</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.02</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.07</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.27</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.44</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.46</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.49</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Low</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.86</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.82</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.67</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.05</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>NAV</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.97</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.86</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.78</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.56</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.11</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dividends Declared</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 22.3pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.3pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.3pt 0 0; text-indent: 24.5pt">As a RIC, we are required
to distribute to our stockholders, in a timely manner, at least 90% of our taxable net investment income each year. If we do not
distribute, in a timely manner, 98.2% of our taxable net capital gains and 90% of our taxable net investment income each year (as
well as any portion of the respective 2% balances not distributed in the previous year), we will be subject to a 4% non-deductible
federal excise tax on certain undistributed income of regulated investment companies. Under the 1940 Act, we are not permitted
to pay dividends to stockholders unless we meet certain asset coverage requirements. If taxable net investment income is retained,
we will be subject to federal income and excise taxes. We reserve 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 our stockholders will be able to claim their proportionate share of the federal income
taxes paid by the Fund 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 0 6pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We invest in companies that are believed
to have a high potential for capital appreciation, and we intend to realize the majority of our profits upon the sale of our investments
in portfolio companies. Consequently, most of the companies in which we invest do not have established policies of paying annual
dividends. However, a portion of the investments in portfolio securities held by the Fund consists of interest-bearing subordinated
debt securities or dividend-paying preferred stock.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><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/115% Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_010"></A>Item 6. <I>Selected Financial 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-indent: 24.5pt">The following is a summary of selected
financial data and per share data of the Fund for the five years ended December 31, 2013 (in thousands, except per share data):</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; text-indent: 24.5pt; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2009</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"></TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left">Total investment income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">516</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">539</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,904</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,771</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net investment (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,130</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,653</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(770</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">195</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 realized gain (loss) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(9,795</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,797</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(10,930</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(7</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(15,555</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net change in unrealized appreciation (depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13,267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">177</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,901</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12,073</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12,172</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net increase (decrease) in net&nbsp;&nbsp;assets resulting</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;&nbsp;&nbsp;from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(5,273</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(4,529</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12,850</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(27,532</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Distribution from net investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(195</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Return of capital distribution</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">(726</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Distribution of realized gains</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">48,349</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">33,283</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">44,301</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">53,454</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">81,007</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">33,217</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">32,875</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">38,148</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">38,051</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">50,901</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 cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(19,622</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">18,596</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">16,599</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,361</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Shares outstanding at end of year</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Weighted average shares outstanding, basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,790</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><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="font-weight: bold">Per Share Data:</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><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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&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">2013</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">2012</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">2011</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">2010</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">2009</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net investment (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.30</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.25</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.35</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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="text-align: left">Net realized loss of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.93</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.27</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.09</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">(1.77</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net change in unrealized appreciation (depreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.26</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.99</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.36</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.38</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;Net increase (decrease) in net amounts resulting from</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;&nbsp;&nbsp;operations per share, basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.03</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.50</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3.13</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Return of capital distribution</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net asset value (including unrealized appreciation (depreciation))</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.74</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; text-indent: 24.5pt; color: Red"></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"><A NAME="a_011"></A><B>Item 7.<I> Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations </I></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 22.5pt 0 0"><B>Overview </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-indent: 24.5pt">Equus is a BDC that provides financing
solutions for privately held middle market and small capitalization companies. We began operations in 1983 and have been a publicly
traded closed-end fund since 1991. Our investment objective is to seek 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-indent: 24.5pt">As a BDC, we are required to comply
with certain regulatory requirements. For instance, we generally have to invest at least 70% of the Fund&rsquo;s total assets in
&ldquo;qualifying assets,&rdquo; including securities of private U.S. companies, certain public U.S. companies with a total market
capitalization not in excess of $250 million, cash, cash equivalents, U.S. government securities and short-term high-quality debt
investments. Equus is a RIC under Subchapter M of the Code. To qualify as a RIC, we must meet certain source of income and asset
diversification requirements. If we comply with the provisions of Subchapter M, the Fund generally does not have to pay corporate-level
income taxes on any income that distributed to our stockholders.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 24.5pt"><I>Investment Income</I>.
We generate investment income from interest payable on the debt securities that the Fund holds, dividends received on equity interests
in our portfolio companies and capital gains, if any, realized upon sales of equity and, to a lesser extent, debt securities in
the investment portfolio. Our equity investments may include shares of common and </P>


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<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 22.5pt 0 0">preferred stock, membership interests in limited
liability companies and warrants to purchase additional equity interests. These equity securities may or may not pay dividends,
and the exercise prices of warrants that we acquire in connection with debt investments, if any, vary by investment. Our debt investments
in portfolio companies may be in the form of senior or subordinated loans and may be unsecured or
have a first or second lien on some or all of the assets of the borrower. Our loans typically have a term of three to seven years
and bear interest at fixed or floating rates. Interest on these debt securities is generally payable either quarterly or semiannually.
Some promissory notes held by the Fund provide that a portfolio company may elect to pay interest in cash or provide that discount
interest may accrete in the form of original issue discount or payment-in-kind (PIK) over the life of the notes by adding unpaid
interest amounts to the principal balance. Amortization of principal on our debt investments is generally deferred for several
years from the date of initial investment. The principal amount of these debt securities and any accrued but unpaid interest generally
will become due at maturity. We also earn interest income at market rates on investments in short-term marketable securities. From
time to time, we generate income from time to time in the form of commitment, origination and structuring fees in connection with
our investments. We recognize all such fees when earned.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Expenses. </I>Currently,
our primary operating expenses include director fees and expenses, professional fees, compensation expense, and general
and administrative fees. During 2013, we incurred non-recurring expenses, including settlement expenses of $0.5 million, and
legal expenses of $0.2 million related to the various legal proceedings described in Item 3 above.
During 2012, we did not incur any non-recurring expenses. During 2011, we incurred non-recurring expenses, including
settlement expenses, related to various legal proceedings of $0.3 million, as well as offering costs of $0.4 million.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Operating Activities.</I> We use
cash to make new investments and follow-on investments in our existing portfolio companies. We record these investments at cost
on the applicable trade date. Realized gains or losses are computed using the specific identification method. On an ongoing basis,
we carry our investments in our financial statements at fair value, as determined by our board of directors. See &ldquo;&mdash;Critical
Accounting Policies &ndash; Valuation of Investments&rdquo; below. As of December 31, 2013, we had invested 40.7% of our net assets
in securities of portfolio companies that constituted qualifying investments under the 1940 Act. At that time, we had invested
1.3% by value in shares of common stock, 24.7% in membership interests in limited liability companies, and 14.7% in various debt
instruments.</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">Under certain circumstances, we make
follow-on investments in some of our portfolio companies. As of December 31, 2013, we had no outstanding commitments to our portfolio
company investments.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Financing Activities.</I> From time
to time, we use leverage to finance a portion of our investments. We then repay such debt from the sale of portfolio securities.
Under the 1940 Act, we have the ability to borrow funds and issue debt securities or preferred stock that are referred to as senior
securities, subject to certain restrictions including an overall limitation on the amount of outstanding debt, or leverage, relative
to equity of 1:1. Because of the nature and size of our portfolio investments, we periodically borrow funds to make qualifying
investments in order to maintain our qualification as a RIC. During 2013 and 2012, we borrowed such funds by accessing a margin
account with a securities brokerage firm. We invest the proceeds of these margin loans in high-quality securities such as U.S.
Treasury securities until they are repaid. We refer to these high-quality investments as &ldquo;restricted assets&rdquo; because
they are not generally available for investment in portfolio companies under the terms of borrowing. If, in the future, we cannot
borrow funds to make such qualifying investments at the end of any future quarter, we may not qualify as a RIC and would become
subject to corporate-level income tax on our net investment income and realized capital gains, if any. In addition, our distributions
to stockholders would be taxable as ordinary dividends to the extent paid from earnings and profits. See &ldquo;Federal Income
Tax Considerations.&rdquo;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Distributions</I>. On March 24, 2009,
we announced that we suspended our managed distribution policy and payment of quarterly distributions for an indefinite period,
following the distribution of the first quarter dividend to be paid on March 30, 2009. As originally implemented, the policy provided
for quarterly dividends at an annualized rate equal to 10% of the Fund&rsquo;s market value per share as at the end of the preceding
calendar year. 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: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Possible Share Repurchase.</I> As
a closed-end BDC, our shares of common stock are not redeemable at the option of stockholders, and our shares currently trade at
a discount to their net asset value. Our Board has determined that it would be in the best interests of our stockholders to reduce
or eliminate this market value discount. Accordingly, we have been authorized to, and may from time to time, repurchase shares
of our outstanding common stock (including by means of tender offers or privately negotiated transactions) in an effort to reduce
or eliminate this market discount or to increase the net asset value of our shares. We are not required to undertake any such share
repurchases, nor do we anticipate taking such action in 2014.</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 22.5pt 0 0"></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-indent: 24.5pt"></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-indent: 24.5pt">Our financial statements are based on
the selection and application of significant accounting policies, which require management to make significant estimates and assumptions.
We believe that the following are some of the more critical judgment areas in the application of our accounting policies that currently
affect our financial condition and results of operations.</P>

<P STYLE="font: 10pt/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>Valuation of Investments</B>&mdash;
Portfolio investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the
determination of net assets. Valuations of portfolio securities are performed in accordance with GAAP and the financial reporting
policies of the Securities and Exchange Commission (&ldquo;SEC&rdquo;). The applicable methods prescribed by such principles and
policies are described below:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Publicly-traded portfolio securities</I>&mdash;Investments
in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
the valuation date.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Privately-held portfolio securities</I>&mdash;The
fair value of investments for which no market exists is determined on the basis of procedures established in good faith by our
Board of Directors. As a general principle, the current &ldquo;fair value&rdquo; of an investment would be the amount we might
reasonably expect to receive for it upon its current sale, in an orderly manner. Appraisal valuations are necessarily subjective
and the estimated values arrived at by the Fund may differ materially from amounts actually received upon the disposition of portfolio
securities.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Thinly Traded and Over-the-Counter
Securities</I>&mdash;Generally, we value securities that are traded in the over-the-counter market or on a stock exchange at the
average of the prevailing bid and ask prices on the date of the relevant period end. However, we may apply a discount to the market
value of restricted or thinly traded public securities to reflect the impact that these restrictions have on the value of these
securities. We review factors, including the trading volume, total securities outstanding and our percentage ownership of securities
to determine whether the trading levels are active (Level 1) or inactive (Level 2) or unobservable (Level 3). As of December 31,
2013, these securities, consisting of our holdings in the OPG Notes, represented 11% of our investments in portfolio securities.
We utilized independent pricing services with certain of our fair value estimates. To corroborate &ldquo;bid/ask&rdquo; quotes
from independent pricing services, we perform a market-yield approach to validate prices obtained or obtain other evidence.</P>

<P STYLE="font: 10pt/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">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 12 month period which would indicate a material effect on the portfolio company (such as results of operations
or changes in general market conditions). After the 12 month period, or if material events have occurred within the twelve month
period, we consider a two step process when appraising investments of privately held companies. The first step involves determining
the enterprise value of the portfolio company. During this step, we consider three different valuation approaches: a market approach,
an income approach, and an asset approach. The particular facts and circumstances of each portfolio company determine which approach,
or combination of approaches, will be utilized. The second step when appraising equity investments of privately held companies
involves allocating value to the various debt and equity securities of the company. We allocate value to these securities based
on their relative priorities. For equity securities such as warrants, we may also incorporate alternative methodologies including
the Black-Scholes Option Pricing Model.</P>

<P STYLE="font: 10pt/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"><B>Market approach</B> &ndash; The market
approach typically employed by Management calculates the enterprise value of a company as a multiple of earnings before interest,
taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;) generated by the company for the trailing twelve month period. Adjustments
to the company&rsquo;s EBITDA, including those for non-recurring items, may be considered. Multiples are estimated based on current
market conditions and past experience in the private company marketplace and are subjective in nature. We will apply liquidity
and other discounts we deem appropriate to equity valuations where applicable. We may also use, when available, third-party transactions
in a portfolio company&rsquo;s securities as the basis of valuation (the &ldquo;private market method&rdquo;). The private market
method will be used only with respect to completed transactions or firm offers made by sophisticated, independent investors.</P>

<P STYLE="font: 10pt/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"><B>Income approach</B> &ndash; The income
approach typically utilized by Management calculates the enterprise value of a company utilizing a discounted cash flow model incorporating
projected future cash flows of the company. Projected future cash flows consider the historical performance of the company as well
as current and projected market participant performance. Discount rates are estimated based on current market conditions and past
experience in the private company marketplace and are subjective in nature. We will apply liquidity and other discounts we deem
appropriate to equity valuations where applicable.</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"><B>Asset approach</B> &ndash; We consider
the asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances indicative
of a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow to meet the
principal and interest payments on its indebtedness; 2) is not successful in refinancing its</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/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: 0">debt upon maturity; 3) we believe
the credit quality of a loan has deteriorated due to changes in the business and underlying asset or market conditions may result
in the company&rsquo;s inability to meet future obligations; or 4) the portfolio company&rsquo;s reorganization or bankruptcy.
Consideration is also given as to whether a liquidation event would be orderly or forced.</P>

<P STYLE="font: 10pt/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">Our general intent is to hold our loans
to maturity when appraising our privately held debt investments. As such, we believe that the fair value will not exceed the cost
of the investment. However, in addition to the previously described analysis involving allocation of value to the debt instrument,
we perform a yield analysis to determine if a debt security has been impaired.</P>

<P STYLE="font: 10pt/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">Certificates of deposit purchased by
the Fund generally will be valued at their face value, plus interest accrued to the date of valuation.</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">The Audit Committee of the Board of
Directors may engage independent, third-party valuation firms to conduct independent appraisals and review Management&rsquo;s preliminary
valuations of each privately-held investment that the Fund (a) has held for more than one year and (b) holds on its books at a
fair value of at least $2.0 million in order to make their own independent assessment. Any third-party valuation data would be
considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair values for all
privately-held securities based on all relevant factors to the Board of Directors for final approval.</P>

<P STYLE="font: 10pt/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">Because of the inherent uncertainty
of the valuation of portfolio securities which do not have readily ascertainable market values, amounting to $13.3 million and
$9.0 million as of December 31, 2013 and 2012, respectively, our fair value determinations may materially differ from the values
that would have been used had a ready market existed for the securities. As of December 31, 2013, one of our portfolio investments,
consisting of 73,666 ordinary shares of OPG, was publicly listed on the NYSE Euronext Paris Exchange, along with &euro;1,200,790
in newly-issued 6-year OPG Notes. However, there had been no recent trading activity in the OPG Notes.</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">On a daily basis, we adjust our net
asset value for the changes in the value of our publicly held securities, if applicable, and material changes in the value of private
securities, generally determined on a quarterly basis or as announced in a press release, and reports those amounts to Lipper Analytical
Services, Inc. Weekly and daily net asset values appear in various publications, including <I>Barron&rsquo;s</I> and <I>The Wall
Street Journal</I>.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Federal Income Taxes </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-indent: 24.5pt">We intend to comply with the requirements
of the Code necessary for us to qualify as a RIC. So long as we comply with these requirements, we generally will not be subject
to corporate-level federal income taxes on otherwise taxable income (including net realized capital gains) distributed to stockholders.
Therefore, we did not record a provision for federal income taxes in our financial statements. As of December 31, 2013, we had
a capital loss carry forward of $39.1 million which may be used to offset future capital gains. We may borrow money from time to
time to maintain our status as a RIC under the Code. See &ldquo;&mdash;Overview &ndash; Financing Activities&rdquo; above.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Interest Income Recognition</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-indent: 24.5pt">We record interest income, adjusted
for amortization of premium and accretion of discount, on an accrual basis to the extent that we expect to collect such amounts.
We stop accruing interest on investments when we determine that interest is no longer collectible. We may also impair the accrued
interest when we determine that all or a portion of the current accrual is uncollectible. If we receive any cash after determining
that interest is no longer collectible, we treat such cash as payment on the principal balance until the entire principal balance
has been repaid, before we recognize any additional interest income. We accrete or amortize discounts and premiums on securities
purchased over the life of the respective security using the effective yield method. The amortized cost of investments represents
the original cost adjusted for the accretion of discount and/or amortization of premium on debt securities.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Payment in Kind Interest</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-indent: 24.5pt">We have loans in our portfolio that
may pay PIK interest. We add PIK interest, if any, computed at the contractual rate specified in each loan agreement, to the principal
balance of the loan and recorded as interest income. To maintain the Fund&rsquo;s status as a RIC, we must pay out to our stockholders
this non-cash source of income in the form of dividends even if we have not yet collected any cash in respect of such investments.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</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-indent: 27.5pt"></P>


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<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"><B><I>Recent Accounting Pronouncements</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In June 2013, the
Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued Accounting Standards Update (&ldquo;ASU&rdquo;) 2013-08,
Financial Services&mdash;Investment Companies. ASU 2013-08 provides clarifying guidance to determine if an entity qualifies
as an investment company. ASU 2013-08 also requires an investment company to measure non-controlling interests in other
investment companies at fair value. The following disclosures will also be required upon adoption of ASU 2013-08: (i) whether
an entity is an investment company and is applying the accounting and reporting guidance for investment companies; (ii)
information about changes, if any, in an entity&rsquo;s status as an investment company; and (iii) information about
financial support provided or contractually required to be provided by an investment company to any of its investees. The
requirements of ASU 2013-08 are effective for the Fund beginning in the first quarter of 2014. We are currently evaluating
the impact, if any, that these updates will have on  our financial condition or results of operations.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Current Market Conditions</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-indent: 24.5pt">Overall economic conditions in the United
States have improved, albeit marginally. However, the economic recovery has been hampered by slower growth and persistent high
unemployment levels. The U.S. Congressional Budget Office is forecasting higher growth in 2014 (3.1%), with a projected unemployment
rate exceeding 6.0% until 2017.</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">Further, the banking industry continues
to experience additional bank failures as regulators continue to impose strict capital requirements. Additionally, future economic
expansion and business investment is threatened by perceptions of higher taxes and healthcare costs, as well as the high levels
of government deficit spending.</P>

<P STYLE="font: 10pt/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">Market conditions for business transactions
including mergers and acquisitions and private equity investments improved significantly in 2013 compared with previous years,
as corporations have been deleveraging and are holding significant amounts of cash and many have begun to focus on acquisitions
as part of future growth plans. Private equity firms as a group enjoyed more success in 2013 in monetizing their investments through
sales and public listings.</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">During 2013, our net asset value increased
from $3.11 per share to $3.14 per share, an increase of 1.0%. As of December 31, 2013, our common stock is trading at a 36.6% discount
to our net asset 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-indent: 24.5pt">Over the past several years, we have
executed certain initiatives to enhance liquidity, achieve a lower operational cost structure, provide more assistance to portfolio
companies and realize certain of our portfolio investments. Specifically, we changed the composition of our Board of Directors
and Management, terminated certain of our follow-on investments, internalized the management of the Fund, suspended our managed
distribution policy, modified our investment strategy to pursue shorter term liquidation opportunities, pursued non-cash investment
opportunities, and sold certain of our legacy and underperforming investment holdings. We believe these actions continue to be
necessary to protect capital and liquidity during this turbulent economic period in order to preserve and enhance shareholder value.
Because our Management is internalized, certain of our expenses should not increase commensurate with an increase in the size of
the Fund and, therefore, we expect to achieve efficiencies in our cost structure if we are able to grow the Fund.</P>

<P STYLE="font: 10pt/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>Liquidity and Capital Resources</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-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-indent: 24.5pt">We are currently 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 effect future valuations
of portfolio securities. We believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements
and to finance routine capital expenditures through the next twelve months.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2013</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-indent: 24.5pt">As of December 31, 2013, we had total
assets of $48.3 million, of which $13.5 million were invested in portfolio investments and $19.1 million were invested in cash
and cash equivalents. Among our portfolio investments, $4.9 million (at fair value) or 14.7% of net asset value were in the form
of notes receivable from portfolio companies as of December 31, 2013. We continue to impair accrued interest for certain promissory
notes issued by Spectrum, having a fair value of $2.9 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-indent: 24.5pt">As of December 31, 2013, we also had
$15.2 million of restricted cash and cash equivalents, 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, $15.0 million was invested in U.S. Treasury bills
and $0.2 million represented a required 1% brokerage margin deposit. </P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0">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, 2014
and we subsequently repaid this margin loan. The margin interest was paid on January 22, 2014.</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"><I>Operating Activities.</I> We
used $19.6 million in cash for operating activities in 2013, including $15.1 million for the purchase of U.S. Treasury bills.
In 2013, we made investments in portfolio companies of $0.8 million and paid fees to our advisers, directors, banks and
others of $2.6 million, while realizing a loss of $9.8 million from the disposition of portfolio securities. During 2013, we
incurred non-recurring expenses including settlement expenses of $0.5 million and legal expenses of $0.2 million related to the
various legal proceedings described in Item 3.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Financing Activities.</I> We provided
$15.0 million in cash from financing activities for 2013. We did not declare any dividends in 2013.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2012</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-indent: 24.5pt">As of December 31, 2012, we had total
assets of $33.3 million, of which $9.2 million were invested in portfolio investments and $23.7 million were invested in cash and
cash equivalents. Among our portfolio investments, $1.8 million (at fair value) or 5.6% of net asset value were in the form of
notes receivable from portfolio companies as of December 31, 2012. We continue to impair certain promissory notes issued by Spectrum,
having a fair value of $0.4 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-indent: 24.5pt">As of December 31, 2012, we had no RIC
borrowings or restricted cash.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Operating Activities.</I> We provided
$12.9 million in cash for operating activities in 2012. In 2012, we made investments in portfolio companies of $6.9 million and
paid fees to our advisers, directors, banks and others of $3.0 million, while realizing a loss of $2.8 million from the disposition
of portfolio securities.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Financing Activities.</I> We used
$6.0 million in cash from financing activities for 2012. We did not declare any dividends in 2012.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2011</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-indent: 24.5pt">As of December 31, 2011, we had total
assets of $44.3 million, of which $19.2 million were invested in portfolio investments and $16.8 million were invested in cash
and cash equivalents. Among our portfolio investments, $14.1 million (at fair value) or 37.1% of net asset value were in the form
of notes receivable from portfolio companies as of December 31, 2011. We impaired certain promissory notes issued by Spectrum,
having a fair value of $0.3 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-indent: 24.5pt">As of December 31, 2011, we also had
$6.1 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. Of this amount, $6.0 million was invested in U.S.
Treasury bills and $0.1 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 3, 2012 and we subsequently repaid this margin.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Operating Activities.</I> We provided
$18.6 million in cash for operating activities in 2011. In 2011, we made investments in portfolio companies of $0.6 million and
incurred compensation expense and paid fees to our consultants, legal counsel, directors, banks and others of $3.1 million, while
realizing a loss of $10.9 million from the disposition of portfolio securities. During 2011, we incurred non-recurring expenses
including settlement expenses, related to the various legal proceedings described in Item 3 above of $0.3 million and offering
costs of $0.4 million.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Financing Activities.</I> We used
$9.2 million in cash from financing activities for 2011. We issued 1,700,000 additional shares of our common stock at an effective
price of $4.29 per share. On April 27, 2011, we announced that we had entered into two separate transactions involving the purchase
of an aggregate of 11,408 4% bonds due May 2012 (&ldquo;Bonds&rdquo;) issued by Orco Germany S.A., a commercial and multi-family
residential real estate holding company and developer based in Berlin. The consideration provided to the selling bondholders consisted
of an aggregate of 1,700,000 newly issued shares of common stock of the Fund. These shares are unregistered under the Securities
Act of 1933. We received 8,890 of the Bonds on April 27, 2011 and, on June 23, 2011, we received $1.6 million in cash in lieu of
the 2,518 Bonds which were not delivered as required. We incurred a quarter-end margin loan in the amount of $6.0 million to maintain
the diversification requirement applicable to a RIC.</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"></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"><B>Results of Operations </B></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>Investment Income and Expense </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2013 as
compared to Year Ended December 31, 2012</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-indent: 24.5pt">Total income from portfolio
securities decreased $0.5 million in 2013 due to the impairment of the interest receivable from Spectrum and the decline in
interest-bearing 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-indent: 24.5pt">Professional fees decreased to
$1.0 from $1.3 million  during 2012. These decreases were due to the decreases in consulting fees and legal fees associated
with various legal proceedings.</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">Compensation expense was $0.9 million
for 2013 and $1.1 million for 2012, respectively. The $0.2 million decrease was largely due to a decrease in compensation paid
to existing personnel.</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">Settlement expense was $0.5 million
for 2013 related to the various legal proceedings described in Item 3.</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">As a result of the factors described
above, net investment loss after expenses was $3.1 million for 2013 as compared to a net investment loss of $2.7 million for 2012.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2012 as
compared to Year Ended December 31, 2011</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-indent: 24.5pt">Total income from portfolio securities
remained relatively unchanged from 2011. However, there was a significant decline in interest bearing promissory notes during 2012,
with the sale of our interests in ConGlobal Industries Holding, Inc. (&ldquo;ConGlobal&rdquo;) and Sovereign Business Forms, Inc.
(&ldquo;Sovereign&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-indent: 24.5pt">Professional fees increased to $1.3
million for 2012 from $1.2 million for 2011. These increases were due to the increases in legal fees associated with various legal
proceedings.</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">Compensation expense was $1.1 million
for 2012 and $1.3 million in 2011, respectively. The $0.2 million decrease was largely due to the salary and accrued bonus for
our Chief Investment Officer, whose position was vacated in November 2011.</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">As a result of the factors described
above, net investment loss after expenses was $2.7 million for 2012 as compared to a net investment loss of $3.5 million for 2011.</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>Summary of Portfolio Investment Activity</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2013</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-indent: 24.5pt">During the year ended December 31,
2013, we had investment activity of $0.8 million in two portfolio companies. We capitalized consulting expenses of $0.3 million
relating to Spectrum. We made a short-term working capital loan of $0.5 million to Security Monitor Holdings, LLC (&ldquo;SMH&rdquo;).
SMH is a company which specializes in managing and improving operations of distressed companies.</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">The following table includes significant
investment activity during the year ended December 31, 2013 (in thousands):</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: right">&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">New Investments</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">Existing Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">Portfolio Company</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">Cash</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">Non-Cash</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">Follow-On</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">PIK</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD 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><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: 35%; text-align: left">Security Monitor Holdings, Inc.</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</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: 9%; text-align: right">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-bottom: 1pt">Spectrum Management, LLC</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">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">&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">310</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: 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></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">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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">310</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">810</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"></TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2012</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-indent: 24.5pt">During the year ended December 31,
2012, we received $6.4 million from the disposal of the Fund&rsquo;s 55% fully-diluted equity interest in Sovereign, together
with the Fund&rsquo;s promissory note and all interest as accrued interest. We also received $5.3 million from the disposal of
the Fund&rsquo;s 34.2% fully equity interest in ConGlobal, together with the Fund&rsquo;s promissory note and all interest as
accrued interest.</P>

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<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">On May 7, 2012, holders of 72.5% of
all OG bonds approved a joint restructuring of certain bond debt of OG and its parent company, OPG. Pursuant to such restructuring,
approximately 84.5% of the Orco Germany bonds held by each bondholder were converted into <I>Obligations Convertibles en Actions
</I>(&ldquo;OCA&rdquo;) on May 9, 2012. The OCA were converted into an aggregate of 26,209,613 OPG shares which were delivered
in two tranches. The first tranche, consisting of 18,361,540 OPG shares, was delivered in May 2012, of which the Fund received
1,102,455 OPG shares. The second tranche, consisting of 7,848,073 OPG shares, was received in October 2012. Also in October, the
remaining 15.5% of the Orco Germany bonds held by each bondholder was converted into new 6-year OPG Notes with a face value of
&euro;20.0 million bearing cash and PIK interest each at 5% per annum, which interest percentages may be reduced over time upon
timely repayments of principal tranches during a four-year period commencing in 2015. Of the total amount of OPG Notes issued,
Equus received OPG Notes in the face amount of &euro;1,200,790. On October 15, 2012, we announced the sale of 1,500,000 of our
1,573,666 OPG shares, where we received net cash proceeds of &euro;3.8 million [$4.9 million]. As of December 31, 2012, we held
73,666 OPG shares, and &euro;1,200,790 OPG Notes.</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">During the year ended December 31, 2012,
we had investment activity of $7.2 million in three portfolio companies. We made a follow-on investment of $6.8 million in Equus
Energy, LLC. The restructuring of the Orco Germany bonds noted above resulted in the capitalization of $0.3 million accrued interest
received in the form of additional portfolio securities (PIK). We capitalized legal and consulting expenses of $0.1 million relating
to Spectrum.</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">The following table includes significant
investment activity during the year ended December 31, 2012 (in thousands):</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="15" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Investment Activity</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>New Investments</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Existing Investments</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Cash</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Non-Cash</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Follow-On</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>PIK</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">Equus Energy, LLC</font></td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,800</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,800</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left; width: 35%"><font style="font: 9pt Times New Roman, Times, Serif">Orco Property Group S.A.</font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">301</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">301</font></td>
    <td style="width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">Spectrum Management, LLC</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">139</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">139</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,939</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">301</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,240</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2011</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-indent: 24.5pt">During the year ended December 31, 2011,
we received $0.4 million from Sovereign in the form of principal payments and a distribution from Equus Media Development Company,
LLC in the amount of $1.0 million. We sold our promissory notes in 1848 Capital Partners, LLC, Big Apple Entertainment Partners,
LLC, and London Bridge Entertainment Partners, Ltd (&ldquo;London Bridge&rdquo;) and certain assets of Riptide Entertainment Partners,
LLC (&ldquo;Riptide&rdquo;) in which we held a 64.67% membership interest. All of these assets were sold to Capital Markets Acquisition
Partners, LLC for a combined price of $10.0 million, with $9.8 million allocated to the promissory notes held by the Fund and $0.2
million to Riptide. We allocated the proceeds to the promissory notes resulting in a realized loss of approximately $0.9 million
at London Bridge. In addition, the monies provided to Riptide were sufficient to satisfy its outstanding liabilities, resulting
in a value of $0. We also received $0.8 million in connection with the sale and redemption of our membership interest in RP&amp;C
International Investments LLC (&ldquo;RP&amp;C&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-indent: 24.5pt">During the year ended December 31, 2011,
we had investment activity of $3.7 million in three portfolio companies. We made a follow-on investment of $0.3 million in Spectrum.
On April 27, 2011, we announced that we had entered into two separate transactions involving the purchase of an aggregate of 11,408
4% bonds due May 2012 (&ldquo;Bonds&rdquo;) issued by Orco Germany S.A. a commercial and multi-family residential real estate holding
company and developer based in Berlin. The consideration provided to the selling bondholders consisted of an aggregate of 1,700,000
newly issued shares of common stock of the Fund. These shares are unregistered under the Securities Act of 1933. We received 8,890
of the Bonds on April 27, 2011. On May 9, 2011, one of these agreements was amended and restated to provide for an additional 45
days to deliver 2,518 of the Bonds in exchange for providing to the Fund approximately $1.6 million in cash as security for such
delivery. As the remaining bonds were not delivered by the specified date, the cash collateral became free and clear property of
the Fund on June 23, 2011. On September 30, 2011, we formed Equus Energy, LLC, 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.</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>

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<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">The following table includes significant
investment activity during the year ended December 31, 2011 (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: 10pt Times New Roman, Times, Serif">
<tr>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <TD COLSPAN="15" STYLE="border-bottom: black 1pt solid; font: 9pt/0 Calibri, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><font style="font: 9pt Times New Roman, Times, Serif"><b>Investment Activity</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="padding-bottom: 0; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</td></tr>
<tr>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>New Investments</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Existing Investments</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="padding-bottom: 10pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</td></tr>
<tr>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Cash</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Non-Cash</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Follow-On</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>PIK</b></font></td>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="2" style="vertical-align: bottom; border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td>
    <TD STYLE="padding-bottom: 10pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left; width: 35%"><font style="font: 9pt Times New Roman, Times, Serif">Orco Germany S.A</font></td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">67</font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,016</font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,083</font></td>
    <TD STYLE="width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">Spectrum Management, LLC</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">325</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">325</font></td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">Equus Energy, LLC</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">250</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">250</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">317</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,016</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">325</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,658</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></P>




<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Realized Gains and Losses on Sales of Portfolio Securities
</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2013</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-indent: 24.5pt">During 2013, we realized capital
losses of $9.8 million, including the following significant transactions:</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 CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">Type</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Transaction Type</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">Realized Gain (Loss)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">The Bradshaw Group</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Business products and services</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,795</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Infinia Corporation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">Alternative Energy</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Disposition</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(8,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt; width: 30%">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt; width: 27%">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="font-family: Helv; text-align: left; vertical-align: bottom; width: 10%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Helv; text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt; width: 12%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; width: 13%">(9,795</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; width: 1%">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2012</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-indent: 24.5pt">During 2012, we realized net capital
losses of $2.8 million, including the following significant transactions:</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">Type</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Transaction Type</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">Realized Gain (Loss)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">ConGlobal Industries Holding, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Shipping products and services</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Control</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(4,114</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Sovereign Business Forms, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Business products and services</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Control</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,073</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Orco Property Group</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Real Estate</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,318</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">Various others</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Disposition</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">72</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: right; padding-bottom: 2.5pt; width: 32%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 27%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom; width: 8%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 12%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; width: 13%">(2,797</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; width: 1%">)</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-indent: 24.5pt"><B><I>Year Ended December 31, 2011 </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-indent: 24.5pt">During 2011, we realized net capital
losses of $10.9 million, including the following significant transactions:</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 0 12pt; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">Type</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Transaction Type</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">Realized Gain (Loss)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Riptide Entertainment, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Control</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(10,074</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">London Bridge Entertainment Partners Ltd</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(992</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">RP&amp;C International Investments LLC</TD><TD>&nbsp;</TD>
    <TD>Healthcare</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Affiliate</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">138</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">Various others</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Disposition</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">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 38%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 21%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom; width: 8%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 12%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; width: 13%">(10,930</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; width: 1%">)</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0"><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"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2013</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-indent: 24.5pt">During 2013, we recorded a net
change in unrealized depreciation of $13.3 million, to a net unrealized depreciation of $3.9 million at December 31, 2013.
Such change in depreciation resulted primarily from the following changes:</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="width: 1%; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer
of unrealized depreciation to realized loss of our holdings in The Bradshaw Group (&ldquo;Bradshaw&rdquo;) of $1.8 million in
connection with Bradshaw&rsquo;s sale of all of its assets;</FONT></P>
                                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(ii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer
of unrealized depreciation to realized loss of our holdings in Infinia Corporation (&ldquo;Infinia&rdquo;) of $8.0 million as
a result of the liquidation of Infinia due to bankruptcy proceedings initiated by the company;</FONT></P>
                                                                                    <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"></TD></TR></TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; width: 1%">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; width: 94%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase
in the fair value of Equus Energy of $1.1 million due improved operational results and an increase in proved developed producing
reserves;</FONT></P>
                                                                                    <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in the fair value
                                                                                    of our holdings in Spectrum of $2.5 million due to continued stability in operations resulting in the utilization of a
                                                                                    market                                                                                     approach in determining fair
                                                                                    value, in lieu of an asset approach applying a liquidation analysis used in prior quarters;
                                                                                    and</FONT></P>
                                                                                    <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(v)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in the fair value of our holdings in PalletOne, Inc. (&ldquo;PalletOne&rdquo;) of $0.1 million due to improved operations.</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"></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"><B><I>Year Ended December 31, 2012</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-indent: 24.5pt">During 2012, we recorded a net
change in unrealized depreciation of $0.2 million, to a net unrealized depreciation of $17.2 million at December 31, 2012.
Such change in depreciation resulted primarily from the following changes:</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt/115% Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <TD STYLE="width: 94%; padding-left: 4.4pt; font: 10pt/115% Times New Roman, Times, Serif"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Transfer
of unrealized depreciation to realized loss of our holdings in ConGlobal of $1.6 million upon the divestiture of the investment;</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt/115% Times New Roman, Times, Serif">(ii)</font></td>
    <td style="padding-left: 4.4pt">&nbsp;</td>
    <td style="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer
of unrealized depreciation to realized loss of our holdings in Sovereign of $0.6 million upon the divestiture of the investment;</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iii)</font></td>
    <td style="padding-left: 4.4pt">&nbsp;</td>
    <td style="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
restructuring of the 8,890 Orco Germany bonds resulted in the Fund holding 1,573,666 ordinary shares of OPG and &euro;1,200,790
newly-issued 6-year OPG notes. The capitalization of $0.3 million accrued interest and the subsequent sale of 1.5 million shares
of OPG shares in October 2012 resulted in a decrease in fair value of our holdings in OPG of $1.8 million; and</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iv)</font></td>
    <td style="padding-left: 4.4pt">&nbsp;</td>
    <td style="padding-bottom: 9pt; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Decrease in the fair value of Equus Energy of $0.2 million due to working capital expenditures.</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Year Ended December 31, 2011 </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-indent: 24.5pt">During 2011, we recorded a net
change in unrealized depreciation of $9.9 million, to a net unrealized depreciation of $17.4 million at December 31, 2011.
Such change in depreciation resulted primarily from the following changes:</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-bottom: 6pt; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt/115% Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Decline in fair market value of our holdings in ConGlobal of $2.6 million due to the decline in operating performance;</font></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(ii)</font></td>
    <TD STYLE="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <TD STYLE="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer
of unrealized depreciation to realized depreciation for our holdings in London Bridge of $0.8 million due to the sale of the promissory
note;</FONT>&nbsp;</P>
                                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(iii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase
in the fair market value of our holdings in Orco Germany bonds of $2.7 million due to the difference in the market price of Equus
shares used as consideration for the bonds on the date of acquisition offset by the change in the Euro-USD exchange rate;</FONT></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(iv)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Increase in the fair market value of our holdings in PalletOne of $0.1 million due to steady improvement in operating performance and indications of value from independent third parties;</font></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(v)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized depreciation for our holdings in Riptide of $10.1 million due to the sale of the promissory notes and the winding up of the entity;</font></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(vi)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized appreciation to realized appreciation for our holdings in RP&amp;C of $0.1 million due to the maturity of the investment;</font></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(vii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Increase in fair market value of our holdings in Sovereign of $0.6 million as Sovereign had seen an upward trend in operating results and has continued to reduce its debt which has resulted in a corresponding increase its equity value; </font></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(viii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Decrease in fair market value of our holdings in Spectrum of $1.4 million due to the decline in operating performance and the maturity of its funded debts which remained in default; and </font></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"></P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(ix)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Decrease
    in the fair market value of our holdings in Trulite of $0.1 million due to the lack of progress and inability to achieve
    sufficient funding with regards to its product development program.</font></td></tr>
</table>
<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><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/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>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-indent: 24.5pt">As of December 31, 2013, we had active
investments in the following entities or portfolio companies:</P>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Equus Energy, LLC</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-indent: 24.5pt">We formed Equus Energy, 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 in 129 producing and non-producing oil and gas wells, including associated development rights of approximately
21,120 acres situated on 13 separate properties in Texas and Oklahoma. The working interests range from a <I>de minimus</I> amount
to 50% of the leasehold production of these wells. The wells are operated by a number of experienced operators such as Apache,
Chesapeake, and Chevron, which has operating responsibility for leasehold interests in the Conger Field, representing approximately
half of the producing well interests. The assets were purchased from Warren American Oil Company, LLC, a Tulsa-based oil &amp;
gas firm. Due to improved operating performance in the fourth quarter of 2013, an increase in proved developed producing reserves,
and the estimated value of the acreage rights associated with certain working interests held in the Eagle Ford trend, the fair
value of this holding increased from approximately $6.9 million at December 31, 2012 to $8.0 million at December 31, 2013.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Equus Media Development Company,
LLC</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-indent: 24.5pt">Equus Media Development Company, LLC
(&ldquo;EMDC&rdquo;) is a company engaged in the acquisition and development of creative properties with the purpose of developing
the properties for release in various entertainment mediums. We formed EMDC in 2007 as a wholly-owned subsidiary of the Fund in
connection with a management and development agreement with Kopelson Entertainment (&ldquo;KE&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-indent: 24.5pt">The concept of the business of EMDC
is to partner with creators, developers and producers of creative work, such as scripts, short stories or books, by providing capital
necessary to enhance the creative development and package the assets to companies, such as major and independent studios, to produce
and release. In December 2011, our agreement with KE expired and EMDC distributed $1 million to the Fund. As of December 31, 2013,
we valued EMDC at $0.2 million.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Orco Property Group S.A.</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-indent: 24.5pt">Orco Property Group S.A. (&ldquo;OPG&rdquo;)
is a commercial and multi-family residential real estate holding company based in Paris. On April 27, 2011, we announced that we
had entered into two separate transactions involving the purchase of an aggregate of 11,408 Orco Germany 4% bonds due May 2012
(&ldquo;Bonds&rdquo;). The consideration provided to the selling bondholders consisted of an aggregate of 1,700,000 newly issued
shares of common stock of the Fund. We received 8,890 of the Bonds on April 27, 2011. On May 9, 2011, one of these agreements was
amended and restated to provide for an additional 45 days to deliver the remaining 2,518 of the Bonds in exchange for providing
to the Fund approximately $1.6 million in cash as security for such delivery. As the remaining Bonds were not delivered by the
specified date, the cash collateral became free and clear property of the Fund on June 23, 2011. During 2012, the Bonds were converted
into 1,573,666 ordinary shares of OPG and &euro;1,200,790 in newly-issued 6-year OPG Notes. We subsequently sold 1,500,000 of our
OPG shares in October 2012. As of December 31, 2013, we valued this investment at $1.6 million.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>PalletOne, Inc.</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-indent: 24.5pt">PalletOne is considered one of the largest
wooden pallet manufacturer in the United States, operating 17 facilities in 11 states, with approximately 1,100 employees. The
company manufactures and recycles a variety of pallets types as well as boxes. The company also sells its by-products of mulch
and scrap metal. PalletOne also owns and operates a major Florida-based wood treating plant. PalletOne has a diverse customer base
and competes with numerous other manufacturers on a regional basis. Its largest pallet customers are agricultural and construction
related companies including growers, grocery stores, and housing construction companies. We believe PalletOne&rsquo;s numerous
locations allows for a slight advantage in pursuing large corporate accounts, as sales of pallets are typically regionalized to
specific locations. In 2006, the company acquired a wood treating operation. The wood treating facility, Sunbelt, sells treated
wood to a variety of customers, the most significant being Lowe&rsquo;s home improvement stores. Sunbelt has had a 20 year exclusive
relationship with a large retail company selling treated and pre-fabricated fences. The principals of PalletOne have significant
pallet manufacturing experience. The pallet manufacturing industry is mature and is experiencing continuing slow growth as the
number of participants shrinks due to consolidation and underutilized plants, which have been eliminated. We initially invested
in PalletOne in October 2001. Our investment in PalletOne consists of 350,000 shares of common stock, which represents a fully
diluted equity interest of approximately 18%. Due to improved operating performance, we valued our interest in PalletOne as of
December 31, 2013 at $0.3 million.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B><I>Security
Monitor Holdings, LLC</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-indent: 24.5pt">Security Monitor Holdings, LLC (&ldquo;SMH&rdquo;)
is a company which specializes in managing and improving operations of distressed companies. During 2013, we made a short-term
working capital loan of $0.5 million to SMH. The loan has a six month term and bears interest at 14% per annum. As of December
31, 2013, we valued this investment at $0.5 million.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B><I>Spectrum
Management, LLC</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-indent: 24.5pt">Spectrum uses proprietary electronic
tracking equipment and software, and a full suite of custom services to help client organizations, mainly financial institutions,
protect or recover high-value merchandise and cash. Spectrum markets its services under the brand name Electronic Tracking Systems
or ETS. The company specializes in assisting communities and law enforcement in recovery of stolen property.</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">The most common use for Spectrum&rsquo;s
product, or TracPac, is in branch offices of banks. When used in a bank, the product can be placed between two bills and passed
to a robber as a teller empties a drawer. In addition, law enforcement has begun to utilize the product for stake outs in recovering
stolen property as the product can be placed on or in property that may have a high likelihood of being stolen. Once the robbery
event has taken place and the TracPac is moved, the device is activated and begins to transmit a radio signal. Law enforcement
can then track the TracPac on pre-installed receivers mounted in various vehicles. The company believes its product is the only
product on the market that allows tracking of the &ldquo;last mile&rdquo; (within 15-30 feet of the transmitter). Once law enforcement
knows it is close to a suspect, it can generally, then utilize a handheld device to locate the individual in a building or small
radius area.</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">The company leases its transmitters
to banks on a per unit basis and has relationships with a number of different banks from international commercial banks to community
thrifts. Spectrum has been impacted by the issues facing lending institutions as banks seek to reduce expenses and have slowed
branch expansion. Spectrum competes in the currency protection niche of the security industry, which includes home security, private
security, identity theft, airport security and many other segments. Currently there are over 75,000 bank branches in the US with
an average of five tellers per branch. In the currency protection segment there are a number of competitors providing services,
the company&rsquo;s direct competitor in the tracking business is 3SI Security Systems. Competing products include bullet proof
glass for teller windows, panic buttons, security personnel, exploding dye packs, ATM protection and safe protection.</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">As of December 31, 2013,
our investment in Spectrum consisted of 285,000 units of Class A Members&rsquo; interest, representing a fully-diluted
equity interest of 82.5%, and 16% subordinated promissory notes in the face amount of $2.9 million, which are currently in
default. Based on a more stable operating performance for 2013 and improved customer retention, we valued our investment in
Spectrum at approximately $2.9 million.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Trulite, Inc.</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-indent: 24.5pt">Trulite is a developer of safe, clean,
affordable, portable hybrid power generation products that are also user friendly. Trulite utilizes fuel cells powered by water
and hydrogen in portable and semi-portable products that can be used off-grid for applications of up to one kilowatt, with ideal
usage in the 150-500 watt range.</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">During 2008 and 2009, we invested
an aggregate of $2.0 million in the form of an unsecured promissory note maturing in January 2010, initially bearing interest
at 15% and thereafter increased to 18%. In connection with the investment, we also received warrants to acquire 8.9 million
shares of Trulite&rsquo;s common stock at exercise prices ranging from $0.01 to $0.38 per share. The warrants expire in 2015.
In June 2010, the note, together with all interest as accrued, was repaid by Trulite. We retained the Trulite warrants and we
valued them at $0 as of December 31, 2013.</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>Off Balance Sheet Arrangements </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-indent: 24.5pt">We have operating leases
for office space and office equipment. The lease for office space expires in 2014 with a one-time option to terminate the
lease as of the last day of the 36th month. The lease also contains a provision for certain annual rental escalations. Rent
expense inclusive of common area maintenance costs was $85,000, $84,000  and $81,000 for each of the years ended December 31,
2013, 2012 and 2011, respectively. Future minimum lease payments under the operating lease as of December 31, 2013 for
the year ended December 31, 2014 is $42,000.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Contractual Obligations </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-indent: 24.5pt">As of December 31, 2013, we had no outstanding
commitments to our portfolio company investments.</P>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our Board terminated our external advisory
and administration agreements effective June 30, 2009. Since that time, the Fund has been internally managed, meaning that we directly
employ our management team and incur the costs and expenses associated with Fund operations. There is no outside investment advisory
organization providing services to the Fund under a fee-based advisory agreement, or a third-party administrative organization
charging the Fund for services rendered.</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>Dividends</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-indent: 24.5pt">On March 24, 2009, we announced a suspension
of our managed distribution policy and payment of quarterly distributions for an indefinite period. We will continue to pay out
net investment income and/or realized capital gains, if any, on an annual basis as required under the Investment Company Act of
1940.</P>

<P STYLE="font: 10pt/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>Subsequent Event </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-indent: 24.5pt">Our Management performed an evaluation
of the Fund&rsquo;s activity through the date the financial statements were issued, noting the following subsequent event:</P>

<P STYLE="font: 10pt/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-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
January&nbsp;2, 2014, the Fund sold U.S. Treasury Bills for $15.0 million and repaid its year-end margin loan</FONT>.</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"><A NAME="a_012"></A><B>Item 7A. <I>Quantitative and Qualitative Disclosures About
Market Risk </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-indent: 24.5pt">We are subject to financial market risks,
including changes in interest rates with respect to investments in debt securities and outstanding debt payable, as well as changes
in marketable equity security prices. In the future, in addition to our investment in OPG shares and the New OPG Notes, we may
invest in companies outside the United States, including in Europe and Asia, which would give rise to exposure to foreign currency
value fluctuations. We do not use derivative financial instruments to mitigate any of these risks. The return on investments is
generally not affected by foreign currency fluctuations.</P>

<P STYLE="font: 10pt/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">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-indent: 24.5pt">A major portion of our investment portfolio
consists of debt and equity investments in private companies. Modest changes in public market equity prices generally do not significantly
impact the estimated fair value of these investments. However, significant changes in market equity prices can have a longer-term
effect on valuations of private companies, which could affect the carrying value and the amount and timing of gains or losses realized
on these investments. A small portion of the investment portfolio also consists of common stocks 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-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We are classified as a &ldquo;non-diversified&rdquo;
investment company under the Investment Company Act, which means we are not limited in the proportion of our assets that may be
invested in the securities of a single user. The value of one segment called &ldquo;Energy&rdquo; includes one portfolio company
and was 24.1% of the net asset value and 59.2% of our investments in portfolio company securities (at fair value) as of December
31, 2013. Changes in business or industry trends or in the financial condition, results of operations, or the market&rsquo;s assessment
of any single portfolio company will affect the net asset value and the market price of our common stock to a greater extent than
would be the case if we were a &ldquo;diversified&rdquo; company holding numerous investments.</P>

<P STYLE="font: 10pt/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>&nbsp;</B></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>&nbsp;</B></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>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_013"></A><B>Item 8. <I>Financial Statements and Supplementary Data
</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B><A NAME="a_028"></A>Report
of Independent Registered Public Accounting Firm</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">To
the Board of Directors and</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">Stockholders
of Equus Total Return, Inc.:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">We
have audited the accompanying balance sheets of Equus Total Return, Inc. (a Delaware corporation) (the &ldquo;Fund&rdquo;), including
the schedules of investments, as of December 31, 2013 and 2012 and the related statements of operations, changes in net assets
and cash flows for each of the three years in the period ended December 31, 2013 and the selected per share data and ratios for
each of the five years in the period ended December 31, 2013. These financial statements and selected per share data and ratios
are the responsibility of the management of the Fund. Our responsibility is to express an opinion on these financial statements
and selected per share data and ratios based on our audits.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and selected
per share data and ratios are free of material misstatement. The Fund is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Fund&rsquo;s internal control over financial reporting. Accordingly, we express no opinion.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements
and selected per share data and ratios. Our procedures included verification by examination or confirmation of securities held
by the custodian as of December 31, 2013 or by other appropriate auditing procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">In
our opinion, the financial statements and selected per share data and ratios referred to above present fairly, in all material
respects, the financial position of Equus Total Return, Inc. as of December 31, 2013 and 2012 and the results of its operations
and its cash flows for each of the three years in the period ended December 31, 2013 and the selected per share data and ratios
for each of the five years in the period ended December 31, 2013, in conformity with accounting principles generally accepted in
the United States of America.</FONT></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">/s/ UHY LLP</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Houston, Texas</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">March 31, 2014</P>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<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><A NAME="a_029"></A>BALANCE SHEETS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" 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">December 31, 2013</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">December 31, 2012</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;(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: 69%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments (cost at $15,789 and $15,479 respectively)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">11,105</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">7,419</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 and $350 respectively)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments (cost at $1,321 and $10,625 respectively)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,149</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,663</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">13,504</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,232</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: 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">19,065</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,687</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Restricted cash and temporary cash investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts receivable from investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38</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 receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">228</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">293</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">Accounts receivable and other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">30</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">33</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&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">48,349</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,283</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: 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 and accrued liabilities</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">214</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">26</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">194</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">15,000</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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&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">15,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Commitments and contingencies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,217</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">32,875</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net assets consist of:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,701</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,495</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed net investment losses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,538</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,408</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized depreciation of portfolio securities, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,956</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,222</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,217</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">32,875</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Shares of common stock issued and outstanding, $.001 par value, 50,000 shares authorized</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">10,562</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Shares of preferred stock issued and outstanding, $.001 par value, 5,000 shares authorized</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Net asset value per share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.11</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"></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>

<P STYLE="font: 10pt/115% 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>

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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/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>


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<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="a_030"></A><B>STATEMENTS OF OPERATIONS </B></P>

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<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="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">(in thousands, except per share amounts)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><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">2011</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Investment income:</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><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 income (loss), net:</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><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(166</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">358</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">209</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&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">5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">172</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">157</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">295</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;&nbsp;Total interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">515</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">509</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;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">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">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">30</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;Total investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">516</TD><TD STYLE="text-align: left">&nbsp;</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>&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>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></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">994</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,211</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">882</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,056</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,286</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;Offering costs</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">428</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">433</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">449</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></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 expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">128</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">167</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">207</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">155</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">176</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">15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</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;Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4</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;Settlement 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">527</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">320</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">&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">3,136</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">3,169</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">4,039</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></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">(3,129</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,653</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,500</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><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 gain (loss):</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><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;Control investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,795</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,187</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,074</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;Affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">138</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;Non-affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,318</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(992</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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">&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">72</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</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,795</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,797</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,930</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&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>&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">Net unrealized depreciation of portfolio securities:</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><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;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,956</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,222</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,399</TD><TD STYLE="text-align: left">)</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">(17,222</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,399</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">(27,300</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 change in unrealized depreciation 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">13,266</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">177</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">9,901</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: 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><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">Net increase (decrease) 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">342</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(5,273</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(4,529</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">Net increase (decrease) in net assets resulting
    from operations per share:</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
    and diluted</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">0.03</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">(0.50</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">(0.45</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">Weighted average shares outstanding:</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 11pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
    and diluted</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">10,562</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">10,562</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">10,049</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></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"></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt/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="a_031"></A>STATEMENTS OF CHANGES IN NET ASSETS
</B></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">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" 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="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><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">2011</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; text-align: left">Net increase (decrease) in net assets resulting from operations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">342</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(5,273</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(4,529</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Capital share transactions:</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for 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">&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">4,626</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 increase in net assets resulting from capital share 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">&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">4,626</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">Increase (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,273</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97</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 assets at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">32,875</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,148</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">38,051</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net assets at end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,217</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">32,875</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">38,148</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></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">&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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<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/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="a_032"></A>STATEMENTS OF CASH FLOWS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 9pt 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="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><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">2011</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Reconciliation of increase (decrease) in net assets resulting from operations to net cash (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 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="width: 58%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in net assets resulting
    from operations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">342</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(5,273</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(4,529</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">Adjustments to reconcile net decrease 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><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;Net realized loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,795</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,797</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,930</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;Net change in unrealized depreciation of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13,266</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(177</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,901</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(810</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,939</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(642</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 proceeds from dispositions of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,952</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,730</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;Principal payments received from portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,618</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">379</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;Decrease in deferred offering costs</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">428</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;Cash settlement of collateral</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">1,610</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;Sales of temporary cash investments, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,150</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,090</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;Increase in accounts receivable from affiliates</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(334</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts receivable and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">182</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;Decrease in accrued interest receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,561</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">569</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;(Decrease) increase in accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(108</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</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">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in accounts payable to related parties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(168</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">155</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</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 cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(19,622</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,596</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cash flows from financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under margin account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,000</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;Repayments under margin account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,000</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred offering costs</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">(165</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">15,000</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">(6,000</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">(9,165</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) increase in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,622</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,431</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">Cash and cash equivalents at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">23,687</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">16,813</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><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">7,382</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></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">19,065</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">23,687</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">16,813</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><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;Shares issued in lieu of cash for portfolio securities</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">&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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,626</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest or dividends exchanged for portfolio securities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">301</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">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><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; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">11</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"></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>


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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><A NAME="a_033"></A>SELECTED PER SHARE DATA AND RATIOS
</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-indent: 0.25in; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="20" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">Year ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><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">2011</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">2010</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">2009</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left">Investment income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.33</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.43</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"></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.30</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"></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.30</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">0.40</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">0.42</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">0.41</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><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 income (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">(0.30</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">(0.25</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.35</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.09</TD><TD STYLE="text-align: left">)</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: 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><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"></TD><TD STYLE="text-align: right">(0.93</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.27</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.09</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">(1.77</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net change in unrealized depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1.26</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"></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.02</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">0.99</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">(1.36</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">(1.38</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 increase (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">0.03</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">(0.50</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.13</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Capital transactions:</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 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">&nbsp;&nbsp;Distributions from net investment income</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">(0.02</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;Return of capital distribution</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">(0.09</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;Shares issued for portfolio securities</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">(0.16</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><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">(0.18</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">Decrease 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">&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">(0.23</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><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">(0.29</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 (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.03</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.50</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.68</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.45</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.42</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net assets at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3.11</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3.61</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><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">4.29</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">5.74</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">9.16</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD 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">3.14</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">3.11</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.61</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4.29</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5.74</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Weighted average number of shares outstanding during period,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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;&nbsp;&nbsp;&nbsp;&nbsp;in thousands</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,562</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,790</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Market price per share:</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><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><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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.20</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.30</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.99</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.20</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Selected information and ratios:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends declared</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.11</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">9.49</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.93</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.60</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.26</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.53</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio of net investment gain (loss) to average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.47</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.47</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.19</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.73</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.30</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 (decrease) in net assets resulting from operations to average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.04</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.89</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28.89</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42.57</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;Total return on market price <font style="font: normal 10pt Times New Roman, Times, Serif"><sup>(1)</sup></font></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15.68</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.36</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.40</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21.88</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(23.08</TD><TD STYLE="text-align: left">%)</TD></TR>
</TABLE>


<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-indent: 0.25in; color: Red"></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-size: 7pt"><SUP>(1)</SUP></FONT><FONT STYLE="font-size: 8pt">
Total return = [(ending market price per share + year-to-date dividends paid - beginning market 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: 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"><B>&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"><B>&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"><B>&nbsp;</B></P>


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<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="a_034"></A><B>SCHEDULE OF INVESTMENTS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2013</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"><FONT STYLE="font-size: 8">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; background-color: White; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <TD STYLE="font-size: 1pt; width: 26%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 1pt; width: 10%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 1pt; text-align: center; width: 11%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 1pt; width: 20%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; width: 10%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; width: 10%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; width: 10%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;Name&nbsp;and&nbsp;Location&nbsp;of&nbsp;</FONT></td>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Date&nbsp;of&nbsp;Initial&nbsp;</FONT></td>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Cost of&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Fair&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-decoration: underline"><FONT STYLE="font-size: 7pt">&nbsp;Portfolio&nbsp;Company&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Industry&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Investment&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Investment&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Principal&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;Investment&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-decoration: underline; text-align: center"><FONT STYLE="font-size: 7pt">Value<FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-variant: normal"><B><SUP STYLE="text-decoration: none">(1)</SUP></B></FONT></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="5" STYLE="font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Control
    Investments:&nbsp;&nbsp;Majority-owned <SUP>(3)</SUP>:&nbsp;</FONT></td>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">Equus Energy, LLC&nbsp;</FONT></td>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">Energy&nbsp;</FONT></td>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7pt">December 2011</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;Member interest (100%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;7,050
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;8,000</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 7pt">Houston,
    TX</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">Equus Media Development Company, LLC</FONT></td>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">Media&nbsp;</FONT></td>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;January 2007&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;Member interest (100%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;3,000 &nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;216</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 7pt">Houston,
    TX</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">Spectrum Management, LLC</FONT></P>
        <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">Carrolton, TX</FONT></P></td>
    <TD><FONT STYLE="font-size: 7pt">Business products and services&nbsp;</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;December&nbsp;1999&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;285,000 units of Class&nbsp;A member interest (92.1%/82.5% fully diluted)&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;2,850 &nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">16% subordinated promissory note due 11/11 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal; font-variant: normal"><SUP>(2)</SUP></FONT></FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889 &nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,739 &nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889</FONT></td></tr>
<tr>
    <TD COLSPAN="5" STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Total
    Control Investments: Majority-owned (represents 39.0% of total investments at fair value)&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;15,789
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;11,105</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Affiliate Investments <SUP>(4)</SUP>:&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 0.5pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">PalletOne,
                                         Inc.</FONT></P>
        <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">Bartow, FL</FONT></P></td>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Shipping products and services&nbsp;</FONT></td>
    <TD STYLE="text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;October 2001&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;350,000&nbsp;shares&nbsp;of&nbsp;common stock
    (18.70%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;350 &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Total
    Affiliate Investments (represents 0.9% of total investments at fair value)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Non-Affiliate Investments
    (less than 5% owned):</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="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"><FONT STYLE="font-size: 7pt">Orco
                                         Property Group</FONT></P>
                                                                 <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">Paris,
                                         France</FONT></P></td>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">Real estate</FONT></td>
    <TD STYLE="text-align: center; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">April 2011</FONT></td>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 7pt">73,666 shares common stock</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">125 &nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">169</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">10% promissory note due 2/18 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal; font-variant: normal"><SUP>(2)</SUP></FONT></FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;696 &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;696 &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,480</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">821&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,649</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-top-color: black; border-top-width: 0.5pt"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">Security
                                         Monitor Holding, LLC</FONT></P>
                                                                 <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 7pt">Boston,
                                         MA</FONT></P></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;Business products and services&nbsp;</FONT></td>
    <TD STYLE="text-align: center; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">November 2013</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">14% promissory note due 5/14 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal; font-variant: normal"><SUP>(2)</SUP></FONT></FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500&nbsp; </FONT></td>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;500</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Total
    Non-Affiliate Investments (represents 7.5% of total investments at fair value)</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,321
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,149</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">Total
    Investment in Portfolio Securities</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left; border-top-color: black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;17,460
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;13,504</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">Temporary Cash Investments</FONT></td>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt">U.S. Treasury Bill</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">Government</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">December 2013</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">UST 0% 2/14</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;15,000 &nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">15,000 &nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">15,000</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Total
    Temporary Cash  Investments (represents 52.6% of total investments at fair value)</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">15,000
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">15,000</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Total
    Investments</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;32,460
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;28,504</FONT></td></tr>
</table>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>

<P STYLE="margin: 0">&nbsp;</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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Times New Roman, Times, Serif"><SUP>(1)</SUP></TD>
    <TD STYLE="font: 7.5pt/115% Times New Roman, Times, Serif">See Note 3 to the financial statements, Valuation of Investments.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD>
    <TD STYLE="width: 96%; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">Income-producing.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD>
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more than 50% of the voting securities of the company.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT></TD>
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least 5% but not more than 25% voting securities of the company.</FONT></TD></TR>
</TABLE>


<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>&nbsp;</B></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"><B>&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"><B>&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"><B>&nbsp;</B></P>


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<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, 2013</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(in thousands, except share data)</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-indent: 24.5pt">Substantially all of our portfolio securities
are restricted from public sale without prior registration under the Securities Act of 1933. We negotiate certain aspects of the
method and timing of the disposition of our investment in each portfolio company, including registration rights and related costs.</P>

<P STYLE="font: 10pt/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">As defined in the Investment Company
Act of 1940, all of our investments are in eligible portfolio companies. We provide significant managerial assistance to portfolio
companies that comprise 82% of the total value of the investments in portfolio securities as of December 31, 2013.</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">Our investments in portfolio securities
consist of the following types of securities as of December 31, 2013 (in thousands):</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Type of Securities</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value as</P>
                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Percentage of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>Net Assets</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">Limited liability company investments</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">12,900</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">8,216</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">24.7</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Secured and subordinated debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,085</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,869</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14.7</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">Common stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">475</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">419</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1.3</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; 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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">17,460</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13,504</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">40.7</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; color: Red"><B></B></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">Interest payments are being received
and/or accrued on notes with a fair value of $2.0 million, while accrued interest has been impaired on notes receivable included
in secured and subordinated debt with a fair value of $2.9 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-indent: 24.5pt">The following is a summary by industry
of our investments in portfolio securities as of December 31, 2013 (in thousands):</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; text-align: center; text-indent: 24.5pt; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value as</P>
                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Percentage of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Net Assets</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%">Energy</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">8,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; text-align: right">24.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Business products and services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,389</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.2</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Real estate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,649</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Shipping products and services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.8</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Media</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">216</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">0.6</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13,504</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">40.7</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; text-align: center; text-indent: 24.5pt; color: Red"><B></B></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: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">&nbsp;</P>


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<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><A NAME="a_035"></A>SCHEDULE OF INVESTMENTS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2012</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">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; background-color: #CCEEFF; border-collapse: collapse">
<tr style="background-color: white">
    <td nowrap style="width: 26%; padding-right: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Name
    and Location of </B></FONT></td>
    <td nowrap style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Date
    of Initial </B></FONT></td>
    <td nowrap style="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Cost
    of </B></FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Fair
    </B></FONT></td></tr>
<tr style="background-color: white">
    <td nowrap style="padding-right: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B><U>Portfolio
    Company </U></B></FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B><U>Industry
    </U></B></FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B><U>Investment
    </U></B></FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B><U>Investment
    </U></B></FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B><U>Principal
    </U></B></FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B><U>Investment
    </U></B></FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B><U>Value<SUP>(</SUP></U><SUP>1)</SUP></B></FONT></td></tr>
<tr style="background-color: white">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td colspan="5" style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="background-color: white">
    <td colspan="2" style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Control
    investments: Majority-owned <SUP>(3)</SUP>: </B></FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Equus Energy, LLC</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Houston, TX</FONT></P></td>
    <td style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Energy
    </FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">December
    2011</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Member
    interest (100%) </FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">7,050
    </FONT></td>
    <td style="border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">6,855
    </FONT></td></tr>
<tr style="background-color: white">
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Equus Media Development
        Company, LLC</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Houston, TX</FONT></P></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Media
    </FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">January
    2007 </FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Member
    interest (100%) </FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">3,000
    </FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">146
    </FONT></td></tr>
<tr>
    <td style="padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Spectrum Management,
        LLC</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Carrolton, TX</FONT></P></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Business
    products and services </FONT></td>
    <td nowrap style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">December
    1999</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">285,000
    units of Class A member interest (92.1%/82.5% fully diluted) </FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">2,850
    </FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">16%
    subordinated promissory notes due 11/11<SUP>(5)</SUP> </FONT></td>
    <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">2,579</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">2,579
    </FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">418</FONT></td></tr>
<tr>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">5,429
    </FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">418</FONT></td></tr>
<tr style="background-color: white">
    <td colspan="4" style="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Total
    Control investments: Majority-owned (represents 80.4% of total investments at fair value) </B></FONT></td>
    <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>15,479</B></FONT></td>
    <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>7,419</B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Affiliate
    Investments <SUP>(4)</SUP>: </B></FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="background-color: white">
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">PalletOne, Inc.</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Bartow, FL</FONT></P></td>
    <td style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Shipping
    products and services </FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">October
    2001 </FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">350,000
    shares of common stock (18.70%) </FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">350
    </FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">150
    </FONT></td></tr>
<tr>
    <td colspan="4" style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Total
    Affiliate Investments (represents 1.6% of total investments at fair value) </B></FONT></td>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>350
    </B></FONT></td>
    <TD STYLE="text-align: right; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <TD NOWRAP STYLE="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>150
    </B></FONT></td></tr>
<tr style="background-color: white">
    <td colspan="4" style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Non-Affiliate
    Investments (less than 5% owned):</B></FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">The Bradshaw Group</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Richardson, TX</FONT></P></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Business
    products and services</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">May
    2000</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">576,828 Class B shares
        (12.25%)</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">preferred stock</FONT></P></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">1,795
    </FONT></td>
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">38,750
    Class C shares preferred stock</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">788,649
    Class D shares 15% preferred stock</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">2,218,109
    Class E shares 8% preferred stock</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Warrant
    to buy 2,229,450 shares of common stock through 5/16</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: Black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">1,795</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="background-color: white">
    <td style="border-top: black 1pt solid; padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Infinia Corporation</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Ogden, UT</FONT></P></td>
    <td style="vertical-align: top; border-top: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Alternative
    energy</FONT></td>
    <td nowrap style="vertical-align: top; border-top: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">June
    2007</FONT></td>
    <td style="border-top: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">115,180
    shares common stock (0.06%)</FONT></td>
    <td style="border-top: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-top: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-top: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-top: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">8,000</FONT></td>
    <td style="vertical-align: top; border-top: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-top: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Option
    to purchase 16,000 shares of common stock at $6.50 per share through 12/12</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: Black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="background-color: white">
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">8,000</FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Orco Property Group
        S.A.</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Paris, France</FONT></P></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Real
    estate</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">April
    2011</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">73,666
    shares common stock</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">125</FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">238</FONT></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">10%
    Promissory note due 2/18<SUP> (2)</SUP></FONT></td>
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$ </FONT></td>
    <td nowrap style="padding-right: 5.4pt; padding-left: 5.4pt; font: 7pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">705
    </FONT></td>
    <td><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">705</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: Black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">1,425
    </FONT></td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">830</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">1,663
    </FONT></td></tr>
<tr style="background-color: white">
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Trulite, Inc.</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 7pt">Columbia, SC</FONT></P></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Alternative
    energy</FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">August
    2008</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">Warrants
    to buy 8,934,211 shares of common stock at $0.01 - $0.38 per share through 11/15</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td>
    <td style="vertical-align: top; border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td nowrap style="vertical-align: top; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif">-
    </FONT></td></tr>
<tr style="vertical-align: bottom">
    <td colspan="4" style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Total
    Non-Affiliate Investments (represents 18.0% of total investments at fair value)</B></FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>10,625</B></FONT></td>
    <td style="border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <td nowrap style="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>1,663</B></FONT></td></tr>
<tr style="background-color: white">
    <TD STYLE="border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; text-align: left; vertical-align: bottom"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>Total
    Investment in Portfolio Securities</B></FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; vertical-align: bottom"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>26,454</B></FONT></td>
    <TD STYLE="text-align: right; border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; vertical-align: bottom"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">$</FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: black 1pt solid; font: 7pt/115% Calibri, Helvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 7pt/115% Times New Roman, Times, Serif"><B>9,232</B></FONT></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Times New Roman, Times, Serif; width: 3%"><SUP>(1)</SUP></TD>
    <TD STYLE="font: 7.5pt/115% Times New Roman, Times, Serif; width: 96%">See Note 3 to the financial statements, Valuation of Investments.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD>
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">Income-producing.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD>
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">Majority owned investments are generally defined under the Investment Company Act of 1940 as companies in which we own more than 50% of the voting securities of the company.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT></TD>
    <TD STYLE="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 7.5pt Times New Roman, Times, Serif">Affiliate investments are generally defined under the Investment Company Act of 1940 as companies in which we own at least 5% but not more than 25% voting securities of the company.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 7.5pt/115% Times New Roman, Times, Serif"><SUP>(5)</SUP></TD>
    <TD STYLE="font: 7.5pt/115% Times New Roman, Times, Serif">Non-income producing.</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: center">The accompanying notes are an integral
part of these financial statements.</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>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, 2012</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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Substantially all of our portfolio securities
are restricted from public sale without prior registration under the Securities Act of 1933. We negotiate certain aspects of the
method and timing of the disposition of our investment in each portfolio company, including registration rights and related costs.</P>

<P STYLE="font: 10pt/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">As defined in the Investment Company
Act of 1940, all of our investments are in eligible portfolio companies. We provide significant managerial assistance to portfolio
companies that comprise 100% of the total value of the investments in portfolio securities as of December 31, 2012.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our investments in portfolio securities
consist of the following types of securities as of December 31, 2012 (in thousands):</P>

<P STYLE="font: 10pt/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: bottom">
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Type of Securities</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Cost</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Fair Value</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid">
        <P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value as</B></P>
        <P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Percentage of</b></P>
        <P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"></P>
        <P STYLE="font: 9pt/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: #CCEEFF">
    <td style="width: 46%; padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Limited liability company investments</font></td>
    <td style="width: 5%">&nbsp;</td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12,900</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 5%">&nbsp;</td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,001</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 5%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 11%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">21.3</font></td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Secured and subordinated debt</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,284</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,843</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5.6</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Common stock</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,475</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">388</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.2</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif">Preferred stock</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,795</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.0</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">26,454</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9,232</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">28.1</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; border-bottom: Black 2.5pt double"><font style="font: 9pt Times New Roman, Times, Serif">%</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-indent: 24.5pt">Interest payments are being received
and/or accrued on notes with a fair value of $1.4 million, while accrued interest has been impaired on notes receivable included
in secured and subordinated debt with a fair value of $0.4 million.</P>

<P STYLE="font: 10pt/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">The following is a summary by industry
of our investments in portfolio securities as of December 31, 2012 (in thousands):</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Industry</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Fair Value</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <TD COLSPAN="3" STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 9pt"><B>Fair Value as Percentage of <FONT STYLE="font-family: Times N</P>
                                                                                                                                            <P STYLE=">Net Assets</FONT></B></FONT></P></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 58%; padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Energy</font></td>
    <TD STYLE="width: 8%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 11%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,855</font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 8%">&nbsp;</td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 11%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">20.8</font></td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Real estate</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,663</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5.1</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Business products and services</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">418</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.3</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Shipping products and services</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">150</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.5</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Media</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">146</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.4</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif">Alternative energy</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.0</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9,232</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">28.1</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; border-bottom: Black 2.5pt double"><font style="font: 9pt Times New Roman, Times, Serif">%</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">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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>


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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><A NAME="a_036"></A>NOTES TO FINANCIAL STATEMENTS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2013, 2012 AND 2011</B></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>(1) ORGANIZATION AND BUSINESS PURPOSE </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-indent: 24.5pt">Equus Total Return, Inc. (<I>&ldquo;we,&rdquo;
&ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus&rdquo; the &ldquo;Company&rdquo; and the &ldquo;Fund</I>&rdquo;), a Delaware
corporation, was formed by Equus Investments II, L.P. (the &ldquo;Partnership&rdquo;) on August 16, 1991. On July 1, 1992, the
Partnership was reorganized and all of the assets and liabilities of the Partnership were transferred to the Fund in exchange for
shares of common stock of the Fund. Our shares trade on the New York Stock Exchange under the symbol EQS. On August 11, 2006, our
shareholders approved the change of the Fund&rsquo;s investment strategy to a total return investment objective. This new strategy
seeks to provide the highest total return, consisting of capital appreciation and current income. In connection with this strategic
investment change, the shareholders also approved the change of name from Equus II Incorporated to Equus Total Return, Inc.</P>

<P STYLE="font: 10pt/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">We attempt to maximize the return to
stockholders in the form of current investment income and long-term capital gains by investing in the debt and equity securities
of companies with a total enterprise value of between $5.0 million and $75.0 million, although we may engage in transactions with
smaller or larger investee companies from time to time. We seek to invest primarily in companies pursuing growth either through
acquisition or organically, leveraged buyouts, management buyouts and recapitalizations of existing businesses or special situations.
Our income-producing investments consist principally of debt securities including subordinate debt, debt convertible into common
or preferred stock, or debt combined with warrants and common and preferred stock. Debt and preferred equity financing may also
be used to create long-term capital appreciation through the exercise and sale of warrants received in connection with the financing.
We seek to achieve capital appreciation by making investments in equity and equity-oriented securities issued by privately-owned
companies in transactions negotiated directly with such companies. Given market conditions over the past several years and the
performance of our portfolio, our Management and Board of Directors believe it 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-indent: 24.5pt">We elected to be treated as a BDC under
the Investment Company Act of 1940 (&ldquo;1940 Act&rdquo;). We currently qualify as a regulated investment company (&ldquo;RIC&rdquo;)
for federal income tax purposes and, therefore, are not required to pay corporate income taxes on any income or gains that we distribute
to our stockholders. We have certain wholly owned taxable subsidiaries (&ldquo;Taxable Subsidiaries&rdquo;) each of which holds
one or more portfolio investments listed on our Schedules of Investments. The purpose of these Taxable Subsidiaries is to permit
us to hold certain income-producing investments or portfolio companies organized as limited liability companies, or LLCs, (or other
forms of pass-through entities) and still satisfy the RIC tax requirement that at least 90% of our gross revenue for income tax
purposes must consist of investment income. Absent the Taxable Subsidiaries, a portion of the gross income of these income-producing
investments or of any LLC (or other pass-through entity) portfolio investment, as the case may be, would flow through directly
to us for the 90% test. To the extent that such income did not consist of investment income, it could jeopardize our ability to
qualify as a RIC and, therefore, cause us to incur significant federal income taxes. The income of the LLCs (or other pass-through
entities) owned by Taxable Subsidiaries is taxed to the Taxable Subsidiaries and does not flow through to us, thereby helping us
preserve our RIC status and resultant tax advantages. We do not consolidate the Taxable Subsidiaries for income tax purposes and
they may generate income tax expense because of the Taxable Subsidiaries&rsquo; ownership of the portfolio 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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(2) LIQUIDITY AND FINANCING ARRANGEMENTS </B></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"><B>Liquidity</B>&mdash;There are several
factors that may materially affect our liquidity during the reasonably foreseeable future. We view this period as the twelve month
period from the date of the financial statements in this Form 10-K, <I>i.e</I>., the period through December 31, 2014.</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">We are evaluating the impact of current
market conditions on our portfolio company valuations and their ability to provide current income. We have followed valuation techniques
in a consistent manner; however, we are cognizant of current market conditions that might affect future valuations of portfolio
securities. We believe that our operating cash flow and cash on hand will be sufficient to meet operating requirements and to finance
routine expenditures through the next twelve months.</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">As of December 31, 2013, we had cash
and cash equivalents of $19.1 million. We had $13.5 million of our net assets of $33.2 million invested in portfolio securities.
We also had $15.2 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, $15.0 million was invested in U.S. Treasury bills and $0.2 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, 2014 and we subsequently repaid this margin loan. The margin
interest was paid on January 22, 2014.</P>


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<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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2012, we had cash
and cash equivalents of $23.7 million. We had $9.2 million of our net assets of $32.9 million invested in portfolio securities.</P>

<P STYLE="font: 10pt/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">As of December 31, 2013, we had no outstanding
commitments to our portfolio company investments. Under certain circumstances, we may be called on to make follow-on investments
in certain portfolio companies. If we do not have sufficient funds to make follow-on investments, the portfolio company in need
of the investment may be negatively impacted. Also, our equity interest in the estimated fair value of the portfolio company could
be reduced.</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"><B>RIC Borrowings and Temporary Cash
Investments</B>&mdash;During 2013 and 2012, we borrowed sufficient funds to maintain the Fund&rsquo;s RIC status by utilizing a
margin account with a securities brokerage firm. There is no assurance that such arrangement will be available in the future. If
we are unable to borrow funds to make qualifying investments, we may no longer qualify as a RIC. We would then be subject to corporate
income tax on the Fund&rsquo;s net investment income and realized capital gains, and distributions to stockholders would be subject
to income tax as ordinary dividends. Failure to continue to qualify as a RIC could be material to us and 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-indent: 24.5pt">As of December 31, 2013, we borrowed
$15.0 million to make qualifying investments 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 $15.2 million.
The U.S. Treasury bills were sold on January 2, 2014 and the total amount borrowed was repaid at that time. The margin interest
was paid on January 22, 2014.</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">We had no RIC borrowings or restricted
cash as of December 31, 2012.</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"><B>Economic Conditions</B>&mdash; Economic
conditions since the second quarter of 2008 and market dislocations have resulted in the availability of debt and equity capital
declining significantly for smaller enterprises. Generally, the limited amount of available debt financing has shorter maturities,
higher interest rates and fees, and more restrictive terms than debt facilities available in the past. In addition, during 2013
the price of our common stock continued to trade well below our net asset value, thereby making it undesirable to issue additional
shares of our common stock. Because of these challenges, our near-term strategies shifted from originating debt and equity investments
to preserving liquidity necessary to meet our operational needs. Key initiatives that we undertook over the past several years
to provide necessary liquidity included monetizations and the utilization of non-cash resources of the Fund to make portfolio investments.
Although there can be no assurances that such initiatives will be sufficient, we believe we have sufficient liquidity to meet our
2014 operating requirements.</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"><B>(3) SIGNIFICANT 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-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-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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Valuation of Investments</B>&mdash;Portfolio
investments are carried at fair value with the net change in unrealized appreciation or depreciation included in the determination
of net assets. Valuations of portfolio securities are performed in accordance with accounting principles generally accepted in
the United States of America and the financial reporting policies of the Securities and Exchange Commission (&ldquo;SEC&rdquo;).
The applicable methods prescribed by such principles and policies are described below:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Publicly-traded portfolio securities</I>&mdash;Investments
in companies whose securities are publicly traded are generally valued at their quoted market price at the close of business on
the valuation date.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Privately-held portfolio securities</I>&mdash;The
fair value of investments for which no market exists is determined on the basis of procedures established in good faith by our
Board of Directors. As a general principle, the current &ldquo;fair value&rdquo; of an investment would be the amount we might
reasonably expect to receive for it upon its current sale, in an orderly manner. Appraisal valuations are necessarily subjective
and the estimated values arrived at by the Fund may differ materially from amounts actually received upon the disposition of portfolio
securities.</P>


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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt"><I>Thinly Traded and Over-the-Counter
Securities</I>&mdash;Generally, we value securities that are traded in the over-the-counter market or on a stock exchange at the
average of the prevailing bid and ask prices on the date of the relevant period end. However, we may apply a discount to the market
value of restricted or thinly traded public securities to reflect the impact that these restrictions have on the value of these
securities. We review factors, including the trading volume, total securities outstanding and our percentage ownership of securities
to determine whether the trading levels are active (Level 1) or inactive (Level 2) or unobservable (Level 3). As of December 31,
2013, these securities represented 11.0% of our investments in portfolio securities. We utilized independent pricing services with
certain of our fair value estimates. To corroborate &ldquo;bid/ask&rdquo; quotes from independent pricing services, we perform
a market-yield approach to validate prices obtained or obtain other evidence.</P>

<P STYLE="font: 10pt/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">During the first twelve months after
an investment is made, the original investment value is utilized to determine the fair value unless significant developments have
occurred during this twelve month period which would indicate a material effect on the portfolio company (such as results of operations
or changes in general market conditions). After the twelve month period, or if material events have occurred within the twelve
month period, we consider a two step process when appraising investments of privately held companies. The first step involves determining
the enterprise value of the portfolio company. During this step, we consider three different valuation approaches: a market approach,
an income approach, and an asset approach. The particular facts and circumstances of each portfolio company determine which approach,
or combination of approaches, will be utilized. The second step when appraising equity investments of privately held companies
involves allocating value to the various debt and equity securities of the company. We allocate value to these securities based
on their relative priorities. For equity securities such as warrants, we may also incorporate alternative methodologies including
the Black-Scholes Option Pricing Model.</P>

<P STYLE="font: 10pt/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"><B>Market approach</B> &ndash; The market
approach typically employed by Management calculates the enterprise value of a company as a multiple of earnings before interest,
taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;) generated by the company for the trailing twelve month period. Adjustments
to the company&rsquo;s EBITDA, including those for non-recurring items, may be considered. Multiples are estimated based on current
market conditions and past experience in the private company marketplace and are subjective in nature. We will apply liquidity
and other discounts as deemed appropriate to equity valuations where applicable. We may also use, when available, third-party transactions
in a portfolio company&rsquo;s securities as the basis of valuation (the &ldquo;private market method&rdquo;). The private market
method will be used only with respect to completed transactions or firm offers made by sophisticated, independent investors.</P>

<P STYLE="font: 10pt/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"><B>Income approach</B> &ndash; The income
approach typically utilized by our Management calculates the enterprise value of a company utilizing a discounted cash flow model
incorporating projected future cash flows of the company. Projected future cash flows consider the historical performance of the
company as well as current and projected market participant performance. Discount rates are estimated based on current market conditions
and past experience in the private company marketplace and are subjective in nature. We will apply liquidity and other discounts
as deemed appropriate to equity valuations where applicable.</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"><B>Asset approach</B> &ndash; We consider
the asset approach to determine the fair value of significantly deteriorated investments demonstrating circumstances indicative
of a liquidation analysis. This situation may arise when a portfolio company: 1) cannot generate adequate cash flow to meet the
principal and interest payments on its indebtedness; 2) is not successful in refinancing its debt upon maturity; 3) we believe
the credit quality of a loan has deteriorated due to changes in the business and underlying asset or market conditions may result
in the company&rsquo;s inability to meet future obligations; or 4) the portfolio company&rsquo;s reorganization or bankruptcy.
Consideration is also given as to whether a liquidation event would be orderly or forced.</P>

<P STYLE="font: 10pt/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">We base adjustments upon such factors
as the portfolio company&rsquo;s earnings, cash flow and net worth, the market prices for similar securities of comparable companies,
an assessment of the company&rsquo;s current and future financial prospects and various other factors and assumptions. In the case
of unsuccessful or substantially declining operations, we may base a portfolio company&rsquo;s fair value upon the company&rsquo;s
estimated liquidation value. Fair valuations are necessarily subjective, and our estimate of fair value may differ materially from
amounts actually received upon the disposition of its portfolio securities. Also, any failure by a portfolio company to achieve
its business plan or obtain and maintain its financing arrangements could result in increased volatility and result in a significant
and rapid change in its value.</P>

<P STYLE="font: 10pt/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">Our general intent is to hold our loans
to maturity when appraising our privately held debt investments. As such, we believe that the fair value will not exceed the cost
of the investment. However, in addition to the previously described analysis involving allocation of value to the debt instrument,
we perform a yield analysis to determine if a debt security has been impaired. Certificates of deposit purchased by the Fund generally
will be valued at their face value, plus interest accrued to the date of valuation.</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/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">The Audit Committee of the Board of
Directors may engage independent, third-party valuation firms to conduct independent appraisals and review management&rsquo;s preliminary
valuations of each privately-held investment in order to make their own independent assessment. Any third-party valuation data
would be considered as one of many factors in a fair value determination. The Audit Committee then would recommend the fair values
for all privately-held securities based on all relevant factors to the Board of Directors for final approval.</P>

<P STYLE="font: 10pt/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">Because of the
inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market values,
amounting to $13.3 million and $9.0 million as of December 31, 2013 and 2012, respectively, our fair value determinations may
materially differ from the values that would have been used had a ready market existed for the securities. As of December 31,
2013, one of our portfolio investments, consisting of 73,666 ordinary shares of OPG, was publicly listed on the NYSE Euronext
Paris Exchange, along with &euro;1,200,790 in newly-issued 6-year OPG Notes, however, as of December 31, 2013, there had been
no recent trading activity in the OPG Notes.</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">On a daily basis, we adjust our net
asset value for the changes in the value of our publicly held securities, if applicable, and material changes in the value of private
securities, generally determined on a quarterly basis or as announced in a press release, and reports those amounts to Lipper Analytical
Services, Inc. Weekly and daily net asset values appear in various publications, including <I>Barron&rsquo;s </I>and <I>The Wall
Street Journal</I>.</P>

<P STYLE="font: 10pt/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"><B>Deferred Offering Costs&mdash;</B>Accumulation
of costs related to the offering whereby we will sell additional shares or rights to acquire shares at a market price that may
have been below net asset value. The main components of the costs are legal fees and consultant&rsquo;s fees specifically related
to the offering.</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">Offering costs of $0.4 million were
expensed at September 30, 2011, due to the delay in completing an offering to issue new shares.</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"><B>Foreign Exchange&mdash;</B>We record
temporary changes in foreign exchange rates of portfolio securities denominated in foreign currencies as changes in fair value.
These changes are therefore reflected as unrealized gains or losses until realized.</P>

<P STYLE="font: 10pt/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"><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-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 EQS 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.</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"><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 it recognizes any additional interest
income.</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"><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.</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"><B>Cash Flows</B>&mdash;For purposes
of the Statements of Cash Flows, we consider all highly liquid temporary cash investments purchased with an original maturity of
three months or less to be cash equivalents. We include our investing activities within cash flows from operations. We exclude
&ldquo;Restricted Cash &amp; 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-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Income Taxes</B>&mdash;We intend
to comply with the requirements of the Internal Revenue Code necessary 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 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"></P>

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<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">All corporations incorporated in the
State of Delaware are required to file an Annual Report and to pay a franchise tax. As a result, we paid Delaware Franchise tax
in the amount of $0.01 million, $0.01 million and $0.01 million for the years ended December 31, 2013, December 31, 2012 and December
31, 2011, 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-indent: 24.5pt">Texas margin tax applies to legal entities
conducting business in Texas. The margin tax is based on our Texas sourced taxable margin. The tax is calculated by applying a
tax rate to a base that considers both revenue and expenses and therefore has the characteristics of an income tax. As a result,
we did not owe state income tax for the years ended December 31, 2013,  December 31, 2012, and December 31, 2011 respectively.</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"><B>Fair Value Measurement</B>&mdash;Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. We have categorized all investments recorded at fair value based upon the
level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, directly related to the amount
of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:</P>

<P STYLE="font: 10pt/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">Level 1&mdash;Inputs are unadjusted,
quoted prices in active markets for identical assets at the measurement date. The types of assets carried at Level 1 fair value
generally are equities listed in active markets.</P>

<P STYLE="font: 10pt/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">Level 2&mdash;Inputs (other than quoted
prices included in Level 1) are either directly or indirectly observable for the asset in connection with market data at the measurement
date and for the extent of the instrument&rsquo;s anticipated life. Fair valued assets that are generally included in this category
are warrants held in a public company.</P>

<P STYLE="font: 10pt/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">Level 3&mdash;Inputs reflect our best
estimate of what market participants would use in pricing the asset at the measurement date. It includes prices or valuations that
require inputs that are both significant to the fair value measurement and unobservable. Generally, assets carried at fair value
and included in this category are debt, warrants and/or other equity investments held in a private company. As previously described,
we consider a two step process when appraising investments of privately held companies. The first step involves determining the
enterprise value of the portfolio company. During this step, we consider three different valuation approaches: a market approach,
an income approach, and a cost approach. The particular facts and circumstances of each portfolio company determine which approach,
or combination of approaches, will be utilized. The second step when appraising equity investments of privately held companies
involves allocating value to the various debt and equity securities of the company. We allocate value to these securities based
on their relative priorities. For equity securities such as warrants, we may also incorporate alternative methodologies including
the Black-Scholes Option Pricing Model. Yield analysis is also employed to determine if a debt security has been impaired.</P>

<P STYLE="font: 10pt/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">We will record unrealized depreciation
on investments when we determine that the fair value of a security is less than its cost basis, and will record unrealized appreciation
when we determine that the fair value is greater than its cost basis.</P>

<P STYLE="font: 10pt/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">As of December 31, 2013, investments
measured at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input
to the valuations:</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: normal 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5"><FONT STYLE="font-size: 9pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="13" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt"><B>Fair
    Value Measurements as of December 31, 2013</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt"><B>(in thousands)</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; font-style: italic"><FONT STYLE="font-size: 9pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Total</B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Quoted
    Prices in Active Markets for Identical Assets <BR>(Level 1)</FONT></TD><TD STYLE="font-size: 8pt; font-weight: bold; text-decoration: none; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-decoration: none; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Significant
    Other Observable Inputs <BR>(Level 2)</FONT></TD><TD STYLE="font-size: 8pt; font-weight: bold; text-decoration: none; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Significant
    Unobservable Inputs <BR>(Level 3)</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-decoration: none; text-align: center; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="text-align: left"><FONT STYLE="font-size: 9pt">Assets</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: center"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 9pt">&nbsp;&nbsp;Investments:</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 9pt">Control investments</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">11,105</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 3%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 9pt">11,105</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-size: 9pt">Affiliate investments</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">250</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">250</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-size: 9pt">Non-affiliate investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">2,149</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">169</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">1,980</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">Total investments</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">13,504</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">169</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">13,335</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary
    cash investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">15,000</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">15,000</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">Total investments and temporary cash investments</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">28,504</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">15,169</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 9pt">13,335</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of December 31, 2012, investments measured
at fair value on a recurring basis are categorized in the tables below based on the lowest level of significant input to the valuations:</P>

<P STYLE="font: 10pt/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: bottom">
    <td><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <TD COLSPAN="11" STYLE="border-bottom: black 1pt solid; font: 8pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Fair
    Value Measurements As of December 31, 2012</B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B><I>(in
    thousands)</I></B></FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Total</B></FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Quoted
    Prices in Active Markets for Identical Assets (Level 1)</B></FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-decoration: none; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 9pt"><B>Significant
Other Observable Inputs</B></FONT></P>
                                                                                                                                         <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 9pt"><B><FONT STYLE="font-family: Times New Roma</P>
                                                                                                                                         <P STYLE=">(Level 2)</FONT></B></FONT></P></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 9pt Times New R</P>
                                                                                                  <P STYLE="><B>Significant </B></FONT></P>
                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 9pt Times New R</P>
                                                                                                  <P STYLE="><B>Unobservable Inputs</B></FONT></P>
                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 9pt Times New R</P>
                                                                                                  <P STYLE="><B>(Level 3</B></FONT><B><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></B></P></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Assets</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Investments:</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 45%; padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Control
    investments</FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="width: 10%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">7,419</FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="width: 2%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="width: 10%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="width: 2%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="width: 10%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="width: 2%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="width: 10%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">7,419</FONT></td>
    <td style="width: 1%"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Affiliate
    investments</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">150</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">150</FONT></td>
    <td><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Non-affiliate
    investments</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"></FONT></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1,663</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"></FONT></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">238</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"></FONT></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"></td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1,425</FONT></td>
    <td style="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Total
    investments</FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">9,232</FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">238</FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">8,994</FONT></td>
    <td style="padding-bottom: 2.5pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td></tr>
</table>
<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following table provides a reconciliation
of fair value changes during 2013 for all investments for which we determine fair value using significant unobservable (Level 3)
inputs:</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="23" STYLE="text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt"><B>Fair value measurements
    using significant unobservable inputs (Level 3)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">(in thousands)</FONT></TD><TD STYLE="font-weight: bold; font-style: italic; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 9pt">Control
    Investments</FONT></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Affiliate
    Investments</FONT></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Non-affiliate
    Investments</FONT></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Total</FONT></TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">Fair value as of December&nbsp;31, 2012</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">7,419</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">150</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,425</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,994</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</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">&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">(9,795</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,795</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Change in unrealized depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,376</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,859</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,335</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Purchases of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">310</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">500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">810</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">Proceeds from sales/dispositions</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">(9</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">(9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Fair value as of December 31, 2013</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">11,105</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">250</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,980</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13,335</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></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: 0.5in">The following table provides a reconciliation
of fair value changes during 2012 for all investments for which we determine fair value using significant unobservable (Level 3)
inputs:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td colspan="15" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Fair
    value measurements using significant unobservable inputs (Level 3)</B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B><I>(in
    thousands)</I></B></FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Control
    Investments</B></FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Affiliate
    Investments</B></FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Non-affiliate
    Investments</B></FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Total</B></FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 40%; padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Fair value as of December 31, 2011</font></td>
    <TD STYLE="width: 3%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 13%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">13,298</font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 10%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">150</font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 10%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,734</font></td>
    <TD STYLE="width: 1%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="width: 10%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,182</font></td>
    <TD STYLE="width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Realized losses</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(5,187</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash;</font><font style="font: 12pt Times New Roman, Times, Serif"> </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(5,187</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Change in unrealized depreciation</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,996</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(282</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,714</font></td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Purchases of portfolio securities</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,939</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">301</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,240</font></td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Proceeds from sales/dispositions</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(9,627</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(9,627</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Transfers in (out) of Level 3</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(4,328</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(4,328</font></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Fair value as of December 31, 2012</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,419</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">150</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,425</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,994</font></td>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</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-indent: 24.5pt"><B>Significant Unobservable Inputs</B>
&mdash; Our investment portfolio is not composed of homogeneous debt and equity securities that can be valued with a small number
of inputs. Instead, the majority of our investment portfolio is composed of complex debt and equity securities with distinct contract
terms and conditions. As such, our valuation of each investment in our portfolio is unique and complex, often factoring in numerous
different inputs, including historical and forecasted financial and operational performance of the portfolio company, project cash
flows, market multiples comparable market transactions, the priority of our securities compared with those of other investors,
credit risk, interest rates, independent valuations and reviews and other inputs.</P>

<P STYLE="font: 10pt/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>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">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 December
31, 2013:</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Range</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Valuation Techniques</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Unobservable Inputs</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Minimum</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maximum</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 31%; text-align: left">Secured and subordinated debt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">4,869</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: center">Yield Analysis</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 21%; text-align: center">Market interest rate</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-size: 8pt; text-align: right">2.5</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; font-size: 8pt; text-align: right">10.5</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Yield Analysis</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Discount for lack of marketability</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">2.5</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">12.0</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Pending Transaction</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Discount for lack of marketability</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">7.2</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">25</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Pending Transaction</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">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">12</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">171</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">New Transation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Discount</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">0</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">100</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Pending Transaction</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Discount</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">0</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">100</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Asset Approach</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Recovery Rate</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">0</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">100</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD 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">8,216</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">Income/Market Approach</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt">Reserve Adjustment Factors</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">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="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">100</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">13,335</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"></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></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(4) RELATED PARTY TRANSACTIONS AND AGREEMENTS</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-indent: 24.5pt">Except as noted below, as compensation
for services to the Fund, each Independent Director receives an annual fee of $20,000 paid quarterly in arrears, a fee of $2,000
for each meeting of the Board of Directors attended in person, a fee of $1,000 for participation in each telephonic meeting of
the Board and a fee of $1,000 for each committee meeting attended, and reimbursement of all out-of-pocket expenses relating to
attendance at such meetings. A quarterly fee of $15,000 is paid to the Chairman of the Audit Committee and a quarterly fee of $3,750
is paid to the Chairman of the Independent Directors. We may also pay other one-time or recurring fees to members of our Board
of Directors in special circumstances. None of our interested directors receive annual fees for their service on the Board of Directors.</P>

<P STYLE="font: 10pt/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>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In June, 2010, the Fund ratified and approved the use of
A+ Filings, LLC (&ldquo;A+ Filings&rdquo;) to file its reports with the Securities and Exchange Commission. The Fund incurred $7,000
and $14,000 in services rendered by A+ Filings for the years ended December 31, 2012 and 2011, respectively. Mr. Kenneth I. Denos,
Secretary of the Fund, held a majority of the voting shares of A+ Filings; however, Mr. Denos sold his interest in A+ Filings in
March 2013.</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-indent: 24.5pt">In November, 2011, Equus Energy, LLC,
a wholly-owned subsidiary of the Fund, entered into a consulting agreement with Global Energy Associates, LLC (&ldquo;Global Energy&rdquo;)
to provide consulting services for energy related investments. Henry W. Hankinson, Director, is a managing partner and co-founder
of Global Energy. For each of the years ended December 31, 2013 and 2012, payments to Global Energy totaled $75,000.</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">In respect of services provided
to the Fund by members of the Board not in connection with their roles and duties as directors, the Fund pays a rate of $250 per
hour for services rendered.&nbsp; In connection with services rendered by Kenneth I. Denos, Secretary and Chief Compliance Officer
of the Fund, the Fund incurred $344,562 as of December 31, 2013, which is included as compensation expense.&nbsp; In connection
with services rendered by Mr. Denos in 2012, the Fund incurred $249,813 which is included in compensation expense as of December
31, 2012 statement of operations.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White"><B>(5) FEDERAL INCOME
TAX MATTERS</B></FONT></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">As a Regulated Investment Company,
our tax liability is dependent upon whether an election is made to distribute taxable investment income and capital gains above
any statutory requirement. As we incurred losses in 2011, 2012 and 2013 no distributions were required or made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Internal Revenue Service approved
our request, effective October&nbsp;31, 1998, to change our year-end for determining capital gains for purposes of Section&nbsp;4982
of the Internal Revenue Code from December&nbsp;31 to October&nbsp;31.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">For the year ended December 31, 2013,
we have a net investment loss for book purposes of $3.1 million and $3.1 million for tax purposes. During 2013, we had a net capital
loss for book purposes of $9.8 million and a net capital loss for tax purposes of $9.8 million for tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The aggregate book cost of
investments as of December&nbsp;31, 2013 was $17.5 million. These investments had unrealized appreciation of approximately
$1.8 million and unrealized depreciation of $5.8 million for book purposes, resulting in unrealized depreciation of
approximately $4.0 million. The Fund had unrealized appreciation of approximately $1.9 million and unrealized depreciation of
approximately $2.9 million for tax purposes, resulting in net unrealized depreciation of approximately $1 million as of
December&nbsp;31, 2013. As of December 31, 2013, we had approximately $ 32.5 million in Capital losses of which $15.6 million
will begin expiring after 2017, and the remaining $16.9 million can be carried over indefinitely.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt/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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">The Return of Capital Statement of Position,
for the three years ended December 31, 2013, includes a reclassification for permanent book to tax differences of less than $1,000
in each year. These differences were primarily due to the tax exempt interest income received. The adjustments resulted in a net
decrease in accumulated earnings. The reclassification has no effect on net assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">For the year ended December 31, 2012,
we have a net investment loss for book purposes of $2.7 million and $3.2 million for tax purposes. During 2012, we had a net capital
loss for book purposes of $2.8 million and a net capital loss for tax purposes of $6.3 million for tax purposes. The aggregate
book cost of investments as of December&nbsp;31, 2012 was $23.3 million. Such investments had unrealized appreciation of approximately
$0 .8 million and unrealized depreciation of $18.0 million for book purposes, resulting in net unrealized depreciation of approximately
$17.2 million. The Fund had unrealized appreciation of approximately $1.0 million and unrealized depreciation of approximately
$15.2 million for tax purposes, resulting in net unrealized depreciation of approximately $14.2 million as of December&nbsp;31,
2012. As of December 31, 2012, we had approximately $22.7 million in Capital losses of which $15.6 million will begin expiring
after 2017, and the remaining $7.1 million can be carried over indefinitely.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">For the year ended December 31, 2011,
we have a net investment loss for book purposes of $3.5 million and $4.9 million for tax purposes. During 2011, we had a net capital
loss for book purposes of $10.9 million and a net capital loss for tax purposes of $0.8 million for tax purposes. The aggregate
book cost of investments as of December&nbsp;31, 2011 was $33.6 million. Such investments had unrealized appreciation of approximately
$ 2.7 million and unrealized depreciation of $20.1 million for book purposes, resulting in net unrealized depreciation of approximately
$17.4 million. The Fund had unrealized appreciation of approximately $2.8 million and unrealized depreciation of approximately
$17.1 million for tax purposes, resulting in net unrealized depreciation of approximately $14.3 million as of December&nbsp;31,
2011. As of December 31, 2011, we had approximately $16.4 million in Capital losses of which $15.6 million will expire after 2017,
and the remaining $0.8 million can be carried over indefinitely.</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">We believe that any aggregate exposure
for uncertain tax positions should not have a material impact on our financial statements as of December 31, 2013 or December 31,
2012. An uncertain tax position is measured as the largest amount of tax return benefits that does not have a greater than 50%
likelihood of being realized upon ultimate settlement. We have not recorded an adjustment to our financial statements related to
any uncertain tax positions. We will continue to evaluate our tax positions and recognize any future impact of uncertain tax positions
as a charge to income in the applicable period in accordance with promulgated standards.</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">The Fund&rsquo;s accounting policy related
to income tax penalties and interest assessments is to accrue for these costs and record a charge to expenses during the period
that the Fund records a benefit for an uncertain tax position until resolution is achieved with the taxing authorities or the expiration
of the applicable statute of limitations.</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">The Fund&rsquo;s accounting policy
related to income tax penalties and interest assessments is to accrue for these costs and record a charge to expenses during the period that the Fund takes an uncertain tax position through resolution with the taxing authorities or
expiration of the applicable statute of limitations.</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">All of the Fund&rsquo;s
federal and state income tax returns for 2009 through 2012 remain open to examination. We believe that there are no tax
positions taken or expected to be taken that would significantly increase or decrease unrecognized tax benefits within 12
months of the reporting date.</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></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(6) CONTRACTUAL OBLIGATIONS </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-indent: 24.5pt">We have operating leases for office
space and office equipment. The lease for office space expires in 2014. The lease also contains a provision for certain annual
rental escalations. Rent expense inclusive of common area maintenance costs was $85,000,
$84,000, and $81,000 for each of the years ended December 31, 2013, 2012 and 2011, respectively. Future minimum lease payments
under the operating lease as of December 31, 2013 for the year ended December 31, 2014 is $42,000.</P>

<P STYLE="font: 10pt/115% 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">As of December 31, 2013, we had no outstanding
commitments to our portfolio company investments.</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>(7) DIVIDENDS </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-indent: 24.5pt">On March 24, 2009, we announced that
we suspended our managed distribution policy and payment of quarterly distributions for an indefinite period. We will continue
to pay out net investment income and/or realized capital gains, if any, on an annual basis as required under the Investment Company
Act of 1940.</P>

<P STYLE="font: 10pt/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"><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"><B>(8) PORTFOLIO SECURITIES </B></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>2013 Portfolio Activity</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-indent: 24.5pt">During the year ended December 31, 2013,
we had investment activity of $0.8 million in two portfolio companies. We capitalized consulting expenses of $0.3 million relating
to Spectrum Management. We made a short-term working capital loan of $0.5 million to Security Monitor Holdings, LLC (&ldquo;SMH&rdquo;).
SMH is a company which specializes in managing and improving operations of distressed companies.</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">The following table includes significant investment activity
during the year ended December 31, 2013 (in thousands):</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: right">&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">New Investments</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">Existing Investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Portfolio Company</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">Cash</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">Non-Cash</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">Follow-On</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">PIK</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD 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><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: 35%; text-align: left">Security Monitor Holdings, Inc.</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</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: 9%; text-align: right">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-bottom: 1pt">Spectrum Management, LLC</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">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">&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">310</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: 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></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">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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">310</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">810</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></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-indent: 24.5pt">During 2013, we realized net capital
losses of $9.8 million, including the following significant transactions:</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">Type</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Transaction Type</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">Realized Gain (Loss)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">The Bradshaw Group</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Business products and services</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,795</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Infinia Corporation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">Alternative Energy</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Disposition</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(8,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt; width: 18%">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt; width: 31%">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="font-family: Helv; text-align: left; vertical-align: bottom; width: 10%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Helv; text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt; width: 16%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; width: 15%">(9,795</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; width: 1%">)</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2013, we recorded a net
change in unrealized depreciation of $13.3 million, to a net unrealized depreciation of $3.9 million at December 31, 2013.
Such change in depreciation resulted primarily from the following changes:</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="width: 1%; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="width: 94%; padding-bottom: 6pt; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized loss of our holdings in Bradshaw of $1.8 million in connection with Bradshaw&rsquo;s sale of all of its assets;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(ii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 6pt; padding-left: 4.3pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized loss of our holdings in Infinia of $8.0 million as a result of the liquidation of Infinia due to bankruptcy proceedings initiated by the company;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 6pt; padding-left: 4.3pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in the fair value of Equus Energy of $1.1 million due improved operational results and an increase in proved developed producing reserves;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 6pt; padding-left: 4.3pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in the fair value of our holdings in Spectrum of $2.5 million due to continued stability in operations resulting in the utilization of a market approach in determining fair value, in lieu of an asset approach applying a liquidation analysis used in prior quarters; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(v)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 6pt; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Increase in the fair value of our holdings in PalletOne of $0.1 million due to improved operations.</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"><B>2012 Portfolio Activity</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-indent: 24.5pt">During the year ended December 31, 2012,
we received $6.4 million from the disposal of the Fund&rsquo;s 55% fully-diluted equity interest in Sovereign, together with the
Fund&rsquo;s promissory note and all interest as accrued interest. We also received $5.3 million from the disposal of the Fund&rsquo;s
34.2% equity interest in ConGlobal, together with the Fund&rsquo;s promissory note and all interest as accrued interest.</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>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On May 7, 2012, holders of 72.5% of
all OG bondholders approved a joint restructuring of certain bond debt of OG and its parent company, OPG. Pursuant to such restructuring,
approximately 84.5% of the Orco Germany bonds held by each bondholder were converted into <I>Obligations Convertibles en Actions
</I>(&ldquo;OCA&rdquo;) on May 9, 2012. The OCA were converted into an aggregate of 26,209,613 OPG shares which were delivered
in two tranches. The first tranche, consisting of 18,361,540 OPG shares, was delivered in May 2012, of which the Fund received
1,102,455 OPG shares. The second tranche, consisting of 7,848,073 OPG shares, was received in October 2012. Also in October, the
remaining 15.5% of the Orco Germany bonds held by each bondholder was converted into new 6-year OPG Notes with a face value of
&euro;20.0 million bearing cash and PIK interest each at 5% per annum, which interest percentages may be reduced over time upon
timely repayments of principal tranches during a four-</P>




<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>


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<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: 0">year period commencing in 2015. Of the total amount of OPG Notes issued,
Equus received OPG Notes in the face amount of &euro;1,200,790. On October 15, 2012, we announced the sale of 1,500,000 of our
1,573,666 OPG shares, where we received net cash proceeds of &euro;3.8 million [$4.9 million]. As of December 31, 2012, we held
73,666 OPG shares, and &euro;1,200,790 OPG Notes.</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">During the year ended December 31, 2012,
we had investment activity of $7.2 million in two portfolio companies. We made a follow-on investment of $6.8 million in Equus
Energy, LLC. The restructuring of the Orco Germany bonds noted above resulted in the capitalization of $0.3 million accrued interest
received in the form of additional portfolio securities (PIK). We capitalized legal and consulting expenses of $0.1 million relating
to Spectrum.</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">The following table includes significant investment activity
during the year ended December 31, 2012 (in thousands):</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="15" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Investment Activity</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>New Investments</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Existing Investments</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Cash</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Non-Cash</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Follow-On</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>PIK</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Equus Energy, LLC</font></td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,800</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,800</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="width: 40%; padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Orco Property Group S.A.</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">301</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">301</font></td>
    <td style="width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Spectrum Management, LLC</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">139</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">139</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,939</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">301</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,240</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</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-indent: 24.5pt">During 2012, we realized net capital
losses of $2.8 million, including the following significant transactions:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">Type</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Transaction Type</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">Realized Gain (Loss)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">ConGlobal Industries Holding, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Shipping products and services</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Control</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(4,114</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Sovereign Business Forms, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Business products and services</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Control</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,073</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Orco Property Group</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Real Estate</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,318</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">Various others</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Disposition</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">72</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: right; padding-bottom: 2.5pt; width: 32%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 27%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom; width: 8%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; vertical-align: bottom; width: 1%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 12%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; width: 13%">(2,797</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; width: 1%">)</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></B></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">During 2012, we recorded a net
change in unrealized depreciation of $0.2 million, to a net unrealized depreciation of $17.2 million at December 31, 2012.
Such change in depreciation resulted primarily from the following changes:</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized loss of our holdings in ConGlobal of $1.6 million upon the divestiture of the investment;</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(ii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized loss of our holdings in Sovereign of $0.6 million upon the divestiture of the investment;</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(iii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">The restructuring of the 8,890 Orco Germany bonds resulted in the Fund holding 1,573,666 ordinary shares of OPG and &euro;1,200,790 newly-issued 6-year OPG notes. The capitalization of $0.3 million accrued interest and the subsequent sale of 1.5 million shares of OPG shares in October 2012 resulted in a decrease in fair value our holdings in of OPG of $1.8 million; and</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(iv)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Decrease in the fair value of Equus Energy, LLC of $0.2 million due to working capital expenditures.</font></td></tr>
</table>
<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>2011 Portfolio Activity</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-indent: 24.5pt">During the year ended December 31, 2011,
we received $0.4 million from Sovereign in the form of principal payments and a distribution from Equus Media Development Company,
LLC in the amount of $1.0 million. We sold our promissory notes in 1848 Capital Partners, LLC , Big Apple Entertainment Partners,
LLC, and London Bridge and certain assets of Riptide in which we hold a 64.67% membership interest. All of these assets were sold
to Capital Markets Acquisition Partners, LLC for a combined price of $10 million, with $9.8 million allocated to the promissory
notes held by the Fund and $0.2 million to Riptide. We allocated the proceeds to the promissory notes resulting in a realized loss
of approximately $0.9 million at London Bridge. In addition, the monies provided to Riptide were sufficient to satisfy its outstanding
liabilities, resulting in a value of $0. We also received $0.8 million in connection with the sale and redemption of our membership
interest in RP&amp;C International Investments LLC.</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>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>


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<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: 0">During the year ended December 31, 2011,
we had investment activity of $3.7 million in three portfolio companies. We made a follow-on investment of $0.3 million in Spectrum.
On April 27, 2011, we announced that we had entered into two separate transactions involving the purchase of an aggregate of 11,408
4% bonds due May 2012 (&ldquo;Bonds&rdquo;) issued by Orco Germany S.A., a commercial and multi-family residential real estate
holding company and developer based in Berlin. The consideration provided to the selling bondholders consisted of an aggregate
of 1,700,000 newly issued shares of common stock of the Fund. These shares are unregistered under the Securities Act of 1933.
We received 8,890 of the Bonds on April 27, 2011. On May 9, 2011, one of these agreements was amended and restated to provide
for an additional 45 days to deliver 2,518 of the Bonds in exchange for providing to the Fund approximately $1.6 million in cash
as security for such delivery. As the remaining bonds were not delivered by the specified date, the cash collateral became free
and clear property of the Fund on June 23, 2011. On September 30, 2011, we formed Equus Energy 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.</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">The following table includes significant
investment activity during the year ended December 31, 2011 (in thousands):</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="15" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Investment Activity</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>New Investments</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Existing Investments</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Cash</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Non-Cash</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Follow-On</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>PIK</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 40%; padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Orco Germany S.A</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">67</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,016</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,083</font></td>
    <td style="width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Spectrum Management, LLC</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">325</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">325</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">Equus Energy, LLC</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">250</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">250</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">317</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,016</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">325</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">&mdash; </font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,658</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</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-indent: 24.5pt">During 2011, we realized net capital
losses of $10.9 million, including the following significant transactions (in thousands):</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 4.5pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top">Type</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Transaction Type</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">Realized Gain (Loss)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Riptide Entertainment, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: top">Control</TD><TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(10,074</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">London Bridge Entertainment Partners Ltd</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Entertainment and leisure</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: top">Non-affiliate</TD><TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(992</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">RP&amp;C International Investments LLC</TD><TD>&nbsp;</TD>
    <TD>Healthcare</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: top">Affiliate</TD><TD STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">138</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">Various others</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Disposition</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">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 38%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 21%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top; width: 1%">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: top; width: 8%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; vertical-align: top; width: 1%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt; width: 12%">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; width: 13%">(10,930</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left; width: 1%">)</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 4.5pt 0 0; color: Red"><B></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-indent: 24.5pt">During 2011, we recorded a net
change in unrealized depreciation of $9.9 million, to a net unrealized depreciation of $17.4 million at December 31, 2011.
Such change in unrealized depreciation resulted primarily from the following changes:</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-bottom: 6pt; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Decline in fair market value of our holdings in ConGlobal $2.6 million due to the decline in operating performance;</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(ii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized depreciation of our holdings in London Bridge Entertainment Partners, Ltd. of $0.8 million due to the sale of the promissory note;</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(iii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Increase in the fair market value of our holding in Orco Germany S.A. bonds of $2.7 million due to the difference in the market price of Equus shares used as consideration for the bonds on the date of acquisition offset by the change in Euro-USD exchange rate; </font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(iv)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Increase in the fair market value of our holding in PalletOne of $0.1 million due to steady improvement in operating performance and indications of value from independent third parties;</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(v)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized depreciation to realized depreciation for our holding in Riptide of $10.1 million due to the sale of the promissory notes and the winding up of the entity;</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(vi)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <td style="width: 94%; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Transfer of unrealized appreciation to realized appreciation for our holding in RP&amp;C of $0.1 million due to the maturity of the investment;</font></td></tr>
</table>
<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-bottom: 6pt; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(vii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt">&nbsp;</td>
    <TD STYLE="width: 94%; padding-bottom: 0; padding-left: 4.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">Increase in fair market value of our holding in Sovereign of $0.6 million as Sovereign has seen an upward trend in operating results and has continued to reduce its debt which has resulted in a corresponding increase its equity value;</font></td></tr>
</table>
<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; padding-left: 4.4pt; text-align: right; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(viii)</FONT></TD>
    <TD STYLE="width: 1%; padding-left: 4.4pt">&nbsp;</TD>
    <TD STYLE="width: 94%; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease in fair market value of our holdings in Spectrum of $1.4 million due to the decline in operating performance and the maturity of its funded debts which remain in default; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>





<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0"></P>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B></B></P>

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<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"><TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; padding-left: 4.4pt; text-align: right; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;(ix)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 4.4pt; width: 94%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease in the fair market value of our holdings in Trulite, Inc. of $0.1 due to the lack of progress and inability to achieve sufficient funding with regards to its product development program.</FONT></TD></TR>
</TABLE></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>(9) EQUUS ENERGY, LLC</B></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-indent: 27.5pt">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 in 129 producing and non-producing oil and gas wells. The working interests include
associated development rights of approximately 23,000 acres situated on 13 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: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">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 producing
well interests located in the Conger Field, a productive oil and gas field on the edge of the Permian Basin that has experienced
successful gas and hydrocarbon extraction in multiple formations. Equus Energy, which holds a 50% working interest in each of these
Conger Field wells, 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. Two recompletions in the Conger Field have been effected since the
closing date of the acquisition of the working interests and a third recompletion is planned during the second quarter of 2014,
with additional recompletions anticipated for the remainder of 2014 and beyond. Part of Equus Energy&rsquo;s acreage rights described
above also includes a 50% working interest in possible new drilling to the base of the Canyon formation (appx. 8,500 feet) on 2,400
acres in the Conger Field. Also included in the interests acquired by Equus Energy are working interests of 7.5% and 2.5% in the
Burnell and North Pettus Units, respectively, which collectively comprise approximately 13,000 acres 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"><I>&nbsp;</I></P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><I>Revenue and Income. </I>For
the year ended December 31, 2013. Equus energy&rsquo;s revenue, operating income, and net loss were $2,555,475, $1,314,864, and
$230,306, respectively.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><I>Capital Expenditures</I>.
Since the effective date of the acquisition of the working interests described above (Sept. 1, 2012), Equus Energy has
invested approximately $832,811 in respect of the following four projects on two properties, collectively resulting in an
estimated 29,000 additional BOE to Equus Energy&rsquo;s proved developed producing reserves based on a reserve report
provided to Equus Energy by Lee Keeling &amp; Associates, Inc., an independent petroleum engineering firm.</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-indent: 27.35pt"><U>Conger Field (Chevron USA)</U></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-indent: 27.35pt"></P>

<OL START="1" TYPE="1" STYLE="margin-top: 0in">

<UL TYPE="DISC" STYLE="margin-top: 0in">

<LI STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt"><U>Recompletion of the Mahaffey #1 Well ($363,589)</U>.
The recompletion of the Mahaffey #1 gas well to the Wolfcamp shale oil formation was committed by WAOC prior to the date of acquisition
and came on-line in January 2013. For the year ended December 31, 2013, the Mahaffey well generated, net to Equus Energy, approximately
$132,373 and $92,186 in gross revenue and operating income, respectively.</LI>

<LI STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt"><U>Recompletion of the EB Cope #6 Well ($327,253)</U>.
In August 2013, Chevron commenced recompletion of the EB Cope #6 gas well to the Wolfcamp shale oil formation. During the period
since recompletion to December 31, 2013, this well generated, net to Equus Energy, an estimated $242,962 and $208,162 in gross
revenue and operating income, respectively.</LI>

</UL>

</OL>



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"></P>

<OL START="1" TYPE="1" STYLE="margin-top: 0in">




</OL>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><U>Needville Field (Sue Ann Operating)</U></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-indent: 27.35pt"></P>

<OL START="1" TYPE="1" STYLE="margin-top: 0in">

<UL TYPE="DISC" STYLE="margin-top: 0in">

<LI STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 6pt"><U>Drilling of the Hurta #4 Oil Well ($140,420)</U>.
The Hurta #4 well was drilled in February 2013 and came on-line in March 2013. During the year ended December 31, 2013, this well
generated, net to Equus Energy, $294,296 and $262,177 in gross revenue and operating income, respectively. In the future, the well
may be recompleted to an additional zone.</LI>

<LI STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><U>Recompletion of the Hurta #3 Oil Well ($8,360)</U>. The
Hurta #3 well was recompleted in late July 2013. For the period since recompletion to December 31, 2013, this well generated, net
to Equus Energy, $149,371 and $114,912 in gross revenue and operating income, respectively. In the future, the well may be recompleted
to an additional zone.</LI>

</UL>

</OL>



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">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 statement of
assets and liabilities. Our investment in Equus Energy is valued in accordance with our normal valuation procedures and is based
in part on the net values of the underlying assets held by Equus Energy, a</P>



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"></P>

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<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-indent: 0"><FONT STYLE="font-size: 10pt">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.</FONT> 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 we ascribed in our Schedule of Investments
on page 39.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><FONT STYLE="font-size: 10pt">Below
is summarized consolidated financial information for Equus Energy as of December 31, 2013 and December 31, 2012 and for the year
ended December 31, 2013 (in thousands):</FONT><FONT STYLE="font-size: 9pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><FONT STYLE="font-size: 9pt">&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>Consolidated Balance Sheets</U></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; text-indent: 27.5pt; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Book Antiqua, Times, Serif">
<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">December 31, <BR>2013</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, <BR>2012</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">(Unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">(Unaudited)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD 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: rgb(204,238,255)">
    <TD STYLE="width: 63%; padding-left: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">486</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">175</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; padding-left: 10pt">Accounts receivable</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">288</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">453</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 current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">774</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">628</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Oil and gas properties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,700</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,899</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">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">(983</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net oil and 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">6,717</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">6,899</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Total assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,491</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,527</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Liabilities and members' capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: 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">CURRENT 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; padding-left: 10pt">Accounts payable and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">324</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">489</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">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">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">10</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">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">688</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">499</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-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">178</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">173</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total non-current liabilities</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">178</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">173</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total liabilities</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">866</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">672</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Members' capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total members' capital</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">6,625</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">6,855</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; padding-left: 20pt">Total liabilities and members capital</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">7,491</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">7,527</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; text-indent: 27.5pt; color: Red"><B></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-indent: 24.5pt">Revenue and direct operating expenses
for the various oil and gas assets included in the accompanying statements represent the net collective working and revenue interests
acquired by Equus Energy. The revenue and direct operating expenses presented herein relate only to the interests in the producing
oil and natural gas properties and do not represent all of the oil and natural gas operations of all of these properties. Direct
operating expenses include lease operating expenses and production and other related taxes. General and administrative expenses,
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 revenues and direct operating expenses because the allocation
of certain expenses would be arbitrary and would not be indicative of what such costs would have been had Equus Energy been operated
as a stand-alone entity.<B> </B>The statements of revenue and direct operating expenses presented are not indicative of the financial
condition or results of operations of Equus Energy on a go forward basis due to changes in the business and the omission of various
operating expenses.</P>


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<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>Consolidated Statement of Operations</U></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; text-indent: 27.35pt; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Book Antiqua, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Year ended</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">December 31, 2013</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">(Unaudited)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: left">Operating revenue</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 18%; text-align: right">2,556</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Direct operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,241</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">Depletion, depreciation, amortization and accretion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">989</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">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">535</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-left: 20pt">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,765</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">(209</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Income tax</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">21</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">(230</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-align: center; text-indent: 27.35pt; color: Red"></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"><B>Critical Accounting Policies for
Equus Energy </B>&ndash; 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-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 and amortization
expense for the Company&rsquo;s oil and gas properties totaled $0.8 million for the year ended December 31, 2013.</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">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 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(a)</FONT></TD><TD><FONT STYLE="font-size: 10pt">As of December 31, 2013, the present value of estimated future net revenue from the projected
production of proved oil and gas reserves, calculated at the simple arithmetic average, first-day-of-the-month prices during the
twelve-month period before the balance sheet date&nbsp; (with consideration of price changes only to the extent provided by contractual
arrangements) and a discount factor of 10%;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(b)</FONT></TD><TD><FONT STYLE="font-size: 10pt">The cost of investments in unproved and unevaluated properties excluded from the costs being
amortized; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt">(c)</FONT></TD><TD><FONT STYLE="font-size: 10pt">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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; 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 for the year ended December 31, 2013 and 2012, 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-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>


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<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"><B><U>Revenue Recognition</U> - </B>Revenue
 recognized for oil and natural gas sales under the sales method of accounting. Under this method, revenue 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 supplementary oil and gas information included
herein.</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><U>Accounting Policy on Depletion</U></B>
- 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: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><U>Asset Retirement Obligations</U></B>
- The fair value of asset retirement obligations are recorded in the period in which they are incurred if a reasonable estimate
of fair value can be made, and the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset.&nbsp;
The fair value of the asset retirement obligation is measured using expected future cash outflows discounted at the Company&rsquo;s
credit-adjusted risk-free interest rate.&nbsp; Fair value, to the extent possible, should include a market risk premium for unforeseeable
circumstances.&nbsp; No market risk premium was included in the Company&rsquo;s asset retirement obligation fair value estimate
since a reasonable estimate could not be made. &nbsp;The liability is accreted to its then present value each period, and the capitalized
cost is depleted or amortized over the estimated recoverable reserves using the units-of-production method.&nbsp; &nbsp;&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(10) RECENT ACCOUNTING PRONOUNCEMENTS </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-indent: 27.35pt">In June 2013, the Financial Accounting
Standards Board (&ldquo;FASB&rdquo;) issued Accounting Standards Update (&ldquo;ASU&rdquo;) 2013-08, Financial Services&mdash;Investment
Companies. ASU 2013-08 provides clarifying guidance to determine if an entity qualifies as an investment company. ASU 2013-08 also
requires an investment company to measure non-controlling interests in other investment companies at fair value. The following
disclosures will also be required upon adoption of ASU 2013-08: (i) whether an entity is an investment company and is applying
the accounting and reporting guidance for investment companies; (ii) information about changes, if any, in an entity&rsquo;s status
as an investment company; and (iii) information about financial support provided or contractually required to be provided by an
investment company to any of its investees. The requirements of ASU 2013-08 are effective for the Company beginning in the first
quarter of 2014. The Company is currently evaluating the impact, if any, that these updates will have on its financial condition
or results of operations.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>(11) SUBSEQUENT EVENT </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-indent: 24.5pt">Our Management performed an evaluation
of the Fund&rsquo;s activity through the date the financial statements were issued, noting the following subsequent event:</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">On January&nbsp;2, 2014, the Fund sold
U.S. Treasury Bills for $15.0 million and repaid its year-end margin loan.</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>(12) SELECTED QUARTERLY DATA </B></P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 0.5pt solid">(in thousands, except per share amounts)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="19" STYLE="text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2013</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">Quarter Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">March 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">June 30,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">September 30,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; text-align: left">Total investment income (loss)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(95</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">14</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">35</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">53</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net investment  loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(771</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,365</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(588</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(407</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,131</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Increase (decrease) in net assets resulting</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 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,460</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,249</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(794</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,845</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">342</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><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">Basic and diluted earnings per share <font style="font: normal 11pt Times New Roman, Times, Serif"><sup>(1)</sup></font></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.14</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.12</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.08</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 9pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>


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<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">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; font: 8pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(in
    thousands, except per share amounts)</B></FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="19" STYLE="font: 9pt/115% Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2012<FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Quarter
    Ended</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Quarter
    Ended</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Quarter
    Ended</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Quarter
    Ended</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="3" STYLE="text-align: center; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0"></P></td></tr>
<tr style="vertical-align: bottom">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">March
    31,</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">June
    30,</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">September
    30,</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">December
    31,</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="3" STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2012</FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2012</FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2012</FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2012</FONT></td>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 36%; padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total
    investment income (loss)</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">227</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">212</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(100</FONT></td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD STYLE="width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">177</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="width: 9%; font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">516</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Net
    investment loss</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(498</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(777</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(685</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(694</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2,654</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase
    (decrease) in net assets resulting</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">from
    operations</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(498</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4,232</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1,754</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1,211</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(5,273</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Basic
    and diluted earnings per share <SUP>(1)</SUP></FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(0.05</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(0.40</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(0.17</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.12</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(0.50</FONT></td>
    <TD STYLE="font: 9pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0"><B><SUP>(</SUP></B><SUP>1)</SUP> The sum of quarterly per
share amount may not equal per share amounts reported for year-to-date periods due to changes in the number of weighted average
shares outstanding and the effects of rounding.</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>(13) LEGAL PROCEEDINGS</B></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"><B>Champion Window Arbitration Claim</B>&mdash;In
January 2006, we sold our 31.5% ownership interest in Champion Window, Inc. (&ldquo;Champion&rdquo;), a portfolio company of the
Fund, to Atrium Companies Inc. (&ldquo;Atrium&rdquo;) pursuant to a Stock Purchase Agreement (&ldquo;SPA&rdquo;) dated December
22, 2005. The SPA contained certain limited rights of indemnification for Atrium in connection with its purchase of such ownership
interest.</P>

<P STYLE="font: 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">More than five years after the closing
of the sale of our Champion interest, Atrium filed suit in the District Court of Harris County, Texas against two former officers
of Atrium&rsquo;s subsidiary, Champion, alleging, amongst other matters, that the former officers breached their fiduciary duties
to Champion by hiring undocumented workers. This action was commenced primarily as a result of an investigation by the U.S. Immigration
and Customs Enforcement agency (&ldquo;ICE&rdquo;) into Atrium&rsquo;s hiring practices. On March 12, 2012, to protect its interests,
we filed a Petition in Intervention in the State Court Action seeking a declaration from the Court that Equus did not owe any obligation
to indemnify Atrium or Champion for any penalties, costs or fees associated with the investigation by ICE.</P>

<P STYLE="font: 10pt/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">On March 16, 2012, Atrium and Champion
filed a claim with the American Arbitration Association in Dallas, Texas, against Equus and a number of the other sellers under
the SPA. In September 2013, all of Atrium and Champion&rsquo;s claims including claims against its former officers described above,
were also consolidated in the Arbitration Action.</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">In the Arbitration Action, Atrium and
Champion seek damages arising from Equus&rsquo; and the other sellers&rsquo; indemnity obligations set forth in the SPA. Atrium
claims it is entitled to indemnification under the SPA for costs it has incurred in responding to an ongoing investigation by ICE.
Atrium entered into a Non-Prosecution Agreement with ICE. It appears that one condition of the Non-Prosecution Agreement required
Atrium to pay ICE $2,000,000. Atrium and Champion asserted two counts of breach of contract against Equus, both arising out of
the alleged obligation to indemnify Atrium and Champion pursuant to certain provisions of the SPA. Atrium and Champion also asserted
claims for fraudulent inducement against two former officers and directors of Champion. Through the arbitration, Atrium and Champion
seek to recover an unspecified amount in the form of alleged &ldquo;losses, damages, assessments, penalties, interest, reasonable
attorneys&rsquo; and accountants&rsquo; fees, settlement costs, and other costs and expenses arising directly or indirectly out
of or incident to,&rdquo; the alleged breach of the indemnity provisions in the SPA. As a consequence of their fraudulent inducement
claim against the two former officers and directors, Atrium and Champion alternatively seek equitable rescission of the SPA and
exemplary damages from the two former officers and directors.</P>

<P STYLE="font: 10pt/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">Atrium and Champion have yet to specify
the amount of damages they seek from Equus or the other sellers pursuant to the alleged indemnity obligations under the SPA. Atrium
and Champion have disclosed the payment of $2 million to ICE to resolve the investigation and avoid prosecution for their hiring
practices.</P>

<P STYLE="font: 10pt/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">We filed an answer to Atrium and Champion&rsquo;s
claims on December 6, 2013. In our answer, we denied that we owed any indemnity obligations to Atrium or Champion and further denied
that the Fund is in any way liable to Atrium or Champion. To the extent Atrium and Champion are able to establish a right to an
indemnity, we will further contest the amount of the claimed indemnity, inasmuch as we believe (among other defenses) that the
indemnity obligation can only exist, if at all, with respect to damages arising as a direct and proximate result of employees who
were hired prior to the closing date of the 2006 sale of Champion and remained in continuous employment after the 2006 sale, and
not to any employee who may have been hired in the six years after the sale.</P>

<P STYLE="font: 10pt/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">While we believe the Atrium claim is
without merit and we intend to continue to vigorously dispute the claim, there is a reasonable possibility of an adverse ruling
which may require the Fund to indemnify Atrium. If Equus is required to indemnify Atrium and Champion, we estimate that such indemnity
obligation could vary from $2.0 million to $3.0 million. Pursuant to the</P>


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<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">SPA, the indemnification obligation of Equus and the other
sellers is several and not joint, and any such indemnity, however uncertain, would likely be reduced proportionately to our percentage
ownership in Champion at the time of sale, which was 31.5% of Champion&rsquo;s shares outstanding.</P>

<P STYLE="font: 10pt/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>Indemnification Settlement</B>&mdash;Effective
June 13, 2013, the Fund entered into a settlement agreement with Sam Douglass, a former director and executive officer of the Fund,
in respect of a claim for indemnification pursuant to the General Corporation Law of Delaware and an indemnification agreement
entered into by the Fund with Mr. Douglass on May 3, 2001. The settlement agreement provides for the reimbursement to Mr. Douglass
of actual expenses incurred, excluding any fines or penalties, in connection with an enforcement action initiated by the Securities
and Exchange Commission against Mr. Douglass in 2009. The settlement payment of $125,000 was made on June 24, 2013.</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"><B>Lawsuit Settlement</B>&mdash;On August
12, 2012, Paula Douglass filed a lawsuit against the Fund and members of the Board of Directors in the District Court of Harris
County, Texas. Ms. Douglass&rsquo; complaint alleged various causes of action, including minority shareholder oppression, dilution,
and breach of fiduciary duty, and sought unspecified damages and attorney&rsquo;s fees. Effective June 13, 2013, the Fund entered
into a settlement agreement with Ms. Douglass, Sam Douglass, as well as certain trusts controlled by them. Pursuant to the settlement
agreement and in view of the estimated costs of protracted litigation and the associated disruption to the operations of the Fund,
the Board of Directors approved a payment of $402,254, in complete settlement of the lawsuit, as being in the best interests of
the Fund and its shareholders. The settlement payment was made on July 30, 2013. Ms. Douglass filed a motion to dismiss the lawsuit
with prejudice on August 8, 2013.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Lawsuit
Settlement&mdash;</B>On June 9, 2011, RNR Production, Land and Cattle Company, Inc. (&ldquo;RNR&rdquo;) filed a lawsuit
against the Fund and members of the Board of directors in the district Court of Harris County, Texas, seeking
various monetary and equitable remedies, including a motion for a temporary restraining order against the Fund from holding
its annual meeting of shareholders. The Fund prevailed against the motion but agreed to a nuisance settlement with RNR in
exchange for a one-time payment of $200,000 which was paid on September 2, 2011,</P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: normal 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Lawsuit
Settlement&mdash;</B>On March 10, 2010, American General Life Insurance Company (&ldquo;American General&rdquo;) filed a
complaint against the Fund in the District Court of Harris County, Texas in connection with an office lease entered into
by our former administrator with American General. The complaint by American General sought to hold the Fund liable for
unpaid rent, improvements, and attorneys&rsquo; fees totaling approximately $450,000. We agreed to a settlement with American
General in exchange for a one-time payment of $120,000, which was paid on June 7, 2011.</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">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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_014"></A><B>Item 9. <I>Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure </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-indent: 24.5pt">None.</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"><A NAME="a_015"></A><B>Item 9A. <I>Controls and Procedures </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-indent: 24.5pt">Attached as exhibits to this Form 10-K
are certifications of our Chief Executive Officer and Chief Financial Officer (CFO), which are required in accordance with Rule
13a-14 of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;). This section includes information concerning
the controls and controls evaluation referred to in those certifications and should be read in conjunction with the certifications
for a more complete understanding of the topics presented.</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>Evaluation of Disclosure Controls and Procedures </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-indent: 24.5pt">We maintain disclosure controls and
procedures that are designed to ensure that information required to be disclosed in our reports filed pursuant to the Exchange
Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission&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 based on the definition of
&ldquo;disclosure controls and procedures&rdquo; as promulgated under the Exchange Act. In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply
its judgment in evaluating the cost-benefit relationship of possible controls and procedures.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"></P>

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<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">The Fund, including our Chief Executive
Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures
as of December 31, 2013. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures were effective.</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>Management Report on Internal Control Over Financial Reporting
</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-indent: 24.5pt">Our Management is responsible for establishing
and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of
our financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. Internal control over financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets
of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Fund are being
made only in accordance with authorizations of Management and directors of the Fund; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition of the Fund&rsquo;s assets that could have a material
effect on the financial statements.</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">We assessed our internal control over
financial reporting as of December 31, 2013, the end of our most recent fiscal year. We based our assessment on criteria established
in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our assessment
included evaluation of such elements as the design and operating effectiveness of key financial reporting controls, process documentation,
accounting policies, and our overall control environment. This assessment is supported by testing and monitoring performed both
by a third-party consultant and our accounting department.</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">Based on our assessment, we have concluded
that our internal control over financial reporting was effective as of the end of the fiscal year to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in
accordance with generally accepted accounting principles. The results of our assessment have been reviewed with the Audit Committee
of our Board of Directors.</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"><A NAME="a_016"></A><B>Item 9B. <I>Other Information </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-indent: 24.5pt">None.</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><A NAME="a_017"></A>PART III </B></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><A NAME="a_018"></A>Item 10. <I>Directors, Executive Officers and Corporate
Governance</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-indent: 24.5pt">Information about our Directors and
Executive Officers, our Audit Committee and the Nominating and Corporate Governance Committee, our code of ethics applicable to
the principal executive officer and principal financial officer, and Section 16(a) Beneficial Ownership Reporting Compliance is
incorporated by reference to our Definitive Proxy Statement for the 2014 Annual Meeting of Stockholders, to be filed pursuant to
Regulation 14A under the Securities Exchange Act of 1934, as amended, on or prior to April 30, 2014 (the &ldquo;2014 Proxy Statement&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-indent: 24.5pt">We have adopted a code of business conduct
and ethics applicable to our directors, officers (including our principal executive officer, principal financial officer and controller)
and employees, known as the Code of Business Conduct and Ethics. A copy of the Code of Business Conduct and Ethics is available
to any person, without charge, upon request addressed to Equus Total Return, Inc., Attention: Corporate Secretary, Eight Greenway
Plaza, Suite 930, Houston, TX 77046. In the event that we amend or waive any of the provisions of the Code of Business Conduct
and Ethics applicable to our principal executive officer, principal financial officer, or controller, we intend to disclose the
same on its website at www.equuscap.com.</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"><A NAME="a_019"></A><B>Item 11. <I>Executive Compensation </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-indent: 24.5pt">Information regarding Executive Compensation
is incorporated by reference to our 2014 Proxy Statement.</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"><A NAME="a_020"></A><B>Item 12. <I>Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder Matters</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-indent: 24.5pt">Information regarding Security Ownership
of Certain Beneficial Owners and Management and Securities Authorized for Issuance under Equity Compensation Plans is incorporated
by reference to our 2014 Proxy Statement.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B></B></P>

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    <!-- Field: /Page -->

<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"><A NAME="a_021"></A><B>Item 13.<I> Certain Relationships and Related Transactions
and Director Independence</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-indent: 24.5pt">Information regarding Certain Relationships
and Related Transactions is incorporated by reference to our 2014 Proxy Statement.</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><A NAME="a_022"></A>Item 14.<I> Principal Accountant Fees and Services </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-indent: 24.5pt">Information regarding Principal Accountant
Fees and Services is incorporated by reference to our 2014 Proxy Statement.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0"><B></B></P>




<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><A NAME="a_023"></A><B>PART IV </B></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><A NAME="a_024"></A>Item 15.<I> Exhibits and Financial Statement Schedules
</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><B>(a)(1) Financial Statements </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="padding-left: 0.1in; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt Times New Roman, Times, Serif"><b>Page</b></font></td></tr>
<tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_028">Report of Independent Registered Public Accounting Firm&mdash;UHY</A></font></td>
    <TD STYLE="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center">34</td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_029">Balance Sheets as of December 31, 2013 and 2012</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">35</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><U STYLE="text-decoration: none"><A HREF="#a_030">Statements of Operations for the years ended December 31, 2013, 2012 and 2011</A></u></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">36</font></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_031">Statements of Changes in Net Assets for the years ended December 31, 2013, 2012 and 2011</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">37</font></td></tr>
<tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_032">Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">38</font></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_033">Selected Per Share Data and Ratios for the five years ended December 31, 2013</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">39</font></td></tr>
<tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_034">Schedule of Investments as of December 31, 2013</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">40</font></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_035">Schedule of Investments as of December 31, 2012</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">42</font></td></tr>
<tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_036">Notes to Financial Statements</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">44</font></td></tr>
<tr style="background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: 0.5in"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>(a)(2) The following financial statement schedules are filed herewith:</b></font></td>
    <td style="vertical-align: bottom; padding-left: 0.1in">&nbsp;</td></tr>
<tr style="background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_026">Report of Independent Registered Public Accounting Firm&mdash;UHY</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">63</font></td></tr>
<tr style="background-color: white">
    <td style="vertical-align: top; padding-left: 12pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-indent: -12pt"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="#a_027">Schedule 12-14 Investments in and Advances to Affiliates</A></font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">64</font></td></tr>
</table>
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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_026"></A><B>Report of Independent Registered Public
Accounting Firm </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">To the Board of Directors and Stockholders</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">of Equus Total Return, Inc.:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">We
have audited the balance sheets of Equus Total Return, Inc. (a Delaware corporation), including the schedules of investments, as
of December 31, 2013 and 2012 and the related statements of operations, changes in net assets and cash flows for each of the three
years in the period ended December 31, 2013 and the selected per share data and ratios for each of the five years in the period
ended December 31, 2013, and have issued our report thereon dated March 31, 2014 (included elsewhere in this Form 10-K). Our audits
also included the Schedule 12-14 listed in Item 15(a)(2) of this Form 10-K. The Schedule 12-14 is the responsibility of the management
of Equus Total Return, Inc. Our responsibility is to express an opinion based on our audits.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">In
our opinion, the Schedule 12-14 referred to above, when considered in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information set forth therein.</FONT></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">/s/ UHY LLP</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Houston, Texas</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">March 31, 2014</P>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>

<P STYLE="font: 10pt/115% 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>


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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>SCHEDULE 12-14</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="a_027"></A>SCHEDULE OF INVESTMENTS IN AND ADVANCES
TO AFFILIATES</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></B></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 7pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD STYLE="font-size: 11pt; font-weight: bold; font-style: italic; width: 23%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">(in
    thousands)</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 17%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 13%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 11%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 9%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 8%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Year
                                         Ended</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">December
                                         31, 2013</FONT></P></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Portfolio
    Company</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Investment
    <FONT STYLE="font-style: normal; font-variant: normal"><B><SUP>(a)</SUP></B></FONT></FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Amount
                                         of Interest</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">or
                                         Dividend</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Credited
                                         to Income</FONT></P></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Fair Value</FONT></P>
                                                                                        <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"></FONT> As
                                                                                        of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">December
31, 2012</FONT></P></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 0.5pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Gross</FONT></P>
                                                      <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Additions<FONT STYLE="font-style: normal; font-variant: normal"><B><SUP>(b)</SUP></B></FONT></FONT></P></td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Gross Reductions<FONT STYLE="font-style: normal; font-variant: normal"><B><SUP>(c)</SUP></B></FONT></FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">Fair Value</FONT></P>
                                                                                        <P STYLE="margin-top: 0; margin-bottom: 0">As
                                                                                        of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 7pt Times New Roman, Times, Serif">December
31, 2013</FONT></P></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; text-align: left; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Control
    Investments:&nbsp;&nbsp;Majority-owned</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">Equus Energy, LLC</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt"><FONT STYLE="font-size: 7pt">Member interest (100%)</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,855</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: bottom; text-align: right">1,145<FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: White">
    <td colspan="2" style="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">Equus Media Development Company,
    LLC</FONT></td>
    <TD STYLE="font-size: 7.5pt"><FONT STYLE="font-size: 7pt">Member interest (100%)</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;146</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;216</FONT></td></tr>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">Spectrum Management, LLC</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt"><FONT STYLE="font-size: 7pt">285,000 units of Class&nbsp;A member interest</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt"><FONT STYLE="font-size: 7pt">16% subordinated promissory note <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal; font-variant: normal"><SUP>(d)</SUP></FONT></FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(166)</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;418</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>2,471</td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889</FONT></td></tr>
<tr>
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Total
    Control Investments:&nbsp;&nbsp;Majority-owned</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(166)</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,419</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; vertical-align: bottom">$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,685</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">$</TD>
    <TD STYLE="font-size: 7.5pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,105</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 7pt">Total
    Control Investments</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(166)</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,419</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,685</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,105</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; text-align: left; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Affiliate
    Investments</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 7pt">PalletOne, Inc.</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt"><FONT STYLE="font-size: 7pt">350,000&nbsp;shares&nbsp;of&nbsp;common stock</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7pt">&nbsp;$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250</FONT></td></tr>
<tr>
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left"><FONT STYLE="font-size: 7pt">Total
    Affiliate Investments</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;762</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">Total
    Investments In and Advances to Affiliates</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(166)</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,338</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,685</FONT></td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD>
    <TD STYLE="font-size: 7.5pt; border-bottom: Black 0.5pt solid; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,355</FONT></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B></B></P>

<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0">This schedule should be read in conjunction with our Financial
Statements, including our<I> Schedule of Investments</I> and Notes 3 and 4 to the Financial Statements.</P>

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<tr style="vertical-align: top">
    <td style="width: 23px; padding-bottom: 6pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: right"><font style="font: 7.5pt Times New Roman, Times, Serif">(a)</font></td>
    <td style="width: 7px">&nbsp;</td>
    <td style="padding-bottom: 6pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 7.5pt Times New Roman, Times, Serif">Common stock, warrants, options and equity interests are generally non-income producing and restricted. In some cases, preferred stock may also be non-income producing. The principal amount for debt and the number of shares of common stock and preferred stock is shown in the Schedule of Portfolio Securities as of December 31, 2013.</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; text-align: right"><font style="font: 7.5pt Times New Roman, Times, Serif">(b)</font></td>
    <td>&nbsp;</td>
    <td style="padding-bottom: 6pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 7.5pt Times New Roman, Times, Serif">Gross additions include increases in investments resulting from new portfolio company investments, paid-in-kind interest or dividends, the amortization of discounts and fees, and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation.</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; text-align: right"><font style="font: 7.5pt Times New Roman, Times, Serif">(c)</font></td>
    <td>&nbsp;</td>
    <td style="padding-bottom: 6pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 7.5pt Times New Roman, Times, Serif">Gross reductions include decreases in investments resulting from principal collections related to investment repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation.</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; text-align: right"><font style="font: 7.5pt Times New Roman, Times, Serif">(d)</font></td>
    <td>&nbsp;</td>
    <td style="padding-bottom: 6pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 7.5pt Times New Roman, Times, Serif">Accrued income is impaired.</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; text-align: right"><font style="font: 7.5pt Times New Roman, Times, Serif">(e)</font></td>
    <td>&nbsp;</td>
    <td style="padding-bottom: 6pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 7.5pt Times New Roman, Times, Serif">Represents the total amount of interest or dividends credited to income for the portion of the year an investment was a control investment (more than 25% owned) or an affiliate investment (5% to 25% owned), respectively. All dividend income is non-cash unless otherwise noted.</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; padding-bottom: 6pt; text-align: right"><font style="font: 7.5pt Times New Roman, Times, Serif">**</font></td>
    <td>&nbsp;</td>
    <td style="padding-bottom: 6pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 7.5pt Times New Roman, Times, Serif">Information related to the amount of equity in the net profit and loss for the period for the investments listed has not been included in this schedule. This information is not considered to be meaningful due to the complex capital structures of the portfolio companies, with different classes of equity securities outstanding with different preferences in liquidation. These investments are neither consolidated nor accounted for under the equity method of accounting.</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>


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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(a)(3) Exhibits </B></P>

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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">3.</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Articles of Incorporation and by-laws.</font></td></tr>
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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(a)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">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.]</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(b)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">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.]</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(c)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Amended and Restated Bylaws of the Fund. [Incorporated by reference to Exhibit 3(b) to Registrant&rsquo;s Current Report on Form 8-K filed on December 16, 2010.]</font></td></tr>
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<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 9pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">10.</font></td>
    <td style="padding-top: 9pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Material Contracts.</font></td></tr>
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<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(c)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Safekeeping Agreement between the Fund and Amegy Bank dated August 16, 2008. [Incorporated by reference to Exhibit 10(g) to Registrant&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2008.]</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(d)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Form of Indemnification Agreement between the Fund and certain of its directors and 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]</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(e)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">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.]</font></td></tr>
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<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(f)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">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.]</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 9pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">31.</font></td>
    <td style="padding-top: 9pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Rule 13a-14(a)/15d-14(a) Certifications</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(1)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="ex31_1ceocertification.htm">Certification by Chief Executive Officer</A></font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(2)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="ex31_2cfocertification.htm">Certification by Chief Financial Officer</A></font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <TD STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-top: 9pt; width: 30px"><font style="font: 10pt/115% Times New Roman, Times, Serif">32.</font></td>
    <TD STYLE="padding-top: 9pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Section 1350 Certification</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(1)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="ex32_1ceocertification.htm">Certification by Chief Executive Officer</A></font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="width: 100%">
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    <td style="width: 30px">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">(2)</font></td>
    <td style="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="ex32_2cfocertification.htm">Certification by Chief Financial Officer</A></font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>


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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; 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>

<P STYLE="font: 10pt/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="padding-left: 0.1in">&nbsp;</td>
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td colspan="2" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">EQUUS TOTAL RETURN, INC.</font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% Times New Roman, Times, Serif">Date: March 31, 2014</font></td>
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ JOHN A. HARDY</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="padding-left: 0.1in">&nbsp;</td>
    <td style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>John A. Hardy</b></font></td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 0.1in">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 0.1in">&nbsp;</td>
    <td style="vertical-align: top; padding-left: 0.1in">&nbsp;</td>
    <td style="vertical-align: bottom; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Chief Executive Officer </b></font><br>
<font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>(Principal Executive Officer)</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-indent: 24.5pt">Pursuant to the requirements of the
Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.</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="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td nowrap style="width: 29%; border-bottom: Black 1pt solid; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt Times New Roman, Times, Serif"><b>Signature</b></font></td>
    <td style="width: 57%; border-bottom: Black 1pt solid; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 0.1in; text-align: center"><font style="font: 7.5pt Times New Roman, Times, Serif"><b>Title</b></font></td>
    <td style="border-bottom: Black 1pt solid; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 0.1in; text-align: center"><font style="font: 7.5pt Times New Roman, Times, Serif"><b>Date</b></font></td></tr>
<tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ FRASER ATKINSON</font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Fraser Atkinson</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ ALESSANDRO BENEDETTI</font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director, Executive Chairman</font></td>
    <td nowrap style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Alessandro Benedetti</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ RICHARD F. BERGNER</font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="vertical-align: bottom; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Richard F. Bergner</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ KENNETH I. DENOS</font></td>
    <td style="vertical-align: top; font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director, Secretary and Chief Compliance Officer</font></td>
    <td nowrap style="vertical-align: bottom; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Kenneth I. Denos</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ GREGORY J. FLANAGAN</font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="vertical-align: bottom; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Gregory J. Flanagan</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ HENRY W. HANKINSON</font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="vertical-align: bottom; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Henry W. Hankinson</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ ROBERT L. KNAUSS</font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="vertical-align: bottom; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Robert L. Knauss</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ BERTRAND DES PALLIERES</font></td>
    <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="vertical-align: bottom; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Bertrand des Pallieres</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ JOHN A. HARDY</font></td>
    <td style="vertical-align: top; font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director, Chief Executive Officer (Principal Executive Officer)</font></td>
    <td nowrap style="vertical-align: top; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr>
    <td style="vertical-align: bottom; font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>John A. Hardy</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td>&nbsp;</td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom; border-bottom: Black 1pt solid; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">/</font><font style="font: 7.5pt/115% Times New Roman, Times, Serif">S</font><font style="font: 10pt/115% Times New Roman, Times, Serif">/ L&rsquo;SHERYL D. HUDSON</font></td>
    <td style="vertical-align: top; font: 10pt/115% Calibri, Helvetica, Sans-Serif; padding-left: 9pt"><font style="font: 10pt/115% Times New Roman, Times, Serif">Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)</font></td>
    <td nowrap style="vertical-align: top; font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 31, 2014</font></td></tr>
<tr style="vertical-align: top">
    <td style="font: 7.5pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>L&rsquo;Sheryl D. Hudson</b></font></td>
    <td style="padding-left: 9pt">&nbsp;</td>
    <td nowrap>&nbsp;</td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>ex31_1ceocertification.htm
<DESCRIPTION>CEO CERTIFICATION
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus123113.htm">EXHIBIT 31.1</A> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Form of Annual Certification Required
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>by Rules 13a-14 and 15d-14 under the Securities
Exchange Act of 1934 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">I, John A. Hardy, certify that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">1.</TD><TD>I have reviewed this Annual Report on Form 10-K of Equus Total Return, Inc.;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">2.</TD><TD>Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">3.</TD><TD>Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present
in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">4.</TD><TD>The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>Designed such disclosure controls and procedures. or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by
others within those entities, particularly during the period in which this annual report is being prepared;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>[Reserved]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">c.</TD><TD>Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such
evaluation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">d.</TD><TD>Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during
the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial
reporting, and;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">5.</TD><TD>The registrant&rsquo;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal
control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of registrant&rsquo;s board of directors
(or persons performing the equivalent function):</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting,
which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial
information; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s
internal controls.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Date: March&nbsp;31, 2014</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>John A. Hardy</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Executive Officer</B></P></TD></TR>
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<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>ex31_2cfocertification.htm
<DESCRIPTION>CFO CERTIFICATION
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus123113.htm">EXHIBIT 31.2</A> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>Form of Annual Certification Required
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>by Rules 13a-14 and 15d-14 under the Securities
Exchange Act of 1934 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">I, L&rsquo;Sheryl D. Hudson, certify that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">1.</TD><TD>I have reviewed this Annual Report on Form 10-K of Equus Total Return, Inc.;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">2.</TD><TD>Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">3.</TD><TD>Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present
in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">4.</TD><TD>The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>Designed such disclosure controls and procedures. or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by
others within those entities, particularly during the period in which this annual report is being prepared;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>[Reserved]</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">c.</TD><TD>Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such
evaluation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">d.</TD><TD>Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during
the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial
reporting, and;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">5.</TD><TD>The registrant&rsquo;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal
control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of registrant&rsquo;s board of directors
(or persons performing the equivalent function):</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">a.</TD><TD>All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting,
which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial
information; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 55.05pt"></TD><TD STYLE="width: 24.5pt">b.</TD><TD>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s
internal controls.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Date: March&nbsp;31, 2014</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>L&rsquo;Sheryl D. Hudson</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Financial Officer</B></P></TD></TR>
</TABLE>

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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>ex32_1ceocertification.htm
<DESCRIPTION>CFO CERTIFICATION
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus123113.htm">EXHIBIT 32.1</A> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>CERTIFICATION PURSUANT TO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(18 U.S.C. SECTION 1350) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In connection with the accompanying Annual
Report of Equus Total Return, Inc. (the &ldquo;Company&rdquo;) on Form 10-K for the period ended December&nbsp;31, 2013 (the &ldquo;Report&rdquo;),
I, John A. Hardy, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant
to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(1)</TD><TD>To my knowledge, the Report fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m or 78o(d)); and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(2)</TD><TD>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Dated: March&nbsp;31, 2014</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<TR>
    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>John A. Hardy </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Executive Officer</B></P></TD></TR>
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<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>ex32_2cfocertification.htm
<DESCRIPTION>CFO CERTIFICATION
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus123113.htm">EXHIBIT 32.2</A></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: center"><B>CERTIFICATION PURSUANT TO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(18 U.S.C. SECTION 1350) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 24.5pt">In connection with the accompanying Annual
Report of EQUUS TOTAL RETURN, INC. (the &ldquo;Company&rdquo;) on Form 10-K for the period ended December&nbsp;31, 2013 (the &ldquo;Report&rdquo;),
I, L&rsquo;Sheryl D. Hudson, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C Section&nbsp;1350, as
adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(1)</TD><TD>To my knowledge, the Report fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m or 78o(d)); and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 4.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(2)</TD><TD>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">Dated: March&nbsp;31, 2014</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<TR>
    <TD STYLE="width: 100%; font: 0.5pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
        <P STYLE="font: 4pt/1pt Times New Roman, Times, Serif; margin: 1pt 0 0; text-align: center; text-indent: 0.5in; border-top: Black 1pt solid">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>L&rsquo;Sheryl D. Hudson</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Financial Officer</B></P></TD></TR>
</TABLE>


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